Advancing self-care interventions for sexual and reproductive health and rights in the WHO African Region: regional roadmap
<part xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:default="http://www.w3.org/1999/xhtml" eId="part-I"><num>Part I</num><heading>Excise Duties</heading><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-I-crossheading-alcoholic-liquor-duties"><heading>Alcoholic liquor duties</heading><section eId="section-1"><num>1</num><heading>Spirits: rate of duty</heading><subsection eId="section-1-1"><num>(1)</num><content><p>In section 5 of the <noteRef href="#m00001" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Alcoholic Liquor Duties Act 1979 (spirits), for “£20.60” there shall be substituted “£19.78”.</p></content></subsection><subsection eId="section-1-2"><num>(2)</num><content><p>This section shall be deemed to have come into force at 6 o'clock in the evening of 28th November 1995.</p></content></subsection></section><section eId="section-2"><num>2</num><heading>Wine and made-wine: rates</heading><subsection eId="section-2-1"><num>(1)</num><intro><p>In the Table of rates of duty in Schedule 1 to the Alcoholic Liquor Duties Act 1979 (wine and made-wine)—</p></intro><level class="para1" eId="section-2-1-a"><num>(a)</num><content><p>in Part I of the Table for “200.64”, where it appears as the rate for wine or made-wine of a strength exceeding 15 per cent. but not exceeding 22 per cent., there shall be substituted “187.24”; and</p></content></level><level class="para1" eId="section-2-1-b"><num>(b)</num><content><p>in Part II of that Table (wine or made-wine of a strength exceeding 22 per cent.), for “20.60” there shall be substituted “19.78”.</p></content></level></subsection><subsection eId="section-2-2"><num>(2)</num><content><p>Paragraph (a) of subsection (1) above shall be deemed to have come into force on 1st January 1996 and paragraph (b) shall be deemed to have come into force at 6 o'clock in the evening of 28th November 1995.</p></content></subsection></section><section eId="section-3"><num>3</num><heading>Cider: rate of duty</heading><subsection eId="section-3-1"><num>(1)</num><content><p>In subsection (1) of section 62 of the <noteRef href="#m00002" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Alcoholic Liquor Duties Act 1979 (cider), for “rate of £23.78 per hectolitre” there shall be substituted “rates shown in subsection (1A) below.”</p></content></subsection><subsection eId="section-3-2"><num>(2)</num><content><p><mod>After that subsection there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1A)</num><intro><p>The rates at which the duty shall be charged are—</p></intro><level class="para1"><num>(a)</num><content><p>£35.67 per hectolitre in the case of cider of a strength exceeding 7.5 per cent.; and</p></content></level><level class="para1"><num>(b)</num><content><p>£23.78 per hectolitre in any other case.</p></content></level></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-3-3"><num>(3)</num><content><p>This section shall come into force on 1st October 1996.</p></content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-I-crossheading-hydrocarbon-oil-duties"><heading>Hydrocarbon oil duties</heading><section eId="section-4"><num>4</num><heading>Rates of duty and rebate</heading><subsection eId="section-4-1"><num>(1)</num><content><p>In section 6(1) of the <noteRef href="#m00003" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Hydrocarbon Oil Duties Act 1979, for “£0.3614” (duty on light oil) and “£0.3132” (duty on heavy oil) there shall be substituted “£0.3912” and “£0.3430”, respectively.</p></content></subsection><subsection eId="section-4-2"><num>(2)</num><content><p>In section 8(3) of that Act (duty on road fuel gas), for “£0.3314” there shall be substituted “£0.2817”.</p></content></subsection><subsection eId="section-4-3"><num>(3)</num><content><p>In section 11(1) of that Act (rebate on heavy oil), for “£0.0166” (fuel oil) and “£0.0214” (gas oil) there shall be substituted “£0.0181” and “£0.0233”, respectively.</p></content></subsection><subsection eId="section-4-4"><num>(4)</num><content><p><mod>In subsection (1) of section 13A of that Act (rebate on unleaded petrol), for “the rate of £0.0482 a litre” there shall be substituted “the rate specified in subsection (1A) below”; and after that subsection there shall be inserted the following subsections—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1A)</num><intro><p>The rate of rebate shall be—</p></intro><level class="para1"><num>(a)</num><content><p>£0.0150 a litre in the case of higher octane unleaded petrol; and</p></content></level><level class="para1"><num>(b)</num><content><p>£0.0482 a litre in any other case.</p></content></level></subsection><subsection><num>(1B)</num><intro><p>For the purposes of this section unleaded petrol is “higher octane” if—</p></intro><level class="para1"><num>(a)</num><content><p>its research octane number is not less than 96 and its motor octane number is not less than 86;</p></content></level><level class="para1"><num>(b)</num><content><p>it is delivered for home use as petrol which satisfies the condition set out in paragraph (a) above;</p></content></level><level class="para1"><num>(c)</num><content><p>it is delivered for home use as petrol which is suitable to be used as fuel for engines for which leaded petrol is suitable by virtue of being leaded; or</p></content></level><level class="para1"><num>(d)</num><intro><p>it is delivered for home use under such a description, or in such a manner, as tends, in the circumstances, to suggest that it is—</p></intro><level class="para2"><num>(i)</num><content><p>petrol satisfying the condition set out in paragraph (a) above; or</p></content></level><level class="para2"><num>(ii)</num><content><p>petrol suitable to be used as fuel for engines for which leaded petrol is suitable by virtue of being leaded.</p></content></level></level></subsection><subsection><num>(1C)</num><content><p>The method of testing unleaded petrol for ascertaining, for the purposes of this section, its research octane number or motor octane number shall be such as the Commissioners may direct.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-4-5"><num>(5)</num><content><p>In subsection (2) of that section (meaning of “unleaded”), for the words from “or, if” onwards there shall be substituted “; and petrol is “leaded” for the purposes of this section if it is not unleaded.”</p></content></subsection><subsection eId="section-4-6"><num>(6)</num><content><p>In section 14(1) of that Act (rebate on light oil for use as furnace fuel), for “£0.0166” there shall be substituted “£0.0181”.</p></content></subsection><subsection eId="section-4-7"><num>(7)</num><content><p>Subsections (1) to (3) and (6) above shall be deemed to have come into force at 6 o'clock in the evening of 28th November 1995; and subsection (4) above shall come into force on 15th May 1996.</p></content></subsection></section><section eId="section-5"><num>5</num><heading>Misuse of rebated kerosene</heading><subsection eId="section-5-1"><num>(1)</num><content><p>The <noteRef href="#m00004" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Hydrocarbon Oil Duties Act 1979 shall be amended as mentioned in subsections (2) to (5) below.</p></content></subsection><subsection eId="section-5-2"><num>(2)</num><content><p>In section 11(1) (rebate on heavy oil), for “and 13” there shall be substituted “13, 13AA and 13AB”.</p></content></subsection><subsection eId="section-5-3"><num>(3)</num><content><p>In section 12(2) (restriction on use of rebated heavy oil for road vehicles), after “allowed” there shall be inserted “(whether under section 11(1) above or 13AA(1) below)”.</p></content></subsection><subsection eId="section-5-4"><num>(4)</num><content><p><mod>After section 13 there shall be inserted the following sections—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>13AA</num><heading>Restrictions on use of rebated kerosene</heading><subsection><num>(1)</num><intro><p>If, on the delivery of kerosene for home use, it is intended to use the kerosene as fuel for—</p></intro><level class="para1"><num>(a)</num><content><p>an engine provided for propelling an excepted vehicle, or</p></content></level><level class="para1"><num>(b)</num><content><p>an engine which is used neither for propelling a vehicle nor for heating,</p></content></level><wrapUp><p>a declaration shall be made to that effect and thereupon rebate shall be allowed at the rate for rebated gas oil which is then in force, instead of at the rate then in force under section 11(1)(c) above.</p></wrapUp></subsection><subsection><num>(2)</num><intro><p>Subject to subsection (3) below, no kerosene on whose delivery for home use a rebate at the rate given by section 11(1)(c) above has been allowed shall—</p></intro><level class="para1"><num>(a)</num><content><p>be used as fuel for an engine provided for propelling an excepted vehicle;</p></content></level><level class="para1"><num>(b)</num><content><p>be used as fuel for an engine which is used neither for propelling a vehicle nor for heating; or</p></content></level><level class="para1"><num>(c)</num><content><p>be taken into the fuel supply of an engine falling within paragraph (a) or (b) above.</p></content></level></subsection><subsection><num>(3)</num><content><p>Subsection (2) above does not apply to any quantity of kerosene in respect of which there has been paid to the Commissioners an amount equal to duty on the same quantity of gas oil at the rate for rebated gas oil which is in force at the time of the payment.</p></content></subsection><subsection><num>(4)</num><content><p>A payment under subsection (3) above shall be made in accordance with regulations made under section 24(1) below for the purposes of this section.</p></content></subsection><subsection><num>(5)</num><intro><p>For the purposes of this section and section 13AB below—</p></intro><hcontainer name="definition"><content><p>“excepted vehicle” means a vehicle which is an excepted vehicle under any provision of Schedule 1 to this Act; and</p></content></hcontainer><hcontainer name="definition"><content><p>“kerosene” means heavy oil of which more than 50 per cent. by volume distils at a temperature of 240°C or less.</p></content></hcontainer></subsection><subsection><num>(6)</num><content><p>For the purposes of this section and section 13AB below the rate for rebated gas oil which is in force at any time is the rate of duty which at that time is in force under section 6(1) above in the case of heavy oil as reduced by the rate of rebate allowable at that time under section 11(1)(b) above.</p></content></subsection></section><section><num>13AB</num><heading>Penalties for misuse of kerosene</heading><subsection><num>(1)</num><intro><p>If a person uses kerosene in contravention of section 13AA(2) above—</p></intro><level class="para1"><num>(a)</num><content><p>the Commissioners may recover from him, in respect of the quantity of kerosene used, an amount equal to duty on the same quantity of gas oil at the rate for rebated gas oil which is in force at the time of the contravention;</p></content></level><level class="para1"><num>(b)</num><content><p>his use of the kerosene shall attract a penalty under section 9 of the <noteRef href="#m00005" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1994 (civil penalties); and</p></content></level><level class="para1"><num>(c)</num><content><p>if he uses the kerosene with the relevant intent, he shall be guilty of an offence.</p></content></level></subsection><subsection><num>(2)</num><intro><p>If a person is liable for kerosene being taken into a fuel supply of an engine in contravention of section 13AA(2) above—</p></intro><level class="para1"><num>(a)</num><content><p>the Commissioners may recover from him, in respect of the quantity of kerosene taken into the fuel supply, an amount equal to duty on the same quantity of gas oil at the rate for rebated gas oil which is in force at the time of the contravention;</p></content></level><level class="para1"><num>(b)</num><content><p>his becoming so liable shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties); and</p></content></level><level class="para1"><num>(c)</num><content><p>if he has the relevant intent in relation to the kerosene being taken into the fuel supply, he shall be guilty of an offence.</p></content></level></subsection><subsection><num>(3)</num><intro><p>For the purposes of subsection (2) above, a person is liable for kerosene being taken into a fuel supply of an engine if at the time—</p></intro><level class="para1"><num>(a)</num><content><p>he has the charge of the engine; or</p></content></level><level class="para1"><num>(b)</num><content><p>subject to subsection (4) below, he is the owner of the engine.</p></content></level></subsection><subsection><num>(4)</num><content><p>If a person other than the owner is for the time being entitled to possession of the engine, that other person and not the owner is liable.</p></content></subsection><subsection><num>(5)</num><intro><p>If—</p></intro><level class="para1"><num>(a)</num><content><p>a person supplies kerosene having reason to believe that it will be put to a particular use, and</p></content></level><level class="para1"><num>(b)</num><content><p>that use is one which, if a payment is not made under subsection (3) of section 13AA above, will contravene subsection (2) of that section,</p></content></level><wrapUp><p>his supplying the kerosene shall attract a penalty under section 9 of the <noteRef href="#m00006" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1994 (civil penalties) and, if he makes the supply with the relevant intent, he shall be guilty of an offence.</p></wrapUp></subsection><subsection><num>(6)</num><content><p>In this section “the relevant intent” means the intent that the restrictions imposed by section 13AA(2) above shall be contravened.</p></content></subsection><subsection><num>(7)</num><intro><p>A person guilty of an offence under this section shall be liable—</p></intro><level class="para1"><num>(a)</num><content><p>on summary conviction, to a penalty of the statutory maximum, or to imprisonment for a term not exceeding 6 months, or to both;</p></content></level><level class="para1"><num>(b)</num><content><p>on conviction on indictment, to a penalty of any amount, or to a term of imprisonment not exceeding 7 years, or to both.</p></content></level></subsection><subsection><num>(8)</num><content><p>Any kerosene falling within subsection (9) or (10) below is liable to forfeiture.</p></content></subsection><subsection><num>(9)</num><content><p>Kerosene falls within this subsection if it is taken into a fuel supply in contravention of section 13AA(2) above.</p></content></subsection><subsection><num>(10)</num><intro><p>Kerosene falls within this subsection if—</p></intro><level class="para1"><num>(a)</num><content><p>it has been supplied in circumstances in which there is reason to believe that it will be put to a particular use; and</p></content></level><level class="para1"><num>(b)</num><content><p>that use is one which, if payment is not made under subsection (3) of section 13AA above, will contravene subsection (2) of that section.</p></content></level></subsection></section></quotedStructure></mod></p></content></subsection><subsection eId="section-5-5"><num>(5)</num><intro><p>In section 24 (control of use of duty-free and rebated oil)—</p></intro><level class="para1" eId="section-5-5-a"><num>(a)</num><content><p>in subsection (1), after “section 13A” there shall be inserted “section 13AA”; and</p></content></level><level class="para1" eId="section-5-5-b"><num>(b)</num><content><p>in subsection (2), after “section 12” there shall be inserted “or section 13AA”.</p></content></level></subsection><subsection eId="section-5-6"><num>(6)</num><intro><p>This section shall have effect in relation to cases where kerosene is—</p></intro><level class="para1" eId="section-5-6-a"><num>(a)</num><content><p>used as fuel, or</p></content></level><level class="para1" eId="section-5-6-b"><num>(b)</num><content><p>taken into a fuel supply,</p></content></level><wrapUp><p>on or after such day as the Commissioners of Customs and Excise may by order made by statutory instrument appoint.</p></wrapUp></subsection></section><section eId="section-6"><num>6</num><heading>Mixing of rebated oil</heading><subsection eId="section-6-1"><num>(1)</num><content><p>The <noteRef href="#m00007" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Hydrocarbon Oil Duties Act 1979 shall be amended as mentioned in subsections (2) to (4) below.</p></content></subsection><subsection eId="section-6-2"><num>(2)</num><content><p><mod>In section 20 (contaminated or accidentally mixed oil), after subsection (3) there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(4)</num><content><p>The power to make a payment to a person under subsection (2) above in relation to oils that have become accidentally mixed does not apply in relation to a mixture in respect of which he is liable to pay duty under section 20AAA below.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-6-3"><num>(3)</num><content><p><mod>After section 20A there shall be inserted the following sections—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>20AAA</num><heading>Mixing of rebated oil</heading><subsection><num>(1)</num><intro><p>Where—</p></intro><level class="para1"><num>(a)</num><content><p>a mixture which is leaded or unleaded petrol is produced in contravention of Part I of Schedule 2A to this Act, and</p></content></level><level class="para1"><num>(b)</num><content><p>the mixture is not produced as a result of approved mixing,</p></content></level><wrapUp><p>a duty of excise shall be charged on the mixture.</p></wrapUp></subsection><subsection><num>(2)</num><intro><p>Where—</p></intro><level class="para1"><num>(a)</num><content><p>a mixture of heavy oils is produced in contravention of Part II of Schedule 2A to this Act,</p></content></level><level class="para1"><num>(b)</num><content><p>the mixture is not produced as a result of approved mixing, and</p></content></level><level class="para1"><num>(c)</num><content><p>the mixture is supplied for use as fuel for a road vehicle or an excepted vehicle,</p></content></level><wrapUp><p>a duty of excise shall be charged on the mixture.</p></wrapUp></subsection><subsection><num>(3)</num><content><p>The person liable to pay the duty charged under subsection (1) above is the person producing the mixture.</p></content></subsection><subsection><num>(4)</num><content><p>The person liable to pay the duty charged under subsection (2) above is the person supplying the mixture.</p></content></subsection><subsection><num>(5)</num><intro><p>The Commissioners may exempt a person from liability to pay duty charged under this section in respect of the production or supply of a mixture if they are satisfied—</p></intro><level class="para1"><num>(a)</num><content><p>that the mixture has been produced or (as the case may be) supplied accidentally; and</p></content></level><level class="para1"><num>(b)</num><content><p>that, having regard to all the circumstances, the person should be exempted from liability to pay the duty.</p></content></level></subsection><subsection><num>(6)</num><content><p>Part III of Schedule 2A to this Act makes provision with respect to rates and amounts of duty charged under this section.</p></content></subsection><subsection><num>(7)</num><intro><p>In this section—</p></intro><hcontainer name="definition"><content><p>“approved mixing” has the meaning given by section 20A(5) above; and</p></content></hcontainer><hcontainer name="definition"><content><p>“excepted vehicle” means a vehicle which is an excepted vehicle under any provision of Schedule 1 to this Act.</p></content></hcontainer></subsection></section><section><num>20AAB</num><heading>Mixing of rebated oil: supplementary</heading><subsection><num>(1)</num><intro><p>A person who—</p></intro><level class="para1"><num>(a)</num><content><p>produces a mixture on which duty is charged under section 20AAA(1) above, or</p></content></level><level class="para1"><num>(b)</num><content><p>supplies a mixture on which duty is charged under section 20AAA(2) above,</p></content></level><wrapUp><p>must notify the Commissioners that he has done so within the period of seven days beginning with the date on which he produced or (as the case may be) supplied the mixture.</p></wrapUp></subsection><subsection><num>(2)</num><content><p>A person is not required to give a notification under subsection (1) above if, before he produced or (as the case may be) supplied the mixture, he notified the Commissioners that he proposed to do so.</p></content></subsection><subsection><num>(3)</num><content><p>Notification under subsection (1) or (2) above must be given in such form and in such manner, and must contain such particulars, as the Commissioners may direct.</p></content></subsection><subsection><num>(4)</num><intro><p>Subject to subsection (7) below, where it appears to the Commissioners—</p></intro><level class="para1"><num>(a)</num><content><p>that a person has produced or supplied a mixture on which duty is charged under section 20AAA above, and</p></content></level><level class="para1"><num>(b)</num><content><p>that he is the person liable to pay the duty,</p></content></level><wrapUp><p>they may assess the amount of duty due from him to the best of their judgement and notify that amount to him or his representative.</p></wrapUp></subsection><subsection><num>(5)</num><content><p>An assessment under subsection (4) above shall be treated as if it were an assessment under section 12(1) of the <noteRef href="#m00008" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1994.</p></content></subsection><subsection><num>(6)</num><intro><p>The Commissioners may give a direction that a person who is, or expects to be, liable to pay duty charged under section 20AAA above—</p></intro><level class="para1"><num>(a)</num><content><p>shall account for duty charged under that section by reference to such periods (“accounting periods”) as may be determined by or under the direction;</p></content></level><level class="para1"><num>(b)</num><content><p>shall make, in relation to accounting periods, returns in such form and at such times and containing such particulars as may be so determined;</p></content></level><level class="para1"><num>(c)</num><content><p>shall pay duty charged under that section at such times and in such manner as may be so determined.</p></content></level></subsection><subsection><num>(7)</num><content><p>The power to make an assessment under subsection (4) above does not apply in relation to a person who is for the time being subject to a direction under subsection (6) above.</p></content></subsection><subsection><num>(8)</num><intro><p>Where any person—</p></intro><level class="para1"><num>(a)</num><content><p>fails to give a notification which he is required to give under subsection (1) above, or</p></content></level><level class="para1"><num>(b)</num><content><p>fails to comply with a direction under subsection (6) above,</p></content></level><wrapUp><p>his failure shall attract a penalty under section 9 of the <noteRef href="#m00009" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1994 (civil penalties).</p></wrapUp></subsection></section></quotedStructure></mod></p></content></subsection><subsection eId="section-6-4"><num>(4)</num><content><p>After Schedule 2 there shall be inserted the Schedule set out in Schedule 1 to this Act.</p></content></subsection><subsection eId="section-6-5"><num>(5)</num><intro><p>This section and Schedule 1 to this Act shall have effect in relation to—</p></intro><level class="para1" eId="section-6-5-a"><num>(a)</num><content><p>the production on or after the appointed day of a mixture which is leaded or unleaded petrol; and</p></content></level><level class="para1" eId="section-6-5-b"><num>(b)</num><content><p>the supply on or after the appointed day of a mixture of heavy oils;</p></content></level><wrapUp><p>and “the appointed day” here means such day as the Commissioners of Customs and Excise may by order made by statutory instrument appoint.</p></wrapUp></subsection></section><section eId="section-7"><num>7</num><heading>Marked oil used as fuel for road vehicles</heading><subsection eId="section-7-1"><num>(1)</num><content><p><mod>After section 24 of the <noteRef href="#m00010" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Hydrocarbon Oil Duties Act 1979 (control of use of duty free and rebated oil) there shall be inserted the following section—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>24A</num><heading>Penalties for misuse of marked oil</heading><subsection><num>(1)</num><content><p>Marked oil shall not be used as fuel for a road vehicle.</p></content></subsection><subsection><num>(2)</num><content><p>For the purposes of this section marked oil is any hydrocarbon oil in which a marker is present which is for the time being designated by regulations made by the Commissioners under subsection (3) below.</p></content></subsection><subsection><num>(3)</num><content><p>The Commissioners may for the purposes of this section designate any marker which appears to them to be used for the purposes of the law of any place (whether within or outside the United Kingdom) for identifying hydrocarbon oil that is not to be used as fuel for road vehicles, or for road vehicles of a particular description.</p></content></subsection><subsection><num>(4)</num><content><p>For the purposes of this section marked oil shall be taken to be used as fuel for a road vehicle if, but only if, it is used as fuel for the engine provided for propelling the vehicle or for an engine which draws its fuel from the same supply as that engine.</p></content></subsection><subsection><num>(5)</num><content><p>Where a person uses any hydrocarbon oil in contravention of subsection (1) above, his use of the oil shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties).</p></content></subsection><subsection><num>(6)</num><intro><p>If a person who uses any marked oil in contravention of subsection (1) above does so in the knowledge that the oil he is using is marked oil, he shall be guilty of an offence and liable—</p></intro><level class="para1"><num>(a)</num><content><p>on summary conviction, to a penalty of the statutory maximum, or to imprisonment for a term not exceeding 6 months, or to both;</p></content></level><level class="para1"><num>(b)</num><content><p>on conviction on indictment, to a penalty of any amount, or to a term of imprisonment not exceeding 7 years, or to both.</p></content></level></subsection><subsection><num>(7)</num><content><p>Any marked oil which is in a road vehicle as part of the fuel supply for the engine which propels the vehicle shall be liable to forfeiture.</p></content></subsection><subsection><num>(8)</num><intro><p>Where in any proceedings relating to this section a question arises as to the nature of any substance present at any time in any hydrocarbon oil—</p></intro><level class="para1"><num>(a)</num><content><p>a certificate of the Commissioners to the effect that that substance is or was a marker designated for the purposes of this section shall be sufficient, unless the contrary is shown, for establishing that fact; and</p></content></level><level class="para1"><num>(b)</num><content><p>any document purporting to be such a certificate shall be taken to be one unless it is shown not to be.</p></content></level></subsection></section></quotedStructure></mod></p></content></subsection><subsection eId="section-7-2"><num>(2)</num><content><p>In section 24(1) of that Act (purposes for which regulations may be made), for “or section 19A above” there shall be inserted “, section 19A or section 24A of this Act”.</p></content></subsection></section><section eId="section-8"><num>8</num><heading>Relief for marine voyages</heading><subsection eId="section-8-1"><num>(1)</num><intro><p>The following provisions of the <noteRef href="#m00011" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Hydrocarbon Oil Duties Act 1979 are hereby repealed—</p></intro><level class="para1" eId="section-8-1-a"><num>(a)</num><content><p>section 18 (fuel for ships in home waters), and</p></content></level><level class="para1" eId="section-8-1-b"><num>(b)</num><content><p>in subsection (1) of section 19 (fuel used in fishing boats, etc.), paragraph (a) and the words from “by the owner” to “be”.</p></content></level></subsection><subsection eId="section-8-2"><num>(2)</num><content><p>This section shall come into force on such day as the Commissioners of Customs and Excise may by order made by statutory instrument appoint.</p></content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-I-crossheading-tobacco-products-duty"><heading>Tobacco products duty</heading><section eId="section-9"><num>9</num><heading>Rates of duty</heading><subsection eId="section-9-1"><num>(1)</num><content><p><mod>For the Table of rates of duty in Schedule 1 to the <noteRef href="#m00012" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Tobacco Products Duty Act 1979 there shall be substituted—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><tblock class="table" ukl:Orientation="portrait"><heading>TABLE</heading><foreign><default:table xmlns="http://www.w3.org/1999/xhtml" summary="Table of Rates of Tobacco Products Duty: This table displays the Tobacco product and the corresponding Rate of duty."><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1. Cigarettes</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">An amount equal to 20 per cent. of the retail price plus £62.52 per thousand cigarettes.</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2. Cigars</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£91.52 per kilogram.</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">3. Hand-rolling tobacco</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£85.94 per kilogram.</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4. Other smoking tobacco and chewing tobacco</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£40.24 per kilogram.</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure></mod></p></content></subsection><subsection eId="section-9-2"><num>(2)</num><content><p>This section shall be deemed to have come into force at 6 o'clock in the evening of 28th November 1995.</p></content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-I-crossheading-betting-duties-rates"><heading>Betting duties: rates</heading><section eId="section-10"><num>10</num><heading>General betting duty</heading><subsection eId="section-10-1"><num>(1)</num><content><p>In section 1(2) of the <noteRef href="#m00013" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Betting and Gaming Duties Act 1981 (rate of general betting duty), for “7.75 per cent.” there shall be substituted “6.75 per cent.”</p></content></subsection><subsection eId="section-10-2"><num>(2)</num><content><p>This section shall apply in relation to bets made on or after 1st March 1996.</p></content></subsection></section><section eId="section-11"><num>11</num><heading>Pool betting duty</heading><intro><p>In section 7(1) of the <noteRef href="#m00014" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Betting and Gaming Duties Act 1981 (rate of pool betting duty), for “32.50 per cent” there shall be substituted—</p></intro><level class="para1" eId="section-11-a"><num>(a)</num><content><p>in relation to bets the stake money on which has been or is paid on or after 3rd December 1995 and before the first Sunday to follow the day on which this Act is passed, “27.50 per cent.”; and</p></content></level><level class="para1" eId="section-11-b"><num>(b)</num><content><p>in relation to bets the stake money on which is paid on or after that first Sunday, “26.50 per cent.”</p></content></level></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-I-crossheading-amusement-machine-licence-duty"><heading>Amusement machine licence duty</heading><section eId="section-12"><num>12</num><heading>Licences for machines as well as premises</heading><subsection eId="section-12-1"><num>(1)</num><content><p>In subsection (1) of section 21 of the <noteRef href="#m00015" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Betting and Gaming Duties Act 1981 (requirement for amusement machine licence with respect to premises), at the end there shall be inserted “or the machine”.</p></content></subsection><subsection eId="section-12-2"><num>(2)</num><content><p>In subsection (2) of that section (licences to be known as amusement machine licences), at the end there shall be inserted “and, if it is granted with respect to a machine, rather than with respect to premises, as a special amusement machine licence.”</p></content></subsection><subsection eId="section-12-3"><num>(3)</num><content><p><mod>After subsection (3) of that section there shall be inserted the following subsections—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(3AA)</num><intro><p>A special amusement machine licence shall not be granted except where—</p></intro><level class="para1"><num>(a)</num><content><p>the machine with respect to which it is granted is of a description of machine for which special amusement machine licences are available;</p></content></level><level class="para1"><num>(b)</num><content><p>such conditions as may be prescribed by regulations made by the Commissioners are satisfied in relation to the application for the licence, the machine and the person by whom the application is made; and</p></content></level><level class="para1"><num>(c)</num><content><p>the licence is for twelve months.</p></content></level></subsection><subsection><num>(3AB)</num><intro><p>Special amusement machine licences shall be available for amusement machines of each of the following descriptions—</p></intro><level class="para1"><num>(a)</num><content><p>machines that are not gaming machines; and</p></content></level><level class="para1"><num>(b)</num><content><p>small prize machines.</p></content></level></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-12-4"><num>(4)</num><content><p>In section 24(4) of that Act (provision of unlicensed machines), at the end there shall be inserted “or the machines”.</p></content></subsection><subsection eId="section-12-5"><num>(5)</num><content><p><mod>In paragraph 4 of Schedule 4 to that Act (seasonal licences), after sub-paragraph (7) there shall be inserted the following sub-paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><subparagraph><num>(7AA)</num><intro><p>Sub-paragraphs (4) and (5) above shall have effect where—</p></intro><level class="para1"><num>(a)</num><content><p>an amusement machine is provided on any premises at any time in a winter period, and</p></content></level><level class="para1"><num>(b)</num><content><p>the provision of that machine on those premises at that time is authorised by a special amusement machine licence,</p></content></level><wrapUp><p>as if an amusement machine licence had been granted in respect of those premises for that winter period.</p></wrapUp></subparagraph></quotedStructure></mod></p></content></subsection><subsection eId="section-12-6"><num>(6)</num><content><p><mod>Paragraph 5 of that Schedule shall become sub-paragraph (1) of that paragraph, and after that sub-paragraph there shall be inserted the following sub-paragraphs—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><subparagraph><num>(2)</num><content><p>Regulations may provide for this Schedule to have effect in relation to special amusement machine licences with such exceptions, adaptations and modifications as may be prescribed.</p></content></subparagraph><subparagraph><num>(3)</num><intro><p>Without prejudice to the generality of sub-paragraphs (1) and (2) above, regulations may include provision requiring—</p></intro><level class="para1"><num>(a)</num><content><p>a special amusement machine licence to be displayed on such premises and in such manner, and</p></content></level><level class="para1"><num>(b)</num><content><p>the machine to which such a licence relates to bear such labels and marks,</p></content></level><wrapUp><p>as may be determined by directions given, in accordance with the regulations, by the Commissioners.</p></wrapUp></subparagraph></quotedStructure></mod></p></content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-I-crossheading-air-passenger-duty"><heading>Air passenger duty</heading><section eId="section-13"><num>13</num><heading>Pleasure flights</heading><subsection eId="section-13-1"><num>(1)</num><content><p><mod>In section 31 of the <noteRef href="#m00016" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1994 (air passenger duty: exceptions for certain passengers) after subsection (4) there shall be inserted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(4A)</num><intro><p>A passenger is not a chargeable passenger in relation to a flight if under his agreement for carriage (whether or not it is evidenced by a ticket)—</p></intro><level class="para1"><num>(a)</num><content><p>the flight is to depart from and return to the same airport, and</p></content></level><level class="para1"><num>(b)</num><content><p>the duration of the flight (excluding any period during which the aircraft’s doors are open for boarding or disembarkation) is not to exceed 60 minutes.</p></content></level></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-13-2"><num>(2)</num><intro><p>In section 32 of that Act (change of circumstances after ticket issued etc.)—</p></intro><level class="para1" eId="section-13-2-a"><num>(a)</num><content><p>in subsection (1) (which provides that that section applies where a person’s agreement for carriage is evidenced by a ticket) for the words “This section applies” there shall be substituted the words “Subsections (2) and (3) below apply”;</p></content></level><level class="para1" eId="section-13-2-b"><num>(b)</num><content><p><mod>after subsection (3) there shall be added—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(4)</num><intro><p>Where—</p></intro><level class="para1"><num>(a)</num><content><p>at the time a passenger’s flight begins, by virtue of section 31(4A) above he would not (assuming there is no change of circumstances) be a chargeable passenger in relation to the flight, and</p></content></level><level class="para1"><num>(b)</num><content><p>by reason only of a change of circumstances not attributable to any act or default of his, the flight does not return to the airport from which it departed or exceeds 60 minutes in duration (excluding any period during which the aircraft’s doors are open for boarding or disembarkation),</p></content></level><wrapUp><p>he shall not by reason of the change of circumstances be treated as a chargeable passenger in relation to that flight.</p></wrapUp></subsection></quotedStructure></mod></p></content></level></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-I-crossheading-vehicle-excise-duty"><heading>Vehicle excise duty</heading><section eId="section-14"><num>14</num><heading>Increase in general rate</heading><subsection eId="section-14-1"><num>(1)</num><content><p>In Schedule 1 to the <noteRef href="#m00017" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Vehicle Excise and Registration Act 1994 (annual rates of duty), in paragraph 1(2) (the general rate), for “£135” there shall be substituted “£140”.</p></content></subsection><subsection eId="section-14-2"><num>(2)</num><content><p>Subsection (1) above applies in relation to licences taken out after 28th November 1995.</p></content></subsection></section><section eId="section-15"><num>15</num><heading>Electrically propelled vehicles</heading><subsection eId="section-15-1"><num>(1)</num><content><p>In Schedule 1 to the Vehicle Excise and Registration Act 1994 (annual rates of duty), in paragraph 2(1)(a) (rate for motorcycles with low cylinder capacity), after “150 cubic centimetres” there shall be inserted “or the motorcycle is an electrically propelled vehicle”.</p></content></subsection><subsection eId="section-15-2"><num>(2)</num><intro><p>In paragraph 4F of that Schedule (electrically propelled vehicles are special concessionary vehicles)—</p></intro><level class="para1" eId="section-15-2-a"><num>(a)</num><content><p>in sub-paragraph (1), after “electrically propelled vehicle” there shall be inserted “other than a motorcycle (within the meaning of Part II of this Schedule)”; and</p></content></level><level class="para1" eId="section-15-2-b"><num>(b)</num><content><p>sub-paragraph (2) shall be omitted.</p></content></level></subsection><subsection eId="section-15-3"><num>(3)</num><content><p><mod>In section 62 of that Act (definitions), after subsection (1) there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1A)</num><intro><p>For the purposes of this Act, a vehicle is not an electrically propelled vehicle unless the electrical motive power is derived from—</p></intro><level class="para1"><num>(a)</num><content><p>a source external to the vehicle, or</p></content></level><level class="para1"><num>(b)</num><content><p>an electrical storage battery which is not connected to any source of power when the vehicle is in motion.</p></content></level></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-15-4"><num>(4)</num><content><p>Subsections (1) to (3) above apply in relation to licences taken out after 28th November 1995.</p></content></subsection><subsection eId="section-15-5"><num>(5)</num><content><p><mod>In Schedule 2 to that Act (exemptions), after paragraph 2 there shall be inserted the following paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><hcontainer name="crossheading" ukl:Name="Pblock"><heading>Electrically assisted pedal cycles</heading><paragraph class="schProv1"><num>2A</num><subparagraph><num>(1)</num><content><p>An electrically assisted pedal cycle is an exempt vehicle.</p></content></subparagraph><subparagraph><num>(2)</num><content><p>For the purposes of sub-paragraph (1) an electrically assisted pedal cycle is a vehicle of a class complying with such requirements as may be prescribed by regulations made by the Secretary of State for the purposes of this paragraph.</p></content></subparagraph></paragraph></hcontainer></quotedStructure></mod></p></content></subsection></section><section eId="section-16"><num>16</num><heading>Steam powered vehicles etc</heading><subsection eId="section-16-1"><num>(1)</num><content><p><mod>In Schedule 1 to the Vehicle Excise and Registration Act 1994 (annual rates of duty), after paragraph 4E there shall be inserted the following paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><paragraph class="schProv1"><num>4EE</num><content><p>A steam powered vehicle is a special concessionary vehicle.</p></content></paragraph></quotedStructure></mod></p></content></subsection><subsection eId="section-16-2"><num>(2)</num><content><p>In paragraph 3 of that Schedule (buses), in sub-paragraph (2)(b) (vehicles which are not buses), after “excepted vehicle” there shall be inserted “or a special concessionary vehicle”.</p></content></subsection><subsection eId="section-16-3"><num>(3)</num><content><p>In paragraph 4(2) of that Schedule (meaning of “special vehicle”), for “and is” there shall be substituted “which is not a special concessionary vehicle and which is”.</p></content></subsection><subsection eId="section-16-4"><num>(4)</num><content><p><mod>In paragraph 5 of that Schedule (recovery vehicles), after sub-paragraph (5) there shall be inserted the following sub-paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><subparagraph><num>(5A)</num><content><p>A vehicle is not a recovery vehicle if it is a special concessionary vehicle.</p></content></subparagraph></quotedStructure></mod></p></content></subsection><subsection eId="section-16-5"><num>(5)</num><content><p><mod>In paragraph 6(1) of that Schedule (vehicles used for exceptional loads), after paragraph (b) there shall be inserted—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><p>and which is not a special concessionary vehicle.</p></quotedStructure></mod></p></content></subsection><subsection eId="section-16-6"><num>(6)</num><content><p>In paragraph 7(2) of that Schedule (meaning of “haulage vehicle”), after “Part IV,” there shall be inserted “IVA,”.</p></content></subsection><subsection eId="section-16-7"><num>(7)</num><content><p>In paragraph 16 of that Schedule (application of Part VIII of the Schedule), in sub-paragraph (1)(a), after “Part II, IV,” there shall be inserted “IVA,”.</p></content></subsection><subsection eId="section-16-8"><num>(8)</num><content><p>This section applies in relation to licences taken out after 28th November 1995.</p></content></subsection></section><section eId="section-17"><num>17</num><heading>Vehicles capable of conveying loads</heading><subsection eId="section-17-1"><num>(1)</num><content><p>Schedule 1 to the <noteRef href="#m00018" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Vehicle Excise and Registration Act 1994 (annual rates of duty) shall be amended in accordance with subsections (2) to (8) below.</p></content></subsection><subsection eId="section-17-2"><num>(2)</num><content><p><mod>In paragraph 4(2) (meaning of “special vehicle”), immediately before paragraph (c) there shall be inserted the following paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><level class="para1"><num>(bb)</num><content><p>a vehicle falling within sub-paragraph (2A) or (2B),</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-17-3"><num>(3)</num><content><p><mod>After sub-paragraph (2) of paragraph 4 there shall be inserted the following sub-paragraphs—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><subparagraph><num>(2A)</num><intro><p>A vehicle falls within this sub-paragraph if—</p></intro><level class="para1"><num>(a)</num><content><p>it is designed or adapted for use for the conveyance of goods or burden of any description; but</p></content></level><level class="para1"><num>(b)</num><content><p>it is not so used or is not so used for hire or reward or for or in connection with a trade or business.</p></content></level></subparagraph><subparagraph><num>(2B)</num><intro><p>A vehicle falls within this sub-paragraph if—</p></intro><level class="para1"><num>(a)</num><content><p>it is designed or adapted for use with a semi-trailer attached; but</p></content></level><level class="para1"><num>(b)</num><content><p>it is not so used or, if it is so used, the semi-trailer is not used for the conveyance of goods or burden of any description.</p></content></level></subparagraph></quotedStructure></mod></p></content></subsection><subsection eId="section-17-4"><num>(4)</num><content><p><mod>In paragraph 9(2) (rigid goods vehicles which are subject to basic goods vehicle rate), after paragraph (b) there shall be inserted <quotedText startQuote="“">and</quotedText><quotedStructure endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><level class="para1"><num>(c)</num><content><p>to any rigid goods vehicle which is used loaded only in connection with a person learning to drive the vehicle or taking a driving test,</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-17-5"><num>(5)</num><content><p>In paragraph 10(1) (trailer supplement), after “exceeding 12,000 kilograms” there shall be inserted “, which does not fall within paragraph 9(2)(b) or (c)”.</p></content></subsection><subsection eId="section-17-6"><num>(6)</num><content><p><mod>In paragraph 11(2) (tractive units which are subject to basic goods vehicle rate), after paragraph (b) there shall be inserted <quotedText startQuote="“">and</quotedText><quotedStructure endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><level class="para1"><num>(c)</num><content><p>to any tractive unit to which a semi-trailer is attached which is used loaded only in connection with a person learning to drive the tractive unit or taking a driving test,</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-17-7"><num>(7)</num><content><p>In paragraph 16(1) (cases where Part VIII of Schedule 1 does not apply), paragraph (b), and the word “or” immediately preceding it, shall be omitted.</p></content></subsection><subsection eId="section-17-8"><num>(8)</num><content><p><mod>After paragraph 18 there shall be inserted the following paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><hcontainer name="crossheading" ukl:Name="Pblock"><heading>Other expressions</heading><paragraph class="schProv1"><num>19</num><subparagraph><num>(1)</num><content><p>In this Part “driving test” means any test of competence to drive mentioned in section 89(1) of the <noteRef href="#m00019" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Road Traffic Act 1988.</p></content></subparagraph><subparagraph><num>(2)</num><content><p>For the purposes of this Part a vehicle or a semi-trailer is used loaded if the vehicle or, as the case may be, the semi-trailer is used for the conveyance of goods or burden of any description.</p></content></subparagraph></paragraph></hcontainer></quotedStructure></mod></p></content></subsection><subsection eId="section-17-9"><num>(9)</num><intro><p>In section 7 of the <noteRef href="#m00020" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Vehicle Excise and Registration Act 1994 (issue of licences), in subsection (2) (declarations and particulars in relation to goods vehicles)—</p></intro><level class="para1" eId="section-17-9-a"><num>(a)</num><content><p>after “goods vehicle” there shall be inserted “or a special vehicle”; and</p></content></level><level class="para1" eId="section-17-9-b"><num>(b)</num><content><p>after “goods vehicles” there shall be inserted “or, as the case may be, special vehicles”.</p></content></level></subsection><subsection eId="section-17-10"><num>(10)</num><content><p><mod>After subsection (7) of that section there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(8)</num><content><p>In this section “special vehicle” has the same meaning as in paragraph 4 of Schedule 1.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-17-11"><num>(11)</num><content><p>Subject to subsection (13) below, subsections (1) to (8) above apply in relation to licences taken out after 28th November 1995.</p></content></subsection><subsection eId="section-17-12"><num>(12)</num><intro><p>Subsection (13) below applies where a vehicle licence is taken out—</p></intro><level class="para1" eId="section-17-12-a"><num>(a)</num><content><p>on or before 28th November 1995, and</p></content></level><level class="para1" eId="section-17-12-b"><num>(b)</num><content><p>at the rate applicable (at the time it is taken out) under Schedule 1 to the Vehicle Excise and Registration Act 1994.</p></content></level></subsection><subsection eId="section-17-13"><num>(13)</num><content><p>While the licence is in force duty shall not, by virtue of this section, become chargeable under section 15 of that Act (vehicle used in manner attracting higher rate).</p></content></subsection><subsection eId="section-17-14"><num>(14)</num><content><p>Subsections (9) and (10) above apply in relation to applications made after 28th November 1995.</p></content></subsection><subsection eId="section-17-15"><num>(15)</num><content><p>Paragraph 15 of Schedule 1 to that Act (which is unnecessary) shall be omitted.</p></content></subsection></section><section eId="section-18"><num>18</num><heading>Old vehicles</heading><subsection eId="section-18-1"><num>(1)</num><content><p><mod>In Schedule 2 to the <noteRef href="#m00021" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Vehicle Excise and Registration Act 1994 (exempt vehicles), immediately before paragraph 2 there shall be inserted the following paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><hcontainer name="crossheading" ukl:Name="Pblock"><heading>Old vehicles</heading><paragraph class="schProv1"><num>1A</num><subparagraph><num>(1)</num><content><p>A vehicle of a description mentioned in sub-paragraph (2) is an exempt vehicle at any time if it was constructed more than 25 years before the beginning of the year in which that time falls.</p></content></subparagraph><subparagraph><num>(2)</num><intro><p>The descriptions of vehicles are—</p></intro><level class="para1"><num>(a)</num><content><p>a vehicle in respect of which no annual rate is specified by any provision of Parts II to VIII of Schedule 1;</p></content></level><level class="para1"><num>(b)</num><content><p>a motorcycle which does not exceed 450 kilograms in weight unladen.</p></content></level></subparagraph><subparagraph><num>(3)</num><content><p>In sub-paragraph (2)(b) “motorcycle” has the same meaning as in Part II of Schedule 1.</p></content></subparagraph></paragraph></hcontainer></quotedStructure></mod></p></content></subsection><subsection eId="section-18-2"><num>(2)</num><intro><p>In Schedule 1 to that Act (annual rates of duty), in paragraph 1 (rate for vehicle for which no other rate is specified)—</p></intro><level class="para1" eId="section-18-2-a"><num>(a)</num><content><p>for paragraphs (a) and (b) of sub-paragraph (1) there shall be substituted “the general rate”; and</p></content></level><level class="para1" eId="section-18-2-b"><num>(b)</num><content><p>sub-paragraphs (3) to (5) shall be omitted;</p></content></level><wrapUp><p>and, in paragraph 2 (motorcycles), sub-paragraph (2) shall be omitted.</p></wrapUp></subsection><subsection eId="section-18-3"><num>(3)</num><content><p>In section 2(4) of that Act (rate of duty for vehicle not currently in use and for which no previous licence issued), for the words from “whichever” to the end there shall be substituted “the general rate currently specified in paragraph 1(2) of Schedule 1”.</p></content></subsection><subsection eId="section-18-4"><num>(4)</num><intro><p>In that Act—</p></intro><level class="para1" eId="section-18-4-a"><num>(a)</num><content><p>in section 13 (trade licences), in subsection (3)(b),</p></content></level><level class="para1" eId="section-18-4-b"><num>(b)</num><content><p>in section 13 as substituted under paragraph 8 of Schedule 4, in subsection (4)(b), and</p></content></level><level class="para1" eId="section-18-4-c"><num>(c)</num><content><p>in section 36(3)(b) (additional liability where cheque dishonoured),</p></content></level><wrapUp><p>for “1(1)(a)” there shall be substituted “1”.</p></wrapUp></subsection><subsection eId="section-18-5"><num>(5)</num><content><p>This section has effect in relation to times after 28th November 1995.</p></content></subsection></section><section eId="section-19"><num>19</num><heading>Old vehicles: further provisions</heading><subsection eId="section-19-1"><num>(1)</num><content><p><mod>In Schedule 2 to the <noteRef href="#m00022" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Vehicle Excise and Registration Act 1994 (exempt vehicles), for paragraph 1A (inserted by section 18 above) there shall be substituted the following paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><hcontainer name="crossheading" ukl:Name="Pblock"><heading>Old vehicles</heading><paragraph class="schProv1"><num>1A</num><subparagraph><num>(1)</num><content><p>Subject to sub-paragraph (2), a vehicle is an exempt vehicle at any time if it was constructed more than 25 years before the beginning of the year in which that time falls.</p></content></subparagraph><subparagraph><num>(2)</num><intro><p>A vehicle is not an exempt vehicle by virtue of sub-paragraph (1) if—</p></intro><level class="para1"><num>(a)</num><content><p>an annual rate is specified in respect of it by any provision of Part III, V, VI, VII or VIII of Schedule 1; or</p></content></level><level class="para1"><num>(b)</num><intro><p>it is a special vehicle, within the meaning of Part IV of Schedule 1, which—</p></intro><level class="para2"><num>(i)</num><content><p>falls within sub-paragraph (3) or (4); and</p></content></level><level class="para2"><num>(ii)</num><content><p>is not a digging machine, mobile crane, works truck or road roller.</p></content></level></level></subparagraph><subparagraph><num>(3)</num><intro><p>A vehicle falls within this sub-paragraph if—</p></intro><level class="para1"><num>(a)</num><content><p>it is designed or adapted for use for the conveyance of goods or burden of any description;</p></content></level><level class="para1"><num>(b)</num><content><p>it is put to a commercial use on a public road; and</p></content></level><level class="para1"><num>(c)</num><content><p>that use is not a use for the conveyance of goods or burden of any description.</p></content></level></subparagraph><subparagraph><num>(4)</num><intro><p>A vehicle falls within this sub-paragraph if—</p></intro><level class="para1"><num>(a)</num><content><p>it is designed or adapted for use with a semi-trailer attached;</p></content></level><level class="para1"><num>(b)</num><content><p>it is put to a commercial use on a public road; and</p></content></level><level class="para1"><num>(c)</num><content><p>in a case where that use is a use with a semi-trailer attached, the semi-trailer is not used for the conveyance of goods or burden of any description.</p></content></level></subparagraph><subparagraph><num>(5)</num><content><p>In sub-paragraph (2) “digging machine”, “mobile crane” and “works truck” have the same meanings as in paragraph 4 of Schedule 1.</p></content></subparagraph><subparagraph><num>(6)</num><content><p>In sub-paragraphs (3) and (4) “commercial use” means use for hire or reward or for or in connection with a trade or business.</p></content></subparagraph></paragraph></hcontainer></quotedStructure></mod></p></content></subsection><subsection eId="section-19-2"><num>(2)</num><content><p>This section has effect in relation to times on or after 1st June 1996.</p></content></subsection></section><section eId="section-20"><num>20</num><heading>Exemptions for vehicle testing: general</heading><subsection eId="section-20-1"><num>(1)</num><content><p>Paragraph 22 of Schedule 2 to the <noteRef href="#m00023" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Vehicle Excise and Registration Act 1994 (exemption for vehicle testing) shall be amended as follows.</p></content></subsection><subsection eId="section-20-2"><num>(2)</num><content><p>In sub-paragraph (1) (use for the purposes of submitting a vehicle to, or bringing it away from, a compulsory test), after the words “compulsory test”, in each place where they occur, there shall be inserted “or a vehicle weight test”.</p></content></subsection><subsection eId="section-20-3"><num>(3)</num><content><p><mod>After sub-paragraph (1) there shall be inserted the following sub-paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><subparagraph><num>(1A)</num><intro><p>A vehicle is an exempt vehicle when it is being used solely for the purpose of—</p></intro><level class="para1"><num>(a)</num><content><p>taking it (by previous arrangement for a specified time on a specified date) for a relevant re-examination, or</p></content></level><level class="para1"><num>(b)</num><content><p>bringing it away from such a re-examination.</p></content></level></subparagraph></quotedStructure></mod></p></content></subsection><subsection eId="section-20-4"><num>(4)</num><intro><p>In sub-paragraph (2) (use by an authorised person in the course of compulsory test)—</p></intro><level class="para1" eId="section-20-4-a"><num>(a)</num><content><p>after “compulsory test” there shall be inserted “, a vehicle weight test or a relevant re-examination and is being so used”; and</p></content></level><level class="para1" eId="section-20-4-b"><num>(b)</num><content><p>in paragraphs (a) and (b), after the words “the test”, in each place where they occur, there shall be inserted “or re-examination”.</p></content></level></subsection><subsection eId="section-20-5"><num>(5)</num><content><p><mod>After sub-paragraph (2) there shall be inserted the following sub-paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(2A)</num><intro><p>A vehicle is an exempt vehicle when it is being used by an authorised person solely for the purpose of warming up its engine in preparation for the carrying out of—</p></intro><level class="para1"><num>(a)</num><content><p>a compulsory test, or</p></content></level><level class="para1"><num>(b)</num><content><p>a relevant re-examination that is to be carried out for the purposes of an appeal relating to a determination made on a compulsory test.</p></content></level></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-20-6"><num>(6)</num><content><p>In sub-paragraph (3) (exemption applying where the relevant certificate is refused), after “a vehicle” there shall be inserted “or as a result of a relevant re-examination,”.</p></content></subsection><subsection eId="section-20-7"><num>(7)</num><intro><p>In sub-paragraph (5) (relevant examinations)—</p></intro><level class="para1" eId="section-20-7-a"><num>(a)</num><content><p><mod>for paragraph (a), there shall be substituted the following paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(a)</num><content><p>an examination under regulations under section 49(1)(b) or (c) of the <noteRef href="#m00024" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Road Traffic Act 1988 (examination as to compliance with construction and use or safety requirements)</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="section-20-7-b"><num>(b)</num><content><p>the word “and” shall be inserted at the end of paragraph (b); and</p></content></level><level class="para1" eId="section-20-7-c"><num>(c)</num><content><p>paragraph (c) (examinations for the purpose of an appeal under section 60 of the Road Traffic Act 1988) shall be omitted.</p></content></level></subsection><subsection eId="section-20-8"><num>(8)</num><content><p><mod>After sub-paragraph (6) there shall be inserted the following sub-paragraphs—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(6A)</num><intro><p>In this paragraph “a vehicle weight test” means any examination of a vehicle for which provision is made by regulations under—</p></intro><level class="para1"><num>(a)</num><content><p>section 61A of this Act,</p></content></level><level class="para1"><num>(b)</num><content><p>section 49(1)(a) of the Road Traffic Act 1988 (tests for selecting plated weights and other plated particulars), or</p></content></level><level class="para1"><num>(c)</num><content><p>Article 65(1)(a) of the <noteRef href="#m00025" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Road Traffic (Northern Ireland) Order 1995.</p></content></level></subsection><subsection><num>(6B)</num><content><p>In this paragraph “a relevant re-examination” means any examination or re-examination which is carried out in accordance with any provision or requirement made or imposed for the purposes of an appeal relating to a determination made on a compulsory test or vehicle weight test.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-20-9"><num>(9)</num><intro><p>Subject to section 21(3) below, in sub-paragraph (7) (meaning of “authorised person”)—</p></intro><level class="para1" eId="section-20-9-a"><num>(a)</num><content><p>the word “and” at the end of paragraph (b) shall be omitted;</p></content></level><level class="para1" eId="section-20-9-b"><num>(b)</num><content><p>at the end of paragraph (c) there shall be inserted the word “and”; and</p></content></level><level class="para1" eId="section-20-9-c"><num>(c)</num><content><p><mod>after that paragraph there shall be inserted the following paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(d)</num><intro><p>in the case of a relevant re-examination—</p></intro><level class="para2"><num>(i)</num><content><p>the person to whom the appeal in question is made, or</p></content></level><level class="para2"><num>(ii)</num><content><p>any person who, by virtue of an appointment made by that person, is authorised by or under any enactment to carry out that re-examination.</p></content></level></level></quotedStructure></mod></p></content></level></subsection><subsection eId="section-20-10"><num>(10)</num><content><p>This section shall be deemed to have come into force on 28th November 1995.</p></content></subsection></section><section eId="section-21"><num>21</num><heading>Exemptions for vehicle testing in Northern Ireland</heading><subsection eId="section-21-1"><num>(1)</num><content><p>Paragraph 22 of Schedule 2 to the <noteRef href="#m00026" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Vehicle Excise and Registration Act 1994 (exemption for vehicle testing) shall be further amended as follows.</p></content></subsection><subsection eId="section-21-2"><num>(2)</num><content><p><mod>For sub-paragraph (6) (meaning of “compulsory test” in Northern Ireland) there shall be substituted the following sub-paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><subparagraph><num>(6)</num><intro><p>In this paragraph “compulsory test” means, as respects Northern Ireland—</p></intro><level class="para1"><num>(a)</num><content><p>an examination to obtain a test certificate under Article 61 of the <noteRef href="#m00027" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Road Traffic (Northern Ireland) Order 1995 without which a vehicle licence cannot be obtained for the vehicle,</p></content></level><level class="para1"><num>(b)</num><content><p>an examination to obtain a goods vehicle test certificate under Article 65 of that Order, or</p></content></level><level class="para1"><num>(c)</num><content><p>an examination to obtain a public service vehicle licence under Article 60(1) of the <noteRef href="#m00028" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Road Traffic (Northern Ireland) Order 1981.</p></content></level></subparagraph></quotedStructure></mod></p></content></subsection><subsection eId="section-21-3"><num>(3)</num><content><p><mod>For paragraph (c) of sub-paragraph (7) (as amended by section 20(9) above) there shall be substituted the following paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><level class="para1"><num>(c)</num><content><p>in the case of an examination within sub-paragraph (6), an authorised examiner within the meaning of Article 61(3)(a) of the Road Traffic (Northern Ireland) Order 1995 or a vehicle examiner within the meaning of Part III of that Order; and</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-21-4"><num>(4)</num><content><p><mod>In sub-paragraph (9) (meaning of “relevant certificate” in Northern Ireland), for paragraphs (a) and (b) there shall be substituted the following paragraphs—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><level class="para1"><num>(a)</num><content><p>a test certificate (within the meaning of Article 61(2) of the Road Traffic (Northern Ireland) Order 1995),</p></content></level><level class="para1"><num>(b)</num><content><p>a goods vehicle test certificate (within the meaning of Article 65(2) of that Order), or</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-21-5"><num>(5)</num><content><p>In sub-paragraph (10)(a) (meaning of “relevant work”), the words “(or, in Northern Ireland, a vehicle test certificate)” shall be omitted.</p></content></subsection><subsection eId="section-21-6"><num>(6)</num><content><p>This section shall be deemed to have come into force on the date of the coming into operation of Articles 61 and 65 of the Road Traffic (Northern Ireland) Order 1995 (“the operational date”).</p></content></subsection><subsection eId="section-21-7"><num>(7)</num><content><p>Subsections (2), (4) and (5) above do not have effect in relation to a compulsory test carried out in Northern Ireland before the operational date except for the purpose of construing, in relation to such a test, the reference to a further compulsory test in paragraph 22(10)(a) of Schedule 2 to the Vehicle Excise and Registration Act 1994.</p></content></subsection></section><section eId="section-22"><num>22</num><heading>Other provisions relating to Northern Ireland</heading><subsection eId="section-22-1"><num>(1)</num><content><p>In section 42 of the Vehicle Excise and Registration Act 1994 (not fixing registration mark), in subsection (5)(b), for “Article 34 of the Road Traffic (Northern Ireland) Order 1981” there shall be substituted “Article 63 of the Road Traffic (Northern Ireland) Order 1995”.</p></content></subsection><subsection eId="section-22-2"><num>(2)</num><content><p><mod>In subsection (6) of that section, for paragraph (b) there shall be substituted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(b)</num><content><p>it is being driven for the purposes of, or in connection with, its examination under Article 61 of the <noteRef href="#m00029" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Road Traffic (Northern Ireland) Order 1995 in circumstances in which its use is exempted from paragraph (1) of Article 63 of that Order by regulations under paragraph (6) of that Article.</p></content></level></quotedStructure></mod></p></content></subsection><subsection eId="section-22-3"><num>(3)</num><content><p>In section 60A(11) of that Act (special maximum weight in Northern Ireland), for “Article 29(3) of the <noteRef href="#m00030" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Road Traffic (Northern Ireland) Order 1981” there shall be substituted “Article 60(1) of the Road Traffic (Northern Ireland) Order 1995”.</p></content></subsection><subsection eId="section-22-4"><num>(4)</num><content><p><mod>In section 61(6) of that Act (meaning of “weight unladen”), for paragraph (b) there shall be substituted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(b)</num><content><p>in Northern Ireland, has the same meaning as it has for the purposes of the Road Traffic (Northern Ireland) Order 1995 by virtue of Article 7 of that Order.</p></content></level></quotedStructure></mod></p></content></subsection><subsection eId="section-22-5"><num>(5)</num><content><p><mod>In paragraph 6 of Schedule 1 to that Act (vehicles used for exceptional loads), in sub-paragraph (2) for paragraph (b) there shall be substituted—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><level class="para1"><num>(b)</num><content><p>Article 60 of the Road Traffic (Northern Ireland) Order 1995,</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-22-6"><num>(6)</num><intro><p>In that paragraph—</p></intro><level class="para1" eId="section-22-6-a"><num>(a)</num><content><p>in sub-paragraph (3)(a), for “Article 28 of the Road Traffic (Northern Ireland) Order 1981” there shall be substituted “Article 55 of the Road Traffic (Northern Ireland) Order 1995”; and</p></content></level><level class="para1" eId="section-22-6-b"><num>(b)</num><content><p>in sub-paragraph (4), for “the Road Traffic (Northern Ireland) Order 1981” there shall be substituted “the Road Traffic (Northern Ireland) Order 1995”.</p></content></level></subsection><subsection eId="section-22-7"><num>(7)</num><intro><p>In paragraph 17 of Schedule 3 to that Act (amendments of the Road Traffic (Northern Ireland) Order 1981)—</p></intro><level class="para1" eId="section-22-7-a"><num>(a)</num><content><p>in sub-paragraph (1), “29(2),” and “34(6),” shall be omitted, and</p></content></level><level class="para1" eId="section-22-7-b"><num>(b)</num><content><p>sub-paragraph (2) shall be omitted.</p></content></level></subsection></section><section eId="section-23"><num>23</num><heading>Licensing and registration</heading><content><p>Schedule 2 to this Act (which makes provision in connection with powers conferred on the Secretary of State by the <noteRef href="#m00031" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Vehicle Excise and Registration Act 1994) shall have effect.</p></content></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-I-crossheading-repeal-of-certain-drawbacks-and-allowances"><heading>Repeal of certain drawbacks and allowances</heading><section eId="section-24"><num>24</num><heading>Repeal of certain drawbacks and allowances</heading><intro><p>The following provisions (which provide for repayments, drawbacks or allowances in the case of certain excise duties) shall cease to have effect, that is to say—</p></intro><level class="para1" eId="section-24-a"><num>(a)</num><content><p>section 3 of the <noteRef href="#m00032" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1977 (repayment in respect of tobacco used in the manufacture of a tobacco product after having borne duty under section 4 of the <noteRef href="#m00033" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1964);</p></content></level><level class="para1" eId="section-24-b"><num>(b)</num><content><p>section 22(6) of the <noteRef href="#m00034" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Alcoholic Liquor Duties Act 1979 (additions in respect of waste which are deemed to be made to tinctures exported or shipped as stores);</p></content></level><level class="para1" eId="section-24-c"><num>(c)</num><content><p>section 23 of that Act of 1979 (allowances in respect of British compounded spirits);</p></content></level><level class="para1" eId="section-24-d"><num>(d)</num><content><p>section 92(6) of that Act of 1979 (transitional right to drawback); and</p></content></level><level class="para1" eId="section-24-e"><num>(e)</num><content><p>section 9(2) and (3) of the <noteRef href="#m00035" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Isle of Man Act 1979 (removal to the Isle of Man treated as export for the purposes of drawback).</p></content></level></section></hcontainer></part>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="part-I-crossheading-alcoholic-liquor-duties"><heading>Alcoholic liquor duties</heading><section eId="section-1"><num>1</num><heading>Spirits: rate of duty</heading><subsection eId="section-1-1"><num>(1)</num><content><p>In section 5 of the <noteRef href="#m00001" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Alcoholic Liquor Duties Act 1979 (spirits), for “£20.60” there shall be substituted “£19.78”.</p></content></subsection><subsection eId="section-1-2"><num>(2)</num><content><p>This section shall be deemed to have come into force at 6 o'clock in the evening of 28th November 1995.</p></content></subsection></section><section eId="section-2"><num>2</num><heading>Wine and made-wine: rates</heading><subsection eId="section-2-1"><num>(1)</num><intro><p>In the Table of rates of duty in Schedule 1 to the Alcoholic Liquor Duties Act 1979 (wine and made-wine)—</p></intro><level class="para1" eId="section-2-1-a"><num>(a)</num><content><p>in Part I of the Table for “200.64”, where it appears as the rate for wine or made-wine of a strength exceeding 15 per cent. but not exceeding 22 per cent., there shall be substituted “187.24”; and</p></content></level><level class="para1" eId="section-2-1-b"><num>(b)</num><content><p>in Part II of that Table (wine or made-wine of a strength exceeding 22 per cent.), for “20.60” there shall be substituted “19.78”.</p></content></level></subsection><subsection eId="section-2-2"><num>(2)</num><content><p>Paragraph (a) of subsection (1) above shall be deemed to have come into force on 1st January 1996 and paragraph (b) shall be deemed to have come into force at 6 o'clock in the evening of 28th November 1995.</p></content></subsection></section><section eId="section-3"><num>3</num><heading>Cider: rate of duty</heading><subsection eId="section-3-1"><num>(1)</num><content><p>In subsection (1) of section 62 of the <noteRef href="#m00002" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Alcoholic Liquor Duties Act 1979 (cider), for “rate of £23.78 per hectolitre” there shall be substituted “rates shown in subsection (1A) below.”</p></content></subsection><subsection eId="section-3-2"><num>(2)</num><content><p><mod>After that subsection there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1A)</num><intro><p>The rates at which the duty shall be charged are—</p></intro><level class="para1"><num>(a)</num><content><p>£35.67 per hectolitre in the case of cider of a strength exceeding 7.5 per cent.; and</p></content></level><level class="para1"><num>(b)</num><content><p>£23.78 per hectolitre in any other case.</p></content></level></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-3-3"><num>(3)</num><content><p>This section shall come into force on 1st October 1996.</p></content></subsection></section></hcontainer>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-1"><num>1</num><heading>Spirits: rate of duty</heading><subsection eId="section-1-1"><num>(1)</num><content><p>In section 5 of the <noteRef href="#m00001" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Alcoholic Liquor Duties Act 1979 (spirits), for “£20.60” there shall be substituted “£19.78”.</p></content></subsection><subsection eId="section-1-2"><num>(2)</num><content><p>This section shall be deemed to have come into force at 6 o'clock in the evening of 28th November 1995.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-1-1"><num>(1)</num><content><p>In section 5 of the <noteRef href="#m00001" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Alcoholic Liquor Duties Act 1979 (spirits), for “£20.60” there shall be substituted “£19.78”.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-1-2"><num>(2)</num><content><p>This section shall be deemed to have come into force at 6 o'clock in the evening of 28th November 1995.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-2"><num>2</num><heading>Wine and made-wine: rates</heading><subsection eId="section-2-1"><num>(1)</num><intro><p>In the Table of rates of duty in Schedule 1 to the Alcoholic Liquor Duties Act 1979 (wine and made-wine)—</p></intro><level class="para1" eId="section-2-1-a"><num>(a)</num><content><p>in Part I of the Table for “200.64”, where it appears as the rate for wine or made-wine of a strength exceeding 15 per cent. but not exceeding 22 per cent., there shall be substituted “187.24”; and</p></content></level><level class="para1" eId="section-2-1-b"><num>(b)</num><content><p>in Part II of that Table (wine or made-wine of a strength exceeding 22 per cent.), for “20.60” there shall be substituted “19.78”.</p></content></level></subsection><subsection eId="section-2-2"><num>(2)</num><content><p>Paragraph (a) of subsection (1) above shall be deemed to have come into force on 1st January 1996 and paragraph (b) shall be deemed to have come into force at 6 o'clock in the evening of 28th November 1995.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-2-1"><num>(1)</num><intro><p>In the Table of rates of duty in Schedule 1 to the Alcoholic Liquor Duties Act 1979 (wine and made-wine)—</p></intro><level class="para1" eId="section-2-1-a"><num>(a)</num><content><p>in Part I of the Table for “200.64”, where it appears as the rate for wine or made-wine of a strength exceeding 15 per cent. but not exceeding 22 per cent., there shall be substituted “187.24”; and</p></content></level><level class="para1" eId="section-2-1-b"><num>(b)</num><content><p>in Part II of that Table (wine or made-wine of a strength exceeding 22 per cent.), for “20.60” there shall be substituted “19.78”.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-2-1-a"><num>(a)</num><content><p>in Part I of the Table for “200.64”, where it appears as the rate for wine or made-wine of a strength exceeding 15 per cent. but not exceeding 22 per cent., there shall be substituted “187.24”; and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-2-1-b"><num>(b)</num><content><p>in Part II of that Table (wine or made-wine of a strength exceeding 22 per cent.), for “20.60” there shall be substituted “19.78”.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-2-2"><num>(2)</num><content><p>Paragraph (a) of subsection (1) above shall be deemed to have come into force on 1st January 1996 and paragraph (b) shall be deemed to have come into force at 6 o'clock in the evening of 28th November 1995.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-3"><num>3</num><heading>Cider: rate of duty</heading><subsection eId="section-3-1"><num>(1)</num><content><p>In subsection (1) of section 62 of the <noteRef href="#m00002" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Alcoholic Liquor Duties Act 1979 (cider), for “rate of £23.78 per hectolitre” there shall be substituted “rates shown in subsection (1A) below.”</p></content></subsection><subsection eId="section-3-2"><num>(2)</num><content><p><mod>After that subsection there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1A)</num><intro><p>The rates at which the duty shall be charged are—</p></intro><level class="para1"><num>(a)</num><content><p>£35.67 per hectolitre in the case of cider of a strength exceeding 7.5 per cent.; and</p></content></level><level class="para1"><num>(b)</num><content><p>£23.78 per hectolitre in any other case.</p></content></level></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-3-3"><num>(3)</num><content><p>This section shall come into force on 1st October 1996.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-3-1"><num>(1)</num><content><p>In subsection (1) of section 62 of the <noteRef href="#m00002" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Alcoholic Liquor Duties Act 1979 (cider), for “rate of £23.78 per hectolitre” there shall be substituted “rates shown in subsection (1A) below.”</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-3-2"><num>(2)</num><content><p><mod>After that subsection there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1A)</num><intro><p>The rates at which the duty shall be charged are—</p></intro><level class="para1"><num>(a)</num><content><p>£35.67 per hectolitre in the case of cider of a strength exceeding 7.5 per cent.; and</p></content></level><level class="para1"><num>(b)</num><content><p>£23.78 per hectolitre in any other case.</p></content></level></subsection></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-3-3"><num>(3)</num><content><p>This section shall come into force on 1st October 1996.</p></content></subsection>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="part-I-crossheading-hydrocarbon-oil-duties"><heading>Hydrocarbon oil duties</heading><section eId="section-4"><num>4</num><heading>Rates of duty and rebate</heading><subsection eId="section-4-1"><num>(1)</num><content><p>In section 6(1) of the <noteRef href="#m00003" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Hydrocarbon Oil Duties Act 1979, for “£0.3614” (duty on light oil) and “£0.3132” (duty on heavy oil) there shall be substituted “£0.3912” and “£0.3430”, respectively.</p></content></subsection><subsection eId="section-4-2"><num>(2)</num><content><p>In section 8(3) of that Act (duty on road fuel gas), for “£0.3314” there shall be substituted “£0.2817”.</p></content></subsection><subsection eId="section-4-3"><num>(3)</num><content><p>In section 11(1) of that Act (rebate on heavy oil), for “£0.0166” (fuel oil) and “£0.0214” (gas oil) there shall be substituted “£0.0181” and “£0.0233”, respectively.</p></content></subsection><subsection eId="section-4-4"><num>(4)</num><content><p><mod>In subsection (1) of section 13A of that Act (rebate on unleaded petrol), for “the rate of £0.0482 a litre” there shall be substituted “the rate specified in subsection (1A) below”; and after that subsection there shall be inserted the following subsections—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1A)</num><intro><p>The rate of rebate shall be—</p></intro><level class="para1"><num>(a)</num><content><p>£0.0150 a litre in the case of higher octane unleaded petrol; and</p></content></level><level class="para1"><num>(b)</num><content><p>£0.0482 a litre in any other case.</p></content></level></subsection><subsection><num>(1B)</num><intro><p>For the purposes of this section unleaded petrol is “higher octane” if—</p></intro><level class="para1"><num>(a)</num><content><p>its research octane number is not less than 96 and its motor octane number is not less than 86;</p></content></level><level class="para1"><num>(b)</num><content><p>it is delivered for home use as petrol which satisfies the condition set out in paragraph (a) above;</p></content></level><level class="para1"><num>(c)</num><content><p>it is delivered for home use as petrol which is suitable to be used as fuel for engines for which leaded petrol is suitable by virtue of being leaded; or</p></content></level><level class="para1"><num>(d)</num><intro><p>it is delivered for home use under such a description, or in such a manner, as tends, in the circumstances, to suggest that it is—</p></intro><level class="para2"><num>(i)</num><content><p>petrol satisfying the condition set out in paragraph (a) above; or</p></content></level><level class="para2"><num>(ii)</num><content><p>petrol suitable to be used as fuel for engines for which leaded petrol is suitable by virtue of being leaded.</p></content></level></level></subsection><subsection><num>(1C)</num><content><p>The method of testing unleaded petrol for ascertaining, for the purposes of this section, its research octane number or motor octane number shall be such as the Commissioners may direct.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-4-5"><num>(5)</num><content><p>In subsection (2) of that section (meaning of “unleaded”), for the words from “or, if” onwards there shall be substituted “; and petrol is “leaded” for the purposes of this section if it is not unleaded.”</p></content></subsection><subsection eId="section-4-6"><num>(6)</num><content><p>In section 14(1) of that Act (rebate on light oil for use as furnace fuel), for “£0.0166” there shall be substituted “£0.0181”.</p></content></subsection><subsection eId="section-4-7"><num>(7)</num><content><p>Subsections (1) to (3) and (6) above shall be deemed to have come into force at 6 o'clock in the evening of 28th November 1995; and subsection (4) above shall come into force on 15th May 1996.</p></content></subsection></section><section eId="section-5"><num>5</num><heading>Misuse of rebated kerosene</heading><subsection eId="section-5-1"><num>(1)</num><content><p>The <noteRef href="#m00004" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Hydrocarbon Oil Duties Act 1979 shall be amended as mentioned in subsections (2) to (5) below.</p></content></subsection><subsection eId="section-5-2"><num>(2)</num><content><p>In section 11(1) (rebate on heavy oil), for “and 13” there shall be substituted “13, 13AA and 13AB”.</p></content></subsection><subsection eId="section-5-3"><num>(3)</num><content><p>In section 12(2) (restriction on use of rebated heavy oil for road vehicles), after “allowed” there shall be inserted “(whether under section 11(1) above or 13AA(1) below)”.</p></content></subsection><subsection eId="section-5-4"><num>(4)</num><content><p><mod>After section 13 there shall be inserted the following sections—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>13AA</num><heading>Restrictions on use of rebated kerosene</heading><subsection><num>(1)</num><intro><p>If, on the delivery of kerosene for home use, it is intended to use the kerosene as fuel for—</p></intro><level class="para1"><num>(a)</num><content><p>an engine provided for propelling an excepted vehicle, or</p></content></level><level class="para1"><num>(b)</num><content><p>an engine which is used neither for propelling a vehicle nor for heating,</p></content></level><wrapUp><p>a declaration shall be made to that effect and thereupon rebate shall be allowed at the rate for rebated gas oil which is then in force, instead of at the rate then in force under section 11(1)(c) above.</p></wrapUp></subsection><subsection><num>(2)</num><intro><p>Subject to subsection (3) below, no kerosene on whose delivery for home use a rebate at the rate given by section 11(1)(c) above has been allowed shall—</p></intro><level class="para1"><num>(a)</num><content><p>be used as fuel for an engine provided for propelling an excepted vehicle;</p></content></level><level class="para1"><num>(b)</num><content><p>be used as fuel for an engine which is used neither for propelling a vehicle nor for heating; or</p></content></level><level class="para1"><num>(c)</num><content><p>be taken into the fuel supply of an engine falling within paragraph (a) or (b) above.</p></content></level></subsection><subsection><num>(3)</num><content><p>Subsection (2) above does not apply to any quantity of kerosene in respect of which there has been paid to the Commissioners an amount equal to duty on the same quantity of gas oil at the rate for rebated gas oil which is in force at the time of the payment.</p></content></subsection><subsection><num>(4)</num><content><p>A payment under subsection (3) above shall be made in accordance with regulations made under section 24(1) below for the purposes of this section.</p></content></subsection><subsection><num>(5)</num><intro><p>For the purposes of this section and section 13AB below—</p></intro><hcontainer name="definition"><content><p>“excepted vehicle” means a vehicle which is an excepted vehicle under any provision of Schedule 1 to this Act; and</p></content></hcontainer><hcontainer name="definition"><content><p>“kerosene” means heavy oil of which more than 50 per cent. by volume distils at a temperature of 240°C or less.</p></content></hcontainer></subsection><subsection><num>(6)</num><content><p>For the purposes of this section and section 13AB below the rate for rebated gas oil which is in force at any time is the rate of duty which at that time is in force under section 6(1) above in the case of heavy oil as reduced by the rate of rebate allowable at that time under section 11(1)(b) above.</p></content></subsection></section><section><num>13AB</num><heading>Penalties for misuse of kerosene</heading><subsection><num>(1)</num><intro><p>If a person uses kerosene in contravention of section 13AA(2) above—</p></intro><level class="para1"><num>(a)</num><content><p>the Commissioners may recover from him, in respect of the quantity of kerosene used, an amount equal to duty on the same quantity of gas oil at the rate for rebated gas oil which is in force at the time of the contravention;</p></content></level><level class="para1"><num>(b)</num><content><p>his use of the kerosene shall attract a penalty under section 9 of the <noteRef href="#m00005" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1994 (civil penalties); and</p></content></level><level class="para1"><num>(c)</num><content><p>if he uses the kerosene with the relevant intent, he shall be guilty of an offence.</p></content></level></subsection><subsection><num>(2)</num><intro><p>If a person is liable for kerosene being taken into a fuel supply of an engine in contravention of section 13AA(2) above—</p></intro><level class="para1"><num>(a)</num><content><p>the Commissioners may recover from him, in respect of the quantity of kerosene taken into the fuel supply, an amount equal to duty on the same quantity of gas oil at the rate for rebated gas oil which is in force at the time of the contravention;</p></content></level><level class="para1"><num>(b)</num><content><p>his becoming so liable shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties); and</p></content></level><level class="para1"><num>(c)</num><content><p>if he has the relevant intent in relation to the kerosene being taken into the fuel supply, he shall be guilty of an offence.</p></content></level></subsection><subsection><num>(3)</num><intro><p>For the purposes of subsection (2) above, a person is liable for kerosene being taken into a fuel supply of an engine if at the time—</p></intro><level class="para1"><num>(a)</num><content><p>he has the charge of the engine; or</p></content></level><level class="para1"><num>(b)</num><content><p>subject to subsection (4) below, he is the owner of the engine.</p></content></level></subsection><subsection><num>(4)</num><content><p>If a person other than the owner is for the time being entitled to possession of the engine, that other person and not the owner is liable.</p></content></subsection><subsection><num>(5)</num><intro><p>If—</p></intro><level class="para1"><num>(a)</num><content><p>a person supplies kerosene having reason to believe that it will be put to a particular use, and</p></content></level><level class="para1"><num>(b)</num><content><p>that use is one which, if a payment is not made under subsection (3) of section 13AA above, will contravene subsection (2) of that section,</p></content></level><wrapUp><p>his supplying the kerosene shall attract a penalty under section 9 of the <noteRef href="#m00006" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1994 (civil penalties) and, if he makes the supply with the relevant intent, he shall be guilty of an offence.</p></wrapUp></subsection><subsection><num>(6)</num><content><p>In this section “the relevant intent” means the intent that the restrictions imposed by section 13AA(2) above shall be contravened.</p></content></subsection><subsection><num>(7)</num><intro><p>A person guilty of an offence under this section shall be liable—</p></intro><level class="para1"><num>(a)</num><content><p>on summary conviction, to a penalty of the statutory maximum, or to imprisonment for a term not exceeding 6 months, or to both;</p></content></level><level class="para1"><num>(b)</num><content><p>on conviction on indictment, to a penalty of any amount, or to a term of imprisonment not exceeding 7 years, or to both.</p></content></level></subsection><subsection><num>(8)</num><content><p>Any kerosene falling within subsection (9) or (10) below is liable to forfeiture.</p></content></subsection><subsection><num>(9)</num><content><p>Kerosene falls within this subsection if it is taken into a fuel supply in contravention of section 13AA(2) above.</p></content></subsection><subsection><num>(10)</num><intro><p>Kerosene falls within this subsection if—</p></intro><level class="para1"><num>(a)</num><content><p>it has been supplied in circumstances in which there is reason to believe that it will be put to a particular use; and</p></content></level><level class="para1"><num>(b)</num><content><p>that use is one which, if payment is not made under subsection (3) of section 13AA above, will contravene subsection (2) of that section.</p></content></level></subsection></section></quotedStructure></mod></p></content></subsection><subsection eId="section-5-5"><num>(5)</num><intro><p>In section 24 (control of use of duty-free and rebated oil)—</p></intro><level class="para1" eId="section-5-5-a"><num>(a)</num><content><p>in subsection (1), after “section 13A” there shall be inserted “section 13AA”; and</p></content></level><level class="para1" eId="section-5-5-b"><num>(b)</num><content><p>in subsection (2), after “section 12” there shall be inserted “or section 13AA”.</p></content></level></subsection><subsection eId="section-5-6"><num>(6)</num><intro><p>This section shall have effect in relation to cases where kerosene is—</p></intro><level class="para1" eId="section-5-6-a"><num>(a)</num><content><p>used as fuel, or</p></content></level><level class="para1" eId="section-5-6-b"><num>(b)</num><content><p>taken into a fuel supply,</p></content></level><wrapUp><p>on or after such day as the Commissioners of Customs and Excise may by order made by statutory instrument appoint.</p></wrapUp></subsection></section><section eId="section-6"><num>6</num><heading>Mixing of rebated oil</heading><subsection eId="section-6-1"><num>(1)</num><content><p>The <noteRef href="#m00007" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Hydrocarbon Oil Duties Act 1979 shall be amended as mentioned in subsections (2) to (4) below.</p></content></subsection><subsection eId="section-6-2"><num>(2)</num><content><p><mod>In section 20 (contaminated or accidentally mixed oil), after subsection (3) there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(4)</num><content><p>The power to make a payment to a person under subsection (2) above in relation to oils that have become accidentally mixed does not apply in relation to a mixture in respect of which he is liable to pay duty under section 20AAA below.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-6-3"><num>(3)</num><content><p><mod>After section 20A there shall be inserted the following sections—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>20AAA</num><heading>Mixing of rebated oil</heading><subsection><num>(1)</num><intro><p>Where—</p></intro><level class="para1"><num>(a)</num><content><p>a mixture which is leaded or unleaded petrol is produced in contravention of Part I of Schedule 2A to this Act, and</p></content></level><level class="para1"><num>(b)</num><content><p>the mixture is not produced as a result of approved mixing,</p></content></level><wrapUp><p>a duty of excise shall be charged on the mixture.</p></wrapUp></subsection><subsection><num>(2)</num><intro><p>Where—</p></intro><level class="para1"><num>(a)</num><content><p>a mixture of heavy oils is produced in contravention of Part II of Schedule 2A to this Act,</p></content></level><level class="para1"><num>(b)</num><content><p>the mixture is not produced as a result of approved mixing, and</p></content></level><level class="para1"><num>(c)</num><content><p>the mixture is supplied for use as fuel for a road vehicle or an excepted vehicle,</p></content></level><wrapUp><p>a duty of excise shall be charged on the mixture.</p></wrapUp></subsection><subsection><num>(3)</num><content><p>The person liable to pay the duty charged under subsection (1) above is the person producing the mixture.</p></content></subsection><subsection><num>(4)</num><content><p>The person liable to pay the duty charged under subsection (2) above is the person supplying the mixture.</p></content></subsection><subsection><num>(5)</num><intro><p>The Commissioners may exempt a person from liability to pay duty charged under this section in respect of the production or supply of a mixture if they are satisfied—</p></intro><level class="para1"><num>(a)</num><content><p>that the mixture has been produced or (as the case may be) supplied accidentally; and</p></content></level><level class="para1"><num>(b)</num><content><p>that, having regard to all the circumstances, the person should be exempted from liability to pay the duty.</p></content></level></subsection><subsection><num>(6)</num><content><p>Part III of Schedule 2A to this Act makes provision with respect to rates and amounts of duty charged under this section.</p></content></subsection><subsection><num>(7)</num><intro><p>In this section—</p></intro><hcontainer name="definition"><content><p>“approved mixing” has the meaning given by section 20A(5) above; and</p></content></hcontainer><hcontainer name="definition"><content><p>“excepted vehicle” means a vehicle which is an excepted vehicle under any provision of Schedule 1 to this Act.</p></content></hcontainer></subsection></section><section><num>20AAB</num><heading>Mixing of rebated oil: supplementary</heading><subsection><num>(1)</num><intro><p>A person who—</p></intro><level class="para1"><num>(a)</num><content><p>produces a mixture on which duty is charged under section 20AAA(1) above, or</p></content></level><level class="para1"><num>(b)</num><content><p>supplies a mixture on which duty is charged under section 20AAA(2) above,</p></content></level><wrapUp><p>must notify the Commissioners that he has done so within the period of seven days beginning with the date on which he produced or (as the case may be) supplied the mixture.</p></wrapUp></subsection><subsection><num>(2)</num><content><p>A person is not required to give a notification under subsection (1) above if, before he produced or (as the case may be) supplied the mixture, he notified the Commissioners that he proposed to do so.</p></content></subsection><subsection><num>(3)</num><content><p>Notification under subsection (1) or (2) above must be given in such form and in such manner, and must contain such particulars, as the Commissioners may direct.</p></content></subsection><subsection><num>(4)</num><intro><p>Subject to subsection (7) below, where it appears to the Commissioners—</p></intro><level class="para1"><num>(a)</num><content><p>that a person has produced or supplied a mixture on which duty is charged under section 20AAA above, and</p></content></level><level class="para1"><num>(b)</num><content><p>that he is the person liable to pay the duty,</p></content></level><wrapUp><p>they may assess the amount of duty due from him to the best of their judgement and notify that amount to him or his representative.</p></wrapUp></subsection><subsection><num>(5)</num><content><p>An assessment under subsection (4) above shall be treated as if it were an assessment under section 12(1) of the <noteRef href="#m00008" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1994.</p></content></subsection><subsection><num>(6)</num><intro><p>The Commissioners may give a direction that a person who is, or expects to be, liable to pay duty charged under section 20AAA above—</p></intro><level class="para1"><num>(a)</num><content><p>shall account for duty charged under that section by reference to such periods (“accounting periods”) as may be determined by or under the direction;</p></content></level><level class="para1"><num>(b)</num><content><p>shall make, in relation to accounting periods, returns in such form and at such times and containing such particulars as may be so determined;</p></content></level><level class="para1"><num>(c)</num><content><p>shall pay duty charged under that section at such times and in such manner as may be so determined.</p></content></level></subsection><subsection><num>(7)</num><content><p>The power to make an assessment under subsection (4) above does not apply in relation to a person who is for the time being subject to a direction under subsection (6) above.</p></content></subsection><subsection><num>(8)</num><intro><p>Where any person—</p></intro><level class="para1"><num>(a)</num><content><p>fails to give a notification which he is required to give under subsection (1) above, or</p></content></level><level class="para1"><num>(b)</num><content><p>fails to comply with a direction under subsection (6) above,</p></content></level><wrapUp><p>his failure shall attract a penalty under section 9 of the <noteRef href="#m00009" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1994 (civil penalties).</p></wrapUp></subsection></section></quotedStructure></mod></p></content></subsection><subsection eId="section-6-4"><num>(4)</num><content><p>After Schedule 2 there shall be inserted the Schedule set out in Schedule 1 to this Act.</p></content></subsection><subsection eId="section-6-5"><num>(5)</num><intro><p>This section and Schedule 1 to this Act shall have effect in relation to—</p></intro><level class="para1" eId="section-6-5-a"><num>(a)</num><content><p>the production on or after the appointed day of a mixture which is leaded or unleaded petrol; and</p></content></level><level class="para1" eId="section-6-5-b"><num>(b)</num><content><p>the supply on or after the appointed day of a mixture of heavy oils;</p></content></level><wrapUp><p>and “the appointed day” here means such day as the Commissioners of Customs and Excise may by order made by statutory instrument appoint.</p></wrapUp></subsection></section><section eId="section-7"><num>7</num><heading>Marked oil used as fuel for road vehicles</heading><subsection eId="section-7-1"><num>(1)</num><content><p><mod>After section 24 of the <noteRef href="#m00010" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Hydrocarbon Oil Duties Act 1979 (control of use of duty free and rebated oil) there shall be inserted the following section—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>24A</num><heading>Penalties for misuse of marked oil</heading><subsection><num>(1)</num><content><p>Marked oil shall not be used as fuel for a road vehicle.</p></content></subsection><subsection><num>(2)</num><content><p>For the purposes of this section marked oil is any hydrocarbon oil in which a marker is present which is for the time being designated by regulations made by the Commissioners under subsection (3) below.</p></content></subsection><subsection><num>(3)</num><content><p>The Commissioners may for the purposes of this section designate any marker which appears to them to be used for the purposes of the law of any place (whether within or outside the United Kingdom) for identifying hydrocarbon oil that is not to be used as fuel for road vehicles, or for road vehicles of a particular description.</p></content></subsection><subsection><num>(4)</num><content><p>For the purposes of this section marked oil shall be taken to be used as fuel for a road vehicle if, but only if, it is used as fuel for the engine provided for propelling the vehicle or for an engine which draws its fuel from the same supply as that engine.</p></content></subsection><subsection><num>(5)</num><content><p>Where a person uses any hydrocarbon oil in contravention of subsection (1) above, his use of the oil shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties).</p></content></subsection><subsection><num>(6)</num><intro><p>If a person who uses any marked oil in contravention of subsection (1) above does so in the knowledge that the oil he is using is marked oil, he shall be guilty of an offence and liable—</p></intro><level class="para1"><num>(a)</num><content><p>on summary conviction, to a penalty of the statutory maximum, or to imprisonment for a term not exceeding 6 months, or to both;</p></content></level><level class="para1"><num>(b)</num><content><p>on conviction on indictment, to a penalty of any amount, or to a term of imprisonment not exceeding 7 years, or to both.</p></content></level></subsection><subsection><num>(7)</num><content><p>Any marked oil which is in a road vehicle as part of the fuel supply for the engine which propels the vehicle shall be liable to forfeiture.</p></content></subsection><subsection><num>(8)</num><intro><p>Where in any proceedings relating to this section a question arises as to the nature of any substance present at any time in any hydrocarbon oil—</p></intro><level class="para1"><num>(a)</num><content><p>a certificate of the Commissioners to the effect that that substance is or was a marker designated for the purposes of this section shall be sufficient, unless the contrary is shown, for establishing that fact; and</p></content></level><level class="para1"><num>(b)</num><content><p>any document purporting to be such a certificate shall be taken to be one unless it is shown not to be.</p></content></level></subsection></section></quotedStructure></mod></p></content></subsection><subsection eId="section-7-2"><num>(2)</num><content><p>In section 24(1) of that Act (purposes for which regulations may be made), for “or section 19A above” there shall be inserted “, section 19A or section 24A of this Act”.</p></content></subsection></section><section eId="section-8"><num>8</num><heading>Relief for marine voyages</heading><subsection eId="section-8-1"><num>(1)</num><intro><p>The following provisions of the <noteRef href="#m00011" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Hydrocarbon Oil Duties Act 1979 are hereby repealed—</p></intro><level class="para1" eId="section-8-1-a"><num>(a)</num><content><p>section 18 (fuel for ships in home waters), and</p></content></level><level class="para1" eId="section-8-1-b"><num>(b)</num><content><p>in subsection (1) of section 19 (fuel used in fishing boats, etc.), paragraph (a) and the words from “by the owner” to “be”.</p></content></level></subsection><subsection eId="section-8-2"><num>(2)</num><content><p>This section shall come into force on such day as the Commissioners of Customs and Excise may by order made by statutory instrument appoint.</p></content></subsection></section></hcontainer>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-4"><num>4</num><heading>Rates of duty and rebate</heading><subsection eId="section-4-1"><num>(1)</num><content><p>In section 6(1) of the <noteRef href="#m00003" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Hydrocarbon Oil Duties Act 1979, for “£0.3614” (duty on light oil) and “£0.3132” (duty on heavy oil) there shall be substituted “£0.3912” and “£0.3430”, respectively.</p></content></subsection><subsection eId="section-4-2"><num>(2)</num><content><p>In section 8(3) of that Act (duty on road fuel gas), for “£0.3314” there shall be substituted “£0.2817”.</p></content></subsection><subsection eId="section-4-3"><num>(3)</num><content><p>In section 11(1) of that Act (rebate on heavy oil), for “£0.0166” (fuel oil) and “£0.0214” (gas oil) there shall be substituted “£0.0181” and “£0.0233”, respectively.</p></content></subsection><subsection eId="section-4-4"><num>(4)</num><content><p><mod>In subsection (1) of section 13A of that Act (rebate on unleaded petrol), for “the rate of £0.0482 a litre” there shall be substituted “the rate specified in subsection (1A) below”; and after that subsection there shall be inserted the following subsections—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1A)</num><intro><p>The rate of rebate shall be—</p></intro><level class="para1"><num>(a)</num><content><p>£0.0150 a litre in the case of higher octane unleaded petrol; and</p></content></level><level class="para1"><num>(b)</num><content><p>£0.0482 a litre in any other case.</p></content></level></subsection><subsection><num>(1B)</num><intro><p>For the purposes of this section unleaded petrol is “higher octane” if—</p></intro><level class="para1"><num>(a)</num><content><p>its research octane number is not less than 96 and its motor octane number is not less than 86;</p></content></level><level class="para1"><num>(b)</num><content><p>it is delivered for home use as petrol which satisfies the condition set out in paragraph (a) above;</p></content></level><level class="para1"><num>(c)</num><content><p>it is delivered for home use as petrol which is suitable to be used as fuel for engines for which leaded petrol is suitable by virtue of being leaded; or</p></content></level><level class="para1"><num>(d)</num><intro><p>it is delivered for home use under such a description, or in such a manner, as tends, in the circumstances, to suggest that it is—</p></intro><level class="para2"><num>(i)</num><content><p>petrol satisfying the condition set out in paragraph (a) above; or</p></content></level><level class="para2"><num>(ii)</num><content><p>petrol suitable to be used as fuel for engines for which leaded petrol is suitable by virtue of being leaded.</p></content></level></level></subsection><subsection><num>(1C)</num><content><p>The method of testing unleaded petrol for ascertaining, for the purposes of this section, its research octane number or motor octane number shall be such as the Commissioners may direct.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-4-5"><num>(5)</num><content><p>In subsection (2) of that section (meaning of “unleaded”), for the words from “or, if” onwards there shall be substituted “; and petrol is “leaded” for the purposes of this section if it is not unleaded.”</p></content></subsection><subsection eId="section-4-6"><num>(6)</num><content><p>In section 14(1) of that Act (rebate on light oil for use as furnace fuel), for “£0.0166” there shall be substituted “£0.0181”.</p></content></subsection><subsection eId="section-4-7"><num>(7)</num><content><p>Subsections (1) to (3) and (6) above shall be deemed to have come into force at 6 o'clock in the evening of 28th November 1995; and subsection (4) above shall come into force on 15th May 1996.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-4-1"><num>(1)</num><content><p>In section 6(1) of the <noteRef href="#m00003" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Hydrocarbon Oil Duties Act 1979, for “£0.3614” (duty on light oil) and “£0.3132” (duty on heavy oil) there shall be substituted “£0.3912” and “£0.3430”, respectively.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-4-2"><num>(2)</num><content><p>In section 8(3) of that Act (duty on road fuel gas), for “£0.3314” there shall be substituted “£0.2817”.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-4-3"><num>(3)</num><content><p>In section 11(1) of that Act (rebate on heavy oil), for “£0.0166” (fuel oil) and “£0.0214” (gas oil) there shall be substituted “£0.0181” and “£0.0233”, respectively.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-4-4"><num>(4)</num><content><p><mod>In subsection (1) of section 13A of that Act (rebate on unleaded petrol), for “the rate of £0.0482 a litre” there shall be substituted “the rate specified in subsection (1A) below”; and after that subsection there shall be inserted the following subsections—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1A)</num><intro><p>The rate of rebate shall be—</p></intro><level class="para1"><num>(a)</num><content><p>£0.0150 a litre in the case of higher octane unleaded petrol; and</p></content></level><level class="para1"><num>(b)</num><content><p>£0.0482 a litre in any other case.</p></content></level></subsection><subsection><num>(1B)</num><intro><p>For the purposes of this section unleaded petrol is “higher octane” if—</p></intro><level class="para1"><num>(a)</num><content><p>its research octane number is not less than 96 and its motor octane number is not less than 86;</p></content></level><level class="para1"><num>(b)</num><content><p>it is delivered for home use as petrol which satisfies the condition set out in paragraph (a) above;</p></content></level><level class="para1"><num>(c)</num><content><p>it is delivered for home use as petrol which is suitable to be used as fuel for engines for which leaded petrol is suitable by virtue of being leaded; or</p></content></level><level class="para1"><num>(d)</num><intro><p>it is delivered for home use under such a description, or in such a manner, as tends, in the circumstances, to suggest that it is—</p></intro><level class="para2"><num>(i)</num><content><p>petrol satisfying the condition set out in paragraph (a) above; or</p></content></level><level class="para2"><num>(ii)</num><content><p>petrol suitable to be used as fuel for engines for which leaded petrol is suitable by virtue of being leaded.</p></content></level></level></subsection><subsection><num>(1C)</num><content><p>The method of testing unleaded petrol for ascertaining, for the purposes of this section, its research octane number or motor octane number shall be such as the Commissioners may direct.</p></content></subsection></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-4-5"><num>(5)</num><content><p>In subsection (2) of that section (meaning of “unleaded”), for the words from “or, if” onwards there shall be substituted “; and petrol is “leaded” for the purposes of this section if it is not unleaded.”</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-4-6"><num>(6)</num><content><p>In section 14(1) of that Act (rebate on light oil for use as furnace fuel), for “£0.0166” there shall be substituted “£0.0181”.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-4-7"><num>(7)</num><content><p>Subsections (1) to (3) and (6) above shall be deemed to have come into force at 6 o'clock in the evening of 28th November 1995; and subsection (4) above shall come into force on 15th May 1996.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-5"><num>5</num><heading>Misuse of rebated kerosene</heading><subsection eId="section-5-1"><num>(1)</num><content><p>The <noteRef href="#m00004" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Hydrocarbon Oil Duties Act 1979 shall be amended as mentioned in subsections (2) to (5) below.</p></content></subsection><subsection eId="section-5-2"><num>(2)</num><content><p>In section 11(1) (rebate on heavy oil), for “and 13” there shall be substituted “13, 13AA and 13AB”.</p></content></subsection><subsection eId="section-5-3"><num>(3)</num><content><p>In section 12(2) (restriction on use of rebated heavy oil for road vehicles), after “allowed” there shall be inserted “(whether under section 11(1) above or 13AA(1) below)”.</p></content></subsection><subsection eId="section-5-4"><num>(4)</num><content><p><mod>After section 13 there shall be inserted the following sections—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>13AA</num><heading>Restrictions on use of rebated kerosene</heading><subsection><num>(1)</num><intro><p>If, on the delivery of kerosene for home use, it is intended to use the kerosene as fuel for—</p></intro><level class="para1"><num>(a)</num><content><p>an engine provided for propelling an excepted vehicle, or</p></content></level><level class="para1"><num>(b)</num><content><p>an engine which is used neither for propelling a vehicle nor for heating,</p></content></level><wrapUp><p>a declaration shall be made to that effect and thereupon rebate shall be allowed at the rate for rebated gas oil which is then in force, instead of at the rate then in force under section 11(1)(c) above.</p></wrapUp></subsection><subsection><num>(2)</num><intro><p>Subject to subsection (3) below, no kerosene on whose delivery for home use a rebate at the rate given by section 11(1)(c) above has been allowed shall—</p></intro><level class="para1"><num>(a)</num><content><p>be used as fuel for an engine provided for propelling an excepted vehicle;</p></content></level><level class="para1"><num>(b)</num><content><p>be used as fuel for an engine which is used neither for propelling a vehicle nor for heating; or</p></content></level><level class="para1"><num>(c)</num><content><p>be taken into the fuel supply of an engine falling within paragraph (a) or (b) above.</p></content></level></subsection><subsection><num>(3)</num><content><p>Subsection (2) above does not apply to any quantity of kerosene in respect of which there has been paid to the Commissioners an amount equal to duty on the same quantity of gas oil at the rate for rebated gas oil which is in force at the time of the payment.</p></content></subsection><subsection><num>(4)</num><content><p>A payment under subsection (3) above shall be made in accordance with regulations made under section 24(1) below for the purposes of this section.</p></content></subsection><subsection><num>(5)</num><intro><p>For the purposes of this section and section 13AB below—</p></intro><hcontainer name="definition"><content><p>“excepted vehicle” means a vehicle which is an excepted vehicle under any provision of Schedule 1 to this Act; and</p></content></hcontainer><hcontainer name="definition"><content><p>“kerosene” means heavy oil of which more than 50 per cent. by volume distils at a temperature of 240°C or less.</p></content></hcontainer></subsection><subsection><num>(6)</num><content><p>For the purposes of this section and section 13AB below the rate for rebated gas oil which is in force at any time is the rate of duty which at that time is in force under section 6(1) above in the case of heavy oil as reduced by the rate of rebate allowable at that time under section 11(1)(b) above.</p></content></subsection></section><section><num>13AB</num><heading>Penalties for misuse of kerosene</heading><subsection><num>(1)</num><intro><p>If a person uses kerosene in contravention of section 13AA(2) above—</p></intro><level class="para1"><num>(a)</num><content><p>the Commissioners may recover from him, in respect of the quantity of kerosene used, an amount equal to duty on the same quantity of gas oil at the rate for rebated gas oil which is in force at the time of the contravention;</p></content></level><level class="para1"><num>(b)</num><content><p>his use of the kerosene shall attract a penalty under section 9 of the <noteRef href="#m00005" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1994 (civil penalties); and</p></content></level><level class="para1"><num>(c)</num><content><p>if he uses the kerosene with the relevant intent, he shall be guilty of an offence.</p></content></level></subsection><subsection><num>(2)</num><intro><p>If a person is liable for kerosene being taken into a fuel supply of an engine in contravention of section 13AA(2) above—</p></intro><level class="para1"><num>(a)</num><content><p>the Commissioners may recover from him, in respect of the quantity of kerosene taken into the fuel supply, an amount equal to duty on the same quantity of gas oil at the rate for rebated gas oil which is in force at the time of the contravention;</p></content></level><level class="para1"><num>(b)</num><content><p>his becoming so liable shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties); and</p></content></level><level class="para1"><num>(c)</num><content><p>if he has the relevant intent in relation to the kerosene being taken into the fuel supply, he shall be guilty of an offence.</p></content></level></subsection><subsection><num>(3)</num><intro><p>For the purposes of subsection (2) above, a person is liable for kerosene being taken into a fuel supply of an engine if at the time—</p></intro><level class="para1"><num>(a)</num><content><p>he has the charge of the engine; or</p></content></level><level class="para1"><num>(b)</num><content><p>subject to subsection (4) below, he is the owner of the engine.</p></content></level></subsection><subsection><num>(4)</num><content><p>If a person other than the owner is for the time being entitled to possession of the engine, that other person and not the owner is liable.</p></content></subsection><subsection><num>(5)</num><intro><p>If—</p></intro><level class="para1"><num>(a)</num><content><p>a person supplies kerosene having reason to believe that it will be put to a particular use, and</p></content></level><level class="para1"><num>(b)</num><content><p>that use is one which, if a payment is not made under subsection (3) of section 13AA above, will contravene subsection (2) of that section,</p></content></level><wrapUp><p>his supplying the kerosene shall attract a penalty under section 9 of the <noteRef href="#m00006" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1994 (civil penalties) and, if he makes the supply with the relevant intent, he shall be guilty of an offence.</p></wrapUp></subsection><subsection><num>(6)</num><content><p>In this section “the relevant intent” means the intent that the restrictions imposed by section 13AA(2) above shall be contravened.</p></content></subsection><subsection><num>(7)</num><intro><p>A person guilty of an offence under this section shall be liable—</p></intro><level class="para1"><num>(a)</num><content><p>on summary conviction, to a penalty of the statutory maximum, or to imprisonment for a term not exceeding 6 months, or to both;</p></content></level><level class="para1"><num>(b)</num><content><p>on conviction on indictment, to a penalty of any amount, or to a term of imprisonment not exceeding 7 years, or to both.</p></content></level></subsection><subsection><num>(8)</num><content><p>Any kerosene falling within subsection (9) or (10) below is liable to forfeiture.</p></content></subsection><subsection><num>(9)</num><content><p>Kerosene falls within this subsection if it is taken into a fuel supply in contravention of section 13AA(2) above.</p></content></subsection><subsection><num>(10)</num><intro><p>Kerosene falls within this subsection if—</p></intro><level class="para1"><num>(a)</num><content><p>it has been supplied in circumstances in which there is reason to believe that it will be put to a particular use; and</p></content></level><level class="para1"><num>(b)</num><content><p>that use is one which, if payment is not made under subsection (3) of section 13AA above, will contravene subsection (2) of that section.</p></content></level></subsection></section></quotedStructure></mod></p></content></subsection><subsection eId="section-5-5"><num>(5)</num><intro><p>In section 24 (control of use of duty-free and rebated oil)—</p></intro><level class="para1" eId="section-5-5-a"><num>(a)</num><content><p>in subsection (1), after “section 13A” there shall be inserted “section 13AA”; and</p></content></level><level class="para1" eId="section-5-5-b"><num>(b)</num><content><p>in subsection (2), after “section 12” there shall be inserted “or section 13AA”.</p></content></level></subsection><subsection eId="section-5-6"><num>(6)</num><intro><p>This section shall have effect in relation to cases where kerosene is—</p></intro><level class="para1" eId="section-5-6-a"><num>(a)</num><content><p>used as fuel, or</p></content></level><level class="para1" eId="section-5-6-b"><num>(b)</num><content><p>taken into a fuel supply,</p></content></level><wrapUp><p>on or after such day as the Commissioners of Customs and Excise may by order made by statutory instrument appoint.</p></wrapUp></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-5-1"><num>(1)</num><content><p>The <noteRef href="#m00004" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Hydrocarbon Oil Duties Act 1979 shall be amended as mentioned in subsections (2) to (5) below.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-5-2"><num>(2)</num><content><p>In section 11(1) (rebate on heavy oil), for “and 13” there shall be substituted “13, 13AA and 13AB”.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-5-3"><num>(3)</num><content><p>In section 12(2) (restriction on use of rebated heavy oil for road vehicles), after “allowed” there shall be inserted “(whether under section 11(1) above or 13AA(1) below)”.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-5-4"><num>(4)</num><content><p><mod>After section 13 there shall be inserted the following sections—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>13AA</num><heading>Restrictions on use of rebated kerosene</heading><subsection><num>(1)</num><intro><p>If, on the delivery of kerosene for home use, it is intended to use the kerosene as fuel for—</p></intro><level class="para1"><num>(a)</num><content><p>an engine provided for propelling an excepted vehicle, or</p></content></level><level class="para1"><num>(b)</num><content><p>an engine which is used neither for propelling a vehicle nor for heating,</p></content></level><wrapUp><p>a declaration shall be made to that effect and thereupon rebate shall be allowed at the rate for rebated gas oil which is then in force, instead of at the rate then in force under section 11(1)(c) above.</p></wrapUp></subsection><subsection><num>(2)</num><intro><p>Subject to subsection (3) below, no kerosene on whose delivery for home use a rebate at the rate given by section 11(1)(c) above has been allowed shall—</p></intro><level class="para1"><num>(a)</num><content><p>be used as fuel for an engine provided for propelling an excepted vehicle;</p></content></level><level class="para1"><num>(b)</num><content><p>be used as fuel for an engine which is used neither for propelling a vehicle nor for heating; or</p></content></level><level class="para1"><num>(c)</num><content><p>be taken into the fuel supply of an engine falling within paragraph (a) or (b) above.</p></content></level></subsection><subsection><num>(3)</num><content><p>Subsection (2) above does not apply to any quantity of kerosene in respect of which there has been paid to the Commissioners an amount equal to duty on the same quantity of gas oil at the rate for rebated gas oil which is in force at the time of the payment.</p></content></subsection><subsection><num>(4)</num><content><p>A payment under subsection (3) above shall be made in accordance with regulations made under section 24(1) below for the purposes of this section.</p></content></subsection><subsection><num>(5)</num><intro><p>For the purposes of this section and section 13AB below—</p></intro><hcontainer name="definition"><content><p>“excepted vehicle” means a vehicle which is an excepted vehicle under any provision of Schedule 1 to this Act; and</p></content></hcontainer><hcontainer name="definition"><content><p>“kerosene” means heavy oil of which more than 50 per cent. by volume distils at a temperature of 240°C or less.</p></content></hcontainer></subsection><subsection><num>(6)</num><content><p>For the purposes of this section and section 13AB below the rate for rebated gas oil which is in force at any time is the rate of duty which at that time is in force under section 6(1) above in the case of heavy oil as reduced by the rate of rebate allowable at that time under section 11(1)(b) above.</p></content></subsection></section><section><num>13AB</num><heading>Penalties for misuse of kerosene</heading><subsection><num>(1)</num><intro><p>If a person uses kerosene in contravention of section 13AA(2) above—</p></intro><level class="para1"><num>(a)</num><content><p>the Commissioners may recover from him, in respect of the quantity of kerosene used, an amount equal to duty on the same quantity of gas oil at the rate for rebated gas oil which is in force at the time of the contravention;</p></content></level><level class="para1"><num>(b)</num><content><p>his use of the kerosene shall attract a penalty under section 9 of the <noteRef href="#m00005" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1994 (civil penalties); and</p></content></level><level class="para1"><num>(c)</num><content><p>if he uses the kerosene with the relevant intent, he shall be guilty of an offence.</p></content></level></subsection><subsection><num>(2)</num><intro><p>If a person is liable for kerosene being taken into a fuel supply of an engine in contravention of section 13AA(2) above—</p></intro><level class="para1"><num>(a)</num><content><p>the Commissioners may recover from him, in respect of the quantity of kerosene taken into the fuel supply, an amount equal to duty on the same quantity of gas oil at the rate for rebated gas oil which is in force at the time of the contravention;</p></content></level><level class="para1"><num>(b)</num><content><p>his becoming so liable shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties); and</p></content></level><level class="para1"><num>(c)</num><content><p>if he has the relevant intent in relation to the kerosene being taken into the fuel supply, he shall be guilty of an offence.</p></content></level></subsection><subsection><num>(3)</num><intro><p>For the purposes of subsection (2) above, a person is liable for kerosene being taken into a fuel supply of an engine if at the time—</p></intro><level class="para1"><num>(a)</num><content><p>he has the charge of the engine; or</p></content></level><level class="para1"><num>(b)</num><content><p>subject to subsection (4) below, he is the owner of the engine.</p></content></level></subsection><subsection><num>(4)</num><content><p>If a person other than the owner is for the time being entitled to possession of the engine, that other person and not the owner is liable.</p></content></subsection><subsection><num>(5)</num><intro><p>If—</p></intro><level class="para1"><num>(a)</num><content><p>a person supplies kerosene having reason to believe that it will be put to a particular use, and</p></content></level><level class="para1"><num>(b)</num><content><p>that use is one which, if a payment is not made under subsection (3) of section 13AA above, will contravene subsection (2) of that section,</p></content></level><wrapUp><p>his supplying the kerosene shall attract a penalty under section 9 of the <noteRef href="#m00006" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1994 (civil penalties) and, if he makes the supply with the relevant intent, he shall be guilty of an offence.</p></wrapUp></subsection><subsection><num>(6)</num><content><p>In this section “the relevant intent” means the intent that the restrictions imposed by section 13AA(2) above shall be contravened.</p></content></subsection><subsection><num>(7)</num><intro><p>A person guilty of an offence under this section shall be liable—</p></intro><level class="para1"><num>(a)</num><content><p>on summary conviction, to a penalty of the statutory maximum, or to imprisonment for a term not exceeding 6 months, or to both;</p></content></level><level class="para1"><num>(b)</num><content><p>on conviction on indictment, to a penalty of any amount, or to a term of imprisonment not exceeding 7 years, or to both.</p></content></level></subsection><subsection><num>(8)</num><content><p>Any kerosene falling within subsection (9) or (10) below is liable to forfeiture.</p></content></subsection><subsection><num>(9)</num><content><p>Kerosene falls within this subsection if it is taken into a fuel supply in contravention of section 13AA(2) above.</p></content></subsection><subsection><num>(10)</num><intro><p>Kerosene falls within this subsection if—</p></intro><level class="para1"><num>(a)</num><content><p>it has been supplied in circumstances in which there is reason to believe that it will be put to a particular use; and</p></content></level><level class="para1"><num>(b)</num><content><p>that use is one which, if payment is not made under subsection (3) of section 13AA above, will contravene subsection (2) of that section.</p></content></level></subsection></section></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-5-5"><num>(5)</num><intro><p>In section 24 (control of use of duty-free and rebated oil)—</p></intro><level class="para1" eId="section-5-5-a"><num>(a)</num><content><p>in subsection (1), after “section 13A” there shall be inserted “section 13AA”; and</p></content></level><level class="para1" eId="section-5-5-b"><num>(b)</num><content><p>in subsection (2), after “section 12” there shall be inserted “or section 13AA”.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-5-5-a"><num>(a)</num><content><p>in subsection (1), after “section 13A” there shall be inserted “section 13AA”; and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-5-5-b"><num>(b)</num><content><p>in subsection (2), after “section 12” there shall be inserted “or section 13AA”.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-5-6"><num>(6)</num><intro><p>This section shall have effect in relation to cases where kerosene is—</p></intro><level class="para1" eId="section-5-6-a"><num>(a)</num><content><p>used as fuel, or</p></content></level><level class="para1" eId="section-5-6-b"><num>(b)</num><content><p>taken into a fuel supply,</p></content></level><wrapUp><p>on or after such day as the Commissioners of Customs and Excise may by order made by statutory instrument appoint.</p></wrapUp></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-5-6-a"><num>(a)</num><content><p>used as fuel, or</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-5-6-b"><num>(b)</num><content><p>taken into a fuel supply,</p></content></level>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-6"><num>6</num><heading>Mixing of rebated oil</heading><subsection eId="section-6-1"><num>(1)</num><content><p>The <noteRef href="#m00007" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Hydrocarbon Oil Duties Act 1979 shall be amended as mentioned in subsections (2) to (4) below.</p></content></subsection><subsection eId="section-6-2"><num>(2)</num><content><p><mod>In section 20 (contaminated or accidentally mixed oil), after subsection (3) there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(4)</num><content><p>The power to make a payment to a person under subsection (2) above in relation to oils that have become accidentally mixed does not apply in relation to a mixture in respect of which he is liable to pay duty under section 20AAA below.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-6-3"><num>(3)</num><content><p><mod>After section 20A there shall be inserted the following sections—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>20AAA</num><heading>Mixing of rebated oil</heading><subsection><num>(1)</num><intro><p>Where—</p></intro><level class="para1"><num>(a)</num><content><p>a mixture which is leaded or unleaded petrol is produced in contravention of Part I of Schedule 2A to this Act, and</p></content></level><level class="para1"><num>(b)</num><content><p>the mixture is not produced as a result of approved mixing,</p></content></level><wrapUp><p>a duty of excise shall be charged on the mixture.</p></wrapUp></subsection><subsection><num>(2)</num><intro><p>Where—</p></intro><level class="para1"><num>(a)</num><content><p>a mixture of heavy oils is produced in contravention of Part II of Schedule 2A to this Act,</p></content></level><level class="para1"><num>(b)</num><content><p>the mixture is not produced as a result of approved mixing, and</p></content></level><level class="para1"><num>(c)</num><content><p>the mixture is supplied for use as fuel for a road vehicle or an excepted vehicle,</p></content></level><wrapUp><p>a duty of excise shall be charged on the mixture.</p></wrapUp></subsection><subsection><num>(3)</num><content><p>The person liable to pay the duty charged under subsection (1) above is the person producing the mixture.</p></content></subsection><subsection><num>(4)</num><content><p>The person liable to pay the duty charged under subsection (2) above is the person supplying the mixture.</p></content></subsection><subsection><num>(5)</num><intro><p>The Commissioners may exempt a person from liability to pay duty charged under this section in respect of the production or supply of a mixture if they are satisfied—</p></intro><level class="para1"><num>(a)</num><content><p>that the mixture has been produced or (as the case may be) supplied accidentally; and</p></content></level><level class="para1"><num>(b)</num><content><p>that, having regard to all the circumstances, the person should be exempted from liability to pay the duty.</p></content></level></subsection><subsection><num>(6)</num><content><p>Part III of Schedule 2A to this Act makes provision with respect to rates and amounts of duty charged under this section.</p></content></subsection><subsection><num>(7)</num><intro><p>In this section—</p></intro><hcontainer name="definition"><content><p>“approved mixing” has the meaning given by section 20A(5) above; and</p></content></hcontainer><hcontainer name="definition"><content><p>“excepted vehicle” means a vehicle which is an excepted vehicle under any provision of Schedule 1 to this Act.</p></content></hcontainer></subsection></section><section><num>20AAB</num><heading>Mixing of rebated oil: supplementary</heading><subsection><num>(1)</num><intro><p>A person who—</p></intro><level class="para1"><num>(a)</num><content><p>produces a mixture on which duty is charged under section 20AAA(1) above, or</p></content></level><level class="para1"><num>(b)</num><content><p>supplies a mixture on which duty is charged under section 20AAA(2) above,</p></content></level><wrapUp><p>must notify the Commissioners that he has done so within the period of seven days beginning with the date on which he produced or (as the case may be) supplied the mixture.</p></wrapUp></subsection><subsection><num>(2)</num><content><p>A person is not required to give a notification under subsection (1) above if, before he produced or (as the case may be) supplied the mixture, he notified the Commissioners that he proposed to do so.</p></content></subsection><subsection><num>(3)</num><content><p>Notification under subsection (1) or (2) above must be given in such form and in such manner, and must contain such particulars, as the Commissioners may direct.</p></content></subsection><subsection><num>(4)</num><intro><p>Subject to subsection (7) below, where it appears to the Commissioners—</p></intro><level class="para1"><num>(a)</num><content><p>that a person has produced or supplied a mixture on which duty is charged under section 20AAA above, and</p></content></level><level class="para1"><num>(b)</num><content><p>that he is the person liable to pay the duty,</p></content></level><wrapUp><p>they may assess the amount of duty due from him to the best of their judgement and notify that amount to him or his representative.</p></wrapUp></subsection><subsection><num>(5)</num><content><p>An assessment under subsection (4) above shall be treated as if it were an assessment under section 12(1) of the <noteRef href="#m00008" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1994.</p></content></subsection><subsection><num>(6)</num><intro><p>The Commissioners may give a direction that a person who is, or expects to be, liable to pay duty charged under section 20AAA above—</p></intro><level class="para1"><num>(a)</num><content><p>shall account for duty charged under that section by reference to such periods (“accounting periods”) as may be determined by or under the direction;</p></content></level><level class="para1"><num>(b)</num><content><p>shall make, in relation to accounting periods, returns in such form and at such times and containing such particulars as may be so determined;</p></content></level><level class="para1"><num>(c)</num><content><p>shall pay duty charged under that section at such times and in such manner as may be so determined.</p></content></level></subsection><subsection><num>(7)</num><content><p>The power to make an assessment under subsection (4) above does not apply in relation to a person who is for the time being subject to a direction under subsection (6) above.</p></content></subsection><subsection><num>(8)</num><intro><p>Where any person—</p></intro><level class="para1"><num>(a)</num><content><p>fails to give a notification which he is required to give under subsection (1) above, or</p></content></level><level class="para1"><num>(b)</num><content><p>fails to comply with a direction under subsection (6) above,</p></content></level><wrapUp><p>his failure shall attract a penalty under section 9 of the <noteRef href="#m00009" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1994 (civil penalties).</p></wrapUp></subsection></section></quotedStructure></mod></p></content></subsection><subsection eId="section-6-4"><num>(4)</num><content><p>After Schedule 2 there shall be inserted the Schedule set out in Schedule 1 to this Act.</p></content></subsection><subsection eId="section-6-5"><num>(5)</num><intro><p>This section and Schedule 1 to this Act shall have effect in relation to—</p></intro><level class="para1" eId="section-6-5-a"><num>(a)</num><content><p>the production on or after the appointed day of a mixture which is leaded or unleaded petrol; and</p></content></level><level class="para1" eId="section-6-5-b"><num>(b)</num><content><p>the supply on or after the appointed day of a mixture of heavy oils;</p></content></level><wrapUp><p>and “the appointed day” here means such day as the Commissioners of Customs and Excise may by order made by statutory instrument appoint.</p></wrapUp></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-6-1"><num>(1)</num><content><p>The <noteRef href="#m00007" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Hydrocarbon Oil Duties Act 1979 shall be amended as mentioned in subsections (2) to (4) below.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-6-2"><num>(2)</num><content><p><mod>In section 20 (contaminated or accidentally mixed oil), after subsection (3) there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(4)</num><content><p>The power to make a payment to a person under subsection (2) above in relation to oils that have become accidentally mixed does not apply in relation to a mixture in respect of which he is liable to pay duty under section 20AAA below.</p></content></subsection></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-6-3"><num>(3)</num><content><p><mod>After section 20A there shall be inserted the following sections—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>20AAA</num><heading>Mixing of rebated oil</heading><subsection><num>(1)</num><intro><p>Where—</p></intro><level class="para1"><num>(a)</num><content><p>a mixture which is leaded or unleaded petrol is produced in contravention of Part I of Schedule 2A to this Act, and</p></content></level><level class="para1"><num>(b)</num><content><p>the mixture is not produced as a result of approved mixing,</p></content></level><wrapUp><p>a duty of excise shall be charged on the mixture.</p></wrapUp></subsection><subsection><num>(2)</num><intro><p>Where—</p></intro><level class="para1"><num>(a)</num><content><p>a mixture of heavy oils is produced in contravention of Part II of Schedule 2A to this Act,</p></content></level><level class="para1"><num>(b)</num><content><p>the mixture is not produced as a result of approved mixing, and</p></content></level><level class="para1"><num>(c)</num><content><p>the mixture is supplied for use as fuel for a road vehicle or an excepted vehicle,</p></content></level><wrapUp><p>a duty of excise shall be charged on the mixture.</p></wrapUp></subsection><subsection><num>(3)</num><content><p>The person liable to pay the duty charged under subsection (1) above is the person producing the mixture.</p></content></subsection><subsection><num>(4)</num><content><p>The person liable to pay the duty charged under subsection (2) above is the person supplying the mixture.</p></content></subsection><subsection><num>(5)</num><intro><p>The Commissioners may exempt a person from liability to pay duty charged under this section in respect of the production or supply of a mixture if they are satisfied—</p></intro><level class="para1"><num>(a)</num><content><p>that the mixture has been produced or (as the case may be) supplied accidentally; and</p></content></level><level class="para1"><num>(b)</num><content><p>that, having regard to all the circumstances, the person should be exempted from liability to pay the duty.</p></content></level></subsection><subsection><num>(6)</num><content><p>Part III of Schedule 2A to this Act makes provision with respect to rates and amounts of duty charged under this section.</p></content></subsection><subsection><num>(7)</num><intro><p>In this section—</p></intro><hcontainer name="definition"><content><p>“approved mixing” has the meaning given by section 20A(5) above; and</p></content></hcontainer><hcontainer name="definition"><content><p>“excepted vehicle” means a vehicle which is an excepted vehicle under any provision of Schedule 1 to this Act.</p></content></hcontainer></subsection></section><section><num>20AAB</num><heading>Mixing of rebated oil: supplementary</heading><subsection><num>(1)</num><intro><p>A person who—</p></intro><level class="para1"><num>(a)</num><content><p>produces a mixture on which duty is charged under section 20AAA(1) above, or</p></content></level><level class="para1"><num>(b)</num><content><p>supplies a mixture on which duty is charged under section 20AAA(2) above,</p></content></level><wrapUp><p>must notify the Commissioners that he has done so within the period of seven days beginning with the date on which he produced or (as the case may be) supplied the mixture.</p></wrapUp></subsection><subsection><num>(2)</num><content><p>A person is not required to give a notification under subsection (1) above if, before he produced or (as the case may be) supplied the mixture, he notified the Commissioners that he proposed to do so.</p></content></subsection><subsection><num>(3)</num><content><p>Notification under subsection (1) or (2) above must be given in such form and in such manner, and must contain such particulars, as the Commissioners may direct.</p></content></subsection><subsection><num>(4)</num><intro><p>Subject to subsection (7) below, where it appears to the Commissioners—</p></intro><level class="para1"><num>(a)</num><content><p>that a person has produced or supplied a mixture on which duty is charged under section 20AAA above, and</p></content></level><level class="para1"><num>(b)</num><content><p>that he is the person liable to pay the duty,</p></content></level><wrapUp><p>they may assess the amount of duty due from him to the best of their judgement and notify that amount to him or his representative.</p></wrapUp></subsection><subsection><num>(5)</num><content><p>An assessment under subsection (4) above shall be treated as if it were an assessment under section 12(1) of the <noteRef href="#m00008" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1994.</p></content></subsection><subsection><num>(6)</num><intro><p>The Commissioners may give a direction that a person who is, or expects to be, liable to pay duty charged under section 20AAA above—</p></intro><level class="para1"><num>(a)</num><content><p>shall account for duty charged under that section by reference to such periods (“accounting periods”) as may be determined by or under the direction;</p></content></level><level class="para1"><num>(b)</num><content><p>shall make, in relation to accounting periods, returns in such form and at such times and containing such particulars as may be so determined;</p></content></level><level class="para1"><num>(c)</num><content><p>shall pay duty charged under that section at such times and in such manner as may be so determined.</p></content></level></subsection><subsection><num>(7)</num><content><p>The power to make an assessment under subsection (4) above does not apply in relation to a person who is for the time being subject to a direction under subsection (6) above.</p></content></subsection><subsection><num>(8)</num><intro><p>Where any person—</p></intro><level class="para1"><num>(a)</num><content><p>fails to give a notification which he is required to give under subsection (1) above, or</p></content></level><level class="para1"><num>(b)</num><content><p>fails to comply with a direction under subsection (6) above,</p></content></level><wrapUp><p>his failure shall attract a penalty under section 9 of the <noteRef href="#m00009" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1994 (civil penalties).</p></wrapUp></subsection></section></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-6-4"><num>(4)</num><content><p>After Schedule 2 there shall be inserted the Schedule set out in Schedule 1 to this Act.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-6-5"><num>(5)</num><intro><p>This section and Schedule 1 to this Act shall have effect in relation to—</p></intro><level class="para1" eId="section-6-5-a"><num>(a)</num><content><p>the production on or after the appointed day of a mixture which is leaded or unleaded petrol; and</p></content></level><level class="para1" eId="section-6-5-b"><num>(b)</num><content><p>the supply on or after the appointed day of a mixture of heavy oils;</p></content></level><wrapUp><p>and “the appointed day” here means such day as the Commissioners of Customs and Excise may by order made by statutory instrument appoint.</p></wrapUp></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-6-5-a"><num>(a)</num><content><p>the production on or after the appointed day of a mixture which is leaded or unleaded petrol; and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-6-5-b"><num>(b)</num><content><p>the supply on or after the appointed day of a mixture of heavy oils;</p></content></level>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-7"><num>7</num><heading>Marked oil used as fuel for road vehicles</heading><subsection eId="section-7-1"><num>(1)</num><content><p><mod>After section 24 of the <noteRef href="#m00010" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Hydrocarbon Oil Duties Act 1979 (control of use of duty free and rebated oil) there shall be inserted the following section—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>24A</num><heading>Penalties for misuse of marked oil</heading><subsection><num>(1)</num><content><p>Marked oil shall not be used as fuel for a road vehicle.</p></content></subsection><subsection><num>(2)</num><content><p>For the purposes of this section marked oil is any hydrocarbon oil in which a marker is present which is for the time being designated by regulations made by the Commissioners under subsection (3) below.</p></content></subsection><subsection><num>(3)</num><content><p>The Commissioners may for the purposes of this section designate any marker which appears to them to be used for the purposes of the law of any place (whether within or outside the United Kingdom) for identifying hydrocarbon oil that is not to be used as fuel for road vehicles, or for road vehicles of a particular description.</p></content></subsection><subsection><num>(4)</num><content><p>For the purposes of this section marked oil shall be taken to be used as fuel for a road vehicle if, but only if, it is used as fuel for the engine provided for propelling the vehicle or for an engine which draws its fuel from the same supply as that engine.</p></content></subsection><subsection><num>(5)</num><content><p>Where a person uses any hydrocarbon oil in contravention of subsection (1) above, his use of the oil shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties).</p></content></subsection><subsection><num>(6)</num><intro><p>If a person who uses any marked oil in contravention of subsection (1) above does so in the knowledge that the oil he is using is marked oil, he shall be guilty of an offence and liable—</p></intro><level class="para1"><num>(a)</num><content><p>on summary conviction, to a penalty of the statutory maximum, or to imprisonment for a term not exceeding 6 months, or to both;</p></content></level><level class="para1"><num>(b)</num><content><p>on conviction on indictment, to a penalty of any amount, or to a term of imprisonment not exceeding 7 years, or to both.</p></content></level></subsection><subsection><num>(7)</num><content><p>Any marked oil which is in a road vehicle as part of the fuel supply for the engine which propels the vehicle shall be liable to forfeiture.</p></content></subsection><subsection><num>(8)</num><intro><p>Where in any proceedings relating to this section a question arises as to the nature of any substance present at any time in any hydrocarbon oil—</p></intro><level class="para1"><num>(a)</num><content><p>a certificate of the Commissioners to the effect that that substance is or was a marker designated for the purposes of this section shall be sufficient, unless the contrary is shown, for establishing that fact; and</p></content></level><level class="para1"><num>(b)</num><content><p>any document purporting to be such a certificate shall be taken to be one unless it is shown not to be.</p></content></level></subsection></section></quotedStructure></mod></p></content></subsection><subsection eId="section-7-2"><num>(2)</num><content><p>In section 24(1) of that Act (purposes for which regulations may be made), for “or section 19A above” there shall be inserted “, section 19A or section 24A of this Act”.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-7-1"><num>(1)</num><content><p><mod>After section 24 of the <noteRef href="#m00010" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Hydrocarbon Oil Duties Act 1979 (control of use of duty free and rebated oil) there shall be inserted the following section—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>24A</num><heading>Penalties for misuse of marked oil</heading><subsection><num>(1)</num><content><p>Marked oil shall not be used as fuel for a road vehicle.</p></content></subsection><subsection><num>(2)</num><content><p>For the purposes of this section marked oil is any hydrocarbon oil in which a marker is present which is for the time being designated by regulations made by the Commissioners under subsection (3) below.</p></content></subsection><subsection><num>(3)</num><content><p>The Commissioners may for the purposes of this section designate any marker which appears to them to be used for the purposes of the law of any place (whether within or outside the United Kingdom) for identifying hydrocarbon oil that is not to be used as fuel for road vehicles, or for road vehicles of a particular description.</p></content></subsection><subsection><num>(4)</num><content><p>For the purposes of this section marked oil shall be taken to be used as fuel for a road vehicle if, but only if, it is used as fuel for the engine provided for propelling the vehicle or for an engine which draws its fuel from the same supply as that engine.</p></content></subsection><subsection><num>(5)</num><content><p>Where a person uses any hydrocarbon oil in contravention of subsection (1) above, his use of the oil shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties).</p></content></subsection><subsection><num>(6)</num><intro><p>If a person who uses any marked oil in contravention of subsection (1) above does so in the knowledge that the oil he is using is marked oil, he shall be guilty of an offence and liable—</p></intro><level class="para1"><num>(a)</num><content><p>on summary conviction, to a penalty of the statutory maximum, or to imprisonment for a term not exceeding 6 months, or to both;</p></content></level><level class="para1"><num>(b)</num><content><p>on conviction on indictment, to a penalty of any amount, or to a term of imprisonment not exceeding 7 years, or to both.</p></content></level></subsection><subsection><num>(7)</num><content><p>Any marked oil which is in a road vehicle as part of the fuel supply for the engine which propels the vehicle shall be liable to forfeiture.</p></content></subsection><subsection><num>(8)</num><intro><p>Where in any proceedings relating to this section a question arises as to the nature of any substance present at any time in any hydrocarbon oil—</p></intro><level class="para1"><num>(a)</num><content><p>a certificate of the Commissioners to the effect that that substance is or was a marker designated for the purposes of this section shall be sufficient, unless the contrary is shown, for establishing that fact; and</p></content></level><level class="para1"><num>(b)</num><content><p>any document purporting to be such a certificate shall be taken to be one unless it is shown not to be.</p></content></level></subsection></section></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-7-2"><num>(2)</num><content><p>In section 24(1) of that Act (purposes for which regulations may be made), for “or section 19A above” there shall be inserted “, section 19A or section 24A of this Act”.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-8"><num>8</num><heading>Relief for marine voyages</heading><subsection eId="section-8-1"><num>(1)</num><intro><p>The following provisions of the <noteRef href="#m00011" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Hydrocarbon Oil Duties Act 1979 are hereby repealed—</p></intro><level class="para1" eId="section-8-1-a"><num>(a)</num><content><p>section 18 (fuel for ships in home waters), and</p></content></level><level class="para1" eId="section-8-1-b"><num>(b)</num><content><p>in subsection (1) of section 19 (fuel used in fishing boats, etc.), paragraph (a) and the words from “by the owner” to “be”.</p></content></level></subsection><subsection eId="section-8-2"><num>(2)</num><content><p>This section shall come into force on such day as the Commissioners of Customs and Excise may by order made by statutory instrument appoint.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-8-1"><num>(1)</num><intro><p>The following provisions of the <noteRef href="#m00011" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Hydrocarbon Oil Duties Act 1979 are hereby repealed—</p></intro><level class="para1" eId="section-8-1-a"><num>(a)</num><content><p>section 18 (fuel for ships in home waters), and</p></content></level><level class="para1" eId="section-8-1-b"><num>(b)</num><content><p>in subsection (1) of section 19 (fuel used in fishing boats, etc.), paragraph (a) and the words from “by the owner” to “be”.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-8-1-a"><num>(a)</num><content><p>section 18 (fuel for ships in home waters), and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-8-1-b"><num>(b)</num><content><p>in subsection (1) of section 19 (fuel used in fishing boats, etc.), paragraph (a) and the words from “by the owner” to “be”.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-8-2"><num>(2)</num><content><p>This section shall come into force on such day as the Commissioners of Customs and Excise may by order made by statutory instrument appoint.</p></content></subsection>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:default="http://www.w3.org/1999/xhtml" name="crossheading" ukl:Name="Pblock" eId="part-I-crossheading-tobacco-products-duty"><heading>Tobacco products duty</heading><section eId="section-9"><num>9</num><heading>Rates of duty</heading><subsection eId="section-9-1"><num>(1)</num><content><p><mod>For the Table of rates of duty in Schedule 1 to the <noteRef href="#m00012" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Tobacco Products Duty Act 1979 there shall be substituted—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><tblock class="table" ukl:Orientation="portrait"><heading>TABLE</heading><foreign><default:table xmlns="http://www.w3.org/1999/xhtml" summary="Table of Rates of Tobacco Products Duty: This table displays the Tobacco product and the corresponding Rate of duty."><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1. Cigarettes</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">An amount equal to 20 per cent. of the retail price plus £62.52 per thousand cigarettes.</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2. Cigars</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£91.52 per kilogram.</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">3. Hand-rolling tobacco</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£85.94 per kilogram.</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4. Other smoking tobacco and chewing tobacco</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£40.24 per kilogram.</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure></mod></p></content></subsection><subsection eId="section-9-2"><num>(2)</num><content><p>This section shall be deemed to have come into force at 6 o'clock in the evening of 28th November 1995.</p></content></subsection></section></hcontainer>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:default="http://www.w3.org/1999/xhtml" eId="section-9"><num>9</num><heading>Rates of duty</heading><subsection eId="section-9-1"><num>(1)</num><content><p><mod>For the Table of rates of duty in Schedule 1 to the <noteRef href="#m00012" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Tobacco Products Duty Act 1979 there shall be substituted—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><tblock class="table" ukl:Orientation="portrait"><heading>TABLE</heading><foreign><default:table xmlns="http://www.w3.org/1999/xhtml" summary="Table of Rates of Tobacco Products Duty: This table displays the Tobacco product and the corresponding Rate of duty."><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1. Cigarettes</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">An amount equal to 20 per cent. of the retail price plus £62.52 per thousand cigarettes.</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2. Cigars</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£91.52 per kilogram.</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">3. Hand-rolling tobacco</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£85.94 per kilogram.</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4. Other smoking tobacco and chewing tobacco</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£40.24 per kilogram.</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure></mod></p></content></subsection><subsection eId="section-9-2"><num>(2)</num><content><p>This section shall be deemed to have come into force at 6 o'clock in the evening of 28th November 1995.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:default="http://www.w3.org/1999/xhtml" eId="section-9-1"><num>(1)</num><content><p><mod>For the Table of rates of duty in Schedule 1 to the <noteRef href="#m00012" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Tobacco Products Duty Act 1979 there shall be substituted—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><tblock class="table" ukl:Orientation="portrait"><heading>TABLE</heading><foreign><default:table xmlns="http://www.w3.org/1999/xhtml" summary="Table of Rates of Tobacco Products Duty: This table displays the Tobacco product and the corresponding Rate of duty."><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1. Cigarettes</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">An amount equal to 20 per cent. of the retail price plus £62.52 per thousand cigarettes.</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2. Cigars</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£91.52 per kilogram.</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">3. Hand-rolling tobacco</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£85.94 per kilogram.</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4. Other smoking tobacco and chewing tobacco</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£40.24 per kilogram.</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-9-2"><num>(2)</num><content><p>This section shall be deemed to have come into force at 6 o'clock in the evening of 28th November 1995.</p></content></subsection>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="part-I-crossheading-betting-duties-rates"><heading>Betting duties: rates</heading><section eId="section-10"><num>10</num><heading>General betting duty</heading><subsection eId="section-10-1"><num>(1)</num><content><p>In section 1(2) of the <noteRef href="#m00013" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Betting and Gaming Duties Act 1981 (rate of general betting duty), for “7.75 per cent.” there shall be substituted “6.75 per cent.”</p></content></subsection><subsection eId="section-10-2"><num>(2)</num><content><p>This section shall apply in relation to bets made on or after 1st March 1996.</p></content></subsection></section><section eId="section-11"><num>11</num><heading>Pool betting duty</heading><intro><p>In section 7(1) of the <noteRef href="#m00014" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Betting and Gaming Duties Act 1981 (rate of pool betting duty), for “32.50 per cent” there shall be substituted—</p></intro><level class="para1" eId="section-11-a"><num>(a)</num><content><p>in relation to bets the stake money on which has been or is paid on or after 3rd December 1995 and before the first Sunday to follow the day on which this Act is passed, “27.50 per cent.”; and</p></content></level><level class="para1" eId="section-11-b"><num>(b)</num><content><p>in relation to bets the stake money on which is paid on or after that first Sunday, “26.50 per cent.”</p></content></level></section></hcontainer>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-10"><num>10</num><heading>General betting duty</heading><subsection eId="section-10-1"><num>(1)</num><content><p>In section 1(2) of the <noteRef href="#m00013" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Betting and Gaming Duties Act 1981 (rate of general betting duty), for “7.75 per cent.” there shall be substituted “6.75 per cent.”</p></content></subsection><subsection eId="section-10-2"><num>(2)</num><content><p>This section shall apply in relation to bets made on or after 1st March 1996.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-10-1"><num>(1)</num><content><p>In section 1(2) of the <noteRef href="#m00013" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Betting and Gaming Duties Act 1981 (rate of general betting duty), for “7.75 per cent.” there shall be substituted “6.75 per cent.”</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-10-2"><num>(2)</num><content><p>This section shall apply in relation to bets made on or after 1st March 1996.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-11"><num>11</num><heading>Pool betting duty</heading><intro><p>In section 7(1) of the <noteRef href="#m00014" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Betting and Gaming Duties Act 1981 (rate of pool betting duty), for “32.50 per cent” there shall be substituted—</p></intro><level class="para1" eId="section-11-a"><num>(a)</num><content><p>in relation to bets the stake money on which has been or is paid on or after 3rd December 1995 and before the first Sunday to follow the day on which this Act is passed, “27.50 per cent.”; and</p></content></level><level class="para1" eId="section-11-b"><num>(b)</num><content><p>in relation to bets the stake money on which is paid on or after that first Sunday, “26.50 per cent.”</p></content></level></section>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-11-a"><num>(a)</num><content><p>in relation to bets the stake money on which has been or is paid on or after 3rd December 1995 and before the first Sunday to follow the day on which this Act is passed, “27.50 per cent.”; and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-11-b"><num>(b)</num><content><p>in relation to bets the stake money on which is paid on or after that first Sunday, “26.50 per cent.”</p></content></level>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="part-I-crossheading-amusement-machine-licence-duty"><heading>Amusement machine licence duty</heading><section eId="section-12"><num>12</num><heading>Licences for machines as well as premises</heading><subsection eId="section-12-1"><num>(1)</num><content><p>In subsection (1) of section 21 of the <noteRef href="#m00015" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Betting and Gaming Duties Act 1981 (requirement for amusement machine licence with respect to premises), at the end there shall be inserted “or the machine”.</p></content></subsection><subsection eId="section-12-2"><num>(2)</num><content><p>In subsection (2) of that section (licences to be known as amusement machine licences), at the end there shall be inserted “and, if it is granted with respect to a machine, rather than with respect to premises, as a special amusement machine licence.”</p></content></subsection><subsection eId="section-12-3"><num>(3)</num><content><p><mod>After subsection (3) of that section there shall be inserted the following subsections—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(3AA)</num><intro><p>A special amusement machine licence shall not be granted except where—</p></intro><level class="para1"><num>(a)</num><content><p>the machine with respect to which it is granted is of a description of machine for which special amusement machine licences are available;</p></content></level><level class="para1"><num>(b)</num><content><p>such conditions as may be prescribed by regulations made by the Commissioners are satisfied in relation to the application for the licence, the machine and the person by whom the application is made; and</p></content></level><level class="para1"><num>(c)</num><content><p>the licence is for twelve months.</p></content></level></subsection><subsection><num>(3AB)</num><intro><p>Special amusement machine licences shall be available for amusement machines of each of the following descriptions—</p></intro><level class="para1"><num>(a)</num><content><p>machines that are not gaming machines; and</p></content></level><level class="para1"><num>(b)</num><content><p>small prize machines.</p></content></level></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-12-4"><num>(4)</num><content><p>In section 24(4) of that Act (provision of unlicensed machines), at the end there shall be inserted “or the machines”.</p></content></subsection><subsection eId="section-12-5"><num>(5)</num><content><p><mod>In paragraph 4 of Schedule 4 to that Act (seasonal licences), after sub-paragraph (7) there shall be inserted the following sub-paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><subparagraph><num>(7AA)</num><intro><p>Sub-paragraphs (4) and (5) above shall have effect where—</p></intro><level class="para1"><num>(a)</num><content><p>an amusement machine is provided on any premises at any time in a winter period, and</p></content></level><level class="para1"><num>(b)</num><content><p>the provision of that machine on those premises at that time is authorised by a special amusement machine licence,</p></content></level><wrapUp><p>as if an amusement machine licence had been granted in respect of those premises for that winter period.</p></wrapUp></subparagraph></quotedStructure></mod></p></content></subsection><subsection eId="section-12-6"><num>(6)</num><content><p><mod>Paragraph 5 of that Schedule shall become sub-paragraph (1) of that paragraph, and after that sub-paragraph there shall be inserted the following sub-paragraphs—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><subparagraph><num>(2)</num><content><p>Regulations may provide for this Schedule to have effect in relation to special amusement machine licences with such exceptions, adaptations and modifications as may be prescribed.</p></content></subparagraph><subparagraph><num>(3)</num><intro><p>Without prejudice to the generality of sub-paragraphs (1) and (2) above, regulations may include provision requiring—</p></intro><level class="para1"><num>(a)</num><content><p>a special amusement machine licence to be displayed on such premises and in such manner, and</p></content></level><level class="para1"><num>(b)</num><content><p>the machine to which such a licence relates to bear such labels and marks,</p></content></level><wrapUp><p>as may be determined by directions given, in accordance with the regulations, by the Commissioners.</p></wrapUp></subparagraph></quotedStructure></mod></p></content></subsection></section></hcontainer>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-12"><num>12</num><heading>Licences for machines as well as premises</heading><subsection eId="section-12-1"><num>(1)</num><content><p>In subsection (1) of section 21 of the <noteRef href="#m00015" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Betting and Gaming Duties Act 1981 (requirement for amusement machine licence with respect to premises), at the end there shall be inserted “or the machine”.</p></content></subsection><subsection eId="section-12-2"><num>(2)</num><content><p>In subsection (2) of that section (licences to be known as amusement machine licences), at the end there shall be inserted “and, if it is granted with respect to a machine, rather than with respect to premises, as a special amusement machine licence.”</p></content></subsection><subsection eId="section-12-3"><num>(3)</num><content><p><mod>After subsection (3) of that section there shall be inserted the following subsections—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(3AA)</num><intro><p>A special amusement machine licence shall not be granted except where—</p></intro><level class="para1"><num>(a)</num><content><p>the machine with respect to which it is granted is of a description of machine for which special amusement machine licences are available;</p></content></level><level class="para1"><num>(b)</num><content><p>such conditions as may be prescribed by regulations made by the Commissioners are satisfied in relation to the application for the licence, the machine and the person by whom the application is made; and</p></content></level><level class="para1"><num>(c)</num><content><p>the licence is for twelve months.</p></content></level></subsection><subsection><num>(3AB)</num><intro><p>Special amusement machine licences shall be available for amusement machines of each of the following descriptions—</p></intro><level class="para1"><num>(a)</num><content><p>machines that are not gaming machines; and</p></content></level><level class="para1"><num>(b)</num><content><p>small prize machines.</p></content></level></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-12-4"><num>(4)</num><content><p>In section 24(4) of that Act (provision of unlicensed machines), at the end there shall be inserted “or the machines”.</p></content></subsection><subsection eId="section-12-5"><num>(5)</num><content><p><mod>In paragraph 4 of Schedule 4 to that Act (seasonal licences), after sub-paragraph (7) there shall be inserted the following sub-paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><subparagraph><num>(7AA)</num><intro><p>Sub-paragraphs (4) and (5) above shall have effect where—</p></intro><level class="para1"><num>(a)</num><content><p>an amusement machine is provided on any premises at any time in a winter period, and</p></content></level><level class="para1"><num>(b)</num><content><p>the provision of that machine on those premises at that time is authorised by a special amusement machine licence,</p></content></level><wrapUp><p>as if an amusement machine licence had been granted in respect of those premises for that winter period.</p></wrapUp></subparagraph></quotedStructure></mod></p></content></subsection><subsection eId="section-12-6"><num>(6)</num><content><p><mod>Paragraph 5 of that Schedule shall become sub-paragraph (1) of that paragraph, and after that sub-paragraph there shall be inserted the following sub-paragraphs—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><subparagraph><num>(2)</num><content><p>Regulations may provide for this Schedule to have effect in relation to special amusement machine licences with such exceptions, adaptations and modifications as may be prescribed.</p></content></subparagraph><subparagraph><num>(3)</num><intro><p>Without prejudice to the generality of sub-paragraphs (1) and (2) above, regulations may include provision requiring—</p></intro><level class="para1"><num>(a)</num><content><p>a special amusement machine licence to be displayed on such premises and in such manner, and</p></content></level><level class="para1"><num>(b)</num><content><p>the machine to which such a licence relates to bear such labels and marks,</p></content></level><wrapUp><p>as may be determined by directions given, in accordance with the regulations, by the Commissioners.</p></wrapUp></subparagraph></quotedStructure></mod></p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-12-1"><num>(1)</num><content><p>In subsection (1) of section 21 of the <noteRef href="#m00015" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Betting and Gaming Duties Act 1981 (requirement for amusement machine licence with respect to premises), at the end there shall be inserted “or the machine”.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-12-2"><num>(2)</num><content><p>In subsection (2) of that section (licences to be known as amusement machine licences), at the end there shall be inserted “and, if it is granted with respect to a machine, rather than with respect to premises, as a special amusement machine licence.”</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-12-3"><num>(3)</num><content><p><mod>After subsection (3) of that section there shall be inserted the following subsections—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(3AA)</num><intro><p>A special amusement machine licence shall not be granted except where—</p></intro><level class="para1"><num>(a)</num><content><p>the machine with respect to which it is granted is of a description of machine for which special amusement machine licences are available;</p></content></level><level class="para1"><num>(b)</num><content><p>such conditions as may be prescribed by regulations made by the Commissioners are satisfied in relation to the application for the licence, the machine and the person by whom the application is made; and</p></content></level><level class="para1"><num>(c)</num><content><p>the licence is for twelve months.</p></content></level></subsection><subsection><num>(3AB)</num><intro><p>Special amusement machine licences shall be available for amusement machines of each of the following descriptions—</p></intro><level class="para1"><num>(a)</num><content><p>machines that are not gaming machines; and</p></content></level><level class="para1"><num>(b)</num><content><p>small prize machines.</p></content></level></subsection></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-12-4"><num>(4)</num><content><p>In section 24(4) of that Act (provision of unlicensed machines), at the end there shall be inserted “or the machines”.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-12-5"><num>(5)</num><content><p><mod>In paragraph 4 of Schedule 4 to that Act (seasonal licences), after sub-paragraph (7) there shall be inserted the following sub-paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><subparagraph><num>(7AA)</num><intro><p>Sub-paragraphs (4) and (5) above shall have effect where—</p></intro><level class="para1"><num>(a)</num><content><p>an amusement machine is provided on any premises at any time in a winter period, and</p></content></level><level class="para1"><num>(b)</num><content><p>the provision of that machine on those premises at that time is authorised by a special amusement machine licence,</p></content></level><wrapUp><p>as if an amusement machine licence had been granted in respect of those premises for that winter period.</p></wrapUp></subparagraph></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-12-6"><num>(6)</num><content><p><mod>Paragraph 5 of that Schedule shall become sub-paragraph (1) of that paragraph, and after that sub-paragraph there shall be inserted the following sub-paragraphs—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><subparagraph><num>(2)</num><content><p>Regulations may provide for this Schedule to have effect in relation to special amusement machine licences with such exceptions, adaptations and modifications as may be prescribed.</p></content></subparagraph><subparagraph><num>(3)</num><intro><p>Without prejudice to the generality of sub-paragraphs (1) and (2) above, regulations may include provision requiring—</p></intro><level class="para1"><num>(a)</num><content><p>a special amusement machine licence to be displayed on such premises and in such manner, and</p></content></level><level class="para1"><num>(b)</num><content><p>the machine to which such a licence relates to bear such labels and marks,</p></content></level><wrapUp><p>as may be determined by directions given, in accordance with the regulations, by the Commissioners.</p></wrapUp></subparagraph></quotedStructure></mod></p></content></subsection>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="part-I-crossheading-air-passenger-duty"><heading>Air passenger duty</heading><section eId="section-13"><num>13</num><heading>Pleasure flights</heading><subsection eId="section-13-1"><num>(1)</num><content><p><mod>In section 31 of the <noteRef href="#m00016" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1994 (air passenger duty: exceptions for certain passengers) after subsection (4) there shall be inserted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(4A)</num><intro><p>A passenger is not a chargeable passenger in relation to a flight if under his agreement for carriage (whether or not it is evidenced by a ticket)—</p></intro><level class="para1"><num>(a)</num><content><p>the flight is to depart from and return to the same airport, and</p></content></level><level class="para1"><num>(b)</num><content><p>the duration of the flight (excluding any period during which the aircraft’s doors are open for boarding or disembarkation) is not to exceed 60 minutes.</p></content></level></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-13-2"><num>(2)</num><intro><p>In section 32 of that Act (change of circumstances after ticket issued etc.)—</p></intro><level class="para1" eId="section-13-2-a"><num>(a)</num><content><p>in subsection (1) (which provides that that section applies where a person’s agreement for carriage is evidenced by a ticket) for the words “This section applies” there shall be substituted the words “Subsections (2) and (3) below apply”;</p></content></level><level class="para1" eId="section-13-2-b"><num>(b)</num><content><p><mod>after subsection (3) there shall be added—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(4)</num><intro><p>Where—</p></intro><level class="para1"><num>(a)</num><content><p>at the time a passenger’s flight begins, by virtue of section 31(4A) above he would not (assuming there is no change of circumstances) be a chargeable passenger in relation to the flight, and</p></content></level><level class="para1"><num>(b)</num><content><p>by reason only of a change of circumstances not attributable to any act or default of his, the flight does not return to the airport from which it departed or exceeds 60 minutes in duration (excluding any period during which the aircraft’s doors are open for boarding or disembarkation),</p></content></level><wrapUp><p>he shall not by reason of the change of circumstances be treated as a chargeable passenger in relation to that flight.</p></wrapUp></subsection></quotedStructure></mod></p></content></level></subsection></section></hcontainer>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-13"><num>13</num><heading>Pleasure flights</heading><subsection eId="section-13-1"><num>(1)</num><content><p><mod>In section 31 of the <noteRef href="#m00016" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1994 (air passenger duty: exceptions for certain passengers) after subsection (4) there shall be inserted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(4A)</num><intro><p>A passenger is not a chargeable passenger in relation to a flight if under his agreement for carriage (whether or not it is evidenced by a ticket)—</p></intro><level class="para1"><num>(a)</num><content><p>the flight is to depart from and return to the same airport, and</p></content></level><level class="para1"><num>(b)</num><content><p>the duration of the flight (excluding any period during which the aircraft’s doors are open for boarding or disembarkation) is not to exceed 60 minutes.</p></content></level></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-13-2"><num>(2)</num><intro><p>In section 32 of that Act (change of circumstances after ticket issued etc.)—</p></intro><level class="para1" eId="section-13-2-a"><num>(a)</num><content><p>in subsection (1) (which provides that that section applies where a person’s agreement for carriage is evidenced by a ticket) for the words “This section applies” there shall be substituted the words “Subsections (2) and (3) below apply”;</p></content></level><level class="para1" eId="section-13-2-b"><num>(b)</num><content><p><mod>after subsection (3) there shall be added—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(4)</num><intro><p>Where—</p></intro><level class="para1"><num>(a)</num><content><p>at the time a passenger’s flight begins, by virtue of section 31(4A) above he would not (assuming there is no change of circumstances) be a chargeable passenger in relation to the flight, and</p></content></level><level class="para1"><num>(b)</num><content><p>by reason only of a change of circumstances not attributable to any act or default of his, the flight does not return to the airport from which it departed or exceeds 60 minutes in duration (excluding any period during which the aircraft’s doors are open for boarding or disembarkation),</p></content></level><wrapUp><p>he shall not by reason of the change of circumstances be treated as a chargeable passenger in relation to that flight.</p></wrapUp></subsection></quotedStructure></mod></p></content></level></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-13-1"><num>(1)</num><content><p><mod>In section 31 of the <noteRef href="#m00016" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1994 (air passenger duty: exceptions for certain passengers) after subsection (4) there shall be inserted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(4A)</num><intro><p>A passenger is not a chargeable passenger in relation to a flight if under his agreement for carriage (whether or not it is evidenced by a ticket)—</p></intro><level class="para1"><num>(a)</num><content><p>the flight is to depart from and return to the same airport, and</p></content></level><level class="para1"><num>(b)</num><content><p>the duration of the flight (excluding any period during which the aircraft’s doors are open for boarding or disembarkation) is not to exceed 60 minutes.</p></content></level></subsection></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-13-2"><num>(2)</num><intro><p>In section 32 of that Act (change of circumstances after ticket issued etc.)—</p></intro><level class="para1" eId="section-13-2-a"><num>(a)</num><content><p>in subsection (1) (which provides that that section applies where a person’s agreement for carriage is evidenced by a ticket) for the words “This section applies” there shall be substituted the words “Subsections (2) and (3) below apply”;</p></content></level><level class="para1" eId="section-13-2-b"><num>(b)</num><content><p><mod>after subsection (3) there shall be added—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(4)</num><intro><p>Where—</p></intro><level class="para1"><num>(a)</num><content><p>at the time a passenger’s flight begins, by virtue of section 31(4A) above he would not (assuming there is no change of circumstances) be a chargeable passenger in relation to the flight, and</p></content></level><level class="para1"><num>(b)</num><content><p>by reason only of a change of circumstances not attributable to any act or default of his, the flight does not return to the airport from which it departed or exceeds 60 minutes in duration (excluding any period during which the aircraft’s doors are open for boarding or disembarkation),</p></content></level><wrapUp><p>he shall not by reason of the change of circumstances be treated as a chargeable passenger in relation to that flight.</p></wrapUp></subsection></quotedStructure></mod></p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-13-2-a"><num>(a)</num><content><p>in subsection (1) (which provides that that section applies where a person’s agreement for carriage is evidenced by a ticket) for the words “This section applies” there shall be substituted the words “Subsections (2) and (3) below apply”;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-13-2-b"><num>(b)</num><content><p><mod>after subsection (3) there shall be added—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(4)</num><intro><p>Where—</p></intro><level class="para1"><num>(a)</num><content><p>at the time a passenger’s flight begins, by virtue of section 31(4A) above he would not (assuming there is no change of circumstances) be a chargeable passenger in relation to the flight, and</p></content></level><level class="para1"><num>(b)</num><content><p>by reason only of a change of circumstances not attributable to any act or default of his, the flight does not return to the airport from which it departed or exceeds 60 minutes in duration (excluding any period during which the aircraft’s doors are open for boarding or disembarkation),</p></content></level><wrapUp><p>he shall not by reason of the change of circumstances be treated as a chargeable passenger in relation to that flight.</p></wrapUp></subsection></quotedStructure></mod></p></content></level>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="part-I-crossheading-vehicle-excise-duty"><heading>Vehicle excise duty</heading><section eId="section-14"><num>14</num><heading>Increase in general rate</heading><subsection eId="section-14-1"><num>(1)</num><content><p>In Schedule 1 to the <noteRef href="#m00017" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Vehicle Excise and Registration Act 1994 (annual rates of duty), in paragraph 1(2) (the general rate), for “£135” there shall be substituted “£140”.</p></content></subsection><subsection eId="section-14-2"><num>(2)</num><content><p>Subsection (1) above applies in relation to licences taken out after 28th November 1995.</p></content></subsection></section><section eId="section-15"><num>15</num><heading>Electrically propelled vehicles</heading><subsection eId="section-15-1"><num>(1)</num><content><p>In Schedule 1 to the Vehicle Excise and Registration Act 1994 (annual rates of duty), in paragraph 2(1)(a) (rate for motorcycles with low cylinder capacity), after “150 cubic centimetres” there shall be inserted “or the motorcycle is an electrically propelled vehicle”.</p></content></subsection><subsection eId="section-15-2"><num>(2)</num><intro><p>In paragraph 4F of that Schedule (electrically propelled vehicles are special concessionary vehicles)—</p></intro><level class="para1" eId="section-15-2-a"><num>(a)</num><content><p>in sub-paragraph (1), after “electrically propelled vehicle” there shall be inserted “other than a motorcycle (within the meaning of Part II of this Schedule)”; and</p></content></level><level class="para1" eId="section-15-2-b"><num>(b)</num><content><p>sub-paragraph (2) shall be omitted.</p></content></level></subsection><subsection eId="section-15-3"><num>(3)</num><content><p><mod>In section 62 of that Act (definitions), after subsection (1) there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1A)</num><intro><p>For the purposes of this Act, a vehicle is not an electrically propelled vehicle unless the electrical motive power is derived from—</p></intro><level class="para1"><num>(a)</num><content><p>a source external to the vehicle, or</p></content></level><level class="para1"><num>(b)</num><content><p>an electrical storage battery which is not connected to any source of power when the vehicle is in motion.</p></content></level></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-15-4"><num>(4)</num><content><p>Subsections (1) to (3) above apply in relation to licences taken out after 28th November 1995.</p></content></subsection><subsection eId="section-15-5"><num>(5)</num><content><p><mod>In Schedule 2 to that Act (exemptions), after paragraph 2 there shall be inserted the following paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><hcontainer name="crossheading" ukl:Name="Pblock"><heading>Electrically assisted pedal cycles</heading><paragraph class="schProv1"><num>2A</num><subparagraph><num>(1)</num><content><p>An electrically assisted pedal cycle is an exempt vehicle.</p></content></subparagraph><subparagraph><num>(2)</num><content><p>For the purposes of sub-paragraph (1) an electrically assisted pedal cycle is a vehicle of a class complying with such requirements as may be prescribed by regulations made by the Secretary of State for the purposes of this paragraph.</p></content></subparagraph></paragraph></hcontainer></quotedStructure></mod></p></content></subsection></section><section eId="section-16"><num>16</num><heading>Steam powered vehicles etc</heading><subsection eId="section-16-1"><num>(1)</num><content><p><mod>In Schedule 1 to the Vehicle Excise and Registration Act 1994 (annual rates of duty), after paragraph 4E there shall be inserted the following paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><paragraph class="schProv1"><num>4EE</num><content><p>A steam powered vehicle is a special concessionary vehicle.</p></content></paragraph></quotedStructure></mod></p></content></subsection><subsection eId="section-16-2"><num>(2)</num><content><p>In paragraph 3 of that Schedule (buses), in sub-paragraph (2)(b) (vehicles which are not buses), after “excepted vehicle” there shall be inserted “or a special concessionary vehicle”.</p></content></subsection><subsection eId="section-16-3"><num>(3)</num><content><p>In paragraph 4(2) of that Schedule (meaning of “special vehicle”), for “and is” there shall be substituted “which is not a special concessionary vehicle and which is”.</p></content></subsection><subsection eId="section-16-4"><num>(4)</num><content><p><mod>In paragraph 5 of that Schedule (recovery vehicles), after sub-paragraph (5) there shall be inserted the following sub-paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><subparagraph><num>(5A)</num><content><p>A vehicle is not a recovery vehicle if it is a special concessionary vehicle.</p></content></subparagraph></quotedStructure></mod></p></content></subsection><subsection eId="section-16-5"><num>(5)</num><content><p><mod>In paragraph 6(1) of that Schedule (vehicles used for exceptional loads), after paragraph (b) there shall be inserted—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><p>and which is not a special concessionary vehicle.</p></quotedStructure></mod></p></content></subsection><subsection eId="section-16-6"><num>(6)</num><content><p>In paragraph 7(2) of that Schedule (meaning of “haulage vehicle”), after “Part IV,” there shall be inserted “IVA,”.</p></content></subsection><subsection eId="section-16-7"><num>(7)</num><content><p>In paragraph 16 of that Schedule (application of Part VIII of the Schedule), in sub-paragraph (1)(a), after “Part II, IV,” there shall be inserted “IVA,”.</p></content></subsection><subsection eId="section-16-8"><num>(8)</num><content><p>This section applies in relation to licences taken out after 28th November 1995.</p></content></subsection></section><section eId="section-17"><num>17</num><heading>Vehicles capable of conveying loads</heading><subsection eId="section-17-1"><num>(1)</num><content><p>Schedule 1 to the <noteRef href="#m00018" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Vehicle Excise and Registration Act 1994 (annual rates of duty) shall be amended in accordance with subsections (2) to (8) below.</p></content></subsection><subsection eId="section-17-2"><num>(2)</num><content><p><mod>In paragraph 4(2) (meaning of “special vehicle”), immediately before paragraph (c) there shall be inserted the following paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><level class="para1"><num>(bb)</num><content><p>a vehicle falling within sub-paragraph (2A) or (2B),</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-17-3"><num>(3)</num><content><p><mod>After sub-paragraph (2) of paragraph 4 there shall be inserted the following sub-paragraphs—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><subparagraph><num>(2A)</num><intro><p>A vehicle falls within this sub-paragraph if—</p></intro><level class="para1"><num>(a)</num><content><p>it is designed or adapted for use for the conveyance of goods or burden of any description; but</p></content></level><level class="para1"><num>(b)</num><content><p>it is not so used or is not so used for hire or reward or for or in connection with a trade or business.</p></content></level></subparagraph><subparagraph><num>(2B)</num><intro><p>A vehicle falls within this sub-paragraph if—</p></intro><level class="para1"><num>(a)</num><content><p>it is designed or adapted for use with a semi-trailer attached; but</p></content></level><level class="para1"><num>(b)</num><content><p>it is not so used or, if it is so used, the semi-trailer is not used for the conveyance of goods or burden of any description.</p></content></level></subparagraph></quotedStructure></mod></p></content></subsection><subsection eId="section-17-4"><num>(4)</num><content><p><mod>In paragraph 9(2) (rigid goods vehicles which are subject to basic goods vehicle rate), after paragraph (b) there shall be inserted <quotedText startQuote="“">and</quotedText><quotedStructure endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><level class="para1"><num>(c)</num><content><p>to any rigid goods vehicle which is used loaded only in connection with a person learning to drive the vehicle or taking a driving test,</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-17-5"><num>(5)</num><content><p>In paragraph 10(1) (trailer supplement), after “exceeding 12,000 kilograms” there shall be inserted “, which does not fall within paragraph 9(2)(b) or (c)”.</p></content></subsection><subsection eId="section-17-6"><num>(6)</num><content><p><mod>In paragraph 11(2) (tractive units which are subject to basic goods vehicle rate), after paragraph (b) there shall be inserted <quotedText startQuote="“">and</quotedText><quotedStructure endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><level class="para1"><num>(c)</num><content><p>to any tractive unit to which a semi-trailer is attached which is used loaded only in connection with a person learning to drive the tractive unit or taking a driving test,</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-17-7"><num>(7)</num><content><p>In paragraph 16(1) (cases where Part VIII of Schedule 1 does not apply), paragraph (b), and the word “or” immediately preceding it, shall be omitted.</p></content></subsection><subsection eId="section-17-8"><num>(8)</num><content><p><mod>After paragraph 18 there shall be inserted the following paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><hcontainer name="crossheading" ukl:Name="Pblock"><heading>Other expressions</heading><paragraph class="schProv1"><num>19</num><subparagraph><num>(1)</num><content><p>In this Part “driving test” means any test of competence to drive mentioned in section 89(1) of the <noteRef href="#m00019" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Road Traffic Act 1988.</p></content></subparagraph><subparagraph><num>(2)</num><content><p>For the purposes of this Part a vehicle or a semi-trailer is used loaded if the vehicle or, as the case may be, the semi-trailer is used for the conveyance of goods or burden of any description.</p></content></subparagraph></paragraph></hcontainer></quotedStructure></mod></p></content></subsection><subsection eId="section-17-9"><num>(9)</num><intro><p>In section 7 of the <noteRef href="#m00020" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Vehicle Excise and Registration Act 1994 (issue of licences), in subsection (2) (declarations and particulars in relation to goods vehicles)—</p></intro><level class="para1" eId="section-17-9-a"><num>(a)</num><content><p>after “goods vehicle” there shall be inserted “or a special vehicle”; and</p></content></level><level class="para1" eId="section-17-9-b"><num>(b)</num><content><p>after “goods vehicles” there shall be inserted “or, as the case may be, special vehicles”.</p></content></level></subsection><subsection eId="section-17-10"><num>(10)</num><content><p><mod>After subsection (7) of that section there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(8)</num><content><p>In this section “special vehicle” has the same meaning as in paragraph 4 of Schedule 1.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-17-11"><num>(11)</num><content><p>Subject to subsection (13) below, subsections (1) to (8) above apply in relation to licences taken out after 28th November 1995.</p></content></subsection><subsection eId="section-17-12"><num>(12)</num><intro><p>Subsection (13) below applies where a vehicle licence is taken out—</p></intro><level class="para1" eId="section-17-12-a"><num>(a)</num><content><p>on or before 28th November 1995, and</p></content></level><level class="para1" eId="section-17-12-b"><num>(b)</num><content><p>at the rate applicable (at the time it is taken out) under Schedule 1 to the Vehicle Excise and Registration Act 1994.</p></content></level></subsection><subsection eId="section-17-13"><num>(13)</num><content><p>While the licence is in force duty shall not, by virtue of this section, become chargeable under section 15 of that Act (vehicle used in manner attracting higher rate).</p></content></subsection><subsection eId="section-17-14"><num>(14)</num><content><p>Subsections (9) and (10) above apply in relation to applications made after 28th November 1995.</p></content></subsection><subsection eId="section-17-15"><num>(15)</num><content><p>Paragraph 15 of Schedule 1 to that Act (which is unnecessary) shall be omitted.</p></content></subsection></section><section eId="section-18"><num>18</num><heading>Old vehicles</heading><subsection eId="section-18-1"><num>(1)</num><content><p><mod>In Schedule 2 to the <noteRef href="#m00021" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Vehicle Excise and Registration Act 1994 (exempt vehicles), immediately before paragraph 2 there shall be inserted the following paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><hcontainer name="crossheading" ukl:Name="Pblock"><heading>Old vehicles</heading><paragraph class="schProv1"><num>1A</num><subparagraph><num>(1)</num><content><p>A vehicle of a description mentioned in sub-paragraph (2) is an exempt vehicle at any time if it was constructed more than 25 years before the beginning of the year in which that time falls.</p></content></subparagraph><subparagraph><num>(2)</num><intro><p>The descriptions of vehicles are—</p></intro><level class="para1"><num>(a)</num><content><p>a vehicle in respect of which no annual rate is specified by any provision of Parts II to VIII of Schedule 1;</p></content></level><level class="para1"><num>(b)</num><content><p>a motorcycle which does not exceed 450 kilograms in weight unladen.</p></content></level></subparagraph><subparagraph><num>(3)</num><content><p>In sub-paragraph (2)(b) “motorcycle” has the same meaning as in Part II of Schedule 1.</p></content></subparagraph></paragraph></hcontainer></quotedStructure></mod></p></content></subsection><subsection eId="section-18-2"><num>(2)</num><intro><p>In Schedule 1 to that Act (annual rates of duty), in paragraph 1 (rate for vehicle for which no other rate is specified)—</p></intro><level class="para1" eId="section-18-2-a"><num>(a)</num><content><p>for paragraphs (a) and (b) of sub-paragraph (1) there shall be substituted “the general rate”; and</p></content></level><level class="para1" eId="section-18-2-b"><num>(b)</num><content><p>sub-paragraphs (3) to (5) shall be omitted;</p></content></level><wrapUp><p>and, in paragraph 2 (motorcycles), sub-paragraph (2) shall be omitted.</p></wrapUp></subsection><subsection eId="section-18-3"><num>(3)</num><content><p>In section 2(4) of that Act (rate of duty for vehicle not currently in use and for which no previous licence issued), for the words from “whichever” to the end there shall be substituted “the general rate currently specified in paragraph 1(2) of Schedule 1”.</p></content></subsection><subsection eId="section-18-4"><num>(4)</num><intro><p>In that Act—</p></intro><level class="para1" eId="section-18-4-a"><num>(a)</num><content><p>in section 13 (trade licences), in subsection (3)(b),</p></content></level><level class="para1" eId="section-18-4-b"><num>(b)</num><content><p>in section 13 as substituted under paragraph 8 of Schedule 4, in subsection (4)(b), and</p></content></level><level class="para1" eId="section-18-4-c"><num>(c)</num><content><p>in section 36(3)(b) (additional liability where cheque dishonoured),</p></content></level><wrapUp><p>for “1(1)(a)” there shall be substituted “1”.</p></wrapUp></subsection><subsection eId="section-18-5"><num>(5)</num><content><p>This section has effect in relation to times after 28th November 1995.</p></content></subsection></section><section eId="section-19"><num>19</num><heading>Old vehicles: further provisions</heading><subsection eId="section-19-1"><num>(1)</num><content><p><mod>In Schedule 2 to the <noteRef href="#m00022" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Vehicle Excise and Registration Act 1994 (exempt vehicles), for paragraph 1A (inserted by section 18 above) there shall be substituted the following paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><hcontainer name="crossheading" ukl:Name="Pblock"><heading>Old vehicles</heading><paragraph class="schProv1"><num>1A</num><subparagraph><num>(1)</num><content><p>Subject to sub-paragraph (2), a vehicle is an exempt vehicle at any time if it was constructed more than 25 years before the beginning of the year in which that time falls.</p></content></subparagraph><subparagraph><num>(2)</num><intro><p>A vehicle is not an exempt vehicle by virtue of sub-paragraph (1) if—</p></intro><level class="para1"><num>(a)</num><content><p>an annual rate is specified in respect of it by any provision of Part III, V, VI, VII or VIII of Schedule 1; or</p></content></level><level class="para1"><num>(b)</num><intro><p>it is a special vehicle, within the meaning of Part IV of Schedule 1, which—</p></intro><level class="para2"><num>(i)</num><content><p>falls within sub-paragraph (3) or (4); and</p></content></level><level class="para2"><num>(ii)</num><content><p>is not a digging machine, mobile crane, works truck or road roller.</p></content></level></level></subparagraph><subparagraph><num>(3)</num><intro><p>A vehicle falls within this sub-paragraph if—</p></intro><level class="para1"><num>(a)</num><content><p>it is designed or adapted for use for the conveyance of goods or burden of any description;</p></content></level><level class="para1"><num>(b)</num><content><p>it is put to a commercial use on a public road; and</p></content></level><level class="para1"><num>(c)</num><content><p>that use is not a use for the conveyance of goods or burden of any description.</p></content></level></subparagraph><subparagraph><num>(4)</num><intro><p>A vehicle falls within this sub-paragraph if—</p></intro><level class="para1"><num>(a)</num><content><p>it is designed or adapted for use with a semi-trailer attached;</p></content></level><level class="para1"><num>(b)</num><content><p>it is put to a commercial use on a public road; and</p></content></level><level class="para1"><num>(c)</num><content><p>in a case where that use is a use with a semi-trailer attached, the semi-trailer is not used for the conveyance of goods or burden of any description.</p></content></level></subparagraph><subparagraph><num>(5)</num><content><p>In sub-paragraph (2) “digging machine”, “mobile crane” and “works truck” have the same meanings as in paragraph 4 of Schedule 1.</p></content></subparagraph><subparagraph><num>(6)</num><content><p>In sub-paragraphs (3) and (4) “commercial use” means use for hire or reward or for or in connection with a trade or business.</p></content></subparagraph></paragraph></hcontainer></quotedStructure></mod></p></content></subsection><subsection eId="section-19-2"><num>(2)</num><content><p>This section has effect in relation to times on or after 1st June 1996.</p></content></subsection></section><section eId="section-20"><num>20</num><heading>Exemptions for vehicle testing: general</heading><subsection eId="section-20-1"><num>(1)</num><content><p>Paragraph 22 of Schedule 2 to the <noteRef href="#m00023" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Vehicle Excise and Registration Act 1994 (exemption for vehicle testing) shall be amended as follows.</p></content></subsection><subsection eId="section-20-2"><num>(2)</num><content><p>In sub-paragraph (1) (use for the purposes of submitting a vehicle to, or bringing it away from, a compulsory test), after the words “compulsory test”, in each place where they occur, there shall be inserted “or a vehicle weight test”.</p></content></subsection><subsection eId="section-20-3"><num>(3)</num><content><p><mod>After sub-paragraph (1) there shall be inserted the following sub-paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><subparagraph><num>(1A)</num><intro><p>A vehicle is an exempt vehicle when it is being used solely for the purpose of—</p></intro><level class="para1"><num>(a)</num><content><p>taking it (by previous arrangement for a specified time on a specified date) for a relevant re-examination, or</p></content></level><level class="para1"><num>(b)</num><content><p>bringing it away from such a re-examination.</p></content></level></subparagraph></quotedStructure></mod></p></content></subsection><subsection eId="section-20-4"><num>(4)</num><intro><p>In sub-paragraph (2) (use by an authorised person in the course of compulsory test)—</p></intro><level class="para1" eId="section-20-4-a"><num>(a)</num><content><p>after “compulsory test” there shall be inserted “, a vehicle weight test or a relevant re-examination and is being so used”; and</p></content></level><level class="para1" eId="section-20-4-b"><num>(b)</num><content><p>in paragraphs (a) and (b), after the words “the test”, in each place where they occur, there shall be inserted “or re-examination”.</p></content></level></subsection><subsection eId="section-20-5"><num>(5)</num><content><p><mod>After sub-paragraph (2) there shall be inserted the following sub-paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(2A)</num><intro><p>A vehicle is an exempt vehicle when it is being used by an authorised person solely for the purpose of warming up its engine in preparation for the carrying out of—</p></intro><level class="para1"><num>(a)</num><content><p>a compulsory test, or</p></content></level><level class="para1"><num>(b)</num><content><p>a relevant re-examination that is to be carried out for the purposes of an appeal relating to a determination made on a compulsory test.</p></content></level></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-20-6"><num>(6)</num><content><p>In sub-paragraph (3) (exemption applying where the relevant certificate is refused), after “a vehicle” there shall be inserted “or as a result of a relevant re-examination,”.</p></content></subsection><subsection eId="section-20-7"><num>(7)</num><intro><p>In sub-paragraph (5) (relevant examinations)—</p></intro><level class="para1" eId="section-20-7-a"><num>(a)</num><content><p><mod>for paragraph (a), there shall be substituted the following paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(a)</num><content><p>an examination under regulations under section 49(1)(b) or (c) of the <noteRef href="#m00024" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Road Traffic Act 1988 (examination as to compliance with construction and use or safety requirements)</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="section-20-7-b"><num>(b)</num><content><p>the word “and” shall be inserted at the end of paragraph (b); and</p></content></level><level class="para1" eId="section-20-7-c"><num>(c)</num><content><p>paragraph (c) (examinations for the purpose of an appeal under section 60 of the Road Traffic Act 1988) shall be omitted.</p></content></level></subsection><subsection eId="section-20-8"><num>(8)</num><content><p><mod>After sub-paragraph (6) there shall be inserted the following sub-paragraphs—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(6A)</num><intro><p>In this paragraph “a vehicle weight test” means any examination of a vehicle for which provision is made by regulations under—</p></intro><level class="para1"><num>(a)</num><content><p>section 61A of this Act,</p></content></level><level class="para1"><num>(b)</num><content><p>section 49(1)(a) of the Road Traffic Act 1988 (tests for selecting plated weights and other plated particulars), or</p></content></level><level class="para1"><num>(c)</num><content><p>Article 65(1)(a) of the <noteRef href="#m00025" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Road Traffic (Northern Ireland) Order 1995.</p></content></level></subsection><subsection><num>(6B)</num><content><p>In this paragraph “a relevant re-examination” means any examination or re-examination which is carried out in accordance with any provision or requirement made or imposed for the purposes of an appeal relating to a determination made on a compulsory test or vehicle weight test.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-20-9"><num>(9)</num><intro><p>Subject to section 21(3) below, in sub-paragraph (7) (meaning of “authorised person”)—</p></intro><level class="para1" eId="section-20-9-a"><num>(a)</num><content><p>the word “and” at the end of paragraph (b) shall be omitted;</p></content></level><level class="para1" eId="section-20-9-b"><num>(b)</num><content><p>at the end of paragraph (c) there shall be inserted the word “and”; and</p></content></level><level class="para1" eId="section-20-9-c"><num>(c)</num><content><p><mod>after that paragraph there shall be inserted the following paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(d)</num><intro><p>in the case of a relevant re-examination—</p></intro><level class="para2"><num>(i)</num><content><p>the person to whom the appeal in question is made, or</p></content></level><level class="para2"><num>(ii)</num><content><p>any person who, by virtue of an appointment made by that person, is authorised by or under any enactment to carry out that re-examination.</p></content></level></level></quotedStructure></mod></p></content></level></subsection><subsection eId="section-20-10"><num>(10)</num><content><p>This section shall be deemed to have come into force on 28th November 1995.</p></content></subsection></section><section eId="section-21"><num>21</num><heading>Exemptions for vehicle testing in Northern Ireland</heading><subsection eId="section-21-1"><num>(1)</num><content><p>Paragraph 22 of Schedule 2 to the <noteRef href="#m00026" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Vehicle Excise and Registration Act 1994 (exemption for vehicle testing) shall be further amended as follows.</p></content></subsection><subsection eId="section-21-2"><num>(2)</num><content><p><mod>For sub-paragraph (6) (meaning of “compulsory test” in Northern Ireland) there shall be substituted the following sub-paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><subparagraph><num>(6)</num><intro><p>In this paragraph “compulsory test” means, as respects Northern Ireland—</p></intro><level class="para1"><num>(a)</num><content><p>an examination to obtain a test certificate under Article 61 of the <noteRef href="#m00027" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Road Traffic (Northern Ireland) Order 1995 without which a vehicle licence cannot be obtained for the vehicle,</p></content></level><level class="para1"><num>(b)</num><content><p>an examination to obtain a goods vehicle test certificate under Article 65 of that Order, or</p></content></level><level class="para1"><num>(c)</num><content><p>an examination to obtain a public service vehicle licence under Article 60(1) of the <noteRef href="#m00028" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Road Traffic (Northern Ireland) Order 1981.</p></content></level></subparagraph></quotedStructure></mod></p></content></subsection><subsection eId="section-21-3"><num>(3)</num><content><p><mod>For paragraph (c) of sub-paragraph (7) (as amended by section 20(9) above) there shall be substituted the following paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><level class="para1"><num>(c)</num><content><p>in the case of an examination within sub-paragraph (6), an authorised examiner within the meaning of Article 61(3)(a) of the Road Traffic (Northern Ireland) Order 1995 or a vehicle examiner within the meaning of Part III of that Order; and</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-21-4"><num>(4)</num><content><p><mod>In sub-paragraph (9) (meaning of “relevant certificate” in Northern Ireland), for paragraphs (a) and (b) there shall be substituted the following paragraphs—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><level class="para1"><num>(a)</num><content><p>a test certificate (within the meaning of Article 61(2) of the Road Traffic (Northern Ireland) Order 1995),</p></content></level><level class="para1"><num>(b)</num><content><p>a goods vehicle test certificate (within the meaning of Article 65(2) of that Order), or</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-21-5"><num>(5)</num><content><p>In sub-paragraph (10)(a) (meaning of “relevant work”), the words “(or, in Northern Ireland, a vehicle test certificate)” shall be omitted.</p></content></subsection><subsection eId="section-21-6"><num>(6)</num><content><p>This section shall be deemed to have come into force on the date of the coming into operation of Articles 61 and 65 of the Road Traffic (Northern Ireland) Order 1995 (“the operational date”).</p></content></subsection><subsection eId="section-21-7"><num>(7)</num><content><p>Subsections (2), (4) and (5) above do not have effect in relation to a compulsory test carried out in Northern Ireland before the operational date except for the purpose of construing, in relation to such a test, the reference to a further compulsory test in paragraph 22(10)(a) of Schedule 2 to the Vehicle Excise and Registration Act 1994.</p></content></subsection></section><section eId="section-22"><num>22</num><heading>Other provisions relating to Northern Ireland</heading><subsection eId="section-22-1"><num>(1)</num><content><p>In section 42 of the Vehicle Excise and Registration Act 1994 (not fixing registration mark), in subsection (5)(b), for “Article 34 of the Road Traffic (Northern Ireland) Order 1981” there shall be substituted “Article 63 of the Road Traffic (Northern Ireland) Order 1995”.</p></content></subsection><subsection eId="section-22-2"><num>(2)</num><content><p><mod>In subsection (6) of that section, for paragraph (b) there shall be substituted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(b)</num><content><p>it is being driven for the purposes of, or in connection with, its examination under Article 61 of the <noteRef href="#m00029" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Road Traffic (Northern Ireland) Order 1995 in circumstances in which its use is exempted from paragraph (1) of Article 63 of that Order by regulations under paragraph (6) of that Article.</p></content></level></quotedStructure></mod></p></content></subsection><subsection eId="section-22-3"><num>(3)</num><content><p>In section 60A(11) of that Act (special maximum weight in Northern Ireland), for “Article 29(3) of the <noteRef href="#m00030" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Road Traffic (Northern Ireland) Order 1981” there shall be substituted “Article 60(1) of the Road Traffic (Northern Ireland) Order 1995”.</p></content></subsection><subsection eId="section-22-4"><num>(4)</num><content><p><mod>In section 61(6) of that Act (meaning of “weight unladen”), for paragraph (b) there shall be substituted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(b)</num><content><p>in Northern Ireland, has the same meaning as it has for the purposes of the Road Traffic (Northern Ireland) Order 1995 by virtue of Article 7 of that Order.</p></content></level></quotedStructure></mod></p></content></subsection><subsection eId="section-22-5"><num>(5)</num><content><p><mod>In paragraph 6 of Schedule 1 to that Act (vehicles used for exceptional loads), in sub-paragraph (2) for paragraph (b) there shall be substituted—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><level class="para1"><num>(b)</num><content><p>Article 60 of the Road Traffic (Northern Ireland) Order 1995,</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-22-6"><num>(6)</num><intro><p>In that paragraph—</p></intro><level class="para1" eId="section-22-6-a"><num>(a)</num><content><p>in sub-paragraph (3)(a), for “Article 28 of the Road Traffic (Northern Ireland) Order 1981” there shall be substituted “Article 55 of the Road Traffic (Northern Ireland) Order 1995”; and</p></content></level><level class="para1" eId="section-22-6-b"><num>(b)</num><content><p>in sub-paragraph (4), for “the Road Traffic (Northern Ireland) Order 1981” there shall be substituted “the Road Traffic (Northern Ireland) Order 1995”.</p></content></level></subsection><subsection eId="section-22-7"><num>(7)</num><intro><p>In paragraph 17 of Schedule 3 to that Act (amendments of the Road Traffic (Northern Ireland) Order 1981)—</p></intro><level class="para1" eId="section-22-7-a"><num>(a)</num><content><p>in sub-paragraph (1), “29(2),” and “34(6),” shall be omitted, and</p></content></level><level class="para1" eId="section-22-7-b"><num>(b)</num><content><p>sub-paragraph (2) shall be omitted.</p></content></level></subsection></section><section eId="section-23"><num>23</num><heading>Licensing and registration</heading><content><p>Schedule 2 to this Act (which makes provision in connection with powers conferred on the Secretary of State by the <noteRef href="#m00031" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Vehicle Excise and Registration Act 1994) shall have effect.</p></content></section></hcontainer>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-14"><num>14</num><heading>Increase in general rate</heading><subsection eId="section-14-1"><num>(1)</num><content><p>In Schedule 1 to the <noteRef href="#m00017" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Vehicle Excise and Registration Act 1994 (annual rates of duty), in paragraph 1(2) (the general rate), for “£135” there shall be substituted “£140”.</p></content></subsection><subsection eId="section-14-2"><num>(2)</num><content><p>Subsection (1) above applies in relation to licences taken out after 28th November 1995.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-14-1"><num>(1)</num><content><p>In Schedule 1 to the <noteRef href="#m00017" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Vehicle Excise and Registration Act 1994 (annual rates of duty), in paragraph 1(2) (the general rate), for “£135” there shall be substituted “£140”.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-14-2"><num>(2)</num><content><p>Subsection (1) above applies in relation to licences taken out after 28th November 1995.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-15"><num>15</num><heading>Electrically propelled vehicles</heading><subsection eId="section-15-1"><num>(1)</num><content><p>In Schedule 1 to the Vehicle Excise and Registration Act 1994 (annual rates of duty), in paragraph 2(1)(a) (rate for motorcycles with low cylinder capacity), after “150 cubic centimetres” there shall be inserted “or the motorcycle is an electrically propelled vehicle”.</p></content></subsection><subsection eId="section-15-2"><num>(2)</num><intro><p>In paragraph 4F of that Schedule (electrically propelled vehicles are special concessionary vehicles)—</p></intro><level class="para1" eId="section-15-2-a"><num>(a)</num><content><p>in sub-paragraph (1), after “electrically propelled vehicle” there shall be inserted “other than a motorcycle (within the meaning of Part II of this Schedule)”; and</p></content></level><level class="para1" eId="section-15-2-b"><num>(b)</num><content><p>sub-paragraph (2) shall be omitted.</p></content></level></subsection><subsection eId="section-15-3"><num>(3)</num><content><p><mod>In section 62 of that Act (definitions), after subsection (1) there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1A)</num><intro><p>For the purposes of this Act, a vehicle is not an electrically propelled vehicle unless the electrical motive power is derived from—</p></intro><level class="para1"><num>(a)</num><content><p>a source external to the vehicle, or</p></content></level><level class="para1"><num>(b)</num><content><p>an electrical storage battery which is not connected to any source of power when the vehicle is in motion.</p></content></level></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-15-4"><num>(4)</num><content><p>Subsections (1) to (3) above apply in relation to licences taken out after 28th November 1995.</p></content></subsection><subsection eId="section-15-5"><num>(5)</num><content><p><mod>In Schedule 2 to that Act (exemptions), after paragraph 2 there shall be inserted the following paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><hcontainer name="crossheading" ukl:Name="Pblock"><heading>Electrically assisted pedal cycles</heading><paragraph class="schProv1"><num>2A</num><subparagraph><num>(1)</num><content><p>An electrically assisted pedal cycle is an exempt vehicle.</p></content></subparagraph><subparagraph><num>(2)</num><content><p>For the purposes of sub-paragraph (1) an electrically assisted pedal cycle is a vehicle of a class complying with such requirements as may be prescribed by regulations made by the Secretary of State for the purposes of this paragraph.</p></content></subparagraph></paragraph></hcontainer></quotedStructure></mod></p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-15-1"><num>(1)</num><content><p>In Schedule 1 to the Vehicle Excise and Registration Act 1994 (annual rates of duty), in paragraph 2(1)(a) (rate for motorcycles with low cylinder capacity), after “150 cubic centimetres” there shall be inserted “or the motorcycle is an electrically propelled vehicle”.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-15-2"><num>(2)</num><intro><p>In paragraph 4F of that Schedule (electrically propelled vehicles are special concessionary vehicles)—</p></intro><level class="para1" eId="section-15-2-a"><num>(a)</num><content><p>in sub-paragraph (1), after “electrically propelled vehicle” there shall be inserted “other than a motorcycle (within the meaning of Part II of this Schedule)”; and</p></content></level><level class="para1" eId="section-15-2-b"><num>(b)</num><content><p>sub-paragraph (2) shall be omitted.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-15-2-a"><num>(a)</num><content><p>in sub-paragraph (1), after “electrically propelled vehicle” there shall be inserted “other than a motorcycle (within the meaning of Part II of this Schedule)”; and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-15-2-b"><num>(b)</num><content><p>sub-paragraph (2) shall be omitted.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-15-3"><num>(3)</num><content><p><mod>In section 62 of that Act (definitions), after subsection (1) there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1A)</num><intro><p>For the purposes of this Act, a vehicle is not an electrically propelled vehicle unless the electrical motive power is derived from—</p></intro><level class="para1"><num>(a)</num><content><p>a source external to the vehicle, or</p></content></level><level class="para1"><num>(b)</num><content><p>an electrical storage battery which is not connected to any source of power when the vehicle is in motion.</p></content></level></subsection></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-15-4"><num>(4)</num><content><p>Subsections (1) to (3) above apply in relation to licences taken out after 28th November 1995.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-15-5"><num>(5)</num><content><p><mod>In Schedule 2 to that Act (exemptions), after paragraph 2 there shall be inserted the following paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><hcontainer name="crossheading" ukl:Name="Pblock"><heading>Electrically assisted pedal cycles</heading><paragraph class="schProv1"><num>2A</num><subparagraph><num>(1)</num><content><p>An electrically assisted pedal cycle is an exempt vehicle.</p></content></subparagraph><subparagraph><num>(2)</num><content><p>For the purposes of sub-paragraph (1) an electrically assisted pedal cycle is a vehicle of a class complying with such requirements as may be prescribed by regulations made by the Secretary of State for the purposes of this paragraph.</p></content></subparagraph></paragraph></hcontainer></quotedStructure></mod></p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-16"><num>16</num><heading>Steam powered vehicles etc</heading><subsection eId="section-16-1"><num>(1)</num><content><p><mod>In Schedule 1 to the Vehicle Excise and Registration Act 1994 (annual rates of duty), after paragraph 4E there shall be inserted the following paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><paragraph class="schProv1"><num>4EE</num><content><p>A steam powered vehicle is a special concessionary vehicle.</p></content></paragraph></quotedStructure></mod></p></content></subsection><subsection eId="section-16-2"><num>(2)</num><content><p>In paragraph 3 of that Schedule (buses), in sub-paragraph (2)(b) (vehicles which are not buses), after “excepted vehicle” there shall be inserted “or a special concessionary vehicle”.</p></content></subsection><subsection eId="section-16-3"><num>(3)</num><content><p>In paragraph 4(2) of that Schedule (meaning of “special vehicle”), for “and is” there shall be substituted “which is not a special concessionary vehicle and which is”.</p></content></subsection><subsection eId="section-16-4"><num>(4)</num><content><p><mod>In paragraph 5 of that Schedule (recovery vehicles), after sub-paragraph (5) there shall be inserted the following sub-paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><subparagraph><num>(5A)</num><content><p>A vehicle is not a recovery vehicle if it is a special concessionary vehicle.</p></content></subparagraph></quotedStructure></mod></p></content></subsection><subsection eId="section-16-5"><num>(5)</num><content><p><mod>In paragraph 6(1) of that Schedule (vehicles used for exceptional loads), after paragraph (b) there shall be inserted—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><p>and which is not a special concessionary vehicle.</p></quotedStructure></mod></p></content></subsection><subsection eId="section-16-6"><num>(6)</num><content><p>In paragraph 7(2) of that Schedule (meaning of “haulage vehicle”), after “Part IV,” there shall be inserted “IVA,”.</p></content></subsection><subsection eId="section-16-7"><num>(7)</num><content><p>In paragraph 16 of that Schedule (application of Part VIII of the Schedule), in sub-paragraph (1)(a), after “Part II, IV,” there shall be inserted “IVA,”.</p></content></subsection><subsection eId="section-16-8"><num>(8)</num><content><p>This section applies in relation to licences taken out after 28th November 1995.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-16-1"><num>(1)</num><content><p><mod>In Schedule 1 to the Vehicle Excise and Registration Act 1994 (annual rates of duty), after paragraph 4E there shall be inserted the following paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><paragraph class="schProv1"><num>4EE</num><content><p>A steam powered vehicle is a special concessionary vehicle.</p></content></paragraph></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-16-2"><num>(2)</num><content><p>In paragraph 3 of that Schedule (buses), in sub-paragraph (2)(b) (vehicles which are not buses), after “excepted vehicle” there shall be inserted “or a special concessionary vehicle”.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-16-3"><num>(3)</num><content><p>In paragraph 4(2) of that Schedule (meaning of “special vehicle”), for “and is” there shall be substituted “which is not a special concessionary vehicle and which is”.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-16-4"><num>(4)</num><content><p><mod>In paragraph 5 of that Schedule (recovery vehicles), after sub-paragraph (5) there shall be inserted the following sub-paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><subparagraph><num>(5A)</num><content><p>A vehicle is not a recovery vehicle if it is a special concessionary vehicle.</p></content></subparagraph></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-16-5"><num>(5)</num><content><p><mod>In paragraph 6(1) of that Schedule (vehicles used for exceptional loads), after paragraph (b) there shall be inserted—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><p>and which is not a special concessionary vehicle.</p></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-16-6"><num>(6)</num><content><p>In paragraph 7(2) of that Schedule (meaning of “haulage vehicle”), after “Part IV,” there shall be inserted “IVA,”.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-16-7"><num>(7)</num><content><p>In paragraph 16 of that Schedule (application of Part VIII of the Schedule), in sub-paragraph (1)(a), after “Part II, IV,” there shall be inserted “IVA,”.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-16-8"><num>(8)</num><content><p>This section applies in relation to licences taken out after 28th November 1995.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-17"><num>17</num><heading>Vehicles capable of conveying loads</heading><subsection eId="section-17-1"><num>(1)</num><content><p>Schedule 1 to the <noteRef href="#m00018" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Vehicle Excise and Registration Act 1994 (annual rates of duty) shall be amended in accordance with subsections (2) to (8) below.</p></content></subsection><subsection eId="section-17-2"><num>(2)</num><content><p><mod>In paragraph 4(2) (meaning of “special vehicle”), immediately before paragraph (c) there shall be inserted the following paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><level class="para1"><num>(bb)</num><content><p>a vehicle falling within sub-paragraph (2A) or (2B),</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-17-3"><num>(3)</num><content><p><mod>After sub-paragraph (2) of paragraph 4 there shall be inserted the following sub-paragraphs—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><subparagraph><num>(2A)</num><intro><p>A vehicle falls within this sub-paragraph if—</p></intro><level class="para1"><num>(a)</num><content><p>it is designed or adapted for use for the conveyance of goods or burden of any description; but</p></content></level><level class="para1"><num>(b)</num><content><p>it is not so used or is not so used for hire or reward or for or in connection with a trade or business.</p></content></level></subparagraph><subparagraph><num>(2B)</num><intro><p>A vehicle falls within this sub-paragraph if—</p></intro><level class="para1"><num>(a)</num><content><p>it is designed or adapted for use with a semi-trailer attached; but</p></content></level><level class="para1"><num>(b)</num><content><p>it is not so used or, if it is so used, the semi-trailer is not used for the conveyance of goods or burden of any description.</p></content></level></subparagraph></quotedStructure></mod></p></content></subsection><subsection eId="section-17-4"><num>(4)</num><content><p><mod>In paragraph 9(2) (rigid goods vehicles which are subject to basic goods vehicle rate), after paragraph (b) there shall be inserted <quotedText startQuote="“">and</quotedText><quotedStructure endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><level class="para1"><num>(c)</num><content><p>to any rigid goods vehicle which is used loaded only in connection with a person learning to drive the vehicle or taking a driving test,</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-17-5"><num>(5)</num><content><p>In paragraph 10(1) (trailer supplement), after “exceeding 12,000 kilograms” there shall be inserted “, which does not fall within paragraph 9(2)(b) or (c)”.</p></content></subsection><subsection eId="section-17-6"><num>(6)</num><content><p><mod>In paragraph 11(2) (tractive units which are subject to basic goods vehicle rate), after paragraph (b) there shall be inserted <quotedText startQuote="“">and</quotedText><quotedStructure endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><level class="para1"><num>(c)</num><content><p>to any tractive unit to which a semi-trailer is attached which is used loaded only in connection with a person learning to drive the tractive unit or taking a driving test,</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-17-7"><num>(7)</num><content><p>In paragraph 16(1) (cases where Part VIII of Schedule 1 does not apply), paragraph (b), and the word “or” immediately preceding it, shall be omitted.</p></content></subsection><subsection eId="section-17-8"><num>(8)</num><content><p><mod>After paragraph 18 there shall be inserted the following paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><hcontainer name="crossheading" ukl:Name="Pblock"><heading>Other expressions</heading><paragraph class="schProv1"><num>19</num><subparagraph><num>(1)</num><content><p>In this Part “driving test” means any test of competence to drive mentioned in section 89(1) of the <noteRef href="#m00019" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Road Traffic Act 1988.</p></content></subparagraph><subparagraph><num>(2)</num><content><p>For the purposes of this Part a vehicle or a semi-trailer is used loaded if the vehicle or, as the case may be, the semi-trailer is used for the conveyance of goods or burden of any description.</p></content></subparagraph></paragraph></hcontainer></quotedStructure></mod></p></content></subsection><subsection eId="section-17-9"><num>(9)</num><intro><p>In section 7 of the <noteRef href="#m00020" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Vehicle Excise and Registration Act 1994 (issue of licences), in subsection (2) (declarations and particulars in relation to goods vehicles)—</p></intro><level class="para1" eId="section-17-9-a"><num>(a)</num><content><p>after “goods vehicle” there shall be inserted “or a special vehicle”; and</p></content></level><level class="para1" eId="section-17-9-b"><num>(b)</num><content><p>after “goods vehicles” there shall be inserted “or, as the case may be, special vehicles”.</p></content></level></subsection><subsection eId="section-17-10"><num>(10)</num><content><p><mod>After subsection (7) of that section there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(8)</num><content><p>In this section “special vehicle” has the same meaning as in paragraph 4 of Schedule 1.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-17-11"><num>(11)</num><content><p>Subject to subsection (13) below, subsections (1) to (8) above apply in relation to licences taken out after 28th November 1995.</p></content></subsection><subsection eId="section-17-12"><num>(12)</num><intro><p>Subsection (13) below applies where a vehicle licence is taken out—</p></intro><level class="para1" eId="section-17-12-a"><num>(a)</num><content><p>on or before 28th November 1995, and</p></content></level><level class="para1" eId="section-17-12-b"><num>(b)</num><content><p>at the rate applicable (at the time it is taken out) under Schedule 1 to the Vehicle Excise and Registration Act 1994.</p></content></level></subsection><subsection eId="section-17-13"><num>(13)</num><content><p>While the licence is in force duty shall not, by virtue of this section, become chargeable under section 15 of that Act (vehicle used in manner attracting higher rate).</p></content></subsection><subsection eId="section-17-14"><num>(14)</num><content><p>Subsections (9) and (10) above apply in relation to applications made after 28th November 1995.</p></content></subsection><subsection eId="section-17-15"><num>(15)</num><content><p>Paragraph 15 of Schedule 1 to that Act (which is unnecessary) shall be omitted.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-17-1"><num>(1)</num><content><p>Schedule 1 to the <noteRef href="#m00018" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Vehicle Excise and Registration Act 1994 (annual rates of duty) shall be amended in accordance with subsections (2) to (8) below.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-17-2"><num>(2)</num><content><p><mod>In paragraph 4(2) (meaning of “special vehicle”), immediately before paragraph (c) there shall be inserted the following paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><level class="para1"><num>(bb)</num><content><p>a vehicle falling within sub-paragraph (2A) or (2B),</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-17-3"><num>(3)</num><content><p><mod>After sub-paragraph (2) of paragraph 4 there shall be inserted the following sub-paragraphs—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><subparagraph><num>(2A)</num><intro><p>A vehicle falls within this sub-paragraph if—</p></intro><level class="para1"><num>(a)</num><content><p>it is designed or adapted for use for the conveyance of goods or burden of any description; but</p></content></level><level class="para1"><num>(b)</num><content><p>it is not so used or is not so used for hire or reward or for or in connection with a trade or business.</p></content></level></subparagraph><subparagraph><num>(2B)</num><intro><p>A vehicle falls within this sub-paragraph if—</p></intro><level class="para1"><num>(a)</num><content><p>it is designed or adapted for use with a semi-trailer attached; but</p></content></level><level class="para1"><num>(b)</num><content><p>it is not so used or, if it is so used, the semi-trailer is not used for the conveyance of goods or burden of any description.</p></content></level></subparagraph></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-17-4"><num>(4)</num><content><p><mod>In paragraph 9(2) (rigid goods vehicles which are subject to basic goods vehicle rate), after paragraph (b) there shall be inserted <quotedText startQuote="“">and</quotedText><quotedStructure endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><level class="para1"><num>(c)</num><content><p>to any rigid goods vehicle which is used loaded only in connection with a person learning to drive the vehicle or taking a driving test,</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-17-5"><num>(5)</num><content><p>In paragraph 10(1) (trailer supplement), after “exceeding 12,000 kilograms” there shall be inserted “, which does not fall within paragraph 9(2)(b) or (c)”.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-17-6"><num>(6)</num><content><p><mod>In paragraph 11(2) (tractive units which are subject to basic goods vehicle rate), after paragraph (b) there shall be inserted <quotedText startQuote="“">and</quotedText><quotedStructure endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><level class="para1"><num>(c)</num><content><p>to any tractive unit to which a semi-trailer is attached which is used loaded only in connection with a person learning to drive the tractive unit or taking a driving test,</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-17-7"><num>(7)</num><content><p>In paragraph 16(1) (cases where Part VIII of Schedule 1 does not apply), paragraph (b), and the word “or” immediately preceding it, shall be omitted.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-17-8"><num>(8)</num><content><p><mod>After paragraph 18 there shall be inserted the following paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><hcontainer name="crossheading" ukl:Name="Pblock"><heading>Other expressions</heading><paragraph class="schProv1"><num>19</num><subparagraph><num>(1)</num><content><p>In this Part “driving test” means any test of competence to drive mentioned in section 89(1) of the <noteRef href="#m00019" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Road Traffic Act 1988.</p></content></subparagraph><subparagraph><num>(2)</num><content><p>For the purposes of this Part a vehicle or a semi-trailer is used loaded if the vehicle or, as the case may be, the semi-trailer is used for the conveyance of goods or burden of any description.</p></content></subparagraph></paragraph></hcontainer></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-17-9"><num>(9)</num><intro><p>In section 7 of the <noteRef href="#m00020" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Vehicle Excise and Registration Act 1994 (issue of licences), in subsection (2) (declarations and particulars in relation to goods vehicles)—</p></intro><level class="para1" eId="section-17-9-a"><num>(a)</num><content><p>after “goods vehicle” there shall be inserted “or a special vehicle”; and</p></content></level><level class="para1" eId="section-17-9-b"><num>(b)</num><content><p>after “goods vehicles” there shall be inserted “or, as the case may be, special vehicles”.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-17-9-a"><num>(a)</num><content><p>after “goods vehicle” there shall be inserted “or a special vehicle”; and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-17-9-b"><num>(b)</num><content><p>after “goods vehicles” there shall be inserted “or, as the case may be, special vehicles”.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-17-10"><num>(10)</num><content><p><mod>After subsection (7) of that section there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(8)</num><content><p>In this section “special vehicle” has the same meaning as in paragraph 4 of Schedule 1.</p></content></subsection></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-17-11"><num>(11)</num><content><p>Subject to subsection (13) below, subsections (1) to (8) above apply in relation to licences taken out after 28th November 1995.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-17-12"><num>(12)</num><intro><p>Subsection (13) below applies where a vehicle licence is taken out—</p></intro><level class="para1" eId="section-17-12-a"><num>(a)</num><content><p>on or before 28th November 1995, and</p></content></level><level class="para1" eId="section-17-12-b"><num>(b)</num><content><p>at the rate applicable (at the time it is taken out) under Schedule 1 to the Vehicle Excise and Registration Act 1994.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-17-12-a"><num>(a)</num><content><p>on or before 28th November 1995, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-17-12-b"><num>(b)</num><content><p>at the rate applicable (at the time it is taken out) under Schedule 1 to the Vehicle Excise and Registration Act 1994.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-17-13"><num>(13)</num><content><p>While the licence is in force duty shall not, by virtue of this section, become chargeable under section 15 of that Act (vehicle used in manner attracting higher rate).</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-17-14"><num>(14)</num><content><p>Subsections (9) and (10) above apply in relation to applications made after 28th November 1995.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-17-15"><num>(15)</num><content><p>Paragraph 15 of Schedule 1 to that Act (which is unnecessary) shall be omitted.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-18"><num>18</num><heading>Old vehicles</heading><subsection eId="section-18-1"><num>(1)</num><content><p><mod>In Schedule 2 to the <noteRef href="#m00021" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Vehicle Excise and Registration Act 1994 (exempt vehicles), immediately before paragraph 2 there shall be inserted the following paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><hcontainer name="crossheading" ukl:Name="Pblock"><heading>Old vehicles</heading><paragraph class="schProv1"><num>1A</num><subparagraph><num>(1)</num><content><p>A vehicle of a description mentioned in sub-paragraph (2) is an exempt vehicle at any time if it was constructed more than 25 years before the beginning of the year in which that time falls.</p></content></subparagraph><subparagraph><num>(2)</num><intro><p>The descriptions of vehicles are—</p></intro><level class="para1"><num>(a)</num><content><p>a vehicle in respect of which no annual rate is specified by any provision of Parts II to VIII of Schedule 1;</p></content></level><level class="para1"><num>(b)</num><content><p>a motorcycle which does not exceed 450 kilograms in weight unladen.</p></content></level></subparagraph><subparagraph><num>(3)</num><content><p>In sub-paragraph (2)(b) “motorcycle” has the same meaning as in Part II of Schedule 1.</p></content></subparagraph></paragraph></hcontainer></quotedStructure></mod></p></content></subsection><subsection eId="section-18-2"><num>(2)</num><intro><p>In Schedule 1 to that Act (annual rates of duty), in paragraph 1 (rate for vehicle for which no other rate is specified)—</p></intro><level class="para1" eId="section-18-2-a"><num>(a)</num><content><p>for paragraphs (a) and (b) of sub-paragraph (1) there shall be substituted “the general rate”; and</p></content></level><level class="para1" eId="section-18-2-b"><num>(b)</num><content><p>sub-paragraphs (3) to (5) shall be omitted;</p></content></level><wrapUp><p>and, in paragraph 2 (motorcycles), sub-paragraph (2) shall be omitted.</p></wrapUp></subsection><subsection eId="section-18-3"><num>(3)</num><content><p>In section 2(4) of that Act (rate of duty for vehicle not currently in use and for which no previous licence issued), for the words from “whichever” to the end there shall be substituted “the general rate currently specified in paragraph 1(2) of Schedule 1”.</p></content></subsection><subsection eId="section-18-4"><num>(4)</num><intro><p>In that Act—</p></intro><level class="para1" eId="section-18-4-a"><num>(a)</num><content><p>in section 13 (trade licences), in subsection (3)(b),</p></content></level><level class="para1" eId="section-18-4-b"><num>(b)</num><content><p>in section 13 as substituted under paragraph 8 of Schedule 4, in subsection (4)(b), and</p></content></level><level class="para1" eId="section-18-4-c"><num>(c)</num><content><p>in section 36(3)(b) (additional liability where cheque dishonoured),</p></content></level><wrapUp><p>for “1(1)(a)” there shall be substituted “1”.</p></wrapUp></subsection><subsection eId="section-18-5"><num>(5)</num><content><p>This section has effect in relation to times after 28th November 1995.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-18-1"><num>(1)</num><content><p><mod>In Schedule 2 to the <noteRef href="#m00021" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Vehicle Excise and Registration Act 1994 (exempt vehicles), immediately before paragraph 2 there shall be inserted the following paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><hcontainer name="crossheading" ukl:Name="Pblock"><heading>Old vehicles</heading><paragraph class="schProv1"><num>1A</num><subparagraph><num>(1)</num><content><p>A vehicle of a description mentioned in sub-paragraph (2) is an exempt vehicle at any time if it was constructed more than 25 years before the beginning of the year in which that time falls.</p></content></subparagraph><subparagraph><num>(2)</num><intro><p>The descriptions of vehicles are—</p></intro><level class="para1"><num>(a)</num><content><p>a vehicle in respect of which no annual rate is specified by any provision of Parts II to VIII of Schedule 1;</p></content></level><level class="para1"><num>(b)</num><content><p>a motorcycle which does not exceed 450 kilograms in weight unladen.</p></content></level></subparagraph><subparagraph><num>(3)</num><content><p>In sub-paragraph (2)(b) “motorcycle” has the same meaning as in Part II of Schedule 1.</p></content></subparagraph></paragraph></hcontainer></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-18-2"><num>(2)</num><intro><p>In Schedule 1 to that Act (annual rates of duty), in paragraph 1 (rate for vehicle for which no other rate is specified)—</p></intro><level class="para1" eId="section-18-2-a"><num>(a)</num><content><p>for paragraphs (a) and (b) of sub-paragraph (1) there shall be substituted “the general rate”; and</p></content></level><level class="para1" eId="section-18-2-b"><num>(b)</num><content><p>sub-paragraphs (3) to (5) shall be omitted;</p></content></level><wrapUp><p>and, in paragraph 2 (motorcycles), sub-paragraph (2) shall be omitted.</p></wrapUp></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-18-2-a"><num>(a)</num><content><p>for paragraphs (a) and (b) of sub-paragraph (1) there shall be substituted “the general rate”; and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-18-2-b"><num>(b)</num><content><p>sub-paragraphs (3) to (5) shall be omitted;</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-18-3"><num>(3)</num><content><p>In section 2(4) of that Act (rate of duty for vehicle not currently in use and for which no previous licence issued), for the words from “whichever” to the end there shall be substituted “the general rate currently specified in paragraph 1(2) of Schedule 1”.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-18-4"><num>(4)</num><intro><p>In that Act—</p></intro><level class="para1" eId="section-18-4-a"><num>(a)</num><content><p>in section 13 (trade licences), in subsection (3)(b),</p></content></level><level class="para1" eId="section-18-4-b"><num>(b)</num><content><p>in section 13 as substituted under paragraph 8 of Schedule 4, in subsection (4)(b), and</p></content></level><level class="para1" eId="section-18-4-c"><num>(c)</num><content><p>in section 36(3)(b) (additional liability where cheque dishonoured),</p></content></level><wrapUp><p>for “1(1)(a)” there shall be substituted “1”.</p></wrapUp></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-18-4-a"><num>(a)</num><content><p>in section 13 (trade licences), in subsection (3)(b),</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-18-4-b"><num>(b)</num><content><p>in section 13 as substituted under paragraph 8 of Schedule 4, in subsection (4)(b), and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-18-4-c"><num>(c)</num><content><p>in section 36(3)(b) (additional liability where cheque dishonoured),</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-18-5"><num>(5)</num><content><p>This section has effect in relation to times after 28th November 1995.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-19"><num>19</num><heading>Old vehicles: further provisions</heading><subsection eId="section-19-1"><num>(1)</num><content><p><mod>In Schedule 2 to the <noteRef href="#m00022" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Vehicle Excise and Registration Act 1994 (exempt vehicles), for paragraph 1A (inserted by section 18 above) there shall be substituted the following paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><hcontainer name="crossheading" ukl:Name="Pblock"><heading>Old vehicles</heading><paragraph class="schProv1"><num>1A</num><subparagraph><num>(1)</num><content><p>Subject to sub-paragraph (2), a vehicle is an exempt vehicle at any time if it was constructed more than 25 years before the beginning of the year in which that time falls.</p></content></subparagraph><subparagraph><num>(2)</num><intro><p>A vehicle is not an exempt vehicle by virtue of sub-paragraph (1) if—</p></intro><level class="para1"><num>(a)</num><content><p>an annual rate is specified in respect of it by any provision of Part III, V, VI, VII or VIII of Schedule 1; or</p></content></level><level class="para1"><num>(b)</num><intro><p>it is a special vehicle, within the meaning of Part IV of Schedule 1, which—</p></intro><level class="para2"><num>(i)</num><content><p>falls within sub-paragraph (3) or (4); and</p></content></level><level class="para2"><num>(ii)</num><content><p>is not a digging machine, mobile crane, works truck or road roller.</p></content></level></level></subparagraph><subparagraph><num>(3)</num><intro><p>A vehicle falls within this sub-paragraph if—</p></intro><level class="para1"><num>(a)</num><content><p>it is designed or adapted for use for the conveyance of goods or burden of any description;</p></content></level><level class="para1"><num>(b)</num><content><p>it is put to a commercial use on a public road; and</p></content></level><level class="para1"><num>(c)</num><content><p>that use is not a use for the conveyance of goods or burden of any description.</p></content></level></subparagraph><subparagraph><num>(4)</num><intro><p>A vehicle falls within this sub-paragraph if—</p></intro><level class="para1"><num>(a)</num><content><p>it is designed or adapted for use with a semi-trailer attached;</p></content></level><level class="para1"><num>(b)</num><content><p>it is put to a commercial use on a public road; and</p></content></level><level class="para1"><num>(c)</num><content><p>in a case where that use is a use with a semi-trailer attached, the semi-trailer is not used for the conveyance of goods or burden of any description.</p></content></level></subparagraph><subparagraph><num>(5)</num><content><p>In sub-paragraph (2) “digging machine”, “mobile crane” and “works truck” have the same meanings as in paragraph 4 of Schedule 1.</p></content></subparagraph><subparagraph><num>(6)</num><content><p>In sub-paragraphs (3) and (4) “commercial use” means use for hire or reward or for or in connection with a trade or business.</p></content></subparagraph></paragraph></hcontainer></quotedStructure></mod></p></content></subsection><subsection eId="section-19-2"><num>(2)</num><content><p>This section has effect in relation to times on or after 1st June 1996.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-19-1"><num>(1)</num><content><p><mod>In Schedule 2 to the <noteRef href="#m00022" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Vehicle Excise and Registration Act 1994 (exempt vehicles), for paragraph 1A (inserted by section 18 above) there shall be substituted the following paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><hcontainer name="crossheading" ukl:Name="Pblock"><heading>Old vehicles</heading><paragraph class="schProv1"><num>1A</num><subparagraph><num>(1)</num><content><p>Subject to sub-paragraph (2), a vehicle is an exempt vehicle at any time if it was constructed more than 25 years before the beginning of the year in which that time falls.</p></content></subparagraph><subparagraph><num>(2)</num><intro><p>A vehicle is not an exempt vehicle by virtue of sub-paragraph (1) if—</p></intro><level class="para1"><num>(a)</num><content><p>an annual rate is specified in respect of it by any provision of Part III, V, VI, VII or VIII of Schedule 1; or</p></content></level><level class="para1"><num>(b)</num><intro><p>it is a special vehicle, within the meaning of Part IV of Schedule 1, which—</p></intro><level class="para2"><num>(i)</num><content><p>falls within sub-paragraph (3) or (4); and</p></content></level><level class="para2"><num>(ii)</num><content><p>is not a digging machine, mobile crane, works truck or road roller.</p></content></level></level></subparagraph><subparagraph><num>(3)</num><intro><p>A vehicle falls within this sub-paragraph if—</p></intro><level class="para1"><num>(a)</num><content><p>it is designed or adapted for use for the conveyance of goods or burden of any description;</p></content></level><level class="para1"><num>(b)</num><content><p>it is put to a commercial use on a public road; and</p></content></level><level class="para1"><num>(c)</num><content><p>that use is not a use for the conveyance of goods or burden of any description.</p></content></level></subparagraph><subparagraph><num>(4)</num><intro><p>A vehicle falls within this sub-paragraph if—</p></intro><level class="para1"><num>(a)</num><content><p>it is designed or adapted for use with a semi-trailer attached;</p></content></level><level class="para1"><num>(b)</num><content><p>it is put to a commercial use on a public road; and</p></content></level><level class="para1"><num>(c)</num><content><p>in a case where that use is a use with a semi-trailer attached, the semi-trailer is not used for the conveyance of goods or burden of any description.</p></content></level></subparagraph><subparagraph><num>(5)</num><content><p>In sub-paragraph (2) “digging machine”, “mobile crane” and “works truck” have the same meanings as in paragraph 4 of Schedule 1.</p></content></subparagraph><subparagraph><num>(6)</num><content><p>In sub-paragraphs (3) and (4) “commercial use” means use for hire or reward or for or in connection with a trade or business.</p></content></subparagraph></paragraph></hcontainer></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-19-2"><num>(2)</num><content><p>This section has effect in relation to times on or after 1st June 1996.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-20"><num>20</num><heading>Exemptions for vehicle testing: general</heading><subsection eId="section-20-1"><num>(1)</num><content><p>Paragraph 22 of Schedule 2 to the <noteRef href="#m00023" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Vehicle Excise and Registration Act 1994 (exemption for vehicle testing) shall be amended as follows.</p></content></subsection><subsection eId="section-20-2"><num>(2)</num><content><p>In sub-paragraph (1) (use for the purposes of submitting a vehicle to, or bringing it away from, a compulsory test), after the words “compulsory test”, in each place where they occur, there shall be inserted “or a vehicle weight test”.</p></content></subsection><subsection eId="section-20-3"><num>(3)</num><content><p><mod>After sub-paragraph (1) there shall be inserted the following sub-paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><subparagraph><num>(1A)</num><intro><p>A vehicle is an exempt vehicle when it is being used solely for the purpose of—</p></intro><level class="para1"><num>(a)</num><content><p>taking it (by previous arrangement for a specified time on a specified date) for a relevant re-examination, or</p></content></level><level class="para1"><num>(b)</num><content><p>bringing it away from such a re-examination.</p></content></level></subparagraph></quotedStructure></mod></p></content></subsection><subsection eId="section-20-4"><num>(4)</num><intro><p>In sub-paragraph (2) (use by an authorised person in the course of compulsory test)—</p></intro><level class="para1" eId="section-20-4-a"><num>(a)</num><content><p>after “compulsory test” there shall be inserted “, a vehicle weight test or a relevant re-examination and is being so used”; and</p></content></level><level class="para1" eId="section-20-4-b"><num>(b)</num><content><p>in paragraphs (a) and (b), after the words “the test”, in each place where they occur, there shall be inserted “or re-examination”.</p></content></level></subsection><subsection eId="section-20-5"><num>(5)</num><content><p><mod>After sub-paragraph (2) there shall be inserted the following sub-paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(2A)</num><intro><p>A vehicle is an exempt vehicle when it is being used by an authorised person solely for the purpose of warming up its engine in preparation for the carrying out of—</p></intro><level class="para1"><num>(a)</num><content><p>a compulsory test, or</p></content></level><level class="para1"><num>(b)</num><content><p>a relevant re-examination that is to be carried out for the purposes of an appeal relating to a determination made on a compulsory test.</p></content></level></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-20-6"><num>(6)</num><content><p>In sub-paragraph (3) (exemption applying where the relevant certificate is refused), after “a vehicle” there shall be inserted “or as a result of a relevant re-examination,”.</p></content></subsection><subsection eId="section-20-7"><num>(7)</num><intro><p>In sub-paragraph (5) (relevant examinations)—</p></intro><level class="para1" eId="section-20-7-a"><num>(a)</num><content><p><mod>for paragraph (a), there shall be substituted the following paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(a)</num><content><p>an examination under regulations under section 49(1)(b) or (c) of the <noteRef href="#m00024" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Road Traffic Act 1988 (examination as to compliance with construction and use or safety requirements)</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="section-20-7-b"><num>(b)</num><content><p>the word “and” shall be inserted at the end of paragraph (b); and</p></content></level><level class="para1" eId="section-20-7-c"><num>(c)</num><content><p>paragraph (c) (examinations for the purpose of an appeal under section 60 of the Road Traffic Act 1988) shall be omitted.</p></content></level></subsection><subsection eId="section-20-8"><num>(8)</num><content><p><mod>After sub-paragraph (6) there shall be inserted the following sub-paragraphs—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(6A)</num><intro><p>In this paragraph “a vehicle weight test” means any examination of a vehicle for which provision is made by regulations under—</p></intro><level class="para1"><num>(a)</num><content><p>section 61A of this Act,</p></content></level><level class="para1"><num>(b)</num><content><p>section 49(1)(a) of the Road Traffic Act 1988 (tests for selecting plated weights and other plated particulars), or</p></content></level><level class="para1"><num>(c)</num><content><p>Article 65(1)(a) of the <noteRef href="#m00025" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Road Traffic (Northern Ireland) Order 1995.</p></content></level></subsection><subsection><num>(6B)</num><content><p>In this paragraph “a relevant re-examination” means any examination or re-examination which is carried out in accordance with any provision or requirement made or imposed for the purposes of an appeal relating to a determination made on a compulsory test or vehicle weight test.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-20-9"><num>(9)</num><intro><p>Subject to section 21(3) below, in sub-paragraph (7) (meaning of “authorised person”)—</p></intro><level class="para1" eId="section-20-9-a"><num>(a)</num><content><p>the word “and” at the end of paragraph (b) shall be omitted;</p></content></level><level class="para1" eId="section-20-9-b"><num>(b)</num><content><p>at the end of paragraph (c) there shall be inserted the word “and”; and</p></content></level><level class="para1" eId="section-20-9-c"><num>(c)</num><content><p><mod>after that paragraph there shall be inserted the following paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(d)</num><intro><p>in the case of a relevant re-examination—</p></intro><level class="para2"><num>(i)</num><content><p>the person to whom the appeal in question is made, or</p></content></level><level class="para2"><num>(ii)</num><content><p>any person who, by virtue of an appointment made by that person, is authorised by or under any enactment to carry out that re-examination.</p></content></level></level></quotedStructure></mod></p></content></level></subsection><subsection eId="section-20-10"><num>(10)</num><content><p>This section shall be deemed to have come into force on 28th November 1995.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-20-1"><num>(1)</num><content><p>Paragraph 22 of Schedule 2 to the <noteRef href="#m00023" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Vehicle Excise and Registration Act 1994 (exemption for vehicle testing) shall be amended as follows.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-20-2"><num>(2)</num><content><p>In sub-paragraph (1) (use for the purposes of submitting a vehicle to, or bringing it away from, a compulsory test), after the words “compulsory test”, in each place where they occur, there shall be inserted “or a vehicle weight test”.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-20-3"><num>(3)</num><content><p><mod>After sub-paragraph (1) there shall be inserted the following sub-paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><subparagraph><num>(1A)</num><intro><p>A vehicle is an exempt vehicle when it is being used solely for the purpose of—</p></intro><level class="para1"><num>(a)</num><content><p>taking it (by previous arrangement for a specified time on a specified date) for a relevant re-examination, or</p></content></level><level class="para1"><num>(b)</num><content><p>bringing it away from such a re-examination.</p></content></level></subparagraph></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-20-4"><num>(4)</num><intro><p>In sub-paragraph (2) (use by an authorised person in the course of compulsory test)—</p></intro><level class="para1" eId="section-20-4-a"><num>(a)</num><content><p>after “compulsory test” there shall be inserted “, a vehicle weight test or a relevant re-examination and is being so used”; and</p></content></level><level class="para1" eId="section-20-4-b"><num>(b)</num><content><p>in paragraphs (a) and (b), after the words “the test”, in each place where they occur, there shall be inserted “or re-examination”.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-20-4-a"><num>(a)</num><content><p>after “compulsory test” there shall be inserted “, a vehicle weight test or a relevant re-examination and is being so used”; and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-20-4-b"><num>(b)</num><content><p>in paragraphs (a) and (b), after the words “the test”, in each place where they occur, there shall be inserted “or re-examination”.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-20-5"><num>(5)</num><content><p><mod>After sub-paragraph (2) there shall be inserted the following sub-paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(2A)</num><intro><p>A vehicle is an exempt vehicle when it is being used by an authorised person solely for the purpose of warming up its engine in preparation for the carrying out of—</p></intro><level class="para1"><num>(a)</num><content><p>a compulsory test, or</p></content></level><level class="para1"><num>(b)</num><content><p>a relevant re-examination that is to be carried out for the purposes of an appeal relating to a determination made on a compulsory test.</p></content></level></subsection></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-20-6"><num>(6)</num><content><p>In sub-paragraph (3) (exemption applying where the relevant certificate is refused), after “a vehicle” there shall be inserted “or as a result of a relevant re-examination,”.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-20-7"><num>(7)</num><intro><p>In sub-paragraph (5) (relevant examinations)—</p></intro><level class="para1" eId="section-20-7-a"><num>(a)</num><content><p><mod>for paragraph (a), there shall be substituted the following paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(a)</num><content><p>an examination under regulations under section 49(1)(b) or (c) of the <noteRef href="#m00024" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Road Traffic Act 1988 (examination as to compliance with construction and use or safety requirements)</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="section-20-7-b"><num>(b)</num><content><p>the word “and” shall be inserted at the end of paragraph (b); and</p></content></level><level class="para1" eId="section-20-7-c"><num>(c)</num><content><p>paragraph (c) (examinations for the purpose of an appeal under section 60 of the Road Traffic Act 1988) shall be omitted.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-20-7-a"><num>(a)</num><content><p><mod>for paragraph (a), there shall be substituted the following paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(a)</num><content><p>an examination under regulations under section 49(1)(b) or (c) of the <noteRef href="#m00024" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Road Traffic Act 1988 (examination as to compliance with construction and use or safety requirements)</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-20-7-b"><num>(b)</num><content><p>the word “and” shall be inserted at the end of paragraph (b); and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-20-7-c"><num>(c)</num><content><p>paragraph (c) (examinations for the purpose of an appeal under section 60 of the Road Traffic Act 1988) shall be omitted.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-20-8"><num>(8)</num><content><p><mod>After sub-paragraph (6) there shall be inserted the following sub-paragraphs—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(6A)</num><intro><p>In this paragraph “a vehicle weight test” means any examination of a vehicle for which provision is made by regulations under—</p></intro><level class="para1"><num>(a)</num><content><p>section 61A of this Act,</p></content></level><level class="para1"><num>(b)</num><content><p>section 49(1)(a) of the Road Traffic Act 1988 (tests for selecting plated weights and other plated particulars), or</p></content></level><level class="para1"><num>(c)</num><content><p>Article 65(1)(a) of the <noteRef href="#m00025" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Road Traffic (Northern Ireland) Order 1995.</p></content></level></subsection><subsection><num>(6B)</num><content><p>In this paragraph “a relevant re-examination” means any examination or re-examination which is carried out in accordance with any provision or requirement made or imposed for the purposes of an appeal relating to a determination made on a compulsory test or vehicle weight test.</p></content></subsection></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-20-9"><num>(9)</num><intro><p>Subject to section 21(3) below, in sub-paragraph (7) (meaning of “authorised person”)—</p></intro><level class="para1" eId="section-20-9-a"><num>(a)</num><content><p>the word “and” at the end of paragraph (b) shall be omitted;</p></content></level><level class="para1" eId="section-20-9-b"><num>(b)</num><content><p>at the end of paragraph (c) there shall be inserted the word “and”; and</p></content></level><level class="para1" eId="section-20-9-c"><num>(c)</num><content><p><mod>after that paragraph there shall be inserted the following paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(d)</num><intro><p>in the case of a relevant re-examination—</p></intro><level class="para2"><num>(i)</num><content><p>the person to whom the appeal in question is made, or</p></content></level><level class="para2"><num>(ii)</num><content><p>any person who, by virtue of an appointment made by that person, is authorised by or under any enactment to carry out that re-examination.</p></content></level></level></quotedStructure></mod></p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-20-9-a"><num>(a)</num><content><p>the word “and” at the end of paragraph (b) shall be omitted;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-20-9-b"><num>(b)</num><content><p>at the end of paragraph (c) there shall be inserted the word “and”; and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-20-9-c"><num>(c)</num><content><p><mod>after that paragraph there shall be inserted the following paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(d)</num><intro><p>in the case of a relevant re-examination—</p></intro><level class="para2"><num>(i)</num><content><p>the person to whom the appeal in question is made, or</p></content></level><level class="para2"><num>(ii)</num><content><p>any person who, by virtue of an appointment made by that person, is authorised by or under any enactment to carry out that re-examination.</p></content></level></level></quotedStructure></mod></p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-20-10"><num>(10)</num><content><p>This section shall be deemed to have come into force on 28th November 1995.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-21"><num>21</num><heading>Exemptions for vehicle testing in Northern Ireland</heading><subsection eId="section-21-1"><num>(1)</num><content><p>Paragraph 22 of Schedule 2 to the <noteRef href="#m00026" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Vehicle Excise and Registration Act 1994 (exemption for vehicle testing) shall be further amended as follows.</p></content></subsection><subsection eId="section-21-2"><num>(2)</num><content><p><mod>For sub-paragraph (6) (meaning of “compulsory test” in Northern Ireland) there shall be substituted the following sub-paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><subparagraph><num>(6)</num><intro><p>In this paragraph “compulsory test” means, as respects Northern Ireland—</p></intro><level class="para1"><num>(a)</num><content><p>an examination to obtain a test certificate under Article 61 of the <noteRef href="#m00027" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Road Traffic (Northern Ireland) Order 1995 without which a vehicle licence cannot be obtained for the vehicle,</p></content></level><level class="para1"><num>(b)</num><content><p>an examination to obtain a goods vehicle test certificate under Article 65 of that Order, or</p></content></level><level class="para1"><num>(c)</num><content><p>an examination to obtain a public service vehicle licence under Article 60(1) of the <noteRef href="#m00028" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Road Traffic (Northern Ireland) Order 1981.</p></content></level></subparagraph></quotedStructure></mod></p></content></subsection><subsection eId="section-21-3"><num>(3)</num><content><p><mod>For paragraph (c) of sub-paragraph (7) (as amended by section 20(9) above) there shall be substituted the following paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><level class="para1"><num>(c)</num><content><p>in the case of an examination within sub-paragraph (6), an authorised examiner within the meaning of Article 61(3)(a) of the Road Traffic (Northern Ireland) Order 1995 or a vehicle examiner within the meaning of Part III of that Order; and</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-21-4"><num>(4)</num><content><p><mod>In sub-paragraph (9) (meaning of “relevant certificate” in Northern Ireland), for paragraphs (a) and (b) there shall be substituted the following paragraphs—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><level class="para1"><num>(a)</num><content><p>a test certificate (within the meaning of Article 61(2) of the Road Traffic (Northern Ireland) Order 1995),</p></content></level><level class="para1"><num>(b)</num><content><p>a goods vehicle test certificate (within the meaning of Article 65(2) of that Order), or</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-21-5"><num>(5)</num><content><p>In sub-paragraph (10)(a) (meaning of “relevant work”), the words “(or, in Northern Ireland, a vehicle test certificate)” shall be omitted.</p></content></subsection><subsection eId="section-21-6"><num>(6)</num><content><p>This section shall be deemed to have come into force on the date of the coming into operation of Articles 61 and 65 of the Road Traffic (Northern Ireland) Order 1995 (“the operational date”).</p></content></subsection><subsection eId="section-21-7"><num>(7)</num><content><p>Subsections (2), (4) and (5) above do not have effect in relation to a compulsory test carried out in Northern Ireland before the operational date except for the purpose of construing, in relation to such a test, the reference to a further compulsory test in paragraph 22(10)(a) of Schedule 2 to the Vehicle Excise and Registration Act 1994.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-21-1"><num>(1)</num><content><p>Paragraph 22 of Schedule 2 to the <noteRef href="#m00026" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Vehicle Excise and Registration Act 1994 (exemption for vehicle testing) shall be further amended as follows.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-21-2"><num>(2)</num><content><p><mod>For sub-paragraph (6) (meaning of “compulsory test” in Northern Ireland) there shall be substituted the following sub-paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><subparagraph><num>(6)</num><intro><p>In this paragraph “compulsory test” means, as respects Northern Ireland—</p></intro><level class="para1"><num>(a)</num><content><p>an examination to obtain a test certificate under Article 61 of the <noteRef href="#m00027" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Road Traffic (Northern Ireland) Order 1995 without which a vehicle licence cannot be obtained for the vehicle,</p></content></level><level class="para1"><num>(b)</num><content><p>an examination to obtain a goods vehicle test certificate under Article 65 of that Order, or</p></content></level><level class="para1"><num>(c)</num><content><p>an examination to obtain a public service vehicle licence under Article 60(1) of the <noteRef href="#m00028" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Road Traffic (Northern Ireland) Order 1981.</p></content></level></subparagraph></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-21-3"><num>(3)</num><content><p><mod>For paragraph (c) of sub-paragraph (7) (as amended by section 20(9) above) there shall be substituted the following paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><level class="para1"><num>(c)</num><content><p>in the case of an examination within sub-paragraph (6), an authorised examiner within the meaning of Article 61(3)(a) of the Road Traffic (Northern Ireland) Order 1995 or a vehicle examiner within the meaning of Part III of that Order; and</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-21-4"><num>(4)</num><content><p><mod>In sub-paragraph (9) (meaning of “relevant certificate” in Northern Ireland), for paragraphs (a) and (b) there shall be substituted the following paragraphs—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><level class="para1"><num>(a)</num><content><p>a test certificate (within the meaning of Article 61(2) of the Road Traffic (Northern Ireland) Order 1995),</p></content></level><level class="para1"><num>(b)</num><content><p>a goods vehicle test certificate (within the meaning of Article 65(2) of that Order), or</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-21-5"><num>(5)</num><content><p>In sub-paragraph (10)(a) (meaning of “relevant work”), the words “(or, in Northern Ireland, a vehicle test certificate)” shall be omitted.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-21-6"><num>(6)</num><content><p>This section shall be deemed to have come into force on the date of the coming into operation of Articles 61 and 65 of the Road Traffic (Northern Ireland) Order 1995 (“the operational date”).</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-21-7"><num>(7)</num><content><p>Subsections (2), (4) and (5) above do not have effect in relation to a compulsory test carried out in Northern Ireland before the operational date except for the purpose of construing, in relation to such a test, the reference to a further compulsory test in paragraph 22(10)(a) of Schedule 2 to the Vehicle Excise and Registration Act 1994.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-22"><num>22</num><heading>Other provisions relating to Northern Ireland</heading><subsection eId="section-22-1"><num>(1)</num><content><p>In section 42 of the Vehicle Excise and Registration Act 1994 (not fixing registration mark), in subsection (5)(b), for “Article 34 of the Road Traffic (Northern Ireland) Order 1981” there shall be substituted “Article 63 of the Road Traffic (Northern Ireland) Order 1995”.</p></content></subsection><subsection eId="section-22-2"><num>(2)</num><content><p><mod>In subsection (6) of that section, for paragraph (b) there shall be substituted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(b)</num><content><p>it is being driven for the purposes of, or in connection with, its examination under Article 61 of the <noteRef href="#m00029" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Road Traffic (Northern Ireland) Order 1995 in circumstances in which its use is exempted from paragraph (1) of Article 63 of that Order by regulations under paragraph (6) of that Article.</p></content></level></quotedStructure></mod></p></content></subsection><subsection eId="section-22-3"><num>(3)</num><content><p>In section 60A(11) of that Act (special maximum weight in Northern Ireland), for “Article 29(3) of the <noteRef href="#m00030" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Road Traffic (Northern Ireland) Order 1981” there shall be substituted “Article 60(1) of the Road Traffic (Northern Ireland) Order 1995”.</p></content></subsection><subsection eId="section-22-4"><num>(4)</num><content><p><mod>In section 61(6) of that Act (meaning of “weight unladen”), for paragraph (b) there shall be substituted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(b)</num><content><p>in Northern Ireland, has the same meaning as it has for the purposes of the Road Traffic (Northern Ireland) Order 1995 by virtue of Article 7 of that Order.</p></content></level></quotedStructure></mod></p></content></subsection><subsection eId="section-22-5"><num>(5)</num><content><p><mod>In paragraph 6 of Schedule 1 to that Act (vehicles used for exceptional loads), in sub-paragraph (2) for paragraph (b) there shall be substituted—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><level class="para1"><num>(b)</num><content><p>Article 60 of the Road Traffic (Northern Ireland) Order 1995,</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-22-6"><num>(6)</num><intro><p>In that paragraph—</p></intro><level class="para1" eId="section-22-6-a"><num>(a)</num><content><p>in sub-paragraph (3)(a), for “Article 28 of the Road Traffic (Northern Ireland) Order 1981” there shall be substituted “Article 55 of the Road Traffic (Northern Ireland) Order 1995”; and</p></content></level><level class="para1" eId="section-22-6-b"><num>(b)</num><content><p>in sub-paragraph (4), for “the Road Traffic (Northern Ireland) Order 1981” there shall be substituted “the Road Traffic (Northern Ireland) Order 1995”.</p></content></level></subsection><subsection eId="section-22-7"><num>(7)</num><intro><p>In paragraph 17 of Schedule 3 to that Act (amendments of the Road Traffic (Northern Ireland) Order 1981)—</p></intro><level class="para1" eId="section-22-7-a"><num>(a)</num><content><p>in sub-paragraph (1), “29(2),” and “34(6),” shall be omitted, and</p></content></level><level class="para1" eId="section-22-7-b"><num>(b)</num><content><p>sub-paragraph (2) shall be omitted.</p></content></level></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-22-1"><num>(1)</num><content><p>In section 42 of the Vehicle Excise and Registration Act 1994 (not fixing registration mark), in subsection (5)(b), for “Article 34 of the Road Traffic (Northern Ireland) Order 1981” there shall be substituted “Article 63 of the Road Traffic (Northern Ireland) Order 1995”.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-22-2"><num>(2)</num><content><p><mod>In subsection (6) of that section, for paragraph (b) there shall be substituted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(b)</num><content><p>it is being driven for the purposes of, or in connection with, its examination under Article 61 of the <noteRef href="#m00029" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Road Traffic (Northern Ireland) Order 1995 in circumstances in which its use is exempted from paragraph (1) of Article 63 of that Order by regulations under paragraph (6) of that Article.</p></content></level></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-22-3"><num>(3)</num><content><p>In section 60A(11) of that Act (special maximum weight in Northern Ireland), for “Article 29(3) of the <noteRef href="#m00030" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Road Traffic (Northern Ireland) Order 1981” there shall be substituted “Article 60(1) of the Road Traffic (Northern Ireland) Order 1995”.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-22-4"><num>(4)</num><content><p><mod>In section 61(6) of that Act (meaning of “weight unladen”), for paragraph (b) there shall be substituted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(b)</num><content><p>in Northern Ireland, has the same meaning as it has for the purposes of the Road Traffic (Northern Ireland) Order 1995 by virtue of Article 7 of that Order.</p></content></level></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-22-5"><num>(5)</num><content><p><mod>In paragraph 6 of Schedule 1 to that Act (vehicles used for exceptional loads), in sub-paragraph (2) for paragraph (b) there shall be substituted—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><level class="para1"><num>(b)</num><content><p>Article 60 of the Road Traffic (Northern Ireland) Order 1995,</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-22-6"><num>(6)</num><intro><p>In that paragraph—</p></intro><level class="para1" eId="section-22-6-a"><num>(a)</num><content><p>in sub-paragraph (3)(a), for “Article 28 of the Road Traffic (Northern Ireland) Order 1981” there shall be substituted “Article 55 of the Road Traffic (Northern Ireland) Order 1995”; and</p></content></level><level class="para1" eId="section-22-6-b"><num>(b)</num><content><p>in sub-paragraph (4), for “the Road Traffic (Northern Ireland) Order 1981” there shall be substituted “the Road Traffic (Northern Ireland) Order 1995”.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-22-6-a"><num>(a)</num><content><p>in sub-paragraph (3)(a), for “Article 28 of the Road Traffic (Northern Ireland) Order 1981” there shall be substituted “Article 55 of the Road Traffic (Northern Ireland) Order 1995”; and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-22-6-b"><num>(b)</num><content><p>in sub-paragraph (4), for “the Road Traffic (Northern Ireland) Order 1981” there shall be substituted “the Road Traffic (Northern Ireland) Order 1995”.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-22-7"><num>(7)</num><intro><p>In paragraph 17 of Schedule 3 to that Act (amendments of the Road Traffic (Northern Ireland) Order 1981)—</p></intro><level class="para1" eId="section-22-7-a"><num>(a)</num><content><p>in sub-paragraph (1), “29(2),” and “34(6),” shall be omitted, and</p></content></level><level class="para1" eId="section-22-7-b"><num>(b)</num><content><p>sub-paragraph (2) shall be omitted.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-22-7-a"><num>(a)</num><content><p>in sub-paragraph (1), “29(2),” and “34(6),” shall be omitted, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-22-7-b"><num>(b)</num><content><p>sub-paragraph (2) shall be omitted.</p></content></level>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-23"><num>23</num><heading>Licensing and registration</heading><content><p>Schedule 2 to this Act (which makes provision in connection with powers conferred on the Secretary of State by the <noteRef href="#m00031" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Vehicle Excise and Registration Act 1994) shall have effect.</p></content></section>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="part-I-crossheading-repeal-of-certain-drawbacks-and-allowances"><heading>Repeal of certain drawbacks and allowances</heading><section eId="section-24"><num>24</num><heading>Repeal of certain drawbacks and allowances</heading><intro><p>The following provisions (which provide for repayments, drawbacks or allowances in the case of certain excise duties) shall cease to have effect, that is to say—</p></intro><level class="para1" eId="section-24-a"><num>(a)</num><content><p>section 3 of the <noteRef href="#m00032" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1977 (repayment in respect of tobacco used in the manufacture of a tobacco product after having borne duty under section 4 of the <noteRef href="#m00033" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1964);</p></content></level><level class="para1" eId="section-24-b"><num>(b)</num><content><p>section 22(6) of the <noteRef href="#m00034" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Alcoholic Liquor Duties Act 1979 (additions in respect of waste which are deemed to be made to tinctures exported or shipped as stores);</p></content></level><level class="para1" eId="section-24-c"><num>(c)</num><content><p>section 23 of that Act of 1979 (allowances in respect of British compounded spirits);</p></content></level><level class="para1" eId="section-24-d"><num>(d)</num><content><p>section 92(6) of that Act of 1979 (transitional right to drawback); and</p></content></level><level class="para1" eId="section-24-e"><num>(e)</num><content><p>section 9(2) and (3) of the <noteRef href="#m00035" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Isle of Man Act 1979 (removal to the Isle of Man treated as export for the purposes of drawback).</p></content></level></section></hcontainer>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-24"><num>24</num><heading>Repeal of certain drawbacks and allowances</heading><intro><p>The following provisions (which provide for repayments, drawbacks or allowances in the case of certain excise duties) shall cease to have effect, that is to say—</p></intro><level class="para1" eId="section-24-a"><num>(a)</num><content><p>section 3 of the <noteRef href="#m00032" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1977 (repayment in respect of tobacco used in the manufacture of a tobacco product after having borne duty under section 4 of the <noteRef href="#m00033" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1964);</p></content></level><level class="para1" eId="section-24-b"><num>(b)</num><content><p>section 22(6) of the <noteRef href="#m00034" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Alcoholic Liquor Duties Act 1979 (additions in respect of waste which are deemed to be made to tinctures exported or shipped as stores);</p></content></level><level class="para1" eId="section-24-c"><num>(c)</num><content><p>section 23 of that Act of 1979 (allowances in respect of British compounded spirits);</p></content></level><level class="para1" eId="section-24-d"><num>(d)</num><content><p>section 92(6) of that Act of 1979 (transitional right to drawback); and</p></content></level><level class="para1" eId="section-24-e"><num>(e)</num><content><p>section 9(2) and (3) of the <noteRef href="#m00035" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Isle of Man Act 1979 (removal to the Isle of Man treated as export for the purposes of drawback).</p></content></level></section>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-24-a"><num>(a)</num><content><p>section 3 of the <noteRef href="#m00032" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1977 (repayment in respect of tobacco used in the manufacture of a tobacco product after having borne duty under section 4 of the <noteRef href="#m00033" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1964);</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-24-b"><num>(b)</num><content><p>section 22(6) of the <noteRef href="#m00034" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Alcoholic Liquor Duties Act 1979 (additions in respect of waste which are deemed to be made to tinctures exported or shipped as stores);</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-24-c"><num>(c)</num><content><p>section 23 of that Act of 1979 (allowances in respect of British compounded spirits);</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-24-d"><num>(d)</num><content><p>section 92(6) of that Act of 1979 (transitional right to drawback); and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-24-e"><num>(e)</num><content><p>section 9(2) and (3) of the <noteRef href="#m00035" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Isle of Man Act 1979 (removal to the Isle of Man treated as export for the purposes of drawback).</p></content></level>
<part xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" eId="part-II"><num>Part II</num><heading>Value Added Tax</heading><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-II-crossheading-ec-second-vat-simplification-directive"><heading>EC Second VAT Simplification Directive</heading><section eId="section-25"><num>25</num><heading>EC Second VAT Simplification Directive</heading><content><p>Sections 26 to 29 of and Schedule 3 to this Act are for the purpose of giving effect to requirements of the directive of the Council of the European Communities dated 17th May 1977 No.<ref eId="c00001" href="http://www.legislation.gov.uk/european/directive/1977/0388">77/388/EEC</ref> and the amendments of that directive by the directive of that Council dated 10th April 1995 No.<ref eId="c00002" href="http://www.legislation.gov.uk/european/directive/1995/0007">95/7/EC</ref> (amendments with a view to introducing new simplification measures with regard to value added tax).</p></content></section><section eId="section-26"><num>26</num><heading>Fiscal and other warehousing</heading><subsection eId="section-26-1"><num>(1)</num><content><p>The provisions of Schedule 3 to this Act shall have effect.</p></content></subsection><subsection eId="section-26-2"><num>(2)</num><content><p>Subject to subsection (3) below, this section and Schedule 3 to this Act shall come into force on such day as the Commissioners of Customs and Excise may by order made by statutory instrument appoint, and shall apply to any acquisition of goods from another member State and any supply taking place on or after that day.</p></content></subsection><subsection eId="section-26-3"><num>(3)</num><content><p>In so far as the provisions inserted by Schedule 3 to this Act confer power to make regulations they shall come into force on the day this Act is passed.</p></content></subsection></section><section eId="section-27"><num>27</num><heading>Value of imported goods</heading><subsection eId="section-27-1"><num>(1)</num><content><p>Section 21 of the <noteRef href="#m00036" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Value Added Tax Act 1994 (value of imported goods) shall be amended as follows.</p></content></subsection><subsection eId="section-27-2"><num>(2)</num><content><p>In subsection (2) of that section at the end of paragraph (a) the word “and” shall be omitted.</p></content></subsection><subsection eId="section-27-3"><num>(3)</num><content><p><mod>For paragraph (b) of that subsection there shall be substituted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(b)</num><content><p>all incidental expenses, such as commission, packing, transport and insurance costs, up to the goods' first destination in the United Kingdom; and</p></content></level><level class="para1"><num>(c)</num><content><p>if at the time of the importation of the goods from a place outside the member States a further destination for the goods is known, and that destination is within the United Kingdom or another member State, all such incidental expenses in so far as they result from the transport of the goods to that other destination;</p></content></level><p>and in this subsection “the goods' first destination” means the place mentioned on the consignment note or any other document by means of which the goods are imported into the United Kingdom, or in the absence of such documentation it means the place of the first transfer of cargo in the United Kingdom.</p></quotedStructure></mod></p></content></subsection><subsection eId="section-27-4"><num>(4)</num><content><p>This section shall have effect in relation to goods imported on or after 1st January 1996.</p></content></subsection></section><section eId="section-28"><num>28</num><heading>Adaptation of aircraft and hovercraft</heading><subsection eId="section-28-1"><num>(1)</num><content><p>Section 22 of the <noteRef href="#m00037" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Value Added Tax Act 1994 shall be omitted.</p></content></subsection><subsection eId="section-28-2"><num>(2)</num><content><p>This section shall apply to supplies made on or after 1st January 1996.</p></content></subsection></section><section eId="section-29"><num>29</num><heading>Work on materials</heading><hcontainer name="wrapper2"><subsection eId="section-29-1"><num>(1)</num><content><p>The Value Added Tax Act 1994 shall be amended as follows.</p></content></subsection><subsection eId="section-29-2"><num>(2)</num><content><p><mod>After subsection (2) of section 30 there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(2A)</num><intro><p>A supply by a person of services which consist of applying a treatment or process to another person’s goods is zero-rated by virtue of this subsection if by doing so he produces goods, and either—</p></intro><level class="para1"><num>(a)</num><content><p>those goods are of a description for the time being specified in Schedule 8; or</p></content></level><level class="para1"><num>(b)</num><content><p>a supply by him of those goods to the person to whom he supplies the services would be of a description so specified.</p></content></level></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-29-3"><num>(3)</num><content><p><mod>In subsection (5) of section 55 (supplies of gold), after paragraph (b) there shall be inserted the following—<quotedText startQuote="“">; or</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(c)</num><content><p>any supply of services consisting in the application to another person’s goods of a treatment or process which produces goods a supply of which would fall within paragraph (a) above.</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></subsection></hcontainer><hcontainer name="wrapper2"><intro><p>and the word “or” at the end of paragraph (a) shall be omitted.</p></intro><subsection eId="section-29-4"><num>(4)</num><content><p>Paragraph 2 of Schedule 4 (which provides that the treatment or processing of another person’s goods shall in certain circumstances be a supply of goods) shall be omitted.</p></content></subsection><subsection eId="section-29-5"><num>(5)</num><content><p>This section shall apply to supplies made on or after 1st January 1996.</p></content></subsection></hcontainer></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-II-crossheading-other-provisions-relating-to-charges-to-vat"><heading>Other provisions relating to charges to VAT</heading><section eId="section-30"><num>30</num><heading>Refunds in connection with construction and conversion</heading><subsection eId="section-30-1"><num>(1)</num><content><p><mod>For subsection (1) of section 35 of the Value Added Tax Act 1994 (refund of VAT to persons constructing certain buildings) there shall be substituted the following subsections—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1)</num><intro><p>Where—</p></intro><level class="para1"><num>(a)</num><content><p>a person carries out works to which this section applies,</p></content></level><level class="para1"><num>(b)</num><content><p>his carrying out of the works is lawful and otherwise than in the course or furtherance of any business, and</p></content></level><level class="para1"><num>(c)</num><content><p>VAT is chargeable on the supply, acquisition or importation of any goods used by him for the purposes of the works,</p></content></level><wrapUp><p>the Commissioners shall, on a claim made in that behalf, refund to that person the amount of VAT so chargeable.</p></wrapUp></subsection><subsection><num>(1A)</num><intro><p>The works to which this section applies are—</p></intro><level class="para1"><num>(a)</num><content><p>the construction of a building designed as a dwelling or number of dwellings;</p></content></level><level class="para1"><num>(b)</num><content><p>the construction of a building for use solely for a relevant residential purpose or relevant charitable purpose; and</p></content></level><level class="para1"><num>(c)</num><content><p>a residential conversion.</p></content></level></subsection><subsection><num>(1B)</num><content><p>For the purposes of this section goods shall be treated as used for the purposes of works to which this section applies by the person carrying out the works in so far only as they are building materials which, in the course of the works, are incorporated in the building in question or its site.</p></content></subsection><subsection><num>(1C)</num><intro><p>Where—</p></intro><level class="para1"><num>(a)</num><content><p>a person (“the relevant person”) carries out a residential conversion by arranging for any of the work of the conversion to be done by another (“a contractor”),</p></content></level><level class="para1"><num>(b)</num><content><p>the relevant person’s carrying out of the conversion is lawful and otherwise than in the course or furtherance of any business,</p></content></level><level class="para1"><num>(c)</num><content><p>the contractor is not acting as an architect, surveyor or consultant or in a supervisory capacity, and</p></content></level><level class="para1"><num>(d)</num><content><p>VAT is chargeable on services consisting in the work done by the contractor,</p></content></level><wrapUp><p>the Commissioners shall, on a claim made in that behalf, refund to the relevant person the amount of VAT so chargeable.</p></wrapUp></subsection><subsection><num>(1D)</num><intro><p>For the purposes of this section works constitute a residential conversion to the extent that they consist in the conversion of a non-residential building, or a non-residential part of a building, into—</p></intro><level class="para1"><num>(a)</num><content><p>a building designed as a dwelling or a number of dwellings;</p></content></level><level class="para1"><num>(b)</num><content><p>a building intended for use solely for a relevant residential purpose; or</p></content></level><level class="para1"><num>(c)</num><content><p>anything which would fall within paragraph (a) or (b) above if different parts of a building were treated as separate buildings.</p></content></level></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-30-2"><num>(2)</num><content><p>In subsection (2) of that section (method of making claim), after “may by regulations prescribe” there shall be inserted “or, in the case of documents, as the Commissioners may determine in accordance with the regulations”.</p></content></subsection><subsection eId="section-30-3"><num>(3)</num><content><p><mod>After subsection (3) of that section there shall be inserted the following subsections—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(4)</num><content><p>The notes to Group 5 of Schedule 8 shall apply for construing this section as they apply for construing that Group.</p></content></subsection><subsection><num>(5)</num><intro><p>The power of the Treasury by order under section 30 to vary Schedule 8 shall include—</p></intro><level class="para1"><num>(a)</num><content><p>power to apply any variation made by the order for the purposes of this section; and</p></content></level><level class="para1"><num>(b)</num><content><p>power to make such consequential modifications of this section as they may think fit.</p></content></level></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-30-4"><num>(4)</num><content><p>This section applies in relation to any case in which a claim for repayment under section 35 of the <noteRef href="#m00038" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Value Added Tax Act 1994 is made at any time on or after the day on which this Act is passed.</p></content></subsection></section><section eId="section-31"><num>31</num><heading>Groups: anti-avoidance</heading><subsection eId="section-31-1"><num>(1)</num><content><p><mod>In section 43 of the <noteRef href="#m00039" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Value Added Tax Act 1994 (groups of companies), after subsection (8) there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(9)</num><content><p>Schedule 9A (which makes provision for ensuring that this section is not used for tax avoidance) shall have effect.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-31-2"><num>(2)</num><content><p>After Schedule 9 to that Act there shall be inserted the Schedule set out in Schedule 4 to this Act.</p></content></subsection><subsection eId="section-31-3"><num>(3)</num><content><p><mod>In section 83 of that Act (appeals), after paragraph (w) there shall be inserted the following paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(wa)</num><content><p>any direction or assessment under Schedule 9A;</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-31-4"><num>(4)</num><content><p><mod>In section 84 of that Act (further provisions relating to appeals), after subsection (7) there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(7A)</num><intro><p>Where there is an appeal against a decision to make such a direction as is mentioned in section 83(wa), the cases in which the tribunal shall allow the appeal shall include (in addition to the case where the conditions for the making of the direction were not fulfilled) the case where the tribunal are satisfied, in relation to the relevant event by reference to which the direction was given, that—</p></intro><level class="para1"><num>(a)</num><content><p>the change in the treatment of the body corporate, or</p></content></level><level class="para1"><num>(b)</num><content><p>the transaction in question,</p></content></level><wrapUp><p>had as its main purpose or, as the case may be, as each of its main purposes a genuine commercial purpose unconnected with the fulfilment of the condition specified in paragraph 1(3) of Schedule 9A.</p></wrapUp></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-31-5"><num>(5)</num><content><p>Subsection (1A) of section 43 of that Act shall not have effect in relation to supplies on or after the day on which this Act is passed.</p></content></subsection></section><section eId="section-32"><num>32</num><heading>Supplies of gold etc</heading><subsection eId="section-32-1"><num>(1)</num><content><p><mod>In section 55 of the Value Added Tax Act 1994 (supplies of gold), for paragraph (a) of subsection (5) there shall be substituted the following paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(a)</num><content><p>any supply of goods consisting in fine gold, in gold grain of any purity or in gold coins of any purity; or</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-32-2"><num>(2)</num><content><p>This section applies in relation to any supply after 28th November 1995.</p></content></subsection></section><section eId="section-33"><num>33</num><heading>Small gifts</heading><subsection eId="section-33-1"><num>(1)</num><content><p>In Schedule 4 to the <noteRef href="#m00040" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Value Added Tax Act 1994 (matters to be treated as supply of goods or services), in paragraph 5(2)(a) (gift of goods in the course or furtherance of a business not a supply if cost to donor is not more than £10), for “£10” there shall be substituted “£15”.</p></content></subsection><subsection eId="section-33-2"><num>(2)</num><content><p><mod>At the end of paragraph 5 of Schedule 4 to that Act there shall be inserted the following sub-paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><subparagraph><num>(7)</num><content><p>The Treasury may by order substitute for the sum for the time being specified in sub-paragraph (2)(a) above such sum, not being less than £10, as they think fit.</p></content></subparagraph></quotedStructure></mod></p></content></subsection><subsection eId="section-33-3"><num>(3)</num><content><p><mod>In section 97(4) of that Act (orders which are subject to affirmative procedure), after paragraph (a) there shall be inserted the following paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(ab)</num><content><p>an order under paragraph 5(7) of Schedule 4 substituting a lesser sum for the sum for the time being specified in paragraph 5(2)(a) of that Schedule;</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-33-4"><num>(4)</num><content><p>Subsection (1) above shall apply where a gift is made after 28th November 1995.</p></content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-II-crossheading-payment-and-enforcement"><heading>Payment and enforcement</heading><section eId="section-34"><num>34</num><heading>Method of making payments on account</heading><content><p><mod>In section 28 of the <noteRef href="#m00041" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Value Added Tax Act 1994 (payments on account of VAT), after subsection (2) there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(2A)</num><content><p>The Commissioners may give directions, to persons who are or may become liable by virtue of any order under this section to make payments on account of VAT, about the manner in which they are to make such payments; and where such a direction has been given to any person and has not subsequently been withdrawn, any duty of that person by virtue of such an order to make such a payment shall have effect as if it included a requirement for the payment to be made in the manner directed.</p></content></subsection></quotedStructure></mod></p></content></section><section eId="section-35"><num>35</num><heading>Default surcharges</heading><subsection eId="section-35-1"><num>(1)</num><content><p>The Value Added Tax Act 1994 shall be amended as follows.</p></content></subsection><subsection eId="section-35-2"><num>(2)</num><content><p><mod>After section 59 (default surcharge) there shall be inserted the following section—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>59A</num><heading>Default surcharge: payments on account</heading><subsection><num>(1)</num><intro><p>For the purposes of this section a taxable person shall be regarded as in default in respect of any prescribed accounting period if the period is one in respect of which he is required, by virtue of an order under section 28, to make any payment on account of VAT and either—</p></intro><level class="para1"><num>(a)</num><content><p>a payment which he is so required to make in respect of that period has not been received in full by the Commissioners by the day on which it became due; or</p></content></level><level class="para1"><num>(b)</num><content><p>he would, but for section 59(1A), be in default in respect of that period for the purposes of section 59.</p></content></level></subsection><subsection><num>(2)</num><intro><p>Subject to subsections (10) and (11) below, subsection (4) below applies in any case where—</p></intro><level class="para1"><num>(a)</num><content><p>a taxable person is in default in respect of a prescribed accounting period; and</p></content></level><level class="para1"><num>(b)</num><intro><p>the Commissioners serve notice on the taxable person (a “surcharge liability notice”) specifying as a surcharge period for the purposes of this section a period which—</p></intro><level class="para2"><num>(i)</num><content><p>begins, subject to subsection (3) below, on the date of the notice; and</p></content></level><level class="para2"><num>(ii)</num><content><p>ends on the first anniversary of the last day of the period referred to in paragraph (a) above.</p></content></level></level></subsection><subsection><num>(3)</num><intro><p>If—</p></intro><level class="para1"><num>(a)</num><content><p>a surcharge liability notice is served by reason of a default in respect of a prescribed accounting period, and</p></content></level><level class="para1"><num>(b)</num><content><p>that period ends at or before the expiry of an existing surcharge period already notified to the taxable person concerned,</p></content></level><wrapUp><p>the surcharge period specified in that notice shall be expressed as a continuation of the existing surcharge period; and, accordingly, the existing period and its extension shall be regarded as a single surcharge period.</p></wrapUp></subsection><subsection><num>(4)</num><intro><p>Subject to subsections (7) to (11) below, if—</p></intro><level class="para1"><num>(a)</num><content><p>a taxable person on whom a surcharge liability notice has been served is in default in respect of a prescribed accounting period,</p></content></level><level class="para1"><num>(b)</num><content><p>that prescribed accounting period is one ending within the surcharge period specified in (or extended by) that notice, and</p></content></level><level class="para1"><num>(c)</num><content><p>the aggregate value of his defaults in respect of that prescribed accounting period is more than nil,</p></content></level><wrapUp><p>that person shall be liable to a surcharge equal to whichever is the greater of £30 and the specified percentage of the aggregate value of his defaults in respect of that prescribed accounting period.</p></wrapUp></subsection><subsection><num>(5)</num><intro><p>Subject to subsections (7) to (11) below, the specified percentage referred to in subsection (4) above shall be determined in relation to a prescribed accounting period by reference to the number of such periods during the surcharge period which are periods in respect of which the taxable person is in default and in respect of which the value of his defaults is more than nil, so that—</p></intro><level class="para1"><num>(a)</num><content><p>in relation to the first such prescribed accounting period, the specified percentage is 2 per cent.;</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to the second such period, the specified percentage is 5 per cent.;</p></content></level><level class="para1"><num>(c)</num><content><p>in relation to the third such period, the specified percentage is 10 per cent.; and</p></content></level><level class="para1"><num>(d)</num><content><p>in relation to each such period after the third, the specified percentage is 15 per cent.</p></content></level></subsection><subsection><num>(6)</num><intro><p>For the purposes of this section the aggregate value of a person’s defaults in respect of a prescribed accounting period shall be calculated as follows—</p></intro><level class="para1"><num>(a)</num><content><p>where the whole or any part of a payment in respect of that period on account of VAT was not received by the Commissioners by the day on which it became due, an amount equal to that payment or, as the case may be, to that part of it shall be taken to be the value of the default relating to that payment;</p></content></level><level class="para1"><num>(b)</num><content><p>if there is more than one default with a value given by paragraph (a) above, those values shall be aggregated;</p></content></level><level class="para1"><num>(c)</num><content><p>the total given by paragraph (b) above, or (where there is only one default) the value of the default under paragraph (a) above, shall be taken to be the value for that period of that person’s defaults on payments on account;</p></content></level><level class="para1"><num>(d)</num><content><p>the value of any default by that person which is a default falling within subsection (1)(b) above shall be taken to be equal to the amount of any outstanding VAT less the amount of unpaid payments on account; and</p></content></level><level class="para1"><num>(e)</num><intro><p>the aggregate value of a person’s defaults in respect of that period shall be taken to be the aggregate of—</p></intro><level class="para2"><num>(i)</num><content><p>the value for that period of that person’s defaults (if any) on payments on account; and</p></content></level><level class="para2"><num>(ii)</num><content><p>the value of any default of his in respect of that period that falls within subsection (1)(b) above.</p></content></level></level></subsection><subsection><num>(7)</num><intro><p>In the application of subsection (6) above for the calculation of the aggregate value of a person’s defaults in respect of a prescribed accounting period—</p></intro><level class="para1"><num>(a)</num><content><p>the amount of outstanding VAT referred to in paragraph (d) of that subsection is the amount (if any) which would be the amount of that person’s outstanding VAT for that period for the purposes of section 59(4); and</p></content></level><level class="para1"><num>(b)</num><content><p>the amount of unpaid payments on account referred to in that paragraph is the amount (if any) equal to so much of any payments on account of VAT (being payments in respect of that period) as has not been received by the Commissioners by the last day on which that person is required (as mentioned in section 59(1)) to make a return for that period.</p></content></level></subsection><subsection><num>(8)</num><intro><p>If a person who, apart from this subsection, would be liable to a surcharge under subsection (4) above satisfies the Commissioners or, on appeal, a tribunal—</p></intro><level class="para1"><num>(a)</num><intro><p>in the case of a default that is material for the purposes of the surcharge and falls within subsection (1)(a) above—</p></intro><level class="para2"><num>(i)</num><content><p>that the payment on account of VAT was despatched at such a time and in such a manner that it was reasonable to expect that it would be received by the Commissioners by the day on which it became due, or</p></content></level><level class="para2"><num>(ii)</num><content><p>that there is a reasonable excuse for the payment not having been so despatched,</p></content></level><wrapUp><p>or</p></wrapUp></level><level class="para1"><num>(b)</num><content><p>in the case of a default that is material for the purposes of the surcharge and falls within subsection (1)(b) above, that the condition specified in section 59(7)(a) or (b) is satisfied as respects the default,</p></content></level><wrapUp><p>he shall not be liable to the surcharge and for the purposes of the preceding provisions of this section he shall be treated as not having been in default in respect of the prescribed accounting period in question (and, accordingly, any surcharge liability notice the service of which depended upon that default shall be deemed not to have been served).</p></wrapUp></subsection><subsection><num>(9)</num><intro><p>For the purposes of subsection (8) above, a default is material to a surcharge if—</p></intro><level class="para1"><num>(a)</num><content><p>it is the default which, by virtue of subsection (4) above, gives rise to the surcharge; or</p></content></level><level class="para1"><num>(b)</num><content><p>it is a default which was taken into account in the service of the surcharge liability notice upon which the surcharge depends and the person concerned has not previously been liable to a surcharge in respect of a prescribed accounting period ending within the surcharge period specified in or extended by that notice.</p></content></level></subsection><subsection><num>(10)</num><intro><p>In any case where—</p></intro><level class="para1"><num>(a)</num><content><p>the conduct by virtue of which a person is in default in respect of a prescribed accounting period is also conduct falling within section 69(1), and</p></content></level><level class="para1"><num>(b)</num><content><p>by reason of that conduct, the person concerned is assessed to a penalty under section 69,</p></content></level><wrapUp><p>the default shall be left out of account for the purposes of subsections (2) to (5) above.</p></wrapUp></subsection><subsection><num>(11)</num><content><p>If the Commissioners, after consultation with the Treasury, so direct, a default in respect of a prescribed accounting period specified in the direction shall be left out of account for the purposes of subsections (2) to (5) above.</p></content></subsection><subsection><num>(12)</num><content><p>For the purposes of this section the Commissioners shall be taken not to receive a payment by the day on which it becomes due unless it is made in such a manner as secures (in a case where the payment is made otherwise than in cash) that, by the last day for the payment of that amount, all the transactions can be completed that need to be completed before the whole amount of the payment becomes available to the Commissioners.</p></content></subsection><subsection><num>(13)</num><content><p>In determining for the purposes of this section whether any person would, but for section 59(1A), be in default in respect of any period for the purposes of section 59, subsection (12) above shall be deemed to apply for the purposes of section 59 as it applies for the purposes of this section.</p></content></subsection><subsection><num>(14)</num><content><p>For the purposes of this section references to a thing’s being done by any day include references to its being done on that day.</p></content></subsection></section></quotedStructure></mod></p></content></subsection><subsection eId="section-35-3"><num>(3)</num><content><p><mod>In section 59, at the beginning of subsection (1) (circumstances amounting to a default in respect of any prescribed accounting period), there shall be inserted “Subject to subsection (1A) below”; and after that subsection there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1A)</num><content><p>A person shall not be regarded for the purposes of this section as being in default in respect of any prescribed accounting period if that period is one in respect of which he is required by virtue of any order under section 28 to make any payment on account of VAT.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-35-4"><num>(4)</num><content><p><mod>After subsection (10) of that section there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(11)</num><content><p>For the purposes of this section references to a thing’s being done by any day include references to its being done on that day.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-35-5"><num>(5)</num><content><p><mod>After the section 59A inserted by subsection (2) above there shall be inserted the following section—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>59B</num><heading>Relationship between sections 59 and 59A</heading><subsection><num>(1)</num><intro><p>This section applies in each of the following cases, namely—</p></intro><level class="para1"><num>(a)</num><content><p>where a section 28 accounting period ends within a surcharge period begun or extended by the service on a taxable person (whether before or after the coming into force of section 59A) of a surcharge liability notice under section 59; and</p></content></level><level class="para1"><num>(b)</num><content><p>where a prescribed accounting period which is not a section 28 accounting period ends within a surcharge period begun or extended by the service on a taxable person of a surcharge liability notice under section 59A.</p></content></level></subsection><subsection><num>(2)</num><intro><p>In a case falling within subsection (1)(a) above section 59A shall have effect as if—</p></intro><level class="para1"><num>(a)</num><content><p>subject to paragraph (b) below, the section 28 accounting period were deemed to be a period ending within a surcharge period begun or, as the case may be, extended by a notice served under section 59A; but</p></content></level><level class="para1"><num>(b)</num><intro><p>any question—</p></intro><level class="para2"><num>(i)</num><content><p>whether a surcharge period was begun or extended by the notice, or</p></content></level><level class="para2"><num>(ii)</num><content><p>whether the taxable person was in default in respect of any prescribed accounting period which was not a section 28 accounting period but ended within the surcharge period begun or extended by that notice,</p></content></level><wrapUp><p>were to be determined as it would be determined for the purposes of section 59.</p></wrapUp></level></subsection><subsection><num>(3)</num><intro><p>In a case falling within subsection (1)(b) above section 59 shall have effect as if—</p></intro><level class="para1"><num>(a)</num><content><p>subject to paragraph (b) below, the prescribed accounting period that is not a section 28 accounting period were deemed to be a period ending within a surcharge period begun or, as the case may be, extended by a notice served under section 59;</p></content></level><level class="para1"><num>(b)</num><intro><p>any question—</p></intro><level class="para2"><num>(i)</num><content><p>whether a surcharge period was begun or extended by the notice, or</p></content></level><level class="para2"><num>(ii)</num><content><p>whether the taxable person was in default in respect of any prescribed accounting period which was a section 28 accounting period but ended within the surcharge period begun or extended by that notice,</p></content></level><wrapUp><p>were to be determined as it would be determined for the purposes of section 59A; and</p></wrapUp></level><level class="para1"><num>(c)</num><content><p>that person were to be treated as having had outstanding VAT for a section 28 accounting period in any case where the aggregate value of his defaults in respect of that period was, for the purposes of section 59A, more than nil.</p></content></level></subsection><subsection><num>(4)</num><content><p>In this section “a section 28 accounting period”, in relation to a taxable person, means any prescribed accounting period ending on or after the day on which the Finance Act 1996 was passed in respect of which that person is liable by virtue of an order under section 28 to make any payment on account of VAT.</p></content></subsection></section></quotedStructure></mod></p></content></subsection><subsection eId="section-35-6"><num>(6)</num><content><p>In section 69(4)(a) and (9)(b) (disregard in connection with penalties for breach of regulations of conduct giving rise to a surcharge), after the words “section 59”, in each case, there shall be inserted “or 59A”.</p></content></subsection><subsection eId="section-35-7"><num>(7)</num><content><p>In section 76(1) and (3)(a) (assessments for surcharges), after the words “section 59”, in each case, there shall be inserted “or 59A”.</p></content></subsection><subsection eId="section-35-8"><num>(8)</num><content><p>This section applies in relation to any prescribed accounting period ending on or after 1st June 1996, but a liability to make a payment on account of VAT shall be disregarded for the purposes of the amendments made by this section if the payment is one becoming due before that date.</p></content></subsection></section><section eId="section-36"><num>36</num><heading>Repeated misdeclaration penalty</heading><subsection eId="section-36-1"><num>(1)</num><content><p><mod>In section 64 of the <noteRef href="#m00042" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Value Added Tax Act 1994 (repeated misdeclaration penalty), the following subsections shall be substituted for subsections (6) and (7) (inaccuracies treated as not material)—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(6)</num><intro><p>Subject to subsection (6A) below, where by reason of conduct falling within subsection (1) above—</p></intro><level class="para1"><num>(a)</num><content><p>a person is convicted of an offence (whether under this Act or otherwise), or</p></content></level><level class="para1"><num>(b)</num><content><p>a person is assessed to a penalty under section 60 or 63,</p></content></level><wrapUp><p>the inaccuracy concerned shall not be regarded as material for the purposes of this section.</p></wrapUp></subsection><subsection><num>(6A)</num><intro><p>Subsection (6) above shall not prevent an inaccuracy by reason of which a person has been assessed to a penalty under section 63—</p></intro><level class="para1"><num>(a)</num><content><p>from being regarded as a material inaccuracy in respect of which the Commissioners may serve a penalty liability notice under subsection (2) above; or</p></content></level><level class="para1"><num>(b)</num><content><p>from being regarded for the purposes of subsection (3) above as a material inaccuracy by reference to which any prescribed accounting period falling within the penalty period is to be treated as the first prescribed accounting period so falling in respect of which there is a material inaccuracy.</p></content></level></subsection><subsection><num>(7)</num><content><p>Where subsection (5) or (6) above requires any inaccuracy to be regarded as not material for the purposes of the serving of a penalty liability notice, any such notice served in respect of that inaccuracy shall be deemed not to have been served.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-36-2"><num>(2)</num><content><p>This section has effect in relation to inaccuracies contained in returns made on or after the day on which this Act is passed.</p></content></subsection></section><section eId="section-37"><num>37</num><heading>Penalties for failure to notify</heading><subsection eId="section-37-1"><num>(1)</num><intro><p>In section 67 of the <noteRef href="#m00043" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Value Added Tax Act 1994 (penalty for failure to notify liability to be registered under Schedule 1, etc.)—</p></intro><level class="para1" eId="section-37-1-a"><num>(a)</num><content><p>in subsection (1)(a), after “6” there shall be inserted “, 7”; and</p></content></level><level class="para1" eId="section-37-1-b"><num>(b)</num><content><p>in subsection (3)(a), for “or 6” there shall be substituted “, 6 or 7”.</p></content></level></subsection><subsection eId="section-37-2"><num>(2)</num><intro><p>Subject to subsection (3) below, subsection (1) above shall apply in relation to—</p></intro><level class="para1" eId="section-37-2-a"><num>(a)</num><content><p>any person becoming liable to be registered by virtue of sub-paragraph (2) of paragraph 1 of Schedule 1 to the <noteRef href="#m00044" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Value Added Tax Act 1994 on or after 1st January 1996; and</p></content></level><level class="para1" eId="section-37-2-b"><num>(b)</num><content><p>any person who became liable to be registered by virtue of that sub-paragraph before that date but who had not notified the Commissioners of the liability before that date.</p></content></level></subsection><subsection eId="section-37-3"><num>(3)</num><content><p>In relation to a person falling within subsection (2)(b) above, section 67 of the Value Added Tax Act 1994 shall have effect as if in subsection (3)(a) for the words “the date with effect from which he is, in accordance with that paragraph, required to be registered” there were substituted “1st January 1996”.</p></content></subsection></section><section eId="section-38"><num>38</num><heading>VAT invoices and accounting</heading><subsection eId="section-38-1"><num>(1)</num><content><p>Paragraph 2 of Schedule 11 to the <noteRef href="#m00045" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Value Added Tax Act 1994 (regulations about accounting for VAT, VAT invoices etc.) shall be amended as follows.</p></content></subsection><subsection eId="section-38-2"><num>(2)</num><content><p><mod>After sub-paragraph (2) there shall be inserted the following sub-paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><subparagraph><num>(2A)</num><content><p>Regulations under this paragraph may confer power on the Commissioners to allow the requirements of any regulations as to the statements and other matters to be contained in a VAT invoice to be relaxed or dispensed with.</p></content></subparagraph></quotedStructure></mod></p></content></subsection><subsection eId="section-38-3"><num>(3)</num><content><p><mod>In sub-paragraph (10) (adjustments of VAT accounts), at the end of paragraph (c) there shall be inserted <quotedText startQuote="“">and</quotedText><quotedStructure endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><level class="para1"><num>(d)</num><content><p>for a person, for purposes connected with the making of any such entry or financial adjustment, to be required to provide to any prescribed person, or to retain, a document in the prescribed form containing prescribed particulars of the matters to which the entry or adjustment relates; and</p></content></level><level class="para1"><num>(e)</num><content><p>for enabling the Commissioners, in such cases as they may think fit, to dispense with or relax a requirement imposed by regulations made by virtue of paragraph (d) above.</p></content></level></quotedStructure></mod></p></content></subsection></section></hcontainer></part>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="part-II-crossheading-ec-second-vat-simplification-directive"><heading>EC Second VAT Simplification Directive</heading><section eId="section-25"><num>25</num><heading>EC Second VAT Simplification Directive</heading><content><p>Sections 26 to 29 of and Schedule 3 to this Act are for the purpose of giving effect to requirements of the directive of the Council of the European Communities dated 17th May 1977 No.<ref eId="c00001" href="http://www.legislation.gov.uk/european/directive/1977/0388">77/388/EEC</ref> and the amendments of that directive by the directive of that Council dated 10th April 1995 No.<ref eId="c00002" href="http://www.legislation.gov.uk/european/directive/1995/0007">95/7/EC</ref> (amendments with a view to introducing new simplification measures with regard to value added tax).</p></content></section><section eId="section-26"><num>26</num><heading>Fiscal and other warehousing</heading><subsection eId="section-26-1"><num>(1)</num><content><p>The provisions of Schedule 3 to this Act shall have effect.</p></content></subsection><subsection eId="section-26-2"><num>(2)</num><content><p>Subject to subsection (3) below, this section and Schedule 3 to this Act shall come into force on such day as the Commissioners of Customs and Excise may by order made by statutory instrument appoint, and shall apply to any acquisition of goods from another member State and any supply taking place on or after that day.</p></content></subsection><subsection eId="section-26-3"><num>(3)</num><content><p>In so far as the provisions inserted by Schedule 3 to this Act confer power to make regulations they shall come into force on the day this Act is passed.</p></content></subsection></section><section eId="section-27"><num>27</num><heading>Value of imported goods</heading><subsection eId="section-27-1"><num>(1)</num><content><p>Section 21 of the <noteRef href="#m00036" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Value Added Tax Act 1994 (value of imported goods) shall be amended as follows.</p></content></subsection><subsection eId="section-27-2"><num>(2)</num><content><p>In subsection (2) of that section at the end of paragraph (a) the word “and” shall be omitted.</p></content></subsection><subsection eId="section-27-3"><num>(3)</num><content><p><mod>For paragraph (b) of that subsection there shall be substituted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(b)</num><content><p>all incidental expenses, such as commission, packing, transport and insurance costs, up to the goods' first destination in the United Kingdom; and</p></content></level><level class="para1"><num>(c)</num><content><p>if at the time of the importation of the goods from a place outside the member States a further destination for the goods is known, and that destination is within the United Kingdom or another member State, all such incidental expenses in so far as they result from the transport of the goods to that other destination;</p></content></level><p>and in this subsection “the goods' first destination” means the place mentioned on the consignment note or any other document by means of which the goods are imported into the United Kingdom, or in the absence of such documentation it means the place of the first transfer of cargo in the United Kingdom.</p></quotedStructure></mod></p></content></subsection><subsection eId="section-27-4"><num>(4)</num><content><p>This section shall have effect in relation to goods imported on or after 1st January 1996.</p></content></subsection></section><section eId="section-28"><num>28</num><heading>Adaptation of aircraft and hovercraft</heading><subsection eId="section-28-1"><num>(1)</num><content><p>Section 22 of the <noteRef href="#m00037" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Value Added Tax Act 1994 shall be omitted.</p></content></subsection><subsection eId="section-28-2"><num>(2)</num><content><p>This section shall apply to supplies made on or after 1st January 1996.</p></content></subsection></section><section eId="section-29"><num>29</num><heading>Work on materials</heading><hcontainer name="wrapper2"><subsection eId="section-29-1"><num>(1)</num><content><p>The Value Added Tax Act 1994 shall be amended as follows.</p></content></subsection><subsection eId="section-29-2"><num>(2)</num><content><p><mod>After subsection (2) of section 30 there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(2A)</num><intro><p>A supply by a person of services which consist of applying a treatment or process to another person’s goods is zero-rated by virtue of this subsection if by doing so he produces goods, and either—</p></intro><level class="para1"><num>(a)</num><content><p>those goods are of a description for the time being specified in Schedule 8; or</p></content></level><level class="para1"><num>(b)</num><content><p>a supply by him of those goods to the person to whom he supplies the services would be of a description so specified.</p></content></level></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-29-3"><num>(3)</num><content><p><mod>In subsection (5) of section 55 (supplies of gold), after paragraph (b) there shall be inserted the following—<quotedText startQuote="“">; or</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(c)</num><content><p>any supply of services consisting in the application to another person’s goods of a treatment or process which produces goods a supply of which would fall within paragraph (a) above.</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></subsection></hcontainer><hcontainer name="wrapper2"><intro><p>and the word “or” at the end of paragraph (a) shall be omitted.</p></intro><subsection eId="section-29-4"><num>(4)</num><content><p>Paragraph 2 of Schedule 4 (which provides that the treatment or processing of another person’s goods shall in certain circumstances be a supply of goods) shall be omitted.</p></content></subsection><subsection eId="section-29-5"><num>(5)</num><content><p>This section shall apply to supplies made on or after 1st January 1996.</p></content></subsection></hcontainer></section></hcontainer>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-25"><num>25</num><heading>EC Second VAT Simplification Directive</heading><content><p>Sections 26 to 29 of and Schedule 3 to this Act are for the purpose of giving effect to requirements of the directive of the Council of the European Communities dated 17th May 1977 No.<ref eId="c00001" href="http://www.legislation.gov.uk/european/directive/1977/0388">77/388/EEC</ref> and the amendments of that directive by the directive of that Council dated 10th April 1995 No.<ref eId="c00002" href="http://www.legislation.gov.uk/european/directive/1995/0007">95/7/EC</ref> (amendments with a view to introducing new simplification measures with regard to value added tax).</p></content></section>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-26"><num>26</num><heading>Fiscal and other warehousing</heading><subsection eId="section-26-1"><num>(1)</num><content><p>The provisions of Schedule 3 to this Act shall have effect.</p></content></subsection><subsection eId="section-26-2"><num>(2)</num><content><p>Subject to subsection (3) below, this section and Schedule 3 to this Act shall come into force on such day as the Commissioners of Customs and Excise may by order made by statutory instrument appoint, and shall apply to any acquisition of goods from another member State and any supply taking place on or after that day.</p></content></subsection><subsection eId="section-26-3"><num>(3)</num><content><p>In so far as the provisions inserted by Schedule 3 to this Act confer power to make regulations they shall come into force on the day this Act is passed.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-26-1"><num>(1)</num><content><p>The provisions of Schedule 3 to this Act shall have effect.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-26-2"><num>(2)</num><content><p>Subject to subsection (3) below, this section and Schedule 3 to this Act shall come into force on such day as the Commissioners of Customs and Excise may by order made by statutory instrument appoint, and shall apply to any acquisition of goods from another member State and any supply taking place on or after that day.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-26-3"><num>(3)</num><content><p>In so far as the provisions inserted by Schedule 3 to this Act confer power to make regulations they shall come into force on the day this Act is passed.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-27"><num>27</num><heading>Value of imported goods</heading><subsection eId="section-27-1"><num>(1)</num><content><p>Section 21 of the <noteRef href="#m00036" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Value Added Tax Act 1994 (value of imported goods) shall be amended as follows.</p></content></subsection><subsection eId="section-27-2"><num>(2)</num><content><p>In subsection (2) of that section at the end of paragraph (a) the word “and” shall be omitted.</p></content></subsection><subsection eId="section-27-3"><num>(3)</num><content><p><mod>For paragraph (b) of that subsection there shall be substituted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(b)</num><content><p>all incidental expenses, such as commission, packing, transport and insurance costs, up to the goods' first destination in the United Kingdom; and</p></content></level><level class="para1"><num>(c)</num><content><p>if at the time of the importation of the goods from a place outside the member States a further destination for the goods is known, and that destination is within the United Kingdom or another member State, all such incidental expenses in so far as they result from the transport of the goods to that other destination;</p></content></level><p>and in this subsection “the goods' first destination” means the place mentioned on the consignment note or any other document by means of which the goods are imported into the United Kingdom, or in the absence of such documentation it means the place of the first transfer of cargo in the United Kingdom.</p></quotedStructure></mod></p></content></subsection><subsection eId="section-27-4"><num>(4)</num><content><p>This section shall have effect in relation to goods imported on or after 1st January 1996.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-27-1"><num>(1)</num><content><p>Section 21 of the <noteRef href="#m00036" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Value Added Tax Act 1994 (value of imported goods) shall be amended as follows.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-27-2"><num>(2)</num><content><p>In subsection (2) of that section at the end of paragraph (a) the word “and” shall be omitted.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-27-3"><num>(3)</num><content><p><mod>For paragraph (b) of that subsection there shall be substituted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(b)</num><content><p>all incidental expenses, such as commission, packing, transport and insurance costs, up to the goods' first destination in the United Kingdom; and</p></content></level><level class="para1"><num>(c)</num><content><p>if at the time of the importation of the goods from a place outside the member States a further destination for the goods is known, and that destination is within the United Kingdom or another member State, all such incidental expenses in so far as they result from the transport of the goods to that other destination;</p></content></level><p>and in this subsection “the goods' first destination” means the place mentioned on the consignment note or any other document by means of which the goods are imported into the United Kingdom, or in the absence of such documentation it means the place of the first transfer of cargo in the United Kingdom.</p></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-27-4"><num>(4)</num><content><p>This section shall have effect in relation to goods imported on or after 1st January 1996.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-28"><num>28</num><heading>Adaptation of aircraft and hovercraft</heading><subsection eId="section-28-1"><num>(1)</num><content><p>Section 22 of the <noteRef href="#m00037" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Value Added Tax Act 1994 shall be omitted.</p></content></subsection><subsection eId="section-28-2"><num>(2)</num><content><p>This section shall apply to supplies made on or after 1st January 1996.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-28-1"><num>(1)</num><content><p>Section 22 of the <noteRef href="#m00037" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Value Added Tax Act 1994 shall be omitted.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-28-2"><num>(2)</num><content><p>This section shall apply to supplies made on or after 1st January 1996.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-29"><num>29</num><heading>Work on materials</heading><hcontainer name="wrapper2"><subsection eId="section-29-1"><num>(1)</num><content><p>The Value Added Tax Act 1994 shall be amended as follows.</p></content></subsection><subsection eId="section-29-2"><num>(2)</num><content><p><mod>After subsection (2) of section 30 there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(2A)</num><intro><p>A supply by a person of services which consist of applying a treatment or process to another person’s goods is zero-rated by virtue of this subsection if by doing so he produces goods, and either—</p></intro><level class="para1"><num>(a)</num><content><p>those goods are of a description for the time being specified in Schedule 8; or</p></content></level><level class="para1"><num>(b)</num><content><p>a supply by him of those goods to the person to whom he supplies the services would be of a description so specified.</p></content></level></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-29-3"><num>(3)</num><content><p><mod>In subsection (5) of section 55 (supplies of gold), after paragraph (b) there shall be inserted the following—<quotedText startQuote="“">; or</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(c)</num><content><p>any supply of services consisting in the application to another person’s goods of a treatment or process which produces goods a supply of which would fall within paragraph (a) above.</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></subsection></hcontainer><hcontainer name="wrapper2"><intro><p>and the word “or” at the end of paragraph (a) shall be omitted.</p></intro><subsection eId="section-29-4"><num>(4)</num><content><p>Paragraph 2 of Schedule 4 (which provides that the treatment or processing of another person’s goods shall in certain circumstances be a supply of goods) shall be omitted.</p></content></subsection><subsection eId="section-29-5"><num>(5)</num><content><p>This section shall apply to supplies made on or after 1st January 1996.</p></content></subsection></hcontainer></section>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="wrapper2"><subsection eId="section-29-1"><num>(1)</num><content><p>The Value Added Tax Act 1994 shall be amended as follows.</p></content></subsection><subsection eId="section-29-2"><num>(2)</num><content><p><mod>After subsection (2) of section 30 there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(2A)</num><intro><p>A supply by a person of services which consist of applying a treatment or process to another person’s goods is zero-rated by virtue of this subsection if by doing so he produces goods, and either—</p></intro><level class="para1"><num>(a)</num><content><p>those goods are of a description for the time being specified in Schedule 8; or</p></content></level><level class="para1"><num>(b)</num><content><p>a supply by him of those goods to the person to whom he supplies the services would be of a description so specified.</p></content></level></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-29-3"><num>(3)</num><content><p><mod>In subsection (5) of section 55 (supplies of gold), after paragraph (b) there shall be inserted the following—<quotedText startQuote="“">; or</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(c)</num><content><p>any supply of services consisting in the application to another person’s goods of a treatment or process which produces goods a supply of which would fall within paragraph (a) above.</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></subsection></hcontainer>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-29-1"><num>(1)</num><content><p>The Value Added Tax Act 1994 shall be amended as follows.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-29-2"><num>(2)</num><content><p><mod>After subsection (2) of section 30 there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(2A)</num><intro><p>A supply by a person of services which consist of applying a treatment or process to another person’s goods is zero-rated by virtue of this subsection if by doing so he produces goods, and either—</p></intro><level class="para1"><num>(a)</num><content><p>those goods are of a description for the time being specified in Schedule 8; or</p></content></level><level class="para1"><num>(b)</num><content><p>a supply by him of those goods to the person to whom he supplies the services would be of a description so specified.</p></content></level></subsection></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-29-3"><num>(3)</num><content><p><mod>In subsection (5) of section 55 (supplies of gold), after paragraph (b) there shall be inserted the following—<quotedText startQuote="“">; or</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(c)</num><content><p>any supply of services consisting in the application to another person’s goods of a treatment or process which produces goods a supply of which would fall within paragraph (a) above.</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></subsection>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="wrapper2"><intro><p>and the word “or” at the end of paragraph (a) shall be omitted.</p></intro><subsection eId="section-29-4"><num>(4)</num><content><p>Paragraph 2 of Schedule 4 (which provides that the treatment or processing of another person’s goods shall in certain circumstances be a supply of goods) shall be omitted.</p></content></subsection><subsection eId="section-29-5"><num>(5)</num><content><p>This section shall apply to supplies made on or after 1st January 1996.</p></content></subsection></hcontainer>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-29-4"><num>(4)</num><content><p>Paragraph 2 of Schedule 4 (which provides that the treatment or processing of another person’s goods shall in certain circumstances be a supply of goods) shall be omitted.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-29-5"><num>(5)</num><content><p>This section shall apply to supplies made on or after 1st January 1996.</p></content></subsection>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="part-II-crossheading-other-provisions-relating-to-charges-to-vat"><heading>Other provisions relating to charges to VAT</heading><section eId="section-30"><num>30</num><heading>Refunds in connection with construction and conversion</heading><subsection eId="section-30-1"><num>(1)</num><content><p><mod>For subsection (1) of section 35 of the Value Added Tax Act 1994 (refund of VAT to persons constructing certain buildings) there shall be substituted the following subsections—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1)</num><intro><p>Where—</p></intro><level class="para1"><num>(a)</num><content><p>a person carries out works to which this section applies,</p></content></level><level class="para1"><num>(b)</num><content><p>his carrying out of the works is lawful and otherwise than in the course or furtherance of any business, and</p></content></level><level class="para1"><num>(c)</num><content><p>VAT is chargeable on the supply, acquisition or importation of any goods used by him for the purposes of the works,</p></content></level><wrapUp><p>the Commissioners shall, on a claim made in that behalf, refund to that person the amount of VAT so chargeable.</p></wrapUp></subsection><subsection><num>(1A)</num><intro><p>The works to which this section applies are—</p></intro><level class="para1"><num>(a)</num><content><p>the construction of a building designed as a dwelling or number of dwellings;</p></content></level><level class="para1"><num>(b)</num><content><p>the construction of a building for use solely for a relevant residential purpose or relevant charitable purpose; and</p></content></level><level class="para1"><num>(c)</num><content><p>a residential conversion.</p></content></level></subsection><subsection><num>(1B)</num><content><p>For the purposes of this section goods shall be treated as used for the purposes of works to which this section applies by the person carrying out the works in so far only as they are building materials which, in the course of the works, are incorporated in the building in question or its site.</p></content></subsection><subsection><num>(1C)</num><intro><p>Where—</p></intro><level class="para1"><num>(a)</num><content><p>a person (“the relevant person”) carries out a residential conversion by arranging for any of the work of the conversion to be done by another (“a contractor”),</p></content></level><level class="para1"><num>(b)</num><content><p>the relevant person’s carrying out of the conversion is lawful and otherwise than in the course or furtherance of any business,</p></content></level><level class="para1"><num>(c)</num><content><p>the contractor is not acting as an architect, surveyor or consultant or in a supervisory capacity, and</p></content></level><level class="para1"><num>(d)</num><content><p>VAT is chargeable on services consisting in the work done by the contractor,</p></content></level><wrapUp><p>the Commissioners shall, on a claim made in that behalf, refund to the relevant person the amount of VAT so chargeable.</p></wrapUp></subsection><subsection><num>(1D)</num><intro><p>For the purposes of this section works constitute a residential conversion to the extent that they consist in the conversion of a non-residential building, or a non-residential part of a building, into—</p></intro><level class="para1"><num>(a)</num><content><p>a building designed as a dwelling or a number of dwellings;</p></content></level><level class="para1"><num>(b)</num><content><p>a building intended for use solely for a relevant residential purpose; or</p></content></level><level class="para1"><num>(c)</num><content><p>anything which would fall within paragraph (a) or (b) above if different parts of a building were treated as separate buildings.</p></content></level></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-30-2"><num>(2)</num><content><p>In subsection (2) of that section (method of making claim), after “may by regulations prescribe” there shall be inserted “or, in the case of documents, as the Commissioners may determine in accordance with the regulations”.</p></content></subsection><subsection eId="section-30-3"><num>(3)</num><content><p><mod>After subsection (3) of that section there shall be inserted the following subsections—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(4)</num><content><p>The notes to Group 5 of Schedule 8 shall apply for construing this section as they apply for construing that Group.</p></content></subsection><subsection><num>(5)</num><intro><p>The power of the Treasury by order under section 30 to vary Schedule 8 shall include—</p></intro><level class="para1"><num>(a)</num><content><p>power to apply any variation made by the order for the purposes of this section; and</p></content></level><level class="para1"><num>(b)</num><content><p>power to make such consequential modifications of this section as they may think fit.</p></content></level></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-30-4"><num>(4)</num><content><p>This section applies in relation to any case in which a claim for repayment under section 35 of the <noteRef href="#m00038" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Value Added Tax Act 1994 is made at any time on or after the day on which this Act is passed.</p></content></subsection></section><section eId="section-31"><num>31</num><heading>Groups: anti-avoidance</heading><subsection eId="section-31-1"><num>(1)</num><content><p><mod>In section 43 of the <noteRef href="#m00039" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Value Added Tax Act 1994 (groups of companies), after subsection (8) there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(9)</num><content><p>Schedule 9A (which makes provision for ensuring that this section is not used for tax avoidance) shall have effect.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-31-2"><num>(2)</num><content><p>After Schedule 9 to that Act there shall be inserted the Schedule set out in Schedule 4 to this Act.</p></content></subsection><subsection eId="section-31-3"><num>(3)</num><content><p><mod>In section 83 of that Act (appeals), after paragraph (w) there shall be inserted the following paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(wa)</num><content><p>any direction or assessment under Schedule 9A;</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-31-4"><num>(4)</num><content><p><mod>In section 84 of that Act (further provisions relating to appeals), after subsection (7) there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(7A)</num><intro><p>Where there is an appeal against a decision to make such a direction as is mentioned in section 83(wa), the cases in which the tribunal shall allow the appeal shall include (in addition to the case where the conditions for the making of the direction were not fulfilled) the case where the tribunal are satisfied, in relation to the relevant event by reference to which the direction was given, that—</p></intro><level class="para1"><num>(a)</num><content><p>the change in the treatment of the body corporate, or</p></content></level><level class="para1"><num>(b)</num><content><p>the transaction in question,</p></content></level><wrapUp><p>had as its main purpose or, as the case may be, as each of its main purposes a genuine commercial purpose unconnected with the fulfilment of the condition specified in paragraph 1(3) of Schedule 9A.</p></wrapUp></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-31-5"><num>(5)</num><content><p>Subsection (1A) of section 43 of that Act shall not have effect in relation to supplies on or after the day on which this Act is passed.</p></content></subsection></section><section eId="section-32"><num>32</num><heading>Supplies of gold etc</heading><subsection eId="section-32-1"><num>(1)</num><content><p><mod>In section 55 of the Value Added Tax Act 1994 (supplies of gold), for paragraph (a) of subsection (5) there shall be substituted the following paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(a)</num><content><p>any supply of goods consisting in fine gold, in gold grain of any purity or in gold coins of any purity; or</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-32-2"><num>(2)</num><content><p>This section applies in relation to any supply after 28th November 1995.</p></content></subsection></section><section eId="section-33"><num>33</num><heading>Small gifts</heading><subsection eId="section-33-1"><num>(1)</num><content><p>In Schedule 4 to the <noteRef href="#m00040" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Value Added Tax Act 1994 (matters to be treated as supply of goods or services), in paragraph 5(2)(a) (gift of goods in the course or furtherance of a business not a supply if cost to donor is not more than £10), for “£10” there shall be substituted “£15”.</p></content></subsection><subsection eId="section-33-2"><num>(2)</num><content><p><mod>At the end of paragraph 5 of Schedule 4 to that Act there shall be inserted the following sub-paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><subparagraph><num>(7)</num><content><p>The Treasury may by order substitute for the sum for the time being specified in sub-paragraph (2)(a) above such sum, not being less than £10, as they think fit.</p></content></subparagraph></quotedStructure></mod></p></content></subsection><subsection eId="section-33-3"><num>(3)</num><content><p><mod>In section 97(4) of that Act (orders which are subject to affirmative procedure), after paragraph (a) there shall be inserted the following paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(ab)</num><content><p>an order under paragraph 5(7) of Schedule 4 substituting a lesser sum for the sum for the time being specified in paragraph 5(2)(a) of that Schedule;</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-33-4"><num>(4)</num><content><p>Subsection (1) above shall apply where a gift is made after 28th November 1995.</p></content></subsection></section></hcontainer>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-30"><num>30</num><heading>Refunds in connection with construction and conversion</heading><subsection eId="section-30-1"><num>(1)</num><content><p><mod>For subsection (1) of section 35 of the Value Added Tax Act 1994 (refund of VAT to persons constructing certain buildings) there shall be substituted the following subsections—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1)</num><intro><p>Where—</p></intro><level class="para1"><num>(a)</num><content><p>a person carries out works to which this section applies,</p></content></level><level class="para1"><num>(b)</num><content><p>his carrying out of the works is lawful and otherwise than in the course or furtherance of any business, and</p></content></level><level class="para1"><num>(c)</num><content><p>VAT is chargeable on the supply, acquisition or importation of any goods used by him for the purposes of the works,</p></content></level><wrapUp><p>the Commissioners shall, on a claim made in that behalf, refund to that person the amount of VAT so chargeable.</p></wrapUp></subsection><subsection><num>(1A)</num><intro><p>The works to which this section applies are—</p></intro><level class="para1"><num>(a)</num><content><p>the construction of a building designed as a dwelling or number of dwellings;</p></content></level><level class="para1"><num>(b)</num><content><p>the construction of a building for use solely for a relevant residential purpose or relevant charitable purpose; and</p></content></level><level class="para1"><num>(c)</num><content><p>a residential conversion.</p></content></level></subsection><subsection><num>(1B)</num><content><p>For the purposes of this section goods shall be treated as used for the purposes of works to which this section applies by the person carrying out the works in so far only as they are building materials which, in the course of the works, are incorporated in the building in question or its site.</p></content></subsection><subsection><num>(1C)</num><intro><p>Where—</p></intro><level class="para1"><num>(a)</num><content><p>a person (“the relevant person”) carries out a residential conversion by arranging for any of the work of the conversion to be done by another (“a contractor”),</p></content></level><level class="para1"><num>(b)</num><content><p>the relevant person’s carrying out of the conversion is lawful and otherwise than in the course or furtherance of any business,</p></content></level><level class="para1"><num>(c)</num><content><p>the contractor is not acting as an architect, surveyor or consultant or in a supervisory capacity, and</p></content></level><level class="para1"><num>(d)</num><content><p>VAT is chargeable on services consisting in the work done by the contractor,</p></content></level><wrapUp><p>the Commissioners shall, on a claim made in that behalf, refund to the relevant person the amount of VAT so chargeable.</p></wrapUp></subsection><subsection><num>(1D)</num><intro><p>For the purposes of this section works constitute a residential conversion to the extent that they consist in the conversion of a non-residential building, or a non-residential part of a building, into—</p></intro><level class="para1"><num>(a)</num><content><p>a building designed as a dwelling or a number of dwellings;</p></content></level><level class="para1"><num>(b)</num><content><p>a building intended for use solely for a relevant residential purpose; or</p></content></level><level class="para1"><num>(c)</num><content><p>anything which would fall within paragraph (a) or (b) above if different parts of a building were treated as separate buildings.</p></content></level></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-30-2"><num>(2)</num><content><p>In subsection (2) of that section (method of making claim), after “may by regulations prescribe” there shall be inserted “or, in the case of documents, as the Commissioners may determine in accordance with the regulations”.</p></content></subsection><subsection eId="section-30-3"><num>(3)</num><content><p><mod>After subsection (3) of that section there shall be inserted the following subsections—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(4)</num><content><p>The notes to Group 5 of Schedule 8 shall apply for construing this section as they apply for construing that Group.</p></content></subsection><subsection><num>(5)</num><intro><p>The power of the Treasury by order under section 30 to vary Schedule 8 shall include—</p></intro><level class="para1"><num>(a)</num><content><p>power to apply any variation made by the order for the purposes of this section; and</p></content></level><level class="para1"><num>(b)</num><content><p>power to make such consequential modifications of this section as they may think fit.</p></content></level></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-30-4"><num>(4)</num><content><p>This section applies in relation to any case in which a claim for repayment under section 35 of the <noteRef href="#m00038" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Value Added Tax Act 1994 is made at any time on or after the day on which this Act is passed.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-30-1"><num>(1)</num><content><p><mod>For subsection (1) of section 35 of the Value Added Tax Act 1994 (refund of VAT to persons constructing certain buildings) there shall be substituted the following subsections—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1)</num><intro><p>Where—</p></intro><level class="para1"><num>(a)</num><content><p>a person carries out works to which this section applies,</p></content></level><level class="para1"><num>(b)</num><content><p>his carrying out of the works is lawful and otherwise than in the course or furtherance of any business, and</p></content></level><level class="para1"><num>(c)</num><content><p>VAT is chargeable on the supply, acquisition or importation of any goods used by him for the purposes of the works,</p></content></level><wrapUp><p>the Commissioners shall, on a claim made in that behalf, refund to that person the amount of VAT so chargeable.</p></wrapUp></subsection><subsection><num>(1A)</num><intro><p>The works to which this section applies are—</p></intro><level class="para1"><num>(a)</num><content><p>the construction of a building designed as a dwelling or number of dwellings;</p></content></level><level class="para1"><num>(b)</num><content><p>the construction of a building for use solely for a relevant residential purpose or relevant charitable purpose; and</p></content></level><level class="para1"><num>(c)</num><content><p>a residential conversion.</p></content></level></subsection><subsection><num>(1B)</num><content><p>For the purposes of this section goods shall be treated as used for the purposes of works to which this section applies by the person carrying out the works in so far only as they are building materials which, in the course of the works, are incorporated in the building in question or its site.</p></content></subsection><subsection><num>(1C)</num><intro><p>Where—</p></intro><level class="para1"><num>(a)</num><content><p>a person (“the relevant person”) carries out a residential conversion by arranging for any of the work of the conversion to be done by another (“a contractor”),</p></content></level><level class="para1"><num>(b)</num><content><p>the relevant person’s carrying out of the conversion is lawful and otherwise than in the course or furtherance of any business,</p></content></level><level class="para1"><num>(c)</num><content><p>the contractor is not acting as an architect, surveyor or consultant or in a supervisory capacity, and</p></content></level><level class="para1"><num>(d)</num><content><p>VAT is chargeable on services consisting in the work done by the contractor,</p></content></level><wrapUp><p>the Commissioners shall, on a claim made in that behalf, refund to the relevant person the amount of VAT so chargeable.</p></wrapUp></subsection><subsection><num>(1D)</num><intro><p>For the purposes of this section works constitute a residential conversion to the extent that they consist in the conversion of a non-residential building, or a non-residential part of a building, into—</p></intro><level class="para1"><num>(a)</num><content><p>a building designed as a dwelling or a number of dwellings;</p></content></level><level class="para1"><num>(b)</num><content><p>a building intended for use solely for a relevant residential purpose; or</p></content></level><level class="para1"><num>(c)</num><content><p>anything which would fall within paragraph (a) or (b) above if different parts of a building were treated as separate buildings.</p></content></level></subsection></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-30-2"><num>(2)</num><content><p>In subsection (2) of that section (method of making claim), after “may by regulations prescribe” there shall be inserted “or, in the case of documents, as the Commissioners may determine in accordance with the regulations”.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-30-3"><num>(3)</num><content><p><mod>After subsection (3) of that section there shall be inserted the following subsections—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(4)</num><content><p>The notes to Group 5 of Schedule 8 shall apply for construing this section as they apply for construing that Group.</p></content></subsection><subsection><num>(5)</num><intro><p>The power of the Treasury by order under section 30 to vary Schedule 8 shall include—</p></intro><level class="para1"><num>(a)</num><content><p>power to apply any variation made by the order for the purposes of this section; and</p></content></level><level class="para1"><num>(b)</num><content><p>power to make such consequential modifications of this section as they may think fit.</p></content></level></subsection></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-30-4"><num>(4)</num><content><p>This section applies in relation to any case in which a claim for repayment under section 35 of the <noteRef href="#m00038" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Value Added Tax Act 1994 is made at any time on or after the day on which this Act is passed.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-31"><num>31</num><heading>Groups: anti-avoidance</heading><subsection eId="section-31-1"><num>(1)</num><content><p><mod>In section 43 of the <noteRef href="#m00039" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Value Added Tax Act 1994 (groups of companies), after subsection (8) there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(9)</num><content><p>Schedule 9A (which makes provision for ensuring that this section is not used for tax avoidance) shall have effect.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-31-2"><num>(2)</num><content><p>After Schedule 9 to that Act there shall be inserted the Schedule set out in Schedule 4 to this Act.</p></content></subsection><subsection eId="section-31-3"><num>(3)</num><content><p><mod>In section 83 of that Act (appeals), after paragraph (w) there shall be inserted the following paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(wa)</num><content><p>any direction or assessment under Schedule 9A;</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-31-4"><num>(4)</num><content><p><mod>In section 84 of that Act (further provisions relating to appeals), after subsection (7) there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(7A)</num><intro><p>Where there is an appeal against a decision to make such a direction as is mentioned in section 83(wa), the cases in which the tribunal shall allow the appeal shall include (in addition to the case where the conditions for the making of the direction were not fulfilled) the case where the tribunal are satisfied, in relation to the relevant event by reference to which the direction was given, that—</p></intro><level class="para1"><num>(a)</num><content><p>the change in the treatment of the body corporate, or</p></content></level><level class="para1"><num>(b)</num><content><p>the transaction in question,</p></content></level><wrapUp><p>had as its main purpose or, as the case may be, as each of its main purposes a genuine commercial purpose unconnected with the fulfilment of the condition specified in paragraph 1(3) of Schedule 9A.</p></wrapUp></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-31-5"><num>(5)</num><content><p>Subsection (1A) of section 43 of that Act shall not have effect in relation to supplies on or after the day on which this Act is passed.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-31-1"><num>(1)</num><content><p><mod>In section 43 of the <noteRef href="#m00039" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Value Added Tax Act 1994 (groups of companies), after subsection (8) there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(9)</num><content><p>Schedule 9A (which makes provision for ensuring that this section is not used for tax avoidance) shall have effect.</p></content></subsection></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-31-2"><num>(2)</num><content><p>After Schedule 9 to that Act there shall be inserted the Schedule set out in Schedule 4 to this Act.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-31-3"><num>(3)</num><content><p><mod>In section 83 of that Act (appeals), after paragraph (w) there shall be inserted the following paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(wa)</num><content><p>any direction or assessment under Schedule 9A;</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-31-4"><num>(4)</num><content><p><mod>In section 84 of that Act (further provisions relating to appeals), after subsection (7) there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(7A)</num><intro><p>Where there is an appeal against a decision to make such a direction as is mentioned in section 83(wa), the cases in which the tribunal shall allow the appeal shall include (in addition to the case where the conditions for the making of the direction were not fulfilled) the case where the tribunal are satisfied, in relation to the relevant event by reference to which the direction was given, that—</p></intro><level class="para1"><num>(a)</num><content><p>the change in the treatment of the body corporate, or</p></content></level><level class="para1"><num>(b)</num><content><p>the transaction in question,</p></content></level><wrapUp><p>had as its main purpose or, as the case may be, as each of its main purposes a genuine commercial purpose unconnected with the fulfilment of the condition specified in paragraph 1(3) of Schedule 9A.</p></wrapUp></subsection></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-31-5"><num>(5)</num><content><p>Subsection (1A) of section 43 of that Act shall not have effect in relation to supplies on or after the day on which this Act is passed.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-32"><num>32</num><heading>Supplies of gold etc</heading><subsection eId="section-32-1"><num>(1)</num><content><p><mod>In section 55 of the Value Added Tax Act 1994 (supplies of gold), for paragraph (a) of subsection (5) there shall be substituted the following paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(a)</num><content><p>any supply of goods consisting in fine gold, in gold grain of any purity or in gold coins of any purity; or</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-32-2"><num>(2)</num><content><p>This section applies in relation to any supply after 28th November 1995.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-32-1"><num>(1)</num><content><p><mod>In section 55 of the Value Added Tax Act 1994 (supplies of gold), for paragraph (a) of subsection (5) there shall be substituted the following paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(a)</num><content><p>any supply of goods consisting in fine gold, in gold grain of any purity or in gold coins of any purity; or</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-32-2"><num>(2)</num><content><p>This section applies in relation to any supply after 28th November 1995.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-33"><num>33</num><heading>Small gifts</heading><subsection eId="section-33-1"><num>(1)</num><content><p>In Schedule 4 to the <noteRef href="#m00040" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Value Added Tax Act 1994 (matters to be treated as supply of goods or services), in paragraph 5(2)(a) (gift of goods in the course or furtherance of a business not a supply if cost to donor is not more than £10), for “£10” there shall be substituted “£15”.</p></content></subsection><subsection eId="section-33-2"><num>(2)</num><content><p><mod>At the end of paragraph 5 of Schedule 4 to that Act there shall be inserted the following sub-paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><subparagraph><num>(7)</num><content><p>The Treasury may by order substitute for the sum for the time being specified in sub-paragraph (2)(a) above such sum, not being less than £10, as they think fit.</p></content></subparagraph></quotedStructure></mod></p></content></subsection><subsection eId="section-33-3"><num>(3)</num><content><p><mod>In section 97(4) of that Act (orders which are subject to affirmative procedure), after paragraph (a) there shall be inserted the following paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(ab)</num><content><p>an order under paragraph 5(7) of Schedule 4 substituting a lesser sum for the sum for the time being specified in paragraph 5(2)(a) of that Schedule;</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-33-4"><num>(4)</num><content><p>Subsection (1) above shall apply where a gift is made after 28th November 1995.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-33-1"><num>(1)</num><content><p>In Schedule 4 to the <noteRef href="#m00040" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Value Added Tax Act 1994 (matters to be treated as supply of goods or services), in paragraph 5(2)(a) (gift of goods in the course or furtherance of a business not a supply if cost to donor is not more than £10), for “£10” there shall be substituted “£15”.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-33-2"><num>(2)</num><content><p><mod>At the end of paragraph 5 of Schedule 4 to that Act there shall be inserted the following sub-paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><subparagraph><num>(7)</num><content><p>The Treasury may by order substitute for the sum for the time being specified in sub-paragraph (2)(a) above such sum, not being less than £10, as they think fit.</p></content></subparagraph></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-33-3"><num>(3)</num><content><p><mod>In section 97(4) of that Act (orders which are subject to affirmative procedure), after paragraph (a) there shall be inserted the following paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(ab)</num><content><p>an order under paragraph 5(7) of Schedule 4 substituting a lesser sum for the sum for the time being specified in paragraph 5(2)(a) of that Schedule;</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-33-4"><num>(4)</num><content><p>Subsection (1) above shall apply where a gift is made after 28th November 1995.</p></content></subsection>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="part-II-crossheading-payment-and-enforcement"><heading>Payment and enforcement</heading><section eId="section-34"><num>34</num><heading>Method of making payments on account</heading><content><p><mod>In section 28 of the <noteRef href="#m00041" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Value Added Tax Act 1994 (payments on account of VAT), after subsection (2) there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(2A)</num><content><p>The Commissioners may give directions, to persons who are or may become liable by virtue of any order under this section to make payments on account of VAT, about the manner in which they are to make such payments; and where such a direction has been given to any person and has not subsequently been withdrawn, any duty of that person by virtue of such an order to make such a payment shall have effect as if it included a requirement for the payment to be made in the manner directed.</p></content></subsection></quotedStructure></mod></p></content></section><section eId="section-35"><num>35</num><heading>Default surcharges</heading><subsection eId="section-35-1"><num>(1)</num><content><p>The Value Added Tax Act 1994 shall be amended as follows.</p></content></subsection><subsection eId="section-35-2"><num>(2)</num><content><p><mod>After section 59 (default surcharge) there shall be inserted the following section—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>59A</num><heading>Default surcharge: payments on account</heading><subsection><num>(1)</num><intro><p>For the purposes of this section a taxable person shall be regarded as in default in respect of any prescribed accounting period if the period is one in respect of which he is required, by virtue of an order under section 28, to make any payment on account of VAT and either—</p></intro><level class="para1"><num>(a)</num><content><p>a payment which he is so required to make in respect of that period has not been received in full by the Commissioners by the day on which it became due; or</p></content></level><level class="para1"><num>(b)</num><content><p>he would, but for section 59(1A), be in default in respect of that period for the purposes of section 59.</p></content></level></subsection><subsection><num>(2)</num><intro><p>Subject to subsections (10) and (11) below, subsection (4) below applies in any case where—</p></intro><level class="para1"><num>(a)</num><content><p>a taxable person is in default in respect of a prescribed accounting period; and</p></content></level><level class="para1"><num>(b)</num><intro><p>the Commissioners serve notice on the taxable person (a “surcharge liability notice”) specifying as a surcharge period for the purposes of this section a period which—</p></intro><level class="para2"><num>(i)</num><content><p>begins, subject to subsection (3) below, on the date of the notice; and</p></content></level><level class="para2"><num>(ii)</num><content><p>ends on the first anniversary of the last day of the period referred to in paragraph (a) above.</p></content></level></level></subsection><subsection><num>(3)</num><intro><p>If—</p></intro><level class="para1"><num>(a)</num><content><p>a surcharge liability notice is served by reason of a default in respect of a prescribed accounting period, and</p></content></level><level class="para1"><num>(b)</num><content><p>that period ends at or before the expiry of an existing surcharge period already notified to the taxable person concerned,</p></content></level><wrapUp><p>the surcharge period specified in that notice shall be expressed as a continuation of the existing surcharge period; and, accordingly, the existing period and its extension shall be regarded as a single surcharge period.</p></wrapUp></subsection><subsection><num>(4)</num><intro><p>Subject to subsections (7) to (11) below, if—</p></intro><level class="para1"><num>(a)</num><content><p>a taxable person on whom a surcharge liability notice has been served is in default in respect of a prescribed accounting period,</p></content></level><level class="para1"><num>(b)</num><content><p>that prescribed accounting period is one ending within the surcharge period specified in (or extended by) that notice, and</p></content></level><level class="para1"><num>(c)</num><content><p>the aggregate value of his defaults in respect of that prescribed accounting period is more than nil,</p></content></level><wrapUp><p>that person shall be liable to a surcharge equal to whichever is the greater of £30 and the specified percentage of the aggregate value of his defaults in respect of that prescribed accounting period.</p></wrapUp></subsection><subsection><num>(5)</num><intro><p>Subject to subsections (7) to (11) below, the specified percentage referred to in subsection (4) above shall be determined in relation to a prescribed accounting period by reference to the number of such periods during the surcharge period which are periods in respect of which the taxable person is in default and in respect of which the value of his defaults is more than nil, so that—</p></intro><level class="para1"><num>(a)</num><content><p>in relation to the first such prescribed accounting period, the specified percentage is 2 per cent.;</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to the second such period, the specified percentage is 5 per cent.;</p></content></level><level class="para1"><num>(c)</num><content><p>in relation to the third such period, the specified percentage is 10 per cent.; and</p></content></level><level class="para1"><num>(d)</num><content><p>in relation to each such period after the third, the specified percentage is 15 per cent.</p></content></level></subsection><subsection><num>(6)</num><intro><p>For the purposes of this section the aggregate value of a person’s defaults in respect of a prescribed accounting period shall be calculated as follows—</p></intro><level class="para1"><num>(a)</num><content><p>where the whole or any part of a payment in respect of that period on account of VAT was not received by the Commissioners by the day on which it became due, an amount equal to that payment or, as the case may be, to that part of it shall be taken to be the value of the default relating to that payment;</p></content></level><level class="para1"><num>(b)</num><content><p>if there is more than one default with a value given by paragraph (a) above, those values shall be aggregated;</p></content></level><level class="para1"><num>(c)</num><content><p>the total given by paragraph (b) above, or (where there is only one default) the value of the default under paragraph (a) above, shall be taken to be the value for that period of that person’s defaults on payments on account;</p></content></level><level class="para1"><num>(d)</num><content><p>the value of any default by that person which is a default falling within subsection (1)(b) above shall be taken to be equal to the amount of any outstanding VAT less the amount of unpaid payments on account; and</p></content></level><level class="para1"><num>(e)</num><intro><p>the aggregate value of a person’s defaults in respect of that period shall be taken to be the aggregate of—</p></intro><level class="para2"><num>(i)</num><content><p>the value for that period of that person’s defaults (if any) on payments on account; and</p></content></level><level class="para2"><num>(ii)</num><content><p>the value of any default of his in respect of that period that falls within subsection (1)(b) above.</p></content></level></level></subsection><subsection><num>(7)</num><intro><p>In the application of subsection (6) above for the calculation of the aggregate value of a person’s defaults in respect of a prescribed accounting period—</p></intro><level class="para1"><num>(a)</num><content><p>the amount of outstanding VAT referred to in paragraph (d) of that subsection is the amount (if any) which would be the amount of that person’s outstanding VAT for that period for the purposes of section 59(4); and</p></content></level><level class="para1"><num>(b)</num><content><p>the amount of unpaid payments on account referred to in that paragraph is the amount (if any) equal to so much of any payments on account of VAT (being payments in respect of that period) as has not been received by the Commissioners by the last day on which that person is required (as mentioned in section 59(1)) to make a return for that period.</p></content></level></subsection><subsection><num>(8)</num><intro><p>If a person who, apart from this subsection, would be liable to a surcharge under subsection (4) above satisfies the Commissioners or, on appeal, a tribunal—</p></intro><level class="para1"><num>(a)</num><intro><p>in the case of a default that is material for the purposes of the surcharge and falls within subsection (1)(a) above—</p></intro><level class="para2"><num>(i)</num><content><p>that the payment on account of VAT was despatched at such a time and in such a manner that it was reasonable to expect that it would be received by the Commissioners by the day on which it became due, or</p></content></level><level class="para2"><num>(ii)</num><content><p>that there is a reasonable excuse for the payment not having been so despatched,</p></content></level><wrapUp><p>or</p></wrapUp></level><level class="para1"><num>(b)</num><content><p>in the case of a default that is material for the purposes of the surcharge and falls within subsection (1)(b) above, that the condition specified in section 59(7)(a) or (b) is satisfied as respects the default,</p></content></level><wrapUp><p>he shall not be liable to the surcharge and for the purposes of the preceding provisions of this section he shall be treated as not having been in default in respect of the prescribed accounting period in question (and, accordingly, any surcharge liability notice the service of which depended upon that default shall be deemed not to have been served).</p></wrapUp></subsection><subsection><num>(9)</num><intro><p>For the purposes of subsection (8) above, a default is material to a surcharge if—</p></intro><level class="para1"><num>(a)</num><content><p>it is the default which, by virtue of subsection (4) above, gives rise to the surcharge; or</p></content></level><level class="para1"><num>(b)</num><content><p>it is a default which was taken into account in the service of the surcharge liability notice upon which the surcharge depends and the person concerned has not previously been liable to a surcharge in respect of a prescribed accounting period ending within the surcharge period specified in or extended by that notice.</p></content></level></subsection><subsection><num>(10)</num><intro><p>In any case where—</p></intro><level class="para1"><num>(a)</num><content><p>the conduct by virtue of which a person is in default in respect of a prescribed accounting period is also conduct falling within section 69(1), and</p></content></level><level class="para1"><num>(b)</num><content><p>by reason of that conduct, the person concerned is assessed to a penalty under section 69,</p></content></level><wrapUp><p>the default shall be left out of account for the purposes of subsections (2) to (5) above.</p></wrapUp></subsection><subsection><num>(11)</num><content><p>If the Commissioners, after consultation with the Treasury, so direct, a default in respect of a prescribed accounting period specified in the direction shall be left out of account for the purposes of subsections (2) to (5) above.</p></content></subsection><subsection><num>(12)</num><content><p>For the purposes of this section the Commissioners shall be taken not to receive a payment by the day on which it becomes due unless it is made in such a manner as secures (in a case where the payment is made otherwise than in cash) that, by the last day for the payment of that amount, all the transactions can be completed that need to be completed before the whole amount of the payment becomes available to the Commissioners.</p></content></subsection><subsection><num>(13)</num><content><p>In determining for the purposes of this section whether any person would, but for section 59(1A), be in default in respect of any period for the purposes of section 59, subsection (12) above shall be deemed to apply for the purposes of section 59 as it applies for the purposes of this section.</p></content></subsection><subsection><num>(14)</num><content><p>For the purposes of this section references to a thing’s being done by any day include references to its being done on that day.</p></content></subsection></section></quotedStructure></mod></p></content></subsection><subsection eId="section-35-3"><num>(3)</num><content><p><mod>In section 59, at the beginning of subsection (1) (circumstances amounting to a default in respect of any prescribed accounting period), there shall be inserted “Subject to subsection (1A) below”; and after that subsection there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1A)</num><content><p>A person shall not be regarded for the purposes of this section as being in default in respect of any prescribed accounting period if that period is one in respect of which he is required by virtue of any order under section 28 to make any payment on account of VAT.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-35-4"><num>(4)</num><content><p><mod>After subsection (10) of that section there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(11)</num><content><p>For the purposes of this section references to a thing’s being done by any day include references to its being done on that day.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-35-5"><num>(5)</num><content><p><mod>After the section 59A inserted by subsection (2) above there shall be inserted the following section—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>59B</num><heading>Relationship between sections 59 and 59A</heading><subsection><num>(1)</num><intro><p>This section applies in each of the following cases, namely—</p></intro><level class="para1"><num>(a)</num><content><p>where a section 28 accounting period ends within a surcharge period begun or extended by the service on a taxable person (whether before or after the coming into force of section 59A) of a surcharge liability notice under section 59; and</p></content></level><level class="para1"><num>(b)</num><content><p>where a prescribed accounting period which is not a section 28 accounting period ends within a surcharge period begun or extended by the service on a taxable person of a surcharge liability notice under section 59A.</p></content></level></subsection><subsection><num>(2)</num><intro><p>In a case falling within subsection (1)(a) above section 59A shall have effect as if—</p></intro><level class="para1"><num>(a)</num><content><p>subject to paragraph (b) below, the section 28 accounting period were deemed to be a period ending within a surcharge period begun or, as the case may be, extended by a notice served under section 59A; but</p></content></level><level class="para1"><num>(b)</num><intro><p>any question—</p></intro><level class="para2"><num>(i)</num><content><p>whether a surcharge period was begun or extended by the notice, or</p></content></level><level class="para2"><num>(ii)</num><content><p>whether the taxable person was in default in respect of any prescribed accounting period which was not a section 28 accounting period but ended within the surcharge period begun or extended by that notice,</p></content></level><wrapUp><p>were to be determined as it would be determined for the purposes of section 59.</p></wrapUp></level></subsection><subsection><num>(3)</num><intro><p>In a case falling within subsection (1)(b) above section 59 shall have effect as if—</p></intro><level class="para1"><num>(a)</num><content><p>subject to paragraph (b) below, the prescribed accounting period that is not a section 28 accounting period were deemed to be a period ending within a surcharge period begun or, as the case may be, extended by a notice served under section 59;</p></content></level><level class="para1"><num>(b)</num><intro><p>any question—</p></intro><level class="para2"><num>(i)</num><content><p>whether a surcharge period was begun or extended by the notice, or</p></content></level><level class="para2"><num>(ii)</num><content><p>whether the taxable person was in default in respect of any prescribed accounting period which was a section 28 accounting period but ended within the surcharge period begun or extended by that notice,</p></content></level><wrapUp><p>were to be determined as it would be determined for the purposes of section 59A; and</p></wrapUp></level><level class="para1"><num>(c)</num><content><p>that person were to be treated as having had outstanding VAT for a section 28 accounting period in any case where the aggregate value of his defaults in respect of that period was, for the purposes of section 59A, more than nil.</p></content></level></subsection><subsection><num>(4)</num><content><p>In this section “a section 28 accounting period”, in relation to a taxable person, means any prescribed accounting period ending on or after the day on which the Finance Act 1996 was passed in respect of which that person is liable by virtue of an order under section 28 to make any payment on account of VAT.</p></content></subsection></section></quotedStructure></mod></p></content></subsection><subsection eId="section-35-6"><num>(6)</num><content><p>In section 69(4)(a) and (9)(b) (disregard in connection with penalties for breach of regulations of conduct giving rise to a surcharge), after the words “section 59”, in each case, there shall be inserted “or 59A”.</p></content></subsection><subsection eId="section-35-7"><num>(7)</num><content><p>In section 76(1) and (3)(a) (assessments for surcharges), after the words “section 59”, in each case, there shall be inserted “or 59A”.</p></content></subsection><subsection eId="section-35-8"><num>(8)</num><content><p>This section applies in relation to any prescribed accounting period ending on or after 1st June 1996, but a liability to make a payment on account of VAT shall be disregarded for the purposes of the amendments made by this section if the payment is one becoming due before that date.</p></content></subsection></section><section eId="section-36"><num>36</num><heading>Repeated misdeclaration penalty</heading><subsection eId="section-36-1"><num>(1)</num><content><p><mod>In section 64 of the <noteRef href="#m00042" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Value Added Tax Act 1994 (repeated misdeclaration penalty), the following subsections shall be substituted for subsections (6) and (7) (inaccuracies treated as not material)—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(6)</num><intro><p>Subject to subsection (6A) below, where by reason of conduct falling within subsection (1) above—</p></intro><level class="para1"><num>(a)</num><content><p>a person is convicted of an offence (whether under this Act or otherwise), or</p></content></level><level class="para1"><num>(b)</num><content><p>a person is assessed to a penalty under section 60 or 63,</p></content></level><wrapUp><p>the inaccuracy concerned shall not be regarded as material for the purposes of this section.</p></wrapUp></subsection><subsection><num>(6A)</num><intro><p>Subsection (6) above shall not prevent an inaccuracy by reason of which a person has been assessed to a penalty under section 63—</p></intro><level class="para1"><num>(a)</num><content><p>from being regarded as a material inaccuracy in respect of which the Commissioners may serve a penalty liability notice under subsection (2) above; or</p></content></level><level class="para1"><num>(b)</num><content><p>from being regarded for the purposes of subsection (3) above as a material inaccuracy by reference to which any prescribed accounting period falling within the penalty period is to be treated as the first prescribed accounting period so falling in respect of which there is a material inaccuracy.</p></content></level></subsection><subsection><num>(7)</num><content><p>Where subsection (5) or (6) above requires any inaccuracy to be regarded as not material for the purposes of the serving of a penalty liability notice, any such notice served in respect of that inaccuracy shall be deemed not to have been served.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-36-2"><num>(2)</num><content><p>This section has effect in relation to inaccuracies contained in returns made on or after the day on which this Act is passed.</p></content></subsection></section><section eId="section-37"><num>37</num><heading>Penalties for failure to notify</heading><subsection eId="section-37-1"><num>(1)</num><intro><p>In section 67 of the <noteRef href="#m00043" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Value Added Tax Act 1994 (penalty for failure to notify liability to be registered under Schedule 1, etc.)—</p></intro><level class="para1" eId="section-37-1-a"><num>(a)</num><content><p>in subsection (1)(a), after “6” there shall be inserted “, 7”; and</p></content></level><level class="para1" eId="section-37-1-b"><num>(b)</num><content><p>in subsection (3)(a), for “or 6” there shall be substituted “, 6 or 7”.</p></content></level></subsection><subsection eId="section-37-2"><num>(2)</num><intro><p>Subject to subsection (3) below, subsection (1) above shall apply in relation to—</p></intro><level class="para1" eId="section-37-2-a"><num>(a)</num><content><p>any person becoming liable to be registered by virtue of sub-paragraph (2) of paragraph 1 of Schedule 1 to the <noteRef href="#m00044" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Value Added Tax Act 1994 on or after 1st January 1996; and</p></content></level><level class="para1" eId="section-37-2-b"><num>(b)</num><content><p>any person who became liable to be registered by virtue of that sub-paragraph before that date but who had not notified the Commissioners of the liability before that date.</p></content></level></subsection><subsection eId="section-37-3"><num>(3)</num><content><p>In relation to a person falling within subsection (2)(b) above, section 67 of the Value Added Tax Act 1994 shall have effect as if in subsection (3)(a) for the words “the date with effect from which he is, in accordance with that paragraph, required to be registered” there were substituted “1st January 1996”.</p></content></subsection></section><section eId="section-38"><num>38</num><heading>VAT invoices and accounting</heading><subsection eId="section-38-1"><num>(1)</num><content><p>Paragraph 2 of Schedule 11 to the <noteRef href="#m00045" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Value Added Tax Act 1994 (regulations about accounting for VAT, VAT invoices etc.) shall be amended as follows.</p></content></subsection><subsection eId="section-38-2"><num>(2)</num><content><p><mod>After sub-paragraph (2) there shall be inserted the following sub-paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><subparagraph><num>(2A)</num><content><p>Regulations under this paragraph may confer power on the Commissioners to allow the requirements of any regulations as to the statements and other matters to be contained in a VAT invoice to be relaxed or dispensed with.</p></content></subparagraph></quotedStructure></mod></p></content></subsection><subsection eId="section-38-3"><num>(3)</num><content><p><mod>In sub-paragraph (10) (adjustments of VAT accounts), at the end of paragraph (c) there shall be inserted <quotedText startQuote="“">and</quotedText><quotedStructure endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><level class="para1"><num>(d)</num><content><p>for a person, for purposes connected with the making of any such entry or financial adjustment, to be required to provide to any prescribed person, or to retain, a document in the prescribed form containing prescribed particulars of the matters to which the entry or adjustment relates; and</p></content></level><level class="para1"><num>(e)</num><content><p>for enabling the Commissioners, in such cases as they may think fit, to dispense with or relax a requirement imposed by regulations made by virtue of paragraph (d) above.</p></content></level></quotedStructure></mod></p></content></subsection></section></hcontainer>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-34"><num>34</num><heading>Method of making payments on account</heading><content><p><mod>In section 28 of the <noteRef href="#m00041" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Value Added Tax Act 1994 (payments on account of VAT), after subsection (2) there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(2A)</num><content><p>The Commissioners may give directions, to persons who are or may become liable by virtue of any order under this section to make payments on account of VAT, about the manner in which they are to make such payments; and where such a direction has been given to any person and has not subsequently been withdrawn, any duty of that person by virtue of such an order to make such a payment shall have effect as if it included a requirement for the payment to be made in the manner directed.</p></content></subsection></quotedStructure></mod></p></content></section>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-35"><num>35</num><heading>Default surcharges</heading><subsection eId="section-35-1"><num>(1)</num><content><p>The Value Added Tax Act 1994 shall be amended as follows.</p></content></subsection><subsection eId="section-35-2"><num>(2)</num><content><p><mod>After section 59 (default surcharge) there shall be inserted the following section—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>59A</num><heading>Default surcharge: payments on account</heading><subsection><num>(1)</num><intro><p>For the purposes of this section a taxable person shall be regarded as in default in respect of any prescribed accounting period if the period is one in respect of which he is required, by virtue of an order under section 28, to make any payment on account of VAT and either—</p></intro><level class="para1"><num>(a)</num><content><p>a payment which he is so required to make in respect of that period has not been received in full by the Commissioners by the day on which it became due; or</p></content></level><level class="para1"><num>(b)</num><content><p>he would, but for section 59(1A), be in default in respect of that period for the purposes of section 59.</p></content></level></subsection><subsection><num>(2)</num><intro><p>Subject to subsections (10) and (11) below, subsection (4) below applies in any case where—</p></intro><level class="para1"><num>(a)</num><content><p>a taxable person is in default in respect of a prescribed accounting period; and</p></content></level><level class="para1"><num>(b)</num><intro><p>the Commissioners serve notice on the taxable person (a “surcharge liability notice”) specifying as a surcharge period for the purposes of this section a period which—</p></intro><level class="para2"><num>(i)</num><content><p>begins, subject to subsection (3) below, on the date of the notice; and</p></content></level><level class="para2"><num>(ii)</num><content><p>ends on the first anniversary of the last day of the period referred to in paragraph (a) above.</p></content></level></level></subsection><subsection><num>(3)</num><intro><p>If—</p></intro><level class="para1"><num>(a)</num><content><p>a surcharge liability notice is served by reason of a default in respect of a prescribed accounting period, and</p></content></level><level class="para1"><num>(b)</num><content><p>that period ends at or before the expiry of an existing surcharge period already notified to the taxable person concerned,</p></content></level><wrapUp><p>the surcharge period specified in that notice shall be expressed as a continuation of the existing surcharge period; and, accordingly, the existing period and its extension shall be regarded as a single surcharge period.</p></wrapUp></subsection><subsection><num>(4)</num><intro><p>Subject to subsections (7) to (11) below, if—</p></intro><level class="para1"><num>(a)</num><content><p>a taxable person on whom a surcharge liability notice has been served is in default in respect of a prescribed accounting period,</p></content></level><level class="para1"><num>(b)</num><content><p>that prescribed accounting period is one ending within the surcharge period specified in (or extended by) that notice, and</p></content></level><level class="para1"><num>(c)</num><content><p>the aggregate value of his defaults in respect of that prescribed accounting period is more than nil,</p></content></level><wrapUp><p>that person shall be liable to a surcharge equal to whichever is the greater of £30 and the specified percentage of the aggregate value of his defaults in respect of that prescribed accounting period.</p></wrapUp></subsection><subsection><num>(5)</num><intro><p>Subject to subsections (7) to (11) below, the specified percentage referred to in subsection (4) above shall be determined in relation to a prescribed accounting period by reference to the number of such periods during the surcharge period which are periods in respect of which the taxable person is in default and in respect of which the value of his defaults is more than nil, so that—</p></intro><level class="para1"><num>(a)</num><content><p>in relation to the first such prescribed accounting period, the specified percentage is 2 per cent.;</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to the second such period, the specified percentage is 5 per cent.;</p></content></level><level class="para1"><num>(c)</num><content><p>in relation to the third such period, the specified percentage is 10 per cent.; and</p></content></level><level class="para1"><num>(d)</num><content><p>in relation to each such period after the third, the specified percentage is 15 per cent.</p></content></level></subsection><subsection><num>(6)</num><intro><p>For the purposes of this section the aggregate value of a person’s defaults in respect of a prescribed accounting period shall be calculated as follows—</p></intro><level class="para1"><num>(a)</num><content><p>where the whole or any part of a payment in respect of that period on account of VAT was not received by the Commissioners by the day on which it became due, an amount equal to that payment or, as the case may be, to that part of it shall be taken to be the value of the default relating to that payment;</p></content></level><level class="para1"><num>(b)</num><content><p>if there is more than one default with a value given by paragraph (a) above, those values shall be aggregated;</p></content></level><level class="para1"><num>(c)</num><content><p>the total given by paragraph (b) above, or (where there is only one default) the value of the default under paragraph (a) above, shall be taken to be the value for that period of that person’s defaults on payments on account;</p></content></level><level class="para1"><num>(d)</num><content><p>the value of any default by that person which is a default falling within subsection (1)(b) above shall be taken to be equal to the amount of any outstanding VAT less the amount of unpaid payments on account; and</p></content></level><level class="para1"><num>(e)</num><intro><p>the aggregate value of a person’s defaults in respect of that period shall be taken to be the aggregate of—</p></intro><level class="para2"><num>(i)</num><content><p>the value for that period of that person’s defaults (if any) on payments on account; and</p></content></level><level class="para2"><num>(ii)</num><content><p>the value of any default of his in respect of that period that falls within subsection (1)(b) above.</p></content></level></level></subsection><subsection><num>(7)</num><intro><p>In the application of subsection (6) above for the calculation of the aggregate value of a person’s defaults in respect of a prescribed accounting period—</p></intro><level class="para1"><num>(a)</num><content><p>the amount of outstanding VAT referred to in paragraph (d) of that subsection is the amount (if any) which would be the amount of that person’s outstanding VAT for that period for the purposes of section 59(4); and</p></content></level><level class="para1"><num>(b)</num><content><p>the amount of unpaid payments on account referred to in that paragraph is the amount (if any) equal to so much of any payments on account of VAT (being payments in respect of that period) as has not been received by the Commissioners by the last day on which that person is required (as mentioned in section 59(1)) to make a return for that period.</p></content></level></subsection><subsection><num>(8)</num><intro><p>If a person who, apart from this subsection, would be liable to a surcharge under subsection (4) above satisfies the Commissioners or, on appeal, a tribunal—</p></intro><level class="para1"><num>(a)</num><intro><p>in the case of a default that is material for the purposes of the surcharge and falls within subsection (1)(a) above—</p></intro><level class="para2"><num>(i)</num><content><p>that the payment on account of VAT was despatched at such a time and in such a manner that it was reasonable to expect that it would be received by the Commissioners by the day on which it became due, or</p></content></level><level class="para2"><num>(ii)</num><content><p>that there is a reasonable excuse for the payment not having been so despatched,</p></content></level><wrapUp><p>or</p></wrapUp></level><level class="para1"><num>(b)</num><content><p>in the case of a default that is material for the purposes of the surcharge and falls within subsection (1)(b) above, that the condition specified in section 59(7)(a) or (b) is satisfied as respects the default,</p></content></level><wrapUp><p>he shall not be liable to the surcharge and for the purposes of the preceding provisions of this section he shall be treated as not having been in default in respect of the prescribed accounting period in question (and, accordingly, any surcharge liability notice the service of which depended upon that default shall be deemed not to have been served).</p></wrapUp></subsection><subsection><num>(9)</num><intro><p>For the purposes of subsection (8) above, a default is material to a surcharge if—</p></intro><level class="para1"><num>(a)</num><content><p>it is the default which, by virtue of subsection (4) above, gives rise to the surcharge; or</p></content></level><level class="para1"><num>(b)</num><content><p>it is a default which was taken into account in the service of the surcharge liability notice upon which the surcharge depends and the person concerned has not previously been liable to a surcharge in respect of a prescribed accounting period ending within the surcharge period specified in or extended by that notice.</p></content></level></subsection><subsection><num>(10)</num><intro><p>In any case where—</p></intro><level class="para1"><num>(a)</num><content><p>the conduct by virtue of which a person is in default in respect of a prescribed accounting period is also conduct falling within section 69(1), and</p></content></level><level class="para1"><num>(b)</num><content><p>by reason of that conduct, the person concerned is assessed to a penalty under section 69,</p></content></level><wrapUp><p>the default shall be left out of account for the purposes of subsections (2) to (5) above.</p></wrapUp></subsection><subsection><num>(11)</num><content><p>If the Commissioners, after consultation with the Treasury, so direct, a default in respect of a prescribed accounting period specified in the direction shall be left out of account for the purposes of subsections (2) to (5) above.</p></content></subsection><subsection><num>(12)</num><content><p>For the purposes of this section the Commissioners shall be taken not to receive a payment by the day on which it becomes due unless it is made in such a manner as secures (in a case where the payment is made otherwise than in cash) that, by the last day for the payment of that amount, all the transactions can be completed that need to be completed before the whole amount of the payment becomes available to the Commissioners.</p></content></subsection><subsection><num>(13)</num><content><p>In determining for the purposes of this section whether any person would, but for section 59(1A), be in default in respect of any period for the purposes of section 59, subsection (12) above shall be deemed to apply for the purposes of section 59 as it applies for the purposes of this section.</p></content></subsection><subsection><num>(14)</num><content><p>For the purposes of this section references to a thing’s being done by any day include references to its being done on that day.</p></content></subsection></section></quotedStructure></mod></p></content></subsection><subsection eId="section-35-3"><num>(3)</num><content><p><mod>In section 59, at the beginning of subsection (1) (circumstances amounting to a default in respect of any prescribed accounting period), there shall be inserted “Subject to subsection (1A) below”; and after that subsection there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1A)</num><content><p>A person shall not be regarded for the purposes of this section as being in default in respect of any prescribed accounting period if that period is one in respect of which he is required by virtue of any order under section 28 to make any payment on account of VAT.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-35-4"><num>(4)</num><content><p><mod>After subsection (10) of that section there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(11)</num><content><p>For the purposes of this section references to a thing’s being done by any day include references to its being done on that day.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-35-5"><num>(5)</num><content><p><mod>After the section 59A inserted by subsection (2) above there shall be inserted the following section—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>59B</num><heading>Relationship between sections 59 and 59A</heading><subsection><num>(1)</num><intro><p>This section applies in each of the following cases, namely—</p></intro><level class="para1"><num>(a)</num><content><p>where a section 28 accounting period ends within a surcharge period begun or extended by the service on a taxable person (whether before or after the coming into force of section 59A) of a surcharge liability notice under section 59; and</p></content></level><level class="para1"><num>(b)</num><content><p>where a prescribed accounting period which is not a section 28 accounting period ends within a surcharge period begun or extended by the service on a taxable person of a surcharge liability notice under section 59A.</p></content></level></subsection><subsection><num>(2)</num><intro><p>In a case falling within subsection (1)(a) above section 59A shall have effect as if—</p></intro><level class="para1"><num>(a)</num><content><p>subject to paragraph (b) below, the section 28 accounting period were deemed to be a period ending within a surcharge period begun or, as the case may be, extended by a notice served under section 59A; but</p></content></level><level class="para1"><num>(b)</num><intro><p>any question—</p></intro><level class="para2"><num>(i)</num><content><p>whether a surcharge period was begun or extended by the notice, or</p></content></level><level class="para2"><num>(ii)</num><content><p>whether the taxable person was in default in respect of any prescribed accounting period which was not a section 28 accounting period but ended within the surcharge period begun or extended by that notice,</p></content></level><wrapUp><p>were to be determined as it would be determined for the purposes of section 59.</p></wrapUp></level></subsection><subsection><num>(3)</num><intro><p>In a case falling within subsection (1)(b) above section 59 shall have effect as if—</p></intro><level class="para1"><num>(a)</num><content><p>subject to paragraph (b) below, the prescribed accounting period that is not a section 28 accounting period were deemed to be a period ending within a surcharge period begun or, as the case may be, extended by a notice served under section 59;</p></content></level><level class="para1"><num>(b)</num><intro><p>any question—</p></intro><level class="para2"><num>(i)</num><content><p>whether a surcharge period was begun or extended by the notice, or</p></content></level><level class="para2"><num>(ii)</num><content><p>whether the taxable person was in default in respect of any prescribed accounting period which was a section 28 accounting period but ended within the surcharge period begun or extended by that notice,</p></content></level><wrapUp><p>were to be determined as it would be determined for the purposes of section 59A; and</p></wrapUp></level><level class="para1"><num>(c)</num><content><p>that person were to be treated as having had outstanding VAT for a section 28 accounting period in any case where the aggregate value of his defaults in respect of that period was, for the purposes of section 59A, more than nil.</p></content></level></subsection><subsection><num>(4)</num><content><p>In this section “a section 28 accounting period”, in relation to a taxable person, means any prescribed accounting period ending on or after the day on which the Finance Act 1996 was passed in respect of which that person is liable by virtue of an order under section 28 to make any payment on account of VAT.</p></content></subsection></section></quotedStructure></mod></p></content></subsection><subsection eId="section-35-6"><num>(6)</num><content><p>In section 69(4)(a) and (9)(b) (disregard in connection with penalties for breach of regulations of conduct giving rise to a surcharge), after the words “section 59”, in each case, there shall be inserted “or 59A”.</p></content></subsection><subsection eId="section-35-7"><num>(7)</num><content><p>In section 76(1) and (3)(a) (assessments for surcharges), after the words “section 59”, in each case, there shall be inserted “or 59A”.</p></content></subsection><subsection eId="section-35-8"><num>(8)</num><content><p>This section applies in relation to any prescribed accounting period ending on or after 1st June 1996, but a liability to make a payment on account of VAT shall be disregarded for the purposes of the amendments made by this section if the payment is one becoming due before that date.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-35-1"><num>(1)</num><content><p>The Value Added Tax Act 1994 shall be amended as follows.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-35-2"><num>(2)</num><content><p><mod>After section 59 (default surcharge) there shall be inserted the following section—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>59A</num><heading>Default surcharge: payments on account</heading><subsection><num>(1)</num><intro><p>For the purposes of this section a taxable person shall be regarded as in default in respect of any prescribed accounting period if the period is one in respect of which he is required, by virtue of an order under section 28, to make any payment on account of VAT and either—</p></intro><level class="para1"><num>(a)</num><content><p>a payment which he is so required to make in respect of that period has not been received in full by the Commissioners by the day on which it became due; or</p></content></level><level class="para1"><num>(b)</num><content><p>he would, but for section 59(1A), be in default in respect of that period for the purposes of section 59.</p></content></level></subsection><subsection><num>(2)</num><intro><p>Subject to subsections (10) and (11) below, subsection (4) below applies in any case where—</p></intro><level class="para1"><num>(a)</num><content><p>a taxable person is in default in respect of a prescribed accounting period; and</p></content></level><level class="para1"><num>(b)</num><intro><p>the Commissioners serve notice on the taxable person (a “surcharge liability notice”) specifying as a surcharge period for the purposes of this section a period which—</p></intro><level class="para2"><num>(i)</num><content><p>begins, subject to subsection (3) below, on the date of the notice; and</p></content></level><level class="para2"><num>(ii)</num><content><p>ends on the first anniversary of the last day of the period referred to in paragraph (a) above.</p></content></level></level></subsection><subsection><num>(3)</num><intro><p>If—</p></intro><level class="para1"><num>(a)</num><content><p>a surcharge liability notice is served by reason of a default in respect of a prescribed accounting period, and</p></content></level><level class="para1"><num>(b)</num><content><p>that period ends at or before the expiry of an existing surcharge period already notified to the taxable person concerned,</p></content></level><wrapUp><p>the surcharge period specified in that notice shall be expressed as a continuation of the existing surcharge period; and, accordingly, the existing period and its extension shall be regarded as a single surcharge period.</p></wrapUp></subsection><subsection><num>(4)</num><intro><p>Subject to subsections (7) to (11) below, if—</p></intro><level class="para1"><num>(a)</num><content><p>a taxable person on whom a surcharge liability notice has been served is in default in respect of a prescribed accounting period,</p></content></level><level class="para1"><num>(b)</num><content><p>that prescribed accounting period is one ending within the surcharge period specified in (or extended by) that notice, and</p></content></level><level class="para1"><num>(c)</num><content><p>the aggregate value of his defaults in respect of that prescribed accounting period is more than nil,</p></content></level><wrapUp><p>that person shall be liable to a surcharge equal to whichever is the greater of £30 and the specified percentage of the aggregate value of his defaults in respect of that prescribed accounting period.</p></wrapUp></subsection><subsection><num>(5)</num><intro><p>Subject to subsections (7) to (11) below, the specified percentage referred to in subsection (4) above shall be determined in relation to a prescribed accounting period by reference to the number of such periods during the surcharge period which are periods in respect of which the taxable person is in default and in respect of which the value of his defaults is more than nil, so that—</p></intro><level class="para1"><num>(a)</num><content><p>in relation to the first such prescribed accounting period, the specified percentage is 2 per cent.;</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to the second such period, the specified percentage is 5 per cent.;</p></content></level><level class="para1"><num>(c)</num><content><p>in relation to the third such period, the specified percentage is 10 per cent.; and</p></content></level><level class="para1"><num>(d)</num><content><p>in relation to each such period after the third, the specified percentage is 15 per cent.</p></content></level></subsection><subsection><num>(6)</num><intro><p>For the purposes of this section the aggregate value of a person’s defaults in respect of a prescribed accounting period shall be calculated as follows—</p></intro><level class="para1"><num>(a)</num><content><p>where the whole or any part of a payment in respect of that period on account of VAT was not received by the Commissioners by the day on which it became due, an amount equal to that payment or, as the case may be, to that part of it shall be taken to be the value of the default relating to that payment;</p></content></level><level class="para1"><num>(b)</num><content><p>if there is more than one default with a value given by paragraph (a) above, those values shall be aggregated;</p></content></level><level class="para1"><num>(c)</num><content><p>the total given by paragraph (b) above, or (where there is only one default) the value of the default under paragraph (a) above, shall be taken to be the value for that period of that person’s defaults on payments on account;</p></content></level><level class="para1"><num>(d)</num><content><p>the value of any default by that person which is a default falling within subsection (1)(b) above shall be taken to be equal to the amount of any outstanding VAT less the amount of unpaid payments on account; and</p></content></level><level class="para1"><num>(e)</num><intro><p>the aggregate value of a person’s defaults in respect of that period shall be taken to be the aggregate of—</p></intro><level class="para2"><num>(i)</num><content><p>the value for that period of that person’s defaults (if any) on payments on account; and</p></content></level><level class="para2"><num>(ii)</num><content><p>the value of any default of his in respect of that period that falls within subsection (1)(b) above.</p></content></level></level></subsection><subsection><num>(7)</num><intro><p>In the application of subsection (6) above for the calculation of the aggregate value of a person’s defaults in respect of a prescribed accounting period—</p></intro><level class="para1"><num>(a)</num><content><p>the amount of outstanding VAT referred to in paragraph (d) of that subsection is the amount (if any) which would be the amount of that person’s outstanding VAT for that period for the purposes of section 59(4); and</p></content></level><level class="para1"><num>(b)</num><content><p>the amount of unpaid payments on account referred to in that paragraph is the amount (if any) equal to so much of any payments on account of VAT (being payments in respect of that period) as has not been received by the Commissioners by the last day on which that person is required (as mentioned in section 59(1)) to make a return for that period.</p></content></level></subsection><subsection><num>(8)</num><intro><p>If a person who, apart from this subsection, would be liable to a surcharge under subsection (4) above satisfies the Commissioners or, on appeal, a tribunal—</p></intro><level class="para1"><num>(a)</num><intro><p>in the case of a default that is material for the purposes of the surcharge and falls within subsection (1)(a) above—</p></intro><level class="para2"><num>(i)</num><content><p>that the payment on account of VAT was despatched at such a time and in such a manner that it was reasonable to expect that it would be received by the Commissioners by the day on which it became due, or</p></content></level><level class="para2"><num>(ii)</num><content><p>that there is a reasonable excuse for the payment not having been so despatched,</p></content></level><wrapUp><p>or</p></wrapUp></level><level class="para1"><num>(b)</num><content><p>in the case of a default that is material for the purposes of the surcharge and falls within subsection (1)(b) above, that the condition specified in section 59(7)(a) or (b) is satisfied as respects the default,</p></content></level><wrapUp><p>he shall not be liable to the surcharge and for the purposes of the preceding provisions of this section he shall be treated as not having been in default in respect of the prescribed accounting period in question (and, accordingly, any surcharge liability notice the service of which depended upon that default shall be deemed not to have been served).</p></wrapUp></subsection><subsection><num>(9)</num><intro><p>For the purposes of subsection (8) above, a default is material to a surcharge if—</p></intro><level class="para1"><num>(a)</num><content><p>it is the default which, by virtue of subsection (4) above, gives rise to the surcharge; or</p></content></level><level class="para1"><num>(b)</num><content><p>it is a default which was taken into account in the service of the surcharge liability notice upon which the surcharge depends and the person concerned has not previously been liable to a surcharge in respect of a prescribed accounting period ending within the surcharge period specified in or extended by that notice.</p></content></level></subsection><subsection><num>(10)</num><intro><p>In any case where—</p></intro><level class="para1"><num>(a)</num><content><p>the conduct by virtue of which a person is in default in respect of a prescribed accounting period is also conduct falling within section 69(1), and</p></content></level><level class="para1"><num>(b)</num><content><p>by reason of that conduct, the person concerned is assessed to a penalty under section 69,</p></content></level><wrapUp><p>the default shall be left out of account for the purposes of subsections (2) to (5) above.</p></wrapUp></subsection><subsection><num>(11)</num><content><p>If the Commissioners, after consultation with the Treasury, so direct, a default in respect of a prescribed accounting period specified in the direction shall be left out of account for the purposes of subsections (2) to (5) above.</p></content></subsection><subsection><num>(12)</num><content><p>For the purposes of this section the Commissioners shall be taken not to receive a payment by the day on which it becomes due unless it is made in such a manner as secures (in a case where the payment is made otherwise than in cash) that, by the last day for the payment of that amount, all the transactions can be completed that need to be completed before the whole amount of the payment becomes available to the Commissioners.</p></content></subsection><subsection><num>(13)</num><content><p>In determining for the purposes of this section whether any person would, but for section 59(1A), be in default in respect of any period for the purposes of section 59, subsection (12) above shall be deemed to apply for the purposes of section 59 as it applies for the purposes of this section.</p></content></subsection><subsection><num>(14)</num><content><p>For the purposes of this section references to a thing’s being done by any day include references to its being done on that day.</p></content></subsection></section></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-35-3"><num>(3)</num><content><p><mod>In section 59, at the beginning of subsection (1) (circumstances amounting to a default in respect of any prescribed accounting period), there shall be inserted “Subject to subsection (1A) below”; and after that subsection there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1A)</num><content><p>A person shall not be regarded for the purposes of this section as being in default in respect of any prescribed accounting period if that period is one in respect of which he is required by virtue of any order under section 28 to make any payment on account of VAT.</p></content></subsection></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-35-4"><num>(4)</num><content><p><mod>After subsection (10) of that section there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(11)</num><content><p>For the purposes of this section references to a thing’s being done by any day include references to its being done on that day.</p></content></subsection></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-35-5"><num>(5)</num><content><p><mod>After the section 59A inserted by subsection (2) above there shall be inserted the following section—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>59B</num><heading>Relationship between sections 59 and 59A</heading><subsection><num>(1)</num><intro><p>This section applies in each of the following cases, namely—</p></intro><level class="para1"><num>(a)</num><content><p>where a section 28 accounting period ends within a surcharge period begun or extended by the service on a taxable person (whether before or after the coming into force of section 59A) of a surcharge liability notice under section 59; and</p></content></level><level class="para1"><num>(b)</num><content><p>where a prescribed accounting period which is not a section 28 accounting period ends within a surcharge period begun or extended by the service on a taxable person of a surcharge liability notice under section 59A.</p></content></level></subsection><subsection><num>(2)</num><intro><p>In a case falling within subsection (1)(a) above section 59A shall have effect as if—</p></intro><level class="para1"><num>(a)</num><content><p>subject to paragraph (b) below, the section 28 accounting period were deemed to be a period ending within a surcharge period begun or, as the case may be, extended by a notice served under section 59A; but</p></content></level><level class="para1"><num>(b)</num><intro><p>any question—</p></intro><level class="para2"><num>(i)</num><content><p>whether a surcharge period was begun or extended by the notice, or</p></content></level><level class="para2"><num>(ii)</num><content><p>whether the taxable person was in default in respect of any prescribed accounting period which was not a section 28 accounting period but ended within the surcharge period begun or extended by that notice,</p></content></level><wrapUp><p>were to be determined as it would be determined for the purposes of section 59.</p></wrapUp></level></subsection><subsection><num>(3)</num><intro><p>In a case falling within subsection (1)(b) above section 59 shall have effect as if—</p></intro><level class="para1"><num>(a)</num><content><p>subject to paragraph (b) below, the prescribed accounting period that is not a section 28 accounting period were deemed to be a period ending within a surcharge period begun or, as the case may be, extended by a notice served under section 59;</p></content></level><level class="para1"><num>(b)</num><intro><p>any question—</p></intro><level class="para2"><num>(i)</num><content><p>whether a surcharge period was begun or extended by the notice, or</p></content></level><level class="para2"><num>(ii)</num><content><p>whether the taxable person was in default in respect of any prescribed accounting period which was a section 28 accounting period but ended within the surcharge period begun or extended by that notice,</p></content></level><wrapUp><p>were to be determined as it would be determined for the purposes of section 59A; and</p></wrapUp></level><level class="para1"><num>(c)</num><content><p>that person were to be treated as having had outstanding VAT for a section 28 accounting period in any case where the aggregate value of his defaults in respect of that period was, for the purposes of section 59A, more than nil.</p></content></level></subsection><subsection><num>(4)</num><content><p>In this section “a section 28 accounting period”, in relation to a taxable person, means any prescribed accounting period ending on or after the day on which the Finance Act 1996 was passed in respect of which that person is liable by virtue of an order under section 28 to make any payment on account of VAT.</p></content></subsection></section></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-35-6"><num>(6)</num><content><p>In section 69(4)(a) and (9)(b) (disregard in connection with penalties for breach of regulations of conduct giving rise to a surcharge), after the words “section 59”, in each case, there shall be inserted “or 59A”.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-35-7"><num>(7)</num><content><p>In section 76(1) and (3)(a) (assessments for surcharges), after the words “section 59”, in each case, there shall be inserted “or 59A”.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-35-8"><num>(8)</num><content><p>This section applies in relation to any prescribed accounting period ending on or after 1st June 1996, but a liability to make a payment on account of VAT shall be disregarded for the purposes of the amendments made by this section if the payment is one becoming due before that date.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-36"><num>36</num><heading>Repeated misdeclaration penalty</heading><subsection eId="section-36-1"><num>(1)</num><content><p><mod>In section 64 of the <noteRef href="#m00042" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Value Added Tax Act 1994 (repeated misdeclaration penalty), the following subsections shall be substituted for subsections (6) and (7) (inaccuracies treated as not material)—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(6)</num><intro><p>Subject to subsection (6A) below, where by reason of conduct falling within subsection (1) above—</p></intro><level class="para1"><num>(a)</num><content><p>a person is convicted of an offence (whether under this Act or otherwise), or</p></content></level><level class="para1"><num>(b)</num><content><p>a person is assessed to a penalty under section 60 or 63,</p></content></level><wrapUp><p>the inaccuracy concerned shall not be regarded as material for the purposes of this section.</p></wrapUp></subsection><subsection><num>(6A)</num><intro><p>Subsection (6) above shall not prevent an inaccuracy by reason of which a person has been assessed to a penalty under section 63—</p></intro><level class="para1"><num>(a)</num><content><p>from being regarded as a material inaccuracy in respect of which the Commissioners may serve a penalty liability notice under subsection (2) above; or</p></content></level><level class="para1"><num>(b)</num><content><p>from being regarded for the purposes of subsection (3) above as a material inaccuracy by reference to which any prescribed accounting period falling within the penalty period is to be treated as the first prescribed accounting period so falling in respect of which there is a material inaccuracy.</p></content></level></subsection><subsection><num>(7)</num><content><p>Where subsection (5) or (6) above requires any inaccuracy to be regarded as not material for the purposes of the serving of a penalty liability notice, any such notice served in respect of that inaccuracy shall be deemed not to have been served.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-36-2"><num>(2)</num><content><p>This section has effect in relation to inaccuracies contained in returns made on or after the day on which this Act is passed.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-36-1"><num>(1)</num><content><p><mod>In section 64 of the <noteRef href="#m00042" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Value Added Tax Act 1994 (repeated misdeclaration penalty), the following subsections shall be substituted for subsections (6) and (7) (inaccuracies treated as not material)—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(6)</num><intro><p>Subject to subsection (6A) below, where by reason of conduct falling within subsection (1) above—</p></intro><level class="para1"><num>(a)</num><content><p>a person is convicted of an offence (whether under this Act or otherwise), or</p></content></level><level class="para1"><num>(b)</num><content><p>a person is assessed to a penalty under section 60 or 63,</p></content></level><wrapUp><p>the inaccuracy concerned shall not be regarded as material for the purposes of this section.</p></wrapUp></subsection><subsection><num>(6A)</num><intro><p>Subsection (6) above shall not prevent an inaccuracy by reason of which a person has been assessed to a penalty under section 63—</p></intro><level class="para1"><num>(a)</num><content><p>from being regarded as a material inaccuracy in respect of which the Commissioners may serve a penalty liability notice under subsection (2) above; or</p></content></level><level class="para1"><num>(b)</num><content><p>from being regarded for the purposes of subsection (3) above as a material inaccuracy by reference to which any prescribed accounting period falling within the penalty period is to be treated as the first prescribed accounting period so falling in respect of which there is a material inaccuracy.</p></content></level></subsection><subsection><num>(7)</num><content><p>Where subsection (5) or (6) above requires any inaccuracy to be regarded as not material for the purposes of the serving of a penalty liability notice, any such notice served in respect of that inaccuracy shall be deemed not to have been served.</p></content></subsection></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-36-2"><num>(2)</num><content><p>This section has effect in relation to inaccuracies contained in returns made on or after the day on which this Act is passed.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-37"><num>37</num><heading>Penalties for failure to notify</heading><subsection eId="section-37-1"><num>(1)</num><intro><p>In section 67 of the <noteRef href="#m00043" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Value Added Tax Act 1994 (penalty for failure to notify liability to be registered under Schedule 1, etc.)—</p></intro><level class="para1" eId="section-37-1-a"><num>(a)</num><content><p>in subsection (1)(a), after “6” there shall be inserted “, 7”; and</p></content></level><level class="para1" eId="section-37-1-b"><num>(b)</num><content><p>in subsection (3)(a), for “or 6” there shall be substituted “, 6 or 7”.</p></content></level></subsection><subsection eId="section-37-2"><num>(2)</num><intro><p>Subject to subsection (3) below, subsection (1) above shall apply in relation to—</p></intro><level class="para1" eId="section-37-2-a"><num>(a)</num><content><p>any person becoming liable to be registered by virtue of sub-paragraph (2) of paragraph 1 of Schedule 1 to the <noteRef href="#m00044" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Value Added Tax Act 1994 on or after 1st January 1996; and</p></content></level><level class="para1" eId="section-37-2-b"><num>(b)</num><content><p>any person who became liable to be registered by virtue of that sub-paragraph before that date but who had not notified the Commissioners of the liability before that date.</p></content></level></subsection><subsection eId="section-37-3"><num>(3)</num><content><p>In relation to a person falling within subsection (2)(b) above, section 67 of the Value Added Tax Act 1994 shall have effect as if in subsection (3)(a) for the words “the date with effect from which he is, in accordance with that paragraph, required to be registered” there were substituted “1st January 1996”.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-37-1"><num>(1)</num><intro><p>In section 67 of the <noteRef href="#m00043" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Value Added Tax Act 1994 (penalty for failure to notify liability to be registered under Schedule 1, etc.)—</p></intro><level class="para1" eId="section-37-1-a"><num>(a)</num><content><p>in subsection (1)(a), after “6” there shall be inserted “, 7”; and</p></content></level><level class="para1" eId="section-37-1-b"><num>(b)</num><content><p>in subsection (3)(a), for “or 6” there shall be substituted “, 6 or 7”.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-37-1-a"><num>(a)</num><content><p>in subsection (1)(a), after “6” there shall be inserted “, 7”; and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-37-1-b"><num>(b)</num><content><p>in subsection (3)(a), for “or 6” there shall be substituted “, 6 or 7”.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-37-2"><num>(2)</num><intro><p>Subject to subsection (3) below, subsection (1) above shall apply in relation to—</p></intro><level class="para1" eId="section-37-2-a"><num>(a)</num><content><p>any person becoming liable to be registered by virtue of sub-paragraph (2) of paragraph 1 of Schedule 1 to the <noteRef href="#m00044" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Value Added Tax Act 1994 on or after 1st January 1996; and</p></content></level><level class="para1" eId="section-37-2-b"><num>(b)</num><content><p>any person who became liable to be registered by virtue of that sub-paragraph before that date but who had not notified the Commissioners of the liability before that date.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-37-2-a"><num>(a)</num><content><p>any person becoming liable to be registered by virtue of sub-paragraph (2) of paragraph 1 of Schedule 1 to the <noteRef href="#m00044" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Value Added Tax Act 1994 on or after 1st January 1996; and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-37-2-b"><num>(b)</num><content><p>any person who became liable to be registered by virtue of that sub-paragraph before that date but who had not notified the Commissioners of the liability before that date.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-37-3"><num>(3)</num><content><p>In relation to a person falling within subsection (2)(b) above, section 67 of the Value Added Tax Act 1994 shall have effect as if in subsection (3)(a) for the words “the date with effect from which he is, in accordance with that paragraph, required to be registered” there were substituted “1st January 1996”.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-38"><num>38</num><heading>VAT invoices and accounting</heading><subsection eId="section-38-1"><num>(1)</num><content><p>Paragraph 2 of Schedule 11 to the <noteRef href="#m00045" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Value Added Tax Act 1994 (regulations about accounting for VAT, VAT invoices etc.) shall be amended as follows.</p></content></subsection><subsection eId="section-38-2"><num>(2)</num><content><p><mod>After sub-paragraph (2) there shall be inserted the following sub-paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><subparagraph><num>(2A)</num><content><p>Regulations under this paragraph may confer power on the Commissioners to allow the requirements of any regulations as to the statements and other matters to be contained in a VAT invoice to be relaxed or dispensed with.</p></content></subparagraph></quotedStructure></mod></p></content></subsection><subsection eId="section-38-3"><num>(3)</num><content><p><mod>In sub-paragraph (10) (adjustments of VAT accounts), at the end of paragraph (c) there shall be inserted <quotedText startQuote="“">and</quotedText><quotedStructure endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><level class="para1"><num>(d)</num><content><p>for a person, for purposes connected with the making of any such entry or financial adjustment, to be required to provide to any prescribed person, or to retain, a document in the prescribed form containing prescribed particulars of the matters to which the entry or adjustment relates; and</p></content></level><level class="para1"><num>(e)</num><content><p>for enabling the Commissioners, in such cases as they may think fit, to dispense with or relax a requirement imposed by regulations made by virtue of paragraph (d) above.</p></content></level></quotedStructure></mod></p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-38-1"><num>(1)</num><content><p>Paragraph 2 of Schedule 11 to the <noteRef href="#m00045" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Value Added Tax Act 1994 (regulations about accounting for VAT, VAT invoices etc.) shall be amended as follows.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-38-2"><num>(2)</num><content><p><mod>After sub-paragraph (2) there shall be inserted the following sub-paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><subparagraph><num>(2A)</num><content><p>Regulations under this paragraph may confer power on the Commissioners to allow the requirements of any regulations as to the statements and other matters to be contained in a VAT invoice to be relaxed or dispensed with.</p></content></subparagraph></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-38-3"><num>(3)</num><content><p><mod>In sub-paragraph (10) (adjustments of VAT accounts), at the end of paragraph (c) there shall be inserted <quotedText startQuote="“">and</quotedText><quotedStructure endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><level class="para1"><num>(d)</num><content><p>for a person, for purposes connected with the making of any such entry or financial adjustment, to be required to provide to any prescribed person, or to retain, a document in the prescribed form containing prescribed particulars of the matters to which the entry or adjustment relates; and</p></content></level><level class="para1"><num>(e)</num><content><p>for enabling the Commissioners, in such cases as they may think fit, to dispense with or relax a requirement imposed by regulations made by virtue of paragraph (d) above.</p></content></level></quotedStructure></mod></p></content></subsection>
<part xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" eId="part-III"><num>Part III</num><heading>Landfill Tax</heading><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-III-crossheading-the-basic-provisions"><heading>The basic provisions</heading><section eId="section-39"><num>39</num><heading>Landfill tax</heading><subsection eId="section-39-1"><num>(1)</num><content><p>A tax, to be known as landfill tax, shall be charged in accordance with this Part.</p></content></subsection><subsection eId="section-39-2"><num>(2)</num><content><p>The tax shall be under the care and management of the Commissioners of Customs and Excise.</p></content></subsection></section><section eId="section-40"><num>40</num><heading>Charge to tax</heading><subsection eId="section-40-1"><num>(1)</num><content><p>Tax shall be charged on a taxable disposal.</p></content></subsection><subsection eId="section-40-2"><num>(2)</num><intro><p>A disposal is a taxable disposal if—</p></intro><level class="para1" eId="section-40-2-a"><num>(a)</num><content><p>it is a disposal of material as waste,</p></content></level><level class="para1" eId="section-40-2-b"><num>(b)</num><content><p>it is made by way of landfill,</p></content></level><level class="para1" eId="section-40-2-c"><num>(c)</num><content><p>it is made at a landfill site, and</p></content></level><level class="para1" eId="section-40-2-d"><num>(d)</num><content><p>it is made on or after 1st October 1996.</p></content></level></subsection><subsection eId="section-40-3"><num>(3)</num><content><p>For this purpose a disposal is made at a landfill site if the land on or under which it is made constitutes or falls within land which is a landfill site at the time of the disposal.</p></content></subsection></section><section eId="section-41"><num>41</num><heading>Liability to pay tax</heading><subsection eId="section-41-1"><num>(1)</num><content><p>The person liable to pay tax charged on a taxable disposal is the landfill site operator.</p></content></subsection><subsection eId="section-41-2"><num>(2)</num><content><p>The reference here to the landfill site operator is to the person who is at the time of the disposal the operator of the landfill site which constitutes or contains the land on or under which the disposal is made.</p></content></subsection></section><section eId="section-42"><num>42</num><heading>Amount of tax</heading><subsection eId="section-42-1"><num>(1)</num><intro><p>The amount of tax charged on a taxable disposal shall be found by taking—</p></intro><level class="para1" eId="section-42-1-a"><num>(a)</num><content><p>£7 for each whole tonne disposed of and a proportionately reduced sum for any additional part of a tonne, or</p></content></level><level class="para1" eId="section-42-1-b"><num>(b)</num><content><p>a proportionately reduced sum if less than a tonne is disposed of.</p></content></level></subsection><subsection eId="section-42-2"><num>(2)</num><content><p>Where the material disposed of consists entirely of qualifying material this section applies as if the reference to £7 were to £2.</p></content></subsection><subsection eId="section-42-3"><num>(3)</num><content><p>Qualifying material is material for the time being listed for the purposes of this section in an order.</p></content></subsection><subsection eId="section-42-4"><num>(4)</num><content><p>The Treasury must have regard to the object of securing that material is listed if it is of a kind commonly described as inactive or inert.</p></content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-III-crossheading-exemptions"><heading>Exemptions</heading><section eId="section-43"><num>43</num><heading>Material removed from water</heading><subsection eId="section-43-1"><num>(1)</num><intro><p>A disposal is not a taxable disposal for the purposes of this Part if it is shown to the satisfaction of the Commissioners that the disposal is of material all of which—</p></intro><level class="para1" eId="section-43-1-a"><num>(a)</num><content><p>has been removed (by dredging or otherwise) from water falling within subsection (2) below, and</p></content></level><level class="para1" eId="section-43-1-b"><num>(b)</num><content><p>formed part of or projected from the bed of the water concerned before its removal.</p></content></level></subsection><subsection eId="section-43-2"><num>(2)</num><intro><p>Water falls within this subsection if it is—</p></intro><level class="para1" eId="section-43-2-a"><num>(a)</num><content><p>a river, canal or watercourse (whether natural or artificial), or</p></content></level><level class="para1" eId="section-43-2-b"><num>(b)</num><content><p>a dock or harbour (whether natural or artificial).</p></content></level></subsection><subsection eId="section-43-3"><num>(3)</num><intro><p>A disposal is not a taxable disposal for the purposes of this Part if it is shown to the satisfaction of the Commissioners that the disposal is of material all of which—</p></intro><level class="para1" eId="section-43-3-a"><num>(a)</num><content><p>has been removed (by dredging or otherwise) from water falling within the approaches to a harbour (whether natural or artificial),</p></content></level><level class="para1" eId="section-43-3-b"><num>(b)</num><content><p>has been removed in the interests of navigation, and</p></content></level><level class="para1" eId="section-43-3-c"><num>(c)</num><content><p>formed part of or projected from the bed of the water concerned before its removal.</p></content></level></subsection><subsection eId="section-43-4"><num>(4)</num><intro><p>A disposal is not a taxable disposal for the purposes of this Part if it is shown to the satisfaction of the Commissioners that the disposal is of material all of which—</p></intro><level class="para1" eId="section-43-4-a"><num>(a)</num><content><p>consists of naturally occurring mineral material, and</p></content></level><level class="para1" eId="section-43-4-b"><num>(b)</num><content><p>has been removed (by dredging or otherwise) from the sea in the course of commercial operations carried out to obtain substances such as sand or gravel from the seabed.</p></content></level></subsection></section><section eId="section-44"><num>44</num><heading>Mining and quarrying</heading><subsection eId="section-44-1"><num>(1)</num><content><p>A disposal is not a taxable disposal for the purposes of this Part if it is shown to the satisfaction of the Commissioners that the disposal is of material all of which fulfils each of the conditions set out in subsections (2) to (4) below.</p></content></subsection><subsection eId="section-44-2"><num>(2)</num><content><p>The material must result from commercial mining operations (whether the mining is deep or open-cast) or from commercial quarrying operations.</p></content></subsection><subsection eId="section-44-3"><num>(3)</num><content><p>The material must be naturally occurring material extracted from the earth in the course of the operations.</p></content></subsection><subsection eId="section-44-4"><num>(4)</num><content><p>The material must not have been subjected to, or result from, a non-qualifying process carried out at any stage between the extraction and the disposal.</p></content></subsection><subsection eId="section-44-5"><num>(5)</num><intro><p>A non-qualifying process is—</p></intro><level class="para1" eId="section-44-5-a"><num>(a)</num><content><p>a process separate from the mining or quarrying operations, or</p></content></level><level class="para1" eId="section-44-5-b"><num>(b)</num><content><p>a process forming part of those operations and permanently altering the material’s chemical composition.</p></content></level></subsection></section><section eId="section-45"><num>45</num><heading>Pet cemeteries</heading><subsection eId="section-45-1"><num>(1)</num><intro><p>A disposal is not a taxable disposal for the purposes of this Part if—</p></intro><level class="para1" eId="section-45-1-a"><num>(a)</num><content><p>the disposal is of material consisting entirely of the remains of dead domestic pets, and</p></content></level><level class="para1" eId="section-45-1-b"><num>(b)</num><content><p>the landfill site at which the disposal is made fulfils the test set out in subsection (2) below.</p></content></level></subsection><subsection eId="section-45-2"><num>(2)</num><intro><p>The test is that during the relevant period—</p></intro><level class="para1" eId="section-45-2-a"><num>(a)</num><content><p>no landfill disposal was made at the site, or</p></content></level><level class="para1" eId="section-45-2-b"><num>(b)</num><content><p>the only landfill disposals made at the site were of material consisting entirely of the remains of dead domestic pets.</p></content></level></subsection><subsection eId="section-45-3"><num>(3)</num><intro><p>For the purposes of subsection (2) above the relevant period—</p></intro><level class="para1" eId="section-45-3-a"><num>(a)</num><content><p>begins with 1st October 1996 or (if later) with the coming into force in relation to the site of the licence or resolution mentioned in section 66 below, and</p></content></level><level class="para1" eId="section-45-3-b"><num>(b)</num><content><p>ends immediately before the disposal mentioned in subsection (1) above.</p></content></level></subsection></section><section eId="section-46"><num>46</num><heading>Power to vary</heading><subsection eId="section-46-1"><num>(1)</num><intro><p>Provision may be made by order to produce the result that—</p></intro><level class="para1" eId="section-46-1-a"><num>(a)</num><content><p>a disposal which would otherwise be a taxable disposal (by virtue of this Part as it applies for the time being) is not a taxable disposal;</p></content></level><level class="para1" eId="section-46-1-b"><num>(b)</num><content><p>a disposal which would otherwise not be a taxable disposal (by virtue of this Part as it applies for the time being) is a taxable disposal.</p></content></level></subsection><subsection eId="section-46-2"><num>(2)</num><intro><p>Without prejudice to the generality of subsection (1) above, an order under this section may—</p></intro><level class="para1" eId="section-46-2-a"><num>(a)</num><content><p>confer exemption by reference to certificates issued by the Commissioners and to conditions set out in certificates;</p></content></level><level class="para1" eId="section-46-2-b"><num>(b)</num><content><p>allow the Commissioners to direct requirements to be met before certificates can be issued;</p></content></level><level class="para1" eId="section-46-2-c"><num>(c)</num><content><p>provide for the review of decisions about certificates and for appeals relating to decisions on review.</p></content></level></subsection><subsection eId="section-46-3"><num>(3)</num><content><p>Provision may be made under this section in such way as the Treasury think fit (whether by amending this Part or otherwise).</p></content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-III-crossheading-administration"><heading>Administration</heading><section eId="section-47"><num>47</num><heading>Registration</heading><subsection eId="section-47-1"><num>(1)</num><content><p>The register kept under this section may contain such information as the Commissioners think is required for the purposes of the care and management of the tax.</p></content></subsection><subsection eId="section-47-2"><num>(2)</num><intro><p>A person who—</p></intro><level class="para1" eId="section-47-2-a"><num>(a)</num><content><p>carries out taxable activities, and</p></content></level><level class="para1" eId="section-47-2-b"><num>(b)</num><content><p>is not registered,</p></content></level><wrapUp><p>is liable to be registered.</p></wrapUp></subsection><subsection eId="section-47-3"><num>(3)</num><intro><p>Where—</p></intro><level class="para1" eId="section-47-3-a"><num>(a)</num><content><p>a person at any time forms the intention of carrying out taxable activities, and</p></content></level><level class="para1" eId="section-47-3-b"><num>(b)</num><content><p>he is not registered,</p></content></level><wrapUp><p>he shall notify the Commissioners of his intention.</p></wrapUp></subsection><subsection eId="section-47-4"><num>(4)</num><content><p>A person who at any time ceases to have the intention of carrying out taxable activities shall notify the Commissioners of that fact.</p></content></subsection><subsection eId="section-47-5"><num>(5)</num><content><p>Where a person is liable to be registered by virtue of subsection (2) above the Commissioners shall register him with effect from the time when he begins to carry out taxable activities; and this subsection applies whether or not he notifies the Commissioners under subsection (3) above.</p></content></subsection><subsection eId="section-47-6"><num>(6)</num><content><p>Where the Commissioners are satisfied that a person has ceased to carry out taxable activities they may cancel his registration with effect from the earliest practicable time after he so ceased; and this subsection applies whether or not he notifies the Commissioners under subsection (4) above.</p></content></subsection><subsection eId="section-47-7"><num>(7)</num><intro><p>Where—</p></intro><level class="para1" eId="section-47-7-a"><num>(a)</num><content><p>a person notifies the Commissioners under subsection (4) above,</p></content></level><level class="para1" eId="section-47-7-b"><num>(b)</num><content><p>they are satisfied that he will not carry out taxable activities,</p></content></level><level class="para1" eId="section-47-7-c"><num>(c)</num><content><p>they are satisfied that no tax which he is liable to pay is unpaid,</p></content></level><level class="para1" eId="section-47-7-d"><num>(d)</num><content><p>they are satisfied that no credit to which he is entitled under regulations made under section 51 below is outstanding, and</p></content></level><level class="para1" eId="section-47-7-e"><num>(e)</num><content><p>subsection (8) below does not apply,</p></content></level><wrapUp><p>the Commissioners shall cancel his registration with effect from the earliest practicable time after he ceases to carry out taxable activities.</p></wrapUp></subsection><subsection eId="section-47-8"><num>(8)</num><intro><p>Where—</p></intro><level class="para1" eId="section-47-8-a"><num>(a)</num><content><p>a person notifies the Commissioners under subsection (4) above, and</p></content></level><level class="para1" eId="section-47-8-b"><num>(b)</num><content><p>they are satisfied that he has not carried out, and will not carry out, taxable activities,</p></content></level><wrapUp><p>the Commissioners shall cancel his registration with effect from the time when he ceased to have the intention to carry out taxable activities.</p></wrapUp></subsection><subsection eId="section-47-9"><num>(9)</num><intro><p>For the purposes of this section regulations may make provision—</p></intro><level class="para1" eId="section-47-9-a"><num>(a)</num><content><p>as to the time within which a notification is to be made;</p></content></level><level class="para1" eId="section-47-9-b"><num>(b)</num><content><p>as to the form and manner in which any notification is to be made and as to the information to be contained in or provided with it;</p></content></level><level class="para1" eId="section-47-9-c"><num>(c)</num><content><p>requiring a person who has made a notification to notify the Commissioners if any information contained in or provided in connection with it is or becomes inaccurate;</p></content></level><level class="para1" eId="section-47-9-d"><num>(d)</num><content><p>as to the correction of entries in the register.</p></content></level></subsection><subsection eId="section-47-10"><num>(10)</num><intro><p>References in this Part to a registrable person are to a person who—</p></intro><level class="para1" eId="section-47-10-a"><num>(a)</num><content><p>is registered under this section, or</p></content></level><level class="para1" eId="section-47-10-b"><num>(b)</num><content><p>is liable to be registered under this section.</p></content></level></subsection></section><section eId="section-48"><num>48</num><heading>Information required to keep register up to date</heading><subsection eId="section-48-1"><num>(1)</num><intro><p>Regulations may make provision requiring a registrable person to notify the Commissioners of particulars which—</p></intro><level class="para1" eId="section-48-1-a"><num>(a)</num><content><p>are of changes in circumstances relating to the registrable person or any business carried on by him,</p></content></level><level class="para1" eId="section-48-1-b"><num>(b)</num><content><p>appear to the Commissioners to be required for the purpose of keeping the register kept under section 47 above up to date, and</p></content></level><level class="para1" eId="section-48-1-c"><num>(c)</num><content><p>are of a prescribed description.</p></content></level></subsection><subsection eId="section-48-2"><num>(2)</num><intro><p>Regulations may make provision—</p></intro><level class="para1" eId="section-48-2-a"><num>(a)</num><content><p>as to the time within which a notification is to be made;</p></content></level><level class="para1" eId="section-48-2-b"><num>(b)</num><content><p>as to the form and manner in which a notification is to be made;</p></content></level><level class="para1" eId="section-48-2-c"><num>(c)</num><content><p>requiring a person who has made a notification to notify the Commissioners if any information contained in it is inaccurate.</p></content></level></subsection></section><section eId="section-49"><num>49</num><heading>Accounting for tax and time for payment</heading><intro><p>Regulations may provide that a registrable person shall—</p></intro><level class="para1" eId="section-49-a"><num>(a)</num><content><p>account for tax by reference to such periods (accounting periods) as may be determined by or under the regulations;</p></content></level><level class="para1" eId="section-49-b"><num>(b)</num><content><p>make, in relation to accounting periods, returns in such form as may be prescribed and at such times as may be so determined;</p></content></level><level class="para1" eId="section-49-c"><num>(c)</num><content><p>pay tax at such times and in such manner as may be so determined.</p></content></level></section><section eId="section-50"><num>50</num><heading>Power to assess</heading><subsection eId="section-50-1"><num>(1)</num><intro><p>Where—</p></intro><level class="para1" eId="section-50-1-a"><num>(a)</num><content><p>a person has failed to make any returns required to be made under this Part,</p></content></level><level class="para1" eId="section-50-1-b"><num>(b)</num><content><p>a person has failed to keep any documents necessary to verify returns required to be made under this Part,</p></content></level><level class="para1" eId="section-50-1-c"><num>(c)</num><content><p>a person has failed to afford the facilities necessary to verify returns required to be made under this Part, or</p></content></level><level class="para1" eId="section-50-1-d"><num>(d)</num><content><p>it appears to the Commissioners that returns required to be made by a person under this Part are incomplete or incorrect,</p></content></level><wrapUp><p>the Commissioners may assess the amount of tax due from the person concerned to the best of their judgment and notify it to him.</p></wrapUp></subsection><subsection eId="section-50-2"><num>(2)</num><content><p>Where a person has for an accounting period been paid an amount to which he purports to be entitled under regulations made under section 51 below, then, to the extent that the amount ought not to have been paid or would not have been paid had the facts been known or been as they later turn out to be, the Commissioners may assess the amount as being tax due from him for that period and notify it to him accordingly.</p></content></subsection><subsection eId="section-50-3"><num>(3)</num><content><p>Where a person is assessed under subsections (1) and (2) above in respect of the same accounting period the assessments may be combined and notified to him as one assessment.</p></content></subsection><subsection eId="section-50-4"><num>(4)</num><content><p>Where the person failing to make a return, or making a return which appears to the Commissioners to be incomplete or incorrect, was required to make the return as a personal representative, trustee in bankruptcy, receiver, liquidator or person otherwise acting in a representative capacity in relation to another person, subsection (1) above shall apply as if the reference to tax due from him included a reference to tax due from that other person.</p></content></subsection><subsection eId="section-50-5"><num>(5)</num><intro><p>An assessment under subsection (1) or (2) above of an amount of tax due for an accounting period shall not be made after the later of the following—</p></intro><level class="para1" eId="section-50-5-a"><num>(a)</num><content><p>two years after the end of the accounting period;</p></content></level><level class="para1" eId="section-50-5-b"><num>(b)</num><content><p>one year after evidence of facts, sufficient in the Commissioners' opinion to justify the making of the assessment, comes to their knowledge;</p></content></level><wrapUp><p>but where further such evidence comes to their knowledge after the making of an assessment under subsection (1) or (2) above another assessment may be made under the subsection concerned in addition to any earlier assessment.</p></wrapUp></subsection><subsection eId="section-50-6"><num>(6)</num><intro><p>Where—</p></intro><level class="para1" eId="section-50-6-a"><num>(a)</num><content><p>as a result of a person’s failure to make a return in relation to an accounting period the Commissioners have made an assessment under subsection (1) above for that period,</p></content></level><level class="para1" eId="section-50-6-b"><num>(b)</num><content><p>the tax assessed has been paid but no proper return has been made in relation to the period to which the assessment related, and</p></content></level><level class="para1" eId="section-50-6-c"><num>(c)</num><content><p>as a result of a failure to make a return in relation to a later accounting period, being a failure by the person referred to in paragraph (a) above or a person acting in a representative capacity in relation to him, as mentioned in subsection (4) above, the Commissioners find it necessary to make another assessment under subsection (1) above,</p></content></level><wrapUp><p>then, if the Commissioners think fit, having regard to the failure referred to in paragraph (a) above, they may specify in the assessment referred to in paragraph (c) above an amount of tax greater than that which they would otherwise have considered to be appropriate.</p></wrapUp></subsection><subsection eId="section-50-7"><num>(7)</num><content><p>Where an amount has been assessed and notified to any person under subsection (1) or (2) above it shall be deemed to be an amount of tax due from him and may be recovered accordingly unless, or except to the extent that, the assessment has subsequently been withdrawn or reduced.</p></content></subsection><subsection eId="section-50-8"><num>(8)</num><intro><p>For the purposes of this section notification to—</p></intro><level class="para1" eId="section-50-8-a"><num>(a)</num><content><p>a personal representative, trustee in bankruptcy, receiver or liquidator, or</p></content></level><level class="para1" eId="section-50-8-b"><num>(b)</num><content><p>a person otherwise acting in a representative capacity in relation to another person,</p></content></level><wrapUp><p>shall be treated as notification to the person in relation to whom the person mentioned in paragraph (a) above, or the first person mentioned in paragraph (b) above, acts.</p></wrapUp></subsection><subsection eId="section-50-9"><num>(9)</num><content><p>Subsection (5) above has effect subject to paragraph 33 of Schedule 5 to this Act.</p></content></subsection><subsection eId="section-50-10"><num>(10)</num><content><p>In this section “trustee in bankruptcy” means, as respects Scotland, an interim or permanent trustee (within the meaning of the <noteRef href="#m00046" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Bankruptcy (Scotland) Act 1985) or a trustee acting under a trust deed (within the meaning of that Act).</p></content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-III-crossheading-credit"><heading>Credit</heading><section eId="section-51"><num>51</num><heading>Credit: general</heading><subsection eId="section-51-1"><num>(1)</num><intro><p>Regulations may provide that where—</p></intro><level class="para1" eId="section-51-1-a"><num>(a)</num><content><p>a person has paid or is liable to pay tax, and</p></content></level><level class="para1" eId="section-51-1-b"><num>(b)</num><content><p>prescribed conditions are fulfilled,</p></content></level><wrapUp><p>the person shall be entitled to credit of such an amount as is found in accordance with prescribed rules.</p></wrapUp></subsection><subsection eId="section-51-2"><num>(2)</num><intro><p>Regulations may make provision as to the manner in which a person is to benefit from credit, and in particular may make provision—</p></intro><level class="para1" eId="section-51-2-a"><num>(a)</num><content><p>that a person shall be entitled to credit by reference to accounting periods;</p></content></level><level class="para1" eId="section-51-2-b"><num>(b)</num><content><p>that a person shall be entitled to deduct an amount equal to his total credit for an accounting period from the total amount of tax due from him for the period;</p></content></level><level class="para1" eId="section-51-2-c"><num>(c)</num><content><p>that if no tax is due from a person for an accounting period but he is entitled to credit for the period, the amount of the credit shall be paid to him by the Commissioners;</p></content></level><level class="para1" eId="section-51-2-d"><num>(d)</num><content><p>that if the amount of credit to which a person is entitled for an accounting period exceeds the amount of tax due from him for the period, an amount equal to the excess shall be paid to him by the Commissioners;</p></content></level><level class="para1" eId="section-51-2-e"><num>(e)</num><content><p>for the whole or part of any credit to be held over to be credited for a subsequent accounting period;</p></content></level><level class="para1" eId="section-51-2-f"><num>(f)</num><content><p>as to the manner in which a person who has ceased to be registrable is to benefit from credit.</p></content></level></subsection><subsection eId="section-51-3"><num>(3)</num><content><p>Regulations under subsection (2)(c) or (d) above may provide that where at the end of an accounting period an amount is due to a person who has failed to submit returns for an earlier period as required by this Part, the Commissioners may withhold payment of the amount until he has complied with that requirement.</p></content></subsection><subsection eId="section-51-4"><num>(4)</num><content><p>Regulations under subsection (2)(e) above may provide for credit to be held over either on the person’s application or in accordance with directions given by the Commissioners from time to time; and the regulations may allow directions to be given generally or with regard to particular cases.</p></content></subsection><subsection eId="section-51-5"><num>(5)</num><intro><p>Regulations may provide that—</p></intro><level class="para1" eId="section-51-5-a"><num>(a)</num><content><p>no benefit shall be conferred in respect of credit except on a claim made in such manner and at such time as may be determined by or under regulations;</p></content></level><level class="para1" eId="section-51-5-b"><num>(b)</num><content><p>payment in respect of credit shall be made subject to such conditions (if any) as the Commissioners think fit to impose, including conditions as to repayment in specified circumstances;</p></content></level><level class="para1" eId="section-51-5-c"><num>(c)</num><content><p>deduction in respect of credit shall be made subject to such conditions (if any) as the Commissioners think fit to impose, including conditions as to the payment to the Commissioners, in specified circumstances, of an amount representing the whole or part of the amount deducted.</p></content></level></subsection><subsection eId="section-51-6"><num>(6)</num><content><p>Regulations may require a claim by a person to be made in a return required by provision made under section 49 above.</p></content></subsection><subsection eId="section-51-7"><num>(7)</num><content><p>Nothing in section 52 or 53 below shall be taken to derogate from the power to make regulations under this section (whether with regard to bad debts, the environment or any other matter).</p></content></subsection></section><section eId="section-52"><num>52</num><heading>Bad debts</heading><subsection eId="section-52-1"><num>(1)</num><intro><p>Regulations may be made under section 51 above with a view to securing that a person is entitled to credit if—</p></intro><level class="para1" eId="section-52-1-a"><num>(a)</num><content><p>he carries out a taxable activity as a result of which he becomes entitled to a debt which turns out to be bad (in whole or in part), and</p></content></level><level class="para1" eId="section-52-1-b"><num>(b)</num><content><p>such other conditions as may be prescribed are fulfilled.</p></content></level></subsection><subsection eId="section-52-2"><num>(2)</num><content><p>The regulations may include provision under section 51(5)(b) or (c) above requiring repayment or payment if it turns out that it was not justified to regard a debt as bad (or to regard it as bad to the extent that it was so regarded).</p></content></subsection><subsection eId="section-52-3"><num>(3)</num><content><p>The regulations may include provision for determining whether, and to what extent, a debt is to be taken to be bad.</p></content></subsection></section><section eId="section-53"><num>53</num><heading>Bodies concerned with the environment</heading><subsection eId="section-53-1"><num>(1)</num><intro><p>Regulations may be made under section 51 above with a view to securing that a person is entitled to credit if—</p></intro><level class="para1" eId="section-53-1-a"><num>(a)</num><content><p>he pays a sum to a body whose objects are or include the protection of the environment, and</p></content></level><level class="para1" eId="section-53-1-b"><num>(b)</num><content><p>such other conditions as may be prescribed are fulfilled.</p></content></level></subsection><subsection eId="section-53-2"><num>(2)</num><intro><p>The regulations may in particular prescribe conditions—</p></intro><level class="para1" eId="section-53-2-a"><num>(a)</num><content><p>requiring bodies to which sums are paid (environmental bodies) to be approved by another body (the regulatory body);</p></content></level><level class="para1" eId="section-53-2-b"><num>(b)</num><content><p>requiring the regulatory body to be approved by the Commissioners;</p></content></level><level class="para1" eId="section-53-2-c"><num>(c)</num><content><p>requiring sums to be paid with the intention that they be expended on such matters connected with the protection of the environment as may be prescribed.</p></content></level></subsection><subsection eId="section-53-3"><num>(3)</num><intro><p>The regulations may include provision under section 51(5)(b) or (c) above requiring repayment or payment if—</p></intro><level class="para1" eId="section-53-3-a"><num>(a)</num><content><p>a sum is not in fact expended on matters prescribed under subsection (2)(c) above, or</p></content></level><level class="para1" eId="section-53-3-b"><num>(b)</num><content><p>a prescribed condition turns out not to have been fulfilled.</p></content></level></subsection><subsection eId="section-53-4"><num>(4)</num><intro><p>The regulations may include—</p></intro><level class="para1" eId="section-53-4-a"><num>(a)</num><content><p>provision for determining the amount of credit (including provision for limiting it);</p></content></level><level class="para1" eId="section-53-4-b"><num>(b)</num><content><p>provision that matters connected with the protection of the environment include such matters as overheads (including administration) of environmental bodies and the regulatory body;</p></content></level><level class="para1" eId="section-53-4-c"><num>(c)</num><content><p>provision as to the matters by reference to which an environmental body or the regulatory body can be, and remain, approved (including matters relating to the functions and activities of any such body);</p></content></level><level class="para1" eId="section-53-4-d"><num>(d)</num><content><p>provision allowing approval of an environmental body or the regulatory body to be withdrawn (whether prospectively or retrospectively);</p></content></level><level class="para1" eId="section-53-4-e"><num>(e)</num><content><p>provision that, if approval of the regulatory body is withdrawn, another body may be approved in its place or its functions may be performed by the Commissioners;</p></content></level><level class="para1" eId="section-53-4-f"><num>(f)</num><content><p>provision allowing the Commissioners to disclose to the regulatory body information which relates to the tax affairs of persons carrying out taxable activities and which is relevant to the credit scheme established by the regulations.</p></content></level></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-III-crossheading-review-and-appeal"><heading>Review and appeal</heading><section eId="section-54"><num>54</num><heading>Review of Commissioners' decisions</heading><subsection eId="section-54-1"><num>(1)</num><intro><p>This section applies to the following decisions of the Commissioners—</p></intro><level class="para1" eId="section-54-1-a"><num>(a)</num><content><p>a decision as to the registration or cancellation of registration of any person under this Part;</p></content></level><level class="para1" eId="section-54-1-b"><num>(b)</num><content><p>a decision as to whether tax is chargeable in respect of a disposal or as to how much tax is chargeable;</p></content></level><level class="para1" eId="section-54-1-c"><num>(c)</num><content><p>a decision as to whether a person is entitled to credit by virtue of regulations under section 51 above or as to how much credit a person is entitled to or as to the manner in which he is to benefit from credit;</p></content></level><level class="para1" eId="section-54-1-d"><num>(d)</num><content><p>a decision as to an assessment falling within subsection (2) below or as to the amount of such an assessment;</p></content></level><level class="para1" eId="section-54-1-e"><num>(e)</num><content><p>a decision to refuse a request under section 58(3) below;</p></content></level><level class="para1" eId="section-54-1-f"><num>(f)</num><content><p>a decision to refuse an application under section 59 below;</p></content></level><level class="para1" eId="section-54-1-g"><num>(g)</num><content><p>a decision as to whether conditions set out in a specification under the authority of provision made under section 68(4)(b) below are met in relation to a disposal;</p></content></level><level class="para1" eId="section-54-1-h"><num>(h)</num><content><p>a decision to give a direction under any provision contained in regulations by virtue of section 68(5) below;</p></content></level><level class="para1" eId="section-54-1-i"><num>(i)</num><content><p>a decision as to a claim for the repayment of an amount under paragraph 14 of Schedule 5 to this Act;</p></content></level><level class="para1" eId="section-54-1-j"><num>(j)</num><content><p>a decision as to liability to a penalty under Part V of that Schedule or as to the amount of such a penalty;</p></content></level><level class="para1" eId="section-54-1-k"><num>(k)</num><content><p>a decision under paragraph 19 of that Schedule (as mentioned in paragraph 19(5));</p></content></level><level class="para1" eId="section-54-1-l"><num>(l)</num><content><p>a decision as to any liability to pay interest under paragraph 26 or 27 of that Schedule or as to the amount of the interest payable;</p></content></level><level class="para1" eId="section-54-1-m"><num>(m)</num><content><p>a decision as to any liability to pay interest under paragraph 29 of that Schedule or as to the amount of the interest payable;</p></content></level><level class="para1" eId="section-54-1-n"><num>(n)</num><content><p>a decision to require any security under paragraph 31 of that Schedule or as to its amount;</p></content></level><level class="para1" eId="section-54-1-o"><num>(o)</num><content><p>a decision as to the amount of any penalty or interest specified in an assessment under paragraph 32 of that Schedule.</p></content></level></subsection><subsection eId="section-54-2"><num>(2)</num><content><p>An assessment falls within this subsection if it is an assessment under section 50 above in respect of an accounting period in relation to which a return required to be made by virtue of regulations under section 49 above has been made.</p></content></subsection><subsection eId="section-54-3"><num>(3)</num><content><p>Any person who is or will be affected by any decision to which this section applies may by notice in writing to the Commissioners require them to review the decision.</p></content></subsection><subsection eId="section-54-4"><num>(4)</num><content><p>The Commissioners shall not be required under this section to review any decision unless the notice requiring the review is given before the end of the period of 45 days beginning with the day on which written notification of the decision, or of the assessment containing the decision, was first given to the person requiring the review.</p></content></subsection><subsection eId="section-54-5"><num>(5)</num><intro><p>For the purposes of subsection (4) above it shall be the duty of the Commissioners to give written notification of any decision to which this section applies to any person who—</p></intro><level class="para1" eId="section-54-5-a"><num>(a)</num><content><p>requests such a notification,</p></content></level><level class="para1" eId="section-54-5-b"><num>(b)</num><content><p>has not previously been given written notification of that decision, and</p></content></level><level class="para1" eId="section-54-5-c"><num>(c)</num><content><p>if given such a notification, will be entitled to require a review of the decision under this section.</p></content></level></subsection><subsection eId="section-54-6"><num>(6)</num><intro><p>A person shall be entitled to give a notice under this section requiring a decision to be reviewed for a second or subsequent time only if—</p></intro><level class="para1" eId="section-54-6-a"><num>(a)</num><content><p>the grounds on which he requires the further review are that the Commissioners did not, on any previous review, have the opportunity to consider certain facts or other matters, and</p></content></level><level class="para1" eId="section-54-6-b"><num>(b)</num><content><p>he does not, on the further review, require the Commissioners to consider any facts or matters which were considered on a previous review except in so far as they are relevant to any issue not previously considered.</p></content></level></subsection><subsection eId="section-54-7"><num>(7)</num><content><p>Where the Commissioners are required in accordance with this section to review any decision it shall be their duty to do so; and on the review they may withdraw, vary or confirm the decision.</p></content></subsection><subsection eId="section-54-8"><num>(8)</num><intro><p>Where—</p></intro><level class="para1" eId="section-54-8-a"><num>(a)</num><content><p>it is the duty under this section of the Commissioners to review any decision, and</p></content></level><level class="para1" eId="section-54-8-b"><num>(b)</num><content><p>they do not, within the period of 45 days beginning with the day on which the review was required, give notice to the person requiring it of their determination on the review,</p></content></level><wrapUp><p>they shall be deemed for the purposes of this Part to have confirmed the decision.</p></wrapUp></subsection></section><section eId="section-55"><num>55</num><heading>Appeals: general</heading><subsection eId="section-55-1"><num>(1)</num><intro><p>Subject to the following provisions of this section, an appeal shall lie to an appeal tribunal with respect to any of the following decisions—</p></intro><level class="para1" eId="section-55-1-a"><num>(a)</num><content><p>any decision by the Commissioners on a review under section 54 above (including a deemed confirmation under subsection (8) of that section);</p></content></level><level class="para1" eId="section-55-1-b"><num>(b)</num><content><p>any decision by the Commissioners on such review of a decision referred to in section 54(1) above as the Commissioners have agreed to undertake in consequence of a request made after the end of the period mentioned in section 54(4) above.</p></content></level></subsection><subsection eId="section-55-2"><num>(2)</num><intro><p>Where an appeal is made under this section by a person who is required to make returns by virtue of regulations under section 49 above, the appeal shall not be entertained unless the appellant—</p></intro><level class="para1" eId="section-55-2-a"><num>(a)</num><content><p>has made all the returns which he is required to make by virtue of those regulations, and</p></content></level><level class="para1" eId="section-55-2-b"><num>(b)</num><content><p>has paid the amounts shown in those returns as payable by him.</p></content></level></subsection><subsection eId="section-55-3"><num>(3)</num><intro><p>Where an appeal is made under this section with respect to a decision falling within section 54(1)(b) or (d) above the appeal shall not be entertained unless—</p></intro><level class="para1" eId="section-55-3-a"><num>(a)</num><content><p>the amount which the Commissioners have determined to be payable as tax has been paid or deposited with them, or</p></content></level><level class="para1" eId="section-55-3-b"><num>(b)</num><content><p>on being satisfied that the appellant would otherwise suffer hardship the Commissioners agree or the tribunal decides that it should be entertained notwithstanding that that amount has not been so paid or deposited.</p></content></level></subsection><subsection eId="section-55-4"><num>(4)</num><content><p>On an appeal under this section against an assessment to a penalty under paragraph 18 of Schedule 5 to this Act, the burden of proof as to the matters specified in paragraphs (a) and (b) of sub-paragraph (1) of paragraph 18 shall lie upon the Commissioners.</p></content></subsection></section><section eId="section-56"><num>56</num><heading>Appeals: other provisions</heading><subsection eId="section-56-1"><num>(1)</num><content><p>Subsection (2) below applies where the Commissioners make a decision falling within section 54(1)(d) above and on a review of it there is a further decision with respect to which an appeal is made under section 55 above; and the reference here to a further decision includes a reference to a deemed confirmation under section 54(8) above.</p></content></subsection><subsection eId="section-56-2"><num>(2)</num><intro><p>Where on the appeal—</p></intro><level class="para1" eId="section-56-2-a"><num>(a)</num><content><p>it is found that the amount specified in the assessment is less than it ought to have been, and</p></content></level><level class="para1" eId="section-56-2-b"><num>(b)</num><content><p>the tribunal gives a direction specifying the correct amount,</p></content></level><wrapUp><p>the assessment shall have effect as an assessment of the amount specified in the direction and that amount shall be deemed to have been notified to the appellant.</p></wrapUp></subsection><subsection eId="section-56-3"><num>(3)</num><content><p>Where on an appeal under section 55 above it is found that the whole or part of any amount paid or deposited in pursuance of section 55(3) above is not due, so much of that amount as is found not to be due shall be repaid with interest at such rate as the tribunal may determine.</p></content></subsection><subsection eId="section-56-4"><num>(4)</num><content><p>Where on an appeal under section 55 above it is found that the whole or part of any amount due to the appellant by virtue of regulations under section 51(2)(c) or (d) or (f) above has not been paid, so much of that amount as is found not to have been paid shall be paid with interest at such rate as the tribunal may determine.</p></content></subsection><subsection eId="section-56-5"><num>(5)</num><content><p>Where an appeal under section 55 above has been entertained notwithstanding that an amount determined by the Commissioners to be payable as tax has not been paid or deposited and it is found on the appeal that that amount is due the tribunal may, if it thinks fit, direct that that amount shall be paid with interest at such rate as may be specified in the direction.</p></content></subsection><subsection eId="section-56-6"><num>(6)</num><content><p>Without prejudice to paragraph 25 of Schedule 5 to this Act, nothing in section 55 above shall be taken to confer on a tribunal any power to vary an amount assessed by way of penalty except in so far as it is necessary to reduce it to the amount which is appropriate under paragraphs 18 to 24 of that Schedule.</p></content></subsection><subsection eId="section-56-7"><num>(7)</num><content><p>Without prejudice to paragraph 28 of Schedule 5 to this Act, nothing in section 55 above shall be taken to confer on a tribunal any power to vary an amount assessed by way of interest except in so far as it is necessary to reduce it to the amount which is appropriate under paragraph 26 or 27 of that Schedule.</p></content></subsection><subsection eId="section-56-8"><num>(8)</num><intro><p>Sections 85 and 87 of the <noteRef href="#m00047" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Value Added Tax Act 1994 (settling of appeals by agreement and enforcement of certain decisions of tribunal) shall have effect as if—</p></intro><level class="para1" eId="section-56-8-a"><num>(a)</num><content><p>the references to section 83 of that Act included references to section 55 above, and</p></content></level><level class="para1" eId="section-56-8-b"><num>(b)</num><content><p>the references to value added tax included references to landfill tax.</p></content></level></subsection></section><section eId="section-57"><num>57</num><heading>Review and appeal: commencement</heading><intro><p>Sections 54 to 56 above shall come into force on—</p></intro><level class="para1" eId="section-57-a"><num>(a)</num><content><p>1st October 1996, or</p></content></level><level class="para1" eId="section-57-b"><num>(b)</num><content><p>such earlier day as may be appointed by order.</p></content></level></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-III-crossheading-miscellaneous"><heading>Miscellaneous</heading><section eId="section-58"><num>58</num><heading>Partnership, bankruptcy, transfer of business, etc</heading><subsection eId="section-58-1"><num>(1)</num><content><p>As regards any case where a business is carried on in partnership or by another unincorporated body, regulations may make provision for determining by what persons anything required by this Part to be done by a person is to be done.</p></content></subsection><subsection eId="section-58-2"><num>(2)</num><content><p>The registration under this Part of an unincorporated body other than a partnership may be in the name of the body concerned; and in determining whether taxable activities are carried out by such a body no account shall be taken of any change in its members.</p></content></subsection><subsection eId="section-58-3"><num>(3)</num><content><p>The registration under this Part of a body corporate carrying on a business in several divisions may, if the body corporate so requests and the Commissioners see fit, be in the names of those divisions.</p></content></subsection><subsection eId="section-58-4"><num>(4)</num><intro><p>As regards any case where a person carries on a business of a person who has died or become bankrupt or incapacitated or whose estate has been sequestrated, or of a person which is in liquidation or receivership or in relation to which an administration order is in force, regulations may—</p></intro><level class="para1" eId="section-58-4-a"><num>(a)</num><content><p>require the first-mentioned person to inform the Commissioners of the fact that he is carrying on the business and of the event that has led to his carrying it on;</p></content></level><level class="para1" eId="section-58-4-b"><num>(b)</num><content><p>make provision allowing the person to be treated for a limited time as if he were the other person;</p></content></level><level class="para1" eId="section-58-4-c"><num>(c)</num><content><p>make provision for securing continuity in the application of this Part where a person is so treated.</p></content></level></subsection><subsection eId="section-58-5"><num>(5)</num><content><p>Regulations may make provision for securing continuity in the application of this Part in cases where a business carried on by a person is transferred to another person as a going concern.</p></content></subsection><subsection eId="section-58-6"><num>(6)</num><intro><p>Regulations under subsection (5) above may in particular—</p></intro><level class="para1" eId="section-58-6-a"><num>(a)</num><content><p>require the transferor to inform the Commissioners of the transfer;</p></content></level><level class="para1" eId="section-58-6-b"><num>(b)</num><content><p>provide for liabilities and duties under this Part of the transferor to become, to such extent as may be provided by the regulations, liabilities and duties of the transferee;</p></content></level><level class="para1" eId="section-58-6-c"><num>(c)</num><content><p>provide for any right of either of them to repayment or credit in respect of tax to be satisfied by making a repayment or allowing a credit to the other;</p></content></level><wrapUp><p>but the regulations may provide that no such provision as is mentioned in paragraph (b) or (c) of this subsection shall have effect in relation to any transferor and transferee unless an application in that behalf has been made by them under the regulations.</p></wrapUp></subsection></section><section eId="section-59"><num>59</num><heading>Groups of companies</heading><subsection eId="section-59-1"><num>(1)</num><intro><p>Where under the following provisions of this section any bodies corporate are treated as members of a group, for the purposes of this Part—</p></intro><level class="para1" eId="section-59-1-a"><num>(a)</num><content><p>any liability of a member of the group to pay tax shall be taken to be a liability of the representative member;</p></content></level><level class="para1" eId="section-59-1-b"><num>(b)</num><content><p>the representative member shall be taken to carry out any taxable activities which a member of the group would carry out (apart from this section) by virtue of section 69 below;</p></content></level><level class="para1" eId="section-59-1-c"><num>(c)</num><content><p>all members of the group shall be jointly and severally liable for any tax due from the representative member.</p></content></level></subsection><subsection eId="section-59-2"><num>(2)</num><intro><p>Two or more bodies corporate are eligible to be treated as members of a group if the condition mentioned in subsection (3) below is fulfilled and—</p></intro><level class="para1" eId="section-59-2-a"><num>(a)</num><content><p>one of them controls each of the others,</p></content></level><level class="para1" eId="section-59-2-b"><num>(b)</num><content><p>one person (whether a body corporate or an individual) controls all of them, or</p></content></level><level class="para1" eId="section-59-2-c"><num>(c)</num><content><p>two or more individuals carrying on a business in partnership control all of them.</p></content></level></subsection><subsection eId="section-59-3"><num>(3)</num><content><p>The condition is that the prospective representative member has an established place of business in the United Kingdom.</p></content></subsection><subsection eId="section-59-4"><num>(4)</num><intro><p>Where an application to that effect is made to the Commissioners with respect to two or more bodies corporate eligible to be treated as members of a group, then—</p></intro><level class="para1" eId="section-59-4-a"><num>(a)</num><content><p>from the beginning of an accounting period they shall be so treated, and</p></content></level><level class="para1" eId="section-59-4-b"><num>(b)</num><content><p>one of them shall be the representative member,</p></content></level><wrapUp><p>unless the Commissioners refuse the application; and the Commissioners shall not refuse the application unless it appears to them necessary to do so for the protection of the revenue.</p></wrapUp></subsection><subsection eId="section-59-5"><num>(5)</num><intro><p>Where any bodies corporate are treated as members of a group and an application to that effect is made to the Commissioners, then, from the beginning of an accounting period—</p></intro><level class="para1" eId="section-59-5-a"><num>(a)</num><content><p>a further body eligible to be so treated shall be included among the bodies so treated,</p></content></level><level class="para1" eId="section-59-5-b"><num>(b)</num><content><p>a body corporate shall be excluded from the bodies so treated,</p></content></level><level class="para1" eId="section-59-5-c"><num>(c)</num><content><p>another member of the group shall be substituted as the representative member, or</p></content></level><level class="para1" eId="section-59-5-d"><num>(d)</num><content><p>the bodies corporate shall no longer be treated as members of a group,</p></content></level><wrapUp><p>unless the application is to the effect mentioned in paragraph (a) or (c) above and the Commissioners refuse the application.</p></wrapUp></subsection><subsection eId="section-59-6"><num>(6)</num><content><p>The Commissioners may refuse an application under subsection (5)(a) or (c) above only if it appears to them necessary to do so for the protection of the revenue.</p></content></subsection><subsection eId="section-59-7"><num>(7)</num><content><p>Where a body corporate is treated as a member of a group as being controlled by any person and it appears to the Commissioners that it has ceased to be so controlled, they shall, by notice given to that person, terminate that treatment from such date as may be specified in the notice.</p></content></subsection><subsection eId="section-59-8"><num>(8)</num><content><p>An application under this section with respect to any bodies corporate must be made by one of those bodies or by the person controlling them and must be made not less than 90 days before the date from which it is to take effect, or at such later time as the Commissioners may allow.</p></content></subsection><subsection eId="section-59-9"><num>(9)</num><content><p>For the purposes of this section a body corporate shall be taken to control another body corporate if it is empowered by statute to control that body’s activities or if it is that body’s holding company within the meaning of section 736 of the <noteRef href="#m00048" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Companies Act 1985; and an individual or individuals shall be taken to control a body corporate if he or they, were he or they a company, would be that body’s holding company within the meaning of that section.</p></content></subsection></section><section eId="section-60"><num>60</num><heading>Information, powers, penalties, etc</heading><content><p>Schedule 5 to this Act (which contains provisions relating to information, powers, penalties and other matters) shall have effect.</p></content></section><section eId="section-61"><num>61</num><heading>Taxable disposals: special provisions</heading><subsection eId="section-61-1"><num>(1)</num><intro><p>Where—</p></intro><level class="para1" eId="section-61-1-a"><num>(a)</num><content><p>a taxable disposal is in fact made on a particular day,</p></content></level><level class="para1" eId="section-61-1-b"><num>(b)</num><content><p>within the period of 14 days beginning with that day the person liable to pay tax in respect of the disposal issues a landfill invoice in respect of the disposal, and</p></content></level><level class="para1" eId="section-61-1-c"><num>(c)</num><content><p>he has not notified the Commissioners in writing that he elects not to avail himself of this subsection,</p></content></level><wrapUp><p>for the purposes of this Part the disposal shall be treated as made at the time the invoice is issued.</p></wrapUp></subsection><subsection eId="section-61-2"><num>(2)</num><content><p>The reference in subsection (1) above to a landfill invoice is to a document containing such particulars as regulations may prescribe for the purposes of that subsection.</p></content></subsection><subsection eId="section-61-3"><num>(3)</num><intro><p>The Commissioners may at the request of a person direct that subsection (1) above shall apply—</p></intro><level class="para1" eId="section-61-3-a"><num>(a)</num><content><p>in relation to disposals in respect of which he is liable to pay tax, or</p></content></level><level class="para1" eId="section-61-3-b"><num>(b)</num><content><p>in relation to such of them as may be specified in the direction,</p></content></level><wrapUp><p>as if for the period of 14 days there were substituted such longer period as may be specified in the direction.</p></wrapUp></subsection></section><section eId="section-62"><num>62</num><heading>Taxable disposals: regulations</heading><subsection eId="section-62-1"><num>(1)</num><content><p>For the purposes of this Part, regulations may make provision under this section in relation to a disposal which is a taxable disposal (or would be apart from the regulations).</p></content></subsection><subsection eId="section-62-2"><num>(2)</num><intro><p>The regulations may provide that if particular conditions are fulfilled—</p></intro><level class="para1" eId="section-62-2-a"><num>(a)</num><content><p>the disposal shall be treated as not being a taxable disposal, or</p></content></level><level class="para1" eId="section-62-2-b"><num>(b)</num><content><p>the disposal shall, to the extent found in accordance with prescribed rules, be treated as not being a taxable disposal.</p></content></level></subsection><subsection eId="section-62-3"><num>(3)</num><intro><p>The regulations may provide that if particular conditions are fulfilled—</p></intro><level class="para1" eId="section-62-3-a"><num>(a)</num><content><p>the disposal shall be treated as made at a time which is found in accordance with prescribed rules and which falls after the time when it would be regarded as made apart from the regulations, or</p></content></level><level class="para1" eId="section-62-3-b"><num>(b)</num><content><p>the disposal shall, to the extent found in accordance with prescribed rules, be treated as made at a time which is found in accordance with prescribed rules and which falls after the time when it would be regarded as made apart from the regulations.</p></content></level></subsection><subsection eId="section-62-4"><num>(4)</num><content><p>In finding the time when the disposal would be regarded as made apart from the regulations, section 61(1) above and any direction under section 61(3) above shall be taken into account.</p></content></subsection><subsection eId="section-62-5"><num>(5)</num><intro><p>The regulations may be framed by reference to—</p></intro><level class="para1" eId="section-62-5-a"><num>(a)</num><content><p>conditions specified in the regulations or by the Commissioners or by an authorised person, or</p></content></level><level class="para1" eId="section-62-5-b"><num>(b)</num><content><p>any combination of such conditions;</p></content></level><wrapUp><p>and the regulations may specify conditions, or allow conditions to be specified, generally or with regard to particular cases.</p></wrapUp></subsection><subsection eId="section-62-6"><num>(6)</num><content><p>The regulations may make provision under subsections (2)(b) and (3)(b) above in relation to the same disposal.</p></content></subsection><subsection eId="section-62-7"><num>(7)</num><intro><p>The regulations may only provide that a disposal is to be treated as not being a taxable disposal if or to the extent that—</p></intro><level class="para1" eId="section-62-7-a"><num>(a)</num><content><p>the disposal is a temporary one pending the incineration or recycling of the material concerned, or pending the removal of the material for use elsewhere, or pending the sorting of the material with a view to its removal elsewhere or its eventual disposal, and</p></content></level><level class="para1" eId="section-62-7-b"><num>(b)</num><content><p>the temporary disposal is made in an area designated for the purpose by an authorised person.</p></content></level></subsection></section><section eId="section-63"><num>63</num><heading>Qualifying material: special provisions</heading><subsection eId="section-63-1"><num>(1)</num><content><p>This section applies for the purposes of section 42 above.</p></content></subsection><subsection eId="section-63-2"><num>(2)</num><content><p>The Commissioners may direct that where material is disposed of it must be treated as qualifying material if it would in fact be such material but for a small quantity of non-qualifying material; and whether a quantity of non-qualifying material is small must be determined in accordance with the terms of the direction.</p></content></subsection><subsection eId="section-63-3"><num>(3)</num><intro><p>The Commissioners may at the request of a person direct that where there is a disposal in respect of which he is liable to pay tax the material disposed of must be treated as qualifying material if it would in fact be such material but for a small quantity of non-qualifying material, and—</p></intro><level class="para1" eId="section-63-3-a"><num>(a)</num><content><p>a direction may apply to all disposals in respect of which a person is liable to pay tax or to such of them as are identified in the direction;</p></content></level><level class="para1" eId="section-63-3-b"><num>(b)</num><content><p>whether a quantity of non-qualifying material is small must be determined in accordance with the terms of the direction.</p></content></level></subsection><subsection eId="section-63-4"><num>(4)</num><content><p>If a direction under subsection (3) above applies to a disposal any direction under subsection (2) above shall not apply to it.</p></content></subsection><subsection eId="section-63-5"><num>(5)</num><content><p>An order may provide that material must not be treated as qualifying material unless prescribed conditions are met.</p></content></subsection><subsection eId="section-63-6"><num>(6)</num><content><p>A condition may relate to any matter the Treasury think fit (such as the production of a document which includes a statement of the nature of the material).</p></content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-III-crossheading-interpretation"><heading>Interpretation</heading><section eId="section-64"><num>64</num><heading>Disposal of material as waste</heading><subsection eId="section-64-1"><num>(1)</num><content><p>A disposal of material is a disposal of it as waste if the person making the disposal does so with the intention of discarding the material.</p></content></subsection><subsection eId="section-64-2"><num>(2)</num><content><p>The fact that the person making the disposal or any other person could benefit from or make use of the material is irrelevant.</p></content></subsection><subsection eId="section-64-3"><num>(3)</num><content><p>Where a person makes a disposal on behalf of another person, for the purposes of subsections (1) and (2) above the person on whose behalf the disposal is made shall be treated as making the disposal.</p></content></subsection><subsection eId="section-64-4"><num>(4)</num><intro><p>The reference in subsection (3) above to a disposal on behalf of another person includes references to a disposal—</p></intro><level class="para1" eId="section-64-4-a"><num>(a)</num><content><p>at the request of another person;</p></content></level><level class="para1" eId="section-64-4-b"><num>(b)</num><content><p>in pursuance of a contract with another person.</p></content></level></subsection></section><section eId="section-65"><num>65</num><heading>Disposal by way of landfill</heading><subsection eId="section-65-1"><num>(1)</num><intro><p>There is a disposal of material by way of landfill if—</p></intro><level class="para1" eId="section-65-1-a"><num>(a)</num><content><p>it is deposited on the surface of land or on a structure set into the surface, or</p></content></level><level class="para1" eId="section-65-1-b"><num>(b)</num><content><p>it is deposited under the surface of land.</p></content></level></subsection><subsection eId="section-65-2"><num>(2)</num><content><p>Subsection (1) above applies whether or not the material is placed in a container before it is deposited.</p></content></subsection><subsection eId="section-65-3"><num>(3)</num><intro><p>Subsection (1)(b) above applies whether the material—</p></intro><level class="para1" eId="section-65-3-a"><num>(a)</num><content><p>is covered with earth after it is deposited, or</p></content></level><level class="para1" eId="section-65-3-b"><num>(b)</num><content><p>is deposited in a cavity (such as a cavern or mine).</p></content></level></subsection><subsection eId="section-65-4"><num>(4)</num><content><p>If material is deposited on the surface of land (or on a structure set into the surface) with a view to it being covered with earth the disposal must be treated as made when the material is deposited and not when it is covered.</p></content></subsection><subsection eId="section-65-5"><num>(5)</num><content><p>An order may provide that the meaning of the disposal of material by way of landfill (as it applies for the time being) shall be varied.</p></content></subsection><subsection eId="section-65-6"><num>(6)</num><content><p>An order under subsection (5) above may make provision in such way as the Treasury think fit, whether by amending any of subsections (1) to (4) above or otherwise.</p></content></subsection><subsection eId="section-65-7"><num>(7)</num><content><p>In this section “land” includes land covered by water where the land is above the low water mark of ordinary spring tides.</p></content></subsection><subsection eId="section-65-8"><num>(8)</num><content><p>In this section “earth” includes similar matter (such as sand or rocks).</p></content></subsection></section><section eId="section-66"><num>66</num><heading>Landfill sites</heading><intro><p>Land is a landfill site at a given time if at that time—</p></intro><level class="para1" eId="section-66-a"><num>(a)</num><content><p>a licence which is a site licence for the purposes of Part II of the <noteRef href="#m00049" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Environmental Protection Act 1990 (waste on land) is in force in relation to the land and authorises disposals in or on the land,</p></content></level><level class="para1" eId="section-66-b"><num>(b)</num><content><p>a resolution under section 54 of that Act (land occupied by waste disposal authorities in Scotland) is in force in relation to the land and authorises deposits or disposals in or on the land,</p></content></level><level class="para1" eId="section-66-c"><num>(c)</num><content><p>a disposal licence issued under Part II of the <noteRef href="#m00050" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Pollution Control and Local Government (Northern Ireland) Order 1978 (waste on land) is in force in relation to the land and authorises deposits on the land,</p></content></level><level class="para1" eId="section-66-d"><num>(d)</num><content><p>a resolution passed under Article 13 of that Order (land occupied by district councils in Northern Ireland) is in force in relation to the land and relates to deposits on the land, or</p></content></level><level class="para1" eId="section-66-e"><num>(e)</num><content><p>a licence under any provision for the time being having effect in Northern Ireland and corresponding to section 35 of the Environmental Protection Act 1990 (waste management licences) is in force in relation to the land and authorises disposals in or on the land.</p></content></level></section><section eId="section-67"><num>67</num><heading>Operators of landfill sites</heading><intro><p>The operator of a landfill site at a given time is—</p></intro><level class="para1" eId="section-67-a"><num>(a)</num><content><p>the person who is at the time concerned the holder of the licence, where section 66(a) above applies;</p></content></level><level class="para1" eId="section-67-b"><num>(b)</num><content><p>the waste disposal authority which at the time concerned occupies the landfill site, where section 66(b) above applies;</p></content></level><level class="para1" eId="section-67-c"><num>(c)</num><content><p>the person who is at the time concerned the holder of the licence, where section 66(c) above applies;</p></content></level><level class="para1" eId="section-67-d"><num>(d)</num><content><p>the district council which passed the resolution, where section 66(d) above applies;</p></content></level><level class="para1" eId="section-67-e"><num>(e)</num><content><p>the person who is at the time concerned the holder of the licence, where section 66(e) above applies.</p></content></level></section><section eId="section-68"><num>68</num><heading>Weight of material disposed of</heading><subsection eId="section-68-1"><num>(1)</num><content><p>The weight of the material disposed of on a taxable disposal shall be determined in accordance with regulations.</p></content></subsection><subsection eId="section-68-2"><num>(2)</num><intro><p>The regulations may—</p></intro><level class="para1" eId="section-68-2-a"><num>(a)</num><content><p>prescribe rules for determining the weight;</p></content></level><level class="para1" eId="section-68-2-b"><num>(b)</num><content><p>authorise rules for determining the weight to be specified by the Commissioners in a prescribed manner;</p></content></level><level class="para1" eId="section-68-2-c"><num>(c)</num><content><p>authorise rules for determining the weight to be agreed by the person liable to pay the tax and an authorised person.</p></content></level></subsection><subsection eId="section-68-3"><num>(3)</num><intro><p>The regulations may in particular prescribe, or authorise the specification or agreement of, rules about—</p></intro><level class="para1" eId="section-68-3-a"><num>(a)</num><content><p>the method by which the weight is to be determined;</p></content></level><level class="para1" eId="section-68-3-b"><num>(b)</num><content><p>the time by reference to which the weight is to be determined;</p></content></level><level class="para1" eId="section-68-3-c"><num>(c)</num><content><p>the discounting of constituents (such as water).</p></content></level></subsection><subsection eId="section-68-4"><num>(4)</num><intro><p>The regulations may include provision that a specification authorised under subsection (2)(b) above may provide—</p></intro><level class="para1" eId="section-68-4-a"><num>(a)</num><content><p>that it is to have effect only in relation to disposals of such descriptions as may be set out in the specification;</p></content></level><level class="para1" eId="section-68-4-b"><num>(b)</num><content><p>that it is not to have effect in relation to particular disposals unless the Commissioners are satisfied that such conditions as may be set out in the specification are met in relation to the disposals;</p></content></level><wrapUp><p>and the conditions may be framed by reference to such factors as the Commissioners think fit (such as the consent of an authorised person to the specification having effect in relation to disposals).</p></wrapUp></subsection><subsection eId="section-68-5"><num>(5)</num><intro><p>The regulations may include provision that—</p></intro><level class="para1" eId="section-68-5-a"><num>(a)</num><content><p>where rules are agreed as mentioned in subsection (2)(c) above, and</p></content></level><level class="para1" eId="section-68-5-b"><num>(b)</num><content><p>the Commissioners believe that they should no longer be applied because they do not give an accurate indication of the weight or they are not being fully observed or for some other reason,</p></content></level><wrapUp><p>the Commissioners may direct that the agreed rules shall no longer have effect.</p></wrapUp></subsection><subsection eId="section-68-6"><num>(6)</num><intro><p>The regulations shall be so framed that where in relation to a given disposal—</p></intro><level class="para1" eId="section-68-6-a"><num>(a)</num><content><p>no specification of the Commissioners has effect, and</p></content></level><level class="para1" eId="section-68-6-b"><num>(b)</num><content><p>no agreed rules have effect,</p></content></level><wrapUp><p>the weight shall be determined in accordance with rules prescribed in the regulations.</p></wrapUp></subsection></section><section eId="section-69"><num>69</num><heading>Taxable activities</heading><subsection eId="section-69-1"><num>(1)</num><intro><p>A person carries out a taxable activity if—</p></intro><level class="para1" eId="section-69-1-a"><num>(a)</num><content><p>he makes a taxable disposal in respect of which he is liable to pay tax, or</p></content></level><level class="para1" eId="section-69-1-b"><num>(b)</num><content><p>he permits another person to make a taxable disposal in respect of which he (the first-mentioned person) is liable to pay tax.</p></content></level></subsection><subsection eId="section-69-2"><num>(2)</num><intro><p>Where—</p></intro><level class="para1" eId="section-69-2-a"><num>(a)</num><content><p>a taxable disposal is made, and</p></content></level><level class="para1" eId="section-69-2-b"><num>(b)</num><content><p>it is made without the knowledge of the person who is liable to pay tax in respect of it,</p></content></level><wrapUp><p>that person shall for the purposes of this section be taken to permit the disposal.</p></wrapUp></subsection></section><section eId="section-70"><num>70</num><heading>Interpretation: other provisions</heading><subsection eId="section-70-1"><num>(1)</num><intro><p>Unless the context otherwise requires—</p></intro><hcontainer name="definition"><content><p>“accounting period” shall be construed in accordance with section 49 above;</p></content></hcontainer><hcontainer name="definition"><content><p>“appeal tribunal” means a VAT and duties tribunal;</p></content></hcontainer><hcontainer name="definition"><content><p>“authorised person” means any person acting under the authority of the Commissioners;</p></content></hcontainer><hcontainer name="definition"><content><p>“the Commissioners” means the Commissioners of Customs and Excise;</p></content></hcontainer><hcontainer name="definition"><content><p>“conduct” includes any act, omission or statement;</p></content></hcontainer><hcontainer name="definition"><content><p>“material” means material of all kinds, including objects, substances and products of all kinds;</p></content></hcontainer><hcontainer name="definition"><content><p>“prescribed” means prescribed by an order or regulations under this Part;</p></content></hcontainer><hcontainer name="definition"><content><p>“registrable person” has the meaning given by section 47(10) above;</p></content></hcontainer><hcontainer name="definition"><content><p>“tax” means landfill tax;</p></content></hcontainer><hcontainer name="definition"><content><p>“taxable disposal” has the meaning given by section 40 above.</p></content></hcontainer></subsection><subsection eId="section-70-2"><num>(2)</num><intro><p>A landfill disposal is a disposal—</p></intro><level class="para1" eId="section-70-2-a"><num>(a)</num><content><p>of material as waste, and</p></content></level><level class="para1" eId="section-70-2-b"><num>(b)</num><content><p>made by way of landfill.</p></content></level></subsection><subsection eId="section-70-3"><num>(3)</num><content><p>A reference to this Part includes a reference to any order or regulations made under it and a reference to a provision of this Part includes a reference to any order or regulations made under the provision, unless otherwise required by the context or any order or regulations.</p></content></subsection><subsection eId="section-70-4"><num>(4)</num><content><p>This section and sections 64 to 69 above apply for the purposes of this Part.</p></content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-III-crossheading-supplementary"><heading>Supplementary</heading><section eId="section-71"><num>71</num><heading>Orders and regulations</heading><subsection eId="section-71-1"><num>(1)</num><content><p>The power to make an order under section 57 above shall be exercisable by the Commissioners, and the power to make an order under any other provision of this Part shall be exercisable by the Treasury.</p></content></subsection><subsection eId="section-71-2"><num>(2)</num><content><p>Any power to make regulations under this Part shall be exercisable by the Commissioners.</p></content></subsection><subsection eId="section-71-3"><num>(3)</num><content><p>Any power to make an order or regulations under this Part shall be exercisable by statutory instrument.</p></content></subsection><subsection eId="section-71-4"><num>(4)</num><content><p>An order to which this subsection applies shall be laid before the House of Commons; and unless it is approved by that House before the expiration of a period of 28 days beginning with the date on which it was made it shall cease to have effect on the expiration of that period, but without prejudice to anything previously done under the order or to the making of a new order.</p></content></subsection><subsection eId="section-71-5"><num>(5)</num><content><p>In reckoning any such period as is mentioned in subsection (4) above no account shall be taken of any time during which Parliament is dissolved or prorogued or during which the House of Commons is adjourned for more than four days.</p></content></subsection><subsection eId="section-71-6"><num>(6)</num><content><p>A statutory instrument containing an order or regulations under this Part (other than an order under section 57 above or an order to which subsection (4) above applies) shall be subject to annulment in pursuance of a resolution of the House of Commons.</p></content></subsection><subsection eId="section-71-7"><num>(7)</num><intro><p>Subsection (4) above applies to—</p></intro><level class="para1" eId="section-71-7-a"><num>(a)</num><content><p>an order under section 42(3) above providing for material which would otherwise be qualifying material not to be qualifying material;</p></content></level><level class="para1" eId="section-71-7-b"><num>(b)</num><content><p>an order under section 46 above which produces the result that a disposal which would otherwise not be a taxable disposal is a taxable disposal;</p></content></level><level class="para1" eId="section-71-7-c"><num>(c)</num><content><p>an order under section 63(5) above other than one which provides only that an earlier order under section 63(5) is not to apply to material;</p></content></level><level class="para1" eId="section-71-7-d"><num>(d)</num><content><p>an order under section 65(5) above providing for anything which would otherwise not be a disposal of material by way of landfill to be such a disposal.</p></content></level></subsection><subsection eId="section-71-8"><num>(8)</num><intro><p>Any power to make an order or regulations under this Part—</p></intro><level class="para1" eId="section-71-8-a"><num>(a)</num><content><p>may be exercised as regards prescribed cases or descriptions of case;</p></content></level><level class="para1" eId="section-71-8-b"><num>(b)</num><content><p>may be exercised differently in relation to different cases or descriptions of case.</p></content></level></subsection><subsection eId="section-71-9"><num>(9)</num><content><p>An order or regulations under this Part may include such supplementary, incidental, consequential or transitional provisions as appear to the Treasury or the Commissioners (as the case may be) to be necessary or expedient.</p></content></subsection><subsection eId="section-71-10"><num>(10)</num><content><p>No specific provision of this Part about an order or regulations shall prejudice the generality of subsections (8) and (9) above.</p></content></subsection></section></hcontainer></part>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="part-III-crossheading-the-basic-provisions"><heading>The basic provisions</heading><section eId="section-39"><num>39</num><heading>Landfill tax</heading><subsection eId="section-39-1"><num>(1)</num><content><p>A tax, to be known as landfill tax, shall be charged in accordance with this Part.</p></content></subsection><subsection eId="section-39-2"><num>(2)</num><content><p>The tax shall be under the care and management of the Commissioners of Customs and Excise.</p></content></subsection></section><section eId="section-40"><num>40</num><heading>Charge to tax</heading><subsection eId="section-40-1"><num>(1)</num><content><p>Tax shall be charged on a taxable disposal.</p></content></subsection><subsection eId="section-40-2"><num>(2)</num><intro><p>A disposal is a taxable disposal if—</p></intro><level class="para1" eId="section-40-2-a"><num>(a)</num><content><p>it is a disposal of material as waste,</p></content></level><level class="para1" eId="section-40-2-b"><num>(b)</num><content><p>it is made by way of landfill,</p></content></level><level class="para1" eId="section-40-2-c"><num>(c)</num><content><p>it is made at a landfill site, and</p></content></level><level class="para1" eId="section-40-2-d"><num>(d)</num><content><p>it is made on or after 1st October 1996.</p></content></level></subsection><subsection eId="section-40-3"><num>(3)</num><content><p>For this purpose a disposal is made at a landfill site if the land on or under which it is made constitutes or falls within land which is a landfill site at the time of the disposal.</p></content></subsection></section><section eId="section-41"><num>41</num><heading>Liability to pay tax</heading><subsection eId="section-41-1"><num>(1)</num><content><p>The person liable to pay tax charged on a taxable disposal is the landfill site operator.</p></content></subsection><subsection eId="section-41-2"><num>(2)</num><content><p>The reference here to the landfill site operator is to the person who is at the time of the disposal the operator of the landfill site which constitutes or contains the land on or under which the disposal is made.</p></content></subsection></section><section eId="section-42"><num>42</num><heading>Amount of tax</heading><subsection eId="section-42-1"><num>(1)</num><intro><p>The amount of tax charged on a taxable disposal shall be found by taking—</p></intro><level class="para1" eId="section-42-1-a"><num>(a)</num><content><p>£7 for each whole tonne disposed of and a proportionately reduced sum for any additional part of a tonne, or</p></content></level><level class="para1" eId="section-42-1-b"><num>(b)</num><content><p>a proportionately reduced sum if less than a tonne is disposed of.</p></content></level></subsection><subsection eId="section-42-2"><num>(2)</num><content><p>Where the material disposed of consists entirely of qualifying material this section applies as if the reference to £7 were to £2.</p></content></subsection><subsection eId="section-42-3"><num>(3)</num><content><p>Qualifying material is material for the time being listed for the purposes of this section in an order.</p></content></subsection><subsection eId="section-42-4"><num>(4)</num><content><p>The Treasury must have regard to the object of securing that material is listed if it is of a kind commonly described as inactive or inert.</p></content></subsection></section></hcontainer>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-39"><num>39</num><heading>Landfill tax</heading><subsection eId="section-39-1"><num>(1)</num><content><p>A tax, to be known as landfill tax, shall be charged in accordance with this Part.</p></content></subsection><subsection eId="section-39-2"><num>(2)</num><content><p>The tax shall be under the care and management of the Commissioners of Customs and Excise.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-39-1"><num>(1)</num><content><p>A tax, to be known as landfill tax, shall be charged in accordance with this Part.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-39-2"><num>(2)</num><content><p>The tax shall be under the care and management of the Commissioners of Customs and Excise.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-40"><num>40</num><heading>Charge to tax</heading><subsection eId="section-40-1"><num>(1)</num><content><p>Tax shall be charged on a taxable disposal.</p></content></subsection><subsection eId="section-40-2"><num>(2)</num><intro><p>A disposal is a taxable disposal if—</p></intro><level class="para1" eId="section-40-2-a"><num>(a)</num><content><p>it is a disposal of material as waste,</p></content></level><level class="para1" eId="section-40-2-b"><num>(b)</num><content><p>it is made by way of landfill,</p></content></level><level class="para1" eId="section-40-2-c"><num>(c)</num><content><p>it is made at a landfill site, and</p></content></level><level class="para1" eId="section-40-2-d"><num>(d)</num><content><p>it is made on or after 1st October 1996.</p></content></level></subsection><subsection eId="section-40-3"><num>(3)</num><content><p>For this purpose a disposal is made at a landfill site if the land on or under which it is made constitutes or falls within land which is a landfill site at the time of the disposal.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-40-1"><num>(1)</num><content><p>Tax shall be charged on a taxable disposal.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-40-2"><num>(2)</num><intro><p>A disposal is a taxable disposal if—</p></intro><level class="para1" eId="section-40-2-a"><num>(a)</num><content><p>it is a disposal of material as waste,</p></content></level><level class="para1" eId="section-40-2-b"><num>(b)</num><content><p>it is made by way of landfill,</p></content></level><level class="para1" eId="section-40-2-c"><num>(c)</num><content><p>it is made at a landfill site, and</p></content></level><level class="para1" eId="section-40-2-d"><num>(d)</num><content><p>it is made on or after 1st October 1996.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-40-2-a"><num>(a)</num><content><p>it is a disposal of material as waste,</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-40-2-b"><num>(b)</num><content><p>it is made by way of landfill,</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-40-2-c"><num>(c)</num><content><p>it is made at a landfill site, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-40-2-d"><num>(d)</num><content><p>it is made on or after 1st October 1996.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-40-3"><num>(3)</num><content><p>For this purpose a disposal is made at a landfill site if the land on or under which it is made constitutes or falls within land which is a landfill site at the time of the disposal.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-41"><num>41</num><heading>Liability to pay tax</heading><subsection eId="section-41-1"><num>(1)</num><content><p>The person liable to pay tax charged on a taxable disposal is the landfill site operator.</p></content></subsection><subsection eId="section-41-2"><num>(2)</num><content><p>The reference here to the landfill site operator is to the person who is at the time of the disposal the operator of the landfill site which constitutes or contains the land on or under which the disposal is made.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-41-1"><num>(1)</num><content><p>The person liable to pay tax charged on a taxable disposal is the landfill site operator.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-41-2"><num>(2)</num><content><p>The reference here to the landfill site operator is to the person who is at the time of the disposal the operator of the landfill site which constitutes or contains the land on or under which the disposal is made.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-42"><num>42</num><heading>Amount of tax</heading><subsection eId="section-42-1"><num>(1)</num><intro><p>The amount of tax charged on a taxable disposal shall be found by taking—</p></intro><level class="para1" eId="section-42-1-a"><num>(a)</num><content><p>£7 for each whole tonne disposed of and a proportionately reduced sum for any additional part of a tonne, or</p></content></level><level class="para1" eId="section-42-1-b"><num>(b)</num><content><p>a proportionately reduced sum if less than a tonne is disposed of.</p></content></level></subsection><subsection eId="section-42-2"><num>(2)</num><content><p>Where the material disposed of consists entirely of qualifying material this section applies as if the reference to £7 were to £2.</p></content></subsection><subsection eId="section-42-3"><num>(3)</num><content><p>Qualifying material is material for the time being listed for the purposes of this section in an order.</p></content></subsection><subsection eId="section-42-4"><num>(4)</num><content><p>The Treasury must have regard to the object of securing that material is listed if it is of a kind commonly described as inactive or inert.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-42-1"><num>(1)</num><intro><p>The amount of tax charged on a taxable disposal shall be found by taking—</p></intro><level class="para1" eId="section-42-1-a"><num>(a)</num><content><p>£7 for each whole tonne disposed of and a proportionately reduced sum for any additional part of a tonne, or</p></content></level><level class="para1" eId="section-42-1-b"><num>(b)</num><content><p>a proportionately reduced sum if less than a tonne is disposed of.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-42-1-a"><num>(a)</num><content><p>£7 for each whole tonne disposed of and a proportionately reduced sum for any additional part of a tonne, or</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-42-1-b"><num>(b)</num><content><p>a proportionately reduced sum if less than a tonne is disposed of.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-42-2"><num>(2)</num><content><p>Where the material disposed of consists entirely of qualifying material this section applies as if the reference to £7 were to £2.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-42-3"><num>(3)</num><content><p>Qualifying material is material for the time being listed for the purposes of this section in an order.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-42-4"><num>(4)</num><content><p>The Treasury must have regard to the object of securing that material is listed if it is of a kind commonly described as inactive or inert.</p></content></subsection>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="part-III-crossheading-exemptions"><heading>Exemptions</heading><section eId="section-43"><num>43</num><heading>Material removed from water</heading><subsection eId="section-43-1"><num>(1)</num><intro><p>A disposal is not a taxable disposal for the purposes of this Part if it is shown to the satisfaction of the Commissioners that the disposal is of material all of which—</p></intro><level class="para1" eId="section-43-1-a"><num>(a)</num><content><p>has been removed (by dredging or otherwise) from water falling within subsection (2) below, and</p></content></level><level class="para1" eId="section-43-1-b"><num>(b)</num><content><p>formed part of or projected from the bed of the water concerned before its removal.</p></content></level></subsection><subsection eId="section-43-2"><num>(2)</num><intro><p>Water falls within this subsection if it is—</p></intro><level class="para1" eId="section-43-2-a"><num>(a)</num><content><p>a river, canal or watercourse (whether natural or artificial), or</p></content></level><level class="para1" eId="section-43-2-b"><num>(b)</num><content><p>a dock or harbour (whether natural or artificial).</p></content></level></subsection><subsection eId="section-43-3"><num>(3)</num><intro><p>A disposal is not a taxable disposal for the purposes of this Part if it is shown to the satisfaction of the Commissioners that the disposal is of material all of which—</p></intro><level class="para1" eId="section-43-3-a"><num>(a)</num><content><p>has been removed (by dredging or otherwise) from water falling within the approaches to a harbour (whether natural or artificial),</p></content></level><level class="para1" eId="section-43-3-b"><num>(b)</num><content><p>has been removed in the interests of navigation, and</p></content></level><level class="para1" eId="section-43-3-c"><num>(c)</num><content><p>formed part of or projected from the bed of the water concerned before its removal.</p></content></level></subsection><subsection eId="section-43-4"><num>(4)</num><intro><p>A disposal is not a taxable disposal for the purposes of this Part if it is shown to the satisfaction of the Commissioners that the disposal is of material all of which—</p></intro><level class="para1" eId="section-43-4-a"><num>(a)</num><content><p>consists of naturally occurring mineral material, and</p></content></level><level class="para1" eId="section-43-4-b"><num>(b)</num><content><p>has been removed (by dredging or otherwise) from the sea in the course of commercial operations carried out to obtain substances such as sand or gravel from the seabed.</p></content></level></subsection></section><section eId="section-44"><num>44</num><heading>Mining and quarrying</heading><subsection eId="section-44-1"><num>(1)</num><content><p>A disposal is not a taxable disposal for the purposes of this Part if it is shown to the satisfaction of the Commissioners that the disposal is of material all of which fulfils each of the conditions set out in subsections (2) to (4) below.</p></content></subsection><subsection eId="section-44-2"><num>(2)</num><content><p>The material must result from commercial mining operations (whether the mining is deep or open-cast) or from commercial quarrying operations.</p></content></subsection><subsection eId="section-44-3"><num>(3)</num><content><p>The material must be naturally occurring material extracted from the earth in the course of the operations.</p></content></subsection><subsection eId="section-44-4"><num>(4)</num><content><p>The material must not have been subjected to, or result from, a non-qualifying process carried out at any stage between the extraction and the disposal.</p></content></subsection><subsection eId="section-44-5"><num>(5)</num><intro><p>A non-qualifying process is—</p></intro><level class="para1" eId="section-44-5-a"><num>(a)</num><content><p>a process separate from the mining or quarrying operations, or</p></content></level><level class="para1" eId="section-44-5-b"><num>(b)</num><content><p>a process forming part of those operations and permanently altering the material’s chemical composition.</p></content></level></subsection></section><section eId="section-45"><num>45</num><heading>Pet cemeteries</heading><subsection eId="section-45-1"><num>(1)</num><intro><p>A disposal is not a taxable disposal for the purposes of this Part if—</p></intro><level class="para1" eId="section-45-1-a"><num>(a)</num><content><p>the disposal is of material consisting entirely of the remains of dead domestic pets, and</p></content></level><level class="para1" eId="section-45-1-b"><num>(b)</num><content><p>the landfill site at which the disposal is made fulfils the test set out in subsection (2) below.</p></content></level></subsection><subsection eId="section-45-2"><num>(2)</num><intro><p>The test is that during the relevant period—</p></intro><level class="para1" eId="section-45-2-a"><num>(a)</num><content><p>no landfill disposal was made at the site, or</p></content></level><level class="para1" eId="section-45-2-b"><num>(b)</num><content><p>the only landfill disposals made at the site were of material consisting entirely of the remains of dead domestic pets.</p></content></level></subsection><subsection eId="section-45-3"><num>(3)</num><intro><p>For the purposes of subsection (2) above the relevant period—</p></intro><level class="para1" eId="section-45-3-a"><num>(a)</num><content><p>begins with 1st October 1996 or (if later) with the coming into force in relation to the site of the licence or resolution mentioned in section 66 below, and</p></content></level><level class="para1" eId="section-45-3-b"><num>(b)</num><content><p>ends immediately before the disposal mentioned in subsection (1) above.</p></content></level></subsection></section><section eId="section-46"><num>46</num><heading>Power to vary</heading><subsection eId="section-46-1"><num>(1)</num><intro><p>Provision may be made by order to produce the result that—</p></intro><level class="para1" eId="section-46-1-a"><num>(a)</num><content><p>a disposal which would otherwise be a taxable disposal (by virtue of this Part as it applies for the time being) is not a taxable disposal;</p></content></level><level class="para1" eId="section-46-1-b"><num>(b)</num><content><p>a disposal which would otherwise not be a taxable disposal (by virtue of this Part as it applies for the time being) is a taxable disposal.</p></content></level></subsection><subsection eId="section-46-2"><num>(2)</num><intro><p>Without prejudice to the generality of subsection (1) above, an order under this section may—</p></intro><level class="para1" eId="section-46-2-a"><num>(a)</num><content><p>confer exemption by reference to certificates issued by the Commissioners and to conditions set out in certificates;</p></content></level><level class="para1" eId="section-46-2-b"><num>(b)</num><content><p>allow the Commissioners to direct requirements to be met before certificates can be issued;</p></content></level><level class="para1" eId="section-46-2-c"><num>(c)</num><content><p>provide for the review of decisions about certificates and for appeals relating to decisions on review.</p></content></level></subsection><subsection eId="section-46-3"><num>(3)</num><content><p>Provision may be made under this section in such way as the Treasury think fit (whether by amending this Part or otherwise).</p></content></subsection></section></hcontainer>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-43"><num>43</num><heading>Material removed from water</heading><subsection eId="section-43-1"><num>(1)</num><intro><p>A disposal is not a taxable disposal for the purposes of this Part if it is shown to the satisfaction of the Commissioners that the disposal is of material all of which—</p></intro><level class="para1" eId="section-43-1-a"><num>(a)</num><content><p>has been removed (by dredging or otherwise) from water falling within subsection (2) below, and</p></content></level><level class="para1" eId="section-43-1-b"><num>(b)</num><content><p>formed part of or projected from the bed of the water concerned before its removal.</p></content></level></subsection><subsection eId="section-43-2"><num>(2)</num><intro><p>Water falls within this subsection if it is—</p></intro><level class="para1" eId="section-43-2-a"><num>(a)</num><content><p>a river, canal or watercourse (whether natural or artificial), or</p></content></level><level class="para1" eId="section-43-2-b"><num>(b)</num><content><p>a dock or harbour (whether natural or artificial).</p></content></level></subsection><subsection eId="section-43-3"><num>(3)</num><intro><p>A disposal is not a taxable disposal for the purposes of this Part if it is shown to the satisfaction of the Commissioners that the disposal is of material all of which—</p></intro><level class="para1" eId="section-43-3-a"><num>(a)</num><content><p>has been removed (by dredging or otherwise) from water falling within the approaches to a harbour (whether natural or artificial),</p></content></level><level class="para1" eId="section-43-3-b"><num>(b)</num><content><p>has been removed in the interests of navigation, and</p></content></level><level class="para1" eId="section-43-3-c"><num>(c)</num><content><p>formed part of or projected from the bed of the water concerned before its removal.</p></content></level></subsection><subsection eId="section-43-4"><num>(4)</num><intro><p>A disposal is not a taxable disposal for the purposes of this Part if it is shown to the satisfaction of the Commissioners that the disposal is of material all of which—</p></intro><level class="para1" eId="section-43-4-a"><num>(a)</num><content><p>consists of naturally occurring mineral material, and</p></content></level><level class="para1" eId="section-43-4-b"><num>(b)</num><content><p>has been removed (by dredging or otherwise) from the sea in the course of commercial operations carried out to obtain substances such as sand or gravel from the seabed.</p></content></level></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-43-1"><num>(1)</num><intro><p>A disposal is not a taxable disposal for the purposes of this Part if it is shown to the satisfaction of the Commissioners that the disposal is of material all of which—</p></intro><level class="para1" eId="section-43-1-a"><num>(a)</num><content><p>has been removed (by dredging or otherwise) from water falling within subsection (2) below, and</p></content></level><level class="para1" eId="section-43-1-b"><num>(b)</num><content><p>formed part of or projected from the bed of the water concerned before its removal.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-43-1-a"><num>(a)</num><content><p>has been removed (by dredging or otherwise) from water falling within subsection (2) below, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-43-1-b"><num>(b)</num><content><p>formed part of or projected from the bed of the water concerned before its removal.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-43-2"><num>(2)</num><intro><p>Water falls within this subsection if it is—</p></intro><level class="para1" eId="section-43-2-a"><num>(a)</num><content><p>a river, canal or watercourse (whether natural or artificial), or</p></content></level><level class="para1" eId="section-43-2-b"><num>(b)</num><content><p>a dock or harbour (whether natural or artificial).</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-43-2-a"><num>(a)</num><content><p>a river, canal or watercourse (whether natural or artificial), or</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-43-2-b"><num>(b)</num><content><p>a dock or harbour (whether natural or artificial).</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-43-3"><num>(3)</num><intro><p>A disposal is not a taxable disposal for the purposes of this Part if it is shown to the satisfaction of the Commissioners that the disposal is of material all of which—</p></intro><level class="para1" eId="section-43-3-a"><num>(a)</num><content><p>has been removed (by dredging or otherwise) from water falling within the approaches to a harbour (whether natural or artificial),</p></content></level><level class="para1" eId="section-43-3-b"><num>(b)</num><content><p>has been removed in the interests of navigation, and</p></content></level><level class="para1" eId="section-43-3-c"><num>(c)</num><content><p>formed part of or projected from the bed of the water concerned before its removal.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-43-3-a"><num>(a)</num><content><p>has been removed (by dredging or otherwise) from water falling within the approaches to a harbour (whether natural or artificial),</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-43-3-b"><num>(b)</num><content><p>has been removed in the interests of navigation, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-43-3-c"><num>(c)</num><content><p>formed part of or projected from the bed of the water concerned before its removal.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-43-4"><num>(4)</num><intro><p>A disposal is not a taxable disposal for the purposes of this Part if it is shown to the satisfaction of the Commissioners that the disposal is of material all of which—</p></intro><level class="para1" eId="section-43-4-a"><num>(a)</num><content><p>consists of naturally occurring mineral material, and</p></content></level><level class="para1" eId="section-43-4-b"><num>(b)</num><content><p>has been removed (by dredging or otherwise) from the sea in the course of commercial operations carried out to obtain substances such as sand or gravel from the seabed.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-43-4-a"><num>(a)</num><content><p>consists of naturally occurring mineral material, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-43-4-b"><num>(b)</num><content><p>has been removed (by dredging or otherwise) from the sea in the course of commercial operations carried out to obtain substances such as sand or gravel from the seabed.</p></content></level>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-44"><num>44</num><heading>Mining and quarrying</heading><subsection eId="section-44-1"><num>(1)</num><content><p>A disposal is not a taxable disposal for the purposes of this Part if it is shown to the satisfaction of the Commissioners that the disposal is of material all of which fulfils each of the conditions set out in subsections (2) to (4) below.</p></content></subsection><subsection eId="section-44-2"><num>(2)</num><content><p>The material must result from commercial mining operations (whether the mining is deep or open-cast) or from commercial quarrying operations.</p></content></subsection><subsection eId="section-44-3"><num>(3)</num><content><p>The material must be naturally occurring material extracted from the earth in the course of the operations.</p></content></subsection><subsection eId="section-44-4"><num>(4)</num><content><p>The material must not have been subjected to, or result from, a non-qualifying process carried out at any stage between the extraction and the disposal.</p></content></subsection><subsection eId="section-44-5"><num>(5)</num><intro><p>A non-qualifying process is—</p></intro><level class="para1" eId="section-44-5-a"><num>(a)</num><content><p>a process separate from the mining or quarrying operations, or</p></content></level><level class="para1" eId="section-44-5-b"><num>(b)</num><content><p>a process forming part of those operations and permanently altering the material’s chemical composition.</p></content></level></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-44-1"><num>(1)</num><content><p>A disposal is not a taxable disposal for the purposes of this Part if it is shown to the satisfaction of the Commissioners that the disposal is of material all of which fulfils each of the conditions set out in subsections (2) to (4) below.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-44-2"><num>(2)</num><content><p>The material must result from commercial mining operations (whether the mining is deep or open-cast) or from commercial quarrying operations.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-44-3"><num>(3)</num><content><p>The material must be naturally occurring material extracted from the earth in the course of the operations.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-44-4"><num>(4)</num><content><p>The material must not have been subjected to, or result from, a non-qualifying process carried out at any stage between the extraction and the disposal.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-44-5"><num>(5)</num><intro><p>A non-qualifying process is—</p></intro><level class="para1" eId="section-44-5-a"><num>(a)</num><content><p>a process separate from the mining or quarrying operations, or</p></content></level><level class="para1" eId="section-44-5-b"><num>(b)</num><content><p>a process forming part of those operations and permanently altering the material’s chemical composition.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-44-5-a"><num>(a)</num><content><p>a process separate from the mining or quarrying operations, or</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-44-5-b"><num>(b)</num><content><p>a process forming part of those operations and permanently altering the material’s chemical composition.</p></content></level>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-45"><num>45</num><heading>Pet cemeteries</heading><subsection eId="section-45-1"><num>(1)</num><intro><p>A disposal is not a taxable disposal for the purposes of this Part if—</p></intro><level class="para1" eId="section-45-1-a"><num>(a)</num><content><p>the disposal is of material consisting entirely of the remains of dead domestic pets, and</p></content></level><level class="para1" eId="section-45-1-b"><num>(b)</num><content><p>the landfill site at which the disposal is made fulfils the test set out in subsection (2) below.</p></content></level></subsection><subsection eId="section-45-2"><num>(2)</num><intro><p>The test is that during the relevant period—</p></intro><level class="para1" eId="section-45-2-a"><num>(a)</num><content><p>no landfill disposal was made at the site, or</p></content></level><level class="para1" eId="section-45-2-b"><num>(b)</num><content><p>the only landfill disposals made at the site were of material consisting entirely of the remains of dead domestic pets.</p></content></level></subsection><subsection eId="section-45-3"><num>(3)</num><intro><p>For the purposes of subsection (2) above the relevant period—</p></intro><level class="para1" eId="section-45-3-a"><num>(a)</num><content><p>begins with 1st October 1996 or (if later) with the coming into force in relation to the site of the licence or resolution mentioned in section 66 below, and</p></content></level><level class="para1" eId="section-45-3-b"><num>(b)</num><content><p>ends immediately before the disposal mentioned in subsection (1) above.</p></content></level></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-45-1"><num>(1)</num><intro><p>A disposal is not a taxable disposal for the purposes of this Part if—</p></intro><level class="para1" eId="section-45-1-a"><num>(a)</num><content><p>the disposal is of material consisting entirely of the remains of dead domestic pets, and</p></content></level><level class="para1" eId="section-45-1-b"><num>(b)</num><content><p>the landfill site at which the disposal is made fulfils the test set out in subsection (2) below.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-45-1-a"><num>(a)</num><content><p>the disposal is of material consisting entirely of the remains of dead domestic pets, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-45-1-b"><num>(b)</num><content><p>the landfill site at which the disposal is made fulfils the test set out in subsection (2) below.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-45-2"><num>(2)</num><intro><p>The test is that during the relevant period—</p></intro><level class="para1" eId="section-45-2-a"><num>(a)</num><content><p>no landfill disposal was made at the site, or</p></content></level><level class="para1" eId="section-45-2-b"><num>(b)</num><content><p>the only landfill disposals made at the site were of material consisting entirely of the remains of dead domestic pets.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-45-2-a"><num>(a)</num><content><p>no landfill disposal was made at the site, or</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-45-2-b"><num>(b)</num><content><p>the only landfill disposals made at the site were of material consisting entirely of the remains of dead domestic pets.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-45-3"><num>(3)</num><intro><p>For the purposes of subsection (2) above the relevant period—</p></intro><level class="para1" eId="section-45-3-a"><num>(a)</num><content><p>begins with 1st October 1996 or (if later) with the coming into force in relation to the site of the licence or resolution mentioned in section 66 below, and</p></content></level><level class="para1" eId="section-45-3-b"><num>(b)</num><content><p>ends immediately before the disposal mentioned in subsection (1) above.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-45-3-a"><num>(a)</num><content><p>begins with 1st October 1996 or (if later) with the coming into force in relation to the site of the licence or resolution mentioned in section 66 below, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-45-3-b"><num>(b)</num><content><p>ends immediately before the disposal mentioned in subsection (1) above.</p></content></level>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-46"><num>46</num><heading>Power to vary</heading><subsection eId="section-46-1"><num>(1)</num><intro><p>Provision may be made by order to produce the result that—</p></intro><level class="para1" eId="section-46-1-a"><num>(a)</num><content><p>a disposal which would otherwise be a taxable disposal (by virtue of this Part as it applies for the time being) is not a taxable disposal;</p></content></level><level class="para1" eId="section-46-1-b"><num>(b)</num><content><p>a disposal which would otherwise not be a taxable disposal (by virtue of this Part as it applies for the time being) is a taxable disposal.</p></content></level></subsection><subsection eId="section-46-2"><num>(2)</num><intro><p>Without prejudice to the generality of subsection (1) above, an order under this section may—</p></intro><level class="para1" eId="section-46-2-a"><num>(a)</num><content><p>confer exemption by reference to certificates issued by the Commissioners and to conditions set out in certificates;</p></content></level><level class="para1" eId="section-46-2-b"><num>(b)</num><content><p>allow the Commissioners to direct requirements to be met before certificates can be issued;</p></content></level><level class="para1" eId="section-46-2-c"><num>(c)</num><content><p>provide for the review of decisions about certificates and for appeals relating to decisions on review.</p></content></level></subsection><subsection eId="section-46-3"><num>(3)</num><content><p>Provision may be made under this section in such way as the Treasury think fit (whether by amending this Part or otherwise).</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-46-1"><num>(1)</num><intro><p>Provision may be made by order to produce the result that—</p></intro><level class="para1" eId="section-46-1-a"><num>(a)</num><content><p>a disposal which would otherwise be a taxable disposal (by virtue of this Part as it applies for the time being) is not a taxable disposal;</p></content></level><level class="para1" eId="section-46-1-b"><num>(b)</num><content><p>a disposal which would otherwise not be a taxable disposal (by virtue of this Part as it applies for the time being) is a taxable disposal.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-46-1-a"><num>(a)</num><content><p>a disposal which would otherwise be a taxable disposal (by virtue of this Part as it applies for the time being) is not a taxable disposal;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-46-1-b"><num>(b)</num><content><p>a disposal which would otherwise not be a taxable disposal (by virtue of this Part as it applies for the time being) is a taxable disposal.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-46-2"><num>(2)</num><intro><p>Without prejudice to the generality of subsection (1) above, an order under this section may—</p></intro><level class="para1" eId="section-46-2-a"><num>(a)</num><content><p>confer exemption by reference to certificates issued by the Commissioners and to conditions set out in certificates;</p></content></level><level class="para1" eId="section-46-2-b"><num>(b)</num><content><p>allow the Commissioners to direct requirements to be met before certificates can be issued;</p></content></level><level class="para1" eId="section-46-2-c"><num>(c)</num><content><p>provide for the review of decisions about certificates and for appeals relating to decisions on review.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-46-2-a"><num>(a)</num><content><p>confer exemption by reference to certificates issued by the Commissioners and to conditions set out in certificates;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-46-2-b"><num>(b)</num><content><p>allow the Commissioners to direct requirements to be met before certificates can be issued;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-46-2-c"><num>(c)</num><content><p>provide for the review of decisions about certificates and for appeals relating to decisions on review.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-46-3"><num>(3)</num><content><p>Provision may be made under this section in such way as the Treasury think fit (whether by amending this Part or otherwise).</p></content></subsection>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="part-III-crossheading-administration"><heading>Administration</heading><section eId="section-47"><num>47</num><heading>Registration</heading><subsection eId="section-47-1"><num>(1)</num><content><p>The register kept under this section may contain such information as the Commissioners think is required for the purposes of the care and management of the tax.</p></content></subsection><subsection eId="section-47-2"><num>(2)</num><intro><p>A person who—</p></intro><level class="para1" eId="section-47-2-a"><num>(a)</num><content><p>carries out taxable activities, and</p></content></level><level class="para1" eId="section-47-2-b"><num>(b)</num><content><p>is not registered,</p></content></level><wrapUp><p>is liable to be registered.</p></wrapUp></subsection><subsection eId="section-47-3"><num>(3)</num><intro><p>Where—</p></intro><level class="para1" eId="section-47-3-a"><num>(a)</num><content><p>a person at any time forms the intention of carrying out taxable activities, and</p></content></level><level class="para1" eId="section-47-3-b"><num>(b)</num><content><p>he is not registered,</p></content></level><wrapUp><p>he shall notify the Commissioners of his intention.</p></wrapUp></subsection><subsection eId="section-47-4"><num>(4)</num><content><p>A person who at any time ceases to have the intention of carrying out taxable activities shall notify the Commissioners of that fact.</p></content></subsection><subsection eId="section-47-5"><num>(5)</num><content><p>Where a person is liable to be registered by virtue of subsection (2) above the Commissioners shall register him with effect from the time when he begins to carry out taxable activities; and this subsection applies whether or not he notifies the Commissioners under subsection (3) above.</p></content></subsection><subsection eId="section-47-6"><num>(6)</num><content><p>Where the Commissioners are satisfied that a person has ceased to carry out taxable activities they may cancel his registration with effect from the earliest practicable time after he so ceased; and this subsection applies whether or not he notifies the Commissioners under subsection (4) above.</p></content></subsection><subsection eId="section-47-7"><num>(7)</num><intro><p>Where—</p></intro><level class="para1" eId="section-47-7-a"><num>(a)</num><content><p>a person notifies the Commissioners under subsection (4) above,</p></content></level><level class="para1" eId="section-47-7-b"><num>(b)</num><content><p>they are satisfied that he will not carry out taxable activities,</p></content></level><level class="para1" eId="section-47-7-c"><num>(c)</num><content><p>they are satisfied that no tax which he is liable to pay is unpaid,</p></content></level><level class="para1" eId="section-47-7-d"><num>(d)</num><content><p>they are satisfied that no credit to which he is entitled under regulations made under section 51 below is outstanding, and</p></content></level><level class="para1" eId="section-47-7-e"><num>(e)</num><content><p>subsection (8) below does not apply,</p></content></level><wrapUp><p>the Commissioners shall cancel his registration with effect from the earliest practicable time after he ceases to carry out taxable activities.</p></wrapUp></subsection><subsection eId="section-47-8"><num>(8)</num><intro><p>Where—</p></intro><level class="para1" eId="section-47-8-a"><num>(a)</num><content><p>a person notifies the Commissioners under subsection (4) above, and</p></content></level><level class="para1" eId="section-47-8-b"><num>(b)</num><content><p>they are satisfied that he has not carried out, and will not carry out, taxable activities,</p></content></level><wrapUp><p>the Commissioners shall cancel his registration with effect from the time when he ceased to have the intention to carry out taxable activities.</p></wrapUp></subsection><subsection eId="section-47-9"><num>(9)</num><intro><p>For the purposes of this section regulations may make provision—</p></intro><level class="para1" eId="section-47-9-a"><num>(a)</num><content><p>as to the time within which a notification is to be made;</p></content></level><level class="para1" eId="section-47-9-b"><num>(b)</num><content><p>as to the form and manner in which any notification is to be made and as to the information to be contained in or provided with it;</p></content></level><level class="para1" eId="section-47-9-c"><num>(c)</num><content><p>requiring a person who has made a notification to notify the Commissioners if any information contained in or provided in connection with it is or becomes inaccurate;</p></content></level><level class="para1" eId="section-47-9-d"><num>(d)</num><content><p>as to the correction of entries in the register.</p></content></level></subsection><subsection eId="section-47-10"><num>(10)</num><intro><p>References in this Part to a registrable person are to a person who—</p></intro><level class="para1" eId="section-47-10-a"><num>(a)</num><content><p>is registered under this section, or</p></content></level><level class="para1" eId="section-47-10-b"><num>(b)</num><content><p>is liable to be registered under this section.</p></content></level></subsection></section><section eId="section-48"><num>48</num><heading>Information required to keep register up to date</heading><subsection eId="section-48-1"><num>(1)</num><intro><p>Regulations may make provision requiring a registrable person to notify the Commissioners of particulars which—</p></intro><level class="para1" eId="section-48-1-a"><num>(a)</num><content><p>are of changes in circumstances relating to the registrable person or any business carried on by him,</p></content></level><level class="para1" eId="section-48-1-b"><num>(b)</num><content><p>appear to the Commissioners to be required for the purpose of keeping the register kept under section 47 above up to date, and</p></content></level><level class="para1" eId="section-48-1-c"><num>(c)</num><content><p>are of a prescribed description.</p></content></level></subsection><subsection eId="section-48-2"><num>(2)</num><intro><p>Regulations may make provision—</p></intro><level class="para1" eId="section-48-2-a"><num>(a)</num><content><p>as to the time within which a notification is to be made;</p></content></level><level class="para1" eId="section-48-2-b"><num>(b)</num><content><p>as to the form and manner in which a notification is to be made;</p></content></level><level class="para1" eId="section-48-2-c"><num>(c)</num><content><p>requiring a person who has made a notification to notify the Commissioners if any information contained in it is inaccurate.</p></content></level></subsection></section><section eId="section-49"><num>49</num><heading>Accounting for tax and time for payment</heading><intro><p>Regulations may provide that a registrable person shall—</p></intro><level class="para1" eId="section-49-a"><num>(a)</num><content><p>account for tax by reference to such periods (accounting periods) as may be determined by or under the regulations;</p></content></level><level class="para1" eId="section-49-b"><num>(b)</num><content><p>make, in relation to accounting periods, returns in such form as may be prescribed and at such times as may be so determined;</p></content></level><level class="para1" eId="section-49-c"><num>(c)</num><content><p>pay tax at such times and in such manner as may be so determined.</p></content></level></section><section eId="section-50"><num>50</num><heading>Power to assess</heading><subsection eId="section-50-1"><num>(1)</num><intro><p>Where—</p></intro><level class="para1" eId="section-50-1-a"><num>(a)</num><content><p>a person has failed to make any returns required to be made under this Part,</p></content></level><level class="para1" eId="section-50-1-b"><num>(b)</num><content><p>a person has failed to keep any documents necessary to verify returns required to be made under this Part,</p></content></level><level class="para1" eId="section-50-1-c"><num>(c)</num><content><p>a person has failed to afford the facilities necessary to verify returns required to be made under this Part, or</p></content></level><level class="para1" eId="section-50-1-d"><num>(d)</num><content><p>it appears to the Commissioners that returns required to be made by a person under this Part are incomplete or incorrect,</p></content></level><wrapUp><p>the Commissioners may assess the amount of tax due from the person concerned to the best of their judgment and notify it to him.</p></wrapUp></subsection><subsection eId="section-50-2"><num>(2)</num><content><p>Where a person has for an accounting period been paid an amount to which he purports to be entitled under regulations made under section 51 below, then, to the extent that the amount ought not to have been paid or would not have been paid had the facts been known or been as they later turn out to be, the Commissioners may assess the amount as being tax due from him for that period and notify it to him accordingly.</p></content></subsection><subsection eId="section-50-3"><num>(3)</num><content><p>Where a person is assessed under subsections (1) and (2) above in respect of the same accounting period the assessments may be combined and notified to him as one assessment.</p></content></subsection><subsection eId="section-50-4"><num>(4)</num><content><p>Where the person failing to make a return, or making a return which appears to the Commissioners to be incomplete or incorrect, was required to make the return as a personal representative, trustee in bankruptcy, receiver, liquidator or person otherwise acting in a representative capacity in relation to another person, subsection (1) above shall apply as if the reference to tax due from him included a reference to tax due from that other person.</p></content></subsection><subsection eId="section-50-5"><num>(5)</num><intro><p>An assessment under subsection (1) or (2) above of an amount of tax due for an accounting period shall not be made after the later of the following—</p></intro><level class="para1" eId="section-50-5-a"><num>(a)</num><content><p>two years after the end of the accounting period;</p></content></level><level class="para1" eId="section-50-5-b"><num>(b)</num><content><p>one year after evidence of facts, sufficient in the Commissioners' opinion to justify the making of the assessment, comes to their knowledge;</p></content></level><wrapUp><p>but where further such evidence comes to their knowledge after the making of an assessment under subsection (1) or (2) above another assessment may be made under the subsection concerned in addition to any earlier assessment.</p></wrapUp></subsection><subsection eId="section-50-6"><num>(6)</num><intro><p>Where—</p></intro><level class="para1" eId="section-50-6-a"><num>(a)</num><content><p>as a result of a person’s failure to make a return in relation to an accounting period the Commissioners have made an assessment under subsection (1) above for that period,</p></content></level><level class="para1" eId="section-50-6-b"><num>(b)</num><content><p>the tax assessed has been paid but no proper return has been made in relation to the period to which the assessment related, and</p></content></level><level class="para1" eId="section-50-6-c"><num>(c)</num><content><p>as a result of a failure to make a return in relation to a later accounting period, being a failure by the person referred to in paragraph (a) above or a person acting in a representative capacity in relation to him, as mentioned in subsection (4) above, the Commissioners find it necessary to make another assessment under subsection (1) above,</p></content></level><wrapUp><p>then, if the Commissioners think fit, having regard to the failure referred to in paragraph (a) above, they may specify in the assessment referred to in paragraph (c) above an amount of tax greater than that which they would otherwise have considered to be appropriate.</p></wrapUp></subsection><subsection eId="section-50-7"><num>(7)</num><content><p>Where an amount has been assessed and notified to any person under subsection (1) or (2) above it shall be deemed to be an amount of tax due from him and may be recovered accordingly unless, or except to the extent that, the assessment has subsequently been withdrawn or reduced.</p></content></subsection><subsection eId="section-50-8"><num>(8)</num><intro><p>For the purposes of this section notification to—</p></intro><level class="para1" eId="section-50-8-a"><num>(a)</num><content><p>a personal representative, trustee in bankruptcy, receiver or liquidator, or</p></content></level><level class="para1" eId="section-50-8-b"><num>(b)</num><content><p>a person otherwise acting in a representative capacity in relation to another person,</p></content></level><wrapUp><p>shall be treated as notification to the person in relation to whom the person mentioned in paragraph (a) above, or the first person mentioned in paragraph (b) above, acts.</p></wrapUp></subsection><subsection eId="section-50-9"><num>(9)</num><content><p>Subsection (5) above has effect subject to paragraph 33 of Schedule 5 to this Act.</p></content></subsection><subsection eId="section-50-10"><num>(10)</num><content><p>In this section “trustee in bankruptcy” means, as respects Scotland, an interim or permanent trustee (within the meaning of the <noteRef href="#m00046" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Bankruptcy (Scotland) Act 1985) or a trustee acting under a trust deed (within the meaning of that Act).</p></content></subsection></section></hcontainer>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-47"><num>47</num><heading>Registration</heading><subsection eId="section-47-1"><num>(1)</num><content><p>The register kept under this section may contain such information as the Commissioners think is required for the purposes of the care and management of the tax.</p></content></subsection><subsection eId="section-47-2"><num>(2)</num><intro><p>A person who—</p></intro><level class="para1" eId="section-47-2-a"><num>(a)</num><content><p>carries out taxable activities, and</p></content></level><level class="para1" eId="section-47-2-b"><num>(b)</num><content><p>is not registered,</p></content></level><wrapUp><p>is liable to be registered.</p></wrapUp></subsection><subsection eId="section-47-3"><num>(3)</num><intro><p>Where—</p></intro><level class="para1" eId="section-47-3-a"><num>(a)</num><content><p>a person at any time forms the intention of carrying out taxable activities, and</p></content></level><level class="para1" eId="section-47-3-b"><num>(b)</num><content><p>he is not registered,</p></content></level><wrapUp><p>he shall notify the Commissioners of his intention.</p></wrapUp></subsection><subsection eId="section-47-4"><num>(4)</num><content><p>A person who at any time ceases to have the intention of carrying out taxable activities shall notify the Commissioners of that fact.</p></content></subsection><subsection eId="section-47-5"><num>(5)</num><content><p>Where a person is liable to be registered by virtue of subsection (2) above the Commissioners shall register him with effect from the time when he begins to carry out taxable activities; and this subsection applies whether or not he notifies the Commissioners under subsection (3) above.</p></content></subsection><subsection eId="section-47-6"><num>(6)</num><content><p>Where the Commissioners are satisfied that a person has ceased to carry out taxable activities they may cancel his registration with effect from the earliest practicable time after he so ceased; and this subsection applies whether or not he notifies the Commissioners under subsection (4) above.</p></content></subsection><subsection eId="section-47-7"><num>(7)</num><intro><p>Where—</p></intro><level class="para1" eId="section-47-7-a"><num>(a)</num><content><p>a person notifies the Commissioners under subsection (4) above,</p></content></level><level class="para1" eId="section-47-7-b"><num>(b)</num><content><p>they are satisfied that he will not carry out taxable activities,</p></content></level><level class="para1" eId="section-47-7-c"><num>(c)</num><content><p>they are satisfied that no tax which he is liable to pay is unpaid,</p></content></level><level class="para1" eId="section-47-7-d"><num>(d)</num><content><p>they are satisfied that no credit to which he is entitled under regulations made under section 51 below is outstanding, and</p></content></level><level class="para1" eId="section-47-7-e"><num>(e)</num><content><p>subsection (8) below does not apply,</p></content></level><wrapUp><p>the Commissioners shall cancel his registration with effect from the earliest practicable time after he ceases to carry out taxable activities.</p></wrapUp></subsection><subsection eId="section-47-8"><num>(8)</num><intro><p>Where—</p></intro><level class="para1" eId="section-47-8-a"><num>(a)</num><content><p>a person notifies the Commissioners under subsection (4) above, and</p></content></level><level class="para1" eId="section-47-8-b"><num>(b)</num><content><p>they are satisfied that he has not carried out, and will not carry out, taxable activities,</p></content></level><wrapUp><p>the Commissioners shall cancel his registration with effect from the time when he ceased to have the intention to carry out taxable activities.</p></wrapUp></subsection><subsection eId="section-47-9"><num>(9)</num><intro><p>For the purposes of this section regulations may make provision—</p></intro><level class="para1" eId="section-47-9-a"><num>(a)</num><content><p>as to the time within which a notification is to be made;</p></content></level><level class="para1" eId="section-47-9-b"><num>(b)</num><content><p>as to the form and manner in which any notification is to be made and as to the information to be contained in or provided with it;</p></content></level><level class="para1" eId="section-47-9-c"><num>(c)</num><content><p>requiring a person who has made a notification to notify the Commissioners if any information contained in or provided in connection with it is or becomes inaccurate;</p></content></level><level class="para1" eId="section-47-9-d"><num>(d)</num><content><p>as to the correction of entries in the register.</p></content></level></subsection><subsection eId="section-47-10"><num>(10)</num><intro><p>References in this Part to a registrable person are to a person who—</p></intro><level class="para1" eId="section-47-10-a"><num>(a)</num><content><p>is registered under this section, or</p></content></level><level class="para1" eId="section-47-10-b"><num>(b)</num><content><p>is liable to be registered under this section.</p></content></level></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-47-1"><num>(1)</num><content><p>The register kept under this section may contain such information as the Commissioners think is required for the purposes of the care and management of the tax.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-47-2"><num>(2)</num><intro><p>A person who—</p></intro><level class="para1" eId="section-47-2-a"><num>(a)</num><content><p>carries out taxable activities, and</p></content></level><level class="para1" eId="section-47-2-b"><num>(b)</num><content><p>is not registered,</p></content></level><wrapUp><p>is liable to be registered.</p></wrapUp></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-47-2-a"><num>(a)</num><content><p>carries out taxable activities, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-47-2-b"><num>(b)</num><content><p>is not registered,</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-47-3"><num>(3)</num><intro><p>Where—</p></intro><level class="para1" eId="section-47-3-a"><num>(a)</num><content><p>a person at any time forms the intention of carrying out taxable activities, and</p></content></level><level class="para1" eId="section-47-3-b"><num>(b)</num><content><p>he is not registered,</p></content></level><wrapUp><p>he shall notify the Commissioners of his intention.</p></wrapUp></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-47-3-a"><num>(a)</num><content><p>a person at any time forms the intention of carrying out taxable activities, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-47-3-b"><num>(b)</num><content><p>he is not registered,</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-47-4"><num>(4)</num><content><p>A person who at any time ceases to have the intention of carrying out taxable activities shall notify the Commissioners of that fact.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-47-5"><num>(5)</num><content><p>Where a person is liable to be registered by virtue of subsection (2) above the Commissioners shall register him with effect from the time when he begins to carry out taxable activities; and this subsection applies whether or not he notifies the Commissioners under subsection (3) above.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-47-6"><num>(6)</num><content><p>Where the Commissioners are satisfied that a person has ceased to carry out taxable activities they may cancel his registration with effect from the earliest practicable time after he so ceased; and this subsection applies whether or not he notifies the Commissioners under subsection (4) above.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-47-7"><num>(7)</num><intro><p>Where—</p></intro><level class="para1" eId="section-47-7-a"><num>(a)</num><content><p>a person notifies the Commissioners under subsection (4) above,</p></content></level><level class="para1" eId="section-47-7-b"><num>(b)</num><content><p>they are satisfied that he will not carry out taxable activities,</p></content></level><level class="para1" eId="section-47-7-c"><num>(c)</num><content><p>they are satisfied that no tax which he is liable to pay is unpaid,</p></content></level><level class="para1" eId="section-47-7-d"><num>(d)</num><content><p>they are satisfied that no credit to which he is entitled under regulations made under section 51 below is outstanding, and</p></content></level><level class="para1" eId="section-47-7-e"><num>(e)</num><content><p>subsection (8) below does not apply,</p></content></level><wrapUp><p>the Commissioners shall cancel his registration with effect from the earliest practicable time after he ceases to carry out taxable activities.</p></wrapUp></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-47-7-a"><num>(a)</num><content><p>a person notifies the Commissioners under subsection (4) above,</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-47-7-b"><num>(b)</num><content><p>they are satisfied that he will not carry out taxable activities,</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-47-7-c"><num>(c)</num><content><p>they are satisfied that no tax which he is liable to pay is unpaid,</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-47-7-d"><num>(d)</num><content><p>they are satisfied that no credit to which he is entitled under regulations made under section 51 below is outstanding, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-47-7-e"><num>(e)</num><content><p>subsection (8) below does not apply,</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-47-8"><num>(8)</num><intro><p>Where—</p></intro><level class="para1" eId="section-47-8-a"><num>(a)</num><content><p>a person notifies the Commissioners under subsection (4) above, and</p></content></level><level class="para1" eId="section-47-8-b"><num>(b)</num><content><p>they are satisfied that he has not carried out, and will not carry out, taxable activities,</p></content></level><wrapUp><p>the Commissioners shall cancel his registration with effect from the time when he ceased to have the intention to carry out taxable activities.</p></wrapUp></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-47-8-a"><num>(a)</num><content><p>a person notifies the Commissioners under subsection (4) above, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-47-8-b"><num>(b)</num><content><p>they are satisfied that he has not carried out, and will not carry out, taxable activities,</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-47-9"><num>(9)</num><intro><p>For the purposes of this section regulations may make provision—</p></intro><level class="para1" eId="section-47-9-a"><num>(a)</num><content><p>as to the time within which a notification is to be made;</p></content></level><level class="para1" eId="section-47-9-b"><num>(b)</num><content><p>as to the form and manner in which any notification is to be made and as to the information to be contained in or provided with it;</p></content></level><level class="para1" eId="section-47-9-c"><num>(c)</num><content><p>requiring a person who has made a notification to notify the Commissioners if any information contained in or provided in connection with it is or becomes inaccurate;</p></content></level><level class="para1" eId="section-47-9-d"><num>(d)</num><content><p>as to the correction of entries in the register.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-47-9-a"><num>(a)</num><content><p>as to the time within which a notification is to be made;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-47-9-b"><num>(b)</num><content><p>as to the form and manner in which any notification is to be made and as to the information to be contained in or provided with it;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-47-9-c"><num>(c)</num><content><p>requiring a person who has made a notification to notify the Commissioners if any information contained in or provided in connection with it is or becomes inaccurate;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-47-9-d"><num>(d)</num><content><p>as to the correction of entries in the register.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-47-10"><num>(10)</num><intro><p>References in this Part to a registrable person are to a person who—</p></intro><level class="para1" eId="section-47-10-a"><num>(a)</num><content><p>is registered under this section, or</p></content></level><level class="para1" eId="section-47-10-b"><num>(b)</num><content><p>is liable to be registered under this section.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-47-10-a"><num>(a)</num><content><p>is registered under this section, or</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-47-10-b"><num>(b)</num><content><p>is liable to be registered under this section.</p></content></level>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-48"><num>48</num><heading>Information required to keep register up to date</heading><subsection eId="section-48-1"><num>(1)</num><intro><p>Regulations may make provision requiring a registrable person to notify the Commissioners of particulars which—</p></intro><level class="para1" eId="section-48-1-a"><num>(a)</num><content><p>are of changes in circumstances relating to the registrable person or any business carried on by him,</p></content></level><level class="para1" eId="section-48-1-b"><num>(b)</num><content><p>appear to the Commissioners to be required for the purpose of keeping the register kept under section 47 above up to date, and</p></content></level><level class="para1" eId="section-48-1-c"><num>(c)</num><content><p>are of a prescribed description.</p></content></level></subsection><subsection eId="section-48-2"><num>(2)</num><intro><p>Regulations may make provision—</p></intro><level class="para1" eId="section-48-2-a"><num>(a)</num><content><p>as to the time within which a notification is to be made;</p></content></level><level class="para1" eId="section-48-2-b"><num>(b)</num><content><p>as to the form and manner in which a notification is to be made;</p></content></level><level class="para1" eId="section-48-2-c"><num>(c)</num><content><p>requiring a person who has made a notification to notify the Commissioners if any information contained in it is inaccurate.</p></content></level></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-48-1"><num>(1)</num><intro><p>Regulations may make provision requiring a registrable person to notify the Commissioners of particulars which—</p></intro><level class="para1" eId="section-48-1-a"><num>(a)</num><content><p>are of changes in circumstances relating to the registrable person or any business carried on by him,</p></content></level><level class="para1" eId="section-48-1-b"><num>(b)</num><content><p>appear to the Commissioners to be required for the purpose of keeping the register kept under section 47 above up to date, and</p></content></level><level class="para1" eId="section-48-1-c"><num>(c)</num><content><p>are of a prescribed description.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-48-1-a"><num>(a)</num><content><p>are of changes in circumstances relating to the registrable person or any business carried on by him,</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-48-1-b"><num>(b)</num><content><p>appear to the Commissioners to be required for the purpose of keeping the register kept under section 47 above up to date, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-48-1-c"><num>(c)</num><content><p>are of a prescribed description.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-48-2"><num>(2)</num><intro><p>Regulations may make provision—</p></intro><level class="para1" eId="section-48-2-a"><num>(a)</num><content><p>as to the time within which a notification is to be made;</p></content></level><level class="para1" eId="section-48-2-b"><num>(b)</num><content><p>as to the form and manner in which a notification is to be made;</p></content></level><level class="para1" eId="section-48-2-c"><num>(c)</num><content><p>requiring a person who has made a notification to notify the Commissioners if any information contained in it is inaccurate.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-48-2-a"><num>(a)</num><content><p>as to the time within which a notification is to be made;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-48-2-b"><num>(b)</num><content><p>as to the form and manner in which a notification is to be made;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-48-2-c"><num>(c)</num><content><p>requiring a person who has made a notification to notify the Commissioners if any information contained in it is inaccurate.</p></content></level>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-49"><num>49</num><heading>Accounting for tax and time for payment</heading><intro><p>Regulations may provide that a registrable person shall—</p></intro><level class="para1" eId="section-49-a"><num>(a)</num><content><p>account for tax by reference to such periods (accounting periods) as may be determined by or under the regulations;</p></content></level><level class="para1" eId="section-49-b"><num>(b)</num><content><p>make, in relation to accounting periods, returns in such form as may be prescribed and at such times as may be so determined;</p></content></level><level class="para1" eId="section-49-c"><num>(c)</num><content><p>pay tax at such times and in such manner as may be so determined.</p></content></level></section>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-49-a"><num>(a)</num><content><p>account for tax by reference to such periods (accounting periods) as may be determined by or under the regulations;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-49-b"><num>(b)</num><content><p>make, in relation to accounting periods, returns in such form as may be prescribed and at such times as may be so determined;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-49-c"><num>(c)</num><content><p>pay tax at such times and in such manner as may be so determined.</p></content></level>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-50"><num>50</num><heading>Power to assess</heading><subsection eId="section-50-1"><num>(1)</num><intro><p>Where—</p></intro><level class="para1" eId="section-50-1-a"><num>(a)</num><content><p>a person has failed to make any returns required to be made under this Part,</p></content></level><level class="para1" eId="section-50-1-b"><num>(b)</num><content><p>a person has failed to keep any documents necessary to verify returns required to be made under this Part,</p></content></level><level class="para1" eId="section-50-1-c"><num>(c)</num><content><p>a person has failed to afford the facilities necessary to verify returns required to be made under this Part, or</p></content></level><level class="para1" eId="section-50-1-d"><num>(d)</num><content><p>it appears to the Commissioners that returns required to be made by a person under this Part are incomplete or incorrect,</p></content></level><wrapUp><p>the Commissioners may assess the amount of tax due from the person concerned to the best of their judgment and notify it to him.</p></wrapUp></subsection><subsection eId="section-50-2"><num>(2)</num><content><p>Where a person has for an accounting period been paid an amount to which he purports to be entitled under regulations made under section 51 below, then, to the extent that the amount ought not to have been paid or would not have been paid had the facts been known or been as they later turn out to be, the Commissioners may assess the amount as being tax due from him for that period and notify it to him accordingly.</p></content></subsection><subsection eId="section-50-3"><num>(3)</num><content><p>Where a person is assessed under subsections (1) and (2) above in respect of the same accounting period the assessments may be combined and notified to him as one assessment.</p></content></subsection><subsection eId="section-50-4"><num>(4)</num><content><p>Where the person failing to make a return, or making a return which appears to the Commissioners to be incomplete or incorrect, was required to make the return as a personal representative, trustee in bankruptcy, receiver, liquidator or person otherwise acting in a representative capacity in relation to another person, subsection (1) above shall apply as if the reference to tax due from him included a reference to tax due from that other person.</p></content></subsection><subsection eId="section-50-5"><num>(5)</num><intro><p>An assessment under subsection (1) or (2) above of an amount of tax due for an accounting period shall not be made after the later of the following—</p></intro><level class="para1" eId="section-50-5-a"><num>(a)</num><content><p>two years after the end of the accounting period;</p></content></level><level class="para1" eId="section-50-5-b"><num>(b)</num><content><p>one year after evidence of facts, sufficient in the Commissioners' opinion to justify the making of the assessment, comes to their knowledge;</p></content></level><wrapUp><p>but where further such evidence comes to their knowledge after the making of an assessment under subsection (1) or (2) above another assessment may be made under the subsection concerned in addition to any earlier assessment.</p></wrapUp></subsection><subsection eId="section-50-6"><num>(6)</num><intro><p>Where—</p></intro><level class="para1" eId="section-50-6-a"><num>(a)</num><content><p>as a result of a person’s failure to make a return in relation to an accounting period the Commissioners have made an assessment under subsection (1) above for that period,</p></content></level><level class="para1" eId="section-50-6-b"><num>(b)</num><content><p>the tax assessed has been paid but no proper return has been made in relation to the period to which the assessment related, and</p></content></level><level class="para1" eId="section-50-6-c"><num>(c)</num><content><p>as a result of a failure to make a return in relation to a later accounting period, being a failure by the person referred to in paragraph (a) above or a person acting in a representative capacity in relation to him, as mentioned in subsection (4) above, the Commissioners find it necessary to make another assessment under subsection (1) above,</p></content></level><wrapUp><p>then, if the Commissioners think fit, having regard to the failure referred to in paragraph (a) above, they may specify in the assessment referred to in paragraph (c) above an amount of tax greater than that which they would otherwise have considered to be appropriate.</p></wrapUp></subsection><subsection eId="section-50-7"><num>(7)</num><content><p>Where an amount has been assessed and notified to any person under subsection (1) or (2) above it shall be deemed to be an amount of tax due from him and may be recovered accordingly unless, or except to the extent that, the assessment has subsequently been withdrawn or reduced.</p></content></subsection><subsection eId="section-50-8"><num>(8)</num><intro><p>For the purposes of this section notification to—</p></intro><level class="para1" eId="section-50-8-a"><num>(a)</num><content><p>a personal representative, trustee in bankruptcy, receiver or liquidator, or</p></content></level><level class="para1" eId="section-50-8-b"><num>(b)</num><content><p>a person otherwise acting in a representative capacity in relation to another person,</p></content></level><wrapUp><p>shall be treated as notification to the person in relation to whom the person mentioned in paragraph (a) above, or the first person mentioned in paragraph (b) above, acts.</p></wrapUp></subsection><subsection eId="section-50-9"><num>(9)</num><content><p>Subsection (5) above has effect subject to paragraph 33 of Schedule 5 to this Act.</p></content></subsection><subsection eId="section-50-10"><num>(10)</num><content><p>In this section “trustee in bankruptcy” means, as respects Scotland, an interim or permanent trustee (within the meaning of the <noteRef href="#m00046" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Bankruptcy (Scotland) Act 1985) or a trustee acting under a trust deed (within the meaning of that Act).</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-50-1"><num>(1)</num><intro><p>Where—</p></intro><level class="para1" eId="section-50-1-a"><num>(a)</num><content><p>a person has failed to make any returns required to be made under this Part,</p></content></level><level class="para1" eId="section-50-1-b"><num>(b)</num><content><p>a person has failed to keep any documents necessary to verify returns required to be made under this Part,</p></content></level><level class="para1" eId="section-50-1-c"><num>(c)</num><content><p>a person has failed to afford the facilities necessary to verify returns required to be made under this Part, or</p></content></level><level class="para1" eId="section-50-1-d"><num>(d)</num><content><p>it appears to the Commissioners that returns required to be made by a person under this Part are incomplete or incorrect,</p></content></level><wrapUp><p>the Commissioners may assess the amount of tax due from the person concerned to the best of their judgment and notify it to him.</p></wrapUp></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-50-1-a"><num>(a)</num><content><p>a person has failed to make any returns required to be made under this Part,</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-50-1-b"><num>(b)</num><content><p>a person has failed to keep any documents necessary to verify returns required to be made under this Part,</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-50-1-c"><num>(c)</num><content><p>a person has failed to afford the facilities necessary to verify returns required to be made under this Part, or</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-50-1-d"><num>(d)</num><content><p>it appears to the Commissioners that returns required to be made by a person under this Part are incomplete or incorrect,</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-50-2"><num>(2)</num><content><p>Where a person has for an accounting period been paid an amount to which he purports to be entitled under regulations made under section 51 below, then, to the extent that the amount ought not to have been paid or would not have been paid had the facts been known or been as they later turn out to be, the Commissioners may assess the amount as being tax due from him for that period and notify it to him accordingly.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-50-3"><num>(3)</num><content><p>Where a person is assessed under subsections (1) and (2) above in respect of the same accounting period the assessments may be combined and notified to him as one assessment.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-50-4"><num>(4)</num><content><p>Where the person failing to make a return, or making a return which appears to the Commissioners to be incomplete or incorrect, was required to make the return as a personal representative, trustee in bankruptcy, receiver, liquidator or person otherwise acting in a representative capacity in relation to another person, subsection (1) above shall apply as if the reference to tax due from him included a reference to tax due from that other person.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-50-5"><num>(5)</num><intro><p>An assessment under subsection (1) or (2) above of an amount of tax due for an accounting period shall not be made after the later of the following—</p></intro><level class="para1" eId="section-50-5-a"><num>(a)</num><content><p>two years after the end of the accounting period;</p></content></level><level class="para1" eId="section-50-5-b"><num>(b)</num><content><p>one year after evidence of facts, sufficient in the Commissioners' opinion to justify the making of the assessment, comes to their knowledge;</p></content></level><wrapUp><p>but where further such evidence comes to their knowledge after the making of an assessment under subsection (1) or (2) above another assessment may be made under the subsection concerned in addition to any earlier assessment.</p></wrapUp></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-50-5-a"><num>(a)</num><content><p>two years after the end of the accounting period;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-50-5-b"><num>(b)</num><content><p>one year after evidence of facts, sufficient in the Commissioners' opinion to justify the making of the assessment, comes to their knowledge;</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-50-6"><num>(6)</num><intro><p>Where—</p></intro><level class="para1" eId="section-50-6-a"><num>(a)</num><content><p>as a result of a person’s failure to make a return in relation to an accounting period the Commissioners have made an assessment under subsection (1) above for that period,</p></content></level><level class="para1" eId="section-50-6-b"><num>(b)</num><content><p>the tax assessed has been paid but no proper return has been made in relation to the period to which the assessment related, and</p></content></level><level class="para1" eId="section-50-6-c"><num>(c)</num><content><p>as a result of a failure to make a return in relation to a later accounting period, being a failure by the person referred to in paragraph (a) above or a person acting in a representative capacity in relation to him, as mentioned in subsection (4) above, the Commissioners find it necessary to make another assessment under subsection (1) above,</p></content></level><wrapUp><p>then, if the Commissioners think fit, having regard to the failure referred to in paragraph (a) above, they may specify in the assessment referred to in paragraph (c) above an amount of tax greater than that which they would otherwise have considered to be appropriate.</p></wrapUp></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-50-6-a"><num>(a)</num><content><p>as a result of a person’s failure to make a return in relation to an accounting period the Commissioners have made an assessment under subsection (1) above for that period,</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-50-6-b"><num>(b)</num><content><p>the tax assessed has been paid but no proper return has been made in relation to the period to which the assessment related, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-50-6-c"><num>(c)</num><content><p>as a result of a failure to make a return in relation to a later accounting period, being a failure by the person referred to in paragraph (a) above or a person acting in a representative capacity in relation to him, as mentioned in subsection (4) above, the Commissioners find it necessary to make another assessment under subsection (1) above,</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-50-7"><num>(7)</num><content><p>Where an amount has been assessed and notified to any person under subsection (1) or (2) above it shall be deemed to be an amount of tax due from him and may be recovered accordingly unless, or except to the extent that, the assessment has subsequently been withdrawn or reduced.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-50-8"><num>(8)</num><intro><p>For the purposes of this section notification to—</p></intro><level class="para1" eId="section-50-8-a"><num>(a)</num><content><p>a personal representative, trustee in bankruptcy, receiver or liquidator, or</p></content></level><level class="para1" eId="section-50-8-b"><num>(b)</num><content><p>a person otherwise acting in a representative capacity in relation to another person,</p></content></level><wrapUp><p>shall be treated as notification to the person in relation to whom the person mentioned in paragraph (a) above, or the first person mentioned in paragraph (b) above, acts.</p></wrapUp></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-50-8-a"><num>(a)</num><content><p>a personal representative, trustee in bankruptcy, receiver or liquidator, or</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-50-8-b"><num>(b)</num><content><p>a person otherwise acting in a representative capacity in relation to another person,</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-50-9"><num>(9)</num><content><p>Subsection (5) above has effect subject to paragraph 33 of Schedule 5 to this Act.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-50-10"><num>(10)</num><content><p>In this section “trustee in bankruptcy” means, as respects Scotland, an interim or permanent trustee (within the meaning of the <noteRef href="#m00046" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Bankruptcy (Scotland) Act 1985) or a trustee acting under a trust deed (within the meaning of that Act).</p></content></subsection>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="part-III-crossheading-credit"><heading>Credit</heading><section eId="section-51"><num>51</num><heading>Credit: general</heading><subsection eId="section-51-1"><num>(1)</num><intro><p>Regulations may provide that where—</p></intro><level class="para1" eId="section-51-1-a"><num>(a)</num><content><p>a person has paid or is liable to pay tax, and</p></content></level><level class="para1" eId="section-51-1-b"><num>(b)</num><content><p>prescribed conditions are fulfilled,</p></content></level><wrapUp><p>the person shall be entitled to credit of such an amount as is found in accordance with prescribed rules.</p></wrapUp></subsection><subsection eId="section-51-2"><num>(2)</num><intro><p>Regulations may make provision as to the manner in which a person is to benefit from credit, and in particular may make provision—</p></intro><level class="para1" eId="section-51-2-a"><num>(a)</num><content><p>that a person shall be entitled to credit by reference to accounting periods;</p></content></level><level class="para1" eId="section-51-2-b"><num>(b)</num><content><p>that a person shall be entitled to deduct an amount equal to his total credit for an accounting period from the total amount of tax due from him for the period;</p></content></level><level class="para1" eId="section-51-2-c"><num>(c)</num><content><p>that if no tax is due from a person for an accounting period but he is entitled to credit for the period, the amount of the credit shall be paid to him by the Commissioners;</p></content></level><level class="para1" eId="section-51-2-d"><num>(d)</num><content><p>that if the amount of credit to which a person is entitled for an accounting period exceeds the amount of tax due from him for the period, an amount equal to the excess shall be paid to him by the Commissioners;</p></content></level><level class="para1" eId="section-51-2-e"><num>(e)</num><content><p>for the whole or part of any credit to be held over to be credited for a subsequent accounting period;</p></content></level><level class="para1" eId="section-51-2-f"><num>(f)</num><content><p>as to the manner in which a person who has ceased to be registrable is to benefit from credit.</p></content></level></subsection><subsection eId="section-51-3"><num>(3)</num><content><p>Regulations under subsection (2)(c) or (d) above may provide that where at the end of an accounting period an amount is due to a person who has failed to submit returns for an earlier period as required by this Part, the Commissioners may withhold payment of the amount until he has complied with that requirement.</p></content></subsection><subsection eId="section-51-4"><num>(4)</num><content><p>Regulations under subsection (2)(e) above may provide for credit to be held over either on the person’s application or in accordance with directions given by the Commissioners from time to time; and the regulations may allow directions to be given generally or with regard to particular cases.</p></content></subsection><subsection eId="section-51-5"><num>(5)</num><intro><p>Regulations may provide that—</p></intro><level class="para1" eId="section-51-5-a"><num>(a)</num><content><p>no benefit shall be conferred in respect of credit except on a claim made in such manner and at such time as may be determined by or under regulations;</p></content></level><level class="para1" eId="section-51-5-b"><num>(b)</num><content><p>payment in respect of credit shall be made subject to such conditions (if any) as the Commissioners think fit to impose, including conditions as to repayment in specified circumstances;</p></content></level><level class="para1" eId="section-51-5-c"><num>(c)</num><content><p>deduction in respect of credit shall be made subject to such conditions (if any) as the Commissioners think fit to impose, including conditions as to the payment to the Commissioners, in specified circumstances, of an amount representing the whole or part of the amount deducted.</p></content></level></subsection><subsection eId="section-51-6"><num>(6)</num><content><p>Regulations may require a claim by a person to be made in a return required by provision made under section 49 above.</p></content></subsection><subsection eId="section-51-7"><num>(7)</num><content><p>Nothing in section 52 or 53 below shall be taken to derogate from the power to make regulations under this section (whether with regard to bad debts, the environment or any other matter).</p></content></subsection></section><section eId="section-52"><num>52</num><heading>Bad debts</heading><subsection eId="section-52-1"><num>(1)</num><intro><p>Regulations may be made under section 51 above with a view to securing that a person is entitled to credit if—</p></intro><level class="para1" eId="section-52-1-a"><num>(a)</num><content><p>he carries out a taxable activity as a result of which he becomes entitled to a debt which turns out to be bad (in whole or in part), and</p></content></level><level class="para1" eId="section-52-1-b"><num>(b)</num><content><p>such other conditions as may be prescribed are fulfilled.</p></content></level></subsection><subsection eId="section-52-2"><num>(2)</num><content><p>The regulations may include provision under section 51(5)(b) or (c) above requiring repayment or payment if it turns out that it was not justified to regard a debt as bad (or to regard it as bad to the extent that it was so regarded).</p></content></subsection><subsection eId="section-52-3"><num>(3)</num><content><p>The regulations may include provision for determining whether, and to what extent, a debt is to be taken to be bad.</p></content></subsection></section><section eId="section-53"><num>53</num><heading>Bodies concerned with the environment</heading><subsection eId="section-53-1"><num>(1)</num><intro><p>Regulations may be made under section 51 above with a view to securing that a person is entitled to credit if—</p></intro><level class="para1" eId="section-53-1-a"><num>(a)</num><content><p>he pays a sum to a body whose objects are or include the protection of the environment, and</p></content></level><level class="para1" eId="section-53-1-b"><num>(b)</num><content><p>such other conditions as may be prescribed are fulfilled.</p></content></level></subsection><subsection eId="section-53-2"><num>(2)</num><intro><p>The regulations may in particular prescribe conditions—</p></intro><level class="para1" eId="section-53-2-a"><num>(a)</num><content><p>requiring bodies to which sums are paid (environmental bodies) to be approved by another body (the regulatory body);</p></content></level><level class="para1" eId="section-53-2-b"><num>(b)</num><content><p>requiring the regulatory body to be approved by the Commissioners;</p></content></level><level class="para1" eId="section-53-2-c"><num>(c)</num><content><p>requiring sums to be paid with the intention that they be expended on such matters connected with the protection of the environment as may be prescribed.</p></content></level></subsection><subsection eId="section-53-3"><num>(3)</num><intro><p>The regulations may include provision under section 51(5)(b) or (c) above requiring repayment or payment if—</p></intro><level class="para1" eId="section-53-3-a"><num>(a)</num><content><p>a sum is not in fact expended on matters prescribed under subsection (2)(c) above, or</p></content></level><level class="para1" eId="section-53-3-b"><num>(b)</num><content><p>a prescribed condition turns out not to have been fulfilled.</p></content></level></subsection><subsection eId="section-53-4"><num>(4)</num><intro><p>The regulations may include—</p></intro><level class="para1" eId="section-53-4-a"><num>(a)</num><content><p>provision for determining the amount of credit (including provision for limiting it);</p></content></level><level class="para1" eId="section-53-4-b"><num>(b)</num><content><p>provision that matters connected with the protection of the environment include such matters as overheads (including administration) of environmental bodies and the regulatory body;</p></content></level><level class="para1" eId="section-53-4-c"><num>(c)</num><content><p>provision as to the matters by reference to which an environmental body or the regulatory body can be, and remain, approved (including matters relating to the functions and activities of any such body);</p></content></level><level class="para1" eId="section-53-4-d"><num>(d)</num><content><p>provision allowing approval of an environmental body or the regulatory body to be withdrawn (whether prospectively or retrospectively);</p></content></level><level class="para1" eId="section-53-4-e"><num>(e)</num><content><p>provision that, if approval of the regulatory body is withdrawn, another body may be approved in its place or its functions may be performed by the Commissioners;</p></content></level><level class="para1" eId="section-53-4-f"><num>(f)</num><content><p>provision allowing the Commissioners to disclose to the regulatory body information which relates to the tax affairs of persons carrying out taxable activities and which is relevant to the credit scheme established by the regulations.</p></content></level></subsection></section></hcontainer>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-51"><num>51</num><heading>Credit: general</heading><subsection eId="section-51-1"><num>(1)</num><intro><p>Regulations may provide that where—</p></intro><level class="para1" eId="section-51-1-a"><num>(a)</num><content><p>a person has paid or is liable to pay tax, and</p></content></level><level class="para1" eId="section-51-1-b"><num>(b)</num><content><p>prescribed conditions are fulfilled,</p></content></level><wrapUp><p>the person shall be entitled to credit of such an amount as is found in accordance with prescribed rules.</p></wrapUp></subsection><subsection eId="section-51-2"><num>(2)</num><intro><p>Regulations may make provision as to the manner in which a person is to benefit from credit, and in particular may make provision—</p></intro><level class="para1" eId="section-51-2-a"><num>(a)</num><content><p>that a person shall be entitled to credit by reference to accounting periods;</p></content></level><level class="para1" eId="section-51-2-b"><num>(b)</num><content><p>that a person shall be entitled to deduct an amount equal to his total credit for an accounting period from the total amount of tax due from him for the period;</p></content></level><level class="para1" eId="section-51-2-c"><num>(c)</num><content><p>that if no tax is due from a person for an accounting period but he is entitled to credit for the period, the amount of the credit shall be paid to him by the Commissioners;</p></content></level><level class="para1" eId="section-51-2-d"><num>(d)</num><content><p>that if the amount of credit to which a person is entitled for an accounting period exceeds the amount of tax due from him for the period, an amount equal to the excess shall be paid to him by the Commissioners;</p></content></level><level class="para1" eId="section-51-2-e"><num>(e)</num><content><p>for the whole or part of any credit to be held over to be credited for a subsequent accounting period;</p></content></level><level class="para1" eId="section-51-2-f"><num>(f)</num><content><p>as to the manner in which a person who has ceased to be registrable is to benefit from credit.</p></content></level></subsection><subsection eId="section-51-3"><num>(3)</num><content><p>Regulations under subsection (2)(c) or (d) above may provide that where at the end of an accounting period an amount is due to a person who has failed to submit returns for an earlier period as required by this Part, the Commissioners may withhold payment of the amount until he has complied with that requirement.</p></content></subsection><subsection eId="section-51-4"><num>(4)</num><content><p>Regulations under subsection (2)(e) above may provide for credit to be held over either on the person’s application or in accordance with directions given by the Commissioners from time to time; and the regulations may allow directions to be given generally or with regard to particular cases.</p></content></subsection><subsection eId="section-51-5"><num>(5)</num><intro><p>Regulations may provide that—</p></intro><level class="para1" eId="section-51-5-a"><num>(a)</num><content><p>no benefit shall be conferred in respect of credit except on a claim made in such manner and at such time as may be determined by or under regulations;</p></content></level><level class="para1" eId="section-51-5-b"><num>(b)</num><content><p>payment in respect of credit shall be made subject to such conditions (if any) as the Commissioners think fit to impose, including conditions as to repayment in specified circumstances;</p></content></level><level class="para1" eId="section-51-5-c"><num>(c)</num><content><p>deduction in respect of credit shall be made subject to such conditions (if any) as the Commissioners think fit to impose, including conditions as to the payment to the Commissioners, in specified circumstances, of an amount representing the whole or part of the amount deducted.</p></content></level></subsection><subsection eId="section-51-6"><num>(6)</num><content><p>Regulations may require a claim by a person to be made in a return required by provision made under section 49 above.</p></content></subsection><subsection eId="section-51-7"><num>(7)</num><content><p>Nothing in section 52 or 53 below shall be taken to derogate from the power to make regulations under this section (whether with regard to bad debts, the environment or any other matter).</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-51-1"><num>(1)</num><intro><p>Regulations may provide that where—</p></intro><level class="para1" eId="section-51-1-a"><num>(a)</num><content><p>a person has paid or is liable to pay tax, and</p></content></level><level class="para1" eId="section-51-1-b"><num>(b)</num><content><p>prescribed conditions are fulfilled,</p></content></level><wrapUp><p>the person shall be entitled to credit of such an amount as is found in accordance with prescribed rules.</p></wrapUp></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-51-1-a"><num>(a)</num><content><p>a person has paid or is liable to pay tax, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-51-1-b"><num>(b)</num><content><p>prescribed conditions are fulfilled,</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-51-2"><num>(2)</num><intro><p>Regulations may make provision as to the manner in which a person is to benefit from credit, and in particular may make provision—</p></intro><level class="para1" eId="section-51-2-a"><num>(a)</num><content><p>that a person shall be entitled to credit by reference to accounting periods;</p></content></level><level class="para1" eId="section-51-2-b"><num>(b)</num><content><p>that a person shall be entitled to deduct an amount equal to his total credit for an accounting period from the total amount of tax due from him for the period;</p></content></level><level class="para1" eId="section-51-2-c"><num>(c)</num><content><p>that if no tax is due from a person for an accounting period but he is entitled to credit for the period, the amount of the credit shall be paid to him by the Commissioners;</p></content></level><level class="para1" eId="section-51-2-d"><num>(d)</num><content><p>that if the amount of credit to which a person is entitled for an accounting period exceeds the amount of tax due from him for the period, an amount equal to the excess shall be paid to him by the Commissioners;</p></content></level><level class="para1" eId="section-51-2-e"><num>(e)</num><content><p>for the whole or part of any credit to be held over to be credited for a subsequent accounting period;</p></content></level><level class="para1" eId="section-51-2-f"><num>(f)</num><content><p>as to the manner in which a person who has ceased to be registrable is to benefit from credit.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-51-2-a"><num>(a)</num><content><p>that a person shall be entitled to credit by reference to accounting periods;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-51-2-b"><num>(b)</num><content><p>that a person shall be entitled to deduct an amount equal to his total credit for an accounting period from the total amount of tax due from him for the period;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-51-2-c"><num>(c)</num><content><p>that if no tax is due from a person for an accounting period but he is entitled to credit for the period, the amount of the credit shall be paid to him by the Commissioners;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-51-2-d"><num>(d)</num><content><p>that if the amount of credit to which a person is entitled for an accounting period exceeds the amount of tax due from him for the period, an amount equal to the excess shall be paid to him by the Commissioners;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-51-2-e"><num>(e)</num><content><p>for the whole or part of any credit to be held over to be credited for a subsequent accounting period;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-51-2-f"><num>(f)</num><content><p>as to the manner in which a person who has ceased to be registrable is to benefit from credit.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-51-3"><num>(3)</num><content><p>Regulations under subsection (2)(c) or (d) above may provide that where at the end of an accounting period an amount is due to a person who has failed to submit returns for an earlier period as required by this Part, the Commissioners may withhold payment of the amount until he has complied with that requirement.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-51-4"><num>(4)</num><content><p>Regulations under subsection (2)(e) above may provide for credit to be held over either on the person’s application or in accordance with directions given by the Commissioners from time to time; and the regulations may allow directions to be given generally or with regard to particular cases.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-51-5"><num>(5)</num><intro><p>Regulations may provide that—</p></intro><level class="para1" eId="section-51-5-a"><num>(a)</num><content><p>no benefit shall be conferred in respect of credit except on a claim made in such manner and at such time as may be determined by or under regulations;</p></content></level><level class="para1" eId="section-51-5-b"><num>(b)</num><content><p>payment in respect of credit shall be made subject to such conditions (if any) as the Commissioners think fit to impose, including conditions as to repayment in specified circumstances;</p></content></level><level class="para1" eId="section-51-5-c"><num>(c)</num><content><p>deduction in respect of credit shall be made subject to such conditions (if any) as the Commissioners think fit to impose, including conditions as to the payment to the Commissioners, in specified circumstances, of an amount representing the whole or part of the amount deducted.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-51-5-a"><num>(a)</num><content><p>no benefit shall be conferred in respect of credit except on a claim made in such manner and at such time as may be determined by or under regulations;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-51-5-b"><num>(b)</num><content><p>payment in respect of credit shall be made subject to such conditions (if any) as the Commissioners think fit to impose, including conditions as to repayment in specified circumstances;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-51-5-c"><num>(c)</num><content><p>deduction in respect of credit shall be made subject to such conditions (if any) as the Commissioners think fit to impose, including conditions as to the payment to the Commissioners, in specified circumstances, of an amount representing the whole or part of the amount deducted.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-51-6"><num>(6)</num><content><p>Regulations may require a claim by a person to be made in a return required by provision made under section 49 above.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-51-7"><num>(7)</num><content><p>Nothing in section 52 or 53 below shall be taken to derogate from the power to make regulations under this section (whether with regard to bad debts, the environment or any other matter).</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-52"><num>52</num><heading>Bad debts</heading><subsection eId="section-52-1"><num>(1)</num><intro><p>Regulations may be made under section 51 above with a view to securing that a person is entitled to credit if—</p></intro><level class="para1" eId="section-52-1-a"><num>(a)</num><content><p>he carries out a taxable activity as a result of which he becomes entitled to a debt which turns out to be bad (in whole or in part), and</p></content></level><level class="para1" eId="section-52-1-b"><num>(b)</num><content><p>such other conditions as may be prescribed are fulfilled.</p></content></level></subsection><subsection eId="section-52-2"><num>(2)</num><content><p>The regulations may include provision under section 51(5)(b) or (c) above requiring repayment or payment if it turns out that it was not justified to regard a debt as bad (or to regard it as bad to the extent that it was so regarded).</p></content></subsection><subsection eId="section-52-3"><num>(3)</num><content><p>The regulations may include provision for determining whether, and to what extent, a debt is to be taken to be bad.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-52-1"><num>(1)</num><intro><p>Regulations may be made under section 51 above with a view to securing that a person is entitled to credit if—</p></intro><level class="para1" eId="section-52-1-a"><num>(a)</num><content><p>he carries out a taxable activity as a result of which he becomes entitled to a debt which turns out to be bad (in whole or in part), and</p></content></level><level class="para1" eId="section-52-1-b"><num>(b)</num><content><p>such other conditions as may be prescribed are fulfilled.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-52-1-a"><num>(a)</num><content><p>he carries out a taxable activity as a result of which he becomes entitled to a debt which turns out to be bad (in whole or in part), and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-52-1-b"><num>(b)</num><content><p>such other conditions as may be prescribed are fulfilled.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-52-2"><num>(2)</num><content><p>The regulations may include provision under section 51(5)(b) or (c) above requiring repayment or payment if it turns out that it was not justified to regard a debt as bad (or to regard it as bad to the extent that it was so regarded).</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-52-3"><num>(3)</num><content><p>The regulations may include provision for determining whether, and to what extent, a debt is to be taken to be bad.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-53"><num>53</num><heading>Bodies concerned with the environment</heading><subsection eId="section-53-1"><num>(1)</num><intro><p>Regulations may be made under section 51 above with a view to securing that a person is entitled to credit if—</p></intro><level class="para1" eId="section-53-1-a"><num>(a)</num><content><p>he pays a sum to a body whose objects are or include the protection of the environment, and</p></content></level><level class="para1" eId="section-53-1-b"><num>(b)</num><content><p>such other conditions as may be prescribed are fulfilled.</p></content></level></subsection><subsection eId="section-53-2"><num>(2)</num><intro><p>The regulations may in particular prescribe conditions—</p></intro><level class="para1" eId="section-53-2-a"><num>(a)</num><content><p>requiring bodies to which sums are paid (environmental bodies) to be approved by another body (the regulatory body);</p></content></level><level class="para1" eId="section-53-2-b"><num>(b)</num><content><p>requiring the regulatory body to be approved by the Commissioners;</p></content></level><level class="para1" eId="section-53-2-c"><num>(c)</num><content><p>requiring sums to be paid with the intention that they be expended on such matters connected with the protection of the environment as may be prescribed.</p></content></level></subsection><subsection eId="section-53-3"><num>(3)</num><intro><p>The regulations may include provision under section 51(5)(b) or (c) above requiring repayment or payment if—</p></intro><level class="para1" eId="section-53-3-a"><num>(a)</num><content><p>a sum is not in fact expended on matters prescribed under subsection (2)(c) above, or</p></content></level><level class="para1" eId="section-53-3-b"><num>(b)</num><content><p>a prescribed condition turns out not to have been fulfilled.</p></content></level></subsection><subsection eId="section-53-4"><num>(4)</num><intro><p>The regulations may include—</p></intro><level class="para1" eId="section-53-4-a"><num>(a)</num><content><p>provision for determining the amount of credit (including provision for limiting it);</p></content></level><level class="para1" eId="section-53-4-b"><num>(b)</num><content><p>provision that matters connected with the protection of the environment include such matters as overheads (including administration) of environmental bodies and the regulatory body;</p></content></level><level class="para1" eId="section-53-4-c"><num>(c)</num><content><p>provision as to the matters by reference to which an environmental body or the regulatory body can be, and remain, approved (including matters relating to the functions and activities of any such body);</p></content></level><level class="para1" eId="section-53-4-d"><num>(d)</num><content><p>provision allowing approval of an environmental body or the regulatory body to be withdrawn (whether prospectively or retrospectively);</p></content></level><level class="para1" eId="section-53-4-e"><num>(e)</num><content><p>provision that, if approval of the regulatory body is withdrawn, another body may be approved in its place or its functions may be performed by the Commissioners;</p></content></level><level class="para1" eId="section-53-4-f"><num>(f)</num><content><p>provision allowing the Commissioners to disclose to the regulatory body information which relates to the tax affairs of persons carrying out taxable activities and which is relevant to the credit scheme established by the regulations.</p></content></level></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-53-1"><num>(1)</num><intro><p>Regulations may be made under section 51 above with a view to securing that a person is entitled to credit if—</p></intro><level class="para1" eId="section-53-1-a"><num>(a)</num><content><p>he pays a sum to a body whose objects are or include the protection of the environment, and</p></content></level><level class="para1" eId="section-53-1-b"><num>(b)</num><content><p>such other conditions as may be prescribed are fulfilled.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-53-1-a"><num>(a)</num><content><p>he pays a sum to a body whose objects are or include the protection of the environment, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-53-1-b"><num>(b)</num><content><p>such other conditions as may be prescribed are fulfilled.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-53-2"><num>(2)</num><intro><p>The regulations may in particular prescribe conditions—</p></intro><level class="para1" eId="section-53-2-a"><num>(a)</num><content><p>requiring bodies to which sums are paid (environmental bodies) to be approved by another body (the regulatory body);</p></content></level><level class="para1" eId="section-53-2-b"><num>(b)</num><content><p>requiring the regulatory body to be approved by the Commissioners;</p></content></level><level class="para1" eId="section-53-2-c"><num>(c)</num><content><p>requiring sums to be paid with the intention that they be expended on such matters connected with the protection of the environment as may be prescribed.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-53-2-a"><num>(a)</num><content><p>requiring bodies to which sums are paid (environmental bodies) to be approved by another body (the regulatory body);</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-53-2-b"><num>(b)</num><content><p>requiring the regulatory body to be approved by the Commissioners;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-53-2-c"><num>(c)</num><content><p>requiring sums to be paid with the intention that they be expended on such matters connected with the protection of the environment as may be prescribed.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-53-3"><num>(3)</num><intro><p>The regulations may include provision under section 51(5)(b) or (c) above requiring repayment or payment if—</p></intro><level class="para1" eId="section-53-3-a"><num>(a)</num><content><p>a sum is not in fact expended on matters prescribed under subsection (2)(c) above, or</p></content></level><level class="para1" eId="section-53-3-b"><num>(b)</num><content><p>a prescribed condition turns out not to have been fulfilled.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-53-3-a"><num>(a)</num><content><p>a sum is not in fact expended on matters prescribed under subsection (2)(c) above, or</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-53-3-b"><num>(b)</num><content><p>a prescribed condition turns out not to have been fulfilled.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-53-4"><num>(4)</num><intro><p>The regulations may include—</p></intro><level class="para1" eId="section-53-4-a"><num>(a)</num><content><p>provision for determining the amount of credit (including provision for limiting it);</p></content></level><level class="para1" eId="section-53-4-b"><num>(b)</num><content><p>provision that matters connected with the protection of the environment include such matters as overheads (including administration) of environmental bodies and the regulatory body;</p></content></level><level class="para1" eId="section-53-4-c"><num>(c)</num><content><p>provision as to the matters by reference to which an environmental body or the regulatory body can be, and remain, approved (including matters relating to the functions and activities of any such body);</p></content></level><level class="para1" eId="section-53-4-d"><num>(d)</num><content><p>provision allowing approval of an environmental body or the regulatory body to be withdrawn (whether prospectively or retrospectively);</p></content></level><level class="para1" eId="section-53-4-e"><num>(e)</num><content><p>provision that, if approval of the regulatory body is withdrawn, another body may be approved in its place or its functions may be performed by the Commissioners;</p></content></level><level class="para1" eId="section-53-4-f"><num>(f)</num><content><p>provision allowing the Commissioners to disclose to the regulatory body information which relates to the tax affairs of persons carrying out taxable activities and which is relevant to the credit scheme established by the regulations.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-53-4-a"><num>(a)</num><content><p>provision for determining the amount of credit (including provision for limiting it);</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-53-4-b"><num>(b)</num><content><p>provision that matters connected with the protection of the environment include such matters as overheads (including administration) of environmental bodies and the regulatory body;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-53-4-c"><num>(c)</num><content><p>provision as to the matters by reference to which an environmental body or the regulatory body can be, and remain, approved (including matters relating to the functions and activities of any such body);</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-53-4-d"><num>(d)</num><content><p>provision allowing approval of an environmental body or the regulatory body to be withdrawn (whether prospectively or retrospectively);</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-53-4-e"><num>(e)</num><content><p>provision that, if approval of the regulatory body is withdrawn, another body may be approved in its place or its functions may be performed by the Commissioners;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-53-4-f"><num>(f)</num><content><p>provision allowing the Commissioners to disclose to the regulatory body information which relates to the tax affairs of persons carrying out taxable activities and which is relevant to the credit scheme established by the regulations.</p></content></level>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="part-III-crossheading-review-and-appeal"><heading>Review and appeal</heading><section eId="section-54"><num>54</num><heading>Review of Commissioners' decisions</heading><subsection eId="section-54-1"><num>(1)</num><intro><p>This section applies to the following decisions of the Commissioners—</p></intro><level class="para1" eId="section-54-1-a"><num>(a)</num><content><p>a decision as to the registration or cancellation of registration of any person under this Part;</p></content></level><level class="para1" eId="section-54-1-b"><num>(b)</num><content><p>a decision as to whether tax is chargeable in respect of a disposal or as to how much tax is chargeable;</p></content></level><level class="para1" eId="section-54-1-c"><num>(c)</num><content><p>a decision as to whether a person is entitled to credit by virtue of regulations under section 51 above or as to how much credit a person is entitled to or as to the manner in which he is to benefit from credit;</p></content></level><level class="para1" eId="section-54-1-d"><num>(d)</num><content><p>a decision as to an assessment falling within subsection (2) below or as to the amount of such an assessment;</p></content></level><level class="para1" eId="section-54-1-e"><num>(e)</num><content><p>a decision to refuse a request under section 58(3) below;</p></content></level><level class="para1" eId="section-54-1-f"><num>(f)</num><content><p>a decision to refuse an application under section 59 below;</p></content></level><level class="para1" eId="section-54-1-g"><num>(g)</num><content><p>a decision as to whether conditions set out in a specification under the authority of provision made under section 68(4)(b) below are met in relation to a disposal;</p></content></level><level class="para1" eId="section-54-1-h"><num>(h)</num><content><p>a decision to give a direction under any provision contained in regulations by virtue of section 68(5) below;</p></content></level><level class="para1" eId="section-54-1-i"><num>(i)</num><content><p>a decision as to a claim for the repayment of an amount under paragraph 14 of Schedule 5 to this Act;</p></content></level><level class="para1" eId="section-54-1-j"><num>(j)</num><content><p>a decision as to liability to a penalty under Part V of that Schedule or as to the amount of such a penalty;</p></content></level><level class="para1" eId="section-54-1-k"><num>(k)</num><content><p>a decision under paragraph 19 of that Schedule (as mentioned in paragraph 19(5));</p></content></level><level class="para1" eId="section-54-1-l"><num>(l)</num><content><p>a decision as to any liability to pay interest under paragraph 26 or 27 of that Schedule or as to the amount of the interest payable;</p></content></level><level class="para1" eId="section-54-1-m"><num>(m)</num><content><p>a decision as to any liability to pay interest under paragraph 29 of that Schedule or as to the amount of the interest payable;</p></content></level><level class="para1" eId="section-54-1-n"><num>(n)</num><content><p>a decision to require any security under paragraph 31 of that Schedule or as to its amount;</p></content></level><level class="para1" eId="section-54-1-o"><num>(o)</num><content><p>a decision as to the amount of any penalty or interest specified in an assessment under paragraph 32 of that Schedule.</p></content></level></subsection><subsection eId="section-54-2"><num>(2)</num><content><p>An assessment falls within this subsection if it is an assessment under section 50 above in respect of an accounting period in relation to which a return required to be made by virtue of regulations under section 49 above has been made.</p></content></subsection><subsection eId="section-54-3"><num>(3)</num><content><p>Any person who is or will be affected by any decision to which this section applies may by notice in writing to the Commissioners require them to review the decision.</p></content></subsection><subsection eId="section-54-4"><num>(4)</num><content><p>The Commissioners shall not be required under this section to review any decision unless the notice requiring the review is given before the end of the period of 45 days beginning with the day on which written notification of the decision, or of the assessment containing the decision, was first given to the person requiring the review.</p></content></subsection><subsection eId="section-54-5"><num>(5)</num><intro><p>For the purposes of subsection (4) above it shall be the duty of the Commissioners to give written notification of any decision to which this section applies to any person who—</p></intro><level class="para1" eId="section-54-5-a"><num>(a)</num><content><p>requests such a notification,</p></content></level><level class="para1" eId="section-54-5-b"><num>(b)</num><content><p>has not previously been given written notification of that decision, and</p></content></level><level class="para1" eId="section-54-5-c"><num>(c)</num><content><p>if given such a notification, will be entitled to require a review of the decision under this section.</p></content></level></subsection><subsection eId="section-54-6"><num>(6)</num><intro><p>A person shall be entitled to give a notice under this section requiring a decision to be reviewed for a second or subsequent time only if—</p></intro><level class="para1" eId="section-54-6-a"><num>(a)</num><content><p>the grounds on which he requires the further review are that the Commissioners did not, on any previous review, have the opportunity to consider certain facts or other matters, and</p></content></level><level class="para1" eId="section-54-6-b"><num>(b)</num><content><p>he does not, on the further review, require the Commissioners to consider any facts or matters which were considered on a previous review except in so far as they are relevant to any issue not previously considered.</p></content></level></subsection><subsection eId="section-54-7"><num>(7)</num><content><p>Where the Commissioners are required in accordance with this section to review any decision it shall be their duty to do so; and on the review they may withdraw, vary or confirm the decision.</p></content></subsection><subsection eId="section-54-8"><num>(8)</num><intro><p>Where—</p></intro><level class="para1" eId="section-54-8-a"><num>(a)</num><content><p>it is the duty under this section of the Commissioners to review any decision, and</p></content></level><level class="para1" eId="section-54-8-b"><num>(b)</num><content><p>they do not, within the period of 45 days beginning with the day on which the review was required, give notice to the person requiring it of their determination on the review,</p></content></level><wrapUp><p>they shall be deemed for the purposes of this Part to have confirmed the decision.</p></wrapUp></subsection></section><section eId="section-55"><num>55</num><heading>Appeals: general</heading><subsection eId="section-55-1"><num>(1)</num><intro><p>Subject to the following provisions of this section, an appeal shall lie to an appeal tribunal with respect to any of the following decisions—</p></intro><level class="para1" eId="section-55-1-a"><num>(a)</num><content><p>any decision by the Commissioners on a review under section 54 above (including a deemed confirmation under subsection (8) of that section);</p></content></level><level class="para1" eId="section-55-1-b"><num>(b)</num><content><p>any decision by the Commissioners on such review of a decision referred to in section 54(1) above as the Commissioners have agreed to undertake in consequence of a request made after the end of the period mentioned in section 54(4) above.</p></content></level></subsection><subsection eId="section-55-2"><num>(2)</num><intro><p>Where an appeal is made under this section by a person who is required to make returns by virtue of regulations under section 49 above, the appeal shall not be entertained unless the appellant—</p></intro><level class="para1" eId="section-55-2-a"><num>(a)</num><content><p>has made all the returns which he is required to make by virtue of those regulations, and</p></content></level><level class="para1" eId="section-55-2-b"><num>(b)</num><content><p>has paid the amounts shown in those returns as payable by him.</p></content></level></subsection><subsection eId="section-55-3"><num>(3)</num><intro><p>Where an appeal is made under this section with respect to a decision falling within section 54(1)(b) or (d) above the appeal shall not be entertained unless—</p></intro><level class="para1" eId="section-55-3-a"><num>(a)</num><content><p>the amount which the Commissioners have determined to be payable as tax has been paid or deposited with them, or</p></content></level><level class="para1" eId="section-55-3-b"><num>(b)</num><content><p>on being satisfied that the appellant would otherwise suffer hardship the Commissioners agree or the tribunal decides that it should be entertained notwithstanding that that amount has not been so paid or deposited.</p></content></level></subsection><subsection eId="section-55-4"><num>(4)</num><content><p>On an appeal under this section against an assessment to a penalty under paragraph 18 of Schedule 5 to this Act, the burden of proof as to the matters specified in paragraphs (a) and (b) of sub-paragraph (1) of paragraph 18 shall lie upon the Commissioners.</p></content></subsection></section><section eId="section-56"><num>56</num><heading>Appeals: other provisions</heading><subsection eId="section-56-1"><num>(1)</num><content><p>Subsection (2) below applies where the Commissioners make a decision falling within section 54(1)(d) above and on a review of it there is a further decision with respect to which an appeal is made under section 55 above; and the reference here to a further decision includes a reference to a deemed confirmation under section 54(8) above.</p></content></subsection><subsection eId="section-56-2"><num>(2)</num><intro><p>Where on the appeal—</p></intro><level class="para1" eId="section-56-2-a"><num>(a)</num><content><p>it is found that the amount specified in the assessment is less than it ought to have been, and</p></content></level><level class="para1" eId="section-56-2-b"><num>(b)</num><content><p>the tribunal gives a direction specifying the correct amount,</p></content></level><wrapUp><p>the assessment shall have effect as an assessment of the amount specified in the direction and that amount shall be deemed to have been notified to the appellant.</p></wrapUp></subsection><subsection eId="section-56-3"><num>(3)</num><content><p>Where on an appeal under section 55 above it is found that the whole or part of any amount paid or deposited in pursuance of section 55(3) above is not due, so much of that amount as is found not to be due shall be repaid with interest at such rate as the tribunal may determine.</p></content></subsection><subsection eId="section-56-4"><num>(4)</num><content><p>Where on an appeal under section 55 above it is found that the whole or part of any amount due to the appellant by virtue of regulations under section 51(2)(c) or (d) or (f) above has not been paid, so much of that amount as is found not to have been paid shall be paid with interest at such rate as the tribunal may determine.</p></content></subsection><subsection eId="section-56-5"><num>(5)</num><content><p>Where an appeal under section 55 above has been entertained notwithstanding that an amount determined by the Commissioners to be payable as tax has not been paid or deposited and it is found on the appeal that that amount is due the tribunal may, if it thinks fit, direct that that amount shall be paid with interest at such rate as may be specified in the direction.</p></content></subsection><subsection eId="section-56-6"><num>(6)</num><content><p>Without prejudice to paragraph 25 of Schedule 5 to this Act, nothing in section 55 above shall be taken to confer on a tribunal any power to vary an amount assessed by way of penalty except in so far as it is necessary to reduce it to the amount which is appropriate under paragraphs 18 to 24 of that Schedule.</p></content></subsection><subsection eId="section-56-7"><num>(7)</num><content><p>Without prejudice to paragraph 28 of Schedule 5 to this Act, nothing in section 55 above shall be taken to confer on a tribunal any power to vary an amount assessed by way of interest except in so far as it is necessary to reduce it to the amount which is appropriate under paragraph 26 or 27 of that Schedule.</p></content></subsection><subsection eId="section-56-8"><num>(8)</num><intro><p>Sections 85 and 87 of the <noteRef href="#m00047" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Value Added Tax Act 1994 (settling of appeals by agreement and enforcement of certain decisions of tribunal) shall have effect as if—</p></intro><level class="para1" eId="section-56-8-a"><num>(a)</num><content><p>the references to section 83 of that Act included references to section 55 above, and</p></content></level><level class="para1" eId="section-56-8-b"><num>(b)</num><content><p>the references to value added tax included references to landfill tax.</p></content></level></subsection></section><section eId="section-57"><num>57</num><heading>Review and appeal: commencement</heading><intro><p>Sections 54 to 56 above shall come into force on—</p></intro><level class="para1" eId="section-57-a"><num>(a)</num><content><p>1st October 1996, or</p></content></level><level class="para1" eId="section-57-b"><num>(b)</num><content><p>such earlier day as may be appointed by order.</p></content></level></section></hcontainer>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-54"><num>54</num><heading>Review of Commissioners' decisions</heading><subsection eId="section-54-1"><num>(1)</num><intro><p>This section applies to the following decisions of the Commissioners—</p></intro><level class="para1" eId="section-54-1-a"><num>(a)</num><content><p>a decision as to the registration or cancellation of registration of any person under this Part;</p></content></level><level class="para1" eId="section-54-1-b"><num>(b)</num><content><p>a decision as to whether tax is chargeable in respect of a disposal or as to how much tax is chargeable;</p></content></level><level class="para1" eId="section-54-1-c"><num>(c)</num><content><p>a decision as to whether a person is entitled to credit by virtue of regulations under section 51 above or as to how much credit a person is entitled to or as to the manner in which he is to benefit from credit;</p></content></level><level class="para1" eId="section-54-1-d"><num>(d)</num><content><p>a decision as to an assessment falling within subsection (2) below or as to the amount of such an assessment;</p></content></level><level class="para1" eId="section-54-1-e"><num>(e)</num><content><p>a decision to refuse a request under section 58(3) below;</p></content></level><level class="para1" eId="section-54-1-f"><num>(f)</num><content><p>a decision to refuse an application under section 59 below;</p></content></level><level class="para1" eId="section-54-1-g"><num>(g)</num><content><p>a decision as to whether conditions set out in a specification under the authority of provision made under section 68(4)(b) below are met in relation to a disposal;</p></content></level><level class="para1" eId="section-54-1-h"><num>(h)</num><content><p>a decision to give a direction under any provision contained in regulations by virtue of section 68(5) below;</p></content></level><level class="para1" eId="section-54-1-i"><num>(i)</num><content><p>a decision as to a claim for the repayment of an amount under paragraph 14 of Schedule 5 to this Act;</p></content></level><level class="para1" eId="section-54-1-j"><num>(j)</num><content><p>a decision as to liability to a penalty under Part V of that Schedule or as to the amount of such a penalty;</p></content></level><level class="para1" eId="section-54-1-k"><num>(k)</num><content><p>a decision under paragraph 19 of that Schedule (as mentioned in paragraph 19(5));</p></content></level><level class="para1" eId="section-54-1-l"><num>(l)</num><content><p>a decision as to any liability to pay interest under paragraph 26 or 27 of that Schedule or as to the amount of the interest payable;</p></content></level><level class="para1" eId="section-54-1-m"><num>(m)</num><content><p>a decision as to any liability to pay interest under paragraph 29 of that Schedule or as to the amount of the interest payable;</p></content></level><level class="para1" eId="section-54-1-n"><num>(n)</num><content><p>a decision to require any security under paragraph 31 of that Schedule or as to its amount;</p></content></level><level class="para1" eId="section-54-1-o"><num>(o)</num><content><p>a decision as to the amount of any penalty or interest specified in an assessment under paragraph 32 of that Schedule.</p></content></level></subsection><subsection eId="section-54-2"><num>(2)</num><content><p>An assessment falls within this subsection if it is an assessment under section 50 above in respect of an accounting period in relation to which a return required to be made by virtue of regulations under section 49 above has been made.</p></content></subsection><subsection eId="section-54-3"><num>(3)</num><content><p>Any person who is or will be affected by any decision to which this section applies may by notice in writing to the Commissioners require them to review the decision.</p></content></subsection><subsection eId="section-54-4"><num>(4)</num><content><p>The Commissioners shall not be required under this section to review any decision unless the notice requiring the review is given before the end of the period of 45 days beginning with the day on which written notification of the decision, or of the assessment containing the decision, was first given to the person requiring the review.</p></content></subsection><subsection eId="section-54-5"><num>(5)</num><intro><p>For the purposes of subsection (4) above it shall be the duty of the Commissioners to give written notification of any decision to which this section applies to any person who—</p></intro><level class="para1" eId="section-54-5-a"><num>(a)</num><content><p>requests such a notification,</p></content></level><level class="para1" eId="section-54-5-b"><num>(b)</num><content><p>has not previously been given written notification of that decision, and</p></content></level><level class="para1" eId="section-54-5-c"><num>(c)</num><content><p>if given such a notification, will be entitled to require a review of the decision under this section.</p></content></level></subsection><subsection eId="section-54-6"><num>(6)</num><intro><p>A person shall be entitled to give a notice under this section requiring a decision to be reviewed for a second or subsequent time only if—</p></intro><level class="para1" eId="section-54-6-a"><num>(a)</num><content><p>the grounds on which he requires the further review are that the Commissioners did not, on any previous review, have the opportunity to consider certain facts or other matters, and</p></content></level><level class="para1" eId="section-54-6-b"><num>(b)</num><content><p>he does not, on the further review, require the Commissioners to consider any facts or matters which were considered on a previous review except in so far as they are relevant to any issue not previously considered.</p></content></level></subsection><subsection eId="section-54-7"><num>(7)</num><content><p>Where the Commissioners are required in accordance with this section to review any decision it shall be their duty to do so; and on the review they may withdraw, vary or confirm the decision.</p></content></subsection><subsection eId="section-54-8"><num>(8)</num><intro><p>Where—</p></intro><level class="para1" eId="section-54-8-a"><num>(a)</num><content><p>it is the duty under this section of the Commissioners to review any decision, and</p></content></level><level class="para1" eId="section-54-8-b"><num>(b)</num><content><p>they do not, within the period of 45 days beginning with the day on which the review was required, give notice to the person requiring it of their determination on the review,</p></content></level><wrapUp><p>they shall be deemed for the purposes of this Part to have confirmed the decision.</p></wrapUp></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-54-1"><num>(1)</num><intro><p>This section applies to the following decisions of the Commissioners—</p></intro><level class="para1" eId="section-54-1-a"><num>(a)</num><content><p>a decision as to the registration or cancellation of registration of any person under this Part;</p></content></level><level class="para1" eId="section-54-1-b"><num>(b)</num><content><p>a decision as to whether tax is chargeable in respect of a disposal or as to how much tax is chargeable;</p></content></level><level class="para1" eId="section-54-1-c"><num>(c)</num><content><p>a decision as to whether a person is entitled to credit by virtue of regulations under section 51 above or as to how much credit a person is entitled to or as to the manner in which he is to benefit from credit;</p></content></level><level class="para1" eId="section-54-1-d"><num>(d)</num><content><p>a decision as to an assessment falling within subsection (2) below or as to the amount of such an assessment;</p></content></level><level class="para1" eId="section-54-1-e"><num>(e)</num><content><p>a decision to refuse a request under section 58(3) below;</p></content></level><level class="para1" eId="section-54-1-f"><num>(f)</num><content><p>a decision to refuse an application under section 59 below;</p></content></level><level class="para1" eId="section-54-1-g"><num>(g)</num><content><p>a decision as to whether conditions set out in a specification under the authority of provision made under section 68(4)(b) below are met in relation to a disposal;</p></content></level><level class="para1" eId="section-54-1-h"><num>(h)</num><content><p>a decision to give a direction under any provision contained in regulations by virtue of section 68(5) below;</p></content></level><level class="para1" eId="section-54-1-i"><num>(i)</num><content><p>a decision as to a claim for the repayment of an amount under paragraph 14 of Schedule 5 to this Act;</p></content></level><level class="para1" eId="section-54-1-j"><num>(j)</num><content><p>a decision as to liability to a penalty under Part V of that Schedule or as to the amount of such a penalty;</p></content></level><level class="para1" eId="section-54-1-k"><num>(k)</num><content><p>a decision under paragraph 19 of that Schedule (as mentioned in paragraph 19(5));</p></content></level><level class="para1" eId="section-54-1-l"><num>(l)</num><content><p>a decision as to any liability to pay interest under paragraph 26 or 27 of that Schedule or as to the amount of the interest payable;</p></content></level><level class="para1" eId="section-54-1-m"><num>(m)</num><content><p>a decision as to any liability to pay interest under paragraph 29 of that Schedule or as to the amount of the interest payable;</p></content></level><level class="para1" eId="section-54-1-n"><num>(n)</num><content><p>a decision to require any security under paragraph 31 of that Schedule or as to its amount;</p></content></level><level class="para1" eId="section-54-1-o"><num>(o)</num><content><p>a decision as to the amount of any penalty or interest specified in an assessment under paragraph 32 of that Schedule.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-54-1-a"><num>(a)</num><content><p>a decision as to the registration or cancellation of registration of any person under this Part;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-54-1-b"><num>(b)</num><content><p>a decision as to whether tax is chargeable in respect of a disposal or as to how much tax is chargeable;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-54-1-c"><num>(c)</num><content><p>a decision as to whether a person is entitled to credit by virtue of regulations under section 51 above or as to how much credit a person is entitled to or as to the manner in which he is to benefit from credit;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-54-1-d"><num>(d)</num><content><p>a decision as to an assessment falling within subsection (2) below or as to the amount of such an assessment;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-54-1-e"><num>(e)</num><content><p>a decision to refuse a request under section 58(3) below;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-54-1-f"><num>(f)</num><content><p>a decision to refuse an application under section 59 below;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-54-1-g"><num>(g)</num><content><p>a decision as to whether conditions set out in a specification under the authority of provision made under section 68(4)(b) below are met in relation to a disposal;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-54-1-h"><num>(h)</num><content><p>a decision to give a direction under any provision contained in regulations by virtue of section 68(5) below;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-54-1-i"><num>(i)</num><content><p>a decision as to a claim for the repayment of an amount under paragraph 14 of Schedule 5 to this Act;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-54-1-j"><num>(j)</num><content><p>a decision as to liability to a penalty under Part V of that Schedule or as to the amount of such a penalty;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-54-1-k"><num>(k)</num><content><p>a decision under paragraph 19 of that Schedule (as mentioned in paragraph 19(5));</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-54-1-l"><num>(l)</num><content><p>a decision as to any liability to pay interest under paragraph 26 or 27 of that Schedule or as to the amount of the interest payable;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-54-1-m"><num>(m)</num><content><p>a decision as to any liability to pay interest under paragraph 29 of that Schedule or as to the amount of the interest payable;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-54-1-n"><num>(n)</num><content><p>a decision to require any security under paragraph 31 of that Schedule or as to its amount;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-54-1-o"><num>(o)</num><content><p>a decision as to the amount of any penalty or interest specified in an assessment under paragraph 32 of that Schedule.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-54-2"><num>(2)</num><content><p>An assessment falls within this subsection if it is an assessment under section 50 above in respect of an accounting period in relation to which a return required to be made by virtue of regulations under section 49 above has been made.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-54-3"><num>(3)</num><content><p>Any person who is or will be affected by any decision to which this section applies may by notice in writing to the Commissioners require them to review the decision.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-54-4"><num>(4)</num><content><p>The Commissioners shall not be required under this section to review any decision unless the notice requiring the review is given before the end of the period of 45 days beginning with the day on which written notification of the decision, or of the assessment containing the decision, was first given to the person requiring the review.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-54-5"><num>(5)</num><intro><p>For the purposes of subsection (4) above it shall be the duty of the Commissioners to give written notification of any decision to which this section applies to any person who—</p></intro><level class="para1" eId="section-54-5-a"><num>(a)</num><content><p>requests such a notification,</p></content></level><level class="para1" eId="section-54-5-b"><num>(b)</num><content><p>has not previously been given written notification of that decision, and</p></content></level><level class="para1" eId="section-54-5-c"><num>(c)</num><content><p>if given such a notification, will be entitled to require a review of the decision under this section.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-54-5-a"><num>(a)</num><content><p>requests such a notification,</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-54-5-b"><num>(b)</num><content><p>has not previously been given written notification of that decision, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-54-5-c"><num>(c)</num><content><p>if given such a notification, will be entitled to require a review of the decision under this section.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-54-6"><num>(6)</num><intro><p>A person shall be entitled to give a notice under this section requiring a decision to be reviewed for a second or subsequent time only if—</p></intro><level class="para1" eId="section-54-6-a"><num>(a)</num><content><p>the grounds on which he requires the further review are that the Commissioners did not, on any previous review, have the opportunity to consider certain facts or other matters, and</p></content></level><level class="para1" eId="section-54-6-b"><num>(b)</num><content><p>he does not, on the further review, require the Commissioners to consider any facts or matters which were considered on a previous review except in so far as they are relevant to any issue not previously considered.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-54-6-a"><num>(a)</num><content><p>the grounds on which he requires the further review are that the Commissioners did not, on any previous review, have the opportunity to consider certain facts or other matters, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-54-6-b"><num>(b)</num><content><p>he does not, on the further review, require the Commissioners to consider any facts or matters which were considered on a previous review except in so far as they are relevant to any issue not previously considered.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-54-7"><num>(7)</num><content><p>Where the Commissioners are required in accordance with this section to review any decision it shall be their duty to do so; and on the review they may withdraw, vary or confirm the decision.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-54-8"><num>(8)</num><intro><p>Where—</p></intro><level class="para1" eId="section-54-8-a"><num>(a)</num><content><p>it is the duty under this section of the Commissioners to review any decision, and</p></content></level><level class="para1" eId="section-54-8-b"><num>(b)</num><content><p>they do not, within the period of 45 days beginning with the day on which the review was required, give notice to the person requiring it of their determination on the review,</p></content></level><wrapUp><p>they shall be deemed for the purposes of this Part to have confirmed the decision.</p></wrapUp></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-54-8-a"><num>(a)</num><content><p>it is the duty under this section of the Commissioners to review any decision, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-54-8-b"><num>(b)</num><content><p>they do not, within the period of 45 days beginning with the day on which the review was required, give notice to the person requiring it of their determination on the review,</p></content></level>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-55"><num>55</num><heading>Appeals: general</heading><subsection eId="section-55-1"><num>(1)</num><intro><p>Subject to the following provisions of this section, an appeal shall lie to an appeal tribunal with respect to any of the following decisions—</p></intro><level class="para1" eId="section-55-1-a"><num>(a)</num><content><p>any decision by the Commissioners on a review under section 54 above (including a deemed confirmation under subsection (8) of that section);</p></content></level><level class="para1" eId="section-55-1-b"><num>(b)</num><content><p>any decision by the Commissioners on such review of a decision referred to in section 54(1) above as the Commissioners have agreed to undertake in consequence of a request made after the end of the period mentioned in section 54(4) above.</p></content></level></subsection><subsection eId="section-55-2"><num>(2)</num><intro><p>Where an appeal is made under this section by a person who is required to make returns by virtue of regulations under section 49 above, the appeal shall not be entertained unless the appellant—</p></intro><level class="para1" eId="section-55-2-a"><num>(a)</num><content><p>has made all the returns which he is required to make by virtue of those regulations, and</p></content></level><level class="para1" eId="section-55-2-b"><num>(b)</num><content><p>has paid the amounts shown in those returns as payable by him.</p></content></level></subsection><subsection eId="section-55-3"><num>(3)</num><intro><p>Where an appeal is made under this section with respect to a decision falling within section 54(1)(b) or (d) above the appeal shall not be entertained unless—</p></intro><level class="para1" eId="section-55-3-a"><num>(a)</num><content><p>the amount which the Commissioners have determined to be payable as tax has been paid or deposited with them, or</p></content></level><level class="para1" eId="section-55-3-b"><num>(b)</num><content><p>on being satisfied that the appellant would otherwise suffer hardship the Commissioners agree or the tribunal decides that it should be entertained notwithstanding that that amount has not been so paid or deposited.</p></content></level></subsection><subsection eId="section-55-4"><num>(4)</num><content><p>On an appeal under this section against an assessment to a penalty under paragraph 18 of Schedule 5 to this Act, the burden of proof as to the matters specified in paragraphs (a) and (b) of sub-paragraph (1) of paragraph 18 shall lie upon the Commissioners.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-55-1"><num>(1)</num><intro><p>Subject to the following provisions of this section, an appeal shall lie to an appeal tribunal with respect to any of the following decisions—</p></intro><level class="para1" eId="section-55-1-a"><num>(a)</num><content><p>any decision by the Commissioners on a review under section 54 above (including a deemed confirmation under subsection (8) of that section);</p></content></level><level class="para1" eId="section-55-1-b"><num>(b)</num><content><p>any decision by the Commissioners on such review of a decision referred to in section 54(1) above as the Commissioners have agreed to undertake in consequence of a request made after the end of the period mentioned in section 54(4) above.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-55-1-a"><num>(a)</num><content><p>any decision by the Commissioners on a review under section 54 above (including a deemed confirmation under subsection (8) of that section);</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-55-1-b"><num>(b)</num><content><p>any decision by the Commissioners on such review of a decision referred to in section 54(1) above as the Commissioners have agreed to undertake in consequence of a request made after the end of the period mentioned in section 54(4) above.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-55-2"><num>(2)</num><intro><p>Where an appeal is made under this section by a person who is required to make returns by virtue of regulations under section 49 above, the appeal shall not be entertained unless the appellant—</p></intro><level class="para1" eId="section-55-2-a"><num>(a)</num><content><p>has made all the returns which he is required to make by virtue of those regulations, and</p></content></level><level class="para1" eId="section-55-2-b"><num>(b)</num><content><p>has paid the amounts shown in those returns as payable by him.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-55-2-a"><num>(a)</num><content><p>has made all the returns which he is required to make by virtue of those regulations, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-55-2-b"><num>(b)</num><content><p>has paid the amounts shown in those returns as payable by him.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-55-3"><num>(3)</num><intro><p>Where an appeal is made under this section with respect to a decision falling within section 54(1)(b) or (d) above the appeal shall not be entertained unless—</p></intro><level class="para1" eId="section-55-3-a"><num>(a)</num><content><p>the amount which the Commissioners have determined to be payable as tax has been paid or deposited with them, or</p></content></level><level class="para1" eId="section-55-3-b"><num>(b)</num><content><p>on being satisfied that the appellant would otherwise suffer hardship the Commissioners agree or the tribunal decides that it should be entertained notwithstanding that that amount has not been so paid or deposited.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-55-3-a"><num>(a)</num><content><p>the amount which the Commissioners have determined to be payable as tax has been paid or deposited with them, or</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-55-3-b"><num>(b)</num><content><p>on being satisfied that the appellant would otherwise suffer hardship the Commissioners agree or the tribunal decides that it should be entertained notwithstanding that that amount has not been so paid or deposited.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-55-4"><num>(4)</num><content><p>On an appeal under this section against an assessment to a penalty under paragraph 18 of Schedule 5 to this Act, the burden of proof as to the matters specified in paragraphs (a) and (b) of sub-paragraph (1) of paragraph 18 shall lie upon the Commissioners.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-56"><num>56</num><heading>Appeals: other provisions</heading><subsection eId="section-56-1"><num>(1)</num><content><p>Subsection (2) below applies where the Commissioners make a decision falling within section 54(1)(d) above and on a review of it there is a further decision with respect to which an appeal is made under section 55 above; and the reference here to a further decision includes a reference to a deemed confirmation under section 54(8) above.</p></content></subsection><subsection eId="section-56-2"><num>(2)</num><intro><p>Where on the appeal—</p></intro><level class="para1" eId="section-56-2-a"><num>(a)</num><content><p>it is found that the amount specified in the assessment is less than it ought to have been, and</p></content></level><level class="para1" eId="section-56-2-b"><num>(b)</num><content><p>the tribunal gives a direction specifying the correct amount,</p></content></level><wrapUp><p>the assessment shall have effect as an assessment of the amount specified in the direction and that amount shall be deemed to have been notified to the appellant.</p></wrapUp></subsection><subsection eId="section-56-3"><num>(3)</num><content><p>Where on an appeal under section 55 above it is found that the whole or part of any amount paid or deposited in pursuance of section 55(3) above is not due, so much of that amount as is found not to be due shall be repaid with interest at such rate as the tribunal may determine.</p></content></subsection><subsection eId="section-56-4"><num>(4)</num><content><p>Where on an appeal under section 55 above it is found that the whole or part of any amount due to the appellant by virtue of regulations under section 51(2)(c) or (d) or (f) above has not been paid, so much of that amount as is found not to have been paid shall be paid with interest at such rate as the tribunal may determine.</p></content></subsection><subsection eId="section-56-5"><num>(5)</num><content><p>Where an appeal under section 55 above has been entertained notwithstanding that an amount determined by the Commissioners to be payable as tax has not been paid or deposited and it is found on the appeal that that amount is due the tribunal may, if it thinks fit, direct that that amount shall be paid with interest at such rate as may be specified in the direction.</p></content></subsection><subsection eId="section-56-6"><num>(6)</num><content><p>Without prejudice to paragraph 25 of Schedule 5 to this Act, nothing in section 55 above shall be taken to confer on a tribunal any power to vary an amount assessed by way of penalty except in so far as it is necessary to reduce it to the amount which is appropriate under paragraphs 18 to 24 of that Schedule.</p></content></subsection><subsection eId="section-56-7"><num>(7)</num><content><p>Without prejudice to paragraph 28 of Schedule 5 to this Act, nothing in section 55 above shall be taken to confer on a tribunal any power to vary an amount assessed by way of interest except in so far as it is necessary to reduce it to the amount which is appropriate under paragraph 26 or 27 of that Schedule.</p></content></subsection><subsection eId="section-56-8"><num>(8)</num><intro><p>Sections 85 and 87 of the <noteRef href="#m00047" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Value Added Tax Act 1994 (settling of appeals by agreement and enforcement of certain decisions of tribunal) shall have effect as if—</p></intro><level class="para1" eId="section-56-8-a"><num>(a)</num><content><p>the references to section 83 of that Act included references to section 55 above, and</p></content></level><level class="para1" eId="section-56-8-b"><num>(b)</num><content><p>the references to value added tax included references to landfill tax.</p></content></level></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-56-1"><num>(1)</num><content><p>Subsection (2) below applies where the Commissioners make a decision falling within section 54(1)(d) above and on a review of it there is a further decision with respect to which an appeal is made under section 55 above; and the reference here to a further decision includes a reference to a deemed confirmation under section 54(8) above.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-56-2"><num>(2)</num><intro><p>Where on the appeal—</p></intro><level class="para1" eId="section-56-2-a"><num>(a)</num><content><p>it is found that the amount specified in the assessment is less than it ought to have been, and</p></content></level><level class="para1" eId="section-56-2-b"><num>(b)</num><content><p>the tribunal gives a direction specifying the correct amount,</p></content></level><wrapUp><p>the assessment shall have effect as an assessment of the amount specified in the direction and that amount shall be deemed to have been notified to the appellant.</p></wrapUp></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-56-2-a"><num>(a)</num><content><p>it is found that the amount specified in the assessment is less than it ought to have been, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-56-2-b"><num>(b)</num><content><p>the tribunal gives a direction specifying the correct amount,</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-56-3"><num>(3)</num><content><p>Where on an appeal under section 55 above it is found that the whole or part of any amount paid or deposited in pursuance of section 55(3) above is not due, so much of that amount as is found not to be due shall be repaid with interest at such rate as the tribunal may determine.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-56-4"><num>(4)</num><content><p>Where on an appeal under section 55 above it is found that the whole or part of any amount due to the appellant by virtue of regulations under section 51(2)(c) or (d) or (f) above has not been paid, so much of that amount as is found not to have been paid shall be paid with interest at such rate as the tribunal may determine.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-56-5"><num>(5)</num><content><p>Where an appeal under section 55 above has been entertained notwithstanding that an amount determined by the Commissioners to be payable as tax has not been paid or deposited and it is found on the appeal that that amount is due the tribunal may, if it thinks fit, direct that that amount shall be paid with interest at such rate as may be specified in the direction.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-56-6"><num>(6)</num><content><p>Without prejudice to paragraph 25 of Schedule 5 to this Act, nothing in section 55 above shall be taken to confer on a tribunal any power to vary an amount assessed by way of penalty except in so far as it is necessary to reduce it to the amount which is appropriate under paragraphs 18 to 24 of that Schedule.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-56-7"><num>(7)</num><content><p>Without prejudice to paragraph 28 of Schedule 5 to this Act, nothing in section 55 above shall be taken to confer on a tribunal any power to vary an amount assessed by way of interest except in so far as it is necessary to reduce it to the amount which is appropriate under paragraph 26 or 27 of that Schedule.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-56-8"><num>(8)</num><intro><p>Sections 85 and 87 of the <noteRef href="#m00047" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Value Added Tax Act 1994 (settling of appeals by agreement and enforcement of certain decisions of tribunal) shall have effect as if—</p></intro><level class="para1" eId="section-56-8-a"><num>(a)</num><content><p>the references to section 83 of that Act included references to section 55 above, and</p></content></level><level class="para1" eId="section-56-8-b"><num>(b)</num><content><p>the references to value added tax included references to landfill tax.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-56-8-a"><num>(a)</num><content><p>the references to section 83 of that Act included references to section 55 above, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-56-8-b"><num>(b)</num><content><p>the references to value added tax included references to landfill tax.</p></content></level>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-57"><num>57</num><heading>Review and appeal: commencement</heading><intro><p>Sections 54 to 56 above shall come into force on—</p></intro><level class="para1" eId="section-57-a"><num>(a)</num><content><p>1st October 1996, or</p></content></level><level class="para1" eId="section-57-b"><num>(b)</num><content><p>such earlier day as may be appointed by order.</p></content></level></section>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-57-a"><num>(a)</num><content><p>1st October 1996, or</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-57-b"><num>(b)</num><content><p>such earlier day as may be appointed by order.</p></content></level>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="part-III-crossheading-miscellaneous"><heading>Miscellaneous</heading><section eId="section-58"><num>58</num><heading>Partnership, bankruptcy, transfer of business, etc</heading><subsection eId="section-58-1"><num>(1)</num><content><p>As regards any case where a business is carried on in partnership or by another unincorporated body, regulations may make provision for determining by what persons anything required by this Part to be done by a person is to be done.</p></content></subsection><subsection eId="section-58-2"><num>(2)</num><content><p>The registration under this Part of an unincorporated body other than a partnership may be in the name of the body concerned; and in determining whether taxable activities are carried out by such a body no account shall be taken of any change in its members.</p></content></subsection><subsection eId="section-58-3"><num>(3)</num><content><p>The registration under this Part of a body corporate carrying on a business in several divisions may, if the body corporate so requests and the Commissioners see fit, be in the names of those divisions.</p></content></subsection><subsection eId="section-58-4"><num>(4)</num><intro><p>As regards any case where a person carries on a business of a person who has died or become bankrupt or incapacitated or whose estate has been sequestrated, or of a person which is in liquidation or receivership or in relation to which an administration order is in force, regulations may—</p></intro><level class="para1" eId="section-58-4-a"><num>(a)</num><content><p>require the first-mentioned person to inform the Commissioners of the fact that he is carrying on the business and of the event that has led to his carrying it on;</p></content></level><level class="para1" eId="section-58-4-b"><num>(b)</num><content><p>make provision allowing the person to be treated for a limited time as if he were the other person;</p></content></level><level class="para1" eId="section-58-4-c"><num>(c)</num><content><p>make provision for securing continuity in the application of this Part where a person is so treated.</p></content></level></subsection><subsection eId="section-58-5"><num>(5)</num><content><p>Regulations may make provision for securing continuity in the application of this Part in cases where a business carried on by a person is transferred to another person as a going concern.</p></content></subsection><subsection eId="section-58-6"><num>(6)</num><intro><p>Regulations under subsection (5) above may in particular—</p></intro><level class="para1" eId="section-58-6-a"><num>(a)</num><content><p>require the transferor to inform the Commissioners of the transfer;</p></content></level><level class="para1" eId="section-58-6-b"><num>(b)</num><content><p>provide for liabilities and duties under this Part of the transferor to become, to such extent as may be provided by the regulations, liabilities and duties of the transferee;</p></content></level><level class="para1" eId="section-58-6-c"><num>(c)</num><content><p>provide for any right of either of them to repayment or credit in respect of tax to be satisfied by making a repayment or allowing a credit to the other;</p></content></level><wrapUp><p>but the regulations may provide that no such provision as is mentioned in paragraph (b) or (c) of this subsection shall have effect in relation to any transferor and transferee unless an application in that behalf has been made by them under the regulations.</p></wrapUp></subsection></section><section eId="section-59"><num>59</num><heading>Groups of companies</heading><subsection eId="section-59-1"><num>(1)</num><intro><p>Where under the following provisions of this section any bodies corporate are treated as members of a group, for the purposes of this Part—</p></intro><level class="para1" eId="section-59-1-a"><num>(a)</num><content><p>any liability of a member of the group to pay tax shall be taken to be a liability of the representative member;</p></content></level><level class="para1" eId="section-59-1-b"><num>(b)</num><content><p>the representative member shall be taken to carry out any taxable activities which a member of the group would carry out (apart from this section) by virtue of section 69 below;</p></content></level><level class="para1" eId="section-59-1-c"><num>(c)</num><content><p>all members of the group shall be jointly and severally liable for any tax due from the representative member.</p></content></level></subsection><subsection eId="section-59-2"><num>(2)</num><intro><p>Two or more bodies corporate are eligible to be treated as members of a group if the condition mentioned in subsection (3) below is fulfilled and—</p></intro><level class="para1" eId="section-59-2-a"><num>(a)</num><content><p>one of them controls each of the others,</p></content></level><level class="para1" eId="section-59-2-b"><num>(b)</num><content><p>one person (whether a body corporate or an individual) controls all of them, or</p></content></level><level class="para1" eId="section-59-2-c"><num>(c)</num><content><p>two or more individuals carrying on a business in partnership control all of them.</p></content></level></subsection><subsection eId="section-59-3"><num>(3)</num><content><p>The condition is that the prospective representative member has an established place of business in the United Kingdom.</p></content></subsection><subsection eId="section-59-4"><num>(4)</num><intro><p>Where an application to that effect is made to the Commissioners with respect to two or more bodies corporate eligible to be treated as members of a group, then—</p></intro><level class="para1" eId="section-59-4-a"><num>(a)</num><content><p>from the beginning of an accounting period they shall be so treated, and</p></content></level><level class="para1" eId="section-59-4-b"><num>(b)</num><content><p>one of them shall be the representative member,</p></content></level><wrapUp><p>unless the Commissioners refuse the application; and the Commissioners shall not refuse the application unless it appears to them necessary to do so for the protection of the revenue.</p></wrapUp></subsection><subsection eId="section-59-5"><num>(5)</num><intro><p>Where any bodies corporate are treated as members of a group and an application to that effect is made to the Commissioners, then, from the beginning of an accounting period—</p></intro><level class="para1" eId="section-59-5-a"><num>(a)</num><content><p>a further body eligible to be so treated shall be included among the bodies so treated,</p></content></level><level class="para1" eId="section-59-5-b"><num>(b)</num><content><p>a body corporate shall be excluded from the bodies so treated,</p></content></level><level class="para1" eId="section-59-5-c"><num>(c)</num><content><p>another member of the group shall be substituted as the representative member, or</p></content></level><level class="para1" eId="section-59-5-d"><num>(d)</num><content><p>the bodies corporate shall no longer be treated as members of a group,</p></content></level><wrapUp><p>unless the application is to the effect mentioned in paragraph (a) or (c) above and the Commissioners refuse the application.</p></wrapUp></subsection><subsection eId="section-59-6"><num>(6)</num><content><p>The Commissioners may refuse an application under subsection (5)(a) or (c) above only if it appears to them necessary to do so for the protection of the revenue.</p></content></subsection><subsection eId="section-59-7"><num>(7)</num><content><p>Where a body corporate is treated as a member of a group as being controlled by any person and it appears to the Commissioners that it has ceased to be so controlled, they shall, by notice given to that person, terminate that treatment from such date as may be specified in the notice.</p></content></subsection><subsection eId="section-59-8"><num>(8)</num><content><p>An application under this section with respect to any bodies corporate must be made by one of those bodies or by the person controlling them and must be made not less than 90 days before the date from which it is to take effect, or at such later time as the Commissioners may allow.</p></content></subsection><subsection eId="section-59-9"><num>(9)</num><content><p>For the purposes of this section a body corporate shall be taken to control another body corporate if it is empowered by statute to control that body’s activities or if it is that body’s holding company within the meaning of section 736 of the <noteRef href="#m00048" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Companies Act 1985; and an individual or individuals shall be taken to control a body corporate if he or they, were he or they a company, would be that body’s holding company within the meaning of that section.</p></content></subsection></section><section eId="section-60"><num>60</num><heading>Information, powers, penalties, etc</heading><content><p>Schedule 5 to this Act (which contains provisions relating to information, powers, penalties and other matters) shall have effect.</p></content></section><section eId="section-61"><num>61</num><heading>Taxable disposals: special provisions</heading><subsection eId="section-61-1"><num>(1)</num><intro><p>Where—</p></intro><level class="para1" eId="section-61-1-a"><num>(a)</num><content><p>a taxable disposal is in fact made on a particular day,</p></content></level><level class="para1" eId="section-61-1-b"><num>(b)</num><content><p>within the period of 14 days beginning with that day the person liable to pay tax in respect of the disposal issues a landfill invoice in respect of the disposal, and</p></content></level><level class="para1" eId="section-61-1-c"><num>(c)</num><content><p>he has not notified the Commissioners in writing that he elects not to avail himself of this subsection,</p></content></level><wrapUp><p>for the purposes of this Part the disposal shall be treated as made at the time the invoice is issued.</p></wrapUp></subsection><subsection eId="section-61-2"><num>(2)</num><content><p>The reference in subsection (1) above to a landfill invoice is to a document containing such particulars as regulations may prescribe for the purposes of that subsection.</p></content></subsection><subsection eId="section-61-3"><num>(3)</num><intro><p>The Commissioners may at the request of a person direct that subsection (1) above shall apply—</p></intro><level class="para1" eId="section-61-3-a"><num>(a)</num><content><p>in relation to disposals in respect of which he is liable to pay tax, or</p></content></level><level class="para1" eId="section-61-3-b"><num>(b)</num><content><p>in relation to such of them as may be specified in the direction,</p></content></level><wrapUp><p>as if for the period of 14 days there were substituted such longer period as may be specified in the direction.</p></wrapUp></subsection></section><section eId="section-62"><num>62</num><heading>Taxable disposals: regulations</heading><subsection eId="section-62-1"><num>(1)</num><content><p>For the purposes of this Part, regulations may make provision under this section in relation to a disposal which is a taxable disposal (or would be apart from the regulations).</p></content></subsection><subsection eId="section-62-2"><num>(2)</num><intro><p>The regulations may provide that if particular conditions are fulfilled—</p></intro><level class="para1" eId="section-62-2-a"><num>(a)</num><content><p>the disposal shall be treated as not being a taxable disposal, or</p></content></level><level class="para1" eId="section-62-2-b"><num>(b)</num><content><p>the disposal shall, to the extent found in accordance with prescribed rules, be treated as not being a taxable disposal.</p></content></level></subsection><subsection eId="section-62-3"><num>(3)</num><intro><p>The regulations may provide that if particular conditions are fulfilled—</p></intro><level class="para1" eId="section-62-3-a"><num>(a)</num><content><p>the disposal shall be treated as made at a time which is found in accordance with prescribed rules and which falls after the time when it would be regarded as made apart from the regulations, or</p></content></level><level class="para1" eId="section-62-3-b"><num>(b)</num><content><p>the disposal shall, to the extent found in accordance with prescribed rules, be treated as made at a time which is found in accordance with prescribed rules and which falls after the time when it would be regarded as made apart from the regulations.</p></content></level></subsection><subsection eId="section-62-4"><num>(4)</num><content><p>In finding the time when the disposal would be regarded as made apart from the regulations, section 61(1) above and any direction under section 61(3) above shall be taken into account.</p></content></subsection><subsection eId="section-62-5"><num>(5)</num><intro><p>The regulations may be framed by reference to—</p></intro><level class="para1" eId="section-62-5-a"><num>(a)</num><content><p>conditions specified in the regulations or by the Commissioners or by an authorised person, or</p></content></level><level class="para1" eId="section-62-5-b"><num>(b)</num><content><p>any combination of such conditions;</p></content></level><wrapUp><p>and the regulations may specify conditions, or allow conditions to be specified, generally or with regard to particular cases.</p></wrapUp></subsection><subsection eId="section-62-6"><num>(6)</num><content><p>The regulations may make provision under subsections (2)(b) and (3)(b) above in relation to the same disposal.</p></content></subsection><subsection eId="section-62-7"><num>(7)</num><intro><p>The regulations may only provide that a disposal is to be treated as not being a taxable disposal if or to the extent that—</p></intro><level class="para1" eId="section-62-7-a"><num>(a)</num><content><p>the disposal is a temporary one pending the incineration or recycling of the material concerned, or pending the removal of the material for use elsewhere, or pending the sorting of the material with a view to its removal elsewhere or its eventual disposal, and</p></content></level><level class="para1" eId="section-62-7-b"><num>(b)</num><content><p>the temporary disposal is made in an area designated for the purpose by an authorised person.</p></content></level></subsection></section><section eId="section-63"><num>63</num><heading>Qualifying material: special provisions</heading><subsection eId="section-63-1"><num>(1)</num><content><p>This section applies for the purposes of section 42 above.</p></content></subsection><subsection eId="section-63-2"><num>(2)</num><content><p>The Commissioners may direct that where material is disposed of it must be treated as qualifying material if it would in fact be such material but for a small quantity of non-qualifying material; and whether a quantity of non-qualifying material is small must be determined in accordance with the terms of the direction.</p></content></subsection><subsection eId="section-63-3"><num>(3)</num><intro><p>The Commissioners may at the request of a person direct that where there is a disposal in respect of which he is liable to pay tax the material disposed of must be treated as qualifying material if it would in fact be such material but for a small quantity of non-qualifying material, and—</p></intro><level class="para1" eId="section-63-3-a"><num>(a)</num><content><p>a direction may apply to all disposals in respect of which a person is liable to pay tax or to such of them as are identified in the direction;</p></content></level><level class="para1" eId="section-63-3-b"><num>(b)</num><content><p>whether a quantity of non-qualifying material is small must be determined in accordance with the terms of the direction.</p></content></level></subsection><subsection eId="section-63-4"><num>(4)</num><content><p>If a direction under subsection (3) above applies to a disposal any direction under subsection (2) above shall not apply to it.</p></content></subsection><subsection eId="section-63-5"><num>(5)</num><content><p>An order may provide that material must not be treated as qualifying material unless prescribed conditions are met.</p></content></subsection><subsection eId="section-63-6"><num>(6)</num><content><p>A condition may relate to any matter the Treasury think fit (such as the production of a document which includes a statement of the nature of the material).</p></content></subsection></section></hcontainer>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-58"><num>58</num><heading>Partnership, bankruptcy, transfer of business, etc</heading><subsection eId="section-58-1"><num>(1)</num><content><p>As regards any case where a business is carried on in partnership or by another unincorporated body, regulations may make provision for determining by what persons anything required by this Part to be done by a person is to be done.</p></content></subsection><subsection eId="section-58-2"><num>(2)</num><content><p>The registration under this Part of an unincorporated body other than a partnership may be in the name of the body concerned; and in determining whether taxable activities are carried out by such a body no account shall be taken of any change in its members.</p></content></subsection><subsection eId="section-58-3"><num>(3)</num><content><p>The registration under this Part of a body corporate carrying on a business in several divisions may, if the body corporate so requests and the Commissioners see fit, be in the names of those divisions.</p></content></subsection><subsection eId="section-58-4"><num>(4)</num><intro><p>As regards any case where a person carries on a business of a person who has died or become bankrupt or incapacitated or whose estate has been sequestrated, or of a person which is in liquidation or receivership or in relation to which an administration order is in force, regulations may—</p></intro><level class="para1" eId="section-58-4-a"><num>(a)</num><content><p>require the first-mentioned person to inform the Commissioners of the fact that he is carrying on the business and of the event that has led to his carrying it on;</p></content></level><level class="para1" eId="section-58-4-b"><num>(b)</num><content><p>make provision allowing the person to be treated for a limited time as if he were the other person;</p></content></level><level class="para1" eId="section-58-4-c"><num>(c)</num><content><p>make provision for securing continuity in the application of this Part where a person is so treated.</p></content></level></subsection><subsection eId="section-58-5"><num>(5)</num><content><p>Regulations may make provision for securing continuity in the application of this Part in cases where a business carried on by a person is transferred to another person as a going concern.</p></content></subsection><subsection eId="section-58-6"><num>(6)</num><intro><p>Regulations under subsection (5) above may in particular—</p></intro><level class="para1" eId="section-58-6-a"><num>(a)</num><content><p>require the transferor to inform the Commissioners of the transfer;</p></content></level><level class="para1" eId="section-58-6-b"><num>(b)</num><content><p>provide for liabilities and duties under this Part of the transferor to become, to such extent as may be provided by the regulations, liabilities and duties of the transferee;</p></content></level><level class="para1" eId="section-58-6-c"><num>(c)</num><content><p>provide for any right of either of them to repayment or credit in respect of tax to be satisfied by making a repayment or allowing a credit to the other;</p></content></level><wrapUp><p>but the regulations may provide that no such provision as is mentioned in paragraph (b) or (c) of this subsection shall have effect in relation to any transferor and transferee unless an application in that behalf has been made by them under the regulations.</p></wrapUp></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-58-1"><num>(1)</num><content><p>As regards any case where a business is carried on in partnership or by another unincorporated body, regulations may make provision for determining by what persons anything required by this Part to be done by a person is to be done.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-58-2"><num>(2)</num><content><p>The registration under this Part of an unincorporated body other than a partnership may be in the name of the body concerned; and in determining whether taxable activities are carried out by such a body no account shall be taken of any change in its members.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-58-3"><num>(3)</num><content><p>The registration under this Part of a body corporate carrying on a business in several divisions may, if the body corporate so requests and the Commissioners see fit, be in the names of those divisions.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-58-4"><num>(4)</num><intro><p>As regards any case where a person carries on a business of a person who has died or become bankrupt or incapacitated or whose estate has been sequestrated, or of a person which is in liquidation or receivership or in relation to which an administration order is in force, regulations may—</p></intro><level class="para1" eId="section-58-4-a"><num>(a)</num><content><p>require the first-mentioned person to inform the Commissioners of the fact that he is carrying on the business and of the event that has led to his carrying it on;</p></content></level><level class="para1" eId="section-58-4-b"><num>(b)</num><content><p>make provision allowing the person to be treated for a limited time as if he were the other person;</p></content></level><level class="para1" eId="section-58-4-c"><num>(c)</num><content><p>make provision for securing continuity in the application of this Part where a person is so treated.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-58-4-a"><num>(a)</num><content><p>require the first-mentioned person to inform the Commissioners of the fact that he is carrying on the business and of the event that has led to his carrying it on;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-58-4-b"><num>(b)</num><content><p>make provision allowing the person to be treated for a limited time as if he were the other person;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-58-4-c"><num>(c)</num><content><p>make provision for securing continuity in the application of this Part where a person is so treated.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-58-5"><num>(5)</num><content><p>Regulations may make provision for securing continuity in the application of this Part in cases where a business carried on by a person is transferred to another person as a going concern.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-58-6"><num>(6)</num><intro><p>Regulations under subsection (5) above may in particular—</p></intro><level class="para1" eId="section-58-6-a"><num>(a)</num><content><p>require the transferor to inform the Commissioners of the transfer;</p></content></level><level class="para1" eId="section-58-6-b"><num>(b)</num><content><p>provide for liabilities and duties under this Part of the transferor to become, to such extent as may be provided by the regulations, liabilities and duties of the transferee;</p></content></level><level class="para1" eId="section-58-6-c"><num>(c)</num><content><p>provide for any right of either of them to repayment or credit in respect of tax to be satisfied by making a repayment or allowing a credit to the other;</p></content></level><wrapUp><p>but the regulations may provide that no such provision as is mentioned in paragraph (b) or (c) of this subsection shall have effect in relation to any transferor and transferee unless an application in that behalf has been made by them under the regulations.</p></wrapUp></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-58-6-a"><num>(a)</num><content><p>require the transferor to inform the Commissioners of the transfer;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-58-6-b"><num>(b)</num><content><p>provide for liabilities and duties under this Part of the transferor to become, to such extent as may be provided by the regulations, liabilities and duties of the transferee;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-58-6-c"><num>(c)</num><content><p>provide for any right of either of them to repayment or credit in respect of tax to be satisfied by making a repayment or allowing a credit to the other;</p></content></level>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-59"><num>59</num><heading>Groups of companies</heading><subsection eId="section-59-1"><num>(1)</num><intro><p>Where under the following provisions of this section any bodies corporate are treated as members of a group, for the purposes of this Part—</p></intro><level class="para1" eId="section-59-1-a"><num>(a)</num><content><p>any liability of a member of the group to pay tax shall be taken to be a liability of the representative member;</p></content></level><level class="para1" eId="section-59-1-b"><num>(b)</num><content><p>the representative member shall be taken to carry out any taxable activities which a member of the group would carry out (apart from this section) by virtue of section 69 below;</p></content></level><level class="para1" eId="section-59-1-c"><num>(c)</num><content><p>all members of the group shall be jointly and severally liable for any tax due from the representative member.</p></content></level></subsection><subsection eId="section-59-2"><num>(2)</num><intro><p>Two or more bodies corporate are eligible to be treated as members of a group if the condition mentioned in subsection (3) below is fulfilled and—</p></intro><level class="para1" eId="section-59-2-a"><num>(a)</num><content><p>one of them controls each of the others,</p></content></level><level class="para1" eId="section-59-2-b"><num>(b)</num><content><p>one person (whether a body corporate or an individual) controls all of them, or</p></content></level><level class="para1" eId="section-59-2-c"><num>(c)</num><content><p>two or more individuals carrying on a business in partnership control all of them.</p></content></level></subsection><subsection eId="section-59-3"><num>(3)</num><content><p>The condition is that the prospective representative member has an established place of business in the United Kingdom.</p></content></subsection><subsection eId="section-59-4"><num>(4)</num><intro><p>Where an application to that effect is made to the Commissioners with respect to two or more bodies corporate eligible to be treated as members of a group, then—</p></intro><level class="para1" eId="section-59-4-a"><num>(a)</num><content><p>from the beginning of an accounting period they shall be so treated, and</p></content></level><level class="para1" eId="section-59-4-b"><num>(b)</num><content><p>one of them shall be the representative member,</p></content></level><wrapUp><p>unless the Commissioners refuse the application; and the Commissioners shall not refuse the application unless it appears to them necessary to do so for the protection of the revenue.</p></wrapUp></subsection><subsection eId="section-59-5"><num>(5)</num><intro><p>Where any bodies corporate are treated as members of a group and an application to that effect is made to the Commissioners, then, from the beginning of an accounting period—</p></intro><level class="para1" eId="section-59-5-a"><num>(a)</num><content><p>a further body eligible to be so treated shall be included among the bodies so treated,</p></content></level><level class="para1" eId="section-59-5-b"><num>(b)</num><content><p>a body corporate shall be excluded from the bodies so treated,</p></content></level><level class="para1" eId="section-59-5-c"><num>(c)</num><content><p>another member of the group shall be substituted as the representative member, or</p></content></level><level class="para1" eId="section-59-5-d"><num>(d)</num><content><p>the bodies corporate shall no longer be treated as members of a group,</p></content></level><wrapUp><p>unless the application is to the effect mentioned in paragraph (a) or (c) above and the Commissioners refuse the application.</p></wrapUp></subsection><subsection eId="section-59-6"><num>(6)</num><content><p>The Commissioners may refuse an application under subsection (5)(a) or (c) above only if it appears to them necessary to do so for the protection of the revenue.</p></content></subsection><subsection eId="section-59-7"><num>(7)</num><content><p>Where a body corporate is treated as a member of a group as being controlled by any person and it appears to the Commissioners that it has ceased to be so controlled, they shall, by notice given to that person, terminate that treatment from such date as may be specified in the notice.</p></content></subsection><subsection eId="section-59-8"><num>(8)</num><content><p>An application under this section with respect to any bodies corporate must be made by one of those bodies or by the person controlling them and must be made not less than 90 days before the date from which it is to take effect, or at such later time as the Commissioners may allow.</p></content></subsection><subsection eId="section-59-9"><num>(9)</num><content><p>For the purposes of this section a body corporate shall be taken to control another body corporate if it is empowered by statute to control that body’s activities or if it is that body’s holding company within the meaning of section 736 of the <noteRef href="#m00048" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Companies Act 1985; and an individual or individuals shall be taken to control a body corporate if he or they, were he or they a company, would be that body’s holding company within the meaning of that section.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-59-1"><num>(1)</num><intro><p>Where under the following provisions of this section any bodies corporate are treated as members of a group, for the purposes of this Part—</p></intro><level class="para1" eId="section-59-1-a"><num>(a)</num><content><p>any liability of a member of the group to pay tax shall be taken to be a liability of the representative member;</p></content></level><level class="para1" eId="section-59-1-b"><num>(b)</num><content><p>the representative member shall be taken to carry out any taxable activities which a member of the group would carry out (apart from this section) by virtue of section 69 below;</p></content></level><level class="para1" eId="section-59-1-c"><num>(c)</num><content><p>all members of the group shall be jointly and severally liable for any tax due from the representative member.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-59-1-a"><num>(a)</num><content><p>any liability of a member of the group to pay tax shall be taken to be a liability of the representative member;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-59-1-b"><num>(b)</num><content><p>the representative member shall be taken to carry out any taxable activities which a member of the group would carry out (apart from this section) by virtue of section 69 below;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-59-1-c"><num>(c)</num><content><p>all members of the group shall be jointly and severally liable for any tax due from the representative member.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-59-2"><num>(2)</num><intro><p>Two or more bodies corporate are eligible to be treated as members of a group if the condition mentioned in subsection (3) below is fulfilled and—</p></intro><level class="para1" eId="section-59-2-a"><num>(a)</num><content><p>one of them controls each of the others,</p></content></level><level class="para1" eId="section-59-2-b"><num>(b)</num><content><p>one person (whether a body corporate or an individual) controls all of them, or</p></content></level><level class="para1" eId="section-59-2-c"><num>(c)</num><content><p>two or more individuals carrying on a business in partnership control all of them.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-59-2-a"><num>(a)</num><content><p>one of them controls each of the others,</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-59-2-b"><num>(b)</num><content><p>one person (whether a body corporate or an individual) controls all of them, or</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-59-2-c"><num>(c)</num><content><p>two or more individuals carrying on a business in partnership control all of them.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-59-3"><num>(3)</num><content><p>The condition is that the prospective representative member has an established place of business in the United Kingdom.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-59-4"><num>(4)</num><intro><p>Where an application to that effect is made to the Commissioners with respect to two or more bodies corporate eligible to be treated as members of a group, then—</p></intro><level class="para1" eId="section-59-4-a"><num>(a)</num><content><p>from the beginning of an accounting period they shall be so treated, and</p></content></level><level class="para1" eId="section-59-4-b"><num>(b)</num><content><p>one of them shall be the representative member,</p></content></level><wrapUp><p>unless the Commissioners refuse the application; and the Commissioners shall not refuse the application unless it appears to them necessary to do so for the protection of the revenue.</p></wrapUp></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-59-4-a"><num>(a)</num><content><p>from the beginning of an accounting period they shall be so treated, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-59-4-b"><num>(b)</num><content><p>one of them shall be the representative member,</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-59-5"><num>(5)</num><intro><p>Where any bodies corporate are treated as members of a group and an application to that effect is made to the Commissioners, then, from the beginning of an accounting period—</p></intro><level class="para1" eId="section-59-5-a"><num>(a)</num><content><p>a further body eligible to be so treated shall be included among the bodies so treated,</p></content></level><level class="para1" eId="section-59-5-b"><num>(b)</num><content><p>a body corporate shall be excluded from the bodies so treated,</p></content></level><level class="para1" eId="section-59-5-c"><num>(c)</num><content><p>another member of the group shall be substituted as the representative member, or</p></content></level><level class="para1" eId="section-59-5-d"><num>(d)</num><content><p>the bodies corporate shall no longer be treated as members of a group,</p></content></level><wrapUp><p>unless the application is to the effect mentioned in paragraph (a) or (c) above and the Commissioners refuse the application.</p></wrapUp></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-59-5-a"><num>(a)</num><content><p>a further body eligible to be so treated shall be included among the bodies so treated,</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-59-5-b"><num>(b)</num><content><p>a body corporate shall be excluded from the bodies so treated,</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-59-5-c"><num>(c)</num><content><p>another member of the group shall be substituted as the representative member, or</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-59-5-d"><num>(d)</num><content><p>the bodies corporate shall no longer be treated as members of a group,</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-59-6"><num>(6)</num><content><p>The Commissioners may refuse an application under subsection (5)(a) or (c) above only if it appears to them necessary to do so for the protection of the revenue.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-59-7"><num>(7)</num><content><p>Where a body corporate is treated as a member of a group as being controlled by any person and it appears to the Commissioners that it has ceased to be so controlled, they shall, by notice given to that person, terminate that treatment from such date as may be specified in the notice.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-59-8"><num>(8)</num><content><p>An application under this section with respect to any bodies corporate must be made by one of those bodies or by the person controlling them and must be made not less than 90 days before the date from which it is to take effect, or at such later time as the Commissioners may allow.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-59-9"><num>(9)</num><content><p>For the purposes of this section a body corporate shall be taken to control another body corporate if it is empowered by statute to control that body’s activities or if it is that body’s holding company within the meaning of section 736 of the <noteRef href="#m00048" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Companies Act 1985; and an individual or individuals shall be taken to control a body corporate if he or they, were he or they a company, would be that body’s holding company within the meaning of that section.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-60"><num>60</num><heading>Information, powers, penalties, etc</heading><content><p>Schedule 5 to this Act (which contains provisions relating to information, powers, penalties and other matters) shall have effect.</p></content></section>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-61"><num>61</num><heading>Taxable disposals: special provisions</heading><subsection eId="section-61-1"><num>(1)</num><intro><p>Where—</p></intro><level class="para1" eId="section-61-1-a"><num>(a)</num><content><p>a taxable disposal is in fact made on a particular day,</p></content></level><level class="para1" eId="section-61-1-b"><num>(b)</num><content><p>within the period of 14 days beginning with that day the person liable to pay tax in respect of the disposal issues a landfill invoice in respect of the disposal, and</p></content></level><level class="para1" eId="section-61-1-c"><num>(c)</num><content><p>he has not notified the Commissioners in writing that he elects not to avail himself of this subsection,</p></content></level><wrapUp><p>for the purposes of this Part the disposal shall be treated as made at the time the invoice is issued.</p></wrapUp></subsection><subsection eId="section-61-2"><num>(2)</num><content><p>The reference in subsection (1) above to a landfill invoice is to a document containing such particulars as regulations may prescribe for the purposes of that subsection.</p></content></subsection><subsection eId="section-61-3"><num>(3)</num><intro><p>The Commissioners may at the request of a person direct that subsection (1) above shall apply—</p></intro><level class="para1" eId="section-61-3-a"><num>(a)</num><content><p>in relation to disposals in respect of which he is liable to pay tax, or</p></content></level><level class="para1" eId="section-61-3-b"><num>(b)</num><content><p>in relation to such of them as may be specified in the direction,</p></content></level><wrapUp><p>as if for the period of 14 days there were substituted such longer period as may be specified in the direction.</p></wrapUp></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-61-1"><num>(1)</num><intro><p>Where—</p></intro><level class="para1" eId="section-61-1-a"><num>(a)</num><content><p>a taxable disposal is in fact made on a particular day,</p></content></level><level class="para1" eId="section-61-1-b"><num>(b)</num><content><p>within the period of 14 days beginning with that day the person liable to pay tax in respect of the disposal issues a landfill invoice in respect of the disposal, and</p></content></level><level class="para1" eId="section-61-1-c"><num>(c)</num><content><p>he has not notified the Commissioners in writing that he elects not to avail himself of this subsection,</p></content></level><wrapUp><p>for the purposes of this Part the disposal shall be treated as made at the time the invoice is issued.</p></wrapUp></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-61-1-a"><num>(a)</num><content><p>a taxable disposal is in fact made on a particular day,</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-61-1-b"><num>(b)</num><content><p>within the period of 14 days beginning with that day the person liable to pay tax in respect of the disposal issues a landfill invoice in respect of the disposal, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-61-1-c"><num>(c)</num><content><p>he has not notified the Commissioners in writing that he elects not to avail himself of this subsection,</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-61-2"><num>(2)</num><content><p>The reference in subsection (1) above to a landfill invoice is to a document containing such particulars as regulations may prescribe for the purposes of that subsection.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-61-3"><num>(3)</num><intro><p>The Commissioners may at the request of a person direct that subsection (1) above shall apply—</p></intro><level class="para1" eId="section-61-3-a"><num>(a)</num><content><p>in relation to disposals in respect of which he is liable to pay tax, or</p></content></level><level class="para1" eId="section-61-3-b"><num>(b)</num><content><p>in relation to such of them as may be specified in the direction,</p></content></level><wrapUp><p>as if for the period of 14 days there were substituted such longer period as may be specified in the direction.</p></wrapUp></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-61-3-a"><num>(a)</num><content><p>in relation to disposals in respect of which he is liable to pay tax, or</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-61-3-b"><num>(b)</num><content><p>in relation to such of them as may be specified in the direction,</p></content></level>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-62"><num>62</num><heading>Taxable disposals: regulations</heading><subsection eId="section-62-1"><num>(1)</num><content><p>For the purposes of this Part, regulations may make provision under this section in relation to a disposal which is a taxable disposal (or would be apart from the regulations).</p></content></subsection><subsection eId="section-62-2"><num>(2)</num><intro><p>The regulations may provide that if particular conditions are fulfilled—</p></intro><level class="para1" eId="section-62-2-a"><num>(a)</num><content><p>the disposal shall be treated as not being a taxable disposal, or</p></content></level><level class="para1" eId="section-62-2-b"><num>(b)</num><content><p>the disposal shall, to the extent found in accordance with prescribed rules, be treated as not being a taxable disposal.</p></content></level></subsection><subsection eId="section-62-3"><num>(3)</num><intro><p>The regulations may provide that if particular conditions are fulfilled—</p></intro><level class="para1" eId="section-62-3-a"><num>(a)</num><content><p>the disposal shall be treated as made at a time which is found in accordance with prescribed rules and which falls after the time when it would be regarded as made apart from the regulations, or</p></content></level><level class="para1" eId="section-62-3-b"><num>(b)</num><content><p>the disposal shall, to the extent found in accordance with prescribed rules, be treated as made at a time which is found in accordance with prescribed rules and which falls after the time when it would be regarded as made apart from the regulations.</p></content></level></subsection><subsection eId="section-62-4"><num>(4)</num><content><p>In finding the time when the disposal would be regarded as made apart from the regulations, section 61(1) above and any direction under section 61(3) above shall be taken into account.</p></content></subsection><subsection eId="section-62-5"><num>(5)</num><intro><p>The regulations may be framed by reference to—</p></intro><level class="para1" eId="section-62-5-a"><num>(a)</num><content><p>conditions specified in the regulations or by the Commissioners or by an authorised person, or</p></content></level><level class="para1" eId="section-62-5-b"><num>(b)</num><content><p>any combination of such conditions;</p></content></level><wrapUp><p>and the regulations may specify conditions, or allow conditions to be specified, generally or with regard to particular cases.</p></wrapUp></subsection><subsection eId="section-62-6"><num>(6)</num><content><p>The regulations may make provision under subsections (2)(b) and (3)(b) above in relation to the same disposal.</p></content></subsection><subsection eId="section-62-7"><num>(7)</num><intro><p>The regulations may only provide that a disposal is to be treated as not being a taxable disposal if or to the extent that—</p></intro><level class="para1" eId="section-62-7-a"><num>(a)</num><content><p>the disposal is a temporary one pending the incineration or recycling of the material concerned, or pending the removal of the material for use elsewhere, or pending the sorting of the material with a view to its removal elsewhere or its eventual disposal, and</p></content></level><level class="para1" eId="section-62-7-b"><num>(b)</num><content><p>the temporary disposal is made in an area designated for the purpose by an authorised person.</p></content></level></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-62-1"><num>(1)</num><content><p>For the purposes of this Part, regulations may make provision under this section in relation to a disposal which is a taxable disposal (or would be apart from the regulations).</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-62-2"><num>(2)</num><intro><p>The regulations may provide that if particular conditions are fulfilled—</p></intro><level class="para1" eId="section-62-2-a"><num>(a)</num><content><p>the disposal shall be treated as not being a taxable disposal, or</p></content></level><level class="para1" eId="section-62-2-b"><num>(b)</num><content><p>the disposal shall, to the extent found in accordance with prescribed rules, be treated as not being a taxable disposal.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-62-2-a"><num>(a)</num><content><p>the disposal shall be treated as not being a taxable disposal, or</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-62-2-b"><num>(b)</num><content><p>the disposal shall, to the extent found in accordance with prescribed rules, be treated as not being a taxable disposal.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-62-3"><num>(3)</num><intro><p>The regulations may provide that if particular conditions are fulfilled—</p></intro><level class="para1" eId="section-62-3-a"><num>(a)</num><content><p>the disposal shall be treated as made at a time which is found in accordance with prescribed rules and which falls after the time when it would be regarded as made apart from the regulations, or</p></content></level><level class="para1" eId="section-62-3-b"><num>(b)</num><content><p>the disposal shall, to the extent found in accordance with prescribed rules, be treated as made at a time which is found in accordance with prescribed rules and which falls after the time when it would be regarded as made apart from the regulations.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-62-3-a"><num>(a)</num><content><p>the disposal shall be treated as made at a time which is found in accordance with prescribed rules and which falls after the time when it would be regarded as made apart from the regulations, or</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-62-3-b"><num>(b)</num><content><p>the disposal shall, to the extent found in accordance with prescribed rules, be treated as made at a time which is found in accordance with prescribed rules and which falls after the time when it would be regarded as made apart from the regulations.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-62-4"><num>(4)</num><content><p>In finding the time when the disposal would be regarded as made apart from the regulations, section 61(1) above and any direction under section 61(3) above shall be taken into account.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-62-5"><num>(5)</num><intro><p>The regulations may be framed by reference to—</p></intro><level class="para1" eId="section-62-5-a"><num>(a)</num><content><p>conditions specified in the regulations or by the Commissioners or by an authorised person, or</p></content></level><level class="para1" eId="section-62-5-b"><num>(b)</num><content><p>any combination of such conditions;</p></content></level><wrapUp><p>and the regulations may specify conditions, or allow conditions to be specified, generally or with regard to particular cases.</p></wrapUp></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-62-5-a"><num>(a)</num><content><p>conditions specified in the regulations or by the Commissioners or by an authorised person, or</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-62-5-b"><num>(b)</num><content><p>any combination of such conditions;</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-62-6"><num>(6)</num><content><p>The regulations may make provision under subsections (2)(b) and (3)(b) above in relation to the same disposal.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-62-7"><num>(7)</num><intro><p>The regulations may only provide that a disposal is to be treated as not being a taxable disposal if or to the extent that—</p></intro><level class="para1" eId="section-62-7-a"><num>(a)</num><content><p>the disposal is a temporary one pending the incineration or recycling of the material concerned, or pending the removal of the material for use elsewhere, or pending the sorting of the material with a view to its removal elsewhere or its eventual disposal, and</p></content></level><level class="para1" eId="section-62-7-b"><num>(b)</num><content><p>the temporary disposal is made in an area designated for the purpose by an authorised person.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-62-7-a"><num>(a)</num><content><p>the disposal is a temporary one pending the incineration or recycling of the material concerned, or pending the removal of the material for use elsewhere, or pending the sorting of the material with a view to its removal elsewhere or its eventual disposal, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-62-7-b"><num>(b)</num><content><p>the temporary disposal is made in an area designated for the purpose by an authorised person.</p></content></level>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-63"><num>63</num><heading>Qualifying material: special provisions</heading><subsection eId="section-63-1"><num>(1)</num><content><p>This section applies for the purposes of section 42 above.</p></content></subsection><subsection eId="section-63-2"><num>(2)</num><content><p>The Commissioners may direct that where material is disposed of it must be treated as qualifying material if it would in fact be such material but for a small quantity of non-qualifying material; and whether a quantity of non-qualifying material is small must be determined in accordance with the terms of the direction.</p></content></subsection><subsection eId="section-63-3"><num>(3)</num><intro><p>The Commissioners may at the request of a person direct that where there is a disposal in respect of which he is liable to pay tax the material disposed of must be treated as qualifying material if it would in fact be such material but for a small quantity of non-qualifying material, and—</p></intro><level class="para1" eId="section-63-3-a"><num>(a)</num><content><p>a direction may apply to all disposals in respect of which a person is liable to pay tax or to such of them as are identified in the direction;</p></content></level><level class="para1" eId="section-63-3-b"><num>(b)</num><content><p>whether a quantity of non-qualifying material is small must be determined in accordance with the terms of the direction.</p></content></level></subsection><subsection eId="section-63-4"><num>(4)</num><content><p>If a direction under subsection (3) above applies to a disposal any direction under subsection (2) above shall not apply to it.</p></content></subsection><subsection eId="section-63-5"><num>(5)</num><content><p>An order may provide that material must not be treated as qualifying material unless prescribed conditions are met.</p></content></subsection><subsection eId="section-63-6"><num>(6)</num><content><p>A condition may relate to any matter the Treasury think fit (such as the production of a document which includes a statement of the nature of the material).</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-63-1"><num>(1)</num><content><p>This section applies for the purposes of section 42 above.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-63-2"><num>(2)</num><content><p>The Commissioners may direct that where material is disposed of it must be treated as qualifying material if it would in fact be such material but for a small quantity of non-qualifying material; and whether a quantity of non-qualifying material is small must be determined in accordance with the terms of the direction.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-63-3"><num>(3)</num><intro><p>The Commissioners may at the request of a person direct that where there is a disposal in respect of which he is liable to pay tax the material disposed of must be treated as qualifying material if it would in fact be such material but for a small quantity of non-qualifying material, and—</p></intro><level class="para1" eId="section-63-3-a"><num>(a)</num><content><p>a direction may apply to all disposals in respect of which a person is liable to pay tax or to such of them as are identified in the direction;</p></content></level><level class="para1" eId="section-63-3-b"><num>(b)</num><content><p>whether a quantity of non-qualifying material is small must be determined in accordance with the terms of the direction.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-63-3-a"><num>(a)</num><content><p>a direction may apply to all disposals in respect of which a person is liable to pay tax or to such of them as are identified in the direction;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-63-3-b"><num>(b)</num><content><p>whether a quantity of non-qualifying material is small must be determined in accordance with the terms of the direction.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-63-4"><num>(4)</num><content><p>If a direction under subsection (3) above applies to a disposal any direction under subsection (2) above shall not apply to it.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-63-5"><num>(5)</num><content><p>An order may provide that material must not be treated as qualifying material unless prescribed conditions are met.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-63-6"><num>(6)</num><content><p>A condition may relate to any matter the Treasury think fit (such as the production of a document which includes a statement of the nature of the material).</p></content></subsection>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="part-III-crossheading-interpretation"><heading>Interpretation</heading><section eId="section-64"><num>64</num><heading>Disposal of material as waste</heading><subsection eId="section-64-1"><num>(1)</num><content><p>A disposal of material is a disposal of it as waste if the person making the disposal does so with the intention of discarding the material.</p></content></subsection><subsection eId="section-64-2"><num>(2)</num><content><p>The fact that the person making the disposal or any other person could benefit from or make use of the material is irrelevant.</p></content></subsection><subsection eId="section-64-3"><num>(3)</num><content><p>Where a person makes a disposal on behalf of another person, for the purposes of subsections (1) and (2) above the person on whose behalf the disposal is made shall be treated as making the disposal.</p></content></subsection><subsection eId="section-64-4"><num>(4)</num><intro><p>The reference in subsection (3) above to a disposal on behalf of another person includes references to a disposal—</p></intro><level class="para1" eId="section-64-4-a"><num>(a)</num><content><p>at the request of another person;</p></content></level><level class="para1" eId="section-64-4-b"><num>(b)</num><content><p>in pursuance of a contract with another person.</p></content></level></subsection></section><section eId="section-65"><num>65</num><heading>Disposal by way of landfill</heading><subsection eId="section-65-1"><num>(1)</num><intro><p>There is a disposal of material by way of landfill if—</p></intro><level class="para1" eId="section-65-1-a"><num>(a)</num><content><p>it is deposited on the surface of land or on a structure set into the surface, or</p></content></level><level class="para1" eId="section-65-1-b"><num>(b)</num><content><p>it is deposited under the surface of land.</p></content></level></subsection><subsection eId="section-65-2"><num>(2)</num><content><p>Subsection (1) above applies whether or not the material is placed in a container before it is deposited.</p></content></subsection><subsection eId="section-65-3"><num>(3)</num><intro><p>Subsection (1)(b) above applies whether the material—</p></intro><level class="para1" eId="section-65-3-a"><num>(a)</num><content><p>is covered with earth after it is deposited, or</p></content></level><level class="para1" eId="section-65-3-b"><num>(b)</num><content><p>is deposited in a cavity (such as a cavern or mine).</p></content></level></subsection><subsection eId="section-65-4"><num>(4)</num><content><p>If material is deposited on the surface of land (or on a structure set into the surface) with a view to it being covered with earth the disposal must be treated as made when the material is deposited and not when it is covered.</p></content></subsection><subsection eId="section-65-5"><num>(5)</num><content><p>An order may provide that the meaning of the disposal of material by way of landfill (as it applies for the time being) shall be varied.</p></content></subsection><subsection eId="section-65-6"><num>(6)</num><content><p>An order under subsection (5) above may make provision in such way as the Treasury think fit, whether by amending any of subsections (1) to (4) above or otherwise.</p></content></subsection><subsection eId="section-65-7"><num>(7)</num><content><p>In this section “land” includes land covered by water where the land is above the low water mark of ordinary spring tides.</p></content></subsection><subsection eId="section-65-8"><num>(8)</num><content><p>In this section “earth” includes similar matter (such as sand or rocks).</p></content></subsection></section><section eId="section-66"><num>66</num><heading>Landfill sites</heading><intro><p>Land is a landfill site at a given time if at that time—</p></intro><level class="para1" eId="section-66-a"><num>(a)</num><content><p>a licence which is a site licence for the purposes of Part II of the <noteRef href="#m00049" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Environmental Protection Act 1990 (waste on land) is in force in relation to the land and authorises disposals in or on the land,</p></content></level><level class="para1" eId="section-66-b"><num>(b)</num><content><p>a resolution under section 54 of that Act (land occupied by waste disposal authorities in Scotland) is in force in relation to the land and authorises deposits or disposals in or on the land,</p></content></level><level class="para1" eId="section-66-c"><num>(c)</num><content><p>a disposal licence issued under Part II of the <noteRef href="#m00050" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Pollution Control and Local Government (Northern Ireland) Order 1978 (waste on land) is in force in relation to the land and authorises deposits on the land,</p></content></level><level class="para1" eId="section-66-d"><num>(d)</num><content><p>a resolution passed under Article 13 of that Order (land occupied by district councils in Northern Ireland) is in force in relation to the land and relates to deposits on the land, or</p></content></level><level class="para1" eId="section-66-e"><num>(e)</num><content><p>a licence under any provision for the time being having effect in Northern Ireland and corresponding to section 35 of the Environmental Protection Act 1990 (waste management licences) is in force in relation to the land and authorises disposals in or on the land.</p></content></level></section><section eId="section-67"><num>67</num><heading>Operators of landfill sites</heading><intro><p>The operator of a landfill site at a given time is—</p></intro><level class="para1" eId="section-67-a"><num>(a)</num><content><p>the person who is at the time concerned the holder of the licence, where section 66(a) above applies;</p></content></level><level class="para1" eId="section-67-b"><num>(b)</num><content><p>the waste disposal authority which at the time concerned occupies the landfill site, where section 66(b) above applies;</p></content></level><level class="para1" eId="section-67-c"><num>(c)</num><content><p>the person who is at the time concerned the holder of the licence, where section 66(c) above applies;</p></content></level><level class="para1" eId="section-67-d"><num>(d)</num><content><p>the district council which passed the resolution, where section 66(d) above applies;</p></content></level><level class="para1" eId="section-67-e"><num>(e)</num><content><p>the person who is at the time concerned the holder of the licence, where section 66(e) above applies.</p></content></level></section><section eId="section-68"><num>68</num><heading>Weight of material disposed of</heading><subsection eId="section-68-1"><num>(1)</num><content><p>The weight of the material disposed of on a taxable disposal shall be determined in accordance with regulations.</p></content></subsection><subsection eId="section-68-2"><num>(2)</num><intro><p>The regulations may—</p></intro><level class="para1" eId="section-68-2-a"><num>(a)</num><content><p>prescribe rules for determining the weight;</p></content></level><level class="para1" eId="section-68-2-b"><num>(b)</num><content><p>authorise rules for determining the weight to be specified by the Commissioners in a prescribed manner;</p></content></level><level class="para1" eId="section-68-2-c"><num>(c)</num><content><p>authorise rules for determining the weight to be agreed by the person liable to pay the tax and an authorised person.</p></content></level></subsection><subsection eId="section-68-3"><num>(3)</num><intro><p>The regulations may in particular prescribe, or authorise the specification or agreement of, rules about—</p></intro><level class="para1" eId="section-68-3-a"><num>(a)</num><content><p>the method by which the weight is to be determined;</p></content></level><level class="para1" eId="section-68-3-b"><num>(b)</num><content><p>the time by reference to which the weight is to be determined;</p></content></level><level class="para1" eId="section-68-3-c"><num>(c)</num><content><p>the discounting of constituents (such as water).</p></content></level></subsection><subsection eId="section-68-4"><num>(4)</num><intro><p>The regulations may include provision that a specification authorised under subsection (2)(b) above may provide—</p></intro><level class="para1" eId="section-68-4-a"><num>(a)</num><content><p>that it is to have effect only in relation to disposals of such descriptions as may be set out in the specification;</p></content></level><level class="para1" eId="section-68-4-b"><num>(b)</num><content><p>that it is not to have effect in relation to particular disposals unless the Commissioners are satisfied that such conditions as may be set out in the specification are met in relation to the disposals;</p></content></level><wrapUp><p>and the conditions may be framed by reference to such factors as the Commissioners think fit (such as the consent of an authorised person to the specification having effect in relation to disposals).</p></wrapUp></subsection><subsection eId="section-68-5"><num>(5)</num><intro><p>The regulations may include provision that—</p></intro><level class="para1" eId="section-68-5-a"><num>(a)</num><content><p>where rules are agreed as mentioned in subsection (2)(c) above, and</p></content></level><level class="para1" eId="section-68-5-b"><num>(b)</num><content><p>the Commissioners believe that they should no longer be applied because they do not give an accurate indication of the weight or they are not being fully observed or for some other reason,</p></content></level><wrapUp><p>the Commissioners may direct that the agreed rules shall no longer have effect.</p></wrapUp></subsection><subsection eId="section-68-6"><num>(6)</num><intro><p>The regulations shall be so framed that where in relation to a given disposal—</p></intro><level class="para1" eId="section-68-6-a"><num>(a)</num><content><p>no specification of the Commissioners has effect, and</p></content></level><level class="para1" eId="section-68-6-b"><num>(b)</num><content><p>no agreed rules have effect,</p></content></level><wrapUp><p>the weight shall be determined in accordance with rules prescribed in the regulations.</p></wrapUp></subsection></section><section eId="section-69"><num>69</num><heading>Taxable activities</heading><subsection eId="section-69-1"><num>(1)</num><intro><p>A person carries out a taxable activity if—</p></intro><level class="para1" eId="section-69-1-a"><num>(a)</num><content><p>he makes a taxable disposal in respect of which he is liable to pay tax, or</p></content></level><level class="para1" eId="section-69-1-b"><num>(b)</num><content><p>he permits another person to make a taxable disposal in respect of which he (the first-mentioned person) is liable to pay tax.</p></content></level></subsection><subsection eId="section-69-2"><num>(2)</num><intro><p>Where—</p></intro><level class="para1" eId="section-69-2-a"><num>(a)</num><content><p>a taxable disposal is made, and</p></content></level><level class="para1" eId="section-69-2-b"><num>(b)</num><content><p>it is made without the knowledge of the person who is liable to pay tax in respect of it,</p></content></level><wrapUp><p>that person shall for the purposes of this section be taken to permit the disposal.</p></wrapUp></subsection></section><section eId="section-70"><num>70</num><heading>Interpretation: other provisions</heading><subsection eId="section-70-1"><num>(1)</num><intro><p>Unless the context otherwise requires—</p></intro><hcontainer name="definition"><content><p>“accounting period” shall be construed in accordance with section 49 above;</p></content></hcontainer><hcontainer name="definition"><content><p>“appeal tribunal” means a VAT and duties tribunal;</p></content></hcontainer><hcontainer name="definition"><content><p>“authorised person” means any person acting under the authority of the Commissioners;</p></content></hcontainer><hcontainer name="definition"><content><p>“the Commissioners” means the Commissioners of Customs and Excise;</p></content></hcontainer><hcontainer name="definition"><content><p>“conduct” includes any act, omission or statement;</p></content></hcontainer><hcontainer name="definition"><content><p>“material” means material of all kinds, including objects, substances and products of all kinds;</p></content></hcontainer><hcontainer name="definition"><content><p>“prescribed” means prescribed by an order or regulations under this Part;</p></content></hcontainer><hcontainer name="definition"><content><p>“registrable person” has the meaning given by section 47(10) above;</p></content></hcontainer><hcontainer name="definition"><content><p>“tax” means landfill tax;</p></content></hcontainer><hcontainer name="definition"><content><p>“taxable disposal” has the meaning given by section 40 above.</p></content></hcontainer></subsection><subsection eId="section-70-2"><num>(2)</num><intro><p>A landfill disposal is a disposal—</p></intro><level class="para1" eId="section-70-2-a"><num>(a)</num><content><p>of material as waste, and</p></content></level><level class="para1" eId="section-70-2-b"><num>(b)</num><content><p>made by way of landfill.</p></content></level></subsection><subsection eId="section-70-3"><num>(3)</num><content><p>A reference to this Part includes a reference to any order or regulations made under it and a reference to a provision of this Part includes a reference to any order or regulations made under the provision, unless otherwise required by the context or any order or regulations.</p></content></subsection><subsection eId="section-70-4"><num>(4)</num><content><p>This section and sections 64 to 69 above apply for the purposes of this Part.</p></content></subsection></section></hcontainer>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-64"><num>64</num><heading>Disposal of material as waste</heading><subsection eId="section-64-1"><num>(1)</num><content><p>A disposal of material is a disposal of it as waste if the person making the disposal does so with the intention of discarding the material.</p></content></subsection><subsection eId="section-64-2"><num>(2)</num><content><p>The fact that the person making the disposal or any other person could benefit from or make use of the material is irrelevant.</p></content></subsection><subsection eId="section-64-3"><num>(3)</num><content><p>Where a person makes a disposal on behalf of another person, for the purposes of subsections (1) and (2) above the person on whose behalf the disposal is made shall be treated as making the disposal.</p></content></subsection><subsection eId="section-64-4"><num>(4)</num><intro><p>The reference in subsection (3) above to a disposal on behalf of another person includes references to a disposal—</p></intro><level class="para1" eId="section-64-4-a"><num>(a)</num><content><p>at the request of another person;</p></content></level><level class="para1" eId="section-64-4-b"><num>(b)</num><content><p>in pursuance of a contract with another person.</p></content></level></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-64-1"><num>(1)</num><content><p>A disposal of material is a disposal of it as waste if the person making the disposal does so with the intention of discarding the material.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-64-2"><num>(2)</num><content><p>The fact that the person making the disposal or any other person could benefit from or make use of the material is irrelevant.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-64-3"><num>(3)</num><content><p>Where a person makes a disposal on behalf of another person, for the purposes of subsections (1) and (2) above the person on whose behalf the disposal is made shall be treated as making the disposal.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-64-4"><num>(4)</num><intro><p>The reference in subsection (3) above to a disposal on behalf of another person includes references to a disposal—</p></intro><level class="para1" eId="section-64-4-a"><num>(a)</num><content><p>at the request of another person;</p></content></level><level class="para1" eId="section-64-4-b"><num>(b)</num><content><p>in pursuance of a contract with another person.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-64-4-a"><num>(a)</num><content><p>at the request of another person;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-64-4-b"><num>(b)</num><content><p>in pursuance of a contract with another person.</p></content></level>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-65"><num>65</num><heading>Disposal by way of landfill</heading><subsection eId="section-65-1"><num>(1)</num><intro><p>There is a disposal of material by way of landfill if—</p></intro><level class="para1" eId="section-65-1-a"><num>(a)</num><content><p>it is deposited on the surface of land or on a structure set into the surface, or</p></content></level><level class="para1" eId="section-65-1-b"><num>(b)</num><content><p>it is deposited under the surface of land.</p></content></level></subsection><subsection eId="section-65-2"><num>(2)</num><content><p>Subsection (1) above applies whether or not the material is placed in a container before it is deposited.</p></content></subsection><subsection eId="section-65-3"><num>(3)</num><intro><p>Subsection (1)(b) above applies whether the material—</p></intro><level class="para1" eId="section-65-3-a"><num>(a)</num><content><p>is covered with earth after it is deposited, or</p></content></level><level class="para1" eId="section-65-3-b"><num>(b)</num><content><p>is deposited in a cavity (such as a cavern or mine).</p></content></level></subsection><subsection eId="section-65-4"><num>(4)</num><content><p>If material is deposited on the surface of land (or on a structure set into the surface) with a view to it being covered with earth the disposal must be treated as made when the material is deposited and not when it is covered.</p></content></subsection><subsection eId="section-65-5"><num>(5)</num><content><p>An order may provide that the meaning of the disposal of material by way of landfill (as it applies for the time being) shall be varied.</p></content></subsection><subsection eId="section-65-6"><num>(6)</num><content><p>An order under subsection (5) above may make provision in such way as the Treasury think fit, whether by amending any of subsections (1) to (4) above or otherwise.</p></content></subsection><subsection eId="section-65-7"><num>(7)</num><content><p>In this section “land” includes land covered by water where the land is above the low water mark of ordinary spring tides.</p></content></subsection><subsection eId="section-65-8"><num>(8)</num><content><p>In this section “earth” includes similar matter (such as sand or rocks).</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-65-1"><num>(1)</num><intro><p>There is a disposal of material by way of landfill if—</p></intro><level class="para1" eId="section-65-1-a"><num>(a)</num><content><p>it is deposited on the surface of land or on a structure set into the surface, or</p></content></level><level class="para1" eId="section-65-1-b"><num>(b)</num><content><p>it is deposited under the surface of land.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-65-1-a"><num>(a)</num><content><p>it is deposited on the surface of land or on a structure set into the surface, or</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-65-1-b"><num>(b)</num><content><p>it is deposited under the surface of land.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-65-2"><num>(2)</num><content><p>Subsection (1) above applies whether or not the material is placed in a container before it is deposited.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-65-3"><num>(3)</num><intro><p>Subsection (1)(b) above applies whether the material—</p></intro><level class="para1" eId="section-65-3-a"><num>(a)</num><content><p>is covered with earth after it is deposited, or</p></content></level><level class="para1" eId="section-65-3-b"><num>(b)</num><content><p>is deposited in a cavity (such as a cavern or mine).</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-65-3-a"><num>(a)</num><content><p>is covered with earth after it is deposited, or</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-65-3-b"><num>(b)</num><content><p>is deposited in a cavity (such as a cavern or mine).</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-65-4"><num>(4)</num><content><p>If material is deposited on the surface of land (or on a structure set into the surface) with a view to it being covered with earth the disposal must be treated as made when the material is deposited and not when it is covered.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-65-5"><num>(5)</num><content><p>An order may provide that the meaning of the disposal of material by way of landfill (as it applies for the time being) shall be varied.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-65-6"><num>(6)</num><content><p>An order under subsection (5) above may make provision in such way as the Treasury think fit, whether by amending any of subsections (1) to (4) above or otherwise.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-65-7"><num>(7)</num><content><p>In this section “land” includes land covered by water where the land is above the low water mark of ordinary spring tides.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-65-8"><num>(8)</num><content><p>In this section “earth” includes similar matter (such as sand or rocks).</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-66"><num>66</num><heading>Landfill sites</heading><intro><p>Land is a landfill site at a given time if at that time—</p></intro><level class="para1" eId="section-66-a"><num>(a)</num><content><p>a licence which is a site licence for the purposes of Part II of the <noteRef href="#m00049" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Environmental Protection Act 1990 (waste on land) is in force in relation to the land and authorises disposals in or on the land,</p></content></level><level class="para1" eId="section-66-b"><num>(b)</num><content><p>a resolution under section 54 of that Act (land occupied by waste disposal authorities in Scotland) is in force in relation to the land and authorises deposits or disposals in or on the land,</p></content></level><level class="para1" eId="section-66-c"><num>(c)</num><content><p>a disposal licence issued under Part II of the <noteRef href="#m00050" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Pollution Control and Local Government (Northern Ireland) Order 1978 (waste on land) is in force in relation to the land and authorises deposits on the land,</p></content></level><level class="para1" eId="section-66-d"><num>(d)</num><content><p>a resolution passed under Article 13 of that Order (land occupied by district councils in Northern Ireland) is in force in relation to the land and relates to deposits on the land, or</p></content></level><level class="para1" eId="section-66-e"><num>(e)</num><content><p>a licence under any provision for the time being having effect in Northern Ireland and corresponding to section 35 of the Environmental Protection Act 1990 (waste management licences) is in force in relation to the land and authorises disposals in or on the land.</p></content></level></section>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-66-a"><num>(a)</num><content><p>a licence which is a site licence for the purposes of Part II of the <noteRef href="#m00049" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Environmental Protection Act 1990 (waste on land) is in force in relation to the land and authorises disposals in or on the land,</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-66-b"><num>(b)</num><content><p>a resolution under section 54 of that Act (land occupied by waste disposal authorities in Scotland) is in force in relation to the land and authorises deposits or disposals in or on the land,</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-66-c"><num>(c)</num><content><p>a disposal licence issued under Part II of the <noteRef href="#m00050" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Pollution Control and Local Government (Northern Ireland) Order 1978 (waste on land) is in force in relation to the land and authorises deposits on the land,</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-66-d"><num>(d)</num><content><p>a resolution passed under Article 13 of that Order (land occupied by district councils in Northern Ireland) is in force in relation to the land and relates to deposits on the land, or</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-66-e"><num>(e)</num><content><p>a licence under any provision for the time being having effect in Northern Ireland and corresponding to section 35 of the Environmental Protection Act 1990 (waste management licences) is in force in relation to the land and authorises disposals in or on the land.</p></content></level>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-67"><num>67</num><heading>Operators of landfill sites</heading><intro><p>The operator of a landfill site at a given time is—</p></intro><level class="para1" eId="section-67-a"><num>(a)</num><content><p>the person who is at the time concerned the holder of the licence, where section 66(a) above applies;</p></content></level><level class="para1" eId="section-67-b"><num>(b)</num><content><p>the waste disposal authority which at the time concerned occupies the landfill site, where section 66(b) above applies;</p></content></level><level class="para1" eId="section-67-c"><num>(c)</num><content><p>the person who is at the time concerned the holder of the licence, where section 66(c) above applies;</p></content></level><level class="para1" eId="section-67-d"><num>(d)</num><content><p>the district council which passed the resolution, where section 66(d) above applies;</p></content></level><level class="para1" eId="section-67-e"><num>(e)</num><content><p>the person who is at the time concerned the holder of the licence, where section 66(e) above applies.</p></content></level></section>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-67-a"><num>(a)</num><content><p>the person who is at the time concerned the holder of the licence, where section 66(a) above applies;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-67-b"><num>(b)</num><content><p>the waste disposal authority which at the time concerned occupies the landfill site, where section 66(b) above applies;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-67-c"><num>(c)</num><content><p>the person who is at the time concerned the holder of the licence, where section 66(c) above applies;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-67-d"><num>(d)</num><content><p>the district council which passed the resolution, where section 66(d) above applies;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-67-e"><num>(e)</num><content><p>the person who is at the time concerned the holder of the licence, where section 66(e) above applies.</p></content></level>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-68"><num>68</num><heading>Weight of material disposed of</heading><subsection eId="section-68-1"><num>(1)</num><content><p>The weight of the material disposed of on a taxable disposal shall be determined in accordance with regulations.</p></content></subsection><subsection eId="section-68-2"><num>(2)</num><intro><p>The regulations may—</p></intro><level class="para1" eId="section-68-2-a"><num>(a)</num><content><p>prescribe rules for determining the weight;</p></content></level><level class="para1" eId="section-68-2-b"><num>(b)</num><content><p>authorise rules for determining the weight to be specified by the Commissioners in a prescribed manner;</p></content></level><level class="para1" eId="section-68-2-c"><num>(c)</num><content><p>authorise rules for determining the weight to be agreed by the person liable to pay the tax and an authorised person.</p></content></level></subsection><subsection eId="section-68-3"><num>(3)</num><intro><p>The regulations may in particular prescribe, or authorise the specification or agreement of, rules about—</p></intro><level class="para1" eId="section-68-3-a"><num>(a)</num><content><p>the method by which the weight is to be determined;</p></content></level><level class="para1" eId="section-68-3-b"><num>(b)</num><content><p>the time by reference to which the weight is to be determined;</p></content></level><level class="para1" eId="section-68-3-c"><num>(c)</num><content><p>the discounting of constituents (such as water).</p></content></level></subsection><subsection eId="section-68-4"><num>(4)</num><intro><p>The regulations may include provision that a specification authorised under subsection (2)(b) above may provide—</p></intro><level class="para1" eId="section-68-4-a"><num>(a)</num><content><p>that it is to have effect only in relation to disposals of such descriptions as may be set out in the specification;</p></content></level><level class="para1" eId="section-68-4-b"><num>(b)</num><content><p>that it is not to have effect in relation to particular disposals unless the Commissioners are satisfied that such conditions as may be set out in the specification are met in relation to the disposals;</p></content></level><wrapUp><p>and the conditions may be framed by reference to such factors as the Commissioners think fit (such as the consent of an authorised person to the specification having effect in relation to disposals).</p></wrapUp></subsection><subsection eId="section-68-5"><num>(5)</num><intro><p>The regulations may include provision that—</p></intro><level class="para1" eId="section-68-5-a"><num>(a)</num><content><p>where rules are agreed as mentioned in subsection (2)(c) above, and</p></content></level><level class="para1" eId="section-68-5-b"><num>(b)</num><content><p>the Commissioners believe that they should no longer be applied because they do not give an accurate indication of the weight or they are not being fully observed or for some other reason,</p></content></level><wrapUp><p>the Commissioners may direct that the agreed rules shall no longer have effect.</p></wrapUp></subsection><subsection eId="section-68-6"><num>(6)</num><intro><p>The regulations shall be so framed that where in relation to a given disposal—</p></intro><level class="para1" eId="section-68-6-a"><num>(a)</num><content><p>no specification of the Commissioners has effect, and</p></content></level><level class="para1" eId="section-68-6-b"><num>(b)</num><content><p>no agreed rules have effect,</p></content></level><wrapUp><p>the weight shall be determined in accordance with rules prescribed in the regulations.</p></wrapUp></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-68-1"><num>(1)</num><content><p>The weight of the material disposed of on a taxable disposal shall be determined in accordance with regulations.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-68-2"><num>(2)</num><intro><p>The regulations may—</p></intro><level class="para1" eId="section-68-2-a"><num>(a)</num><content><p>prescribe rules for determining the weight;</p></content></level><level class="para1" eId="section-68-2-b"><num>(b)</num><content><p>authorise rules for determining the weight to be specified by the Commissioners in a prescribed manner;</p></content></level><level class="para1" eId="section-68-2-c"><num>(c)</num><content><p>authorise rules for determining the weight to be agreed by the person liable to pay the tax and an authorised person.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-68-2-a"><num>(a)</num><content><p>prescribe rules for determining the weight;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-68-2-b"><num>(b)</num><content><p>authorise rules for determining the weight to be specified by the Commissioners in a prescribed manner;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-68-2-c"><num>(c)</num><content><p>authorise rules for determining the weight to be agreed by the person liable to pay the tax and an authorised person.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-68-3"><num>(3)</num><intro><p>The regulations may in particular prescribe, or authorise the specification or agreement of, rules about—</p></intro><level class="para1" eId="section-68-3-a"><num>(a)</num><content><p>the method by which the weight is to be determined;</p></content></level><level class="para1" eId="section-68-3-b"><num>(b)</num><content><p>the time by reference to which the weight is to be determined;</p></content></level><level class="para1" eId="section-68-3-c"><num>(c)</num><content><p>the discounting of constituents (such as water).</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-68-3-a"><num>(a)</num><content><p>the method by which the weight is to be determined;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-68-3-b"><num>(b)</num><content><p>the time by reference to which the weight is to be determined;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-68-3-c"><num>(c)</num><content><p>the discounting of constituents (such as water).</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-68-4"><num>(4)</num><intro><p>The regulations may include provision that a specification authorised under subsection (2)(b) above may provide—</p></intro><level class="para1" eId="section-68-4-a"><num>(a)</num><content><p>that it is to have effect only in relation to disposals of such descriptions as may be set out in the specification;</p></content></level><level class="para1" eId="section-68-4-b"><num>(b)</num><content><p>that it is not to have effect in relation to particular disposals unless the Commissioners are satisfied that such conditions as may be set out in the specification are met in relation to the disposals;</p></content></level><wrapUp><p>and the conditions may be framed by reference to such factors as the Commissioners think fit (such as the consent of an authorised person to the specification having effect in relation to disposals).</p></wrapUp></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-68-4-a"><num>(a)</num><content><p>that it is to have effect only in relation to disposals of such descriptions as may be set out in the specification;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-68-4-b"><num>(b)</num><content><p>that it is not to have effect in relation to particular disposals unless the Commissioners are satisfied that such conditions as may be set out in the specification are met in relation to the disposals;</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-68-5"><num>(5)</num><intro><p>The regulations may include provision that—</p></intro><level class="para1" eId="section-68-5-a"><num>(a)</num><content><p>where rules are agreed as mentioned in subsection (2)(c) above, and</p></content></level><level class="para1" eId="section-68-5-b"><num>(b)</num><content><p>the Commissioners believe that they should no longer be applied because they do not give an accurate indication of the weight or they are not being fully observed or for some other reason,</p></content></level><wrapUp><p>the Commissioners may direct that the agreed rules shall no longer have effect.</p></wrapUp></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-68-5-a"><num>(a)</num><content><p>where rules are agreed as mentioned in subsection (2)(c) above, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-68-5-b"><num>(b)</num><content><p>the Commissioners believe that they should no longer be applied because they do not give an accurate indication of the weight or they are not being fully observed or for some other reason,</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-68-6"><num>(6)</num><intro><p>The regulations shall be so framed that where in relation to a given disposal—</p></intro><level class="para1" eId="section-68-6-a"><num>(a)</num><content><p>no specification of the Commissioners has effect, and</p></content></level><level class="para1" eId="section-68-6-b"><num>(b)</num><content><p>no agreed rules have effect,</p></content></level><wrapUp><p>the weight shall be determined in accordance with rules prescribed in the regulations.</p></wrapUp></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-68-6-a"><num>(a)</num><content><p>no specification of the Commissioners has effect, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-68-6-b"><num>(b)</num><content><p>no agreed rules have effect,</p></content></level>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-69"><num>69</num><heading>Taxable activities</heading><subsection eId="section-69-1"><num>(1)</num><intro><p>A person carries out a taxable activity if—</p></intro><level class="para1" eId="section-69-1-a"><num>(a)</num><content><p>he makes a taxable disposal in respect of which he is liable to pay tax, or</p></content></level><level class="para1" eId="section-69-1-b"><num>(b)</num><content><p>he permits another person to make a taxable disposal in respect of which he (the first-mentioned person) is liable to pay tax.</p></content></level></subsection><subsection eId="section-69-2"><num>(2)</num><intro><p>Where—</p></intro><level class="para1" eId="section-69-2-a"><num>(a)</num><content><p>a taxable disposal is made, and</p></content></level><level class="para1" eId="section-69-2-b"><num>(b)</num><content><p>it is made without the knowledge of the person who is liable to pay tax in respect of it,</p></content></level><wrapUp><p>that person shall for the purposes of this section be taken to permit the disposal.</p></wrapUp></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-69-1"><num>(1)</num><intro><p>A person carries out a taxable activity if—</p></intro><level class="para1" eId="section-69-1-a"><num>(a)</num><content><p>he makes a taxable disposal in respect of which he is liable to pay tax, or</p></content></level><level class="para1" eId="section-69-1-b"><num>(b)</num><content><p>he permits another person to make a taxable disposal in respect of which he (the first-mentioned person) is liable to pay tax.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-69-1-a"><num>(a)</num><content><p>he makes a taxable disposal in respect of which he is liable to pay tax, or</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-69-1-b"><num>(b)</num><content><p>he permits another person to make a taxable disposal in respect of which he (the first-mentioned person) is liable to pay tax.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-69-2"><num>(2)</num><intro><p>Where—</p></intro><level class="para1" eId="section-69-2-a"><num>(a)</num><content><p>a taxable disposal is made, and</p></content></level><level class="para1" eId="section-69-2-b"><num>(b)</num><content><p>it is made without the knowledge of the person who is liable to pay tax in respect of it,</p></content></level><wrapUp><p>that person shall for the purposes of this section be taken to permit the disposal.</p></wrapUp></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-69-2-a"><num>(a)</num><content><p>a taxable disposal is made, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-69-2-b"><num>(b)</num><content><p>it is made without the knowledge of the person who is liable to pay tax in respect of it,</p></content></level>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-70"><num>70</num><heading>Interpretation: other provisions</heading><subsection eId="section-70-1"><num>(1)</num><intro><p>Unless the context otherwise requires—</p></intro><hcontainer name="definition"><content><p>“accounting period” shall be construed in accordance with section 49 above;</p></content></hcontainer><hcontainer name="definition"><content><p>“appeal tribunal” means a VAT and duties tribunal;</p></content></hcontainer><hcontainer name="definition"><content><p>“authorised person” means any person acting under the authority of the Commissioners;</p></content></hcontainer><hcontainer name="definition"><content><p>“the Commissioners” means the Commissioners of Customs and Excise;</p></content></hcontainer><hcontainer name="definition"><content><p>“conduct” includes any act, omission or statement;</p></content></hcontainer><hcontainer name="definition"><content><p>“material” means material of all kinds, including objects, substances and products of all kinds;</p></content></hcontainer><hcontainer name="definition"><content><p>“prescribed” means prescribed by an order or regulations under this Part;</p></content></hcontainer><hcontainer name="definition"><content><p>“registrable person” has the meaning given by section 47(10) above;</p></content></hcontainer><hcontainer name="definition"><content><p>“tax” means landfill tax;</p></content></hcontainer><hcontainer name="definition"><content><p>“taxable disposal” has the meaning given by section 40 above.</p></content></hcontainer></subsection><subsection eId="section-70-2"><num>(2)</num><intro><p>A landfill disposal is a disposal—</p></intro><level class="para1" eId="section-70-2-a"><num>(a)</num><content><p>of material as waste, and</p></content></level><level class="para1" eId="section-70-2-b"><num>(b)</num><content><p>made by way of landfill.</p></content></level></subsection><subsection eId="section-70-3"><num>(3)</num><content><p>A reference to this Part includes a reference to any order or regulations made under it and a reference to a provision of this Part includes a reference to any order or regulations made under the provision, unless otherwise required by the context or any order or regulations.</p></content></subsection><subsection eId="section-70-4"><num>(4)</num><content><p>This section and sections 64 to 69 above apply for the purposes of this Part.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-70-1"><num>(1)</num><intro><p>Unless the context otherwise requires—</p></intro><hcontainer name="definition"><content><p>“accounting period” shall be construed in accordance with section 49 above;</p></content></hcontainer><hcontainer name="definition"><content><p>“appeal tribunal” means a VAT and duties tribunal;</p></content></hcontainer><hcontainer name="definition"><content><p>“authorised person” means any person acting under the authority of the Commissioners;</p></content></hcontainer><hcontainer name="definition"><content><p>“the Commissioners” means the Commissioners of Customs and Excise;</p></content></hcontainer><hcontainer name="definition"><content><p>“conduct” includes any act, omission or statement;</p></content></hcontainer><hcontainer name="definition"><content><p>“material” means material of all kinds, including objects, substances and products of all kinds;</p></content></hcontainer><hcontainer name="definition"><content><p>“prescribed” means prescribed by an order or regulations under this Part;</p></content></hcontainer><hcontainer name="definition"><content><p>“registrable person” has the meaning given by section 47(10) above;</p></content></hcontainer><hcontainer name="definition"><content><p>“tax” means landfill tax;</p></content></hcontainer><hcontainer name="definition"><content><p>“taxable disposal” has the meaning given by section 40 above.</p></content></hcontainer></subsection>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="definition"><content><p>“accounting period” shall be construed in accordance with section 49 above;</p></content></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="wrapper2"><intro><p>and in subsection (2) of that section for “subsection (1) above” there shall be substituted “subsections (1) and (1A) above”.</p></intro><subsection eId="section-181-3"><num>(3)</num><content><p><mod>For subsection (5) of section 196 of that Act there shall be substituted the following subsections—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(5)</num><intro><p>In sections 194 and 195 and this section—</p></intro><hcontainer name="definition"><content><p>“foreign oil concession” means any right to search for or win overseas petroleum, being a right conferred or exercisable (whether or not by virtue of a licence) in relation to a particular area;</p></content></hcontainer><hcontainer name="definition"><intro><p>“interest” in relation to a licence, includes, where there is an agreement which—</p></intro><level class="para1"><num>(a)</num><content><p>relates to oil from the whole or any part of the licensed area, and</p></content></level><level class="para1"><num>(b)</num><content><p>was made before the extraction of the oil to which it relates,</p></content></level><wrapUp><p>any entitlement under that agreement to, or to a share of, either that oil or the proceeds of its sale;</p></wrapUp></hcontainer><hcontainer name="definition"><content><p>“licence” means any UK licence or foreign oil concession;</p></content></hcontainer><hcontainer name="definition"><intro><p>“licensed area” (subject to subsection (4) above)—</p></intro><level class="para1"><num>(a)</num><content><p>in relation to a UK licence, has the same meaning as in Part I of the <noteRef href="#m00134" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Oil Taxation Act 1975; and</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to a foreign oil concession, means the area to which the concession applies;</p></content></level></hcontainer><hcontainer name="definition"><intro><p>“licensee”—</p></intro><level class="para1"><num>(a)</num><content><p>in relation to a UK licence, has the same meaning as in Part I of the Oil Taxation Act 1975; and</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to a foreign oil concession, means the person with the concession or any person having an interest in it;</p></content></level></hcontainer><hcontainer name="definition"><intro><p>“oil”—</p></intro><level class="para1"><num>(a)</num><content><p>except in relation to a UK licence, means any petroleum (within the meaning of the <noteRef href="#m00135" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Petroleum (Production) Act 1934); and</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to such a licence, has the same meaning as in Part I of the Oil Taxation Act 1975;</p></content></level></hcontainer><hcontainer name="definition"><content><p>“overseas petroleum” means any oil that exists in its natural condition at a place to which neither the <noteRef href="#m00136" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Petroleum (Production) Act 1934 nor the <noteRef href="#m00137" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Petroleum (Production) Act (Northern Ireland) 1964 applies; and</p></content></hcontainer><hcontainer name="definition"><content><p>“UK licence” means a licence within the meaning of Part I of the <noteRef href="#m00138" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Oil Taxation Act 1975.</p></content></hcontainer></subsection><subsection><num>(5A)</num><content><p>References in sections 194 and 195 to a part disposal of a licence shall include references to the disposal of any interest in a licence.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-181-4"><num>(4)</num><content><p>Subsections (1) to (3) above shall have effect in relation to any disposal on or after 13th September 1995 and subsection (3) shall also have effect, and be deemed always to have had effect, for the construction of section 195 of the <noteRef href="#m00139" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxation of Chargeable Gains Act 1992 in its application to disposals before that date.</p></content></subsection><subsection eId="section-181-5"><num>(5)</num><content><p>Where enactments re-enacted in the <noteRef href="#m00140" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxation of Chargeable Gains Act 1992 apply, instead of that Act, in the case of any disposal before 13th September 1995, this section shall have effect as if it required amendments equivalent to those made by subsection (3) above to have effect, and be deemed always to have had effect, for the construction of any enactment corresponding to section 195 of that Act.</p></content></subsection></hcontainer>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-181-3"><num>(3)</num><content><p><mod>For subsection (5) of section 196 of that Act there shall be substituted the following subsections—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(5)</num><intro><p>In sections 194 and 195 and this section—</p></intro><hcontainer name="definition"><content><p>“foreign oil concession” means any right to search for or win overseas petroleum, being a right conferred or exercisable (whether or not by virtue of a licence) in relation to a particular area;</p></content></hcontainer><hcontainer name="definition"><intro><p>“interest” in relation to a licence, includes, where there is an agreement which—</p></intro><level class="para1"><num>(a)</num><content><p>relates to oil from the whole or any part of the licensed area, and</p></content></level><level class="para1"><num>(b)</num><content><p>was made before the extraction of the oil to which it relates,</p></content></level><wrapUp><p>any entitlement under that agreement to, or to a share of, either that oil or the proceeds of its sale;</p></wrapUp></hcontainer><hcontainer name="definition"><content><p>“licence” means any UK licence or foreign oil concession;</p></content></hcontainer><hcontainer name="definition"><intro><p>“licensed area” (subject to subsection (4) above)—</p></intro><level class="para1"><num>(a)</num><content><p>in relation to a UK licence, has the same meaning as in Part I of the <noteRef href="#m00134" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Oil Taxation Act 1975; and</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to a foreign oil concession, means the area to which the concession applies;</p></content></level></hcontainer><hcontainer name="definition"><intro><p>“licensee”—</p></intro><level class="para1"><num>(a)</num><content><p>in relation to a UK licence, has the same meaning as in Part I of the Oil Taxation Act 1975; and</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to a foreign oil concession, means the person with the concession or any person having an interest in it;</p></content></level></hcontainer><hcontainer name="definition"><intro><p>“oil”—</p></intro><level class="para1"><num>(a)</num><content><p>except in relation to a UK licence, means any petroleum (within the meaning of the <noteRef href="#m00135" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Petroleum (Production) Act 1934); and</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to such a licence, has the same meaning as in Part I of the Oil Taxation Act 1975;</p></content></level></hcontainer><hcontainer name="definition"><content><p>“overseas petroleum” means any oil that exists in its natural condition at a place to which neither the <noteRef href="#m00136" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Petroleum (Production) Act 1934 nor the <noteRef href="#m00137" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Petroleum (Production) Act (Northern Ireland) 1964 applies; and</p></content></hcontainer><hcontainer name="definition"><content><p>“UK licence” means a licence within the meaning of Part I of the <noteRef href="#m00138" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Oil Taxation Act 1975.</p></content></hcontainer></subsection><subsection><num>(5A)</num><content><p>References in sections 194 and 195 to a part disposal of a licence shall include references to the disposal of any interest in a licence.</p></content></subsection></quotedStructure></mod></p></content></subsection>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="schedule" eId="schedule-1"><num>SCHEDULE 1<authorialNote class="referenceNote"><p>Section 6.</p></authorialNote></num><heading>Mixing of rebated oil</heading><content><p>The following is the Schedule which shall be inserted after Schedule 2 to the <noteRef href="#m00185" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Misuse of rebated kerosene Hydrocarbon Oil Duties Act 1979—</p><p><mod><quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><hcontainer name="schedule"><num>SCHEDULE 2A</num><heading>Mixing of rebated oil</heading><part><num>Part I</num><heading>Light oil</heading><hcontainer name="crossheading" ukl:Name="Pblock"><heading>Converting unleaded petrol into leaded petrol</heading><paragraph class="schProv1"><num>1</num><subparagraph><num>(1)</num><intro><p>A mixture which is leaded petrol is produced in contravention of this paragraph if such a mixture is produced by—</p></intro><level class="para1"><num>(a)</num><content><p>adding lead to unleaded petrol in respect of which a rebate has been allowed under subsection (1) of section 13A of this Act at the rate given by subsection (1A)(a) of that section;</p></content></level><level class="para1"><num>(b)</num><content><p>adding lead to unleaded petrol in respect of which a rebate has been allowed under subsection (1) of that section at the rate given by subsection (1A)(b) of that section; or</p></content></level><level class="para1"><num>(c)</num><content><p>adding lead to a mixture of unleaded petrol of a description mentioned in paragraph (a) above and unleaded petrol of a description mentioned in paragraph (b) above.</p></content></level></subparagraph><subparagraph><num>(2)</num><content><p>In sub-paragraph (1) above the reference to adding lead to unleaded petrol includes a reference to adding leaded petrol to unleaded petrol.</p></content></subparagraph><subparagraph><num>(3)</num><content><p>This paragraph is subject to any direction given under paragraph 3 below.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock"><heading>Adding octane enhancers to low octane unleaded petrol</heading><paragraph class="schProv1"><num>2</num><subparagraph><num>(1)</num><content><p>A mixture which is super-unleaded petrol is produced in contravention of this paragraph if such a mixture is produced by adding an octane enhancer to unleaded petrol in respect of which a rebate has been allowed under subsection (1) of section 13A of this Act at the rate given by subsection (1A)(b) of that section.</p></content></subparagraph><subparagraph><num>(2)</num><intro><p>For the purposes of sub-paragraph (1) above “super-unleaded petrol” means unleaded petrol—</p></intro><level class="para1"><num>(a)</num><content><p>whose research octane number is not less than 96; and</p></content></level><level class="para1"><num>(b)</num><content><p>whose motor octane number is not less than 86.</p></content></level></subparagraph><subparagraph><num>(3)</num><content><p>Subsection (1C) of section 13A applies for the purposes of this paragraph as it applies for the purposes of that section.</p></content></subparagraph><subparagraph><num>(4)</num><content><p>This paragraph is subject to any direction given under paragraph 3 below.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock"><heading>Power to create exceptions</heading><paragraph class="schProv1"><num>3</num><content><p>The Commissioners may give a direction that, in such description of circumstances as may be specified in the direction, a mixture is not produced in contravention of paragraph 1 above or (as the case may be) paragraph 2 above.</p></content></paragraph></hcontainer></part><part><num>Part II</num><heading>Heavy oil</heading><hcontainer name="crossheading" ukl:Name="Pblock"><heading>Mixing partially rebated heavy oil with unrebated heavy oil</heading><paragraph class="schProv1"><num>4</num><intro><p>A mixture of heavy oils is produced in contravention of this paragraph if such a mixture is produced by mixing—</p></intro><level class="para1"><num>(a)</num><content><p>gas oil in respect of which a rebate has been allowed under section 11(1)(b) of this Act; and</p></content></level><level class="para1"><num>(b)</num><content><p>heavy oil in respect of which, on its delivery for home use, a declaration was made that it was intended for use as fuel for a road vehicle.</p></content></level></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock"><heading>Mixing fully rebated heavy oil with unrebated heavy oil</heading><paragraph class="schProv1"><num>5</num><intro><p>A mixture of heavy oils is produced in contravention of this paragraph if such a mixture is produced by mixing—</p></intro><level class="para1"><num>(a)</num><content><p>heavy oil which is neither fuel oil nor gas oil and in respect of which a rebate has been allowed under section 11(1)(c) of this Act; and</p></content></level><level class="para1"><num>(b)</num><content><p>heavy oil in respect of which, on its delivery for home use, a declaration was made that it was intended for use as fuel for a road vehicle.</p></content></level></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock"><heading>Mixing fully rebated heavy oil with partially rebated heavy oil</heading><paragraph class="schProv1"><num>6</num><intro><p>A mixture of heavy oils is produced in contravention of this paragraph if such a mixture is produced by mixing—</p></intro><level class="para1"><num>(a)</num><content><p>heavy oil which is neither fuel oil nor gas oil and in respect of which a rebate has been allowed under section 11(1)(c) of this Act; and</p></content></level><level class="para1"><num>(b)</num><content><p>gas oil in respect of which a rebate has been allowed under section 11(1)(b) of this Act.</p></content></level></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock"><heading>Complex mixtures of heavy oils</heading><paragraph class="schProv1"><num>7</num><content><p>A mixture of heavy oils is produced in contravention of this paragraph if such a mixture is produced in contravention of more than one paragraph of paragraphs 4 to 6 above.</p></content></paragraph></hcontainer></part><part><num>Part III</num><heading>Rates of duty, etc.</heading><hcontainer name="crossheading" ukl:Name="Pblock"><heading>Rate for mixtures of light oil</heading><paragraph class="schProv1"><num>8</num><subparagraph><num>(1)</num><content><p>Subject to paragraph 10 below, duty under section 20AAA(1) of this Act shall be charged at the following rates.</p></content></subparagraph><subparagraph><num>(2)</num><content><p>In the case of a mixture produced in contravention of paragraph 1 above, the rate is the rate for light oil in force at the time that the mixture is produced.</p></content></subparagraph><subparagraph><num>(3)</num><content><p>In the case of a mixture produced in contravention of paragraph 2 above, the rate is the rate produced by deducting from the rate for light oil in force at the time the mixture is produced the rate of rebate which at that time is in force under section 13A(1A)(a) of this Act.</p></content></subparagraph><subparagraph><num>(4)</num><content><p>In this paragraph “the rate for light oil” means the rate given in the case of light oil by section 6(1) of this Act.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock"><heading>Rate for mixtures of heavy oil</heading><paragraph class="schProv1"><num>9</num><subparagraph><num>(1)</num><content><p>Subject to paragraph 10 below, duty charged under subsection (2) of section 20AAA of this Act shall be charged at the rate for heavy oil in force at the time when the mixture is supplied as mentioned in that subsection.</p></content></subparagraph><subparagraph><num>(2)</num><content><p>In this paragraph “the rate for heavy oil” means the rate given in the case of heavy oil by section 6(1) of this Act.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock"><heading>Credit for duty paid on ingredients of mixture</heading><paragraph class="schProv1"><num>10</num><content><p>Where duty is charged under section 20AAA of this Act in respect of any mixture, the amount of duty produced by applying paragraph 8 or 9 above shall be reduced by the amount of any duty under section 6 of this Act which the Commissioners are satisfied has been paid in respect of any ingredient of the mixture.</p></content></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock"><heading>Interpretation</heading><paragraph class="schProv1"><num>11</num><intro><p>In this Schedule—</p></intro><hcontainer name="definition"><content><p>“fuel oil” and “gas oil” have the same meanings as in section 11 of this Act;</p></content></hcontainer><hcontainer name="definition"><content><p>“leaded petrol” and “unleaded petrol” shall be construed in accordance with section 13A of this Act.</p></content></hcontainer></paragraph></hcontainer></part></hcontainer></quotedStructure></mod></p></content></hcontainer>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-181-4"><num>(4)</num><content><p>Subsections (1) to (3) above shall have effect in relation to any disposal on or after 13th September 1995 and subsection (3) shall also have effect, and be deemed always to have had effect, for the construction of section 195 of the <noteRef href="#m00139" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxation of Chargeable Gains Act 1992 in its application to disposals before that date.</p></content></subsection>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="schedule" eId="schedule-2"><num>SCHEDULE 2<authorialNote class="referenceNote"><p>Section 23.</p></authorialNote></num><heading>Vehicle licensing and registration</heading><paragraph eId="schedule-2-paragraph-1" class="schProv1"><num>1</num><content><p>In this Schedule “the 1994 Act” means the <noteRef href="#m00186" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Vehicle Excise and Registration Act 1994.</p></content></paragraph><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-2-crossheading-vehicle-licences"><heading>Vehicle licences</heading><paragraph eId="schedule-2-paragraph-2" class="schProv1"><num>2</num><subparagraph eId="schedule-2-paragraph-2-1"><num>(1)</num><content><p>Section 7 of the 1994 Act (issue of vehicle licences) shall be amended in accordance with this paragraph.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-2-2"><num>(2)</num><content><p><mod>After subsection (3) there shall be inserted the following subsections—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(3A)</num><content><p>A person applying for a licence shall not be required to make a declaration specified for the purposes of subsection (1)(a) if he agrees to comply with such conditions as may be specified in relation to him by the Secretary of State.</p></content></subsection><subsection><num>(3B)</num><content><p>The conditions which may be specified under subsection (3A) include a condition that particulars for the time being specified for the purposes of subsection (1)(b) are furnished by being transmitted to the Secretary of State by such electronic means as he may specify.</p></content></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-2-paragraph-2-3"><num>(3)</num><content><p>Sub-paragraph (2) above applies to applications made on or after the day on which this Act is passed.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-2-4"><num>(4)</num><intro><p>In subsection (6)—</p></intro><level class="para1" eId="schedule-2-paragraph-2-4-a"><num>(a)</num><content><p><mod>after “may provide for—” there shall be inserted the following paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(aa)</num><content><p>the return of any vehicle licence which is damaged or contains any particulars which have become illegible or inaccurate,</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="schedule-2-paragraph-2-4-b"><num>(b)</num><content><p>in paragraph (a), after “or damaged”, there shall be inserted “or which contains any particulars which have become illegible or inaccurate”; and</p></content></level><level class="para1" eId="schedule-2-paragraph-2-4-c"><num>(c)</num><content><p>at the end of paragraph (b) there shall be inserted “in any of those circumstances”.</p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-2-crossheading-trade-licences"><heading>Trade licences</heading><paragraph eId="schedule-2-paragraph-3" class="schProv1"><num>3</num><content><p><mod>In section 11 of the 1994 Act (trade licences), after subsection (1) there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1A)</num><content><p>The power to prescribe conditions under subsection (1) includes, in particular, the power to prescribe conditions which are to be complied with after the licence is issued.</p></content></subsection></quotedStructure></mod></p></content></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-2-crossheading-registration-regulations"><heading>Registration regulations</heading><paragraph eId="schedule-2-paragraph-4" class="schProv1"><num>4</num><subparagraph eId="schedule-2-paragraph-4-1"><num>(1)</num><content><p>Subsection (1) of section 22 of the 1994 Act (registration regulations) shall be amended in accordance with this paragraph.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-4-2"><num>(2)</num><content><p>In paragraph (d), after “a person by”, there shall be inserted “, through”.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-4-3"><num>(3)</num><content><p>In paragraph (dd), after “a person by”, there shall be inserted “or through”.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-4-4"><num>(4)</num><content><p>At the end of paragraph (h) there shall be inserted “or which contain any particulars which have become illegible or inaccurate”.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-4-5"><num>(5)</num><content><p><mod>After paragraph (h) there shall be inserted the following paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(i)</num><content><p>provide for a fee of such amount as appears to the Secretary of State to be reasonable to be paid on the issue of new registration documents in any of the circumstances mentioned in paragraph (h).</p></content></level></quotedStructure></mod></p></content></subparagraph></paragraph><paragraph eId="schedule-2-paragraph-5" class="schProv1"><num>5</num><content><p>In subsection (1B)(a) of section 22 of the 1994 Act, for “the other person there mentioned or to the Secretary of State or to both;” there shall be substituted “another person there mentioned or to the Secretary of State or to another such person and to the Secretary of State;”.</p></content></paragraph><paragraph eId="schedule-2-paragraph-6" class="schProv1"><num>6</num><content><p><mod>After subsection (1B) of section 22 of the 1994 Act there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1C)</num><content><p>Regulations under subsection (1)(e) may, in particular, provide that registration documents need not be issued in respect of the registration of a vehicle until the vehicle has been inspected by a person specified by the Secretary of State.</p></content></subsection></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-2-paragraph-7" class="schProv1"><num>7</num><content><p><mod>After subsection (1C) of section 22 of the 1994 Act there shall be inserted the following subsections—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1D)</num><intro><p>The Secretary of State may by regulations require a person—</p></intro><level class="para1"><num>(a)</num><content><p>who surrenders a vehicle licence under section 10(2),</p></content></level><level class="para1"><num>(b)</num><content><p>who does not renew a vehicle licence for a vehicle kept by him, or</p></content></level><level class="para1"><num>(c)</num><content><p>who keeps an unlicensed vehicle at any place in the United Kingdom,</p></content></level><wrapUp><p>to furnish such particulars and make such declarations as may be prescribed by the regulations, and to do so at such times and in such manner as may be so prescribed.</p></wrapUp></subsection><subsection><num>(1E)</num><intro><p>For the purposes of subsection (1D)(b) a person shall be regarded as not renewing a vehicle licence for a vehicle kept by him if—</p></intro><level class="para1"><num>(a)</num><content><p>he keeps a vehicle for which a vehicle licence is in force, and</p></content></level><level class="para1"><num>(b)</num><content><p>he does not, at such time as may be prescribed by the regulations or within such period as may be so prescribed, take out a vehicle licence to have effect from the expiry of the vehicle licence mentioned in paragraph (a).</p></content></level></subsection><subsection><num>(1F)</num><content><p>For the purposes of subsection (1D)(c) a vehicle is unlicensed if no vehicle licence is in force for the vehicle.</p></content></subsection><subsection><num>(1G)</num><content><p>Regulations under subsection (1D) may make such transitional provision as appears to the Secretary of State to be appropriate.</p></content></subsection></quotedStructure></mod></p></content></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-2-crossheading-surrender-of-licences-repayments"><heading>Surrender of licences: repayments</heading><paragraph eId="schedule-2-paragraph-8" class="schProv1"><num>8</num><content><p><mod>In section 19 of the 1994 Act (surrender of licences), after subsection (2), there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(3)</num><content><p>Subsection (1) does not apply if the holder of the licence does not comply with regulations made by virtue of section 22(1D)(a).</p></content></subsection></quotedStructure></mod></p></content></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-2-crossheading-offences"><heading>Offences</heading><paragraph eId="schedule-2-paragraph-9" class="schProv1"><num>9</num><subparagraph eId="schedule-2-paragraph-9-1"><num>(1)</num><content><p><mod>In section 29 of the 1994 Act (penalty for using or keeping unlicensed vehicle), at the beginning of subsection (3) there shall be inserted “Subject to subsection (3A)”, and after subsection (3) there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(3A)</num><intro><p>In the case of a person who—</p></intro><level class="para1"><num>(a)</num><content><p>has provided the Secretary of State with a declaration or statement (in pursuance of regulations under section 22) that the vehicle will not during a period specified in the declaration or statement be used or kept on a public road, and</p></content></level><level class="para1"><num>(b)</num><content><p>commits an offence under subsection (1) within a period prescribed by regulations,</p></content></level><wrapUp><p>subsection (3) applies as if the reference in paragraph (a) to level 3 were a reference to level 4.</p></wrapUp></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-2-paragraph-9-2"><num>(2)</num><content><p>This paragraph applies in relation to offences committed on or after the day on which this Act is passed.</p></content></subparagraph></paragraph><paragraph eId="schedule-2-paragraph-10" class="schProv1"><num>10</num><content><p><mod>In section 33 of the 1994 Act (not exhibiting licence), after subsection (3) there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(4)</num><intro><p>The Secretary of State may make regulations prohibiting a person from exhibiting on a vehicle in respect of which excise duty is chargeable anything—</p></intro><level class="para1"><num>(a)</num><content><p>which is intended to be, or</p></content></level><level class="para1"><num>(b)</num><content><p>which could reasonably be,</p></content></level><wrapUp><p>mistaken for a licence which is for, or in respect of, the vehicle and which is for the time being in force.</p></wrapUp></subsection></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-2-paragraph-11" class="schProv1"><num>11</num><subparagraph eId="schedule-2-paragraph-11-1"><num>(1)</num><content><p>Section 45 of the 1994 Act (false or misleading declarations and information) shall be amended in accordance with this paragraph.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-11-2"><num>(2)</num><content><p><mod>After subsection (2) there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(2A)</num><intro><p>A person who makes a declaration or statement which—</p></intro><level class="para1"><num>(a)</num><content><p>is required to be made in respect of a vehicle by regulations under section 22, and</p></content></level><level class="para1"><num>(b)</num><content><p>to his knowledge is either false or in any material respect misleading,</p></content></level><wrapUp><p>is guilty of an offence.</p></wrapUp></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-2-paragraph-11-3"><num>(3)</num><content><p>In subsection (3) (offence of furnishing false or misleading particulars), in paragraph (a), after “required by” there shall be inserted “virtue of”.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-2-crossheading-offences-information-and-admissions"><heading>Offences: information and admissions</heading><paragraph eId="schedule-2-paragraph-12" class="schProv1"><num>12</num><content><p><mod>After section 46 of the 1994 Act there shall be inserted the following section—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>46A</num><heading>Duty to give information: offences under regulations</heading><subsection><num>(1)</num><intro><p>Subsection (2) applies where it appears to the Secretary of State—</p></intro><level class="para1"><num>(a)</num><content><p>that a person is a person by, through or to whom a vehicle has been sold or disposed of and that he has failed to comply with regulations made by virtue of section 22(1)(d) requiring him to furnish particulars prescribed by the regulations;</p></content></level><level class="para1"><num>(b)</num><content><p>that a person is a person by or through whom a vehicle has been sold or disposed of and that he has failed to comply with regulations made by virtue of section 22(1)(dd) requiring him to furnish a document prescribed by the regulations; or</p></content></level><level class="para1"><num>(c)</num><content><p>that a person is a person who is surrendering a vehicle licence, or who is not renewing a vehicle licence for a vehicle kept by him or who is keeping an unlicensed vehicle and that he has failed to comply with regulations made by virtue of section 22(1D) requiring him to furnish particulars or make a declaration prescribed by the regulations.</p></content></level></subsection><subsection><num>(2)</num><intro><p>The Secretary of State may serve a notice on the person in question requiring him to give the Secretary of State such information as it in his power to give—</p></intro><level class="para1"><num>(a)</num><content><p>as to the identity of any person who is keeping a specified vehicle or who has kept it at a specified time or during a specified period;</p></content></level><level class="para1"><num>(b)</num><content><p>as to the identity of any person by, through or to whom a specified vehicle has been sold or disposed of at a specified time or during a specified period; or</p></content></level><level class="para1"><num>(c)</num><content><p>which may lead to the identification of a person falling within paragraph (a) or (b).</p></content></level></subsection><subsection><num>(3)</num><content><p>A person who fails to comply with a notice under subsection (2) is guilty of an offence.</p></content></subsection><subsection><num>(4)</num><content><p>A person guilty of an offence under subsection (3) is liable on summary conviction to a fine not exceeding level 3 on the standard scale.</p></content></subsection><subsection><num>(5)</num><content><p>In this section “specified” means specified in a notice under subsection (2).</p></content></subsection></section></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-2-paragraph-13" class="schProv1"><num>13</num><content><p><mod>After section 51 of the 1994 Act there shall be inserted the following section—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>51A</num><heading>Admissions: offences under regulations</heading><subsection><num>(1)</num><intro><p>Subsection (2) applies in relation to any proceedings in England, Wales or Northern Ireland against a person for an offence on the grounds that—</p></intro><level class="para1"><num>(a)</num><content><p>a vehicle has been sold or disposed of by, through or to him and he has failed to furnish particulars prescribed by regulations made by virtue of section 22(1)(d);</p></content></level><level class="para1"><num>(b)</num><content><p>a vehicle has been sold or disposed of by or through him and he has failed to furnish a document prescribed by regulations made by virtue of section 22(1)(dd); or</p></content></level><level class="para1"><num>(c)</num><content><p>he has surrendered, or not renewed, a vehicle licence, or is keeping an unlicensed vehicle, and has failed to furnish any particulars or make a declaration prescribed by regulations made by virtue of section 22(1D).</p></content></level></subsection><subsection><num>(2)</num><intro><p>If—</p></intro><level class="para1"><num>(a)</num><content><p>it is appropriately proved that there has been served on the accused by post a requirement under section 46A to give information as to the identity of the person keeping the vehicle at a particular time, and</p></content></level><level class="para1"><num>(b)</num><content><p>a statement in writing is produced to the court purporting to be signed by the accused that he was keeping the vehicle at that time,</p></content></level><wrapUp><p>the court may accept the statement as evidence that the accused was keeping the vehicle at that time.</p></wrapUp></subsection><subsection><num>(3)</num><content><p>In subsection (2) “appropriately proved” has the same meaning as in section 51.</p></content></subsection></section></quotedStructure></mod></p></content></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-2-crossheading-proceedings-in-respect-of-offences"><heading>Proceedings in respect of offences</heading><paragraph eId="schedule-2-paragraph-14" class="schProv1"><num>14</num><subparagraph eId="schedule-2-paragraph-14-1"><num>(1)</num><intro><p>In—</p></intro><level class="para1" eId="schedule-2-paragraph-14-1-a"><num>(a)</num><content><p>section 47(1) and (2) of the 1994 Act (institution and conduct of proceedings in England and Wales or Northern Ireland), and</p></content></level><level class="para1" eId="schedule-2-paragraph-14-1-b"><num>(b)</num><content><p>section 48(3) of the 1994 Act (proceedings in Scotland),</p></content></level><wrapUp><p>after “section 29, 34” there shall in each case be inserted “, 35A”.</p></wrapUp></subparagraph><subparagraph eId="schedule-2-paragraph-14-2"><num>(2)</num><content><p>In section 55(1) of the 1994 Act (guilty plea by absent accused), for paragraphs (a) and (b) there shall be substituted “an offence under section 29 or 35A”.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-14-3"><num>(3)</num><content><p>This paragraph applies in relation to proceedings commenced on or after the day on which this Act is passed.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-2-crossheading-compounding-of-offences"><heading>Compounding of offences</heading><paragraph eId="schedule-2-paragraph-15" class="schProv1"><num>15</num><content><p><mod>In section 59 of the 1994 Act (regulations: offences), after subsection (5), there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(6)</num><intro><p>The Secretary of State may, if he sees fit, compound any proceedings for an offence—</p></intro><level class="para1"><num>(a)</num><content><p>under subsection (1), or</p></content></level><level class="para1"><num>(b)</num><content><p>under regulations under section 24 or 28.</p></content></level></subsection></quotedStructure></mod></p></content></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-2-crossheading-regulations"><heading>Regulations</heading><paragraph eId="schedule-2-paragraph-16" class="schProv1"><num>16</num><content><p>In section 57(1) of the 1994 Act (regulations generally), the words “(other than sections 7(2) and (3), 8, 26, 27, 52 and 54)” shall be omitted.</p></content></paragraph></hcontainer></hcontainer>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-2-paragraph-1" class="schProv1"><num>1</num><content><p>In this Schedule “the 1994 Act” means the <noteRef href="#m00186" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Vehicle Excise and Registration Act 1994.</p></content></paragraph>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="schedule-2-crossheading-vehicle-licences"><heading>Vehicle licences</heading><paragraph eId="schedule-2-paragraph-2" class="schProv1"><num>2</num><subparagraph eId="schedule-2-paragraph-2-1"><num>(1)</num><content><p>Section 7 of the 1994 Act (issue of vehicle licences) shall be amended in accordance with this paragraph.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-2-2"><num>(2)</num><content><p><mod>After subsection (3) there shall be inserted the following subsections—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(3A)</num><content><p>A person applying for a licence shall not be required to make a declaration specified for the purposes of subsection (1)(a) if he agrees to comply with such conditions as may be specified in relation to him by the Secretary of State.</p></content></subsection><subsection><num>(3B)</num><content><p>The conditions which may be specified under subsection (3A) include a condition that particulars for the time being specified for the purposes of subsection (1)(b) are furnished by being transmitted to the Secretary of State by such electronic means as he may specify.</p></content></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-2-paragraph-2-3"><num>(3)</num><content><p>Sub-paragraph (2) above applies to applications made on or after the day on which this Act is passed.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-2-4"><num>(4)</num><intro><p>In subsection (6)—</p></intro><level class="para1" eId="schedule-2-paragraph-2-4-a"><num>(a)</num><content><p><mod>after “may provide for—” there shall be inserted the following paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(aa)</num><content><p>the return of any vehicle licence which is damaged or contains any particulars which have become illegible or inaccurate,</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="schedule-2-paragraph-2-4-b"><num>(b)</num><content><p>in paragraph (a), after “or damaged”, there shall be inserted “or which contains any particulars which have become illegible or inaccurate”; and</p></content></level><level class="para1" eId="schedule-2-paragraph-2-4-c"><num>(c)</num><content><p>at the end of paragraph (b) there shall be inserted “in any of those circumstances”.</p></content></level></subparagraph></paragraph></hcontainer>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-2-paragraph-2" class="schProv1"><num>2</num><subparagraph eId="schedule-2-paragraph-2-1"><num>(1)</num><content><p>Section 7 of the 1994 Act (issue of vehicle licences) shall be amended in accordance with this paragraph.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-2-2"><num>(2)</num><content><p><mod>After subsection (3) there shall be inserted the following subsections—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(3A)</num><content><p>A person applying for a licence shall not be required to make a declaration specified for the purposes of subsection (1)(a) if he agrees to comply with such conditions as may be specified in relation to him by the Secretary of State.</p></content></subsection><subsection><num>(3B)</num><content><p>The conditions which may be specified under subsection (3A) include a condition that particulars for the time being specified for the purposes of subsection (1)(b) are furnished by being transmitted to the Secretary of State by such electronic means as he may specify.</p></content></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-2-paragraph-2-3"><num>(3)</num><content><p>Sub-paragraph (2) above applies to applications made on or after the day on which this Act is passed.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-2-4"><num>(4)</num><intro><p>In subsection (6)—</p></intro><level class="para1" eId="schedule-2-paragraph-2-4-a"><num>(a)</num><content><p><mod>after “may provide for—” there shall be inserted the following paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(aa)</num><content><p>the return of any vehicle licence which is damaged or contains any particulars which have become illegible or inaccurate,</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="schedule-2-paragraph-2-4-b"><num>(b)</num><content><p>in paragraph (a), after “or damaged”, there shall be inserted “or which contains any particulars which have become illegible or inaccurate”; and</p></content></level><level class="para1" eId="schedule-2-paragraph-2-4-c"><num>(c)</num><content><p>at the end of paragraph (b) there shall be inserted “in any of those circumstances”.</p></content></level></subparagraph></paragraph>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="schedule-2-crossheading-trade-licences"><heading>Trade licences</heading><paragraph eId="schedule-2-paragraph-3" class="schProv1"><num>3</num><content><p><mod>In section 11 of the 1994 Act (trade licences), after subsection (1) there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1A)</num><content><p>The power to prescribe conditions under subsection (1) includes, in particular, the power to prescribe conditions which are to be complied with after the licence is issued.</p></content></subsection></quotedStructure></mod></p></content></paragraph></hcontainer>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-2-paragraph-3" class="schProv1"><num>3</num><content><p><mod>In section 11 of the 1994 Act (trade licences), after subsection (1) there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1A)</num><content><p>The power to prescribe conditions under subsection (1) includes, in particular, the power to prescribe conditions which are to be complied with after the licence is issued.</p></content></subsection></quotedStructure></mod></p></content></paragraph>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="schedule-2-crossheading-registration-regulations"><heading>Registration regulations</heading><paragraph eId="schedule-2-paragraph-4" class="schProv1"><num>4</num><subparagraph eId="schedule-2-paragraph-4-1"><num>(1)</num><content><p>Subsection (1) of section 22 of the 1994 Act (registration regulations) shall be amended in accordance with this paragraph.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-4-2"><num>(2)</num><content><p>In paragraph (d), after “a person by”, there shall be inserted “, through”.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-4-3"><num>(3)</num><content><p>In paragraph (dd), after “a person by”, there shall be inserted “or through”.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-4-4"><num>(4)</num><content><p>At the end of paragraph (h) there shall be inserted “or which contain any particulars which have become illegible or inaccurate”.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-4-5"><num>(5)</num><content><p><mod>After paragraph (h) there shall be inserted the following paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(i)</num><content><p>provide for a fee of such amount as appears to the Secretary of State to be reasonable to be paid on the issue of new registration documents in any of the circumstances mentioned in paragraph (h).</p></content></level></quotedStructure></mod></p></content></subparagraph></paragraph><paragraph eId="schedule-2-paragraph-5" class="schProv1"><num>5</num><content><p>In subsection (1B)(a) of section 22 of the 1994 Act, for “the other person there mentioned or to the Secretary of State or to both;” there shall be substituted “another person there mentioned or to the Secretary of State or to another such person and to the Secretary of State;”.</p></content></paragraph><paragraph eId="schedule-2-paragraph-6" class="schProv1"><num>6</num><content><p><mod>After subsection (1B) of section 22 of the 1994 Act there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1C)</num><content><p>Regulations under subsection (1)(e) may, in particular, provide that registration documents need not be issued in respect of the registration of a vehicle until the vehicle has been inspected by a person specified by the Secretary of State.</p></content></subsection></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-2-paragraph-7" class="schProv1"><num>7</num><content><p><mod>After subsection (1C) of section 22 of the 1994 Act there shall be inserted the following subsections—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1D)</num><intro><p>The Secretary of State may by regulations require a person—</p></intro><level class="para1"><num>(a)</num><content><p>who surrenders a vehicle licence under section 10(2),</p></content></level><level class="para1"><num>(b)</num><content><p>who does not renew a vehicle licence for a vehicle kept by him, or</p></content></level><level class="para1"><num>(c)</num><content><p>who keeps an unlicensed vehicle at any place in the United Kingdom,</p></content></level><wrapUp><p>to furnish such particulars and make such declarations as may be prescribed by the regulations, and to do so at such times and in such manner as may be so prescribed.</p></wrapUp></subsection><subsection><num>(1E)</num><intro><p>For the purposes of subsection (1D)(b) a person shall be regarded as not renewing a vehicle licence for a vehicle kept by him if—</p></intro><level class="para1"><num>(a)</num><content><p>he keeps a vehicle for which a vehicle licence is in force, and</p></content></level><level class="para1"><num>(b)</num><content><p>he does not, at such time as may be prescribed by the regulations or within such period as may be so prescribed, take out a vehicle licence to have effect from the expiry of the vehicle licence mentioned in paragraph (a).</p></content></level></subsection><subsection><num>(1F)</num><content><p>For the purposes of subsection (1D)(c) a vehicle is unlicensed if no vehicle licence is in force for the vehicle.</p></content></subsection><subsection><num>(1G)</num><content><p>Regulations under subsection (1D) may make such transitional provision as appears to the Secretary of State to be appropriate.</p></content></subsection></quotedStructure></mod></p></content></paragraph></hcontainer>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-2-paragraph-4" class="schProv1"><num>4</num><subparagraph eId="schedule-2-paragraph-4-1"><num>(1)</num><content><p>Subsection (1) of section 22 of the 1994 Act (registration regulations) shall be amended in accordance with this paragraph.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-4-2"><num>(2)</num><content><p>In paragraph (d), after “a person by”, there shall be inserted “, through”.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-4-3"><num>(3)</num><content><p>In paragraph (dd), after “a person by”, there shall be inserted “or through”.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-4-4"><num>(4)</num><content><p>At the end of paragraph (h) there shall be inserted “or which contain any particulars which have become illegible or inaccurate”.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-4-5"><num>(5)</num><content><p><mod>After paragraph (h) there shall be inserted the following paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(i)</num><content><p>provide for a fee of such amount as appears to the Secretary of State to be reasonable to be paid on the issue of new registration documents in any of the circumstances mentioned in paragraph (h).</p></content></level></quotedStructure></mod></p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-2-paragraph-5" class="schProv1"><num>5</num><content><p>In subsection (1B)(a) of section 22 of the 1994 Act, for “the other person there mentioned or to the Secretary of State or to both;” there shall be substituted “another person there mentioned or to the Secretary of State or to another such person and to the Secretary of State;”.</p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-2-paragraph-6" class="schProv1"><num>6</num><content><p><mod>After subsection (1B) of section 22 of the 1994 Act there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1C)</num><content><p>Regulations under subsection (1)(e) may, in particular, provide that registration documents need not be issued in respect of the registration of a vehicle until the vehicle has been inspected by a person specified by the Secretary of State.</p></content></subsection></quotedStructure></mod></p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-2-paragraph-7" class="schProv1"><num>7</num><content><p><mod>After subsection (1C) of section 22 of the 1994 Act there shall be inserted the following subsections—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1D)</num><intro><p>The Secretary of State may by regulations require a person—</p></intro><level class="para1"><num>(a)</num><content><p>who surrenders a vehicle licence under section 10(2),</p></content></level><level class="para1"><num>(b)</num><content><p>who does not renew a vehicle licence for a vehicle kept by him, or</p></content></level><level class="para1"><num>(c)</num><content><p>who keeps an unlicensed vehicle at any place in the United Kingdom,</p></content></level><wrapUp><p>to furnish such particulars and make such declarations as may be prescribed by the regulations, and to do so at such times and in such manner as may be so prescribed.</p></wrapUp></subsection><subsection><num>(1E)</num><intro><p>For the purposes of subsection (1D)(b) a person shall be regarded as not renewing a vehicle licence for a vehicle kept by him if—</p></intro><level class="para1"><num>(a)</num><content><p>he keeps a vehicle for which a vehicle licence is in force, and</p></content></level><level class="para1"><num>(b)</num><content><p>he does not, at such time as may be prescribed by the regulations or within such period as may be so prescribed, take out a vehicle licence to have effect from the expiry of the vehicle licence mentioned in paragraph (a).</p></content></level></subsection><subsection><num>(1F)</num><content><p>For the purposes of subsection (1D)(c) a vehicle is unlicensed if no vehicle licence is in force for the vehicle.</p></content></subsection><subsection><num>(1G)</num><content><p>Regulations under subsection (1D) may make such transitional provision as appears to the Secretary of State to be appropriate.</p></content></subsection></quotedStructure></mod></p></content></paragraph>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="schedule-2-crossheading-surrender-of-licences-repayments"><heading>Surrender of licences: repayments</heading><paragraph eId="schedule-2-paragraph-8" class="schProv1"><num>8</num><content><p><mod>In section 19 of the 1994 Act (surrender of licences), after subsection (2), there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(3)</num><content><p>Subsection (1) does not apply if the holder of the licence does not comply with regulations made by virtue of section 22(1D)(a).</p></content></subsection></quotedStructure></mod></p></content></paragraph></hcontainer>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-2-paragraph-8" class="schProv1"><num>8</num><content><p><mod>In section 19 of the 1994 Act (surrender of licences), after subsection (2), there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(3)</num><content><p>Subsection (1) does not apply if the holder of the licence does not comply with regulations made by virtue of section 22(1D)(a).</p></content></subsection></quotedStructure></mod></p></content></paragraph>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="schedule-2-crossheading-offences"><heading>Offences</heading><paragraph eId="schedule-2-paragraph-9" class="schProv1"><num>9</num><subparagraph eId="schedule-2-paragraph-9-1"><num>(1)</num><content><p><mod>In section 29 of the 1994 Act (penalty for using or keeping unlicensed vehicle), at the beginning of subsection (3) there shall be inserted “Subject to subsection (3A)”, and after subsection (3) there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(3A)</num><intro><p>In the case of a person who—</p></intro><level class="para1"><num>(a)</num><content><p>has provided the Secretary of State with a declaration or statement (in pursuance of regulations under section 22) that the vehicle will not during a period specified in the declaration or statement be used or kept on a public road, and</p></content></level><level class="para1"><num>(b)</num><content><p>commits an offence under subsection (1) within a period prescribed by regulations,</p></content></level><wrapUp><p>subsection (3) applies as if the reference in paragraph (a) to level 3 were a reference to level 4.</p></wrapUp></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-2-paragraph-9-2"><num>(2)</num><content><p>This paragraph applies in relation to offences committed on or after the day on which this Act is passed.</p></content></subparagraph></paragraph><paragraph eId="schedule-2-paragraph-10" class="schProv1"><num>10</num><content><p><mod>In section 33 of the 1994 Act (not exhibiting licence), after subsection (3) there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(4)</num><intro><p>The Secretary of State may make regulations prohibiting a person from exhibiting on a vehicle in respect of which excise duty is chargeable anything—</p></intro><level class="para1"><num>(a)</num><content><p>which is intended to be, or</p></content></level><level class="para1"><num>(b)</num><content><p>which could reasonably be,</p></content></level><wrapUp><p>mistaken for a licence which is for, or in respect of, the vehicle and which is for the time being in force.</p></wrapUp></subsection></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-2-paragraph-11" class="schProv1"><num>11</num><subparagraph eId="schedule-2-paragraph-11-1"><num>(1)</num><content><p>Section 45 of the 1994 Act (false or misleading declarations and information) shall be amended in accordance with this paragraph.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-11-2"><num>(2)</num><content><p><mod>After subsection (2) there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(2A)</num><intro><p>A person who makes a declaration or statement which—</p></intro><level class="para1"><num>(a)</num><content><p>is required to be made in respect of a vehicle by regulations under section 22, and</p></content></level><level class="para1"><num>(b)</num><content><p>to his knowledge is either false or in any material respect misleading,</p></content></level><wrapUp><p>is guilty of an offence.</p></wrapUp></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-2-paragraph-11-3"><num>(3)</num><content><p>In subsection (3) (offence of furnishing false or misleading particulars), in paragraph (a), after “required by” there shall be inserted “virtue of”.</p></content></subparagraph></paragraph></hcontainer>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-2-paragraph-9" class="schProv1"><num>9</num><subparagraph eId="schedule-2-paragraph-9-1"><num>(1)</num><content><p><mod>In section 29 of the 1994 Act (penalty for using or keeping unlicensed vehicle), at the beginning of subsection (3) there shall be inserted “Subject to subsection (3A)”, and after subsection (3) there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(3A)</num><intro><p>In the case of a person who—</p></intro><level class="para1"><num>(a)</num><content><p>has provided the Secretary of State with a declaration or statement (in pursuance of regulations under section 22) that the vehicle will not during a period specified in the declaration or statement be used or kept on a public road, and</p></content></level><level class="para1"><num>(b)</num><content><p>commits an offence under subsection (1) within a period prescribed by regulations,</p></content></level><wrapUp><p>subsection (3) applies as if the reference in paragraph (a) to level 3 were a reference to level 4.</p></wrapUp></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-2-paragraph-9-2"><num>(2)</num><content><p>This paragraph applies in relation to offences committed on or after the day on which this Act is passed.</p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-2-paragraph-10" class="schProv1"><num>10</num><content><p><mod>In section 33 of the 1994 Act (not exhibiting licence), after subsection (3) there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(4)</num><intro><p>The Secretary of State may make regulations prohibiting a person from exhibiting on a vehicle in respect of which excise duty is chargeable anything—</p></intro><level class="para1"><num>(a)</num><content><p>which is intended to be, or</p></content></level><level class="para1"><num>(b)</num><content><p>which could reasonably be,</p></content></level><wrapUp><p>mistaken for a licence which is for, or in respect of, the vehicle and which is for the time being in force.</p></wrapUp></subsection></quotedStructure></mod></p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-2-paragraph-11" class="schProv1"><num>11</num><subparagraph eId="schedule-2-paragraph-11-1"><num>(1)</num><content><p>Section 45 of the 1994 Act (false or misleading declarations and information) shall be amended in accordance with this paragraph.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-11-2"><num>(2)</num><content><p><mod>After subsection (2) there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(2A)</num><intro><p>A person who makes a declaration or statement which—</p></intro><level class="para1"><num>(a)</num><content><p>is required to be made in respect of a vehicle by regulations under section 22, and</p></content></level><level class="para1"><num>(b)</num><content><p>to his knowledge is either false or in any material respect misleading,</p></content></level><wrapUp><p>is guilty of an offence.</p></wrapUp></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-2-paragraph-11-3"><num>(3)</num><content><p>In subsection (3) (offence of furnishing false or misleading particulars), in paragraph (a), after “required by” there shall be inserted “virtue of”.</p></content></subparagraph></paragraph>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="schedule-2-crossheading-offences-information-and-admissions"><heading>Offences: information and admissions</heading><paragraph eId="schedule-2-paragraph-12" class="schProv1"><num>12</num><content><p><mod>After section 46 of the 1994 Act there shall be inserted the following section—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>46A</num><heading>Duty to give information: offences under regulations</heading><subsection><num>(1)</num><intro><p>Subsection (2) applies where it appears to the Secretary of State—</p></intro><level class="para1"><num>(a)</num><content><p>that a person is a person by, through or to whom a vehicle has been sold or disposed of and that he has failed to comply with regulations made by virtue of section 22(1)(d) requiring him to furnish particulars prescribed by the regulations;</p></content></level><level class="para1"><num>(b)</num><content><p>that a person is a person by or through whom a vehicle has been sold or disposed of and that he has failed to comply with regulations made by virtue of section 22(1)(dd) requiring him to furnish a document prescribed by the regulations; or</p></content></level><level class="para1"><num>(c)</num><content><p>that a person is a person who is surrendering a vehicle licence, or who is not renewing a vehicle licence for a vehicle kept by him or who is keeping an unlicensed vehicle and that he has failed to comply with regulations made by virtue of section 22(1D) requiring him to furnish particulars or make a declaration prescribed by the regulations.</p></content></level></subsection><subsection><num>(2)</num><intro><p>The Secretary of State may serve a notice on the person in question requiring him to give the Secretary of State such information as it in his power to give—</p></intro><level class="para1"><num>(a)</num><content><p>as to the identity of any person who is keeping a specified vehicle or who has kept it at a specified time or during a specified period;</p></content></level><level class="para1"><num>(b)</num><content><p>as to the identity of any person by, through or to whom a specified vehicle has been sold or disposed of at a specified time or during a specified period; or</p></content></level><level class="para1"><num>(c)</num><content><p>which may lead to the identification of a person falling within paragraph (a) or (b).</p></content></level></subsection><subsection><num>(3)</num><content><p>A person who fails to comply with a notice under subsection (2) is guilty of an offence.</p></content></subsection><subsection><num>(4)</num><content><p>A person guilty of an offence under subsection (3) is liable on summary conviction to a fine not exceeding level 3 on the standard scale.</p></content></subsection><subsection><num>(5)</num><content><p>In this section “specified” means specified in a notice under subsection (2).</p></content></subsection></section></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-2-paragraph-13" class="schProv1"><num>13</num><content><p><mod>After section 51 of the 1994 Act there shall be inserted the following section—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>51A</num><heading>Admissions: offences under regulations</heading><subsection><num>(1)</num><intro><p>Subsection (2) applies in relation to any proceedings in England, Wales or Northern Ireland against a person for an offence on the grounds that—</p></intro><level class="para1"><num>(a)</num><content><p>a vehicle has been sold or disposed of by, through or to him and he has failed to furnish particulars prescribed by regulations made by virtue of section 22(1)(d);</p></content></level><level class="para1"><num>(b)</num><content><p>a vehicle has been sold or disposed of by or through him and he has failed to furnish a document prescribed by regulations made by virtue of section 22(1)(dd); or</p></content></level><level class="para1"><num>(c)</num><content><p>he has surrendered, or not renewed, a vehicle licence, or is keeping an unlicensed vehicle, and has failed to furnish any particulars or make a declaration prescribed by regulations made by virtue of section 22(1D).</p></content></level></subsection><subsection><num>(2)</num><intro><p>If—</p></intro><level class="para1"><num>(a)</num><content><p>it is appropriately proved that there has been served on the accused by post a requirement under section 46A to give information as to the identity of the person keeping the vehicle at a particular time, and</p></content></level><level class="para1"><num>(b)</num><content><p>a statement in writing is produced to the court purporting to be signed by the accused that he was keeping the vehicle at that time,</p></content></level><wrapUp><p>the court may accept the statement as evidence that the accused was keeping the vehicle at that time.</p></wrapUp></subsection><subsection><num>(3)</num><content><p>In subsection (2) “appropriately proved” has the same meaning as in section 51.</p></content></subsection></section></quotedStructure></mod></p></content></paragraph></hcontainer>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-2-paragraph-12" class="schProv1"><num>12</num><content><p><mod>After section 46 of the 1994 Act there shall be inserted the following section—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>46A</num><heading>Duty to give information: offences under regulations</heading><subsection><num>(1)</num><intro><p>Subsection (2) applies where it appears to the Secretary of State—</p></intro><level class="para1"><num>(a)</num><content><p>that a person is a person by, through or to whom a vehicle has been sold or disposed of and that he has failed to comply with regulations made by virtue of section 22(1)(d) requiring him to furnish particulars prescribed by the regulations;</p></content></level><level class="para1"><num>(b)</num><content><p>that a person is a person by or through whom a vehicle has been sold or disposed of and that he has failed to comply with regulations made by virtue of section 22(1)(dd) requiring him to furnish a document prescribed by the regulations; or</p></content></level><level class="para1"><num>(c)</num><content><p>that a person is a person who is surrendering a vehicle licence, or who is not renewing a vehicle licence for a vehicle kept by him or who is keeping an unlicensed vehicle and that he has failed to comply with regulations made by virtue of section 22(1D) requiring him to furnish particulars or make a declaration prescribed by the regulations.</p></content></level></subsection><subsection><num>(2)</num><intro><p>The Secretary of State may serve a notice on the person in question requiring him to give the Secretary of State such information as it in his power to give—</p></intro><level class="para1"><num>(a)</num><content><p>as to the identity of any person who is keeping a specified vehicle or who has kept it at a specified time or during a specified period;</p></content></level><level class="para1"><num>(b)</num><content><p>as to the identity of any person by, through or to whom a specified vehicle has been sold or disposed of at a specified time or during a specified period; or</p></content></level><level class="para1"><num>(c)</num><content><p>which may lead to the identification of a person falling within paragraph (a) or (b).</p></content></level></subsection><subsection><num>(3)</num><content><p>A person who fails to comply with a notice under subsection (2) is guilty of an offence.</p></content></subsection><subsection><num>(4)</num><content><p>A person guilty of an offence under subsection (3) is liable on summary conviction to a fine not exceeding level 3 on the standard scale.</p></content></subsection><subsection><num>(5)</num><content><p>In this section “specified” means specified in a notice under subsection (2).</p></content></subsection></section></quotedStructure></mod></p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-2-paragraph-13" class="schProv1"><num>13</num><content><p><mod>After section 51 of the 1994 Act there shall be inserted the following section—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>51A</num><heading>Admissions: offences under regulations</heading><subsection><num>(1)</num><intro><p>Subsection (2) applies in relation to any proceedings in England, Wales or Northern Ireland against a person for an offence on the grounds that—</p></intro><level class="para1"><num>(a)</num><content><p>a vehicle has been sold or disposed of by, through or to him and he has failed to furnish particulars prescribed by regulations made by virtue of section 22(1)(d);</p></content></level><level class="para1"><num>(b)</num><content><p>a vehicle has been sold or disposed of by or through him and he has failed to furnish a document prescribed by regulations made by virtue of section 22(1)(dd); or</p></content></level><level class="para1"><num>(c)</num><content><p>he has surrendered, or not renewed, a vehicle licence, or is keeping an unlicensed vehicle, and has failed to furnish any particulars or make a declaration prescribed by regulations made by virtue of section 22(1D).</p></content></level></subsection><subsection><num>(2)</num><intro><p>If—</p></intro><level class="para1"><num>(a)</num><content><p>it is appropriately proved that there has been served on the accused by post a requirement under section 46A to give information as to the identity of the person keeping the vehicle at a particular time, and</p></content></level><level class="para1"><num>(b)</num><content><p>a statement in writing is produced to the court purporting to be signed by the accused that he was keeping the vehicle at that time,</p></content></level><wrapUp><p>the court may accept the statement as evidence that the accused was keeping the vehicle at that time.</p></wrapUp></subsection><subsection><num>(3)</num><content><p>In subsection (2) “appropriately proved” has the same meaning as in section 51.</p></content></subsection></section></quotedStructure></mod></p></content></paragraph>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="schedule-2-crossheading-proceedings-in-respect-of-offences"><heading>Proceedings in respect of offences</heading><paragraph eId="schedule-2-paragraph-14" class="schProv1"><num>14</num><subparagraph eId="schedule-2-paragraph-14-1"><num>(1)</num><intro><p>In—</p></intro><level class="para1" eId="schedule-2-paragraph-14-1-a"><num>(a)</num><content><p>section 47(1) and (2) of the 1994 Act (institution and conduct of proceedings in England and Wales or Northern Ireland), and</p></content></level><level class="para1" eId="schedule-2-paragraph-14-1-b"><num>(b)</num><content><p>section 48(3) of the 1994 Act (proceedings in Scotland),</p></content></level><wrapUp><p>after “section 29, 34” there shall in each case be inserted “, 35A”.</p></wrapUp></subparagraph><subparagraph eId="schedule-2-paragraph-14-2"><num>(2)</num><content><p>In section 55(1) of the 1994 Act (guilty plea by absent accused), for paragraphs (a) and (b) there shall be substituted “an offence under section 29 or 35A”.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-14-3"><num>(3)</num><content><p>This paragraph applies in relation to proceedings commenced on or after the day on which this Act is passed.</p></content></subparagraph></paragraph></hcontainer>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-2-paragraph-14" class="schProv1"><num>14</num><subparagraph eId="schedule-2-paragraph-14-1"><num>(1)</num><intro><p>In—</p></intro><level class="para1" eId="schedule-2-paragraph-14-1-a"><num>(a)</num><content><p>section 47(1) and (2) of the 1994 Act (institution and conduct of proceedings in England and Wales or Northern Ireland), and</p></content></level><level class="para1" eId="schedule-2-paragraph-14-1-b"><num>(b)</num><content><p>section 48(3) of the 1994 Act (proceedings in Scotland),</p></content></level><wrapUp><p>after “section 29, 34” there shall in each case be inserted “, 35A”.</p></wrapUp></subparagraph><subparagraph eId="schedule-2-paragraph-14-2"><num>(2)</num><content><p>In section 55(1) of the 1994 Act (guilty plea by absent accused), for paragraphs (a) and (b) there shall be substituted “an offence under section 29 or 35A”.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-14-3"><num>(3)</num><content><p>This paragraph applies in relation to proceedings commenced on or after the day on which this Act is passed.</p></content></subparagraph></paragraph>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="schedule-2-crossheading-compounding-of-offences"><heading>Compounding of offences</heading><paragraph eId="schedule-2-paragraph-15" class="schProv1"><num>15</num><content><p><mod>In section 59 of the 1994 Act (regulations: offences), after subsection (5), there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(6)</num><intro><p>The Secretary of State may, if he sees fit, compound any proceedings for an offence—</p></intro><level class="para1"><num>(a)</num><content><p>under subsection (1), or</p></content></level><level class="para1"><num>(b)</num><content><p>under regulations under section 24 or 28.</p></content></level></subsection></quotedStructure></mod></p></content></paragraph></hcontainer>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-2-paragraph-15" class="schProv1"><num>15</num><content><p><mod>In section 59 of the 1994 Act (regulations: offences), after subsection (5), there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(6)</num><intro><p>The Secretary of State may, if he sees fit, compound any proceedings for an offence—</p></intro><level class="para1"><num>(a)</num><content><p>under subsection (1), or</p></content></level><level class="para1"><num>(b)</num><content><p>under regulations under section 24 or 28.</p></content></level></subsection></quotedStructure></mod></p></content></paragraph>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="schedule-2-crossheading-regulations"><heading>Regulations</heading><paragraph eId="schedule-2-paragraph-16" class="schProv1"><num>16</num><content><p>In section 57(1) of the 1994 Act (regulations generally), the words “(other than sections 7(2) and (3), 8, 26, 27, 52 and 54)” shall be omitted.</p></content></paragraph></hcontainer>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-2-paragraph-16" class="schProv1"><num>16</num><content><p>In section 57(1) of the 1994 Act (regulations generally), the words “(other than sections 7(2) and (3), 8, 26, 27, 52 and 54)” shall be omitted.</p></content></paragraph>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-181-5"><num>(5)</num><content><p>Where enactments re-enacted in the <noteRef href="#m00140" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxation of Chargeable Gains Act 1992 apply, instead of that Act, in the case of any disposal before 13th September 1995, this section shall have effect as if it required amendments equivalent to those made by subsection (3) above to have effect, and be deemed always to have had effect, for the construction of any enactment corresponding to section 195 of that Act.</p></content></subsection>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:default="http://www.w3.org/1999/xhtml" name="schedule" eId="schedule-3"><num>SCHEDULE 3<authorialNote class="referenceNote"><p>Section 26.</p></authorialNote></num><heading>Value added tax: Fiscal and other warehousing</heading><paragraph eId="schedule-3-paragraph-1" class="schProv1"><num>1</num><content><p>In subsection (1) of section 6 of the <noteRef href="#m00187" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Value Added Tax Act 1994, for the words “section 18” there shall be substituted the words “sections 18, 18B and 18C”.</p></content></paragraph><paragraph eId="schedule-3-paragraph-2" class="schProv1"><num>2</num><content><p>In subsection (1) of section 7 of the Value Added Tax Act 1994, for the words “sections 14 and 18” there shall be substituted the words “sections 14, 18 and 18B”.</p></content></paragraph><paragraph eId="schedule-3-paragraph-3" class="schProv1"><num>3</num><content><p>In subsection (1) of section 12 of the Value Added Tax Act 1994, for the words “section 18” there shall be substituted “sections 18 and 18B”.</p></content></paragraph><paragraph eId="schedule-3-paragraph-4" class="schProv1"><num>4</num><content><p>In subsection (1) of section 13 of the Value Added Tax Act 1994, for the words “section 18” there shall be substituted “sections 18 and 18B”.</p></content></paragraph><paragraph eId="schedule-3-paragraph-5" class="schProv1"><num>5</num><content><p><mod>The following sections shall be inserted in the Value Added Tax Act 1994 after section 18.<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>18A</num><heading>Fiscal warehousing</heading><subsection><num>(1)</num><content><p>The Commissioners may, if it appears to them proper, upon application approve any registered person as a fiscal warehousekeeper; and such approval shall be subject to such conditions as they shall impose.</p></content></subsection><subsection><num>(2)</num><content><p>Subject to those conditions and to regulations made under section 18F such a person shall be entitled to keep a fiscal warehouse.</p></content></subsection><subsection><num>(3)</num><content><p>“Fiscal warehouse” means such place in the United Kingdom in the occupation or under the control of the fiscal warehousekeeper, not being retail premises, as he shall notify to the Commissioners in writing; and such a place shall become a fiscal warehouse on receipt by the Commissioners of that notification or on the date stated in it as the date from which it is to have effect, whichever is the later, and, subject to subsection (6) below, shall remain a fiscal warehouse so long as it is in the occupation or under the control of the fiscal warehousekeeper or until he shall notify the Commissioners in writing that it is to cease to be a fiscal warehouse.</p></content></subsection><subsection><num>(4)</num><intro><p>The Commissioners may in considering an application by a person to be a fiscal warehousekeeper take into account any matter which they consider relevant, and may without prejudice to the generality of that provision take into account all or any one or more of the following—</p></intro><level class="para1"><num>(a)</num><content><p>his record of compliance and ability to comply with the requirements of this Act and regulations made hereunder;</p></content></level><level class="para1"><num>(b)</num><content><p>his record of compliance and ability to comply with the requirements of the customs and excise Acts (as defined in the Management Act) and regulations made thereunder;</p></content></level><level class="para1"><num>(c)</num><content><p>his record of compliance and ability to comply with Community customs provisions;</p></content></level><level class="para1"><num>(d)</num><content><p>his record of compliance and ability to comply with the requirements of other member States relating to VAT and duties equivalent to duties of excise;</p></content></level><level class="para1"><num>(e)</num><content><p>if the applicant is a company the records of compliance and ability to comply with the matters set out at (a) to (d) above of its directors, persons connected with its directors, its managing officers, any shadow directors or any of those persons, and, if it is a close company, the records of compliance and ability to comply with the matters set out at (a) to (d) above of the beneficial owners of the shares of the company or any of them; and</p></content></level><level class="para1"><num>(f)</num><content><p>if the applicant is an individual the records of compliance and ability to comply with the matters set out at (a) to (d) above of any company of which he is or has been a director, managing officer or shadow director or, in the case of a close company, a shareholder or the beneficial owner of shares,</p></content></level><wrapUp><p>and for the purposes of paragraphs (e) and (f) “connected” shall have the meaning given by section 24(7), “managing officer” the meaning given by section 61(6), “shadow director” the meaning given by section 741(2) of the <noteRef href="#m00188" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Companies Act 1985 and “close company” the meaning given by the Taxes Act.</p></wrapUp></subsection><subsection><num>(5)</num><content><p>Subject to subsection (6) below, a person approved under subsection (1) shall remain a fiscal warehousekeeper until he ceases to be a registered person or until he shall notify the Commissioners in writing that he is to cease to be a fiscal warehousekeeper.</p></content></subsection><subsection><num>(6)</num><intro><p>The Commissioners may if they consider it appropriate from time to time—</p></intro><level class="para1"><num>(a)</num><content><p>impose conditions on a fiscal warehousekeeper in addition to those conditions, if any, which they imposed under subsection (1), and vary or revoke any conditions previously imposed;</p></content></level><level class="para1"><num>(b)</num><content><p>withdraw approval of any person as a fiscal warehousekeeper, and</p></content></level><level class="para1"><num>(c)</num><content><p>withdraw fiscal warehouse status from any premises.</p></content></level></subsection><subsection><num>(7)</num><content><p>Any application by or on behalf of a person to be a fiscal warehousekeeper shall be in writing in such form as the Commissioners may direct and shall be accompanied by such information as they shall require.</p></content></subsection><subsection><num>(8)</num><content><p>Any approval by the Commissioners under subsection (1) above, and any withdrawal of approval or other act by them under subsection (6) above, shall be notified by them to the fiscal warehousekeeper in writing and shall take effect on such notification being made or on any later date specified for the purpose in the notification.</p></content></subsection><subsection><num>(9)</num><content><p>Without prejudice to the provisions of section 43 concerning liability for VAT, in subsections (1) and (2) above “registered person” includes any body corporate which under that section is for the time being treated as a member of a group.</p></content></subsection></section><section><num>18B</num><heading>Fiscally warehoused goods: relief</heading><subsection><num>(1)</num><intro><p>Subsections (3) and (4) below apply where—</p></intro><level class="para1"><num>(a)</num><content><p>there is an acquisition of goods from another member State;</p></content></level><level class="para1"><num>(b)</num><content><p>those goods are eligible goods;</p></content></level><level class="para1"><num>(c)</num><intro><p>either—</p></intro><level class="para2"><num>(i)</num><content><p>the acquisition takes place while the goods are subject to a fiscal warehousing regime; or</p></content></level><level class="para2"><num>(ii)</num><content><p>after the acquisition but before the supply, if any, of those goods which next occurs, the acquirer causes the goods to be placed in a fiscal warehousing regime; and</p></content></level></level><level class="para1"><num>(d)</num><content><p>the acquirer, not later than the time of the acquisition, prepares and keeps a certificate that the goods are subject to a fiscal warehousing regime, or (as the case may be) that he will cause paragraph (c)(ii) above to be satisfied; and the certificate shall be in such form and be kept for such period as the Commissioners may by regulations specify.</p></content></level></subsection><subsection><num>(2)</num><intro><p>Subsections (3) and (4) below also apply where—</p></intro><level class="para1"><num>(a)</num><content><p>there is a supply of goods;</p></content></level><level class="para1"><num>(b)</num><content><p>those goods are eligible goods;</p></content></level><level class="para1"><num>(c)</num><intro><p>either—</p></intro><level class="para2"><num>(i)</num><content><p>that supply takes place while the goods are subject to a fiscal warehousing regime; or</p></content></level><level class="para2"><num>(ii)</num><content><p>after that supply but before the supply, if any, of those goods which next occurs, the person to whom the former supply is made causes the goods to be placed in a fiscal warehousing regime;</p></content></level></level><level class="para1"><num>(d)</num><content><p>in a case falling within paragraph (c)(ii) above, the person to whom the supply is made gives the supplier, not later than the time of the supply, a certificate in such form as the Commissioners may by regulations specify that he will cause paragraph (c)(ii) to be satisfied; and</p></content></level><level class="para1"><num>(e)</num><content><p>the supply is not a retail transaction.</p></content></level></subsection><subsection><num>(3)</num><content><p>The acquisition or supply in question shall be treated for the purposes of this Act as taking place outside the United Kingdom if any subsequent supply of those goods is while they are subject to the fiscal warehousing regime.</p></content></subsection><subsection><num>(4)</num><content><p>Where subsection (3) does not apply and the acquisition or supply in question falls, for the purposes of this Act, to be treated as taking place in the United Kingdom, that acquisition or supply shall be treated for the purposes of this Act as taking place when the goods are removed from the fiscal warehousing regime.</p></content></subsection><subsection><num>(5)</num><intro><p>Where—</p></intro><level class="para1"><num>(a)</num><content><p>subsection (4) above applies to an acquisition or a supply,</p></content></level><level class="para1"><num>(b)</num><content><p>the acquisition or supply is taxable and not zero-rated, and</p></content></level><level class="para1"><num>(c)</num><content><p>the acquirer or supplier is not a taxable person but would be were it not for paragraph 1(9) of Schedule 1, paragraph 1(7) of Schedule 2 and paragraph 1(6) of Schedule 3, or any of those provisions,</p></content></level><wrapUp><p>VAT shall be chargeable on that acquisition or supply notwithstanding that the acquirer or the supplier is not a taxable person.</p></wrapUp></subsection><subsection><num>(6)</num><intro><p>In this section “eligible goods” means goods—</p></intro><level class="para1"><num>(a)</num><content><p>of a description falling within Schedule 5A;</p></content></level><level class="para1"><num>(b)</num><content><p>upon which any import duties, as defined in article 4(10) of the Community Customs Code of 12th October 1992 (Council Regulation (EEC) No.2913/92), either have been paid or have been deferred under article 224 of that Code or regulations made under section 45 of the Management Act;</p></content></level><level class="para1"><num>(c)</num><content><p>(in the case of goods imported from a place outside the member States) upon which any VAT chargeable under section 1(1)(c) has been either paid or deferred in accordance with Community customs provisions, and</p></content></level><level class="para1"><num>(d)</num><content><p>(in the case of goods subject to a duty of excise) upon which that duty has been either paid or deferred under section 127A of the Management Act.</p></content></level></subsection><subsection><num>(7)</num><content><p>For the purposes of this section, apart from subsection (4), an acquisition or supply shall be treated as taking place at the material time for the acquisition or supply.</p></content></subsection><subsection><num>(8)</num><content><p>The Treasury may by order vary Schedule 5A by adding to or deleting from it any goods or varying any description of any goods.</p></content></subsection></section><section><num>18C</num><heading>Warehouses and fiscal warehouses: services</heading><subsection><num>(1)</num><intro><p>Where—</p></intro><level class="para1"><num>(a)</num><content><p>a taxable person makes a supply of specified services;</p></content></level><level class="para1"><num>(b)</num><content><p>those services are wholly performed on or in relation to goods while those goods are subject to a warehousing or fiscal warehousing regime;</p></content></level><level class="para1"><num>(c)</num><content><p>(except where the services are the supply by an occupier of a warehouse or a fiscal warehousekeeper of warehousing or fiscally warehousing the goods) the person to whom the supply is made gives the supplier a certificate, in such a form as the Commissioners may by regulations specify, that the services are so performed;</p></content></level><level class="para1"><num>(d)</num><content><p>the supply of services would (apart from this section) be taxable and not zero-rated; and</p></content></level><level class="para1"><num>(e)</num><content><p>the supplier issues to the person to whom the supply is made an invoice of such a description as the Commissioners may by regulations prescribe,</p></content></level><wrapUp><p>his supply shall be zero-rated.</p></wrapUp></subsection><subsection><num>(2)</num><intro><p>If a supply of services is zero-rated under subsection (1) above (“the zero-rated supply of services”) then, unless there is a supply of the goods in question the material time for which is—</p></intro><level class="para1"><num>(a)</num><content><p>while the goods are subject to a warehousing or fiscal warehousing regime, and</p></content></level><level class="para1"><num>(b)</num><content><p>after the material time for the zero-rated supply of services,</p></content></level><wrapUp><p>subsection (3) below shall apply.</p></wrapUp></subsection><subsection><num>(3)</num><intro><p>Where this subsection applies—</p></intro><level class="para1"><num>(a)</num><content><p>a supply of services identical to the zero-rated supply of services shall be treated for the purposes of this Act as being, at the time the goods are removed from the warehousing or fiscal warehousing regime or (if earlier) at the duty point, both made (for the purposes of his business) to the person to whom the zero-rated supply of services was actually made and made by him in the course or furtherance of his business,</p></content></level><level class="para1"><num>(b)</num><content><p>that supply shall have the same value as the zero-rated supply of services,</p></content></level><level class="para1"><num>(c)</num><content><p>that supply shall be a taxable (and not a zero-rated) supply, and</p></content></level><level class="para1"><num>(d)</num><content><p>VAT shall be charged on that supply even if the person treated as making it is not a taxable person.</p></content></level></subsection><subsection><num>(4)</num><intro><p>In this section “specified services” means—</p></intro><level class="para1"><num>(a)</num><content><p>services of an occupier of a warehouse or a fiscal warehousekeeper of keeping the goods in question in a warehousing or fiscal warehousing regime;</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to goods subject to a warehousing regime, services of carrying out on the goods operations which are permitted to be carried out under Community customs provisions or warehousing regulations as the case may be; and</p></content></level><level class="para1"><num>(c)</num><content><p>in relation to goods subject to a fiscal warehousing regime, services of carrying out on the goods any physical operations (other than any prohibited by regulations made under section 18F), for example, and without prejudice to the generality of the foregoing words, preservation and repacking operations.</p></content></level></subsection></section><section><num>18D</num><heading>Removal from warehousing: accountability</heading><subsection><num>(1)</num><content><p>This section applies to any supply to which section 18B(4) or section 18C(3) applies (supply treated as taking place on removal or duty point) and any acquisition to which section 18B(5) applies (acquisition treated as taking place on removal where acquirer not a taxable person).</p></content></subsection><subsection><num>(2)</num><intro><p>Any VAT payable on the supply or acquisition shall (subject to any regulations under subsection (3) below) be paid—</p></intro><level class="para1"><num>(a)</num><content><p>at the time when the supply or acquisition is treated as taking place under the section in question; and</p></content></level><level class="para1"><num>(b)</num><content><p>by the person by whom the goods are removed or, as the case may be, together with the excise duty, by the person who is required to pay that duty.</p></content></level></subsection><subsection><num>(3)</num><content><p>The Commissioners may by regulations make provision for enabling a taxable person to pay the VAT he is required to pay by virtue of subsection (2) above at a time later than that provided by that subsection; and they may make different provisions for different descriptions of taxable persons and for different descriptions of goods and services.</p></content></subsection></section><section><num>18E</num><heading>Deficiency in fiscally warehoused goods</heading><subsection><num>(1)</num><content><p>This section applies where goods have been subject to a fiscal warehousing regime and, before being lawfully removed from the fiscal warehouse, they are found to be missing or deficient.</p></content></subsection><subsection><num>(2)</num><content><p>In any case where this section applies, unless it is shown to the satisfaction of the Commissioners that the absence of or deficiency in the goods can be accounted for by natural waste or other legitimate cause, the Commissioners may require the fiscal warehousekeeper to pay immediately in respect of the missing goods or of the whole or any part of the deficiency, as they see fit, the VAT that would have been chargeable.</p></content></subsection><subsection><num>(3)</num><intro><p>In subsection (2) “VAT that would have been chargeable” means VAT that would have been chargeable on a supply of the missing goods, or the amount of goods by which the goods are deficient, taking place at the time immediately before the absence arose or the deficiency occurred, if the value of that supply were the open market value; but where that time cannot be ascertained to the Commissioners' satisfaction, that VAT shall be the greater of the amounts of VAT which would have been chargeable on a supply of those goods—</p></intro><level class="para1"><num>(a)</num><content><p>if the value of that supply were the highest open market value during the period (the relevant period) commencing when the goods were placed in the fiscal warehousing regime and ending when the absence or deficiency came to the notice of the Commissioners, or</p></content></level><level class="para1"><num>(b)</num><content><p>if the rate of VAT chargeable on that supply were the highest rate chargeable on a supply of such goods during the relevant period and the value of that supply were the highest open market value while that rate prevailed.</p></content></level></subsection><subsection><num>(4)</num><content><p>This section has effect without prejudice to any penalty incurred under any other provision of this Act or regulations made under it.</p></content></subsection></section><section><num>18F</num><heading>Sections 18A to 18E: supplementary</heading><subsection><num>(1)</num><intro><p>In sections 18A to 18E and this section—</p></intro><hcontainer name="definition"><content><p>“duty point” has the meaning given by section 18(6);</p></content></hcontainer><hcontainer name="definition"><content><p>“eligible goods” has the meaning given by section 18B(6);</p></content></hcontainer><hcontainer name="definition"><content><p>“fiscal warehouse” means a place notified to the Commissioners under section 18A(3) and from which such status has not been withdrawn;</p></content></hcontainer><hcontainer name="definition"><content><p>“fiscal warehousekeeper” means a person approved under section 18A(1);</p></content></hcontainer><hcontainer name="definition"><intro><p>“material time”—</p></intro><level class="para1"><num>(a)</num><content><p>in relation to any acquisition or supply the time of which is determined in accordance with regulations under section 6(14) or 12(3), means such time as may be prescribed for the purpose of this section by those regulations;</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to any other acquisition, means the time when the goods reach the destination to which they are despatched from the member State in question;</p></content></level><level class="para1"><num>(c)</num><content><p>in relation to any other supply of goods, means the time when the supply would be treated as taking place in accordance with subsection (2) of section 6 if paragraph (c) of that subsection were omitted; and</p></content></level><level class="para1"><num>(d)</num><content><p>in relation to any other supply of services, means the time when the services are performed;</p></content></level></hcontainer><hcontainer name="definition"><content><p>“warehouse”, except in the expression “fiscal warehouse”, has the meaning given by section 18(6);</p></content></hcontainer><hcontainer name="definition"><content><p>“warehousing regulations” has the same meaning as in the Management Act.</p></content></hcontainer></subsection><subsection><num>(2)</num><content><p>Any reference in sections 18A to 18E or this section to goods being subject to a fiscal warehousing regime is, subject to any regulations made under subsection (8)(e) below, a reference to eligible goods being kept in a fiscal warehouse or being transferred between fiscal warehouses in accordance with such regulations; and any reference to the removal of goods from a fiscal warehousing regime shall be construed accordingly.</p></content></subsection><subsection><num>(3)</num><content><p>Subject to subsection (2) above, any reference in sections 18C and 18D to goods being subject to a warehousing regime or to the removal of goods from a warehousing regime shall have the same meaning as in section 18(7).</p></content></subsection><subsection><num>(4)</num><content><p>Where as a result of an operation on eligible goods subject to a fiscal warehousing regime they change their nature but the resulting goods are also eligible goods, the provisions of sections 18B to 18E and this section shall apply as if the resulting goods were the original goods.</p></content></subsection><subsection><num>(5)</num><content><p>Where as a result of an operation on eligible goods subject to a fiscal warehousing regime they cease to be eligible goods, on their ceasing to be so sections 18B to 18E shall apply as if they had at that time been removed from the fiscal warehousing regime; and for that purpose the proprietor of the goods shall be treated as if he were the person removing them.</p></content></subsection><subsection><num>(6)</num><intro><p>Where—</p></intro><level class="para1"><num>(a)</num><content><p>any person ceases to be a fiscal warehousekeeper; or</p></content></level><level class="para1"><num>(b)</num><content><p>any premises cease to have fiscal warehouse status,</p></content></level><wrapUp><p>sections 18B to 18E and this section shall apply as if the goods of which he is the fiscal warehousekeeper, or the goods in the fiscal warehouse, as the case may be, had at that time been removed from the fiscal warehousing regime; and for that purpose the proprietor of the goods shall be treated as if he were the person removing them.</p></wrapUp></subsection><subsection><num>(7)</num><content><p>The Commissioners may make regulations governing the deposit, keeping, securing and treatment of goods in a fiscal warehouse, and the removal of goods from a fiscal warehouse.</p></content></subsection><subsection><num>(8)</num><intro><p>Regulations may, without prejudice to the generality of subsection (7) above, include provisions—</p></intro><level class="para1"><num>(a)</num><intro><p>in relation to—</p></intro><level class="para2"><num>(i)</num><content><p>goods which are, have been or are to be subject to a fiscal warehousing regime,</p></content></level><level class="para2"><num>(ii)</num><content><p>other goods which are, have been or are to be kept in fiscal warehouses,</p></content></level><level class="para2"><num>(iii)</num><content><p>fiscal warehouse premises, and</p></content></level><level class="para2"><num>(iv)</num><content><p>fiscal warehousekeepers and their businesses,</p></content></level><wrapUp><p>as to the keeping, preservation and production of records and the furnishing of returns and information by fiscal warehousekeepers and any other persons;</p></wrapUp></level><level class="para1"><num>(b)</num><content><p>requiring goods deposited in a fiscal warehouse to be produced to or made available for inspection by an authorised person on request by him;</p></content></level><level class="para1"><num>(c)</num><content><p>prohibiting the carrying out on fiscally warehoused goods of such operations as they may prescribe;</p></content></level><level class="para1"><num>(d)</num><content><p>regulating the transfer of goods from one fiscal warehouse to another;</p></content></level><level class="para1"><num>(e)</num><content><p>concerning goods which, though kept in a fiscal warehouse, are not eligible goods or are not intended by a relevant person to be goods in respect of which reliefs are to be enjoyed under sections 18A to 18E and this section;</p></content></level><level class="para1"><num>(f)</num><content><p>prohibiting the fiscal warehousekeeper from allowing goods to be removed from the fiscal warehousing regime without payment of any VAT payable under section 18D on or by reference to that removal and, if in breach of that prohibition he allows goods to be so removed, making him liable for the VAT jointly and severally with the remover,</p></content></level><wrapUp><p>and may contain such incidental or supplementary provisions as the Commissioners think necessary or expedient.</p></wrapUp></subsection><subsection><num>(9)</num><content><p>Regulations may make different provision for different cases, including different provision for different fiscal warehousekeepers or descriptions of fiscal warehousekeeper, for fiscal warehouses of different descriptions or for goods of different classes or descriptions or of the same class or description in different circumstances.</p></content></subsection></section></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-3-paragraph-6" class="schProv1"><num>6</num><content><p>In subsection (1) of section 20 of the <noteRef href="#m00189" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Value Added Tax Act 1994, there shall be inserted at the beginning the words “Subject to section 18C,”.</p></content></paragraph><paragraph eId="schedule-3-paragraph-7" class="schProv1"><num>7</num><content><p><mod>In section 30 of the Value Added Tax Act 1994 the following subsection shall be added after subsection (8)—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(8A)</num><intro><p>Regulations may provide for the zero-rating of supplies of goods, or of such goods as may be specified in regulations, in cases where—</p></intro><level class="para1"><num>(a)</num><intro><p>the Commissioners are satisfied that the supply in question involves both—</p></intro><level class="para2"><num>(i)</num><content><p>the removal of the goods from a fiscal warehousing regime within the meaning of section 18F(2); and</p></content></level><level class="para2"><num>(ii)</num><content><p>their being placed in a warehousing regime in another member State, or in such member State or States as may be prescribed, where that regime is established by provisions of the law of that member State corresponding, in relation to that member State, to the provisions of sections 18A and 18B; and</p></content></level></level><level class="para1"><num>(b)</num><content><p>such other conditions, if any, as may be specified in the regulations or the Commissioners may impose are fulfilled.</p></content></level></subsection></quotedStructure><inline name="appendText">,</inline></mod></p><p>and in subsection (10) for the words “subsection (8) or (9)” there shall be substituted the words “subsection (8), (8A) or (9)” and for the words “subsection (6), (8) or (9)”, there shall be substituted the words “subsection (6), (8), (8A) or (9)”.</p></content></paragraph><paragraph eId="schedule-3-paragraph-8" class="schProv1"><num>8</num><subparagraph eId="schedule-3-paragraph-8-1"><num>(1)</num><content><p>Section 62 of the Value Added Tax Act 1994 shall be amended as follows.</p></content></subparagraph><subparagraph eId="schedule-3-paragraph-8-2"><num>(2)</num><content><p><mod>In paragraph (a) of subsection (1), after the words “a person” there shall be inserted the words “by whom one or more acquisitions or”, the words “or” at the end of sub-paragraph (i) and “and” at the end of sub-paragraph (ii) shall be omitted and the following additional sub-paragraphs shall be inserted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para2"><num>(iii)</num><content><p>prepares a certificate in accordance with section 18B(1)(d) or gives a supplier a certificate in accordance with section 18B(2)(d); or</p></content></level><level class="para2"><num>(iv)</num><content><p>gives the supplier a certificate in accordance with section 18C(1)(c); and</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-3-paragraph-8-3"><num>(3)</num><content><p>In the passage following paragraph (b) of subsection (1) and in subsections (3) and (4), after the word “giving” wherever it appears there shall be inserted the words “or preparing”.</p></content></subparagraph><subparagraph eId="schedule-3-paragraph-8-4"><num>(4)</num><content><p>In subsection (3) after the words “gave” and “given” there shall be inserted in each case the words “or prepared”.</p></content></subparagraph></paragraph><paragraph eId="schedule-3-paragraph-9" class="schProv1"><num>9</num><content><p><mod>In subsection (1) of section 69 of the <noteRef href="#m00190" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Value Added Tax Act 1994 after paragraph (f) the following shall be added—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><p>; or</p><level class="para1"><num>(g)</num><content><p>section 18A in the form of a condition imposed by the Commissioners under subsection (1) or (6) of that section,</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></paragraph><paragraph eId="schedule-3-paragraph-10" class="schProv1"><num>10</num><content><p><mod>In section 73 of the Value Added Tax Act 1994 the following subsections shall be added after subsection (7)—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(7A)</num><content><p>Where a fiscal warehousekeeper has failed to pay VAT required by the Commissioners under section 18E(2), the Commissioners may assess to the best of their judgment the amount of that VAT due from him and notify it to him.</p></content></subsection><subsection><num>(7B)</num><content><p>Where it appears to the Commissioners that goods have been removed from a warehouse or fiscal warehouse without payment of the VAT payable under section 18(4) or section 18D on that removal, they may assess to the best of their judgment the amount of VAT due from the person removing the goods or other person liable and notify it to him.</p></content></subsection></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-3-paragraph-11" class="schProv1"><num>11</num><content><p>In sections 73(9) and 76(5) of the Value Added Tax Act 1994 for the words “or (7)” there shall be substituted “, (7), (7A) or (7B)”.</p></content></paragraph><paragraph eId="schedule-3-paragraph-12" class="schProv1"><num>12</num><content><p><mod>In section 83 of the Value Added Tax Act 1994 the following paragraph shall be added after paragraph (d)—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(da)</num><intro><p>a decision of the Commissioners under section 18A—</p></intro><level class="para2"><num>(i)</num><content><p>as to whether or not a person is to be approved as a fiscal warehousekeeper or the conditions from time to time subject to which he is so approved;</p></content></level><level class="para2"><num>(ii)</num><content><p>for the withdrawal of any such approval; or</p></content></level><level class="para2"><num>(iii)</num><content><p>for the withdrawal of fiscal warehouse status from any premises;</p></content></level></level></quotedStructure><inline name="appendText">,</inline></mod></p><p>and in paragraph (p)(ii) for “subsection (7)” there shall be substituted “subsections (7), (7A) or (7B)”.</p></content></paragraph><paragraph eId="schedule-3-paragraph-13" class="schProv1"><num>13</num><content><p><mod>In paragraph 1 of Schedule 1 to the Value Added Tax Act 1994, the following sub-paragraph shall be added after sub-paragraph (8)—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><subparagraph><num>(9)</num><content><p>In determining the value of a person’s supplies for the purposes of sub-paragraph (1) or (2) above, supplies to which section 18B(4) (last acquisition or supply of goods before removal from fiscal warehousing) applies and supplies treated as made by him under section 18C(3) (self-supply of services on removal of goods from warehousing) shall be disregarded.</p></content></subparagraph></quotedStructure><inline name="appendText">.</inline></mod></p></content></paragraph><paragraph eId="schedule-3-paragraph-14" class="schProv1"><num>14</num><content><p><mod>In paragraph 1 of Schedule 2 to the Value Added Tax Act 1994, the following sub-paragraph shall be added after sub-paragraph (6)—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><subparagraph><num>(7)</num><content><p>For the purposes of sub-paragraphs (1) and (2) above supplies to which section 18B(4) (last acquisition or supply of goods before removal from fiscal warehousing) applies shall be disregarded.</p></content></subparagraph></quotedStructure><inline name="appendText">.</inline></mod></p></content></paragraph><paragraph eId="schedule-3-paragraph-15" class="schProv1"><num>15</num><content><p><mod>In paragraph 1 of Schedule 3 to the <noteRef href="#m00191" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Value Added Tax Act 1994, the following sub-paragraph shall be added after sub-paragraph (5)—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><subparagraph><num>(6)</num><content><p>In determining the value of a person’s acquisitions for the purposes of sub-paragraph (1) or (2) above, acquisitions to which section 18(B)(4) (last acquisition or supply of goods before removal from fiscal warehousing) applies shall be disregarded.</p></content></subparagraph></quotedStructure><inline name="appendText">.</inline></mod></p></content></paragraph><paragraph eId="schedule-3-paragraph-16" class="schProv1"><num>16</num><content><p>In paragraph 8(1) of Schedule 11 to the Value Added Tax Act 1994 after the words “another member State” there shall be inserted the words “, or in the possession of a fiscal warehousekeeper,”.</p></content></paragraph><paragraph eId="schedule-3-paragraph-17" class="schProv1"><num>17</num><content><p>In paragraph 10(2) of Schedule 11 to the Value Added Tax Act 1994, after the words “on those premises” there shall be inserted the words “, or that any premises are used as a fiscal warehouse,”.</p></content></paragraph><paragraph eId="schedule-3-paragraph-18" class="schProv1"><num>18</num><content><p><mod>The following Schedule shall be added to the Value Added Tax Act 1994.<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><hcontainer name="schedule"><num>SCHEDULE 5A<authorialNote class="referenceNote"><p>Section 60.</p></authorialNote></num><heading>Goods Eligible to be Fiscally Warehoused</heading><content><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml" summary="Goods Eligible to be Fiscally Warehoused: This table displays the Description of goods and corresponding Combined nomenclature code of the European Communities."><default:thead><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Description of goods</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Combined nomenclature code of the European Communities</p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Tin</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">8001</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Copper</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">7402</p></default:td></default:tr><default:tr><default:td/><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">7403</p></default:td></default:tr><default:tr><default:td/><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">7405</p></default:td></default:tr><default:tr><default:td/><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">7408</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Zinc</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">7901</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Nickel</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">7502</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Aluminium</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">7601</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Lead</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">7801</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Indium</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">ex 811291</p></default:td></default:tr><default:tr><default:td/><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">ex 811299</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Cereals</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1001 to 1005</p></default:td></default:tr><default:tr><default:td/><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1006: unprocessed rice only</p></default:td></default:tr><default:tr><default:td/><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1007 to 1008</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Oil seeds and oleaginous fruit</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1201 to 1207</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Coconuts, Brazil nuts and cashew nuts</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">0801</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Other nuts</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">0502</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Olives</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">071120</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Grains and seeds (including soya beans)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1201 to 1207</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Coffee, not roasted</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">0901 11 00</p></default:td></default:tr><default:tr><default:td/><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">0901 12 00</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Tea</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">0902</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Cocoa beans, whole or broken, raw or roasted</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1801</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Raw sugar</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1701 11</p></default:td></default:tr><default:tr><default:td/><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1701 12</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Rubber, in primary forms or in plates, sheets or strip</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4001</p></default:td></default:tr><default:tr><default:td/><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4002</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Wool</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5101</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Chemicals in bulk</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Chapters 28 and 29</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Mineral oils (including propane and butane; also including crude petroleum oils)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2709</p></default:td></default:tr><default:tr><default:td/><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2710</p></default:td></default:tr><default:tr><default:td/><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2711 12</p></default:td></default:tr><default:tr><default:td/><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2711 13</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Silver</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">7106</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Platinum (palladium, rhodium)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">7110 11 00</p></default:td></default:tr><default:tr><default:td/><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">7110 21 00</p></default:td></default:tr><default:tr><default:td/><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">7110 31 00</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Potatoes</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">0701</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Vegetable oils and fats and their fractions, whether or not refined, but not chemically modified</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1507 to 1515</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></content></hcontainer></quotedStructure></mod></p></content></paragraph></hcontainer>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-3-paragraph-1" class="schProv1"><num>1</num><content><p>In subsection (1) of section 6 of the <noteRef href="#m00187" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Value Added Tax Act 1994, for the words “section 18” there shall be substituted the words “sections 18, 18B and 18C”.</p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-3-paragraph-2" class="schProv1"><num>2</num><content><p>In subsection (1) of section 7 of the Value Added Tax Act 1994, for the words “sections 14 and 18” there shall be substituted the words “sections 14, 18 and 18B”.</p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-3-paragraph-3" class="schProv1"><num>3</num><content><p>In subsection (1) of section 12 of the Value Added Tax Act 1994, for the words “section 18” there shall be substituted “sections 18 and 18B”.</p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-3-paragraph-4" class="schProv1"><num>4</num><content><p>In subsection (1) of section 13 of the Value Added Tax Act 1994, for the words “section 18” there shall be substituted “sections 18 and 18B”.</p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-3-paragraph-5" class="schProv1"><num>5</num><content><p><mod>The following sections shall be inserted in the Value Added Tax Act 1994 after section 18.<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>18A</num><heading>Fiscal warehousing</heading><subsection><num>(1)</num><content><p>The Commissioners may, if it appears to them proper, upon application approve any registered person as a fiscal warehousekeeper; and such approval shall be subject to such conditions as they shall impose.</p></content></subsection><subsection><num>(2)</num><content><p>Subject to those conditions and to regulations made under section 18F such a person shall be entitled to keep a fiscal warehouse.</p></content></subsection><subsection><num>(3)</num><content><p>“Fiscal warehouse” means such place in the United Kingdom in the occupation or under the control of the fiscal warehousekeeper, not being retail premises, as he shall notify to the Commissioners in writing; and such a place shall become a fiscal warehouse on receipt by the Commissioners of that notification or on the date stated in it as the date from which it is to have effect, whichever is the later, and, subject to subsection (6) below, shall remain a fiscal warehouse so long as it is in the occupation or under the control of the fiscal warehousekeeper or until he shall notify the Commissioners in writing that it is to cease to be a fiscal warehouse.</p></content></subsection><subsection><num>(4)</num><intro><p>The Commissioners may in considering an application by a person to be a fiscal warehousekeeper take into account any matter which they consider relevant, and may without prejudice to the generality of that provision take into account all or any one or more of the following—</p></intro><level class="para1"><num>(a)</num><content><p>his record of compliance and ability to comply with the requirements of this Act and regulations made hereunder;</p></content></level><level class="para1"><num>(b)</num><content><p>his record of compliance and ability to comply with the requirements of the customs and excise Acts (as defined in the Management Act) and regulations made thereunder;</p></content></level><level class="para1"><num>(c)</num><content><p>his record of compliance and ability to comply with Community customs provisions;</p></content></level><level class="para1"><num>(d)</num><content><p>his record of compliance and ability to comply with the requirements of other member States relating to VAT and duties equivalent to duties of excise;</p></content></level><level class="para1"><num>(e)</num><content><p>if the applicant is a company the records of compliance and ability to comply with the matters set out at (a) to (d) above of its directors, persons connected with its directors, its managing officers, any shadow directors or any of those persons, and, if it is a close company, the records of compliance and ability to comply with the matters set out at (a) to (d) above of the beneficial owners of the shares of the company or any of them; and</p></content></level><level class="para1"><num>(f)</num><content><p>if the applicant is an individual the records of compliance and ability to comply with the matters set out at (a) to (d) above of any company of which he is or has been a director, managing officer or shadow director or, in the case of a close company, a shareholder or the beneficial owner of shares,</p></content></level><wrapUp><p>and for the purposes of paragraphs (e) and (f) “connected” shall have the meaning given by section 24(7), “managing officer” the meaning given by section 61(6), “shadow director” the meaning given by section 741(2) of the <noteRef href="#m00188" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Companies Act 1985 and “close company” the meaning given by the Taxes Act.</p></wrapUp></subsection><subsection><num>(5)</num><content><p>Subject to subsection (6) below, a person approved under subsection (1) shall remain a fiscal warehousekeeper until he ceases to be a registered person or until he shall notify the Commissioners in writing that he is to cease to be a fiscal warehousekeeper.</p></content></subsection><subsection><num>(6)</num><intro><p>The Commissioners may if they consider it appropriate from time to time—</p></intro><level class="para1"><num>(a)</num><content><p>impose conditions on a fiscal warehousekeeper in addition to those conditions, if any, which they imposed under subsection (1), and vary or revoke any conditions previously imposed;</p></content></level><level class="para1"><num>(b)</num><content><p>withdraw approval of any person as a fiscal warehousekeeper, and</p></content></level><level class="para1"><num>(c)</num><content><p>withdraw fiscal warehouse status from any premises.</p></content></level></subsection><subsection><num>(7)</num><content><p>Any application by or on behalf of a person to be a fiscal warehousekeeper shall be in writing in such form as the Commissioners may direct and shall be accompanied by such information as they shall require.</p></content></subsection><subsection><num>(8)</num><content><p>Any approval by the Commissioners under subsection (1) above, and any withdrawal of approval or other act by them under subsection (6) above, shall be notified by them to the fiscal warehousekeeper in writing and shall take effect on such notification being made or on any later date specified for the purpose in the notification.</p></content></subsection><subsection><num>(9)</num><content><p>Without prejudice to the provisions of section 43 concerning liability for VAT, in subsections (1) and (2) above “registered person” includes any body corporate which under that section is for the time being treated as a member of a group.</p></content></subsection></section><section><num>18B</num><heading>Fiscally warehoused goods: relief</heading><subsection><num>(1)</num><intro><p>Subsections (3) and (4) below apply where—</p></intro><level class="para1"><num>(a)</num><content><p>there is an acquisition of goods from another member State;</p></content></level><level class="para1"><num>(b)</num><content><p>those goods are eligible goods;</p></content></level><level class="para1"><num>(c)</num><intro><p>either—</p></intro><level class="para2"><num>(i)</num><content><p>the acquisition takes place while the goods are subject to a fiscal warehousing regime; or</p></content></level><level class="para2"><num>(ii)</num><content><p>after the acquisition but before the supply, if any, of those goods which next occurs, the acquirer causes the goods to be placed in a fiscal warehousing regime; and</p></content></level></level><level class="para1"><num>(d)</num><content><p>the acquirer, not later than the time of the acquisition, prepares and keeps a certificate that the goods are subject to a fiscal warehousing regime, or (as the case may be) that he will cause paragraph (c)(ii) above to be satisfied; and the certificate shall be in such form and be kept for such period as the Commissioners may by regulations specify.</p></content></level></subsection><subsection><num>(2)</num><intro><p>Subsections (3) and (4) below also apply where—</p></intro><level class="para1"><num>(a)</num><content><p>there is a supply of goods;</p></content></level><level class="para1"><num>(b)</num><content><p>those goods are eligible goods;</p></content></level><level class="para1"><num>(c)</num><intro><p>either—</p></intro><level class="para2"><num>(i)</num><content><p>that supply takes place while the goods are subject to a fiscal warehousing regime; or</p></content></level><level class="para2"><num>(ii)</num><content><p>after that supply but before the supply, if any, of those goods which next occurs, the person to whom the former supply is made causes the goods to be placed in a fiscal warehousing regime;</p></content></level></level><level class="para1"><num>(d)</num><content><p>in a case falling within paragraph (c)(ii) above, the person to whom the supply is made gives the supplier, not later than the time of the supply, a certificate in such form as the Commissioners may by regulations specify that he will cause paragraph (c)(ii) to be satisfied; and</p></content></level><level class="para1"><num>(e)</num><content><p>the supply is not a retail transaction.</p></content></level></subsection><subsection><num>(3)</num><content><p>The acquisition or supply in question shall be treated for the purposes of this Act as taking place outside the United Kingdom if any subsequent supply of those goods is while they are subject to the fiscal warehousing regime.</p></content></subsection><subsection><num>(4)</num><content><p>Where subsection (3) does not apply and the acquisition or supply in question falls, for the purposes of this Act, to be treated as taking place in the United Kingdom, that acquisition or supply shall be treated for the purposes of this Act as taking place when the goods are removed from the fiscal warehousing regime.</p></content></subsection><subsection><num>(5)</num><intro><p>Where—</p></intro><level class="para1"><num>(a)</num><content><p>subsection (4) above applies to an acquisition or a supply,</p></content></level><level class="para1"><num>(b)</num><content><p>the acquisition or supply is taxable and not zero-rated, and</p></content></level><level class="para1"><num>(c)</num><content><p>the acquirer or supplier is not a taxable person but would be were it not for paragraph 1(9) of Schedule 1, paragraph 1(7) of Schedule 2 and paragraph 1(6) of Schedule 3, or any of those provisions,</p></content></level><wrapUp><p>VAT shall be chargeable on that acquisition or supply notwithstanding that the acquirer or the supplier is not a taxable person.</p></wrapUp></subsection><subsection><num>(6)</num><intro><p>In this section “eligible goods” means goods—</p></intro><level class="para1"><num>(a)</num><content><p>of a description falling within Schedule 5A;</p></content></level><level class="para1"><num>(b)</num><content><p>upon which any import duties, as defined in article 4(10) of the Community Customs Code of 12th October 1992 (Council Regulation (EEC) No.2913/92), either have been paid or have been deferred under article 224 of that Code or regulations made under section 45 of the Management Act;</p></content></level><level class="para1"><num>(c)</num><content><p>(in the case of goods imported from a place outside the member States) upon which any VAT chargeable under section 1(1)(c) has been either paid or deferred in accordance with Community customs provisions, and</p></content></level><level class="para1"><num>(d)</num><content><p>(in the case of goods subject to a duty of excise) upon which that duty has been either paid or deferred under section 127A of the Management Act.</p></content></level></subsection><subsection><num>(7)</num><content><p>For the purposes of this section, apart from subsection (4), an acquisition or supply shall be treated as taking place at the material time for the acquisition or supply.</p></content></subsection><subsection><num>(8)</num><content><p>The Treasury may by order vary Schedule 5A by adding to or deleting from it any goods or varying any description of any goods.</p></content></subsection></section><section><num>18C</num><heading>Warehouses and fiscal warehouses: services</heading><subsection><num>(1)</num><intro><p>Where—</p></intro><level class="para1"><num>(a)</num><content><p>a taxable person makes a supply of specified services;</p></content></level><level class="para1"><num>(b)</num><content><p>those services are wholly performed on or in relation to goods while those goods are subject to a warehousing or fiscal warehousing regime;</p></content></level><level class="para1"><num>(c)</num><content><p>(except where the services are the supply by an occupier of a warehouse or a fiscal warehousekeeper of warehousing or fiscally warehousing the goods) the person to whom the supply is made gives the supplier a certificate, in such a form as the Commissioners may by regulations specify, that the services are so performed;</p></content></level><level class="para1"><num>(d)</num><content><p>the supply of services would (apart from this section) be taxable and not zero-rated; and</p></content></level><level class="para1"><num>(e)</num><content><p>the supplier issues to the person to whom the supply is made an invoice of such a description as the Commissioners may by regulations prescribe,</p></content></level><wrapUp><p>his supply shall be zero-rated.</p></wrapUp></subsection><subsection><num>(2)</num><intro><p>If a supply of services is zero-rated under subsection (1) above (“the zero-rated supply of services”) then, unless there is a supply of the goods in question the material time for which is—</p></intro><level class="para1"><num>(a)</num><content><p>while the goods are subject to a warehousing or fiscal warehousing regime, and</p></content></level><level class="para1"><num>(b)</num><content><p>after the material time for the zero-rated supply of services,</p></content></level><wrapUp><p>subsection (3) below shall apply.</p></wrapUp></subsection><subsection><num>(3)</num><intro><p>Where this subsection applies—</p></intro><level class="para1"><num>(a)</num><content><p>a supply of services identical to the zero-rated supply of services shall be treated for the purposes of this Act as being, at the time the goods are removed from the warehousing or fiscal warehousing regime or (if earlier) at the duty point, both made (for the purposes of his business) to the person to whom the zero-rated supply of services was actually made and made by him in the course or furtherance of his business,</p></content></level><level class="para1"><num>(b)</num><content><p>that supply shall have the same value as the zero-rated supply of services,</p></content></level><level class="para1"><num>(c)</num><content><p>that supply shall be a taxable (and not a zero-rated) supply, and</p></content></level><level class="para1"><num>(d)</num><content><p>VAT shall be charged on that supply even if the person treated as making it is not a taxable person.</p></content></level></subsection><subsection><num>(4)</num><intro><p>In this section “specified services” means—</p></intro><level class="para1"><num>(a)</num><content><p>services of an occupier of a warehouse or a fiscal warehousekeeper of keeping the goods in question in a warehousing or fiscal warehousing regime;</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to goods subject to a warehousing regime, services of carrying out on the goods operations which are permitted to be carried out under Community customs provisions or warehousing regulations as the case may be; and</p></content></level><level class="para1"><num>(c)</num><content><p>in relation to goods subject to a fiscal warehousing regime, services of carrying out on the goods any physical operations (other than any prohibited by regulations made under section 18F), for example, and without prejudice to the generality of the foregoing words, preservation and repacking operations.</p></content></level></subsection></section><section><num>18D</num><heading>Removal from warehousing: accountability</heading><subsection><num>(1)</num><content><p>This section applies to any supply to which section 18B(4) or section 18C(3) applies (supply treated as taking place on removal or duty point) and any acquisition to which section 18B(5) applies (acquisition treated as taking place on removal where acquirer not a taxable person).</p></content></subsection><subsection><num>(2)</num><intro><p>Any VAT payable on the supply or acquisition shall (subject to any regulations under subsection (3) below) be paid—</p></intro><level class="para1"><num>(a)</num><content><p>at the time when the supply or acquisition is treated as taking place under the section in question; and</p></content></level><level class="para1"><num>(b)</num><content><p>by the person by whom the goods are removed or, as the case may be, together with the excise duty, by the person who is required to pay that duty.</p></content></level></subsection><subsection><num>(3)</num><content><p>The Commissioners may by regulations make provision for enabling a taxable person to pay the VAT he is required to pay by virtue of subsection (2) above at a time later than that provided by that subsection; and they may make different provisions for different descriptions of taxable persons and for different descriptions of goods and services.</p></content></subsection></section><section><num>18E</num><heading>Deficiency in fiscally warehoused goods</heading><subsection><num>(1)</num><content><p>This section applies where goods have been subject to a fiscal warehousing regime and, before being lawfully removed from the fiscal warehouse, they are found to be missing or deficient.</p></content></subsection><subsection><num>(2)</num><content><p>In any case where this section applies, unless it is shown to the satisfaction of the Commissioners that the absence of or deficiency in the goods can be accounted for by natural waste or other legitimate cause, the Commissioners may require the fiscal warehousekeeper to pay immediately in respect of the missing goods or of the whole or any part of the deficiency, as they see fit, the VAT that would have been chargeable.</p></content></subsection><subsection><num>(3)</num><intro><p>In subsection (2) “VAT that would have been chargeable” means VAT that would have been chargeable on a supply of the missing goods, or the amount of goods by which the goods are deficient, taking place at the time immediately before the absence arose or the deficiency occurred, if the value of that supply were the open market value; but where that time cannot be ascertained to the Commissioners' satisfaction, that VAT shall be the greater of the amounts of VAT which would have been chargeable on a supply of those goods—</p></intro><level class="para1"><num>(a)</num><content><p>if the value of that supply were the highest open market value during the period (the relevant period) commencing when the goods were placed in the fiscal warehousing regime and ending when the absence or deficiency came to the notice of the Commissioners, or</p></content></level><level class="para1"><num>(b)</num><content><p>if the rate of VAT chargeable on that supply were the highest rate chargeable on a supply of such goods during the relevant period and the value of that supply were the highest open market value while that rate prevailed.</p></content></level></subsection><subsection><num>(4)</num><content><p>This section has effect without prejudice to any penalty incurred under any other provision of this Act or regulations made under it.</p></content></subsection></section><section><num>18F</num><heading>Sections 18A to 18E: supplementary</heading><subsection><num>(1)</num><intro><p>In sections 18A to 18E and this section—</p></intro><hcontainer name="definition"><content><p>“duty point” has the meaning given by section 18(6);</p></content></hcontainer><hcontainer name="definition"><content><p>“eligible goods” has the meaning given by section 18B(6);</p></content></hcontainer><hcontainer name="definition"><content><p>“fiscal warehouse” means a place notified to the Commissioners under section 18A(3) and from which such status has not been withdrawn;</p></content></hcontainer><hcontainer name="definition"><content><p>“fiscal warehousekeeper” means a person approved under section 18A(1);</p></content></hcontainer><hcontainer name="definition"><intro><p>“material time”—</p></intro><level class="para1"><num>(a)</num><content><p>in relation to any acquisition or supply the time of which is determined in accordance with regulations under section 6(14) or 12(3), means such time as may be prescribed for the purpose of this section by those regulations;</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to any other acquisition, means the time when the goods reach the destination to which they are despatched from the member State in question;</p></content></level><level class="para1"><num>(c)</num><content><p>in relation to any other supply of goods, means the time when the supply would be treated as taking place in accordance with subsection (2) of section 6 if paragraph (c) of that subsection were omitted; and</p></content></level><level class="para1"><num>(d)</num><content><p>in relation to any other supply of services, means the time when the services are performed;</p></content></level></hcontainer><hcontainer name="definition"><content><p>“warehouse”, except in the expression “fiscal warehouse”, has the meaning given by section 18(6);</p></content></hcontainer><hcontainer name="definition"><content><p>“warehousing regulations” has the same meaning as in the Management Act.</p></content></hcontainer></subsection><subsection><num>(2)</num><content><p>Any reference in sections 18A to 18E or this section to goods being subject to a fiscal warehousing regime is, subject to any regulations made under subsection (8)(e) below, a reference to eligible goods being kept in a fiscal warehouse or being transferred between fiscal warehouses in accordance with such regulations; and any reference to the removal of goods from a fiscal warehousing regime shall be construed accordingly.</p></content></subsection><subsection><num>(3)</num><content><p>Subject to subsection (2) above, any reference in sections 18C and 18D to goods being subject to a warehousing regime or to the removal of goods from a warehousing regime shall have the same meaning as in section 18(7).</p></content></subsection><subsection><num>(4)</num><content><p>Where as a result of an operation on eligible goods subject to a fiscal warehousing regime they change their nature but the resulting goods are also eligible goods, the provisions of sections 18B to 18E and this section shall apply as if the resulting goods were the original goods.</p></content></subsection><subsection><num>(5)</num><content><p>Where as a result of an operation on eligible goods subject to a fiscal warehousing regime they cease to be eligible goods, on their ceasing to be so sections 18B to 18E shall apply as if they had at that time been removed from the fiscal warehousing regime; and for that purpose the proprietor of the goods shall be treated as if he were the person removing them.</p></content></subsection><subsection><num>(6)</num><intro><p>Where—</p></intro><level class="para1"><num>(a)</num><content><p>any person ceases to be a fiscal warehousekeeper; or</p></content></level><level class="para1"><num>(b)</num><content><p>any premises cease to have fiscal warehouse status,</p></content></level><wrapUp><p>sections 18B to 18E and this section shall apply as if the goods of which he is the fiscal warehousekeeper, or the goods in the fiscal warehouse, as the case may be, had at that time been removed from the fiscal warehousing regime; and for that purpose the proprietor of the goods shall be treated as if he were the person removing them.</p></wrapUp></subsection><subsection><num>(7)</num><content><p>The Commissioners may make regulations governing the deposit, keeping, securing and treatment of goods in a fiscal warehouse, and the removal of goods from a fiscal warehouse.</p></content></subsection><subsection><num>(8)</num><intro><p>Regulations may, without prejudice to the generality of subsection (7) above, include provisions—</p></intro><level class="para1"><num>(a)</num><intro><p>in relation to—</p></intro><level class="para2"><num>(i)</num><content><p>goods which are, have been or are to be subject to a fiscal warehousing regime,</p></content></level><level class="para2"><num>(ii)</num><content><p>other goods which are, have been or are to be kept in fiscal warehouses,</p></content></level><level class="para2"><num>(iii)</num><content><p>fiscal warehouse premises, and</p></content></level><level class="para2"><num>(iv)</num><content><p>fiscal warehousekeepers and their businesses,</p></content></level><wrapUp><p>as to the keeping, preservation and production of records and the furnishing of returns and information by fiscal warehousekeepers and any other persons;</p></wrapUp></level><level class="para1"><num>(b)</num><content><p>requiring goods deposited in a fiscal warehouse to be produced to or made available for inspection by an authorised person on request by him;</p></content></level><level class="para1"><num>(c)</num><content><p>prohibiting the carrying out on fiscally warehoused goods of such operations as they may prescribe;</p></content></level><level class="para1"><num>(d)</num><content><p>regulating the transfer of goods from one fiscal warehouse to another;</p></content></level><level class="para1"><num>(e)</num><content><p>concerning goods which, though kept in a fiscal warehouse, are not eligible goods or are not intended by a relevant person to be goods in respect of which reliefs are to be enjoyed under sections 18A to 18E and this section;</p></content></level><level class="para1"><num>(f)</num><content><p>prohibiting the fiscal warehousekeeper from allowing goods to be removed from the fiscal warehousing regime without payment of any VAT payable under section 18D on or by reference to that removal and, if in breach of that prohibition he allows goods to be so removed, making him liable for the VAT jointly and severally with the remover,</p></content></level><wrapUp><p>and may contain such incidental or supplementary provisions as the Commissioners think necessary or expedient.</p></wrapUp></subsection><subsection><num>(9)</num><content><p>Regulations may make different provision for different cases, including different provision for different fiscal warehousekeepers or descriptions of fiscal warehousekeeper, for fiscal warehouses of different descriptions or for goods of different classes or descriptions or of the same class or description in different circumstances.</p></content></subsection></section></quotedStructure></mod></p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-3-paragraph-6" class="schProv1"><num>6</num><content><p>In subsection (1) of section 20 of the <noteRef href="#m00189" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Value Added Tax Act 1994, there shall be inserted at the beginning the words “Subject to section 18C,”.</p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-3-paragraph-7" class="schProv1"><num>7</num><content><p><mod>In section 30 of the Value Added Tax Act 1994 the following subsection shall be added after subsection (8)—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(8A)</num><intro><p>Regulations may provide for the zero-rating of supplies of goods, or of such goods as may be specified in regulations, in cases where—</p></intro><level class="para1"><num>(a)</num><intro><p>the Commissioners are satisfied that the supply in question involves both—</p></intro><level class="para2"><num>(i)</num><content><p>the removal of the goods from a fiscal warehousing regime within the meaning of section 18F(2); and</p></content></level><level class="para2"><num>(ii)</num><content><p>their being placed in a warehousing regime in another member State, or in such member State or States as may be prescribed, where that regime is established by provisions of the law of that member State corresponding, in relation to that member State, to the provisions of sections 18A and 18B; and</p></content></level></level><level class="para1"><num>(b)</num><content><p>such other conditions, if any, as may be specified in the regulations or the Commissioners may impose are fulfilled.</p></content></level></subsection></quotedStructure><inline name="appendText">,</inline></mod></p><p>and in subsection (10) for the words “subsection (8) or (9)” there shall be substituted the words “subsection (8), (8A) or (9)” and for the words “subsection (6), (8) or (9)”, there shall be substituted the words “subsection (6), (8), (8A) or (9)”.</p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-3-paragraph-8" class="schProv1"><num>8</num><subparagraph eId="schedule-3-paragraph-8-1"><num>(1)</num><content><p>Section 62 of the Value Added Tax Act 1994 shall be amended as follows.</p></content></subparagraph><subparagraph eId="schedule-3-paragraph-8-2"><num>(2)</num><content><p><mod>In paragraph (a) of subsection (1), after the words “a person” there shall be inserted the words “by whom one or more acquisitions or”, the words “or” at the end of sub-paragraph (i) and “and” at the end of sub-paragraph (ii) shall be omitted and the following additional sub-paragraphs shall be inserted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para2"><num>(iii)</num><content><p>prepares a certificate in accordance with section 18B(1)(d) or gives a supplier a certificate in accordance with section 18B(2)(d); or</p></content></level><level class="para2"><num>(iv)</num><content><p>gives the supplier a certificate in accordance with section 18C(1)(c); and</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-3-paragraph-8-3"><num>(3)</num><content><p>In the passage following paragraph (b) of subsection (1) and in subsections (3) and (4), after the word “giving” wherever it appears there shall be inserted the words “or preparing”.</p></content></subparagraph><subparagraph eId="schedule-3-paragraph-8-4"><num>(4)</num><content><p>In subsection (3) after the words “gave” and “given” there shall be inserted in each case the words “or prepared”.</p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-3-paragraph-9" class="schProv1"><num>9</num><content><p><mod>In subsection (1) of section 69 of the <noteRef href="#m00190" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Value Added Tax Act 1994 after paragraph (f) the following shall be added—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><p>; or</p><level class="para1"><num>(g)</num><content><p>section 18A in the form of a condition imposed by the Commissioners under subsection (1) or (6) of that section,</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-3-paragraph-10" class="schProv1"><num>10</num><content><p><mod>In section 73 of the Value Added Tax Act 1994 the following subsections shall be added after subsection (7)—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(7A)</num><content><p>Where a fiscal warehousekeeper has failed to pay VAT required by the Commissioners under section 18E(2), the Commissioners may assess to the best of their judgment the amount of that VAT due from him and notify it to him.</p></content></subsection><subsection><num>(7B)</num><content><p>Where it appears to the Commissioners that goods have been removed from a warehouse or fiscal warehouse without payment of the VAT payable under section 18(4) or section 18D on that removal, they may assess to the best of their judgment the amount of VAT due from the person removing the goods or other person liable and notify it to him.</p></content></subsection></quotedStructure></mod></p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-3-paragraph-11" class="schProv1"><num>11</num><content><p>In sections 73(9) and 76(5) of the Value Added Tax Act 1994 for the words “or (7)” there shall be substituted “, (7), (7A) or (7B)”.</p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-3-paragraph-12" class="schProv1"><num>12</num><content><p><mod>In section 83 of the Value Added Tax Act 1994 the following paragraph shall be added after paragraph (d)—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(da)</num><intro><p>a decision of the Commissioners under section 18A—</p></intro><level class="para2"><num>(i)</num><content><p>as to whether or not a person is to be approved as a fiscal warehousekeeper or the conditions from time to time subject to which he is so approved;</p></content></level><level class="para2"><num>(ii)</num><content><p>for the withdrawal of any such approval; or</p></content></level><level class="para2"><num>(iii)</num><content><p>for the withdrawal of fiscal warehouse status from any premises;</p></content></level></level></quotedStructure><inline name="appendText">,</inline></mod></p><p>and in paragraph (p)(ii) for “subsection (7)” there shall be substituted “subsections (7), (7A) or (7B)”.</p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-3-paragraph-13" class="schProv1"><num>13</num><content><p><mod>In paragraph 1 of Schedule 1 to the Value Added Tax Act 1994, the following sub-paragraph shall be added after sub-paragraph (8)—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><subparagraph><num>(9)</num><content><p>In determining the value of a person’s supplies for the purposes of sub-paragraph (1) or (2) above, supplies to which section 18B(4) (last acquisition or supply of goods before removal from fiscal warehousing) applies and supplies treated as made by him under section 18C(3) (self-supply of services on removal of goods from warehousing) shall be disregarded.</p></content></subparagraph></quotedStructure><inline name="appendText">.</inline></mod></p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-3-paragraph-14" class="schProv1"><num>14</num><content><p><mod>In paragraph 1 of Schedule 2 to the Value Added Tax Act 1994, the following sub-paragraph shall be added after sub-paragraph (6)—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><subparagraph><num>(7)</num><content><p>For the purposes of sub-paragraphs (1) and (2) above supplies to which section 18B(4) (last acquisition or supply of goods before removal from fiscal warehousing) applies shall be disregarded.</p></content></subparagraph></quotedStructure><inline name="appendText">.</inline></mod></p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-3-paragraph-15" class="schProv1"><num>15</num><content><p><mod>In paragraph 1 of Schedule 3 to the <noteRef href="#m00191" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Value Added Tax Act 1994, the following sub-paragraph shall be added after sub-paragraph (5)—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><subparagraph><num>(6)</num><content><p>In determining the value of a person’s acquisitions for the purposes of sub-paragraph (1) or (2) above, acquisitions to which section 18(B)(4) (last acquisition or supply of goods before removal from fiscal warehousing) applies shall be disregarded.</p></content></subparagraph></quotedStructure><inline name="appendText">.</inline></mod></p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-3-paragraph-16" class="schProv1"><num>16</num><content><p>In paragraph 8(1) of Schedule 11 to the Value Added Tax Act 1994 after the words “another member State” there shall be inserted the words “, or in the possession of a fiscal warehousekeeper,”.</p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-3-paragraph-17" class="schProv1"><num>17</num><content><p>In paragraph 10(2) of Schedule 11 to the Value Added Tax Act 1994, after the words “on those premises” there shall be inserted the words “, or that any premises are used as a fiscal warehouse,”.</p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:default="http://www.w3.org/1999/xhtml" eId="schedule-3-paragraph-18" class="schProv1"><num>18</num><content><p><mod>The following Schedule shall be added to the Value Added Tax Act 1994.<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><hcontainer name="schedule"><num>SCHEDULE 5A<authorialNote class="referenceNote"><p>Section 60.</p></authorialNote></num><heading>Goods Eligible to be Fiscally Warehoused</heading><content><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml" summary="Goods Eligible to be Fiscally Warehoused: This table displays the Description of goods and corresponding Combined nomenclature code of the European Communities."><default:thead><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Description of goods</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Combined nomenclature code of the European Communities</p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Tin</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">8001</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Copper</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">7402</p></default:td></default:tr><default:tr><default:td/><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">7403</p></default:td></default:tr><default:tr><default:td/><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">7405</p></default:td></default:tr><default:tr><default:td/><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">7408</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Zinc</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">7901</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Nickel</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">7502</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Aluminium</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">7601</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Lead</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">7801</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Indium</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">ex 811291</p></default:td></default:tr><default:tr><default:td/><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">ex 811299</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Cereals</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1001 to 1005</p></default:td></default:tr><default:tr><default:td/><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1006: unprocessed rice only</p></default:td></default:tr><default:tr><default:td/><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1007 to 1008</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Oil seeds and oleaginous fruit</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1201 to 1207</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Coconuts, Brazil nuts and cashew nuts</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">0801</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Other nuts</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">0502</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Olives</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">071120</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Grains and seeds (including soya beans)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1201 to 1207</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Coffee, not roasted</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">0901 11 00</p></default:td></default:tr><default:tr><default:td/><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">0901 12 00</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Tea</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">0902</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Cocoa beans, whole or broken, raw or roasted</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1801</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Raw sugar</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1701 11</p></default:td></default:tr><default:tr><default:td/><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1701 12</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Rubber, in primary forms or in plates, sheets or strip</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4001</p></default:td></default:tr><default:tr><default:td/><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">4002</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Wool</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">5101</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Chemicals in bulk</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Chapters 28 and 29</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Mineral oils (including propane and butane; also including crude petroleum oils)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2709</p></default:td></default:tr><default:tr><default:td/><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2710</p></default:td></default:tr><default:tr><default:td/><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2711 12</p></default:td></default:tr><default:tr><default:td/><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">2711 13</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Silver</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">7106</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Platinum (palladium, rhodium)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">7110 11 00</p></default:td></default:tr><default:tr><default:td/><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">7110 21 00</p></default:td></default:tr><default:tr><default:td/><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">7110 31 00</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Potatoes</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">0701</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Vegetable oils and fats and their fractions, whether or not refined, but not chemically modified</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">1507 to 1515</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></content></hcontainer></quotedStructure></mod></p></content></paragraph>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="schedule" eId="schedule-4"><num>SCHEDULE 4<authorialNote class="referenceNote"><p>Section 31.</p></authorialNote></num><heading>Value added tax: anti-avoidance provisions</heading><content><p>The following is the Schedule which shall be inserted after Schedule 9 to the <noteRef href="#m00192" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Value Added Tax Act 1994—</p><p><mod><quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><hcontainer name="schedule"><num>SCHEDULE 9A</num><heading>Anti-avoidance provisions: groups</heading><hcontainer name="crossheading" ukl:Name="Pblock"><heading>Power to give directions</heading><paragraph class="schProv1"><num>1</num><subparagraph><num>(1)</num><intro><p>Subject to paragraph 2 below, the Commissioners may give a direction under this Schedule if, in any case—</p></intro><level class="para1"><num>(a)</num><content><p>a relevant event has occurred;</p></content></level><level class="para1"><num>(b)</num><content><p>the condition specified in sub-paragraph (3) below is fulfilled;</p></content></level><level class="para1"><num>(c)</num><content><p>that condition would not be fulfilled apart from the occurrence of that event; and</p></content></level><level class="para1"><num>(d)</num><content><p>in the case of an event falling within sub-paragraph (2)(b) below, the transaction in question is not a supply which is the only supply by reference to which the case falls within paragraphs (a) to (c) above.</p></content></level></subparagraph><subparagraph><num>(2)</num><intro><p>For the purposes of this Schedule, a relevant event occurs when a body corporate—</p></intro><level class="para1"><num>(a)</num><content><p>begins to be, or ceases to be, treated as a member of a group; or</p></content></level><level class="para1"><num>(b)</num><content><p>enters into any transaction.</p></content></level></subparagraph><subparagraph><num>(3)</num><intro><p>The condition mentioned in sub-paragraph (1) above is that—</p></intro><level class="para1"><num>(a)</num><content><p>there has been, or will or may be, a taxable supply on which VAT has been, or will or may be, charged otherwise than by reference to the supply’s full value;</p></content></level><level class="para1"><num>(b)</num><content><p>there is at least a part of the supply which is not or, as the case may be, would not be zero-rated; and</p></content></level><level class="para1"><num>(c)</num><content><p>the charging of VAT on the supply otherwise than by reference to its full value gives rise or, as the case may be, would give rise to a tax advantage.</p></content></level></subparagraph><subparagraph><num>(4)</num><intro><p>For the purposes of this paragraph the charging of VAT on a supply (“the undercharged supply”) otherwise than by reference to its full value shall be taken to give rise to a tax advantage if, and only if, a person has become entitled—</p></intro><level class="para1"><num>(a)</num><content><p>to credit for input tax allowable as attributable to that supply or any part of it, or</p></content></level><level class="para1"><num>(b)</num><content><p>in accordance with regulations under section 39, to any repayment in respect of that supply or any part of it.</p></content></level></subparagraph><subparagraph><num>(5)</num><intro><p>The cases where a person shall be taken for the purposes of sub-paragraph (4) above to have become entitled to a credit for input tax allowable as attributable to the undercharged supply, or to a part of it, shall include any case where—</p></intro><level class="para1"><num>(a)</num><content><p>a person has become entitled to a credit for any input tax on the supply to him, or the acquisition or importation by him, of any goods or services; and</p></content></level><level class="para1"><num>(b)</num><content><p>whatever the supplies to which the credit was treated as attributable when the entitlement to it arose, those goods or services are used by him in making the undercharged supply, or a part of it.</p></content></level></subparagraph><subparagraph><num>(6)</num><intro><p>For the purposes of sub-paragraphs (4) and (5) above where—</p></intro><level class="para1"><num>(a)</num><content><p>there is a supply of any of the assets of a business of a person (“the transferor”) to a person to whom the whole or any part of that business is transferred as a going concern (“the transferee”), and</p></content></level><level class="para1"><num>(b)</num><content><p>that supply is treated, in accordance with an order under section 5(3), as being neither a supply of goods nor a supply of services,</p></content></level><wrapUp><p>the question, so far as it falls to be determined by reference to those assets, whether a credit for input tax to which any person has become entitled is one allowable as attributable to the whole or any part of a supply shall be determined as if the transferor and the transferee were the same person.</p></wrapUp></subparagraph><subparagraph><num>(7)</num><content><p>Where, in a case to which sub-paragraph (6) above applies, the transferor himself acquired any of the assets in question by way of a supply falling within paragraphs (a) and (b) of that sub-paragraph, that sub-paragraph shall have the effect, as respects the assets so acquired, of requiring the person from whom those assets were acquired to be treated for the purposes of sub-paragraphs (4) and (5) above as the same person as the transferor and the transferee, and so on in the case of any number of successive supplies falling within those paragraphs.</p></content></subparagraph><subparagraph><num>(8)</num><intro><p>For the purposes of this paragraph any question—</p></intro><level class="para1"><num>(a)</num><content><p>whether any credit for input tax to which a person has become entitled was, or is to be taken to have been, a credit allowable as attributable to the whole or any part of a supply, or</p></content></level><level class="para1"><num>(b)</num><content><p>whether any repayment is a repayment in respect of the whole or any part of a supply,</p></content></level><wrapUp><p>shall be determined, in relation to a supply of a right to goods or services or to a supply of goods or services by virtue of such a right, as if the supply of the right and supplies made by virtue of the right were a single supply of which the supply of the right and each of those supplies constituted different parts.</p></wrapUp></subparagraph><subparagraph><num>(9)</num><content><p>References in this paragraph to the full value of a supply are references to the amount which (having regard to any direction under paragraph 1 of Schedule 6) would be the full value of that supply for the purposes of the charge to VAT if that supply were not a supply falling to be disregarded, to any extent, in pursuance of section 43(1)(a).</p></content></subparagraph><subparagraph><num>(10)</num><content><p>References in this paragraph to the supply of a right to goods or services include references to the supply of any right, option or priority with respect to the supply of goods or services, and to the supply of an interest deriving from any right to goods or services.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock"><heading>Restrictions on giving directions</heading><paragraph class="schProv1"><num>2</num><intro><p>The Commissioners shall not give a direction under this Schedule by reference to a relevant event if they are satisfied that—</p></intro><level class="para1"><num>(a)</num><content><p>the change in the treatment of the body corporate, or</p></content></level><level class="para1"><num>(b)</num><content><p>the transaction in question,</p></content></level><wrapUp><p>had as its main purpose or, as the case may be, as each of its main purposes a genuine commercial purpose unconnected with the fulfilment of the condition specified in paragraph 1(3) above.</p></wrapUp></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock"><heading>Form of directions under Schedule</heading><paragraph class="schProv1"><num>3</num><subparagraph><num>(1)</num><intro><p>The directions that may be given by the Commissioners under this Schedule are either—</p></intro><level class="para1"><num>(a)</num><content><p>a direction relating to any supply of goods or services that has been made, in whole or in part, by one body corporate to another; or</p></content></level><level class="para1"><num>(b)</num><content><p>a direction relating to a particular body corporate.</p></content></level></subparagraph><subparagraph><num>(2)</num><content><p>A direction under this Schedule relating to a supply shall require it to be assumed (where it would not otherwise be the case) that, to the extent described in the direction, the supply was not a supply falling to be disregarded in pursuance of section 43(1)(a).</p></content></subparagraph><subparagraph><num>(3)</num><intro><p>A direction under this Schedule relating to a body corporate shall require it to be assumed (where it would not otherwise be the case) that, for such period (comprising times before the giving of the direction or times afterwards or both) as may be described in the direction, the body corporate—</p></intro><level class="para1"><num>(a)</num><content><p>did not fall to be treated, or is not to be treated, as a member of a group, or of a particular group so described; or</p></content></level><level class="para1"><num>(b)</num><content><p>fell to be treated, or is to be treated, as a member of any group so described of which, for that period, it was or is eligible to be a member.</p></content></level></subparagraph><subparagraph><num>(4)</num><intro><p>Where a direction under this Schedule requires any assumptions to be made, then—</p></intro><level class="para1"><num>(a)</num><content><p>so far as the assumptions relate to times on or after the day on which the direction is given, this Act shall have effect in relation to such times in accordance with those assumptions; and</p></content></level><level class="para1"><num>(b)</num><content><p>paragraph 6 below shall apply for giving effect to those assumptions in so far as they relate to earlier times.</p></content></level></subparagraph><subparagraph><num>(5)</num><content><p>A direction falling within sub-paragraph (3)(b) above may identify in relation to any times or period the body corporate which is to be assumed to have been, or to be, the representative member of the group at those times or for that period.</p></content></subparagraph><subparagraph><num>(6)</num><content><p>A direction under this Schedule may vary the effect of a previous direction under this Schedule.</p></content></subparagraph><subparagraph><num>(7)</num><content><p>The Commissioners may at any time, by notice in writing to the person to whom it was given, withdraw a direction under this Schedule.</p></content></subparagraph><subparagraph><num>(8)</num><content><p>The refusal or non-refusal by the Commissioners of an application under section 43 shall not prejudice the power of the Commissioners to give a direction under this Schedule requiring any case to be assumed to be what it would have been had the application not been refused or, as the case may be, had it been refused.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock"><heading>Time limit on directions</heading><paragraph class="schProv1"><num>4</num><subparagraph><num>(1)</num><intro><p>A direction under this Schedule shall not be given more than six years after whichever is the later of—</p></intro><level class="para1"><num>(a)</num><content><p>the occurrence of the relevant event by reference to which it is given; and</p></content></level><level class="para1"><num>(b)</num><content><p>the time when the relevant entitlement arose.</p></content></level></subparagraph><subparagraph><num>(2)</num><content><p>A direction under this Schedule shall not be given by reference to a relevant event occurring on or before 28th November 1995.</p></content></subparagraph><subparagraph><num>(3)</num><intro><p>Subject to sub-paragraphs (1) and (2) above, a direction under this Schedule—</p></intro><level class="para1"><num>(a)</num><content><p>may be given by reference to a relevant event occurring before the coming into force of this Schedule; and</p></content></level><level class="para1"><num>(b)</num><content><p>may require assumptions to be made in relation to times (including times before 29th November 1995) falling before the occurrence of the relevant event by reference to which the direction is given, or before the relevant entitlement arose.</p></content></level></subparagraph><subparagraph><num>(4)</num><content><p>For the purposes of this paragraph the reference, in relation to the giving of a direction, to the relevant entitlement is a reference to the entitlement by reference to which the requirements of paragraph 1(4) above are taken to be satisfied for the purposes of that direction.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock"><heading>Manner of giving directions</heading><paragraph class="schProv1"><num>5</num><subparagraph><num>(1)</num><intro><p>A direction under this Schedule relating to a supply may be given to—</p></intro><level class="para1"><num>(a)</num><content><p>the person who made the supply to which the direction relates; or</p></content></level><level class="para1"><num>(b)</num><content><p>any body corporate which, at the time when the direction is given, is the representative member of a group of which that person was treated as being a member at the time of the supply.</p></content></level></subparagraph><subparagraph><num>(2)</num><intro><p>A direction under this Schedule relating to a body corporate (“the relevant body”) may be given to that body or to any body corporate which at the time when the direction is given is, or in pursuance of the direction is to be treated as, the representative member of a group of which the relevant body—</p></intro><level class="para1"><num>(a)</num><content><p>is treated as being a member;</p></content></level><level class="para1"><num>(b)</num><content><p>was treated as being a member at a time to which the direction relates; or</p></content></level><level class="para1"><num>(c)</num><content><p>is to be treated as being, or having been, a member at any such time.</p></content></level></subparagraph><subparagraph><num>(3)</num><content><p>A direction given to any person under this Schedule shall be given to him by notice in writing.</p></content></subparagraph><subparagraph><num>(4)</num><content><p>A direction under this Schedule must specify the relevant event by reference to which it is given.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock"><heading>Assessment in consequence of a direction</heading><paragraph class="schProv1"><num>6</num><subparagraph><num>(1)</num><intro><p>Subject to sub-paragraph (3) below, where—</p></intro><level class="para1"><num>(a)</num><content><p>a direction is given under this Schedule, and</p></content></level><level class="para1"><num>(b)</num><content><p>there is an amount of VAT (“the unpaid tax”) for which a relevant person would have been liable before the giving of the direction if the facts had accorded with the assumptions specified in the direction,</p></content></level><wrapUp><p>the Commissioners may, to the best of their judgement, assess the amount of unpaid tax as tax due from the person to whom the direction was given or another relevant person and notify their assessment to that person.</p></wrapUp></subparagraph><subparagraph><num>(2)</num><intro><p>In sub-paragraph (1) above the reference to an amount of VAT for which a person would, on particular assumptions, have been liable before the giving of a direction under this Schedule is a reference to the aggregate of the following—</p></intro><level class="para1"><num>(a)</num><content><p>any amount of output tax which, on those assumptions but not otherwise, would have been due from a relevant person at the end of a prescribed accounting period ending before the giving of the direction;</p></content></level><level class="para1"><num>(b)</num><content><p>the amount of any credit for input tax to which a relevant person is treated as having been entitled at the end of such an accounting period but to which he would not have been entitled on those assumptions; and</p></content></level><level class="para1"><num>(c)</num><content><p>the amount of any repayment of tax made to a relevant person in accordance with regulations under section 39 but to which he would not have been entitled on those assumptions.</p></content></level></subparagraph><subparagraph><num>(3)</num><content><p>Where any assessment falls to be made under this paragraph in a case in which the Commissioners are satisfied that the actual revenue loss is less than the unpaid tax, the total amount to be assessed under this paragraph shall not exceed what appears to them, to the best of their judgement, to be the amount of that loss.</p></content></subparagraph><subparagraph><num>(4)</num><intro><p>For the purposes of the making of an assessment under this paragraph in relation to any direction, the actual revenue loss shall be taken to be equal to the amount of the unpaid tax less the amount given by aggregating the amounts of every entitlement—</p></intro><level class="para1"><num>(a)</num><content><p>to credit for input tax, or</p></content></level><level class="para1"><num>(b)</num><content><p>to a repayment in accordance with regulations under section 39,</p></content></level><wrapUp><p>which (whether as an entitlement of the person in relation to whom the assessment is made or as an entitlement of any other person) would have arisen on the assumptions contained in the direction, but not otherwise.</p></wrapUp></subparagraph><subparagraph><num>(5)</num><content><p>An assessment under this paragraph relating to a direction may be notified to the person to whom that direction is given by being incorporated in the same notice as that direction.</p></content></subparagraph><subparagraph><num>(6)</num><intro><p>An assessment under this paragraph shall not be made—</p></intro><level class="para1"><num>(a)</num><content><p>more than one year after the day on which the direction to which it relates was given, or</p></content></level><level class="para1"><num>(b)</num><content><p>in the case of any direction that has been withdrawn.</p></content></level></subparagraph><subparagraph><num>(7)</num><intro><p>Where an amount has been assessed on any person under this paragraph and notified to him—</p></intro><level class="para1"><num>(a)</num><content><p>that amount shall be deemed (subject to the provisions of this Act as to appeals) to be an amount of VAT due from him;</p></content></level><level class="para1"><num>(b)</num><content><p>that amount may be recovered accordingly, either from that person or, in the case of a body corporate that is for the time being treated as a member of a group, from the representative member of that group; and</p></content></level><level class="para1"><num>(c)</num><content><p>to the extent that more than one person is liable by virtue of any assessment under this paragraph in respect of the same amount of unpaid tax, those persons shall be treated as jointly and severally liable for that amount.</p></content></level></subparagraph><subparagraph><num>(8)</num><content><p>Sub-paragraph (7) above does not have effect if or to the extent that the assessment in question has been withdrawn or reduced.</p></content></subparagraph><subparagraph><num>(9)</num><content><p>Sections 74 and 77(6) apply in relation to assessments under this paragraph as they apply in relation to assessments under section 73 but as if the reference in subsection (1) of section 74 to the reckonable date were a reference to the date on which the assessment is notified.</p></content></subparagraph><subparagraph><num>(10)</num><intro><p>Where by virtue of sub-paragraph (9) above any person is liable to interest under section 74—</p></intro><level class="para1"><num>(a)</num><content><p>section 76 shall have effect in relation to that liability with the omission of subsections (2) to (6); and</p></content></level><level class="para1"><num>(b)</num><content><p>section 77, except subsection (6), shall not apply to an assessment of the amount due by way of interest;</p></content></level><wrapUp><p>and (without prejudice to the power to make assessments for interest for later periods) the interest to which any assessment made under section 76 by virtue of paragraph (a) above may relate shall be confined to interest for a period of no more than two years ending with the time when the assessment to interest is made.</p></wrapUp></subparagraph><subparagraph><num>(11)</num><intro><p>In this paragraph “a relevant person”, in relation to a direction, means—</p></intro><level class="para1"><num>(a)</num><content><p>the person to whom the direction is given;</p></content></level><level class="para1"><num>(b)</num><content><p>the body corporate which was the representative member of any group of which that person was treated as being, or in pursuance of the direction is to be treated as having been, a member at a time to which the assumption specified in the direction relates; or</p></content></level><level class="para1"><num>(c)</num><content><p>any body corporate which, in pursuance of the direction, is to be treated as having been the representative member of such a group.</p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock"><heading>Interpretation of Schedule etc.</heading><paragraph class="schProv1"><num>7</num><subparagraph><num>(1)</num><content><p>References in this Schedule to being treated as a member of a group and to being eligible to be treated as a member of a group shall be construed in accordance with section 43.</p></content></subparagraph><subparagraph><num>(2)</num><content><p>For the purposes of this Schedule the giving of any notice or notification to any receiver, liquidator or person otherwise acting in a representative capacity in relation to another shall be treated as the giving of a notice or, as the case may be, notification to the person in relation to whom he so acts.</p></content></subparagraph></paragraph></hcontainer></hcontainer></quotedStructure></mod></p></content></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="schedule" eId="schedule-5"><num>SCHEDULE 5</num><heading>Landfill Tax</heading><part eId="schedule-5-part-I"><num>Part I</num><heading>Information</heading><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-5-part-I-crossheading-general"><heading>General</heading><paragraph eId="schedule-5-paragraph-1" class="schProv1"><num>1</num><subparagraph eId="schedule-5-paragraph-1-1"><num>(1)</num><content><p>Every person who is concerned (in whatever capacity) with any landfill disposal shall furnish to the Commissioners such information relating to the disposal as the Commissioners may reasonably require.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-1-2"><num>(2)</num><content><p>The information mentioned in sub-paragraph (1) above shall be furnished within such time and in such form as the Commissioners may reasonably require.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-5-part-I-crossheading-records"><heading>Records</heading><paragraph eId="schedule-5-paragraph-2" class="schProv1"><num>2</num><subparagraph eId="schedule-5-paragraph-2-1"><num>(1)</num><content><p>Regulations may require registrable persons to make records.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-2-2"><num>(2)</num><content><p>Regulations under sub-paragraph (1) above may be framed by reference to such records as may be stipulated in any notice published by the Commissioners in pursuance of the regulations and not withdrawn by a further notice.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-2-3"><num>(3)</num><intro><p>Regulations may—</p></intro><level class="para1" eId="schedule-5-paragraph-2-3-a"><num>(a)</num><content><p>require registrable persons to preserve records of a prescribed description (whether or not the records are required to be made in pursuance of regulations) for such period not exceeding six years as may be specified in the regulations;</p></content></level><level class="para1" eId="schedule-5-paragraph-2-3-b"><num>(b)</num><content><p>authorise the Commissioners to direct that any such records need only be preserved for a shorter period than that specified in the regulations;</p></content></level><level class="para1" eId="schedule-5-paragraph-2-3-c"><num>(c)</num><content><p>authorise a direction to be made so as to apply generally or in such cases as the Commissioners may stipulate.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-2-4"><num>(4)</num><content><p>Any duty under regulations to preserve records may be discharged by the preservation of the information contained in them by such means as the Commissioners may approve; and where that information is so preserved a copy of any document forming part of the records shall (subject to the following provisions of this paragraph) be admissible in evidence in any proceedings, whether civil or criminal, to the same extent as the records themselves.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-2-5"><num>(5)</num><content><p>The Commissioners may, as a condition of approving under sub-paragraph (4) above any means of preserving information contained in any records, impose such reasonable requirements as appear to them necessary for securing that the information will be as readily available to them as if the records themselves had been preserved.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-2-6"><num>(6)</num><intro><p>A statement contained in a document produced by a computer shall not by virtue of sub-paragraph (4) above be admissible in evidence—</p></intro><level class="para1" eId="schedule-5-paragraph-2-6-a"><num>(a)</num><content><p>in criminal proceedings in England and Wales, except in accordance with sections 69 and 70 of the <noteRef href="#m00193" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Police and Criminal Evidence Act 1984 and Part II of the <noteRef href="#m00194" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Criminal Justice Act 1988;</p></content></level><level class="para1" eId="schedule-5-paragraph-2-6-b"><num>(b)</num><content><p>in civil proceedings in Scotland, except in accordance with sections 5 and 6 of the <noteRef href="#m00195" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Civil Evidence (Scotland) Act 1988;</p></content></level><level class="para1" eId="schedule-5-paragraph-2-6-c"><num>(c)</num><content><p>in criminal proceedings in Scotland, except in accordance with Schedule 8 to the <noteRef href="#m00196" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Criminal Procedure (Scotland) Act 1995;</p></content></level><level class="para1" eId="schedule-5-paragraph-2-6-d"><num>(d)</num><content><p>in civil proceedings in Northern Ireland, except in accordance with sections 2 and 3 of the <noteRef href="#m00197" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Civil Evidence Act (Northern Ireland) 1971;</p></content></level><level class="para1" eId="schedule-5-paragraph-2-6-e"><num>(e)</num><content><p>in criminal proceedings in Northern Ireland, except in accordance with Article 68 of the <noteRef href="#m00198" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Police and Criminal Evidence (Northern Ireland) Order 1989 and Part II of the <noteRef href="#m00199" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Criminal Justice (Evidence, Etc.) (Northern Ireland) Order 1988.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-2-7"><num>(7)</num><content><p>In the case of civil proceedings in England and Wales to which sections 5 and 6 of the <noteRef href="#m00200" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Civil Evidence Act 1968 apply, a statement contained in a document produced by a computer shall not be admissible in evidence by virtue of sub-paragraph (4) above except in accordance with those sections.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-5-part-I-crossheading-documents"><heading>Documents</heading><paragraph eId="schedule-5-paragraph-3" class="schProv1"><num>3</num><subparagraph eId="schedule-5-paragraph-3-1"><num>(1)</num><content><p>Every person who is concerned (in whatever capacity) with any landfill disposal shall upon demand made by an authorised person produce or cause to be produced for inspection by that person any documents relating to the disposal.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-3-2"><num>(2)</num><content><p>Where, by virtue of sub-paragraph (1) above, an authorised person has power to require the production of any documents from any person, he shall have the like power to require production of the documents concerned from any other person who appears to the authorised person to be in possession of them; but where any such other person claims a lien on any document produced by him, the production shall be without prejudice to the lien.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-3-3"><num>(3)</num><intro><p>The documents mentioned in sub-paragraphs (1) and (2) above shall be produced—</p></intro><level class="para1" eId="schedule-5-paragraph-3-3-a"><num>(a)</num><content><p>at such place as the authorised person may reasonably require, and</p></content></level><level class="para1" eId="schedule-5-paragraph-3-3-b"><num>(b)</num><content><p>at such time as the authorised person may reasonably require.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-3-4"><num>(4)</num><content><p>An authorised person may take copies of, or make extracts from, any document produced under sub-paragraph (1) or (2) above.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-3-5"><num>(5)</num><content><p>If it appears to him to be necessary to do so, an authorised person may, at a reasonable time and for a reasonable period, remove any document produced under sub-paragraph (1) or (2) above and shall, on request, provide a receipt for any document so removed; and where a lien is claimed on a document produced under sub-paragraph (2) above the removal of the document under this sub-paragraph shall not be regarded as breaking the lien.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-3-6"><num>(6)</num><content><p>Where a document removed by an authorised person under sub-paragraph (5) above is reasonably required for any purpose he shall, as soon as practicable, provide a copy of the document, free of charge, to the person by whom it was produced or caused to be produced.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-3-7"><num>(7)</num><content><p>Where any documents removed under the powers conferred by this paragraph are lost or damaged the Commissioners shall be liable to compensate their owner for any expenses reasonably incurred by him in replacing or repairing the documents.</p></content></subparagraph></paragraph></hcontainer></part><part eId="schedule-5-part-II"><num>Part II</num><heading>Powers</heading><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-5-part-II-crossheading-entry-and-inspection"><heading>Entry and inspection</heading><paragraph eId="schedule-5-paragraph-4" class="schProv1"><num>4</num><content><p>For the purpose of exercising any powers under this Part of this Act an authorised person may at any reasonable time enter and inspect premises used in connection with the carrying on of a business.</p></content></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-5-part-II-crossheading-entry-and-search"><heading>Entry and search</heading><paragraph eId="schedule-5-paragraph-5" class="schProv1"><num>5</num><subparagraph eId="schedule-5-paragraph-5-1"><num>(1)</num><intro><p>Where—</p></intro><level class="para1" eId="schedule-5-paragraph-5-1-a"><num>(a)</num><content><p>a justice of the peace is satisfied on information on oath that there is reasonable ground for suspecting that a fraud offence which appears to be of a serious nature is being, has been or is about to be committed on any premises or that evidence of the commission of such an offence is to be found there, or</p></content></level><level class="para1" eId="schedule-5-paragraph-5-1-b"><num>(b)</num><content><p>in Scotland a justice, within the meaning of section 307 of the <noteRef href="#m00201" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Criminal Procedure (Scotland) Act 1995, is satisfied by evidence on oath as mentioned in paragraph (a) above,</p></content></level><wrapUp><p>he may issue a warrant in writing authorising any authorised person to enter those premises, if necessary by force, at any time within one month from the time of the issue of the warrant and search them.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-5-2"><num>(2)</num><intro><p>A person who enters the premises under the authority of the warrant may—</p></intro><level class="para1" eId="schedule-5-paragraph-5-2-a"><num>(a)</num><content><p>take with him such other persons as appear to him to be necessary;</p></content></level><level class="para1" eId="schedule-5-paragraph-5-2-b"><num>(b)</num><content><p>seize and remove any documents or other things whatsoever found on the premises which he has reasonable cause to believe may be required as evidence for the purposes of proceedings in respect of a fraud offence which appears to him to be of a serious nature;</p></content></level><level class="para1" eId="schedule-5-paragraph-5-2-c"><num>(c)</num><content><p>search or cause to be searched any person found on the premises whom he has reasonable cause to believe to be in possession of any such documents or other things;</p></content></level><wrapUp><p>but no woman or girl shall be searched except by a woman.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-5-3"><num>(3)</num><intro><p>The powers conferred by a warrant under this paragraph shall not be exercisable—</p></intro><level class="para1" eId="schedule-5-paragraph-5-3-a"><num>(a)</num><content><p>by more than such number of authorised persons as may be specified in the warrant,</p></content></level><level class="para1" eId="schedule-5-paragraph-5-3-b"><num>(b)</num><content><p>outside such times of day as may be so specified, or</p></content></level><level class="para1" eId="schedule-5-paragraph-5-3-c"><num>(c)</num><content><p>if the warrant so provides, otherwise than in the presence of a constable in uniform.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-5-4"><num>(4)</num><intro><p>An authorised person seeking to exercise the powers conferred by a warrant under this paragraph or, if there is more than one such authorised person, that one of them who is in charge of the search shall provide a copy of the warrant endorsed with his name as follows—</p></intro><level class="para1" eId="schedule-5-paragraph-5-4-a"><num>(a)</num><content><p>if the occupier of the premises concerned is present at the time the search is to begin, the copy shall be supplied to the occupier;</p></content></level><level class="para1" eId="schedule-5-paragraph-5-4-b"><num>(b)</num><content><p>if at that time the occupier is not present but a person who appears to the authorised person to be in charge of the premises is present, the copy shall be supplied to that person;</p></content></level><level class="para1" eId="schedule-5-paragraph-5-4-c"><num>(c)</num><content><p>if neither paragraph (a) nor paragraph (b) above applies, the copy shall be left in a prominent place on the premises.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-5-5"><num>(5)</num><content><p>In this paragraph “a fraud offence” means an offence under any provision of paragraph 15(1) to (5) below.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-5-part-II-crossheading-arrest"><heading>Arrest</heading><paragraph eId="schedule-5-paragraph-6" class="schProv1"><num>6</num><subparagraph eId="schedule-5-paragraph-6-1"><num>(1)</num><content><p>Where an authorised person has reasonable grounds for suspecting that a fraud offence has been committed he may arrest anyone whom he has reasonable grounds for suspecting to be guilty of the offence.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-6-2"><num>(2)</num><content><p>In this paragraph “a fraud offence” means an offence under any provision of paragraph 15(1) to (5) below.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-5-part-II-crossheading-order-for-access-to-recorded-information-etc"><heading>Order for access to recorded information etc.</heading><paragraph eId="schedule-5-paragraph-7" class="schProv1"><num>7</num><subparagraph eId="schedule-5-paragraph-7-1"><num>(1)</num><intro><p>Where, on an application by an authorised person, a justice of the peace or, in Scotland, a justice (within the meaning of section 307 of the <noteRef href="#m00202" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Criminal Procedure (Scotland) Act 1995) is satisfied that there are reasonable grounds for believing—</p></intro><level class="para1" eId="schedule-5-paragraph-7-1-a"><num>(a)</num><content><p>that an offence in connection with tax is being, has been or is about to be committed, and</p></content></level><level class="para1" eId="schedule-5-paragraph-7-1-b"><num>(b)</num><content><p>that any recorded information (including any document of any nature whatsoever) which may be required as evidence for the purpose of any proceedings in respect of such an offence is in the possession of any person,</p></content></level><wrapUp><p>he may make an order under this paragraph.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-7-2"><num>(2)</num><intro><p>An order under this paragraph is an order that the person who appears to the justice to be in possession of the recorded information to which the application relates shall—</p></intro><level class="para1" eId="schedule-5-paragraph-7-2-a"><num>(a)</num><content><p>give an authorised person access to it, and</p></content></level><level class="para1" eId="schedule-5-paragraph-7-2-b"><num>(b)</num><content><p>permit an authorised person to remove and take away any of it which he reasonably considers necessary,</p></content></level><wrapUp><p>not later than the end of the period of 7 days beginning with the date of the order or the end of such longer period as the order may specify.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-7-3"><num>(3)</num><content><p>The reference in sub-paragraph (2)(a) above to giving an authorised person access to the recorded information to which the application relates includes a reference to permitting the authorised person to take copies of it or to make extracts from it.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-7-4"><num>(4)</num><content><p>Where the recorded information consists of information contained in a computer, an order under this paragraph shall have effect as an order to produce the information in a form in which it is visible and legible and, if the authorised person wishes to remove it, in a form in which it can be removed.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-7-5"><num>(5)</num><content><p>This paragraph is without prejudice to paragraphs 3 to 5 above.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-5-part-II-crossheading-removal-of-documents-etc"><heading>Removal of documents etc.</heading><paragraph eId="schedule-5-paragraph-8" class="schProv1"><num>8</num><subparagraph eId="schedule-5-paragraph-8-1"><num>(1)</num><intro><p>An authorised person who removes anything in the exercise of a power conferred by or under paragraph 5 or 7 above shall, if so requested by a person showing himself—</p></intro><level class="para1" eId="schedule-5-paragraph-8-1-a"><num>(a)</num><content><p>to be the occupier of premises from which it was removed, or</p></content></level><level class="para1" eId="schedule-5-paragraph-8-1-b"><num>(b)</num><content><p>to have had custody or control of it immediately before the removal,</p></content></level><wrapUp><p>provide that person with a record of what he removed.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-8-2"><num>(2)</num><content><p>The authorised person shall provide the record within a reasonable time from the making of the request for it.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-8-3"><num>(3)</num><intro><p>Subject to sub-paragraph (7) below, if a request for permission to be allowed access to anything which—</p></intro><level class="para1" eId="schedule-5-paragraph-8-3-a"><num>(a)</num><content><p>has been removed by an authorised person, and</p></content></level><level class="para1" eId="schedule-5-paragraph-8-3-b"><num>(b)</num><content><p>is retained by the Commissioners for the purposes of investigating an offence,</p></content></level><wrapUp><p>is made to the officer in overall charge of the investigation by a person who had custody or control of the thing immediately before it was so removed or by someone acting on behalf of such a person, the officer shall allow the person who made the request access to it under the supervision of an authorised person.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-8-4"><num>(4)</num><intro><p>Subject to sub-paragraph (7) below, if a request for a photograph or copy of any such thing is made to the officer in overall charge of the investigation by a person who had custody or control of the thing immediately before it was so removed, or by someone acting on behalf of such a person, the officer shall—</p></intro><level class="para1" eId="schedule-5-paragraph-8-4-a"><num>(a)</num><content><p>allow the person who made the request access to it under the supervision of an authorised person for the purpose of photographing it or copying it, or</p></content></level><level class="para1" eId="schedule-5-paragraph-8-4-b"><num>(b)</num><content><p>photograph or copy it, or cause it to be photographed or copied.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-8-5"><num>(5)</num><content><p>Subject to sub-paragraph (7) below, where anything is photographed or copied under sub-paragraph (4)(b) above the officer shall supply the photograph or copy, or cause it to be supplied, to the person who made the request.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-8-6"><num>(6)</num><content><p>The photograph or copy shall be supplied within a reasonable time from the making of the request.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-8-7"><num>(7)</num><intro><p>There is no duty under this paragraph to allow access to, or to supply a photograph or copy of, anything if the officer in overall charge of the investigation for the purposes of which it was removed has reasonable grounds for believing that to do so would prejudice—</p></intro><level class="para1" eId="schedule-5-paragraph-8-7-a"><num>(a)</num><content><p>that investigation,</p></content></level><level class="para1" eId="schedule-5-paragraph-8-7-b"><num>(b)</num><content><p>the investigation of an offence other than the offence for the purposes of the investigation of which the thing was removed, or</p></content></level><level class="para1" eId="schedule-5-paragraph-8-7-c"><num>(c)</num><content><p>any criminal proceedings which may be brought as a result of the investigation of which he is in charge or any such investigation as is mentioned in paragraph (b) above.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-8-8"><num>(8)</num><content><p>Any reference in this paragraph to the officer in overall charge of the investigation is a reference to the person whose name and address are endorsed on the warrant concerned as being the officer so in charge.</p></content></subparagraph></paragraph><paragraph eId="schedule-5-paragraph-9" class="schProv1"><num>9</num><subparagraph eId="schedule-5-paragraph-9-1"><num>(1)</num><content><p>Where, on an application made as mentioned in sub-paragraph (2) below, the appropriate judicial authority is satisfied that a person has failed to comply with a requirement imposed by paragraph 8 above, the authority may order that person to comply with the requirement within such time and in such manner as may be specified in the order.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-9-2"><num>(2)</num><intro><p>An application under sub-paragraph (1) above shall be made—</p></intro><level class="para1" eId="schedule-5-paragraph-9-2-a"><num>(a)</num><content><p>in the case of a failure to comply with any of the requirements imposed by sub-paragraphs (1) and (2) of paragraph 8 above, by the occupier of the premises from which the thing in question was removed or by the person who had custody or control of it immediately before it was so removed, and</p></content></level><level class="para1" eId="schedule-5-paragraph-9-2-b"><num>(b)</num><content><p>in any other case, by the person who had such custody or control.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-9-3"><num>(3)</num><intro><p>In this paragraph “the appropriate judicial authority” means—</p></intro><level class="para1" eId="schedule-5-paragraph-9-3-a"><num>(a)</num><content><p>in England and Wales, a magistrates' court;</p></content></level><level class="para1" eId="schedule-5-paragraph-9-3-b"><num>(b)</num><content><p>in Scotland, the sheriff;</p></content></level><level class="para1" eId="schedule-5-paragraph-9-3-c"><num>(c)</num><content><p>in Northern Ireland, a court of summary jurisdiction, as defined in Article 2(2)(a) of the <noteRef href="#m00203" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Magistrates' Court (Northern Ireland) Order 1981.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-9-4"><num>(4)</num><content><p>In England and Wales and Northern Ireland, an application for an order under this paragraph shall be made by way of complaint; and sections 21 and 42(2) of the <noteRef href="#m00204" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Interpretation Act (Northern Ireland) 1954 shall apply as if any reference in those provisions to any enactment included a reference to this paragraph.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-5-part-II-crossheading-power-to-take-samples"><heading>Power to take samples</heading><paragraph eId="schedule-5-paragraph-10" class="schProv1"><num>10</num><subparagraph eId="schedule-5-paragraph-10-1"><num>(1)</num><content><p>An authorised person, if it appears to him necessary for the protection of the revenue against mistake or fraud, may at any time take, from material which he has reasonable cause to believe is intended to be, is being, or has been disposed of as waste by way of landfill, such samples as he may require with a view to determining how the material ought to be or to have been treated for the purposes of tax.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-10-2"><num>(2)</num><content><p>Any sample taken under this paragraph shall be disposed of in such manner as the Commissioners may direct.</p></content></subparagraph></paragraph></hcontainer></part><part eId="schedule-5-part-III"><num>Part III</num><heading>Recovery</heading><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-5-part-III-crossheading-general"><heading>General</heading><paragraph eId="schedule-5-paragraph-11" class="schProv1"><num>11</num><content><p>Tax due from any person shall be recoverable as a debt due to the Crown.</p></content></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-5-part-III-crossheading-preferential-and-preferred-debts"><heading>Preferential and preferred debts</heading><paragraph eId="schedule-5-paragraph-12" class="schProv1"><num>12</num><subparagraph eId="schedule-5-paragraph-12-1"><num>(1)</num><content><p><mod>In the <noteRef href="#m00205" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Insolvency Act 1986, in section 386(1) (preferential debts) the words “landfill tax,” shall be inserted after “insurance premium tax,” and in Schedule 6 (categories of preferential debts) the following paragraph shall be inserted after paragraph 3A—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>3B</num><intro><p>Any landfill tax which is referable to the period of 6 months next before the relevant date (which period is referred to below as “the 6-month period”).</p><p>For the purposes of this paragraph—</p></intro><level class="para1"><num>(a)</num><content><p>where the whole of the accounting period to which any landfill tax is attributable falls within the 6-month period, the whole amount of that tax is referable to that period; and</p></content></level><level class="para1"><num>(b)</num><content><p>in any other case the amount of any landfill tax which is referable to the 6-month period is the proportion of the tax which is equal to such proportion (if any) of the accounting period in question as falls within the 6-month period;</p></content></level><wrapUp><p>and references here to accounting periods shall be construed in accordance with Part III of the Finance Act 1996.</p></wrapUp></section></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-5-paragraph-12-2"><num>(2)</num><content><p>In the <noteRef href="#m00206" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Bankruptcy (Scotland) Act 1985, Schedule 3 (preferred debts) shall be amended as mentioned in sub-paragraphs (3) and (4) below.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-12-3"><num>(3)</num><content><p><mod>In paragraph 2 the following sub-paragraph shall be inserted after sub-paragraph (1A)—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><subparagraph><num>(1B)</num><content><p>Any landfill tax which is referable to the period of six months next before the relevant date.</p></content></subparagraph></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-5-paragraph-12-4"><num>(4)</num><content><p><mod>The following shall be inserted after paragraph 8A—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><hcontainer name="crossheading" ukl:Name="Pblock"><heading>Periods to which landfill tax referable</heading><paragraph class="schProv1"><num>8B</num><subparagraph><num>(1)</num><intro><p>For the purpose of paragraph 2(1B) of Part I of this Schedule—</p></intro><level class="para1"><num>(a)</num><content><p>where the whole of the accounting period to which any landfill tax is attributable falls within the period of six months next before the relevant date (“the relevant period”), the whole amount of that tax shall be referable to the relevant period; and</p></content></level><level class="para1"><num>(b)</num><content><p>in any other case the amount of any landfill tax which shall be referable to the relevant period shall be the proportion of the tax which is equal to such proportion (if any) of the accounting period in question as falls within the relevant period.</p></content></level></subparagraph><subparagraph><num>(2)</num><content><p>In sub-paragraph (1) above “accounting period” shall be construed in accordance with Part III of the Finance Act 1996.</p></content></subparagraph></paragraph></hcontainer></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-5-paragraph-12-5"><num>(5)</num><content><p><mod>In the <noteRef href="#m00207" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Insolvency (Northern Ireland) Order 1989, in Article 346(1) (preferential debts) the words “landfill tax” shall be inserted after “insurance premium tax” and in Schedule 4 (categories of preferential debts) the following paragraph shall be inserted after paragraph 3A—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><paragraph class="schProv1"><num>3B</num><intro><p>Any landfill tax which is referable to the period of 6 months next before the relevant date (which period is referred to below as “the 6-month period”).</p><p>For the purposes of this paragraph—</p></intro><level class="para1"><num>(a)</num><content><p>where the whole of the accounting period to which any landfill tax is attributable falls within the 6-month period, the whole amount of that tax is referable to that period; and</p></content></level><level class="para1"><num>(b)</num><content><p>in any other case the amount of any landfill tax which is referable to the 6-month period is the proportion of the tax which is equal to such proportion (if any) of the accounting period in question as falls within the 6-month period;</p></content></level><wrapUp><p>and references here to accounting periods shall be construed in accordance with Part III of the Finance Act 1996.</p></wrapUp></paragraph></quotedStructure></mod></p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-5-part-III-crossheading-distress-and-diligence"><heading>Distress and diligence</heading><paragraph eId="schedule-5-paragraph-13" class="schProv1"><num>13</num><subparagraph eId="schedule-5-paragraph-13-1"><num>(1)</num><intro><p>Regulations may make provision in respect of England and Wales and Northern Ireland—</p></intro><level class="para1" eId="schedule-5-paragraph-13-1-a"><num>(a)</num><content><p>for authorising distress to be levied on the goods and chattels of any person refusing or neglecting to pay any tax due from him or any amount recoverable as if it were tax due from him;</p></content></level><level class="para1" eId="schedule-5-paragraph-13-1-b"><num>(b)</num><content><p>for the disposal of any goods or chattels on which distress is levied in pursuance of the regulations;</p></content></level><level class="para1" eId="schedule-5-paragraph-13-1-c"><num>(c)</num><content><p>for the imposition and recovery of costs, charges, expenses and fees in connection with anything done under the regulations.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-13-2"><num>(2)</num><intro><p>In respect of Scotland, where any tax or any amount recoverable as if it were tax is due and has not been paid, the sheriff, on an application by the Commissioners accompanied by a certificate by the Commissioners—</p></intro><level class="para1" eId="schedule-5-paragraph-13-2-a"><num>(a)</num><content><p>stating that none of the persons specified in the application has paid the tax or other sum due from him,</p></content></level><level class="para1" eId="schedule-5-paragraph-13-2-b"><num>(b)</num><content><p>stating that payment of the amount due from each such person has been demanded from him, and</p></content></level><level class="para1" eId="schedule-5-paragraph-13-2-c"><num>(c)</num><content><p>specifying the amount due from and unpaid by each such person,</p></content></level><wrapUp><p>shall grant a summary warrant in a form prescribed by act of sederunt authorising the recovery, by any of the diligences mentioned in sub-paragraph (3) below, of the amount remaining due and unpaid.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-13-3"><num>(3)</num><intro><p>The diligences referred to in sub-paragraph (2) above are—</p></intro><level class="para1" eId="schedule-5-paragraph-13-3-a"><num>(a)</num><content><p>a poinding and sale in accordance with Schedule 5 to the <noteRef href="#m00208" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Debtors (Scotland) Act 1987;</p></content></level><level class="para1" eId="schedule-5-paragraph-13-3-b"><num>(b)</num><content><p>an earnings arrestment;</p></content></level><level class="para1" eId="schedule-5-paragraph-13-3-c"><num>(c)</num><content><p>an arrestment and action of furthcoming or sale.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-13-4"><num>(4)</num><content><p>Subject to sub-paragraph (5) below and without prejudice to paragraphs 25 to 34 of Schedule 5 to the Debtors (Scotland) Act 1987 (expenses of poinding and sale) the sheriff officer’s fees, together with the outlays necessarily incurred by him, in connection with the execution of a summary warrant shall be chargeable against the debtor.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-13-5"><num>(5)</num><content><p>No fee shall be chargeable by the sheriff officer against the debtor for collecting, and accounting to the Commissioners for, sums paid to him by the debtor in respect of the amount owing.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-13-6"><num>(6)</num><content><p>Regulations may make provision for anything which the Commissioners may do under sub-paragraphs (2) to (5) above to be done by an officer of the Commissioners holding such rank as the regulations may specify.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-5-part-III-crossheading-recovery-of-overpaid-tax"><heading>Recovery of overpaid tax</heading><paragraph eId="schedule-5-paragraph-14" class="schProv1"><num>14</num><subparagraph eId="schedule-5-paragraph-14-1"><num>(1)</num><content><p>Where a person has paid an amount to the Commissioners by way of tax which was not tax due to them, they shall be liable to repay the amount to him.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-14-2"><num>(2)</num><content><p>The Commissioners shall only be liable to repay an amount under this paragraph on a claim being made for the purpose.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-14-3"><num>(3)</num><content><p>It shall be a defence, in relation to a claim under this paragraph, that repayment of an amount would unjustly enrich the claimant.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-14-4"><num>(4)</num><content><p>No amount may be claimed under this paragraph after the expiry of six years from the date on which it was paid.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-14-5"><num>(5)</num><content><p>A claim under this paragraph shall be made in such form and manner and shall be supported by such documentary evidence as may be prescribed by regulations.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-14-6"><num>(6)</num><content><p>Except as provided by this paragraph, the Commissioners shall not be liable to repay an amount paid to them by way of tax by virtue of the fact that it was not tax due to them.</p></content></subparagraph></paragraph></hcontainer></part><part eId="schedule-5-part-IV"><num>Part IV</num><heading>Criminal Penalties</heading><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-5-part-IV-crossheading-criminal-offences"><heading>Criminal offences</heading><paragraph eId="schedule-5-paragraph-15" class="schProv1"><num>15</num><subparagraph eId="schedule-5-paragraph-15-1"><num>(1)</num><intro><p>A person is guilty of an offence if—</p></intro><level class="para1" eId="schedule-5-paragraph-15-1-a"><num>(a)</num><content><p>being a registrable person, he is knowingly concerned in, or in the taking of steps with a view to, the fraudulent evasion of tax by him or another registrable person, or</p></content></level><level class="para1" eId="schedule-5-paragraph-15-1-b"><num>(b)</num><content><p>not being a registrable person, he is knowingly concerned in, or in the taking of steps with a view to, the fraudulent evasion of tax by a registrable person.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-15-2"><num>(2)</num><content><p>Any reference in sub-paragraph (1) above to the evasion of tax includes a reference to the obtaining of a payment under regulations under section 51(2)(c) or (d) or (f) of this Act.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-15-3"><num>(3)</num><intro><p>A person is guilty of an offence if with the requisite intent—</p></intro><level class="para1" eId="schedule-5-paragraph-15-3-a"><num>(a)</num><content><p>he produces, furnishes or sends, or causes to be produced, furnished or sent, for the purposes of this Part of this Act any document which is false in a material particular, or</p></content></level><level class="para1" eId="schedule-5-paragraph-15-3-b"><num>(b)</num><content><p>he otherwise makes use for those purposes of such a document;</p></content></level><wrapUp><p>and the requisite intent is intent to deceive or to secure that a machine will respond to the document as if it were a true document.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-15-4"><num>(4)</num><content><p>A person is guilty of an offence if in furnishing any information for the purposes of this Part of this Act he makes a statement which he knows to be false in a material particular or recklessly makes a statement which is false in a material particular.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-15-5"><num>(5)</num><content><p>A person is guilty of an offence by virtue of this sub-paragraph if his conduct during any specified period must have involved the commission by him of one or more offences under the preceding provisions of this paragraph; and the preceding provisions of this sub-paragraph apply whether or not the particulars of that offence or those offences are known.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-15-6"><num>(6)</num><intro><p>A person is guilty of an offence if—</p></intro><level class="para1" eId="schedule-5-paragraph-15-6-a"><num>(a)</num><content><p>he enters into a taxable landfill contract, or</p></content></level><level class="para1" eId="schedule-5-paragraph-15-6-b"><num>(b)</num><content><p>he makes arrangements for other persons to enter into such a contract,</p></content></level><wrapUp><p>with reason to believe that tax in respect of the disposal concerned will be evaded.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-15-7"><num>(7)</num><content><p>A person is guilty of an offence if he carries out taxable activities without giving security (or further security) he has been required to give under paragraph 31 below.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-15-8"><num>(8)</num><content><p>For the purposes of this paragraph a taxable landfill contract is a contract under which there is to be a taxable disposal.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-5-part-IV-crossheading-criminal-penalties"><heading>Criminal penalties</heading><paragraph eId="schedule-5-paragraph-16" class="schProv1"><num>16</num><subparagraph eId="schedule-5-paragraph-16-1"><num>(1)</num><intro><p>A person guilty of an offence under paragraph 15(1) above is liable—</p></intro><level class="para1" eId="schedule-5-paragraph-16-1-a"><num>(a)</num><content><p>on summary conviction, to a penalty of the statutory maximum or of three times the amount of the tax, whichever is the greater, or to imprisonment for a term not exceeding six months or to both;</p></content></level><level class="para1" eId="schedule-5-paragraph-16-1-b"><num>(b)</num><content><p>on conviction on indictment, to a penalty of any amount or to imprisonment for a term not exceeding seven years or to both.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-16-2"><num>(2)</num><intro><p>The reference in sub-paragraph (1) above to the amount of the tax shall be construed, in relation to tax itself or a payment falling within paragraph 15(2) above, as a reference to the aggregate of—</p></intro><level class="para1" eId="schedule-5-paragraph-16-2-a"><num>(a)</num><content><p>the amount (if any) falsely claimed by way of credit, and</p></content></level><level class="para1" eId="schedule-5-paragraph-16-2-b"><num>(b)</num><content><p>the amount (if any) by which the gross amount of tax was falsely understated.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-16-3"><num>(3)</num><intro><p>A person guilty of an offence under paragraph 15(3) or (4) above is liable—</p></intro><level class="para1" eId="schedule-5-paragraph-16-3-a"><num>(a)</num><content><p>on summary conviction, to a penalty of the statutory maximum (or, where sub-paragraph (4) below applies, to the alternative penalty there specified if it is greater) or to imprisonment for a term not exceeding six months or to both;</p></content></level><level class="para1" eId="schedule-5-paragraph-16-3-b"><num>(b)</num><content><p>on conviction on indictment, to a penalty of any amount or to imprisonment for a term not exceeding seven years or to both.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-16-4"><num>(4)</num><intro><p>Where—</p></intro><level class="para1" eId="schedule-5-paragraph-16-4-a"><num>(a)</num><content><p>the document referred to in paragraph 15(3) above is a return required under this Part of this Act, or</p></content></level><level class="para1" eId="schedule-5-paragraph-16-4-b"><num>(b)</num><content><p>the information referred to in paragraph 15(4) above is contained in or otherwise relevant to such a return,</p></content></level><wrapUp><p>the alternative penalty is a penalty equal to three times the aggregate of the amount (if any) falsely claimed by way of credit and the amount (if any) by which the gross amount of tax was understated.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-16-5"><num>(5)</num><intro><p>A person guilty of an offence under paragraph 15(5) above is liable—</p></intro><level class="para1" eId="schedule-5-paragraph-16-5-a"><num>(a)</num><content><p>on summary conviction, to a penalty of the statutory maximum (or, if greater, three times the amount of any tax that was or was intended to be evaded by his conduct) or to imprisonment for a term not exceeding six months or to both;</p></content></level><level class="para1" eId="schedule-5-paragraph-16-5-b"><num>(b)</num><content><p>on conviction on indictment, to a penalty of any amount or to imprisonment for a term not exceeding seven years or to both;</p></content></level><wrapUp><p>and paragraph 15(2) and sub-paragraph (2) above shall apply for the purposes of this sub-paragraph as they apply respectively for the purposes of paragraph 15(1) and sub-paragraph (1) above.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-16-6"><num>(6)</num><content><p>A person guilty of an offence under paragraph 15(6) above is liable on summary conviction to a penalty of level 5 on the standard scale or three times the amount of the tax, whichever is the greater.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-16-7"><num>(7)</num><content><p>A person guilty of an offence under paragraph 15(7) above is liable on summary conviction to a penalty of level 5 on the standard scale.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-16-8"><num>(8)</num><intro><p>In this paragraph—</p></intro><level class="para1" eId="schedule-5-paragraph-16-8-a"><num>(a)</num><content><p>“credit” means credit for which provision is made by regulations under section 51 of this Act;</p></content></level><level class="para1" eId="schedule-5-paragraph-16-8-b"><num>(b)</num><content><p>“the gross amount of tax” means the total amount of tax due before taking into account any deduction for which provision is made by regulations under section 51(2) of this Act.</p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-5-part-IV-crossheading-criminal-proceedings-etc"><heading>Criminal proceedings etc.</heading><paragraph eId="schedule-5-paragraph-17" class="schProv1"><num>17</num><content><p>Sections 145 to 155 of the <noteRef href="#m00209" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Customs and Excise Management Act 1979 (proceedings for offences, mitigation of penalties and certain other matters) shall apply in relation to offences under paragraph 15 above and penalties imposed under paragraph 16 above as they apply in relation to offences and penalties under the customs and excise Acts as defined in that Act.</p></content></paragraph></hcontainer></part><part eId="schedule-5-part-V"><num>Part V</num><heading>Civil Penalties</heading><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-5-part-V-crossheading-evasion"><heading>Evasion</heading><paragraph eId="schedule-5-paragraph-18" class="schProv1"><num>18</num><subparagraph eId="schedule-5-paragraph-18-1"><num>(1)</num><intro><p>Where—</p></intro><level class="para1" eId="schedule-5-paragraph-18-1-a"><num>(a)</num><content><p>for the purpose of evading tax, a registrable person does any act or omits to take any action, and</p></content></level><level class="para1" eId="schedule-5-paragraph-18-1-b"><num>(b)</num><content><p>his conduct involves dishonesty (whether or not it is such as to give rise to criminal liability),</p></content></level><wrapUp><p>he is liable to a penalty equal to the amount of tax evaded, or (as the case may be) sought to be evaded, by his conduct; but this is subject to sub-paragraph (7) below.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-18-2"><num>(2)</num><content><p>The reference in sub-paragraph (1)(a) above to evading tax includes a reference to obtaining a payment under regulations under section 51(2)(c) or (d) or (f) of this Act in circumstances where the person concerned is not entitled to the sum.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-18-3"><num>(3)</num><intro><p>The reference in sub-paragraph (1) above to the amount of tax evaded or sought to be evaded is a reference to the aggregate of—</p></intro><level class="para1" eId="schedule-5-paragraph-18-3-a"><num>(a)</num><content><p>the amount (if any) falsely claimed by way of credit, and</p></content></level><level class="para1" eId="schedule-5-paragraph-18-3-b"><num>(b)</num><content><p>the amount (if any) by which the gross amount of tax was falsely understated.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-18-4"><num>(4)</num><intro><p>In this paragraph—</p></intro><level class="para1" eId="schedule-5-paragraph-18-4-a"><num>(a)</num><content><p>“credit” means credit for which provision is made by regulations under section 51 of this Act;</p></content></level><level class="para1" eId="schedule-5-paragraph-18-4-b"><num>(b)</num><content><p>“the gross amount of tax” means the total amount of tax due before taking into account any deduction for which provision is made by regulations under section 51(2) of this Act.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-18-5"><num>(5)</num><intro><p>Statements made or documents produced by or on behalf of a person shall not be inadmissible in any such proceedings as are mentioned in sub-paragraph (6) below by reason only that it has been drawn to his attention—</p></intro><level class="para1" eId="schedule-5-paragraph-18-5-a"><num>(a)</num><content><p>that, in relation to tax, the Commissioners may assess an amount due by way of a civil penalty instead of instituting criminal proceedings and, though no undertaking can be given as to whether the Commissioners will make such an assessment in the case of any person, it is their practice to be influenced by the fact that a person has made a full confession of any dishonest conduct to which he has been a party and has given full facilities for investigation, and</p></content></level><level class="para1" eId="schedule-5-paragraph-18-5-b"><num>(b)</num><content><p>that the Commissioners or, on appeal, an appeal tribunal have power under paragraph 25 below to reduce a penalty under this paragraph,</p></content></level><wrapUp><p>and that he was or may have been induced thereby to make the statements or produce the documents.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-18-6"><num>(6)</num><intro><p>The proceedings referred to in sub-paragraph (5) above are—</p></intro><level class="para1" eId="schedule-5-paragraph-18-6-a"><num>(a)</num><content><p>any criminal proceedings against the person concerned in respect of any offence in connection with or in relation to tax, and</p></content></level><level class="para1" eId="schedule-5-paragraph-18-6-b"><num>(b)</num><content><p>any proceedings against him for the recovery of any sum due from him in connection with or in relation to tax.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-18-7"><num>(7)</num><content><p>Where, by reason of conduct falling within sub-paragraph (1) above, a person is convicted of an offence (whether under this Part of this Act or otherwise) that conduct shall not also give rise to liability to a penalty under this paragraph.</p></content></subparagraph></paragraph><paragraph eId="schedule-5-paragraph-19" class="schProv1"><num>19</num><subparagraph eId="schedule-5-paragraph-19-1"><num>(1)</num><intro><p>Where it appears to the Commissioners—</p></intro><level class="para1" eId="schedule-5-paragraph-19-1-a"><num>(a)</num><content><p>that a body corporate is liable to a penalty under paragraph 18 above, and</p></content></level><level class="para1" eId="schedule-5-paragraph-19-1-b"><num>(b)</num><content><p>that the conduct giving rise to that penalty is, in whole or in part, attributable to the dishonesty of a person who is, or at the material time was, a director or managing officer of the body corporate (a named officer),</p></content></level><wrapUp><p>the Commissioners may serve a notice under this paragraph on the body corporate and on the named officer.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-19-2"><num>(2)</num><intro><p>A notice under this paragraph shall state—</p></intro><level class="para1" eId="schedule-5-paragraph-19-2-a"><num>(a)</num><content><p>the amount of the penalty referred to in sub-paragraph (1)(a) above (the basic penalty), and</p></content></level><level class="para1" eId="schedule-5-paragraph-19-2-b"><num>(b)</num><content><p>that the Commissioners propose, in accordance with this paragraph, to recover from the named officer such portion (which may be the whole) of the basic penalty as is specified in the notice.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-19-3"><num>(3)</num><content><p>Where a notice is served under this paragraph, the portion of the basic penalty specified in the notice shall be recoverable from the named officer as if he were personally liable under paragraph 18 above to a penalty which corresponds to that portion; and the amount of that penalty may be assessed and notified to him accordingly under paragraph 32 below.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-19-4"><num>(4)</num><intro><p>Where a notice is served under this paragraph—</p></intro><level class="para1" eId="schedule-5-paragraph-19-4-a"><num>(a)</num><content><p>the amount which, under paragraph 32 below, may be assessed as the amount due by way of penalty from the body corporate shall be only so much (if any) of the basic penalty as is not assessed on and notified to a named officer by virtue of sub-paragraph (3) above, and</p></content></level><level class="para1" eId="schedule-5-paragraph-19-4-b"><num>(b)</num><content><p>the body corporate shall be treated as discharged from liability for so much of the basic penalty as is so assessed and notified.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-19-5"><num>(5)</num><intro><p>No appeal shall lie against a notice under this paragraph as such but—</p></intro><level class="para1" eId="schedule-5-paragraph-19-5-a"><num>(a)</num><content><p>where a body corporate is assessed as mentioned in sub-paragraph (4)(a) above, the body corporate may require a review of the Commissioners' decision as to its liability to a penalty and as to the amount of the basic penalty as if it were specified in the assessment;</p></content></level><level class="para1" eId="schedule-5-paragraph-19-5-b"><num>(b)</num><content><p>where an assessment is made on a named officer by virtue of sub-paragraph (3) above, the named officer may require a review of the Commissioners' decision that the conduct of the body corporate referred to in sub-paragraph (1)(b) above is, in whole or in part, attributable to his dishonesty and of their decision as to the portion of the penalty which the Commissioners propose to recover from him;</p></content></level><level class="para1" eId="schedule-5-paragraph-19-5-c"><num>(c)</num><content><p>sections 55 and 56 of this Act shall apply accordingly.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-19-6"><num>(6)</num><content><p>In this paragraph a “managing officer”, in relation to a body corporate, means any manager, secretary or other similar officer of the body corporate or any person purporting to act in any such capacity or as a director; and where the affairs of a body corporate are managed by its members, this paragraph shall apply in relation to the conduct of a member in connection with his functions of management as if he were a director of the body corporate.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-5-part-V-crossheading-misdeclaration-or-neglect"><heading>Misdeclaration or neglect</heading><paragraph eId="schedule-5-paragraph-20" class="schProv1"><num>20</num><subparagraph eId="schedule-5-paragraph-20-1"><num>(1)</num><intro><p>Where, for an accounting period—</p></intro><level class="para1" eId="schedule-5-paragraph-20-1-a"><num>(a)</num><content><p>a return is made which understates a person’s liability to tax or overstates his entitlement to credit, or</p></content></level><level class="para1" eId="schedule-5-paragraph-20-1-b"><num>(b)</num><content><p>an assessment is made which understates a person’s liability to tax and, at the end of the period of 30 days beginning on the date of the assessment, he has not taken all such steps as are reasonable to draw the understatement to the attention of the Commissioners,</p></content></level><wrapUp><p>the person concerned is liable, subject to sub-paragraphs (3) and (4) below, to a penalty equal to 5 per cent. of the amount of the understatement of liability or (as the case may be) overstatement of entitlement.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-20-2"><num>(2)</num><intro><p>Where—</p></intro><level class="para1" eId="schedule-5-paragraph-20-2-a"><num>(a)</num><content><p>a return for an accounting period overstates or understates to any extent a person’s liability to tax or his entitlement to credit, and</p></content></level><level class="para1" eId="schedule-5-paragraph-20-2-b"><num>(b)</num><content><p>that return is corrected, in such circumstances and in accordance with such conditions as may be prescribed by regulations, by a return for a later accounting period which understates or overstates, to the corresponding extent, that liability or entitlement,</p></content></level><wrapUp><p>it shall be assumed for the purposes of this paragraph that the statement made by each such return is a correct statement for the accounting period to which the return relates.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-20-3"><num>(3)</num><intro><p>Conduct falling within sub-paragraph (1) above shall not give rise to liability to a penalty under this paragraph if the person concerned furnishes full information with respect to the inaccuracy concerned to the Commissioners—</p></intro><level class="para1" eId="schedule-5-paragraph-20-3-a"><num>(a)</num><content><p>at a time when he has no reason to believe that enquiries are being made by the Commissioners into his affairs, so far as they relate to tax, and</p></content></level><level class="para1" eId="schedule-5-paragraph-20-3-b"><num>(b)</num><content><p>in such form and manner as may be prescribed by regulations or specified by the Commissioners in accordance with provision made by regulations.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-20-4"><num>(4)</num><intro><p>Where, by reason of conduct falling within sub-paragraph (1) above—</p></intro><level class="para1" eId="schedule-5-paragraph-20-4-a"><num>(a)</num><content><p>a person is convicted of an offence (whether under this Part of this Act or otherwise), or</p></content></level><level class="para1" eId="schedule-5-paragraph-20-4-b"><num>(b)</num><content><p>a person is assessed to a penalty under paragraph 18 above,</p></content></level><wrapUp><p>that conduct shall not also give rise to liability to a penalty under this paragraph.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-20-5"><num>(5)</num><content><p>In this paragraph “credit” means credit for which provision is made by regulations under section 51 of this Act.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-5-part-V-crossheading-registration"><heading>Registration</heading><paragraph eId="schedule-5-paragraph-21" class="schProv1"><num>21</num><subparagraph eId="schedule-5-paragraph-21-1"><num>(1)</num><content><p>A person who fails to comply with section 47(3) of this Act is liable to a penalty equal to 5 per cent. of the relevant tax or, if it is greater or the circumstances are such that there is no relevant tax, to a penalty of £250; but this is subject to sub-paragraph (4) below.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-21-2"><num>(2)</num><intro><p>In sub-paragraph (1) above “relevant tax” means the tax (if any) for which the person concerned is liable for the period which—</p></intro><level class="para1" eId="schedule-5-paragraph-21-2-a"><num>(a)</num><content><p>begins on the date with effect from which he is, in accordance with section 47 of this Act, required to be registered, and</p></content></level><level class="para1" eId="schedule-5-paragraph-21-2-b"><num>(b)</num><content><p>ends on the date on which the Commissioners received notification of, or otherwise became aware of, his liability to be registered.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-21-3"><num>(3)</num><content><p>A person who fails to comply with section 47(4) of this Act is liable to a penalty of £250.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-21-4"><num>(4)</num><intro><p>Where, by reason of conduct falling within sub-paragraph (1) above—</p></intro><level class="para1" eId="schedule-5-paragraph-21-4-a"><num>(a)</num><content><p>a person is convicted of an offence (whether under this Part of this Act or otherwise), or</p></content></level><level class="para1" eId="schedule-5-paragraph-21-4-b"><num>(b)</num><content><p>a person is assessed to a penalty under paragraph 18 above,</p></content></level><wrapUp><p>that conduct shall not also give rise to liability to a penalty under this paragraph.</p></wrapUp></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-5-part-V-crossheading-information"><heading>Information</heading><paragraph eId="schedule-5-paragraph-22" class="schProv1"><num>22</num><subparagraph eId="schedule-5-paragraph-22-1"><num>(1)</num><intro><p>If a person—</p></intro><level class="para1" eId="schedule-5-paragraph-22-1-a"><num>(a)</num><content><p>fails to comply with any provision of paragraph 1 or 3 above, or</p></content></level><level class="para1" eId="schedule-5-paragraph-22-1-b"><num>(b)</num><content><p>fails to make records as required by any provision of regulations made under paragraph 2 above,</p></content></level><wrapUp><p>he is liable to a penalty of £250; but this is subject to sub-paragraph (4) below.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-22-2"><num>(2)</num><intro><p>Where—</p></intro><level class="para1" eId="schedule-5-paragraph-22-2-a"><num>(a)</num><content><p>a penalty (an initial penalty) is imposed on a person under sub-paragraph (1) above, and</p></content></level><level class="para1" eId="schedule-5-paragraph-22-2-b"><num>(b)</num><content><p>the failure which led to the initial penalty continues after its imposition,</p></content></level><wrapUp><p>he is (subject to sub-paragraph (4) below) liable to a further penalty of £20 for each day during which (or any part of which) the failure continues after the day on which the initial penalty was imposed.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-22-3"><num>(3)</num><content><p>A person who fails to preserve records in compliance with any provision of regulations made under paragraph 2 above (read with that paragraph and any direction given under the regulations) is liable to a penalty of £250; but this is subject to sub-paragraph (4) below.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-22-4"><num>(4)</num><intro><p>Where by reason of a failure falling within sub-paragraph (1) or (3) above—</p></intro><level class="para1" eId="schedule-5-paragraph-22-4-a"><num>(a)</num><content><p>a person is convicted of an offence (whether under this Part of this Act or otherwise), or</p></content></level><level class="para1" eId="schedule-5-paragraph-22-4-b"><num>(b)</num><content><p>a person is assessed to a penalty under paragraph 18 above,</p></content></level><wrapUp><p>that failure shall not also give rise to liability to a penalty under this paragraph.</p></wrapUp></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-5-part-V-crossheading-breach-of-regulations"><heading>Breach of regulations</heading><paragraph eId="schedule-5-paragraph-23" class="schProv1"><num>23</num><subparagraph eId="schedule-5-paragraph-23-1"><num>(1)</num><content><p>Where regulations made under this Part of this Act impose a requirement on any person, they may provide that if the person fails to comply with the requirement he shall be liable to a penalty of £250; but this is subject to sub-paragraphs (2) and (3) below.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-23-2"><num>(2)</num><intro><p>Where by reason of any conduct—</p></intro><level class="para1" eId="schedule-5-paragraph-23-2-a"><num>(a)</num><content><p>a person is convicted of an offence (whether under this Part of this Act or otherwise), or</p></content></level><level class="para1" eId="schedule-5-paragraph-23-2-b"><num>(b)</num><content><p>a person is assessed to a penalty under paragraph 18 above,</p></content></level><wrapUp><p>that conduct shall not also give rise to liability to a penalty under the regulations.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-23-3"><num>(3)</num><content><p>Sub-paragraph (1) above does not apply to any failure mentioned in paragraph 22 above.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-5-part-V-crossheading-walking-possession-agreements"><heading>Walking possession agreements</heading><paragraph eId="schedule-5-paragraph-24" class="schProv1"><num>24</num><subparagraph eId="schedule-5-paragraph-24-1"><num>(1)</num><intro><p>This paragraph applies where—</p></intro><level class="para1" eId="schedule-5-paragraph-24-1-a"><num>(a)</num><content><p>in accordance with regulations under paragraph 13(1) above a distress is authorised to be levied on the goods and chattels of a person (a person in default) who has refused or neglected to pay any tax due from him or any amount recoverable as if it were tax due from him, and</p></content></level><level class="para1" eId="schedule-5-paragraph-24-1-b"><num>(b)</num><content><p>the person levying the distress and the person in default have entered into a walking possession agreement.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-24-2"><num>(2)</num><intro><p>For the purposes of this paragraph a walking possession agreement is an agreement under which, in consideration of the property distrained upon being allowed to remain in the custody of the person in default and of the delaying of its sale, the person in default—</p></intro><level class="para1" eId="schedule-5-paragraph-24-2-a"><num>(a)</num><content><p>acknowledges that the property specified in the agreement is under distraint and held in walking possession, and</p></content></level><level class="para1" eId="schedule-5-paragraph-24-2-b"><num>(b)</num><content><p>undertakes that, except with the consent of the Commissioners and subject to such conditions as they may impose, he will not remove or allow the removal of any of the specified property from the premises named in the agreement.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-24-3"><num>(3)</num><content><p>If the person in default is in breach of the undertaking contained in a walking possession agreement, he is liable to a penalty equal to half of the tax or other amount referred to in sub-paragraph (1)(a) above.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-24-4"><num>(4)</num><content><p>This paragraph does not extend to Scotland.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-5-part-V-crossheading-mitigation-of-penalties"><heading>Mitigation of penalties</heading><paragraph eId="schedule-5-paragraph-25" class="schProv1"><num>25</num><subparagraph eId="schedule-5-paragraph-25-1"><num>(1)</num><content><p>Where a person is liable to a penalty under this Part of this Schedule the Commissioners or, on appeal, an appeal tribunal may reduce the penalty to such amount (including nil) as they think proper.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-25-2"><num>(2)</num><content><p>Where the person concerned satisfies the Commissioners or, on appeal, an appeal tribunal that there is a reasonable excuse for any breach, failure or other conduct, that is a factor which (among other things) may be taken into account under sub-paragraph (1) above.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-25-3"><num>(3)</num><content><p>In the case of a penalty reduced by the Commissioners under sub-paragraph (1) above an appeal tribunal, on an appeal relating to the penalty, may cancel the whole or any part of the reduction made by the Commissioners.</p></content></subparagraph></paragraph></hcontainer></part><part eId="schedule-5-part-VI"><num>Part VI</num><heading>Interest</heading><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-5-part-VI-crossheading-interest-on-underdeclared-tax"><heading>Interest on under-declared tax</heading><paragraph eId="schedule-5-paragraph-26" class="schProv1"><num>26</num><subparagraph eId="schedule-5-paragraph-26-1"><num>(1)</num><intro><p>Sub-paragraph (2) below applies where—</p></intro><level class="para1" eId="schedule-5-paragraph-26-1-a"><num>(a)</num><content><p>under section 50(1) of this Act the Commissioners assess an amount of tax due from a registrable person for an accounting period and notify it to him, and</p></content></level><level class="para1" eId="schedule-5-paragraph-26-1-b"><num>(b)</num><content><p>the assessment is made on the basis that the amount (the additional amount) is due from him in addition to any amount shown in a return made in relation to the accounting period.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-26-2"><num>(2)</num><intro><p>The additional amount shall carry interest for the period which—</p></intro><level class="para1" eId="schedule-5-paragraph-26-2-a"><num>(a)</num><content><p>begins with the day after that on which the person is required by provision made under section 49 of this Act to pay tax due from him for the accounting period, and</p></content></level><level class="para1" eId="schedule-5-paragraph-26-2-b"><num>(b)</num><content><p>ends with the day before the relevant day.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-26-3"><num>(3)</num><intro><p>For the purposes of sub-paragraph (2) above the relevant day is the earlier of—</p></intro><level class="para1" eId="schedule-5-paragraph-26-3-a"><num>(a)</num><content><p>the day on which the assessment is notified to the person;</p></content></level><level class="para1" eId="schedule-5-paragraph-26-3-b"><num>(b)</num><content><p>the day on which the additional amount is paid.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-26-4"><num>(4)</num><content><p>Sub-paragraph (5) below applies where under section 50(2) of this Act the Commissioners assess an amount as being tax due from a registrable person for an accounting period and notify it to him.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-26-5"><num>(5)</num><intro><p>The amount shall carry interest for the period which—</p></intro><level class="para1" eId="schedule-5-paragraph-26-5-a"><num>(a)</num><content><p>begins with the day after that on which the person is required by provision made under section 49 of this Act to pay tax due from him for the accounting period, and</p></content></level><level class="para1" eId="schedule-5-paragraph-26-5-b"><num>(b)</num><content><p>ends with the day before the relevant day.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-26-6"><num>(6)</num><intro><p>For the purposes of sub-paragraph (5) above the relevant day is the earlier of—</p></intro><level class="para1" eId="schedule-5-paragraph-26-6-a"><num>(a)</num><content><p>the day on which the assessment is notified to the person;</p></content></level><level class="para1" eId="schedule-5-paragraph-26-6-b"><num>(b)</num><content><p>the day on which the amount is paid.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-26-7"><num>(7)</num><content><p>Interest under this paragraph shall be payable at the rate applicable under section 197 of this Act.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-26-8"><num>(8)</num><content><p>Interest under this paragraph shall be paid without any deduction of income tax.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-26-9"><num>(9)</num><intro><p>Sub-paragraph (10) below applies where—</p></intro><level class="para1" eId="schedule-5-paragraph-26-9-a"><num>(a)</num><content><p>an amount carries interest under this paragraph (or would do so apart from that sub-paragraph), and</p></content></level><level class="para1" eId="schedule-5-paragraph-26-9-b"><num>(b)</num><content><p>all or part of the amount turns out not to be due.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-26-10"><num>(10)</num><intro><p>In such a case—</p></intro><level class="para1" eId="schedule-5-paragraph-26-10-a"><num>(a)</num><content><p>the amount or part (as the case may be) shall not carry interest under this paragraph and shall be treated as never having done so, and</p></content></level><level class="para1" eId="schedule-5-paragraph-26-10-b"><num>(b)</num><content><p>all such adjustments as are reasonable shall be made, including adjustments by way of repayment by the Commissioners where appropriate.</p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-5-part-VI-crossheading-interest-on-unpaid-tax-etc"><heading>Interest on unpaid tax etc.</heading><paragraph eId="schedule-5-paragraph-27" class="schProv1"><num>27</num><subparagraph eId="schedule-5-paragraph-27-1"><num>(1)</num><intro><p>Sub-paragraph (2) below applies where—</p></intro><level class="para1" eId="schedule-5-paragraph-27-1-a"><num>(a)</num><content><p>a registrable person makes a return under provision made under section 49 of this Act (whether or not he makes it at the time required by such provision), and</p></content></level><level class="para1" eId="schedule-5-paragraph-27-1-b"><num>(b)</num><content><p>the return shows that an amount of tax is due from him for the accounting period in relation to which the return is made.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-27-2"><num>(2)</num><intro><p>The amount shall carry interest for the period which—</p></intro><level class="para1" eId="schedule-5-paragraph-27-2-a"><num>(a)</num><content><p>begins with the day after that on which the person is required by provision made under section 49 of this Act to pay tax due from him for the accounting period, and</p></content></level><level class="para1" eId="schedule-5-paragraph-27-2-b"><num>(b)</num><content><p>ends with the day before that on which the amount is paid.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-27-3"><num>(3)</num><intro><p>Sub-paragraph (4) below applies where—</p></intro><level class="para1" eId="schedule-5-paragraph-27-3-a"><num>(a)</num><content><p>under section 50(1) of this Act the Commissioners assess an amount of tax due from a registrable person for an accounting period and notify it to him, and</p></content></level><level class="para1" eId="schedule-5-paragraph-27-3-b"><num>(b)</num><content><p>the assessment is made on the basis that no return required by provision made under section 49 of this Act has been made by the person in relation to the accounting period.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-27-4"><num>(4)</num><intro><p>The amount shall carry interest for the period which—</p></intro><level class="para1" eId="schedule-5-paragraph-27-4-a"><num>(a)</num><content><p>begins with the day after that on which the person is required by provision made under section 49 of this Act to pay tax due from him for the accounting period, and</p></content></level><level class="para1" eId="schedule-5-paragraph-27-4-b"><num>(b)</num><content><p>ends with the day before that on which the amount is paid.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-27-5"><num>(5)</num><intro><p>Sub-paragraph (6) below applies where—</p></intro><level class="para1" eId="schedule-5-paragraph-27-5-a"><num>(a)</num><content><p>under section 50(1) of this Act the Commissioners assess an amount of tax due from a registrable person for an accounting period and notify it to him, and</p></content></level><level class="para1" eId="schedule-5-paragraph-27-5-b"><num>(b)</num><content><p>the assessment (the supplementary assessment) is made on the basis that the amount (the additional amount) is due from him in addition to any amount shown in a return, or in any previous assessment, made in relation to the accounting period.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-27-6"><num>(6)</num><intro><p>The additional amount shall carry interest for the period which—</p></intro><level class="para1" eId="schedule-5-paragraph-27-6-a"><num>(a)</num><content><p>begins with the day on which the supplementary assessment is notified to the person, and</p></content></level><level class="para1" eId="schedule-5-paragraph-27-6-b"><num>(b)</num><content><p>ends with the day before that on which the additional amount is paid.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-27-7"><num>(7)</num><content><p>Sub-paragraph (8) below applies where under section 50(2) of this Act the Commissioners assess an amount as being tax due from a registrable person for an accounting period and notify it to him.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-27-8"><num>(8)</num><intro><p>The amount shall carry interest for the period which—</p></intro><level class="para1" eId="schedule-5-paragraph-27-8-a"><num>(a)</num><content><p>begins with the day on which the assessment is notified to the person, and</p></content></level><level class="para1" eId="schedule-5-paragraph-27-8-b"><num>(b)</num><content><p>ends with the day before that on which the amount is paid.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-27-9"><num>(9)</num><intro><p>Sub-paragraph (10) below applies where under paragraph 32 below the Commissioners—</p></intro><level class="para1" eId="schedule-5-paragraph-27-9-a"><num>(a)</num><content><p>assess an amount due from a person by way of penalty under Part V of this Schedule and notify it to him, or</p></content></level><level class="para1" eId="schedule-5-paragraph-27-9-b"><num>(b)</num><content><p>assess an amount due from a person by way of interest under paragraph 26 above and notify it to him.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-27-10"><num>(10)</num><intro><p>The amount shall carry interest for the period which—</p></intro><level class="para1" eId="schedule-5-paragraph-27-10-a"><num>(a)</num><content><p>begins with the day on which the assessment is notified to the person, and</p></content></level><level class="para1" eId="schedule-5-paragraph-27-10-b"><num>(b)</num><content><p>ends with the day before that on which the amount is paid.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-27-11"><num>(11)</num><intro><p>Interest under this paragraph shall be compound interest calculated—</p></intro><level class="para1" eId="schedule-5-paragraph-27-11-a"><num>(a)</num><content><p>at the penalty rate, and</p></content></level><level class="para1" eId="schedule-5-paragraph-27-11-b"><num>(b)</num><content><p>with monthly rests;</p></content></level><wrapUp><p>and the penalty rate is the rate found by taking the rate at which interest is payable under paragraph 26 above and adding 10 percentage points to that rate.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-27-12"><num>(12)</num><content><p>Interest under this paragraph shall be paid without any deduction of income tax.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-27-13"><num>(13)</num><intro><p>Where—</p></intro><level class="para1" eId="schedule-5-paragraph-27-13-a"><num>(a)</num><content><p>the Commissioners assess and notify an amount as mentioned in sub-paragraph (5)(a) or (7) or (9)(a) or (b) above,</p></content></level><level class="para1" eId="schedule-5-paragraph-27-13-b"><num>(b)</num><content><p>they also specify a date for the purposes of this sub-paragraph, and</p></content></level><level class="para1" eId="schedule-5-paragraph-27-13-c"><num>(c)</num><content><p>the amount concerned is paid on or before that date,</p></content></level><wrapUp><p>the amount shall not carry interest by virtue of sub-paragraph (6) or (8) or (10) above (as the case may be).</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-27-14"><num>(14)</num><intro><p>Sub-paragraph (15) below applies where—</p></intro><level class="para1" eId="schedule-5-paragraph-27-14-a"><num>(a)</num><content><p>an amount carries interest under this paragraph (or would do so apart from that sub-paragraph), and</p></content></level><level class="para1" eId="schedule-5-paragraph-27-14-b"><num>(b)</num><content><p>all or part of the amount turns out not to be due.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-27-15"><num>(15)</num><intro><p>In such a case—</p></intro><level class="para1" eId="schedule-5-paragraph-27-15-a"><num>(a)</num><content><p>the amount or part (as the case may be) shall not carry interest under this paragraph and shall be treated as never having done so, and</p></content></level><level class="para1" eId="schedule-5-paragraph-27-15-b"><num>(b)</num><content><p>all such adjustments as are reasonable shall be made, including adjustments by way of repayment by the Commissioners where appropriate.</p></content></level></subparagraph></paragraph><paragraph eId="schedule-5-paragraph-28" class="schProv1"><num>28</num><subparagraph eId="schedule-5-paragraph-28-1"><num>(1)</num><content><p>Where a person is liable to pay interest under paragraph 27 above the Commissioners or, on appeal, an appeal tribunal may reduce the amount payable to such amount (including nil) as they think proper.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-28-2"><num>(2)</num><content><p>Where the person concerned satisfies the Commissioners or, on appeal, an appeal tribunal that there is a reasonable excuse for the conduct giving rise to the liability to pay interest, that is a factor which (among other things) may be taken into account under sub-paragraph (1) above.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-28-3"><num>(3)</num><content><p>In the case of interest reduced by the Commissioners under sub-paragraph (1) above an appeal tribunal, on an appeal relating to the interest, may cancel the whole or any part of the reduction made by the Commissioners.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-5-part-VI-crossheading-interest-payable-by-commissioners"><heading>Interest payable by Commissioners</heading><paragraph eId="schedule-5-paragraph-29" class="schProv1"><num>29</num><subparagraph eId="schedule-5-paragraph-29-1"><num>(1)</num><intro><p>Where, due to an error on the part of the Commissioners, a person—</p></intro><level class="para1" eId="schedule-5-paragraph-29-1-a"><num>(a)</num><content><p>has paid to them by way of tax an amount which was not tax due and which they are in consequence liable to repay to him,</p></content></level><level class="para1" eId="schedule-5-paragraph-29-1-b"><num>(b)</num><content><p>has failed to claim payment of an amount to the payment of which he was entitled in pursuance of provision made under section 51(2)(c) or (d) or (f) of this Act, or</p></content></level><level class="para1" eId="schedule-5-paragraph-29-1-c"><num>(c)</num><content><p>has suffered delay in receiving payment of an amount due to him from them in connection with tax,</p></content></level><wrapUp><p>then, if and to the extent that they would not be liable to do so apart from this paragraph, they shall (subject to the following provisions of this paragraph) pay interest to him on that amount for the applicable period.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-29-2"><num>(2)</num><intro><p>The applicable period, in a case falling within sub-paragraph (1)(a) above, is the period—</p></intro><level class="para1" eId="schedule-5-paragraph-29-2-a"><num>(a)</num><content><p>beginning with the date on which the payment is received by the Commissioners, and</p></content></level><level class="para1" eId="schedule-5-paragraph-29-2-b"><num>(b)</num><content><p>ending with the date on which they authorise payment of the amount on which the interest is payable.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-29-3"><num>(3)</num><intro><p>The applicable period, in a case falling within sub-paragraph (1)(b) or (c) above, is the period—</p></intro><level class="para1" eId="schedule-5-paragraph-29-3-a"><num>(a)</num><content><p>beginning with the date on which, apart from the error, the Commissioners might reasonably have been expected to authorise payment of the amount on which the interest is payable, and</p></content></level><level class="para1" eId="schedule-5-paragraph-29-3-b"><num>(b)</num><content><p>ending with the date on which they in fact authorise payment of that amount.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-29-4"><num>(4)</num><content><p>In determining the applicable period for the purposes of this paragraph, there shall be left out of account any period referable to the raising and answering of any reasonable enquiry relating to any matter giving rise to, or otherwise connected with, the person’s entitlement to interest under this paragraph.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-29-5"><num>(5)</num><intro><p>In determining for the purposes of sub-paragraph (4) above whether any period is referable to the raising and answering of such an enquiry as is there mentioned, there shall be taken to be so referable any period which begins with the date on which the Commissioners first consider it necessary to make such an enquiry and ends with the date on which the Commissioners—</p></intro><level class="para1" eId="schedule-5-paragraph-29-5-a"><num>(a)</num><content><p>satisfy themselves that they have received a complete answer to the enquiry, or</p></content></level><level class="para1" eId="schedule-5-paragraph-29-5-b"><num>(b)</num><content><p>determine not to make the enquiry or (if they have made it) not to pursue it further;</p></content></level><wrapUp><p>but excluding so much of that period as may be prescribed by regulations.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-29-6"><num>(6)</num><intro><p>For the purposes of sub-paragraph (5) above it is immaterial—</p></intro><level class="para1" eId="schedule-5-paragraph-29-6-a"><num>(a)</num><content><p>whether any enquiry is in fact made;</p></content></level><level class="para1" eId="schedule-5-paragraph-29-6-b"><num>(b)</num><content><p>whether any enquiry is or might have been made of the person referred to in sub-paragraph (1) above or of an authorised person or of some other person.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-29-7"><num>(7)</num><content><p>The Commissioners shall only be liable to pay interest under this paragraph on a claim made in writing for that purpose.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-29-8"><num>(8)</num><content><p>No claim shall be made under this paragraph after the expiry of six years from the date on which the claimant discovered the error or could with reasonable diligence have discovered it.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-29-9"><num>(9)</num><content><p>Any reference in this paragraph to receiving a payment from the Commissioners includes a reference to the discharge, by way of set-off, of their liability to make it.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-29-10"><num>(10)</num><content><p>Interest under this paragraph shall be payable at the rate applicable under section 197 of this Act.</p></content></subparagraph></paragraph><paragraph eId="schedule-5-paragraph-30" class="schProv1"><num>30</num><subparagraph eId="schedule-5-paragraph-30-1"><num>(1)</num><intro><p>Where—</p></intro><level class="para1" eId="schedule-5-paragraph-30-1-a"><num>(a)</num><content><p>any interest is payable by the Commissioners to a person on a sum due to him under this Part of this Act, and</p></content></level><level class="para1" eId="schedule-5-paragraph-30-1-b"><num>(b)</num><content><p>he is a person to whom regulations under section 51 of this Act apply,</p></content></level><wrapUp><p>the interest shall be treated as an amount to which he is entitled by way of credit in pursuance of the regulations.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-30-2"><num>(2)</num><content><p>Sub-paragraph (1) above shall be disregarded for the purpose of determining a person’s entitlement to interest or the amount of interest to which he is entitled.</p></content></subparagraph></paragraph></hcontainer></part><part eId="schedule-5-part-VII"><num>Part VII</num><heading>Miscellaneous</heading><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-5-part-VII-crossheading-security-for-tax"><heading>Security for tax</heading><paragraph eId="schedule-5-paragraph-31" class="schProv1"><num>31</num><content><p>Where it appears to the Commissioners requisite to do so for the protection of the revenue they may require a registrable person, as a condition of his carrying out taxable activities, to give security (or further security) of such amount and in such manner as they may determine for the payment of any tax which is or may become due from him.</p></content></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-5-part-VII-crossheading-assessments-to-penalties-etc"><heading>Assessments to penalties etc.</heading><paragraph eId="schedule-5-paragraph-32" class="schProv1"><num>32</num><subparagraph eId="schedule-5-paragraph-32-1"><num>(1)</num><intro><p>Where a person is liable—</p></intro><level class="para1" eId="schedule-5-paragraph-32-1-a"><num>(a)</num><content><p>to a penalty under Part V of this Schedule, or</p></content></level><level class="para1" eId="schedule-5-paragraph-32-1-b"><num>(b)</num><content><p>for interest under paragraph 26 or 27 above,</p></content></level><wrapUp><p>the Commissioners may, subject to sub-paragraph (2) below, assess the amount due by way of penalty or interest (as the case may be) and notify it to him accordingly; and the fact that any conduct giving rise to a penalty under Part V of this Schedule may have ceased before an assessment is made under this paragraph shall not affect the power of the Commissioners to make such an assessment.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-32-2"><num>(2)</num><intro><p>In the case of the penalties and interest referred to in the following paragraphs of this sub-paragraph, the assessment under this paragraph shall be of an amount due in respect of the accounting period which in the paragraph concerned is referred to as the relevant period—</p></intro><level class="para1" eId="schedule-5-paragraph-32-2-a"><num>(a)</num><content><p>in the case of a penalty under paragraph 18 above relating to the evasion of tax, and in the case of interest under paragraph 27 above on an amount due by way of such a penalty, the relevant period is the accounting period for which the tax evaded was due;</p></content></level><level class="para1" eId="schedule-5-paragraph-32-2-b"><num>(b)</num><content><p>in the case of a penalty under paragraph 18 above relating to the obtaining of a payment under regulations under section 51(2)(c) or (d) or (f) of this Act, and in the case of interest under paragraph 27 above on an amount due by way of such a penalty, the relevant period is the accounting period in respect of which the payment was obtained;</p></content></level><level class="para1" eId="schedule-5-paragraph-32-2-c"><num>(c)</num><content><p>in the case of interest under paragraph 26 above, and in the case of interest under paragraph 27 above on an amount due by way of interest under paragraph 26 above, the relevant period is the accounting period in respect of which the tax was due;</p></content></level><level class="para1" eId="schedule-5-paragraph-32-2-d"><num>(d)</num><content><p>in the case of interest under paragraph 27 above on an amount of tax, the relevant period is the accounting period in respect of which the tax was due.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-32-3"><num>(3)</num><content><p>In a case where the amount of any penalty or interest falls to be calculated by reference to tax which was not paid at the time it should have been and that tax cannot be readily attributed to any one or more accounting periods, it shall be treated for the purposes of this Part of this Act as tax due for such period or periods as the Commissioners may determine to the best of their judgment and notify to the person liable for the tax and penalty or interest.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-32-4"><num>(4)</num><content><p>Where a person is assessed under this paragraph to an amount due by way of any penalty or interest falling within sub-paragraph (2) above and is also assessed under subsection (1) or (2) of section 50 of this Act for the accounting period which is the relevant period under sub-paragraph (2) above, the assessments may be combined and notified to him as one assessment, but the amount of the penalty or interest shall be separately identified in the notice.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-32-5"><num>(5)</num><content><p>Sub-paragraph (6) below applies in the case of an amount due by way of interest under paragraph 27 above.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-32-6"><num>(6)</num><intro><p>Where this sub-paragraph applies in the case of an amount—</p></intro><level class="para1" eId="schedule-5-paragraph-32-6-a"><num>(a)</num><content><p>a notice of assessment under this paragraph shall specify a date, being not later than the date of the notice, to which the amount of interest which is assessed is calculated, and</p></content></level><level class="para1" eId="schedule-5-paragraph-32-6-b"><num>(b)</num><content><p>if the interest continues to accrue after that date, a further assessment or further assessments may be made under this paragraph in respect of amounts which so accrue.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-32-7"><num>(7)</num><content><p>If, within such period as may be notified by the Commissioners to the person liable for the interest under paragraph 27 above, the amount referred to in paragraph 27(2), (4), (6), (8) or (10) above (as the case may be) is paid, it shall be treated for the purposes of paragraph 27 above as paid on the date specified as mentioned in sub-paragraph (6)(a) above.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-32-8"><num>(8)</num><content><p>Where an amount has been assessed and notified to any person under this paragraph it shall be recoverable as if it were tax due from him unless, or except to the extent that, the assessment has subsequently been withdrawn or reduced.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-32-9"><num>(9)</num><content><p>Subsection (8) of section 50 of this Act shall apply for the purposes of this paragraph as it applies for the purposes of that section.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-5-part-VII-crossheading-assessments-time-limits"><heading>Assessments: time limits</heading><paragraph eId="schedule-5-paragraph-33" class="schProv1"><num>33</num><subparagraph eId="schedule-5-paragraph-33-1"><num>(1)</num><intro><p>Subject to the following provisions of this paragraph, an assessment under—</p></intro><level class="para1" eId="schedule-5-paragraph-33-1-a"><num>(a)</num><content><p>any provision of section 50 of this Act, or</p></content></level><level class="para1" eId="schedule-5-paragraph-33-1-b"><num>(b)</num><content><p>paragraph 32 above,</p></content></level><wrapUp><p>shall not be made more than six years after the end of the accounting period concerned or, in the case of an assessment under paragraph 32 above of an amount due by way of a penalty which is not a penalty referred to in sub-paragraph (2) of that paragraph, six years after the event giving rise to the penalty.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-33-2"><num>(2)</num><intro><p>Subject to sub-paragraph (5) below, an assessment under paragraph 32 above of—</p></intro><level class="para1" eId="schedule-5-paragraph-33-2-a"><num>(a)</num><content><p>an amount due by way of any penalty referred to in sub-paragraph (2) of that paragraph, or</p></content></level><level class="para1" eId="schedule-5-paragraph-33-2-b"><num>(b)</num><content><p>an amount due by way of interest,</p></content></level><wrapUp><p>may be made at any time before the expiry of the period of two years beginning with the time when the amount of tax due for the accounting period concerned has been finally determined.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-33-3"><num>(3)</num><content><p>In relation to an assessment under paragraph 32 above, any reference in sub-paragraph (1) or (2) above to the accounting period concerned is a reference to that period which, in the case of the penalty or interest concerned, is the relevant period referred to in sub-paragraph (2) of that paragraph.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-33-4"><num>(4)</num><intro><p>Subject to sub-paragraph (5) below, if tax has been lost—</p></intro><level class="para1" eId="schedule-5-paragraph-33-4-a"><num>(a)</num><content><p>as a result of conduct falling within paragraph 18(1) above or for which a person has been convicted of fraud, or</p></content></level><level class="para1" eId="schedule-5-paragraph-33-4-b"><num>(b)</num><content><p>in circumstances giving rise to liability to a penalty under paragraph 21 above,</p></content></level><wrapUp><p>an assessment may be made as if, in sub-paragraph (1) above, each reference to six years were a reference to twenty years.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-33-5"><num>(5)</num><intro><p>Where after a person’s death the Commissioners propose to assess an amount as due by reason of some conduct of the deceased—</p></intro><level class="para1" eId="schedule-5-paragraph-33-5-a"><num>(a)</num><content><p>the assessment shall not be made more than three years after the death, and</p></content></level><level class="para1" eId="schedule-5-paragraph-33-5-b"><num>(b)</num><content><p>if the circumstances are as set out in sub-paragraph (4) above, the modification of sub-paragraph (1) above contained in that sub-paragraph shall not apply but any assessment which (from the point of view of time limits) could have been made immediately after the death may be made at any time within three years after it.</p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-5-part-VII-crossheading-supplementary-assessments"><heading>Supplementary assessments</heading><paragraph eId="schedule-5-paragraph-34" class="schProv1"><num>34</num><intro><p>If, otherwise than in circumstances falling within subsection (5)(b) of section 50 of this Act, it appears to the Commissioners that the amount which ought to have been assessed in an assessment under any provision of that section or under paragraph 32 above exceeds the amount which was so assessed, then—</p></intro><level class="para1" eId="schedule-5-paragraph-34-a"><num>(a)</num><content><p>under the like provision as that assessment was made, and</p></content></level><level class="para1" eId="schedule-5-paragraph-34-b"><num>(b)</num><content><p>on or before the last day on which that assessment could have been made,</p></content></level><wrapUp><p>the Commissioners may make a supplementary assessment of the amount of the excess and shall notify the person concerned accordingly.</p></wrapUp></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-5-part-VII-crossheading-disclosure-of-information"><heading>Disclosure of information</heading><paragraph eId="schedule-5-paragraph-35" class="schProv1"><num>35</num><subparagraph eId="schedule-5-paragraph-35-1"><num>(1)</num><intro><p>Notwithstanding any obligation not to disclose information that would otherwise apply, the Commissioners may disclose information to—</p></intro><level class="para1" eId="schedule-5-paragraph-35-1-a"><num>(a)</num><content><p>the Secretary of State,</p></content></level><level class="para1" eId="schedule-5-paragraph-35-1-b"><num>(b)</num><content><p>the Environment Agency,</p></content></level><level class="para1" eId="schedule-5-paragraph-35-1-c"><num>(c)</num><content><p>the Scottish Environment Protection Agency,</p></content></level><level class="para1" eId="schedule-5-paragraph-35-1-d"><num>(d)</num><content><p>the Department of the Environment for Northern Ireland,</p></content></level><level class="para1" eId="schedule-5-paragraph-35-1-e"><num>(e)</num><content><p>a district council in Northern Ireland, or</p></content></level><level class="para1" eId="schedule-5-paragraph-35-1-f"><num>(f)</num><content><p>an authorised officer of any person (a principal) mentioned in paragraphs (a) to (e) above,</p></content></level><wrapUp><p>for the purpose of assisting the principal concerned in the performance of the principal’s duties.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-35-2"><num>(2)</num><content><p>Notwithstanding any such obligation as is mentioned in sub-paragraph (1) above, any person mentioned in sub-paragraph (1)(a) to (f) above may disclose information to the Commissioners or to an authorised officer of the Commissioners for the purpose of assisting the Commissioners in the performance of duties in relation to tax.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-35-3"><num>(3)</num><intro><p>Information that has been disclosed to a person by virtue of this paragraph shall not be disclosed by him except—</p></intro><level class="para1" eId="schedule-5-paragraph-35-3-a"><num>(a)</num><content><p>to another person to whom (instead of him) disclosure could by virtue of this paragraph have been made, or</p></content></level><level class="para1" eId="schedule-5-paragraph-35-3-b"><num>(b)</num><content><p>for the purpose of any proceedings connected with the operation of any provision of, or made under, any enactment in relation to the environment or to tax.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-35-4"><num>(4)</num><content><p>References in the preceding provisions of this paragraph to an authorised officer of any person (the principal) are to any person who has been designated by the principal as a person to and by whom information may be disclosed by virtue of this paragraph.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-35-5"><num>(5)</num><content><p>The Secretary of State shall notify the Commissioners in writing of the name of any person designated by the Secretary of State under sub-paragraph (4) above.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-35-6"><num>(6)</num><content><p>No charge may be made for a disclosure made by virtue of this paragraph.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-5-part-VII-crossheading-the-register-publication"><heading>The register: publication</heading><paragraph eId="schedule-5-paragraph-36" class="schProv1"><num>36</num><subparagraph eId="schedule-5-paragraph-36-1"><num>(1)</num><intro><p>The Commissioners may publish, by such means as they think fit, information which—</p></intro><level class="para1" eId="schedule-5-paragraph-36-1-a"><num>(a)</num><content><p>is derived from the register kept under section 47 of this Act, and</p></content></level><level class="para1" eId="schedule-5-paragraph-36-1-b"><num>(b)</num><content><p>falls within any of the descriptions set out below.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-36-2"><num>(2)</num><intro><p>The descriptions are—</p></intro><level class="para1" eId="schedule-5-paragraph-36-2-a"><num>(a)</num><content><p>the names of registered persons;</p></content></level><level class="para1" eId="schedule-5-paragraph-36-2-b"><num>(b)</num><content><p>the addresses of any sites or other premises at which they carry on business;</p></content></level><level class="para1" eId="schedule-5-paragraph-36-2-c"><num>(c)</num><content><p>the registration numbers assigned to them in the register;</p></content></level><level class="para1" eId="schedule-5-paragraph-36-2-d"><num>(d)</num><content><p>the fact (where it is the case) that the registered person is a body corporate which under section 59 of this Act is treated as a member of a group;</p></content></level><level class="para1" eId="schedule-5-paragraph-36-2-e"><num>(e)</num><content><p>the names of the other bodies corporate treated under that section as members of the group;</p></content></level><level class="para1" eId="schedule-5-paragraph-36-2-f"><num>(f)</num><content><p>the addresses of any sites or other premises at which those other bodies carry on business.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-36-3"><num>(3)</num><content><p>Information may be published in accordance with this paragraph notwithstanding any obligation not to disclose the information that would otherwise apply.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-5-part-VII-crossheading-evidence-by-certificate-etc"><heading>Evidence by certificate etc.</heading><paragraph eId="schedule-5-paragraph-37" class="schProv1"><num>37</num><subparagraph eId="schedule-5-paragraph-37-1"><num>(1)</num><intro><p>A certificate of the Commissioners—</p></intro><level class="para1" eId="schedule-5-paragraph-37-1-a"><num>(a)</num><content><p>that a person was or was not at any time registered under section 47 of this Act,</p></content></level><level class="para1" eId="schedule-5-paragraph-37-1-b"><num>(b)</num><content><p>that any return required by regulations made under section 49 of this Act has not been made or had not been made at any time, or</p></content></level><level class="para1" eId="schedule-5-paragraph-37-1-c"><num>(c)</num><content><p>that any tax shown as due in a return made in pursuance of regulations made under section 49 of this Act, or in an assessment made under section 50 of this Act, has not been paid,</p></content></level><wrapUp><p>shall be sufficient evidence of that fact until the contrary is proved.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-37-2"><num>(2)</num><content><p>A photograph of any document furnished to the Commissioners for the purposes of this Part of this Act and certified by them to be such a photograph shall be admissible in any proceedings, whether civil or criminal, to the same extent as the document itself.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-37-3"><num>(3)</num><content><p>Any document purporting to be a certificate under sub-paragraph (1) or (2) above shall be taken to be such a certificate until the contrary is proved.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-5-part-VII-crossheading-service-of-notices-etc"><heading>Service of notices etc.</heading><paragraph eId="schedule-5-paragraph-38" class="schProv1"><num>38</num><content><p>Any notice, notification or requirement to be served on, given to or made of any person for the purposes of this Part of this Act may be served, given or made by sending it by post in a letter addressed to that person at his last or usual residence or place of business.</p></content></paragraph><paragraph eId="schedule-5-paragraph-39" class="schProv1"><num>39</num><subparagraph eId="schedule-5-paragraph-39-1"><num>(1)</num><content><p>This paragraph applies to directions, specifications and conditions which the Commissioners or an authorised person may give or impose under any provision of this Part.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-39-2"><num>(2)</num><content><p>A direction, specification or condition given or imposed by the Commissioners may be withdrawn or varied by them.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-39-3"><num>(3)</num><content><p>A direction, specification or condition given or imposed by an authorised person may be withdrawn or varied by him or by another authorised person.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-39-4"><num>(4)</num><intro><p>No direction, specification or condition shall have effect as regards any person it is intended to affect unless—</p></intro><level class="para1" eId="schedule-5-paragraph-39-4-a"><num>(a)</num><content><p>a notice containing it is served on him, or</p></content></level><level class="para1" eId="schedule-5-paragraph-39-4-b"><num>(b)</num><content><p>other reasonable steps are taken with a view to bringing it to his attention.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-39-5"><num>(5)</num><intro><p>No withdrawal or variation of a direction, specification or condition shall have effect as regards any person the withdrawal or variation is intended to affect unless—</p></intro><level class="para1" eId="schedule-5-paragraph-39-5-a"><num>(a)</num><content><p>a notice containing the withdrawal or variation is served on him, or</p></content></level><level class="para1" eId="schedule-5-paragraph-39-5-b"><num>(b)</num><content><p>other reasonable steps are taken with a view to bringing the withdrawal or variation to his attention.</p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-5-part-VII-crossheading-no-deduction-of-penalties-or-interest"><heading>No deduction of penalties or interest</heading><paragraph eId="schedule-5-paragraph-40" class="schProv1"><num>40</num><content><p><mod>In section 827 of the Taxes Act 1988 (no deduction for penalties etc.) the following subsection shall be inserted after subsection (1B)—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1C)</num><intro><p>Where a person is liable to make a payment by way of—</p></intro><level class="para1"><num>(a)</num><content><p>penalty under Part V of Schedule 5 to the Finance Act 1996 (landfill tax), or</p></content></level><level class="para1"><num>(b)</num><content><p>interest under paragraph 26 or 27 of that Schedule,</p></content></level><wrapUp><p>the payment shall not be allowed as a deduction in computing any income, profits or losses for any tax purposes.</p></wrapUp></subsection></quotedStructure></mod></p></content></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-5-part-VII-crossheading-destination-of-receipts"><heading>Destination of receipts</heading><paragraph eId="schedule-5-paragraph-41" class="schProv1"><num>41</num><intro><p>All money and securities for money collected or received for or on account of the tax shall—</p></intro><level class="para1" eId="schedule-5-paragraph-41-a"><num>(a)</num><content><p>if collected or received in Great Britain, be placed to the general account of the Commissioners kept at the Bank of England under section 17 of the <noteRef href="#m00210" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Customs and Excise Management Act 1979;</p></content></level><level class="para1" eId="schedule-5-paragraph-41-b"><num>(b)</num><content><p>if collected or received in Northern Ireland, be paid into the Consolidated Fund of the United Kingdom in such manner as the Treasury may direct.</p></content></level></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-5-part-VII-crossheading-setoff-of-amounts"><heading>Set-off of amounts</heading><paragraph eId="schedule-5-paragraph-42" class="schProv1"><num>42</num><subparagraph eId="schedule-5-paragraph-42-1"><num>(1)</num><intro><p>Regulations may make provision in relation to any case where—</p></intro><level class="para1" eId="schedule-5-paragraph-42-1-a"><num>(a)</num><content><p>a person is under a duty to pay to the Commissioners at any time an amount or amounts in respect of landfill tax, and</p></content></level><level class="para1" eId="schedule-5-paragraph-42-1-b"><num>(b)</num><content><p>the Commissioners are under a duty to pay to that person at the same time an amount or amounts in respect of any tax (or taxes) under their care and management.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-42-2"><num>(2)</num><content><p>The regulations may provide that if the total of the amount or amounts mentioned in sub-paragraph (1)(a) above exceeds the total of the amount or amounts mentioned in sub-paragraph (1)(b) above, the latter shall be set off against the former.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-42-3"><num>(3)</num><content><p>The regulations may provide that if the total of the amount or amounts mentioned in sub-paragraph (1)(b) above exceeds the total of the amount or amounts mentioned in sub-paragraph (1)(a) above, the Commissioners may set off the latter in paying the former.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-42-4"><num>(4)</num><content><p>The regulations may provide that if the total of the amount or amounts mentioned in sub-paragraph (1)(a) above is the same as the total of the amount or amounts mentioned in sub-paragraph (1)(b) above no payment need be made in respect of the former or the latter.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-42-5"><num>(5)</num><content><p>The regulations may include provision treating any duty to pay mentioned in sub-paragraph (1) above as discharged accordingly.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-42-6"><num>(6)</num><content><p>References in sub-paragraph (1) above to an amount in respect of a particular tax include references not only to an amount of tax itself but also to other amounts such as interest and penalty.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-42-7"><num>(7)</num><content><p>In this paragraph “tax” includes “duty”.</p></content></subparagraph></paragraph><paragraph eId="schedule-5-paragraph-43" class="schProv1"><num>43</num><subparagraph eId="schedule-5-paragraph-43-1"><num>(1)</num><intro><p>Regulations may make provision in relation to any case where—</p></intro><level class="para1" eId="schedule-5-paragraph-43-1-a"><num>(a)</num><content><p>a person is under a duty to pay to the Commissioners at any time an amount or amounts in respect of any tax (or taxes) under their care and management, and</p></content></level><level class="para1" eId="schedule-5-paragraph-43-1-b"><num>(b)</num><content><p>the Commissioners are under a duty to pay to that person at the same time an amount or amounts in respect of landfill tax.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-43-2"><num>(2)</num><content><p>The regulations may provide that if the total of the amount or amounts mentioned in sub-paragraph (1)(a) above exceeds the total of the amount or amounts mentioned in sub-paragraph (1)(b) above, the latter shall be set off against the former.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-43-3"><num>(3)</num><content><p>The regulations may provide that if the total of the amount or amounts mentioned in sub-paragraph (1)(b) above exceeds the total of the amount or amounts mentioned in sub-paragraph (1)(a) above, the Commissioners may set off the latter in paying the former.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-43-4"><num>(4)</num><content><p>The regulations may provide that if the total of the amount or amounts mentioned in sub-paragraph (1)(a) above is the same as the total of the amount or amounts mentioned in sub-paragraph (1)(b) above no payment need be made in respect of the former or the latter.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-43-5"><num>(5)</num><content><p>The regulations may include provision treating any duty to pay mentioned in sub-paragraph (1) above as discharged accordingly.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-43-6"><num>(6)</num><content><p>References in sub-paragraph (1) above to an amount in respect of a particular tax include references not only to an amount of tax itself but also to other amounts such as interest and penalty.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-43-7"><num>(7)</num><content><p>In this paragraph “tax” includes “duty”.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-5-part-VII-crossheading-amounts-shown-as-tax-on-invoices"><heading>Amounts shown as tax on invoices</heading><paragraph eId="schedule-5-paragraph-44" class="schProv1"><num>44</num><subparagraph eId="schedule-5-paragraph-44-1"><num>(1)</num><intro><p>Where—</p></intro><level class="para1" eId="schedule-5-paragraph-44-1-a"><num>(a)</num><content><p>a registrable person issues an invoice showing an amount as tax chargeable on an event, and</p></content></level><level class="para1" eId="schedule-5-paragraph-44-1-b"><num>(b)</num><content><p>no tax is in fact chargeable on the event,</p></content></level><wrapUp><p>an amount equal to the amount shown as tax shall be recoverable from the person as a debt due to the Crown.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-44-2"><num>(2)</num><intro><p>Where—</p></intro><level class="para1" eId="schedule-5-paragraph-44-2-a"><num>(a)</num><content><p>a registrable person issues an invoice showing an amount as tax chargeable on a taxable disposal, and</p></content></level><level class="para1" eId="schedule-5-paragraph-44-2-b"><num>(b)</num><content><p>the amount shown as tax exceeds the amount of tax in fact chargeable on the disposal,</p></content></level><wrapUp><p>an amount equal to the excess shall be recoverable from the person as a debt due to the Crown.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-44-3"><num>(3)</num><content><p>References in this paragraph to an invoice are to any invoice, whether or not it is a landfill invoice within the meaning of section 61 of this Act.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-5-part-VII-crossheading-adjustment-of-contracts"><heading>Adjustment of contracts</heading><paragraph eId="schedule-5-paragraph-45" class="schProv1"><num>45</num><subparagraph eId="schedule-5-paragraph-45-1"><num>(1)</num><intro><p>This paragraph applies where—</p></intro><level class="para1" eId="schedule-5-paragraph-45-1-a"><num>(a)</num><content><p>material undergoes a landfill disposal,</p></content></level><level class="para1" eId="schedule-5-paragraph-45-1-b"><num>(b)</num><content><p>a payment falls to be made under a disposal contract relating to the material, and</p></content></level><level class="para1" eId="schedule-5-paragraph-45-1-c"><num>(c)</num><content><p>after the making of the contract there is a change in the tax chargeable on the landfill disposal.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-45-2"><num>(2)</num><content><p>In such a case the amount of any payment mentioned in sub-paragraph (1)(b) above shall be adjusted, unless the disposal contract otherwise provides, so as to reflect the tax chargeable on the landfill disposal.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-45-3"><num>(3)</num><intro><p>For the purposes of this paragraph a disposal contract relating to material is a contract providing for the disposal of the material, and it is immaterial—</p></intro><level class="para1" eId="schedule-5-paragraph-45-3-a"><num>(a)</num><content><p>when the contract was made;</p></content></level><level class="para1" eId="schedule-5-paragraph-45-3-b"><num>(b)</num><content><p>whether the contract also provides for other matters;</p></content></level><level class="para1" eId="schedule-5-paragraph-45-3-c"><num>(c)</num><content><p>whether the contract provides for a method of disposal and (if it does) what method it provides for.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-45-4"><num>(4)</num><intro><p>The reference in sub-paragraph (1) above to a change in the tax chargeable is a reference to a change—</p></intro><level class="para1" eId="schedule-5-paragraph-45-4-a"><num>(a)</num><content><p>to or from no tax being chargeable, or</p></content></level><level class="para1" eId="schedule-5-paragraph-45-4-b"><num>(b)</num><content><p>in the amount of tax chargeable.</p></content></level></subparagraph></paragraph><paragraph eId="schedule-5-paragraph-46" class="schProv1"><num>46</num><subparagraph eId="schedule-5-paragraph-46-1"><num>(1)</num><intro><p>This paragraph applies where—</p></intro><level class="para1" eId="schedule-5-paragraph-46-1-a"><num>(a)</num><content><p>work is carried out under a construction contract,</p></content></level><level class="para1" eId="schedule-5-paragraph-46-1-b"><num>(b)</num><content><p>as a result of the work, material undergoes a landfill disposal,</p></content></level><level class="para1" eId="schedule-5-paragraph-46-1-c"><num>(c)</num><content><p>the contract makes no provision as to the disposal of such material, and</p></content></level><level class="para1" eId="schedule-5-paragraph-46-1-d"><num>(d)</num><content><p>the contract was made on or before 29th November 1994 (when the proposal to create tax was announced).</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-46-2"><num>(2)</num><intro><p>In such a case the amount of any payment which falls to be made—</p></intro><level class="para1" eId="schedule-5-paragraph-46-2-a"><num>(a)</num><content><p>under the construction contract, and</p></content></level><level class="para1" eId="schedule-5-paragraph-46-2-b"><num>(b)</num><content><p>in respect of the work,</p></content></level><wrapUp><p>shall be adjusted, unless the contract otherwise provides, so as to reflect the tax (if any) chargeable on the disposal.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-46-3"><num>(3)</num><intro><p>For the purposes of this paragraph a construction contract is a contract under which all or any of the following work is to be carried out—</p></intro><level class="para1" eId="schedule-5-paragraph-46-3-a"><num>(a)</num><content><p>the preparation of a site;</p></content></level><level class="para1" eId="schedule-5-paragraph-46-3-b"><num>(b)</num><content><p>demolition;</p></content></level><level class="para1" eId="schedule-5-paragraph-46-3-c"><num>(c)</num><content><p>building;</p></content></level><level class="para1" eId="schedule-5-paragraph-46-3-d"><num>(d)</num><content><p>civil engineering.</p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-5-part-VII-crossheading-adjustment-of-rent-etc"><heading>Adjustment of rent etc.</heading><paragraph eId="schedule-5-paragraph-47" class="schProv1"><num>47</num><subparagraph eId="schedule-5-paragraph-47-1"><num>(1)</num><intro><p>This paragraph applies where—</p></intro><level class="para1" eId="schedule-5-paragraph-47-1-a"><num>(a)</num><content><p>an agreement with regard to any sum payable in respect of the use of land (whether the sum is called rent or royalty or otherwise) provides that the amount of the sum is to be calculated by reference to the turnover of a business,</p></content></level><level class="para1" eId="schedule-5-paragraph-47-1-b"><num>(b)</num><content><p>the agreement was made on or before 29th November 1994 (when the proposal to create tax was announced), and</p></content></level><level class="para1" eId="schedule-5-paragraph-47-1-c"><num>(c)</num><content><p>the circumstances are such that (had the agreement been made after that date) it can reasonably be expected that it would have provided that tax be ignored in calculating the turnover.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-47-2"><num>(2)</num><content><p>In such a case the agreement shall be taken to provide that tax be ignored in calculating the turnover.</p></content></subparagraph></paragraph></hcontainer></part></hcontainer>
<part xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" eId="schedule-5-part-I"><num>Part I</num><heading>Information</heading><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-5-part-I-crossheading-general"><heading>General</heading><paragraph eId="schedule-5-paragraph-1" class="schProv1"><num>1</num><subparagraph eId="schedule-5-paragraph-1-1"><num>(1)</num><content><p>Every person who is concerned (in whatever capacity) with any landfill disposal shall furnish to the Commissioners such information relating to the disposal as the Commissioners may reasonably require.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-1-2"><num>(2)</num><content><p>The information mentioned in sub-paragraph (1) above shall be furnished within such time and in such form as the Commissioners may reasonably require.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-5-part-I-crossheading-records"><heading>Records</heading><paragraph eId="schedule-5-paragraph-2" class="schProv1"><num>2</num><subparagraph eId="schedule-5-paragraph-2-1"><num>(1)</num><content><p>Regulations may require registrable persons to make records.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-2-2"><num>(2)</num><content><p>Regulations under sub-paragraph (1) above may be framed by reference to such records as may be stipulated in any notice published by the Commissioners in pursuance of the regulations and not withdrawn by a further notice.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-2-3"><num>(3)</num><intro><p>Regulations may—</p></intro><level class="para1" eId="schedule-5-paragraph-2-3-a"><num>(a)</num><content><p>require registrable persons to preserve records of a prescribed description (whether or not the records are required to be made in pursuance of regulations) for such period not exceeding six years as may be specified in the regulations;</p></content></level><level class="para1" eId="schedule-5-paragraph-2-3-b"><num>(b)</num><content><p>authorise the Commissioners to direct that any such records need only be preserved for a shorter period than that specified in the regulations;</p></content></level><level class="para1" eId="schedule-5-paragraph-2-3-c"><num>(c)</num><content><p>authorise a direction to be made so as to apply generally or in such cases as the Commissioners may stipulate.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-2-4"><num>(4)</num><content><p>Any duty under regulations to preserve records may be discharged by the preservation of the information contained in them by such means as the Commissioners may approve; and where that information is so preserved a copy of any document forming part of the records shall (subject to the following provisions of this paragraph) be admissible in evidence in any proceedings, whether civil or criminal, to the same extent as the records themselves.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-2-5"><num>(5)</num><content><p>The Commissioners may, as a condition of approving under sub-paragraph (4) above any means of preserving information contained in any records, impose such reasonable requirements as appear to them necessary for securing that the information will be as readily available to them as if the records themselves had been preserved.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-2-6"><num>(6)</num><intro><p>A statement contained in a document produced by a computer shall not by virtue of sub-paragraph (4) above be admissible in evidence—</p></intro><level class="para1" eId="schedule-5-paragraph-2-6-a"><num>(a)</num><content><p>in criminal proceedings in England and Wales, except in accordance with sections 69 and 70 of the <noteRef href="#m00193" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Police and Criminal Evidence Act 1984 and Part II of the <noteRef href="#m00194" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Criminal Justice Act 1988;</p></content></level><level class="para1" eId="schedule-5-paragraph-2-6-b"><num>(b)</num><content><p>in civil proceedings in Scotland, except in accordance with sections 5 and 6 of the <noteRef href="#m00195" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Civil Evidence (Scotland) Act 1988;</p></content></level><level class="para1" eId="schedule-5-paragraph-2-6-c"><num>(c)</num><content><p>in criminal proceedings in Scotland, except in accordance with Schedule 8 to the <noteRef href="#m00196" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Criminal Procedure (Scotland) Act 1995;</p></content></level><level class="para1" eId="schedule-5-paragraph-2-6-d"><num>(d)</num><content><p>in civil proceedings in Northern Ireland, except in accordance with sections 2 and 3 of the <noteRef href="#m00197" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Civil Evidence Act (Northern Ireland) 1971;</p></content></level><level class="para1" eId="schedule-5-paragraph-2-6-e"><num>(e)</num><content><p>in criminal proceedings in Northern Ireland, except in accordance with Article 68 of the <noteRef href="#m00198" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Police and Criminal Evidence (Northern Ireland) Order 1989 and Part II of the <noteRef href="#m00199" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Criminal Justice (Evidence, Etc.) (Northern Ireland) Order 1988.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-2-7"><num>(7)</num><content><p>In the case of civil proceedings in England and Wales to which sections 5 and 6 of the <noteRef href="#m00200" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Civil Evidence Act 1968 apply, a statement contained in a document produced by a computer shall not be admissible in evidence by virtue of sub-paragraph (4) above except in accordance with those sections.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-5-part-I-crossheading-documents"><heading>Documents</heading><paragraph eId="schedule-5-paragraph-3" class="schProv1"><num>3</num><subparagraph eId="schedule-5-paragraph-3-1"><num>(1)</num><content><p>Every person who is concerned (in whatever capacity) with any landfill disposal shall upon demand made by an authorised person produce or cause to be produced for inspection by that person any documents relating to the disposal.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-3-2"><num>(2)</num><content><p>Where, by virtue of sub-paragraph (1) above, an authorised person has power to require the production of any documents from any person, he shall have the like power to require production of the documents concerned from any other person who appears to the authorised person to be in possession of them; but where any such other person claims a lien on any document produced by him, the production shall be without prejudice to the lien.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-3-3"><num>(3)</num><intro><p>The documents mentioned in sub-paragraphs (1) and (2) above shall be produced—</p></intro><level class="para1" eId="schedule-5-paragraph-3-3-a"><num>(a)</num><content><p>at such place as the authorised person may reasonably require, and</p></content></level><level class="para1" eId="schedule-5-paragraph-3-3-b"><num>(b)</num><content><p>at such time as the authorised person may reasonably require.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-3-4"><num>(4)</num><content><p>An authorised person may take copies of, or make extracts from, any document produced under sub-paragraph (1) or (2) above.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-3-5"><num>(5)</num><content><p>If it appears to him to be necessary to do so, an authorised person may, at a reasonable time and for a reasonable period, remove any document produced under sub-paragraph (1) or (2) above and shall, on request, provide a receipt for any document so removed; and where a lien is claimed on a document produced under sub-paragraph (2) above the removal of the document under this sub-paragraph shall not be regarded as breaking the lien.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-3-6"><num>(6)</num><content><p>Where a document removed by an authorised person under sub-paragraph (5) above is reasonably required for any purpose he shall, as soon as practicable, provide a copy of the document, free of charge, to the person by whom it was produced or caused to be produced.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-3-7"><num>(7)</num><content><p>Where any documents removed under the powers conferred by this paragraph are lost or damaged the Commissioners shall be liable to compensate their owner for any expenses reasonably incurred by him in replacing or repairing the documents.</p></content></subparagraph></paragraph></hcontainer></part>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="schedule-5-part-I-crossheading-general"><heading>General</heading><paragraph eId="schedule-5-paragraph-1" class="schProv1"><num>1</num><subparagraph eId="schedule-5-paragraph-1-1"><num>(1)</num><content><p>Every person who is concerned (in whatever capacity) with any landfill disposal shall furnish to the Commissioners such information relating to the disposal as the Commissioners may reasonably require.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-1-2"><num>(2)</num><content><p>The information mentioned in sub-paragraph (1) above shall be furnished within such time and in such form as the Commissioners may reasonably require.</p></content></subparagraph></paragraph></hcontainer>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-5-paragraph-1" class="schProv1"><num>1</num><subparagraph eId="schedule-5-paragraph-1-1"><num>(1)</num><content><p>Every person who is concerned (in whatever capacity) with any landfill disposal shall furnish to the Commissioners such information relating to the disposal as the Commissioners may reasonably require.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-1-2"><num>(2)</num><content><p>The information mentioned in sub-paragraph (1) above shall be furnished within such time and in such form as the Commissioners may reasonably require.</p></content></subparagraph></paragraph>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="schedule-5-part-I-crossheading-records"><heading>Records</heading><paragraph eId="schedule-5-paragraph-2" class="schProv1"><num>2</num><subparagraph eId="schedule-5-paragraph-2-1"><num>(1)</num><content><p>Regulations may require registrable persons to make records.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-2-2"><num>(2)</num><content><p>Regulations under sub-paragraph (1) above may be framed by reference to such records as may be stipulated in any notice published by the Commissioners in pursuance of the regulations and not withdrawn by a further notice.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-2-3"><num>(3)</num><intro><p>Regulations may—</p></intro><level class="para1" eId="schedule-5-paragraph-2-3-a"><num>(a)</num><content><p>require registrable persons to preserve records of a prescribed description (whether or not the records are required to be made in pursuance of regulations) for such period not exceeding six years as may be specified in the regulations;</p></content></level><level class="para1" eId="schedule-5-paragraph-2-3-b"><num>(b)</num><content><p>authorise the Commissioners to direct that any such records need only be preserved for a shorter period than that specified in the regulations;</p></content></level><level class="para1" eId="schedule-5-paragraph-2-3-c"><num>(c)</num><content><p>authorise a direction to be made so as to apply generally or in such cases as the Commissioners may stipulate.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-2-4"><num>(4)</num><content><p>Any duty under regulations to preserve records may be discharged by the preservation of the information contained in them by such means as the Commissioners may approve; and where that information is so preserved a copy of any document forming part of the records shall (subject to the following provisions of this paragraph) be admissible in evidence in any proceedings, whether civil or criminal, to the same extent as the records themselves.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-2-5"><num>(5)</num><content><p>The Commissioners may, as a condition of approving under sub-paragraph (4) above any means of preserving information contained in any records, impose such reasonable requirements as appear to them necessary for securing that the information will be as readily available to them as if the records themselves had been preserved.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-2-6"><num>(6)</num><intro><p>A statement contained in a document produced by a computer shall not by virtue of sub-paragraph (4) above be admissible in evidence—</p></intro><level class="para1" eId="schedule-5-paragraph-2-6-a"><num>(a)</num><content><p>in criminal proceedings in England and Wales, except in accordance with sections 69 and 70 of the <noteRef href="#m00193" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Police and Criminal Evidence Act 1984 and Part II of the <noteRef href="#m00194" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Criminal Justice Act 1988;</p></content></level><level class="para1" eId="schedule-5-paragraph-2-6-b"><num>(b)</num><content><p>in civil proceedings in Scotland, except in accordance with sections 5 and 6 of the <noteRef href="#m00195" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Civil Evidence (Scotland) Act 1988;</p></content></level><level class="para1" eId="schedule-5-paragraph-2-6-c"><num>(c)</num><content><p>in criminal proceedings in Scotland, except in accordance with Schedule 8 to the <noteRef href="#m00196" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Criminal Procedure (Scotland) Act 1995;</p></content></level><level class="para1" eId="schedule-5-paragraph-2-6-d"><num>(d)</num><content><p>in civil proceedings in Northern Ireland, except in accordance with sections 2 and 3 of the <noteRef href="#m00197" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Civil Evidence Act (Northern Ireland) 1971;</p></content></level><level class="para1" eId="schedule-5-paragraph-2-6-e"><num>(e)</num><content><p>in criminal proceedings in Northern Ireland, except in accordance with Article 68 of the <noteRef href="#m00198" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Police and Criminal Evidence (Northern Ireland) Order 1989 and Part II of the <noteRef href="#m00199" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Criminal Justice (Evidence, Etc.) (Northern Ireland) Order 1988.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-2-7"><num>(7)</num><content><p>In the case of civil proceedings in England and Wales to which sections 5 and 6 of the <noteRef href="#m00200" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Civil Evidence Act 1968 apply, a statement contained in a document produced by a computer shall not be admissible in evidence by virtue of sub-paragraph (4) above except in accordance with those sections.</p></content></subparagraph></paragraph></hcontainer>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-5-paragraph-2" class="schProv1"><num>2</num><subparagraph eId="schedule-5-paragraph-2-1"><num>(1)</num><content><p>Regulations may require registrable persons to make records.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-2-2"><num>(2)</num><content><p>Regulations under sub-paragraph (1) above may be framed by reference to such records as may be stipulated in any notice published by the Commissioners in pursuance of the regulations and not withdrawn by a further notice.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-2-3"><num>(3)</num><intro><p>Regulations may—</p></intro><level class="para1" eId="schedule-5-paragraph-2-3-a"><num>(a)</num><content><p>require registrable persons to preserve records of a prescribed description (whether or not the records are required to be made in pursuance of regulations) for such period not exceeding six years as may be specified in the regulations;</p></content></level><level class="para1" eId="schedule-5-paragraph-2-3-b"><num>(b)</num><content><p>authorise the Commissioners to direct that any such records need only be preserved for a shorter period than that specified in the regulations;</p></content></level><level class="para1" eId="schedule-5-paragraph-2-3-c"><num>(c)</num><content><p>authorise a direction to be made so as to apply generally or in such cases as the Commissioners may stipulate.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-2-4"><num>(4)</num><content><p>Any duty under regulations to preserve records may be discharged by the preservation of the information contained in them by such means as the Commissioners may approve; and where that information is so preserved a copy of any document forming part of the records shall (subject to the following provisions of this paragraph) be admissible in evidence in any proceedings, whether civil or criminal, to the same extent as the records themselves.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-2-5"><num>(5)</num><content><p>The Commissioners may, as a condition of approving under sub-paragraph (4) above any means of preserving information contained in any records, impose such reasonable requirements as appear to them necessary for securing that the information will be as readily available to them as if the records themselves had been preserved.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-2-6"><num>(6)</num><intro><p>A statement contained in a document produced by a computer shall not by virtue of sub-paragraph (4) above be admissible in evidence—</p></intro><level class="para1" eId="schedule-5-paragraph-2-6-a"><num>(a)</num><content><p>in criminal proceedings in England and Wales, except in accordance with sections 69 and 70 of the <noteRef href="#m00193" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Police and Criminal Evidence Act 1984 and Part II of the <noteRef href="#m00194" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Criminal Justice Act 1988;</p></content></level><level class="para1" eId="schedule-5-paragraph-2-6-b"><num>(b)</num><content><p>in civil proceedings in Scotland, except in accordance with sections 5 and 6 of the <noteRef href="#m00195" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Civil Evidence (Scotland) Act 1988;</p></content></level><level class="para1" eId="schedule-5-paragraph-2-6-c"><num>(c)</num><content><p>in criminal proceedings in Scotland, except in accordance with Schedule 8 to the <noteRef href="#m00196" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Criminal Procedure (Scotland) Act 1995;</p></content></level><level class="para1" eId="schedule-5-paragraph-2-6-d"><num>(d)</num><content><p>in civil proceedings in Northern Ireland, except in accordance with sections 2 and 3 of the <noteRef href="#m00197" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Civil Evidence Act (Northern Ireland) 1971;</p></content></level><level class="para1" eId="schedule-5-paragraph-2-6-e"><num>(e)</num><content><p>in criminal proceedings in Northern Ireland, except in accordance with Article 68 of the <noteRef href="#m00198" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Police and Criminal Evidence (Northern Ireland) Order 1989 and Part II of the <noteRef href="#m00199" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Criminal Justice (Evidence, Etc.) (Northern Ireland) Order 1988.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-2-7"><num>(7)</num><content><p>In the case of civil proceedings in England and Wales to which sections 5 and 6 of the <noteRef href="#m00200" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Civil Evidence Act 1968 apply, a statement contained in a document produced by a computer shall not be admissible in evidence by virtue of sub-paragraph (4) above except in accordance with those sections.</p></content></subparagraph></paragraph>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="schedule-5-part-I-crossheading-documents"><heading>Documents</heading><paragraph eId="schedule-5-paragraph-3" class="schProv1"><num>3</num><subparagraph eId="schedule-5-paragraph-3-1"><num>(1)</num><content><p>Every person who is concerned (in whatever capacity) with any landfill disposal shall upon demand made by an authorised person produce or cause to be produced for inspection by that person any documents relating to the disposal.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-3-2"><num>(2)</num><content><p>Where, by virtue of sub-paragraph (1) above, an authorised person has power to require the production of any documents from any person, he shall have the like power to require production of the documents concerned from any other person who appears to the authorised person to be in possession of them; but where any such other person claims a lien on any document produced by him, the production shall be without prejudice to the lien.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-3-3"><num>(3)</num><intro><p>The documents mentioned in sub-paragraphs (1) and (2) above shall be produced—</p></intro><level class="para1" eId="schedule-5-paragraph-3-3-a"><num>(a)</num><content><p>at such place as the authorised person may reasonably require, and</p></content></level><level class="para1" eId="schedule-5-paragraph-3-3-b"><num>(b)</num><content><p>at such time as the authorised person may reasonably require.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-3-4"><num>(4)</num><content><p>An authorised person may take copies of, or make extracts from, any document produced under sub-paragraph (1) or (2) above.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-3-5"><num>(5)</num><content><p>If it appears to him to be necessary to do so, an authorised person may, at a reasonable time and for a reasonable period, remove any document produced under sub-paragraph (1) or (2) above and shall, on request, provide a receipt for any document so removed; and where a lien is claimed on a document produced under sub-paragraph (2) above the removal of the document under this sub-paragraph shall not be regarded as breaking the lien.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-3-6"><num>(6)</num><content><p>Where a document removed by an authorised person under sub-paragraph (5) above is reasonably required for any purpose he shall, as soon as practicable, provide a copy of the document, free of charge, to the person by whom it was produced or caused to be produced.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-3-7"><num>(7)</num><content><p>Where any documents removed under the powers conferred by this paragraph are lost or damaged the Commissioners shall be liable to compensate their owner for any expenses reasonably incurred by him in replacing or repairing the documents.</p></content></subparagraph></paragraph></hcontainer>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-5-paragraph-3" class="schProv1"><num>3</num><subparagraph eId="schedule-5-paragraph-3-1"><num>(1)</num><content><p>Every person who is concerned (in whatever capacity) with any landfill disposal shall upon demand made by an authorised person produce or cause to be produced for inspection by that person any documents relating to the disposal.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-3-2"><num>(2)</num><content><p>Where, by virtue of sub-paragraph (1) above, an authorised person has power to require the production of any documents from any person, he shall have the like power to require production of the documents concerned from any other person who appears to the authorised person to be in possession of them; but where any such other person claims a lien on any document produced by him, the production shall be without prejudice to the lien.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-3-3"><num>(3)</num><intro><p>The documents mentioned in sub-paragraphs (1) and (2) above shall be produced—</p></intro><level class="para1" eId="schedule-5-paragraph-3-3-a"><num>(a)</num><content><p>at such place as the authorised person may reasonably require, and</p></content></level><level class="para1" eId="schedule-5-paragraph-3-3-b"><num>(b)</num><content><p>at such time as the authorised person may reasonably require.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-3-4"><num>(4)</num><content><p>An authorised person may take copies of, or make extracts from, any document produced under sub-paragraph (1) or (2) above.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-3-5"><num>(5)</num><content><p>If it appears to him to be necessary to do so, an authorised person may, at a reasonable time and for a reasonable period, remove any document produced under sub-paragraph (1) or (2) above and shall, on request, provide a receipt for any document so removed; and where a lien is claimed on a document produced under sub-paragraph (2) above the removal of the document under this sub-paragraph shall not be regarded as breaking the lien.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-3-6"><num>(6)</num><content><p>Where a document removed by an authorised person under sub-paragraph (5) above is reasonably required for any purpose he shall, as soon as practicable, provide a copy of the document, free of charge, to the person by whom it was produced or caused to be produced.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-3-7"><num>(7)</num><content><p>Where any documents removed under the powers conferred by this paragraph are lost or damaged the Commissioners shall be liable to compensate their owner for any expenses reasonably incurred by him in replacing or repairing the documents.</p></content></subparagraph></paragraph>
<part xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" eId="schedule-5-part-II"><num>Part II</num><heading>Powers</heading><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-5-part-II-crossheading-entry-and-inspection"><heading>Entry and inspection</heading><paragraph eId="schedule-5-paragraph-4" class="schProv1"><num>4</num><content><p>For the purpose of exercising any powers under this Part of this Act an authorised person may at any reasonable time enter and inspect premises used in connection with the carrying on of a business.</p></content></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-5-part-II-crossheading-entry-and-search"><heading>Entry and search</heading><paragraph eId="schedule-5-paragraph-5" class="schProv1"><num>5</num><subparagraph eId="schedule-5-paragraph-5-1"><num>(1)</num><intro><p>Where—</p></intro><level class="para1" eId="schedule-5-paragraph-5-1-a"><num>(a)</num><content><p>a justice of the peace is satisfied on information on oath that there is reasonable ground for suspecting that a fraud offence which appears to be of a serious nature is being, has been or is about to be committed on any premises or that evidence of the commission of such an offence is to be found there, or</p></content></level><level class="para1" eId="schedule-5-paragraph-5-1-b"><num>(b)</num><content><p>in Scotland a justice, within the meaning of section 307 of the <noteRef href="#m00201" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Criminal Procedure (Scotland) Act 1995, is satisfied by evidence on oath as mentioned in paragraph (a) above,</p></content></level><wrapUp><p>he may issue a warrant in writing authorising any authorised person to enter those premises, if necessary by force, at any time within one month from the time of the issue of the warrant and search them.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-5-2"><num>(2)</num><intro><p>A person who enters the premises under the authority of the warrant may—</p></intro><level class="para1" eId="schedule-5-paragraph-5-2-a"><num>(a)</num><content><p>take with him such other persons as appear to him to be necessary;</p></content></level><level class="para1" eId="schedule-5-paragraph-5-2-b"><num>(b)</num><content><p>seize and remove any documents or other things whatsoever found on the premises which he has reasonable cause to believe may be required as evidence for the purposes of proceedings in respect of a fraud offence which appears to him to be of a serious nature;</p></content></level><level class="para1" eId="schedule-5-paragraph-5-2-c"><num>(c)</num><content><p>search or cause to be searched any person found on the premises whom he has reasonable cause to believe to be in possession of any such documents or other things;</p></content></level><wrapUp><p>but no woman or girl shall be searched except by a woman.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-5-3"><num>(3)</num><intro><p>The powers conferred by a warrant under this paragraph shall not be exercisable—</p></intro><level class="para1" eId="schedule-5-paragraph-5-3-a"><num>(a)</num><content><p>by more than such number of authorised persons as may be specified in the warrant,</p></content></level><level class="para1" eId="schedule-5-paragraph-5-3-b"><num>(b)</num><content><p>outside such times of day as may be so specified, or</p></content></level><level class="para1" eId="schedule-5-paragraph-5-3-c"><num>(c)</num><content><p>if the warrant so provides, otherwise than in the presence of a constable in uniform.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-5-4"><num>(4)</num><intro><p>An authorised person seeking to exercise the powers conferred by a warrant under this paragraph or, if there is more than one such authorised person, that one of them who is in charge of the search shall provide a copy of the warrant endorsed with his name as follows—</p></intro><level class="para1" eId="schedule-5-paragraph-5-4-a"><num>(a)</num><content><p>if the occupier of the premises concerned is present at the time the search is to begin, the copy shall be supplied to the occupier;</p></content></level><level class="para1" eId="schedule-5-paragraph-5-4-b"><num>(b)</num><content><p>if at that time the occupier is not present but a person who appears to the authorised person to be in charge of the premises is present, the copy shall be supplied to that person;</p></content></level><level class="para1" eId="schedule-5-paragraph-5-4-c"><num>(c)</num><content><p>if neither paragraph (a) nor paragraph (b) above applies, the copy shall be left in a prominent place on the premises.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-5-5"><num>(5)</num><content><p>In this paragraph “a fraud offence” means an offence under any provision of paragraph 15(1) to (5) below.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-5-part-II-crossheading-arrest"><heading>Arrest</heading><paragraph eId="schedule-5-paragraph-6" class="schProv1"><num>6</num><subparagraph eId="schedule-5-paragraph-6-1"><num>(1)</num><content><p>Where an authorised person has reasonable grounds for suspecting that a fraud offence has been committed he may arrest anyone whom he has reasonable grounds for suspecting to be guilty of the offence.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-6-2"><num>(2)</num><content><p>In this paragraph “a fraud offence” means an offence under any provision of paragraph 15(1) to (5) below.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-5-part-II-crossheading-order-for-access-to-recorded-information-etc"><heading>Order for access to recorded information etc.</heading><paragraph eId="schedule-5-paragraph-7" class="schProv1"><num>7</num><subparagraph eId="schedule-5-paragraph-7-1"><num>(1)</num><intro><p>Where, on an application by an authorised person, a justice of the peace or, in Scotland, a justice (within the meaning of section 307 of the <noteRef href="#m00202" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Criminal Procedure (Scotland) Act 1995) is satisfied that there are reasonable grounds for believing—</p></intro><level class="para1" eId="schedule-5-paragraph-7-1-a"><num>(a)</num><content><p>that an offence in connection with tax is being, has been or is about to be committed, and</p></content></level><level class="para1" eId="schedule-5-paragraph-7-1-b"><num>(b)</num><content><p>that any recorded information (including any document of any nature whatsoever) which may be required as evidence for the purpose of any proceedings in respect of such an offence is in the possession of any person,</p></content></level><wrapUp><p>he may make an order under this paragraph.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-7-2"><num>(2)</num><intro><p>An order under this paragraph is an order that the person who appears to the justice to be in possession of the recorded information to which the application relates shall—</p></intro><level class="para1" eId="schedule-5-paragraph-7-2-a"><num>(a)</num><content><p>give an authorised person access to it, and</p></content></level><level class="para1" eId="schedule-5-paragraph-7-2-b"><num>(b)</num><content><p>permit an authorised person to remove and take away any of it which he reasonably considers necessary,</p></content></level><wrapUp><p>not later than the end of the period of 7 days beginning with the date of the order or the end of such longer period as the order may specify.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-7-3"><num>(3)</num><content><p>The reference in sub-paragraph (2)(a) above to giving an authorised person access to the recorded information to which the application relates includes a reference to permitting the authorised person to take copies of it or to make extracts from it.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-7-4"><num>(4)</num><content><p>Where the recorded information consists of information contained in a computer, an order under this paragraph shall have effect as an order to produce the information in a form in which it is visible and legible and, if the authorised person wishes to remove it, in a form in which it can be removed.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-7-5"><num>(5)</num><content><p>This paragraph is without prejudice to paragraphs 3 to 5 above.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-5-part-II-crossheading-removal-of-documents-etc"><heading>Removal of documents etc.</heading><paragraph eId="schedule-5-paragraph-8" class="schProv1"><num>8</num><subparagraph eId="schedule-5-paragraph-8-1"><num>(1)</num><intro><p>An authorised person who removes anything in the exercise of a power conferred by or under paragraph 5 or 7 above shall, if so requested by a person showing himself—</p></intro><level class="para1" eId="schedule-5-paragraph-8-1-a"><num>(a)</num><content><p>to be the occupier of premises from which it was removed, or</p></content></level><level class="para1" eId="schedule-5-paragraph-8-1-b"><num>(b)</num><content><p>to have had custody or control of it immediately before the removal,</p></content></level><wrapUp><p>provide that person with a record of what he removed.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-8-2"><num>(2)</num><content><p>The authorised person shall provide the record within a reasonable time from the making of the request for it.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-8-3"><num>(3)</num><intro><p>Subject to sub-paragraph (7) below, if a request for permission to be allowed access to anything which—</p></intro><level class="para1" eId="schedule-5-paragraph-8-3-a"><num>(a)</num><content><p>has been removed by an authorised person, and</p></content></level><level class="para1" eId="schedule-5-paragraph-8-3-b"><num>(b)</num><content><p>is retained by the Commissioners for the purposes of investigating an offence,</p></content></level><wrapUp><p>is made to the officer in overall charge of the investigation by a person who had custody or control of the thing immediately before it was so removed or by someone acting on behalf of such a person, the officer shall allow the person who made the request access to it under the supervision of an authorised person.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-8-4"><num>(4)</num><intro><p>Subject to sub-paragraph (7) below, if a request for a photograph or copy of any such thing is made to the officer in overall charge of the investigation by a person who had custody or control of the thing immediately before it was so removed, or by someone acting on behalf of such a person, the officer shall—</p></intro><level class="para1" eId="schedule-5-paragraph-8-4-a"><num>(a)</num><content><p>allow the person who made the request access to it under the supervision of an authorised person for the purpose of photographing it or copying it, or</p></content></level><level class="para1" eId="schedule-5-paragraph-8-4-b"><num>(b)</num><content><p>photograph or copy it, or cause it to be photographed or copied.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-8-5"><num>(5)</num><content><p>Subject to sub-paragraph (7) below, where anything is photographed or copied under sub-paragraph (4)(b) above the officer shall supply the photograph or copy, or cause it to be supplied, to the person who made the request.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-8-6"><num>(6)</num><content><p>The photograph or copy shall be supplied within a reasonable time from the making of the request.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-8-7"><num>(7)</num><intro><p>There is no duty under this paragraph to allow access to, or to supply a photograph or copy of, anything if the officer in overall charge of the investigation for the purposes of which it was removed has reasonable grounds for believing that to do so would prejudice—</p></intro><level class="para1" eId="schedule-5-paragraph-8-7-a"><num>(a)</num><content><p>that investigation,</p></content></level><level class="para1" eId="schedule-5-paragraph-8-7-b"><num>(b)</num><content><p>the investigation of an offence other than the offence for the purposes of the investigation of which the thing was removed, or</p></content></level><level class="para1" eId="schedule-5-paragraph-8-7-c"><num>(c)</num><content><p>any criminal proceedings which may be brought as a result of the investigation of which he is in charge or any such investigation as is mentioned in paragraph (b) above.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-8-8"><num>(8)</num><content><p>Any reference in this paragraph to the officer in overall charge of the investigation is a reference to the person whose name and address are endorsed on the warrant concerned as being the officer so in charge.</p></content></subparagraph></paragraph><paragraph eId="schedule-5-paragraph-9" class="schProv1"><num>9</num><subparagraph eId="schedule-5-paragraph-9-1"><num>(1)</num><content><p>Where, on an application made as mentioned in sub-paragraph (2) below, the appropriate judicial authority is satisfied that a person has failed to comply with a requirement imposed by paragraph 8 above, the authority may order that person to comply with the requirement within such time and in such manner as may be specified in the order.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-9-2"><num>(2)</num><intro><p>An application under sub-paragraph (1) above shall be made—</p></intro><level class="para1" eId="schedule-5-paragraph-9-2-a"><num>(a)</num><content><p>in the case of a failure to comply with any of the requirements imposed by sub-paragraphs (1) and (2) of paragraph 8 above, by the occupier of the premises from which the thing in question was removed or by the person who had custody or control of it immediately before it was so removed, and</p></content></level><level class="para1" eId="schedule-5-paragraph-9-2-b"><num>(b)</num><content><p>in any other case, by the person who had such custody or control.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-9-3"><num>(3)</num><intro><p>In this paragraph “the appropriate judicial authority” means—</p></intro><level class="para1" eId="schedule-5-paragraph-9-3-a"><num>(a)</num><content><p>in England and Wales, a magistrates' court;</p></content></level><level class="para1" eId="schedule-5-paragraph-9-3-b"><num>(b)</num><content><p>in Scotland, the sheriff;</p></content></level><level class="para1" eId="schedule-5-paragraph-9-3-c"><num>(c)</num><content><p>in Northern Ireland, a court of summary jurisdiction, as defined in Article 2(2)(a) of the <noteRef href="#m00203" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Magistrates' Court (Northern Ireland) Order 1981.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-9-4"><num>(4)</num><content><p>In England and Wales and Northern Ireland, an application for an order under this paragraph shall be made by way of complaint; and sections 21 and 42(2) of the <noteRef href="#m00204" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Interpretation Act (Northern Ireland) 1954 shall apply as if any reference in those provisions to any enactment included a reference to this paragraph.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-5-part-II-crossheading-power-to-take-samples"><heading>Power to take samples</heading><paragraph eId="schedule-5-paragraph-10" class="schProv1"><num>10</num><subparagraph eId="schedule-5-paragraph-10-1"><num>(1)</num><content><p>An authorised person, if it appears to him necessary for the protection of the revenue against mistake or fraud, may at any time take, from material which he has reasonable cause to believe is intended to be, is being, or has been disposed of as waste by way of landfill, such samples as he may require with a view to determining how the material ought to be or to have been treated for the purposes of tax.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-10-2"><num>(2)</num><content><p>Any sample taken under this paragraph shall be disposed of in such manner as the Commissioners may direct.</p></content></subparagraph></paragraph></hcontainer></part>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="schedule-5-part-II-crossheading-entry-and-inspection"><heading>Entry and inspection</heading><paragraph eId="schedule-5-paragraph-4" class="schProv1"><num>4</num><content><p>For the purpose of exercising any powers under this Part of this Act an authorised person may at any reasonable time enter and inspect premises used in connection with the carrying on of a business.</p></content></paragraph></hcontainer>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-5-paragraph-4" class="schProv1"><num>4</num><content><p>For the purpose of exercising any powers under this Part of this Act an authorised person may at any reasonable time enter and inspect premises used in connection with the carrying on of a business.</p></content></paragraph>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="schedule-5-part-II-crossheading-entry-and-search"><heading>Entry and search</heading><paragraph eId="schedule-5-paragraph-5" class="schProv1"><num>5</num><subparagraph eId="schedule-5-paragraph-5-1"><num>(1)</num><intro><p>Where—</p></intro><level class="para1" eId="schedule-5-paragraph-5-1-a"><num>(a)</num><content><p>a justice of the peace is satisfied on information on oath that there is reasonable ground for suspecting that a fraud offence which appears to be of a serious nature is being, has been or is about to be committed on any premises or that evidence of the commission of such an offence is to be found there, or</p></content></level><level class="para1" eId="schedule-5-paragraph-5-1-b"><num>(b)</num><content><p>in Scotland a justice, within the meaning of section 307 of the <noteRef href="#m00201" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Criminal Procedure (Scotland) Act 1995, is satisfied by evidence on oath as mentioned in paragraph (a) above,</p></content></level><wrapUp><p>he may issue a warrant in writing authorising any authorised person to enter those premises, if necessary by force, at any time within one month from the time of the issue of the warrant and search them.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-5-2"><num>(2)</num><intro><p>A person who enters the premises under the authority of the warrant may—</p></intro><level class="para1" eId="schedule-5-paragraph-5-2-a"><num>(a)</num><content><p>take with him such other persons as appear to him to be necessary;</p></content></level><level class="para1" eId="schedule-5-paragraph-5-2-b"><num>(b)</num><content><p>seize and remove any documents or other things whatsoever found on the premises which he has reasonable cause to believe may be required as evidence for the purposes of proceedings in respect of a fraud offence which appears to him to be of a serious nature;</p></content></level><level class="para1" eId="schedule-5-paragraph-5-2-c"><num>(c)</num><content><p>search or cause to be searched any person found on the premises whom he has reasonable cause to believe to be in possession of any such documents or other things;</p></content></level><wrapUp><p>but no woman or girl shall be searched except by a woman.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-5-3"><num>(3)</num><intro><p>The powers conferred by a warrant under this paragraph shall not be exercisable—</p></intro><level class="para1" eId="schedule-5-paragraph-5-3-a"><num>(a)</num><content><p>by more than such number of authorised persons as may be specified in the warrant,</p></content></level><level class="para1" eId="schedule-5-paragraph-5-3-b"><num>(b)</num><content><p>outside such times of day as may be so specified, or</p></content></level><level class="para1" eId="schedule-5-paragraph-5-3-c"><num>(c)</num><content><p>if the warrant so provides, otherwise than in the presence of a constable in uniform.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-5-4"><num>(4)</num><intro><p>An authorised person seeking to exercise the powers conferred by a warrant under this paragraph or, if there is more than one such authorised person, that one of them who is in charge of the search shall provide a copy of the warrant endorsed with his name as follows—</p></intro><level class="para1" eId="schedule-5-paragraph-5-4-a"><num>(a)</num><content><p>if the occupier of the premises concerned is present at the time the search is to begin, the copy shall be supplied to the occupier;</p></content></level><level class="para1" eId="schedule-5-paragraph-5-4-b"><num>(b)</num><content><p>if at that time the occupier is not present but a person who appears to the authorised person to be in charge of the premises is present, the copy shall be supplied to that person;</p></content></level><level class="para1" eId="schedule-5-paragraph-5-4-c"><num>(c)</num><content><p>if neither paragraph (a) nor paragraph (b) above applies, the copy shall be left in a prominent place on the premises.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-5-5"><num>(5)</num><content><p>In this paragraph “a fraud offence” means an offence under any provision of paragraph 15(1) to (5) below.</p></content></subparagraph></paragraph></hcontainer>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-5-paragraph-5" class="schProv1"><num>5</num><subparagraph eId="schedule-5-paragraph-5-1"><num>(1)</num><intro><p>Where—</p></intro><level class="para1" eId="schedule-5-paragraph-5-1-a"><num>(a)</num><content><p>a justice of the peace is satisfied on information on oath that there is reasonable ground for suspecting that a fraud offence which appears to be of a serious nature is being, has been or is about to be committed on any premises or that evidence of the commission of such an offence is to be found there, or</p></content></level><level class="para1" eId="schedule-5-paragraph-5-1-b"><num>(b)</num><content><p>in Scotland a justice, within the meaning of section 307 of the <noteRef href="#m00201" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Criminal Procedure (Scotland) Act 1995, is satisfied by evidence on oath as mentioned in paragraph (a) above,</p></content></level><wrapUp><p>he may issue a warrant in writing authorising any authorised person to enter those premises, if necessary by force, at any time within one month from the time of the issue of the warrant and search them.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-5-2"><num>(2)</num><intro><p>A person who enters the premises under the authority of the warrant may—</p></intro><level class="para1" eId="schedule-5-paragraph-5-2-a"><num>(a)</num><content><p>take with him such other persons as appear to him to be necessary;</p></content></level><level class="para1" eId="schedule-5-paragraph-5-2-b"><num>(b)</num><content><p>seize and remove any documents or other things whatsoever found on the premises which he has reasonable cause to believe may be required as evidence for the purposes of proceedings in respect of a fraud offence which appears to him to be of a serious nature;</p></content></level><level class="para1" eId="schedule-5-paragraph-5-2-c"><num>(c)</num><content><p>search or cause to be searched any person found on the premises whom he has reasonable cause to believe to be in possession of any such documents or other things;</p></content></level><wrapUp><p>but no woman or girl shall be searched except by a woman.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-5-3"><num>(3)</num><intro><p>The powers conferred by a warrant under this paragraph shall not be exercisable—</p></intro><level class="para1" eId="schedule-5-paragraph-5-3-a"><num>(a)</num><content><p>by more than such number of authorised persons as may be specified in the warrant,</p></content></level><level class="para1" eId="schedule-5-paragraph-5-3-b"><num>(b)</num><content><p>outside such times of day as may be so specified, or</p></content></level><level class="para1" eId="schedule-5-paragraph-5-3-c"><num>(c)</num><content><p>if the warrant so provides, otherwise than in the presence of a constable in uniform.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-5-4"><num>(4)</num><intro><p>An authorised person seeking to exercise the powers conferred by a warrant under this paragraph or, if there is more than one such authorised person, that one of them who is in charge of the search shall provide a copy of the warrant endorsed with his name as follows—</p></intro><level class="para1" eId="schedule-5-paragraph-5-4-a"><num>(a)</num><content><p>if the occupier of the premises concerned is present at the time the search is to begin, the copy shall be supplied to the occupier;</p></content></level><level class="para1" eId="schedule-5-paragraph-5-4-b"><num>(b)</num><content><p>if at that time the occupier is not present but a person who appears to the authorised person to be in charge of the premises is present, the copy shall be supplied to that person;</p></content></level><level class="para1" eId="schedule-5-paragraph-5-4-c"><num>(c)</num><content><p>if neither paragraph (a) nor paragraph (b) above applies, the copy shall be left in a prominent place on the premises.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-5-5"><num>(5)</num><content><p>In this paragraph “a fraud offence” means an offence under any provision of paragraph 15(1) to (5) below.</p></content></subparagraph></paragraph>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="schedule-5-part-II-crossheading-arrest"><heading>Arrest</heading><paragraph eId="schedule-5-paragraph-6" class="schProv1"><num>6</num><subparagraph eId="schedule-5-paragraph-6-1"><num>(1)</num><content><p>Where an authorised person has reasonable grounds for suspecting that a fraud offence has been committed he may arrest anyone whom he has reasonable grounds for suspecting to be guilty of the offence.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-6-2"><num>(2)</num><content><p>In this paragraph “a fraud offence” means an offence under any provision of paragraph 15(1) to (5) below.</p></content></subparagraph></paragraph></hcontainer>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-5-paragraph-6" class="schProv1"><num>6</num><subparagraph eId="schedule-5-paragraph-6-1"><num>(1)</num><content><p>Where an authorised person has reasonable grounds for suspecting that a fraud offence has been committed he may arrest anyone whom he has reasonable grounds for suspecting to be guilty of the offence.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-6-2"><num>(2)</num><content><p>In this paragraph “a fraud offence” means an offence under any provision of paragraph 15(1) to (5) below.</p></content></subparagraph></paragraph>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="schedule-5-part-II-crossheading-order-for-access-to-recorded-information-etc"><heading>Order for access to recorded information etc.</heading><paragraph eId="schedule-5-paragraph-7" class="schProv1"><num>7</num><subparagraph eId="schedule-5-paragraph-7-1"><num>(1)</num><intro><p>Where, on an application by an authorised person, a justice of the peace or, in Scotland, a justice (within the meaning of section 307 of the <noteRef href="#m00202" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Criminal Procedure (Scotland) Act 1995) is satisfied that there are reasonable grounds for believing—</p></intro><level class="para1" eId="schedule-5-paragraph-7-1-a"><num>(a)</num><content><p>that an offence in connection with tax is being, has been or is about to be committed, and</p></content></level><level class="para1" eId="schedule-5-paragraph-7-1-b"><num>(b)</num><content><p>that any recorded information (including any document of any nature whatsoever) which may be required as evidence for the purpose of any proceedings in respect of such an offence is in the possession of any person,</p></content></level><wrapUp><p>he may make an order under this paragraph.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-7-2"><num>(2)</num><intro><p>An order under this paragraph is an order that the person who appears to the justice to be in possession of the recorded information to which the application relates shall—</p></intro><level class="para1" eId="schedule-5-paragraph-7-2-a"><num>(a)</num><content><p>give an authorised person access to it, and</p></content></level><level class="para1" eId="schedule-5-paragraph-7-2-b"><num>(b)</num><content><p>permit an authorised person to remove and take away any of it which he reasonably considers necessary,</p></content></level><wrapUp><p>not later than the end of the period of 7 days beginning with the date of the order or the end of such longer period as the order may specify.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-7-3"><num>(3)</num><content><p>The reference in sub-paragraph (2)(a) above to giving an authorised person access to the recorded information to which the application relates includes a reference to permitting the authorised person to take copies of it or to make extracts from it.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-7-4"><num>(4)</num><content><p>Where the recorded information consists of information contained in a computer, an order under this paragraph shall have effect as an order to produce the information in a form in which it is visible and legible and, if the authorised person wishes to remove it, in a form in which it can be removed.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-7-5"><num>(5)</num><content><p>This paragraph is without prejudice to paragraphs 3 to 5 above.</p></content></subparagraph></paragraph></hcontainer>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-5-paragraph-7" class="schProv1"><num>7</num><subparagraph eId="schedule-5-paragraph-7-1"><num>(1)</num><intro><p>Where, on an application by an authorised person, a justice of the peace or, in Scotland, a justice (within the meaning of section 307 of the <noteRef href="#m00202" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Criminal Procedure (Scotland) Act 1995) is satisfied that there are reasonable grounds for believing—</p></intro><level class="para1" eId="schedule-5-paragraph-7-1-a"><num>(a)</num><content><p>that an offence in connection with tax is being, has been or is about to be committed, and</p></content></level><level class="para1" eId="schedule-5-paragraph-7-1-b"><num>(b)</num><content><p>that any recorded information (including any document of any nature whatsoever) which may be required as evidence for the purpose of any proceedings in respect of such an offence is in the possession of any person,</p></content></level><wrapUp><p>he may make an order under this paragraph.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-7-2"><num>(2)</num><intro><p>An order under this paragraph is an order that the person who appears to the justice to be in possession of the recorded information to which the application relates shall—</p></intro><level class="para1" eId="schedule-5-paragraph-7-2-a"><num>(a)</num><content><p>give an authorised person access to it, and</p></content></level><level class="para1" eId="schedule-5-paragraph-7-2-b"><num>(b)</num><content><p>permit an authorised person to remove and take away any of it which he reasonably considers necessary,</p></content></level><wrapUp><p>not later than the end of the period of 7 days beginning with the date of the order or the end of such longer period as the order may specify.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-7-3"><num>(3)</num><content><p>The reference in sub-paragraph (2)(a) above to giving an authorised person access to the recorded information to which the application relates includes a reference to permitting the authorised person to take copies of it or to make extracts from it.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-7-4"><num>(4)</num><content><p>Where the recorded information consists of information contained in a computer, an order under this paragraph shall have effect as an order to produce the information in a form in which it is visible and legible and, if the authorised person wishes to remove it, in a form in which it can be removed.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-7-5"><num>(5)</num><content><p>This paragraph is without prejudice to paragraphs 3 to 5 above.</p></content></subparagraph></paragraph>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="schedule-5-part-II-crossheading-removal-of-documents-etc"><heading>Removal of documents etc.</heading><paragraph eId="schedule-5-paragraph-8" class="schProv1"><num>8</num><subparagraph eId="schedule-5-paragraph-8-1"><num>(1)</num><intro><p>An authorised person who removes anything in the exercise of a power conferred by or under paragraph 5 or 7 above shall, if so requested by a person showing himself—</p></intro><level class="para1" eId="schedule-5-paragraph-8-1-a"><num>(a)</num><content><p>to be the occupier of premises from which it was removed, or</p></content></level><level class="para1" eId="schedule-5-paragraph-8-1-b"><num>(b)</num><content><p>to have had custody or control of it immediately before the removal,</p></content></level><wrapUp><p>provide that person with a record of what he removed.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-8-2"><num>(2)</num><content><p>The authorised person shall provide the record within a reasonable time from the making of the request for it.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-8-3"><num>(3)</num><intro><p>Subject to sub-paragraph (7) below, if a request for permission to be allowed access to anything which—</p></intro><level class="para1" eId="schedule-5-paragraph-8-3-a"><num>(a)</num><content><p>has been removed by an authorised person, and</p></content></level><level class="para1" eId="schedule-5-paragraph-8-3-b"><num>(b)</num><content><p>is retained by the Commissioners for the purposes of investigating an offence,</p></content></level><wrapUp><p>is made to the officer in overall charge of the investigation by a person who had custody or control of the thing immediately before it was so removed or by someone acting on behalf of such a person, the officer shall allow the person who made the request access to it under the supervision of an authorised person.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-8-4"><num>(4)</num><intro><p>Subject to sub-paragraph (7) below, if a request for a photograph or copy of any such thing is made to the officer in overall charge of the investigation by a person who had custody or control of the thing immediately before it was so removed, or by someone acting on behalf of such a person, the officer shall—</p></intro><level class="para1" eId="schedule-5-paragraph-8-4-a"><num>(a)</num><content><p>allow the person who made the request access to it under the supervision of an authorised person for the purpose of photographing it or copying it, or</p></content></level><level class="para1" eId="schedule-5-paragraph-8-4-b"><num>(b)</num><content><p>photograph or copy it, or cause it to be photographed or copied.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-8-5"><num>(5)</num><content><p>Subject to sub-paragraph (7) below, where anything is photographed or copied under sub-paragraph (4)(b) above the officer shall supply the photograph or copy, or cause it to be supplied, to the person who made the request.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-8-6"><num>(6)</num><content><p>The photograph or copy shall be supplied within a reasonable time from the making of the request.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-8-7"><num>(7)</num><intro><p>There is no duty under this paragraph to allow access to, or to supply a photograph or copy of, anything if the officer in overall charge of the investigation for the purposes of which it was removed has reasonable grounds for believing that to do so would prejudice—</p></intro><level class="para1" eId="schedule-5-paragraph-8-7-a"><num>(a)</num><content><p>that investigation,</p></content></level><level class="para1" eId="schedule-5-paragraph-8-7-b"><num>(b)</num><content><p>the investigation of an offence other than the offence for the purposes of the investigation of which the thing was removed, or</p></content></level><level class="para1" eId="schedule-5-paragraph-8-7-c"><num>(c)</num><content><p>any criminal proceedings which may be brought as a result of the investigation of which he is in charge or any such investigation as is mentioned in paragraph (b) above.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-8-8"><num>(8)</num><content><p>Any reference in this paragraph to the officer in overall charge of the investigation is a reference to the person whose name and address are endorsed on the warrant concerned as being the officer so in charge.</p></content></subparagraph></paragraph><paragraph eId="schedule-5-paragraph-9" class="schProv1"><num>9</num><subparagraph eId="schedule-5-paragraph-9-1"><num>(1)</num><content><p>Where, on an application made as mentioned in sub-paragraph (2) below, the appropriate judicial authority is satisfied that a person has failed to comply with a requirement imposed by paragraph 8 above, the authority may order that person to comply with the requirement within such time and in such manner as may be specified in the order.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-9-2"><num>(2)</num><intro><p>An application under sub-paragraph (1) above shall be made—</p></intro><level class="para1" eId="schedule-5-paragraph-9-2-a"><num>(a)</num><content><p>in the case of a failure to comply with any of the requirements imposed by sub-paragraphs (1) and (2) of paragraph 8 above, by the occupier of the premises from which the thing in question was removed or by the person who had custody or control of it immediately before it was so removed, and</p></content></level><level class="para1" eId="schedule-5-paragraph-9-2-b"><num>(b)</num><content><p>in any other case, by the person who had such custody or control.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-9-3"><num>(3)</num><intro><p>In this paragraph “the appropriate judicial authority” means—</p></intro><level class="para1" eId="schedule-5-paragraph-9-3-a"><num>(a)</num><content><p>in England and Wales, a magistrates' court;</p></content></level><level class="para1" eId="schedule-5-paragraph-9-3-b"><num>(b)</num><content><p>in Scotland, the sheriff;</p></content></level><level class="para1" eId="schedule-5-paragraph-9-3-c"><num>(c)</num><content><p>in Northern Ireland, a court of summary jurisdiction, as defined in Article 2(2)(a) of the <noteRef href="#m00203" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Magistrates' Court (Northern Ireland) Order 1981.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-9-4"><num>(4)</num><content><p>In England and Wales and Northern Ireland, an application for an order under this paragraph shall be made by way of complaint; and sections 21 and 42(2) of the <noteRef href="#m00204" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Interpretation Act (Northern Ireland) 1954 shall apply as if any reference in those provisions to any enactment included a reference to this paragraph.</p></content></subparagraph></paragraph></hcontainer>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-5-paragraph-8" class="schProv1"><num>8</num><subparagraph eId="schedule-5-paragraph-8-1"><num>(1)</num><intro><p>An authorised person who removes anything in the exercise of a power conferred by or under paragraph 5 or 7 above shall, if so requested by a person showing himself—</p></intro><level class="para1" eId="schedule-5-paragraph-8-1-a"><num>(a)</num><content><p>to be the occupier of premises from which it was removed, or</p></content></level><level class="para1" eId="schedule-5-paragraph-8-1-b"><num>(b)</num><content><p>to have had custody or control of it immediately before the removal,</p></content></level><wrapUp><p>provide that person with a record of what he removed.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-8-2"><num>(2)</num><content><p>The authorised person shall provide the record within a reasonable time from the making of the request for it.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-8-3"><num>(3)</num><intro><p>Subject to sub-paragraph (7) below, if a request for permission to be allowed access to anything which—</p></intro><level class="para1" eId="schedule-5-paragraph-8-3-a"><num>(a)</num><content><p>has been removed by an authorised person, and</p></content></level><level class="para1" eId="schedule-5-paragraph-8-3-b"><num>(b)</num><content><p>is retained by the Commissioners for the purposes of investigating an offence,</p></content></level><wrapUp><p>is made to the officer in overall charge of the investigation by a person who had custody or control of the thing immediately before it was so removed or by someone acting on behalf of such a person, the officer shall allow the person who made the request access to it under the supervision of an authorised person.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-8-4"><num>(4)</num><intro><p>Subject to sub-paragraph (7) below, if a request for a photograph or copy of any such thing is made to the officer in overall charge of the investigation by a person who had custody or control of the thing immediately before it was so removed, or by someone acting on behalf of such a person, the officer shall—</p></intro><level class="para1" eId="schedule-5-paragraph-8-4-a"><num>(a)</num><content><p>allow the person who made the request access to it under the supervision of an authorised person for the purpose of photographing it or copying it, or</p></content></level><level class="para1" eId="schedule-5-paragraph-8-4-b"><num>(b)</num><content><p>photograph or copy it, or cause it to be photographed or copied.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-8-5"><num>(5)</num><content><p>Subject to sub-paragraph (7) below, where anything is photographed or copied under sub-paragraph (4)(b) above the officer shall supply the photograph or copy, or cause it to be supplied, to the person who made the request.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-8-6"><num>(6)</num><content><p>The photograph or copy shall be supplied within a reasonable time from the making of the request.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-8-7"><num>(7)</num><intro><p>There is no duty under this paragraph to allow access to, or to supply a photograph or copy of, anything if the officer in overall charge of the investigation for the purposes of which it was removed has reasonable grounds for believing that to do so would prejudice—</p></intro><level class="para1" eId="schedule-5-paragraph-8-7-a"><num>(a)</num><content><p>that investigation,</p></content></level><level class="para1" eId="schedule-5-paragraph-8-7-b"><num>(b)</num><content><p>the investigation of an offence other than the offence for the purposes of the investigation of which the thing was removed, or</p></content></level><level class="para1" eId="schedule-5-paragraph-8-7-c"><num>(c)</num><content><p>any criminal proceedings which may be brought as a result of the investigation of which he is in charge or any such investigation as is mentioned in paragraph (b) above.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-8-8"><num>(8)</num><content><p>Any reference in this paragraph to the officer in overall charge of the investigation is a reference to the person whose name and address are endorsed on the warrant concerned as being the officer so in charge.</p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-5-paragraph-9" class="schProv1"><num>9</num><subparagraph eId="schedule-5-paragraph-9-1"><num>(1)</num><content><p>Where, on an application made as mentioned in sub-paragraph (2) below, the appropriate judicial authority is satisfied that a person has failed to comply with a requirement imposed by paragraph 8 above, the authority may order that person to comply with the requirement within such time and in such manner as may be specified in the order.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-9-2"><num>(2)</num><intro><p>An application under sub-paragraph (1) above shall be made—</p></intro><level class="para1" eId="schedule-5-paragraph-9-2-a"><num>(a)</num><content><p>in the case of a failure to comply with any of the requirements imposed by sub-paragraphs (1) and (2) of paragraph 8 above, by the occupier of the premises from which the thing in question was removed or by the person who had custody or control of it immediately before it was so removed, and</p></content></level><level class="para1" eId="schedule-5-paragraph-9-2-b"><num>(b)</num><content><p>in any other case, by the person who had such custody or control.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-9-3"><num>(3)</num><intro><p>In this paragraph “the appropriate judicial authority” means—</p></intro><level class="para1" eId="schedule-5-paragraph-9-3-a"><num>(a)</num><content><p>in England and Wales, a magistrates' court;</p></content></level><level class="para1" eId="schedule-5-paragraph-9-3-b"><num>(b)</num><content><p>in Scotland, the sheriff;</p></content></level><level class="para1" eId="schedule-5-paragraph-9-3-c"><num>(c)</num><content><p>in Northern Ireland, a court of summary jurisdiction, as defined in Article 2(2)(a) of the <noteRef href="#m00203" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Magistrates' Court (Northern Ireland) Order 1981.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-9-4"><num>(4)</num><content><p>In England and Wales and Northern Ireland, an application for an order under this paragraph shall be made by way of complaint; and sections 21 and 42(2) of the <noteRef href="#m00204" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Interpretation Act (Northern Ireland) 1954 shall apply as if any reference in those provisions to any enactment included a reference to this paragraph.</p></content></subparagraph></paragraph>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="schedule-5-part-II-crossheading-power-to-take-samples"><heading>Power to take samples</heading><paragraph eId="schedule-5-paragraph-10" class="schProv1"><num>10</num><subparagraph eId="schedule-5-paragraph-10-1"><num>(1)</num><content><p>An authorised person, if it appears to him necessary for the protection of the revenue against mistake or fraud, may at any time take, from material which he has reasonable cause to believe is intended to be, is being, or has been disposed of as waste by way of landfill, such samples as he may require with a view to determining how the material ought to be or to have been treated for the purposes of tax.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-10-2"><num>(2)</num><content><p>Any sample taken under this paragraph shall be disposed of in such manner as the Commissioners may direct.</p></content></subparagraph></paragraph></hcontainer>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-5-paragraph-10" class="schProv1"><num>10</num><subparagraph eId="schedule-5-paragraph-10-1"><num>(1)</num><content><p>An authorised person, if it appears to him necessary for the protection of the revenue against mistake or fraud, may at any time take, from material which he has reasonable cause to believe is intended to be, is being, or has been disposed of as waste by way of landfill, such samples as he may require with a view to determining how the material ought to be or to have been treated for the purposes of tax.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-10-2"><num>(2)</num><content><p>Any sample taken under this paragraph shall be disposed of in such manner as the Commissioners may direct.</p></content></subparagraph></paragraph>
<part xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" eId="schedule-5-part-III"><num>Part III</num><heading>Recovery</heading><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-5-part-III-crossheading-general"><heading>General</heading><paragraph eId="schedule-5-paragraph-11" class="schProv1"><num>11</num><content><p>Tax due from any person shall be recoverable as a debt due to the Crown.</p></content></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-5-part-III-crossheading-preferential-and-preferred-debts"><heading>Preferential and preferred debts</heading><paragraph eId="schedule-5-paragraph-12" class="schProv1"><num>12</num><subparagraph eId="schedule-5-paragraph-12-1"><num>(1)</num><content><p><mod>In the <noteRef href="#m00205" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Insolvency Act 1986, in section 386(1) (preferential debts) the words “landfill tax,” shall be inserted after “insurance premium tax,” and in Schedule 6 (categories of preferential debts) the following paragraph shall be inserted after paragraph 3A—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>3B</num><intro><p>Any landfill tax which is referable to the period of 6 months next before the relevant date (which period is referred to below as “the 6-month period”).</p><p>For the purposes of this paragraph—</p></intro><level class="para1"><num>(a)</num><content><p>where the whole of the accounting period to which any landfill tax is attributable falls within the 6-month period, the whole amount of that tax is referable to that period; and</p></content></level><level class="para1"><num>(b)</num><content><p>in any other case the amount of any landfill tax which is referable to the 6-month period is the proportion of the tax which is equal to such proportion (if any) of the accounting period in question as falls within the 6-month period;</p></content></level><wrapUp><p>and references here to accounting periods shall be construed in accordance with Part III of the Finance Act 1996.</p></wrapUp></section></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-5-paragraph-12-2"><num>(2)</num><content><p>In the <noteRef href="#m00206" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Bankruptcy (Scotland) Act 1985, Schedule 3 (preferred debts) shall be amended as mentioned in sub-paragraphs (3) and (4) below.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-12-3"><num>(3)</num><content><p><mod>In paragraph 2 the following sub-paragraph shall be inserted after sub-paragraph (1A)—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><subparagraph><num>(1B)</num><content><p>Any landfill tax which is referable to the period of six months next before the relevant date.</p></content></subparagraph></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-5-paragraph-12-4"><num>(4)</num><content><p><mod>The following shall be inserted after paragraph 8A—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><hcontainer name="crossheading" ukl:Name="Pblock"><heading>Periods to which landfill tax referable</heading><paragraph class="schProv1"><num>8B</num><subparagraph><num>(1)</num><intro><p>For the purpose of paragraph 2(1B) of Part I of this Schedule—</p></intro><level class="para1"><num>(a)</num><content><p>where the whole of the accounting period to which any landfill tax is attributable falls within the period of six months next before the relevant date (“the relevant period”), the whole amount of that tax shall be referable to the relevant period; and</p></content></level><level class="para1"><num>(b)</num><content><p>in any other case the amount of any landfill tax which shall be referable to the relevant period shall be the proportion of the tax which is equal to such proportion (if any) of the accounting period in question as falls within the relevant period.</p></content></level></subparagraph><subparagraph><num>(2)</num><content><p>In sub-paragraph (1) above “accounting period” shall be construed in accordance with Part III of the Finance Act 1996.</p></content></subparagraph></paragraph></hcontainer></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-5-paragraph-12-5"><num>(5)</num><content><p><mod>In the <noteRef href="#m00207" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Insolvency (Northern Ireland) Order 1989, in Article 346(1) (preferential debts) the words “landfill tax” shall be inserted after “insurance premium tax” and in Schedule 4 (categories of preferential debts) the following paragraph shall be inserted after paragraph 3A—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><paragraph class="schProv1"><num>3B</num><intro><p>Any landfill tax which is referable to the period of 6 months next before the relevant date (which period is referred to below as “the 6-month period”).</p><p>For the purposes of this paragraph—</p></intro><level class="para1"><num>(a)</num><content><p>where the whole of the accounting period to which any landfill tax is attributable falls within the 6-month period, the whole amount of that tax is referable to that period; and</p></content></level><level class="para1"><num>(b)</num><content><p>in any other case the amount of any landfill tax which is referable to the 6-month period is the proportion of the tax which is equal to such proportion (if any) of the accounting period in question as falls within the 6-month period;</p></content></level><wrapUp><p>and references here to accounting periods shall be construed in accordance with Part III of the Finance Act 1996.</p></wrapUp></paragraph></quotedStructure></mod></p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-5-part-III-crossheading-distress-and-diligence"><heading>Distress and diligence</heading><paragraph eId="schedule-5-paragraph-13" class="schProv1"><num>13</num><subparagraph eId="schedule-5-paragraph-13-1"><num>(1)</num><intro><p>Regulations may make provision in respect of England and Wales and Northern Ireland—</p></intro><level class="para1" eId="schedule-5-paragraph-13-1-a"><num>(a)</num><content><p>for authorising distress to be levied on the goods and chattels of any person refusing or neglecting to pay any tax due from him or any amount recoverable as if it were tax due from him;</p></content></level><level class="para1" eId="schedule-5-paragraph-13-1-b"><num>(b)</num><content><p>for the disposal of any goods or chattels on which distress is levied in pursuance of the regulations;</p></content></level><level class="para1" eId="schedule-5-paragraph-13-1-c"><num>(c)</num><content><p>for the imposition and recovery of costs, charges, expenses and fees in connection with anything done under the regulations.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-13-2"><num>(2)</num><intro><p>In respect of Scotland, where any tax or any amount recoverable as if it were tax is due and has not been paid, the sheriff, on an application by the Commissioners accompanied by a certificate by the Commissioners—</p></intro><level class="para1" eId="schedule-5-paragraph-13-2-a"><num>(a)</num><content><p>stating that none of the persons specified in the application has paid the tax or other sum due from him,</p></content></level><level class="para1" eId="schedule-5-paragraph-13-2-b"><num>(b)</num><content><p>stating that payment of the amount due from each such person has been demanded from him, and</p></content></level><level class="para1" eId="schedule-5-paragraph-13-2-c"><num>(c)</num><content><p>specifying the amount due from and unpaid by each such person,</p></content></level><wrapUp><p>shall grant a summary warrant in a form prescribed by act of sederunt authorising the recovery, by any of the diligences mentioned in sub-paragraph (3) below, of the amount remaining due and unpaid.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-13-3"><num>(3)</num><intro><p>The diligences referred to in sub-paragraph (2) above are—</p></intro><level class="para1" eId="schedule-5-paragraph-13-3-a"><num>(a)</num><content><p>a poinding and sale in accordance with Schedule 5 to the <noteRef href="#m00208" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Debtors (Scotland) Act 1987;</p></content></level><level class="para1" eId="schedule-5-paragraph-13-3-b"><num>(b)</num><content><p>an earnings arrestment;</p></content></level><level class="para1" eId="schedule-5-paragraph-13-3-c"><num>(c)</num><content><p>an arrestment and action of furthcoming or sale.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-13-4"><num>(4)</num><content><p>Subject to sub-paragraph (5) below and without prejudice to paragraphs 25 to 34 of Schedule 5 to the Debtors (Scotland) Act 1987 (expenses of poinding and sale) the sheriff officer’s fees, together with the outlays necessarily incurred by him, in connection with the execution of a summary warrant shall be chargeable against the debtor.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-13-5"><num>(5)</num><content><p>No fee shall be chargeable by the sheriff officer against the debtor for collecting, and accounting to the Commissioners for, sums paid to him by the debtor in respect of the amount owing.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-13-6"><num>(6)</num><content><p>Regulations may make provision for anything which the Commissioners may do under sub-paragraphs (2) to (5) above to be done by an officer of the Commissioners holding such rank as the regulations may specify.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-5-part-III-crossheading-recovery-of-overpaid-tax"><heading>Recovery of overpaid tax</heading><paragraph eId="schedule-5-paragraph-14" class="schProv1"><num>14</num><subparagraph eId="schedule-5-paragraph-14-1"><num>(1)</num><content><p>Where a person has paid an amount to the Commissioners by way of tax which was not tax due to them, they shall be liable to repay the amount to him.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-14-2"><num>(2)</num><content><p>The Commissioners shall only be liable to repay an amount under this paragraph on a claim being made for the purpose.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-14-3"><num>(3)</num><content><p>It shall be a defence, in relation to a claim under this paragraph, that repayment of an amount would unjustly enrich the claimant.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-14-4"><num>(4)</num><content><p>No amount may be claimed under this paragraph after the expiry of six years from the date on which it was paid.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-14-5"><num>(5)</num><content><p>A claim under this paragraph shall be made in such form and manner and shall be supported by such documentary evidence as may be prescribed by regulations.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-14-6"><num>(6)</num><content><p>Except as provided by this paragraph, the Commissioners shall not be liable to repay an amount paid to them by way of tax by virtue of the fact that it was not tax due to them.</p></content></subparagraph></paragraph></hcontainer></part>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="schedule-5-part-III-crossheading-general"><heading>General</heading><paragraph eId="schedule-5-paragraph-11" class="schProv1"><num>11</num><content><p>Tax due from any person shall be recoverable as a debt due to the Crown.</p></content></paragraph></hcontainer>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-5-paragraph-11" class="schProv1"><num>11</num><content><p>Tax due from any person shall be recoverable as a debt due to the Crown.</p></content></paragraph>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="schedule-5-part-III-crossheading-preferential-and-preferred-debts"><heading>Preferential and preferred debts</heading><paragraph eId="schedule-5-paragraph-12" class="schProv1"><num>12</num><subparagraph eId="schedule-5-paragraph-12-1"><num>(1)</num><content><p><mod>In the <noteRef href="#m00205" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Insolvency Act 1986, in section 386(1) (preferential debts) the words “landfill tax,” shall be inserted after “insurance premium tax,” and in Schedule 6 (categories of preferential debts) the following paragraph shall be inserted after paragraph 3A—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>3B</num><intro><p>Any landfill tax which is referable to the period of 6 months next before the relevant date (which period is referred to below as “the 6-month period”).</p><p>For the purposes of this paragraph—</p></intro><level class="para1"><num>(a)</num><content><p>where the whole of the accounting period to which any landfill tax is attributable falls within the 6-month period, the whole amount of that tax is referable to that period; and</p></content></level><level class="para1"><num>(b)</num><content><p>in any other case the amount of any landfill tax which is referable to the 6-month period is the proportion of the tax which is equal to such proportion (if any) of the accounting period in question as falls within the 6-month period;</p></content></level><wrapUp><p>and references here to accounting periods shall be construed in accordance with Part III of the Finance Act 1996.</p></wrapUp></section></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-5-paragraph-12-2"><num>(2)</num><content><p>In the <noteRef href="#m00206" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Bankruptcy (Scotland) Act 1985, Schedule 3 (preferred debts) shall be amended as mentioned in sub-paragraphs (3) and (4) below.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-12-3"><num>(3)</num><content><p><mod>In paragraph 2 the following sub-paragraph shall be inserted after sub-paragraph (1A)—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><subparagraph><num>(1B)</num><content><p>Any landfill tax which is referable to the period of six months next before the relevant date.</p></content></subparagraph></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-5-paragraph-12-4"><num>(4)</num><content><p><mod>The following shall be inserted after paragraph 8A—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><hcontainer name="crossheading" ukl:Name="Pblock"><heading>Periods to which landfill tax referable</heading><paragraph class="schProv1"><num>8B</num><subparagraph><num>(1)</num><intro><p>For the purpose of paragraph 2(1B) of Part I of this Schedule—</p></intro><level class="para1"><num>(a)</num><content><p>where the whole of the accounting period to which any landfill tax is attributable falls within the period of six months next before the relevant date (“the relevant period”), the whole amount of that tax shall be referable to the relevant period; and</p></content></level><level class="para1"><num>(b)</num><content><p>in any other case the amount of any landfill tax which shall be referable to the relevant period shall be the proportion of the tax which is equal to such proportion (if any) of the accounting period in question as falls within the relevant period.</p></content></level></subparagraph><subparagraph><num>(2)</num><content><p>In sub-paragraph (1) above “accounting period” shall be construed in accordance with Part III of the Finance Act 1996.</p></content></subparagraph></paragraph></hcontainer></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-5-paragraph-12-5"><num>(5)</num><content><p><mod>In the <noteRef href="#m00207" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Insolvency (Northern Ireland) Order 1989, in Article 346(1) (preferential debts) the words “landfill tax” shall be inserted after “insurance premium tax” and in Schedule 4 (categories of preferential debts) the following paragraph shall be inserted after paragraph 3A—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><paragraph class="schProv1"><num>3B</num><intro><p>Any landfill tax which is referable to the period of 6 months next before the relevant date (which period is referred to below as “the 6-month period”).</p><p>For the purposes of this paragraph—</p></intro><level class="para1"><num>(a)</num><content><p>where the whole of the accounting period to which any landfill tax is attributable falls within the 6-month period, the whole amount of that tax is referable to that period; and</p></content></level><level class="para1"><num>(b)</num><content><p>in any other case the amount of any landfill tax which is referable to the 6-month period is the proportion of the tax which is equal to such proportion (if any) of the accounting period in question as falls within the 6-month period;</p></content></level><wrapUp><p>and references here to accounting periods shall be construed in accordance with Part III of the Finance Act 1996.</p></wrapUp></paragraph></quotedStructure></mod></p></content></subparagraph></paragraph></hcontainer>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-5-paragraph-12" class="schProv1"><num>12</num><subparagraph eId="schedule-5-paragraph-12-1"><num>(1)</num><content><p><mod>In the <noteRef href="#m00205" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Insolvency Act 1986, in section 386(1) (preferential debts) the words “landfill tax,” shall be inserted after “insurance premium tax,” and in Schedule 6 (categories of preferential debts) the following paragraph shall be inserted after paragraph 3A—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>3B</num><intro><p>Any landfill tax which is referable to the period of 6 months next before the relevant date (which period is referred to below as “the 6-month period”).</p><p>For the purposes of this paragraph—</p></intro><level class="para1"><num>(a)</num><content><p>where the whole of the accounting period to which any landfill tax is attributable falls within the 6-month period, the whole amount of that tax is referable to that period; and</p></content></level><level class="para1"><num>(b)</num><content><p>in any other case the amount of any landfill tax which is referable to the 6-month period is the proportion of the tax which is equal to such proportion (if any) of the accounting period in question as falls within the 6-month period;</p></content></level><wrapUp><p>and references here to accounting periods shall be construed in accordance with Part III of the Finance Act 1996.</p></wrapUp></section></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-5-paragraph-12-2"><num>(2)</num><content><p>In the <noteRef href="#m00206" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Bankruptcy (Scotland) Act 1985, Schedule 3 (preferred debts) shall be amended as mentioned in sub-paragraphs (3) and (4) below.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-12-3"><num>(3)</num><content><p><mod>In paragraph 2 the following sub-paragraph shall be inserted after sub-paragraph (1A)—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><subparagraph><num>(1B)</num><content><p>Any landfill tax which is referable to the period of six months next before the relevant date.</p></content></subparagraph></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-5-paragraph-12-4"><num>(4)</num><content><p><mod>The following shall be inserted after paragraph 8A—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><hcontainer name="crossheading" ukl:Name="Pblock"><heading>Periods to which landfill tax referable</heading><paragraph class="schProv1"><num>8B</num><subparagraph><num>(1)</num><intro><p>For the purpose of paragraph 2(1B) of Part I of this Schedule—</p></intro><level class="para1"><num>(a)</num><content><p>where the whole of the accounting period to which any landfill tax is attributable falls within the period of six months next before the relevant date (“the relevant period”), the whole amount of that tax shall be referable to the relevant period; and</p></content></level><level class="para1"><num>(b)</num><content><p>in any other case the amount of any landfill tax which shall be referable to the relevant period shall be the proportion of the tax which is equal to such proportion (if any) of the accounting period in question as falls within the relevant period.</p></content></level></subparagraph><subparagraph><num>(2)</num><content><p>In sub-paragraph (1) above “accounting period” shall be construed in accordance with Part III of the Finance Act 1996.</p></content></subparagraph></paragraph></hcontainer></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-5-paragraph-12-5"><num>(5)</num><content><p><mod>In the <noteRef href="#m00207" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Insolvency (Northern Ireland) Order 1989, in Article 346(1) (preferential debts) the words “landfill tax” shall be inserted after “insurance premium tax” and in Schedule 4 (categories of preferential debts) the following paragraph shall be inserted after paragraph 3A—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><paragraph class="schProv1"><num>3B</num><intro><p>Any landfill tax which is referable to the period of 6 months next before the relevant date (which period is referred to below as “the 6-month period”).</p><p>For the purposes of this paragraph—</p></intro><level class="para1"><num>(a)</num><content><p>where the whole of the accounting period to which any landfill tax is attributable falls within the 6-month period, the whole amount of that tax is referable to that period; and</p></content></level><level class="para1"><num>(b)</num><content><p>in any other case the amount of any landfill tax which is referable to the 6-month period is the proportion of the tax which is equal to such proportion (if any) of the accounting period in question as falls within the 6-month period;</p></content></level><wrapUp><p>and references here to accounting periods shall be construed in accordance with Part III of the Finance Act 1996.</p></wrapUp></paragraph></quotedStructure></mod></p></content></subparagraph></paragraph>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="schedule-5-part-III-crossheading-distress-and-diligence"><heading>Distress and diligence</heading><paragraph eId="schedule-5-paragraph-13" class="schProv1"><num>13</num><subparagraph eId="schedule-5-paragraph-13-1"><num>(1)</num><intro><p>Regulations may make provision in respect of England and Wales and Northern Ireland—</p></intro><level class="para1" eId="schedule-5-paragraph-13-1-a"><num>(a)</num><content><p>for authorising distress to be levied on the goods and chattels of any person refusing or neglecting to pay any tax due from him or any amount recoverable as if it were tax due from him;</p></content></level><level class="para1" eId="schedule-5-paragraph-13-1-b"><num>(b)</num><content><p>for the disposal of any goods or chattels on which distress is levied in pursuance of the regulations;</p></content></level><level class="para1" eId="schedule-5-paragraph-13-1-c"><num>(c)</num><content><p>for the imposition and recovery of costs, charges, expenses and fees in connection with anything done under the regulations.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-13-2"><num>(2)</num><intro><p>In respect of Scotland, where any tax or any amount recoverable as if it were tax is due and has not been paid, the sheriff, on an application by the Commissioners accompanied by a certificate by the Commissioners—</p></intro><level class="para1" eId="schedule-5-paragraph-13-2-a"><num>(a)</num><content><p>stating that none of the persons specified in the application has paid the tax or other sum due from him,</p></content></level><level class="para1" eId="schedule-5-paragraph-13-2-b"><num>(b)</num><content><p>stating that payment of the amount due from each such person has been demanded from him, and</p></content></level><level class="para1" eId="schedule-5-paragraph-13-2-c"><num>(c)</num><content><p>specifying the amount due from and unpaid by each such person,</p></content></level><wrapUp><p>shall grant a summary warrant in a form prescribed by act of sederunt authorising the recovery, by any of the diligences mentioned in sub-paragraph (3) below, of the amount remaining due and unpaid.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-13-3"><num>(3)</num><intro><p>The diligences referred to in sub-paragraph (2) above are—</p></intro><level class="para1" eId="schedule-5-paragraph-13-3-a"><num>(a)</num><content><p>a poinding and sale in accordance with Schedule 5 to the <noteRef href="#m00208" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Debtors (Scotland) Act 1987;</p></content></level><level class="para1" eId="schedule-5-paragraph-13-3-b"><num>(b)</num><content><p>an earnings arrestment;</p></content></level><level class="para1" eId="schedule-5-paragraph-13-3-c"><num>(c)</num><content><p>an arrestment and action of furthcoming or sale.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-13-4"><num>(4)</num><content><p>Subject to sub-paragraph (5) below and without prejudice to paragraphs 25 to 34 of Schedule 5 to the Debtors (Scotland) Act 1987 (expenses of poinding and sale) the sheriff officer’s fees, together with the outlays necessarily incurred by him, in connection with the execution of a summary warrant shall be chargeable against the debtor.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-13-5"><num>(5)</num><content><p>No fee shall be chargeable by the sheriff officer against the debtor for collecting, and accounting to the Commissioners for, sums paid to him by the debtor in respect of the amount owing.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-13-6"><num>(6)</num><content><p>Regulations may make provision for anything which the Commissioners may do under sub-paragraphs (2) to (5) above to be done by an officer of the Commissioners holding such rank as the regulations may specify.</p></content></subparagraph></paragraph></hcontainer>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-5-paragraph-13" class="schProv1"><num>13</num><subparagraph eId="schedule-5-paragraph-13-1"><num>(1)</num><intro><p>Regulations may make provision in respect of England and Wales and Northern Ireland—</p></intro><level class="para1" eId="schedule-5-paragraph-13-1-a"><num>(a)</num><content><p>for authorising distress to be levied on the goods and chattels of any person refusing or neglecting to pay any tax due from him or any amount recoverable as if it were tax due from him;</p></content></level><level class="para1" eId="schedule-5-paragraph-13-1-b"><num>(b)</num><content><p>for the disposal of any goods or chattels on which distress is levied in pursuance of the regulations;</p></content></level><level class="para1" eId="schedule-5-paragraph-13-1-c"><num>(c)</num><content><p>for the imposition and recovery of costs, charges, expenses and fees in connection with anything done under the regulations.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-13-2"><num>(2)</num><intro><p>In respect of Scotland, where any tax or any amount recoverable as if it were tax is due and has not been paid, the sheriff, on an application by the Commissioners accompanied by a certificate by the Commissioners—</p></intro><level class="para1" eId="schedule-5-paragraph-13-2-a"><num>(a)</num><content><p>stating that none of the persons specified in the application has paid the tax or other sum due from him,</p></content></level><level class="para1" eId="schedule-5-paragraph-13-2-b"><num>(b)</num><content><p>stating that payment of the amount due from each such person has been demanded from him, and</p></content></level><level class="para1" eId="schedule-5-paragraph-13-2-c"><num>(c)</num><content><p>specifying the amount due from and unpaid by each such person,</p></content></level><wrapUp><p>shall grant a summary warrant in a form prescribed by act of sederunt authorising the recovery, by any of the diligences mentioned in sub-paragraph (3) below, of the amount remaining due and unpaid.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-13-3"><num>(3)</num><intro><p>The diligences referred to in sub-paragraph (2) above are—</p></intro><level class="para1" eId="schedule-5-paragraph-13-3-a"><num>(a)</num><content><p>a poinding and sale in accordance with Schedule 5 to the <noteRef href="#m00208" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Debtors (Scotland) Act 1987;</p></content></level><level class="para1" eId="schedule-5-paragraph-13-3-b"><num>(b)</num><content><p>an earnings arrestment;</p></content></level><level class="para1" eId="schedule-5-paragraph-13-3-c"><num>(c)</num><content><p>an arrestment and action of furthcoming or sale.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-13-4"><num>(4)</num><content><p>Subject to sub-paragraph (5) below and without prejudice to paragraphs 25 to 34 of Schedule 5 to the Debtors (Scotland) Act 1987 (expenses of poinding and sale) the sheriff officer’s fees, together with the outlays necessarily incurred by him, in connection with the execution of a summary warrant shall be chargeable against the debtor.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-13-5"><num>(5)</num><content><p>No fee shall be chargeable by the sheriff officer against the debtor for collecting, and accounting to the Commissioners for, sums paid to him by the debtor in respect of the amount owing.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-13-6"><num>(6)</num><content><p>Regulations may make provision for anything which the Commissioners may do under sub-paragraphs (2) to (5) above to be done by an officer of the Commissioners holding such rank as the regulations may specify.</p></content></subparagraph></paragraph>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="schedule-5-part-III-crossheading-recovery-of-overpaid-tax"><heading>Recovery of overpaid tax</heading><paragraph eId="schedule-5-paragraph-14" class="schProv1"><num>14</num><subparagraph eId="schedule-5-paragraph-14-1"><num>(1)</num><content><p>Where a person has paid an amount to the Commissioners by way of tax which was not tax due to them, they shall be liable to repay the amount to him.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-14-2"><num>(2)</num><content><p>The Commissioners shall only be liable to repay an amount under this paragraph on a claim being made for the purpose.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-14-3"><num>(3)</num><content><p>It shall be a defence, in relation to a claim under this paragraph, that repayment of an amount would unjustly enrich the claimant.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-14-4"><num>(4)</num><content><p>No amount may be claimed under this paragraph after the expiry of six years from the date on which it was paid.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-14-5"><num>(5)</num><content><p>A claim under this paragraph shall be made in such form and manner and shall be supported by such documentary evidence as may be prescribed by regulations.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-14-6"><num>(6)</num><content><p>Except as provided by this paragraph, the Commissioners shall not be liable to repay an amount paid to them by way of tax by virtue of the fact that it was not tax due to them.</p></content></subparagraph></paragraph></hcontainer>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-5-paragraph-14" class="schProv1"><num>14</num><subparagraph eId="schedule-5-paragraph-14-1"><num>(1)</num><content><p>Where a person has paid an amount to the Commissioners by way of tax which was not tax due to them, they shall be liable to repay the amount to him.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-14-2"><num>(2)</num><content><p>The Commissioners shall only be liable to repay an amount under this paragraph on a claim being made for the purpose.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-14-3"><num>(3)</num><content><p>It shall be a defence, in relation to a claim under this paragraph, that repayment of an amount would unjustly enrich the claimant.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-14-4"><num>(4)</num><content><p>No amount may be claimed under this paragraph after the expiry of six years from the date on which it was paid.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-14-5"><num>(5)</num><content><p>A claim under this paragraph shall be made in such form and manner and shall be supported by such documentary evidence as may be prescribed by regulations.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-14-6"><num>(6)</num><content><p>Except as provided by this paragraph, the Commissioners shall not be liable to repay an amount paid to them by way of tax by virtue of the fact that it was not tax due to them.</p></content></subparagraph></paragraph>
<part xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" eId="schedule-5-part-IV"><num>Part IV</num><heading>Criminal Penalties</heading><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-5-part-IV-crossheading-criminal-offences"><heading>Criminal offences</heading><paragraph eId="schedule-5-paragraph-15" class="schProv1"><num>15</num><subparagraph eId="schedule-5-paragraph-15-1"><num>(1)</num><intro><p>A person is guilty of an offence if—</p></intro><level class="para1" eId="schedule-5-paragraph-15-1-a"><num>(a)</num><content><p>being a registrable person, he is knowingly concerned in, or in the taking of steps with a view to, the fraudulent evasion of tax by him or another registrable person, or</p></content></level><level class="para1" eId="schedule-5-paragraph-15-1-b"><num>(b)</num><content><p>not being a registrable person, he is knowingly concerned in, or in the taking of steps with a view to, the fraudulent evasion of tax by a registrable person.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-15-2"><num>(2)</num><content><p>Any reference in sub-paragraph (1) above to the evasion of tax includes a reference to the obtaining of a payment under regulations under section 51(2)(c) or (d) or (f) of this Act.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-15-3"><num>(3)</num><intro><p>A person is guilty of an offence if with the requisite intent—</p></intro><level class="para1" eId="schedule-5-paragraph-15-3-a"><num>(a)</num><content><p>he produces, furnishes or sends, or causes to be produced, furnished or sent, for the purposes of this Part of this Act any document which is false in a material particular, or</p></content></level><level class="para1" eId="schedule-5-paragraph-15-3-b"><num>(b)</num><content><p>he otherwise makes use for those purposes of such a document;</p></content></level><wrapUp><p>and the requisite intent is intent to deceive or to secure that a machine will respond to the document as if it were a true document.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-15-4"><num>(4)</num><content><p>A person is guilty of an offence if in furnishing any information for the purposes of this Part of this Act he makes a statement which he knows to be false in a material particular or recklessly makes a statement which is false in a material particular.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-15-5"><num>(5)</num><content><p>A person is guilty of an offence by virtue of this sub-paragraph if his conduct during any specified period must have involved the commission by him of one or more offences under the preceding provisions of this paragraph; and the preceding provisions of this sub-paragraph apply whether or not the particulars of that offence or those offences are known.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-15-6"><num>(6)</num><intro><p>A person is guilty of an offence if—</p></intro><level class="para1" eId="schedule-5-paragraph-15-6-a"><num>(a)</num><content><p>he enters into a taxable landfill contract, or</p></content></level><level class="para1" eId="schedule-5-paragraph-15-6-b"><num>(b)</num><content><p>he makes arrangements for other persons to enter into such a contract,</p></content></level><wrapUp><p>with reason to believe that tax in respect of the disposal concerned will be evaded.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-15-7"><num>(7)</num><content><p>A person is guilty of an offence if he carries out taxable activities without giving security (or further security) he has been required to give under paragraph 31 below.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-15-8"><num>(8)</num><content><p>For the purposes of this paragraph a taxable landfill contract is a contract under which there is to be a taxable disposal.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-5-part-IV-crossheading-criminal-penalties"><heading>Criminal penalties</heading><paragraph eId="schedule-5-paragraph-16" class="schProv1"><num>16</num><subparagraph eId="schedule-5-paragraph-16-1"><num>(1)</num><intro><p>A person guilty of an offence under paragraph 15(1) above is liable—</p></intro><level class="para1" eId="schedule-5-paragraph-16-1-a"><num>(a)</num><content><p>on summary conviction, to a penalty of the statutory maximum or of three times the amount of the tax, whichever is the greater, or to imprisonment for a term not exceeding six months or to both;</p></content></level><level class="para1" eId="schedule-5-paragraph-16-1-b"><num>(b)</num><content><p>on conviction on indictment, to a penalty of any amount or to imprisonment for a term not exceeding seven years or to both.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-16-2"><num>(2)</num><intro><p>The reference in sub-paragraph (1) above to the amount of the tax shall be construed, in relation to tax itself or a payment falling within paragraph 15(2) above, as a reference to the aggregate of—</p></intro><level class="para1" eId="schedule-5-paragraph-16-2-a"><num>(a)</num><content><p>the amount (if any) falsely claimed by way of credit, and</p></content></level><level class="para1" eId="schedule-5-paragraph-16-2-b"><num>(b)</num><content><p>the amount (if any) by which the gross amount of tax was falsely understated.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-16-3"><num>(3)</num><intro><p>A person guilty of an offence under paragraph 15(3) or (4) above is liable—</p></intro><level class="para1" eId="schedule-5-paragraph-16-3-a"><num>(a)</num><content><p>on summary conviction, to a penalty of the statutory maximum (or, where sub-paragraph (4) below applies, to the alternative penalty there specified if it is greater) or to imprisonment for a term not exceeding six months or to both;</p></content></level><level class="para1" eId="schedule-5-paragraph-16-3-b"><num>(b)</num><content><p>on conviction on indictment, to a penalty of any amount or to imprisonment for a term not exceeding seven years or to both.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-16-4"><num>(4)</num><intro><p>Where—</p></intro><level class="para1" eId="schedule-5-paragraph-16-4-a"><num>(a)</num><content><p>the document referred to in paragraph 15(3) above is a return required under this Part of this Act, or</p></content></level><level class="para1" eId="schedule-5-paragraph-16-4-b"><num>(b)</num><content><p>the information referred to in paragraph 15(4) above is contained in or otherwise relevant to such a return,</p></content></level><wrapUp><p>the alternative penalty is a penalty equal to three times the aggregate of the amount (if any) falsely claimed by way of credit and the amount (if any) by which the gross amount of tax was understated.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-16-5"><num>(5)</num><intro><p>A person guilty of an offence under paragraph 15(5) above is liable—</p></intro><level class="para1" eId="schedule-5-paragraph-16-5-a"><num>(a)</num><content><p>on summary conviction, to a penalty of the statutory maximum (or, if greater, three times the amount of any tax that was or was intended to be evaded by his conduct) or to imprisonment for a term not exceeding six months or to both;</p></content></level><level class="para1" eId="schedule-5-paragraph-16-5-b"><num>(b)</num><content><p>on conviction on indictment, to a penalty of any amount or to imprisonment for a term not exceeding seven years or to both;</p></content></level><wrapUp><p>and paragraph 15(2) and sub-paragraph (2) above shall apply for the purposes of this sub-paragraph as they apply respectively for the purposes of paragraph 15(1) and sub-paragraph (1) above.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-16-6"><num>(6)</num><content><p>A person guilty of an offence under paragraph 15(6) above is liable on summary conviction to a penalty of level 5 on the standard scale or three times the amount of the tax, whichever is the greater.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-16-7"><num>(7)</num><content><p>A person guilty of an offence under paragraph 15(7) above is liable on summary conviction to a penalty of level 5 on the standard scale.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-16-8"><num>(8)</num><intro><p>In this paragraph—</p></intro><level class="para1" eId="schedule-5-paragraph-16-8-a"><num>(a)</num><content><p>“credit” means credit for which provision is made by regulations under section 51 of this Act;</p></content></level><level class="para1" eId="schedule-5-paragraph-16-8-b"><num>(b)</num><content><p>“the gross amount of tax” means the total amount of tax due before taking into account any deduction for which provision is made by regulations under section 51(2) of this Act.</p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-5-part-IV-crossheading-criminal-proceedings-etc"><heading>Criminal proceedings etc.</heading><paragraph eId="schedule-5-paragraph-17" class="schProv1"><num>17</num><content><p>Sections 145 to 155 of the <noteRef href="#m00209" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Customs and Excise Management Act 1979 (proceedings for offences, mitigation of penalties and certain other matters) shall apply in relation to offences under paragraph 15 above and penalties imposed under paragraph 16 above as they apply in relation to offences and penalties under the customs and excise Acts as defined in that Act.</p></content></paragraph></hcontainer></part>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="schedule-5-part-IV-crossheading-criminal-offences"><heading>Criminal offences</heading><paragraph eId="schedule-5-paragraph-15" class="schProv1"><num>15</num><subparagraph eId="schedule-5-paragraph-15-1"><num>(1)</num><intro><p>A person is guilty of an offence if—</p></intro><level class="para1" eId="schedule-5-paragraph-15-1-a"><num>(a)</num><content><p>being a registrable person, he is knowingly concerned in, or in the taking of steps with a view to, the fraudulent evasion of tax by him or another registrable person, or</p></content></level><level class="para1" eId="schedule-5-paragraph-15-1-b"><num>(b)</num><content><p>not being a registrable person, he is knowingly concerned in, or in the taking of steps with a view to, the fraudulent evasion of tax by a registrable person.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-15-2"><num>(2)</num><content><p>Any reference in sub-paragraph (1) above to the evasion of tax includes a reference to the obtaining of a payment under regulations under section 51(2)(c) or (d) or (f) of this Act.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-15-3"><num>(3)</num><intro><p>A person is guilty of an offence if with the requisite intent—</p></intro><level class="para1" eId="schedule-5-paragraph-15-3-a"><num>(a)</num><content><p>he produces, furnishes or sends, or causes to be produced, furnished or sent, for the purposes of this Part of this Act any document which is false in a material particular, or</p></content></level><level class="para1" eId="schedule-5-paragraph-15-3-b"><num>(b)</num><content><p>he otherwise makes use for those purposes of such a document;</p></content></level><wrapUp><p>and the requisite intent is intent to deceive or to secure that a machine will respond to the document as if it were a true document.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-15-4"><num>(4)</num><content><p>A person is guilty of an offence if in furnishing any information for the purposes of this Part of this Act he makes a statement which he knows to be false in a material particular or recklessly makes a statement which is false in a material particular.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-15-5"><num>(5)</num><content><p>A person is guilty of an offence by virtue of this sub-paragraph if his conduct during any specified period must have involved the commission by him of one or more offences under the preceding provisions of this paragraph; and the preceding provisions of this sub-paragraph apply whether or not the particulars of that offence or those offences are known.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-15-6"><num>(6)</num><intro><p>A person is guilty of an offence if—</p></intro><level class="para1" eId="schedule-5-paragraph-15-6-a"><num>(a)</num><content><p>he enters into a taxable landfill contract, or</p></content></level><level class="para1" eId="schedule-5-paragraph-15-6-b"><num>(b)</num><content><p>he makes arrangements for other persons to enter into such a contract,</p></content></level><wrapUp><p>with reason to believe that tax in respect of the disposal concerned will be evaded.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-15-7"><num>(7)</num><content><p>A person is guilty of an offence if he carries out taxable activities without giving security (or further security) he has been required to give under paragraph 31 below.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-15-8"><num>(8)</num><content><p>For the purposes of this paragraph a taxable landfill contract is a contract under which there is to be a taxable disposal.</p></content></subparagraph></paragraph></hcontainer>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-5-paragraph-15" class="schProv1"><num>15</num><subparagraph eId="schedule-5-paragraph-15-1"><num>(1)</num><intro><p>A person is guilty of an offence if—</p></intro><level class="para1" eId="schedule-5-paragraph-15-1-a"><num>(a)</num><content><p>being a registrable person, he is knowingly concerned in, or in the taking of steps with a view to, the fraudulent evasion of tax by him or another registrable person, or</p></content></level><level class="para1" eId="schedule-5-paragraph-15-1-b"><num>(b)</num><content><p>not being a registrable person, he is knowingly concerned in, or in the taking of steps with a view to, the fraudulent evasion of tax by a registrable person.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-15-2"><num>(2)</num><content><p>Any reference in sub-paragraph (1) above to the evasion of tax includes a reference to the obtaining of a payment under regulations under section 51(2)(c) or (d) or (f) of this Act.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-15-3"><num>(3)</num><intro><p>A person is guilty of an offence if with the requisite intent—</p></intro><level class="para1" eId="schedule-5-paragraph-15-3-a"><num>(a)</num><content><p>he produces, furnishes or sends, or causes to be produced, furnished or sent, for the purposes of this Part of this Act any document which is false in a material particular, or</p></content></level><level class="para1" eId="schedule-5-paragraph-15-3-b"><num>(b)</num><content><p>he otherwise makes use for those purposes of such a document;</p></content></level><wrapUp><p>and the requisite intent is intent to deceive or to secure that a machine will respond to the document as if it were a true document.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-15-4"><num>(4)</num><content><p>A person is guilty of an offence if in furnishing any information for the purposes of this Part of this Act he makes a statement which he knows to be false in a material particular or recklessly makes a statement which is false in a material particular.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-15-5"><num>(5)</num><content><p>A person is guilty of an offence by virtue of this sub-paragraph if his conduct during any specified period must have involved the commission by him of one or more offences under the preceding provisions of this paragraph; and the preceding provisions of this sub-paragraph apply whether or not the particulars of that offence or those offences are known.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-15-6"><num>(6)</num><intro><p>A person is guilty of an offence if—</p></intro><level class="para1" eId="schedule-5-paragraph-15-6-a"><num>(a)</num><content><p>he enters into a taxable landfill contract, or</p></content></level><level class="para1" eId="schedule-5-paragraph-15-6-b"><num>(b)</num><content><p>he makes arrangements for other persons to enter into such a contract,</p></content></level><wrapUp><p>with reason to believe that tax in respect of the disposal concerned will be evaded.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-15-7"><num>(7)</num><content><p>A person is guilty of an offence if he carries out taxable activities without giving security (or further security) he has been required to give under paragraph 31 below.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-15-8"><num>(8)</num><content><p>For the purposes of this paragraph a taxable landfill contract is a contract under which there is to be a taxable disposal.</p></content></subparagraph></paragraph>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="schedule-5-part-IV-crossheading-criminal-penalties"><heading>Criminal penalties</heading><paragraph eId="schedule-5-paragraph-16" class="schProv1"><num>16</num><subparagraph eId="schedule-5-paragraph-16-1"><num>(1)</num><intro><p>A person guilty of an offence under paragraph 15(1) above is liable—</p></intro><level class="para1" eId="schedule-5-paragraph-16-1-a"><num>(a)</num><content><p>on summary conviction, to a penalty of the statutory maximum or of three times the amount of the tax, whichever is the greater, or to imprisonment for a term not exceeding six months or to both;</p></content></level><level class="para1" eId="schedule-5-paragraph-16-1-b"><num>(b)</num><content><p>on conviction on indictment, to a penalty of any amount or to imprisonment for a term not exceeding seven years or to both.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-16-2"><num>(2)</num><intro><p>The reference in sub-paragraph (1) above to the amount of the tax shall be construed, in relation to tax itself or a payment falling within paragraph 15(2) above, as a reference to the aggregate of—</p></intro><level class="para1" eId="schedule-5-paragraph-16-2-a"><num>(a)</num><content><p>the amount (if any) falsely claimed by way of credit, and</p></content></level><level class="para1" eId="schedule-5-paragraph-16-2-b"><num>(b)</num><content><p>the amount (if any) by which the gross amount of tax was falsely understated.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-16-3"><num>(3)</num><intro><p>A person guilty of an offence under paragraph 15(3) or (4) above is liable—</p></intro><level class="para1" eId="schedule-5-paragraph-16-3-a"><num>(a)</num><content><p>on summary conviction, to a penalty of the statutory maximum (or, where sub-paragraph (4) below applies, to the alternative penalty there specified if it is greater) or to imprisonment for a term not exceeding six months or to both;</p></content></level><level class="para1" eId="schedule-5-paragraph-16-3-b"><num>(b)</num><content><p>on conviction on indictment, to a penalty of any amount or to imprisonment for a term not exceeding seven years or to both.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-16-4"><num>(4)</num><intro><p>Where—</p></intro><level class="para1" eId="schedule-5-paragraph-16-4-a"><num>(a)</num><content><p>the document referred to in paragraph 15(3) above is a return required under this Part of this Act, or</p></content></level><level class="para1" eId="schedule-5-paragraph-16-4-b"><num>(b)</num><content><p>the information referred to in paragraph 15(4) above is contained in or otherwise relevant to such a return,</p></content></level><wrapUp><p>the alternative penalty is a penalty equal to three times the aggregate of the amount (if any) falsely claimed by way of credit and the amount (if any) by which the gross amount of tax was understated.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-16-5"><num>(5)</num><intro><p>A person guilty of an offence under paragraph 15(5) above is liable—</p></intro><level class="para1" eId="schedule-5-paragraph-16-5-a"><num>(a)</num><content><p>on summary conviction, to a penalty of the statutory maximum (or, if greater, three times the amount of any tax that was or was intended to be evaded by his conduct) or to imprisonment for a term not exceeding six months or to both;</p></content></level><level class="para1" eId="schedule-5-paragraph-16-5-b"><num>(b)</num><content><p>on conviction on indictment, to a penalty of any amount or to imprisonment for a term not exceeding seven years or to both;</p></content></level><wrapUp><p>and paragraph 15(2) and sub-paragraph (2) above shall apply for the purposes of this sub-paragraph as they apply respectively for the purposes of paragraph 15(1) and sub-paragraph (1) above.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-16-6"><num>(6)</num><content><p>A person guilty of an offence under paragraph 15(6) above is liable on summary conviction to a penalty of level 5 on the standard scale or three times the amount of the tax, whichever is the greater.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-16-7"><num>(7)</num><content><p>A person guilty of an offence under paragraph 15(7) above is liable on summary conviction to a penalty of level 5 on the standard scale.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-16-8"><num>(8)</num><intro><p>In this paragraph—</p></intro><level class="para1" eId="schedule-5-paragraph-16-8-a"><num>(a)</num><content><p>“credit” means credit for which provision is made by regulations under section 51 of this Act;</p></content></level><level class="para1" eId="schedule-5-paragraph-16-8-b"><num>(b)</num><content><p>“the gross amount of tax” means the total amount of tax due before taking into account any deduction for which provision is made by regulations under section 51(2) of this Act.</p></content></level></subparagraph></paragraph></hcontainer>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-5-paragraph-16" class="schProv1"><num>16</num><subparagraph eId="schedule-5-paragraph-16-1"><num>(1)</num><intro><p>A person guilty of an offence under paragraph 15(1) above is liable—</p></intro><level class="para1" eId="schedule-5-paragraph-16-1-a"><num>(a)</num><content><p>on summary conviction, to a penalty of the statutory maximum or of three times the amount of the tax, whichever is the greater, or to imprisonment for a term not exceeding six months or to both;</p></content></level><level class="para1" eId="schedule-5-paragraph-16-1-b"><num>(b)</num><content><p>on conviction on indictment, to a penalty of any amount or to imprisonment for a term not exceeding seven years or to both.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-16-2"><num>(2)</num><intro><p>The reference in sub-paragraph (1) above to the amount of the tax shall be construed, in relation to tax itself or a payment falling within paragraph 15(2) above, as a reference to the aggregate of—</p></intro><level class="para1" eId="schedule-5-paragraph-16-2-a"><num>(a)</num><content><p>the amount (if any) falsely claimed by way of credit, and</p></content></level><level class="para1" eId="schedule-5-paragraph-16-2-b"><num>(b)</num><content><p>the amount (if any) by which the gross amount of tax was falsely understated.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-16-3"><num>(3)</num><intro><p>A person guilty of an offence under paragraph 15(3) or (4) above is liable—</p></intro><level class="para1" eId="schedule-5-paragraph-16-3-a"><num>(a)</num><content><p>on summary conviction, to a penalty of the statutory maximum (or, where sub-paragraph (4) below applies, to the alternative penalty there specified if it is greater) or to imprisonment for a term not exceeding six months or to both;</p></content></level><level class="para1" eId="schedule-5-paragraph-16-3-b"><num>(b)</num><content><p>on conviction on indictment, to a penalty of any amount or to imprisonment for a term not exceeding seven years or to both.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-16-4"><num>(4)</num><intro><p>Where—</p></intro><level class="para1" eId="schedule-5-paragraph-16-4-a"><num>(a)</num><content><p>the document referred to in paragraph 15(3) above is a return required under this Part of this Act, or</p></content></level><level class="para1" eId="schedule-5-paragraph-16-4-b"><num>(b)</num><content><p>the information referred to in paragraph 15(4) above is contained in or otherwise relevant to such a return,</p></content></level><wrapUp><p>the alternative penalty is a penalty equal to three times the aggregate of the amount (if any) falsely claimed by way of credit and the amount (if any) by which the gross amount of tax was understated.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-16-5"><num>(5)</num><intro><p>A person guilty of an offence under paragraph 15(5) above is liable—</p></intro><level class="para1" eId="schedule-5-paragraph-16-5-a"><num>(a)</num><content><p>on summary conviction, to a penalty of the statutory maximum (or, if greater, three times the amount of any tax that was or was intended to be evaded by his conduct) or to imprisonment for a term not exceeding six months or to both;</p></content></level><level class="para1" eId="schedule-5-paragraph-16-5-b"><num>(b)</num><content><p>on conviction on indictment, to a penalty of any amount or to imprisonment for a term not exceeding seven years or to both;</p></content></level><wrapUp><p>and paragraph 15(2) and sub-paragraph (2) above shall apply for the purposes of this sub-paragraph as they apply respectively for the purposes of paragraph 15(1) and sub-paragraph (1) above.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-16-6"><num>(6)</num><content><p>A person guilty of an offence under paragraph 15(6) above is liable on summary conviction to a penalty of level 5 on the standard scale or three times the amount of the tax, whichever is the greater.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-16-7"><num>(7)</num><content><p>A person guilty of an offence under paragraph 15(7) above is liable on summary conviction to a penalty of level 5 on the standard scale.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-16-8"><num>(8)</num><intro><p>In this paragraph—</p></intro><level class="para1" eId="schedule-5-paragraph-16-8-a"><num>(a)</num><content><p>“credit” means credit for which provision is made by regulations under section 51 of this Act;</p></content></level><level class="para1" eId="schedule-5-paragraph-16-8-b"><num>(b)</num><content><p>“the gross amount of tax” means the total amount of tax due before taking into account any deduction for which provision is made by regulations under section 51(2) of this Act.</p></content></level></subparagraph></paragraph>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="schedule-5-part-IV-crossheading-criminal-proceedings-etc"><heading>Criminal proceedings etc.</heading><paragraph eId="schedule-5-paragraph-17" class="schProv1"><num>17</num><content><p>Sections 145 to 155 of the <noteRef href="#m00209" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Customs and Excise Management Act 1979 (proceedings for offences, mitigation of penalties and certain other matters) shall apply in relation to offences under paragraph 15 above and penalties imposed under paragraph 16 above as they apply in relation to offences and penalties under the customs and excise Acts as defined in that Act.</p></content></paragraph></hcontainer>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-5-paragraph-17" class="schProv1"><num>17</num><content><p>Sections 145 to 155 of the <noteRef href="#m00209" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Customs and Excise Management Act 1979 (proceedings for offences, mitigation of penalties and certain other matters) shall apply in relation to offences under paragraph 15 above and penalties imposed under paragraph 16 above as they apply in relation to offences and penalties under the customs and excise Acts as defined in that Act.</p></content></paragraph>
<part xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-5-part-V"><num>Part V</num><heading>Civil Penalties</heading><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-5-part-V-crossheading-evasion"><heading>Evasion</heading><paragraph eId="schedule-5-paragraph-18" class="schProv1"><num>18</num><subparagraph eId="schedule-5-paragraph-18-1"><num>(1)</num><intro><p>Where—</p></intro><level class="para1" eId="schedule-5-paragraph-18-1-a"><num>(a)</num><content><p>for the purpose of evading tax, a registrable person does any act or omits to take any action, and</p></content></level><level class="para1" eId="schedule-5-paragraph-18-1-b"><num>(b)</num><content><p>his conduct involves dishonesty (whether or not it is such as to give rise to criminal liability),</p></content></level><wrapUp><p>he is liable to a penalty equal to the amount of tax evaded, or (as the case may be) sought to be evaded, by his conduct; but this is subject to sub-paragraph (7) below.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-18-2"><num>(2)</num><content><p>The reference in sub-paragraph (1)(a) above to evading tax includes a reference to obtaining a payment under regulations under section 51(2)(c) or (d) or (f) of this Act in circumstances where the person concerned is not entitled to the sum.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-18-3"><num>(3)</num><intro><p>The reference in sub-paragraph (1) above to the amount of tax evaded or sought to be evaded is a reference to the aggregate of—</p></intro><level class="para1" eId="schedule-5-paragraph-18-3-a"><num>(a)</num><content><p>the amount (if any) falsely claimed by way of credit, and</p></content></level><level class="para1" eId="schedule-5-paragraph-18-3-b"><num>(b)</num><content><p>the amount (if any) by which the gross amount of tax was falsely understated.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-18-4"><num>(4)</num><intro><p>In this paragraph—</p></intro><level class="para1" eId="schedule-5-paragraph-18-4-a"><num>(a)</num><content><p>“credit” means credit for which provision is made by regulations under section 51 of this Act;</p></content></level><level class="para1" eId="schedule-5-paragraph-18-4-b"><num>(b)</num><content><p>“the gross amount of tax” means the total amount of tax due before taking into account any deduction for which provision is made by regulations under section 51(2) of this Act.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-18-5"><num>(5)</num><intro><p>Statements made or documents produced by or on behalf of a person shall not be inadmissible in any such proceedings as are mentioned in sub-paragraph (6) below by reason only that it has been drawn to his attention—</p></intro><level class="para1" eId="schedule-5-paragraph-18-5-a"><num>(a)</num><content><p>that, in relation to tax, the Commissioners may assess an amount due by way of a civil penalty instead of instituting criminal proceedings and, though no undertaking can be given as to whether the Commissioners will make such an assessment in the case of any person, it is their practice to be influenced by the fact that a person has made a full confession of any dishonest conduct to which he has been a party and has given full facilities for investigation, and</p></content></level><level class="para1" eId="schedule-5-paragraph-18-5-b"><num>(b)</num><content><p>that the Commissioners or, on appeal, an appeal tribunal have power under paragraph 25 below to reduce a penalty under this paragraph,</p></content></level><wrapUp><p>and that he was or may have been induced thereby to make the statements or produce the documents.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-18-6"><num>(6)</num><intro><p>The proceedings referred to in sub-paragraph (5) above are—</p></intro><level class="para1" eId="schedule-5-paragraph-18-6-a"><num>(a)</num><content><p>any criminal proceedings against the person concerned in respect of any offence in connection with or in relation to tax, and</p></content></level><level class="para1" eId="schedule-5-paragraph-18-6-b"><num>(b)</num><content><p>any proceedings against him for the recovery of any sum due from him in connection with or in relation to tax.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-18-7"><num>(7)</num><content><p>Where, by reason of conduct falling within sub-paragraph (1) above, a person is convicted of an offence (whether under this Part of this Act or otherwise) that conduct shall not also give rise to liability to a penalty under this paragraph.</p></content></subparagraph></paragraph><paragraph eId="schedule-5-paragraph-19" class="schProv1"><num>19</num><subparagraph eId="schedule-5-paragraph-19-1"><num>(1)</num><intro><p>Where it appears to the Commissioners—</p></intro><level class="para1" eId="schedule-5-paragraph-19-1-a"><num>(a)</num><content><p>that a body corporate is liable to a penalty under paragraph 18 above, and</p></content></level><level class="para1" eId="schedule-5-paragraph-19-1-b"><num>(b)</num><content><p>that the conduct giving rise to that penalty is, in whole or in part, attributable to the dishonesty of a person who is, or at the material time was, a director or managing officer of the body corporate (a named officer),</p></content></level><wrapUp><p>the Commissioners may serve a notice under this paragraph on the body corporate and on the named officer.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-19-2"><num>(2)</num><intro><p>A notice under this paragraph shall state—</p></intro><level class="para1" eId="schedule-5-paragraph-19-2-a"><num>(a)</num><content><p>the amount of the penalty referred to in sub-paragraph (1)(a) above (the basic penalty), and</p></content></level><level class="para1" eId="schedule-5-paragraph-19-2-b"><num>(b)</num><content><p>that the Commissioners propose, in accordance with this paragraph, to recover from the named officer such portion (which may be the whole) of the basic penalty as is specified in the notice.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-19-3"><num>(3)</num><content><p>Where a notice is served under this paragraph, the portion of the basic penalty specified in the notice shall be recoverable from the named officer as if he were personally liable under paragraph 18 above to a penalty which corresponds to that portion; and the amount of that penalty may be assessed and notified to him accordingly under paragraph 32 below.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-19-4"><num>(4)</num><intro><p>Where a notice is served under this paragraph—</p></intro><level class="para1" eId="schedule-5-paragraph-19-4-a"><num>(a)</num><content><p>the amount which, under paragraph 32 below, may be assessed as the amount due by way of penalty from the body corporate shall be only so much (if any) of the basic penalty as is not assessed on and notified to a named officer by virtue of sub-paragraph (3) above, and</p></content></level><level class="para1" eId="schedule-5-paragraph-19-4-b"><num>(b)</num><content><p>the body corporate shall be treated as discharged from liability for so much of the basic penalty as is so assessed and notified.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-19-5"><num>(5)</num><intro><p>No appeal shall lie against a notice under this paragraph as such but—</p></intro><level class="para1" eId="schedule-5-paragraph-19-5-a"><num>(a)</num><content><p>where a body corporate is assessed as mentioned in sub-paragraph (4)(a) above, the body corporate may require a review of the Commissioners' decision as to its liability to a penalty and as to the amount of the basic penalty as if it were specified in the assessment;</p></content></level><level class="para1" eId="schedule-5-paragraph-19-5-b"><num>(b)</num><content><p>where an assessment is made on a named officer by virtue of sub-paragraph (3) above, the named officer may require a review of the Commissioners' decision that the conduct of the body corporate referred to in sub-paragraph (1)(b) above is, in whole or in part, attributable to his dishonesty and of their decision as to the portion of the penalty which the Commissioners propose to recover from him;</p></content></level><level class="para1" eId="schedule-5-paragraph-19-5-c"><num>(c)</num><content><p>sections 55 and 56 of this Act shall apply accordingly.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-19-6"><num>(6)</num><content><p>In this paragraph a “managing officer”, in relation to a body corporate, means any manager, secretary or other similar officer of the body corporate or any person purporting to act in any such capacity or as a director; and where the affairs of a body corporate are managed by its members, this paragraph shall apply in relation to the conduct of a member in connection with his functions of management as if he were a director of the body corporate.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-5-part-V-crossheading-misdeclaration-or-neglect"><heading>Misdeclaration or neglect</heading><paragraph eId="schedule-5-paragraph-20" class="schProv1"><num>20</num><subparagraph eId="schedule-5-paragraph-20-1"><num>(1)</num><intro><p>Where, for an accounting period—</p></intro><level class="para1" eId="schedule-5-paragraph-20-1-a"><num>(a)</num><content><p>a return is made which understates a person’s liability to tax or overstates his entitlement to credit, or</p></content></level><level class="para1" eId="schedule-5-paragraph-20-1-b"><num>(b)</num><content><p>an assessment is made which understates a person’s liability to tax and, at the end of the period of 30 days beginning on the date of the assessment, he has not taken all such steps as are reasonable to draw the understatement to the attention of the Commissioners,</p></content></level><wrapUp><p>the person concerned is liable, subject to sub-paragraphs (3) and (4) below, to a penalty equal to 5 per cent. of the amount of the understatement of liability or (as the case may be) overstatement of entitlement.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-20-2"><num>(2)</num><intro><p>Where—</p></intro><level class="para1" eId="schedule-5-paragraph-20-2-a"><num>(a)</num><content><p>a return for an accounting period overstates or understates to any extent a person’s liability to tax or his entitlement to credit, and</p></content></level><level class="para1" eId="schedule-5-paragraph-20-2-b"><num>(b)</num><content><p>that return is corrected, in such circumstances and in accordance with such conditions as may be prescribed by regulations, by a return for a later accounting period which understates or overstates, to the corresponding extent, that liability or entitlement,</p></content></level><wrapUp><p>it shall be assumed for the purposes of this paragraph that the statement made by each such return is a correct statement for the accounting period to which the return relates.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-20-3"><num>(3)</num><intro><p>Conduct falling within sub-paragraph (1) above shall not give rise to liability to a penalty under this paragraph if the person concerned furnishes full information with respect to the inaccuracy concerned to the Commissioners—</p></intro><level class="para1" eId="schedule-5-paragraph-20-3-a"><num>(a)</num><content><p>at a time when he has no reason to believe that enquiries are being made by the Commissioners into his affairs, so far as they relate to tax, and</p></content></level><level class="para1" eId="schedule-5-paragraph-20-3-b"><num>(b)</num><content><p>in such form and manner as may be prescribed by regulations or specified by the Commissioners in accordance with provision made by regulations.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-20-4"><num>(4)</num><intro><p>Where, by reason of conduct falling within sub-paragraph (1) above—</p></intro><level class="para1" eId="schedule-5-paragraph-20-4-a"><num>(a)</num><content><p>a person is convicted of an offence (whether under this Part of this Act or otherwise), or</p></content></level><level class="para1" eId="schedule-5-paragraph-20-4-b"><num>(b)</num><content><p>a person is assessed to a penalty under paragraph 18 above,</p></content></level><wrapUp><p>that conduct shall not also give rise to liability to a penalty under this paragraph.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-20-5"><num>(5)</num><content><p>In this paragraph “credit” means credit for which provision is made by regulations under section 51 of this Act.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-5-part-V-crossheading-registration"><heading>Registration</heading><paragraph eId="schedule-5-paragraph-21" class="schProv1"><num>21</num><subparagraph eId="schedule-5-paragraph-21-1"><num>(1)</num><content><p>A person who fails to comply with section 47(3) of this Act is liable to a penalty equal to 5 per cent. of the relevant tax or, if it is greater or the circumstances are such that there is no relevant tax, to a penalty of £250; but this is subject to sub-paragraph (4) below.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-21-2"><num>(2)</num><intro><p>In sub-paragraph (1) above “relevant tax” means the tax (if any) for which the person concerned is liable for the period which—</p></intro><level class="para1" eId="schedule-5-paragraph-21-2-a"><num>(a)</num><content><p>begins on the date with effect from which he is, in accordance with section 47 of this Act, required to be registered, and</p></content></level><level class="para1" eId="schedule-5-paragraph-21-2-b"><num>(b)</num><content><p>ends on the date on which the Commissioners received notification of, or otherwise became aware of, his liability to be registered.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-21-3"><num>(3)</num><content><p>A person who fails to comply with section 47(4) of this Act is liable to a penalty of £250.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-21-4"><num>(4)</num><intro><p>Where, by reason of conduct falling within sub-paragraph (1) above—</p></intro><level class="para1" eId="schedule-5-paragraph-21-4-a"><num>(a)</num><content><p>a person is convicted of an offence (whether under this Part of this Act or otherwise), or</p></content></level><level class="para1" eId="schedule-5-paragraph-21-4-b"><num>(b)</num><content><p>a person is assessed to a penalty under paragraph 18 above,</p></content></level><wrapUp><p>that conduct shall not also give rise to liability to a penalty under this paragraph.</p></wrapUp></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-5-part-V-crossheading-information"><heading>Information</heading><paragraph eId="schedule-5-paragraph-22" class="schProv1"><num>22</num><subparagraph eId="schedule-5-paragraph-22-1"><num>(1)</num><intro><p>If a person—</p></intro><level class="para1" eId="schedule-5-paragraph-22-1-a"><num>(a)</num><content><p>fails to comply with any provision of paragraph 1 or 3 above, or</p></content></level><level class="para1" eId="schedule-5-paragraph-22-1-b"><num>(b)</num><content><p>fails to make records as required by any provision of regulations made under paragraph 2 above,</p></content></level><wrapUp><p>he is liable to a penalty of £250; but this is subject to sub-paragraph (4) below.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-22-2"><num>(2)</num><intro><p>Where—</p></intro><level class="para1" eId="schedule-5-paragraph-22-2-a"><num>(a)</num><content><p>a penalty (an initial penalty) is imposed on a person under sub-paragraph (1) above, and</p></content></level><level class="para1" eId="schedule-5-paragraph-22-2-b"><num>(b)</num><content><p>the failure which led to the initial penalty continues after its imposition,</p></content></level><wrapUp><p>he is (subject to sub-paragraph (4) below) liable to a further penalty of £20 for each day during which (or any part of which) the failure continues after the day on which the initial penalty was imposed.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-22-3"><num>(3)</num><content><p>A person who fails to preserve records in compliance with any provision of regulations made under paragraph 2 above (read with that paragraph and any direction given under the regulations) is liable to a penalty of £250; but this is subject to sub-paragraph (4) below.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-22-4"><num>(4)</num><intro><p>Where by reason of a failure falling within sub-paragraph (1) or (3) above—</p></intro><level class="para1" eId="schedule-5-paragraph-22-4-a"><num>(a)</num><content><p>a person is convicted of an offence (whether under this Part of this Act or otherwise), or</p></content></level><level class="para1" eId="schedule-5-paragraph-22-4-b"><num>(b)</num><content><p>a person is assessed to a penalty under paragraph 18 above,</p></content></level><wrapUp><p>that failure shall not also give rise to liability to a penalty under this paragraph.</p></wrapUp></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-5-part-V-crossheading-breach-of-regulations"><heading>Breach of regulations</heading><paragraph eId="schedule-5-paragraph-23" class="schProv1"><num>23</num><subparagraph eId="schedule-5-paragraph-23-1"><num>(1)</num><content><p>Where regulations made under this Part of this Act impose a requirement on any person, they may provide that if the person fails to comply with the requirement he shall be liable to a penalty of £250; but this is subject to sub-paragraphs (2) and (3) below.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-23-2"><num>(2)</num><intro><p>Where by reason of any conduct—</p></intro><level class="para1" eId="schedule-5-paragraph-23-2-a"><num>(a)</num><content><p>a person is convicted of an offence (whether under this Part of this Act or otherwise), or</p></content></level><level class="para1" eId="schedule-5-paragraph-23-2-b"><num>(b)</num><content><p>a person is assessed to a penalty under paragraph 18 above,</p></content></level><wrapUp><p>that conduct shall not also give rise to liability to a penalty under the regulations.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-23-3"><num>(3)</num><content><p>Sub-paragraph (1) above does not apply to any failure mentioned in paragraph 22 above.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-5-part-V-crossheading-walking-possession-agreements"><heading>Walking possession agreements</heading><paragraph eId="schedule-5-paragraph-24" class="schProv1"><num>24</num><subparagraph eId="schedule-5-paragraph-24-1"><num>(1)</num><intro><p>This paragraph applies where—</p></intro><level class="para1" eId="schedule-5-paragraph-24-1-a"><num>(a)</num><content><p>in accordance with regulations under paragraph 13(1) above a distress is authorised to be levied on the goods and chattels of a person (a person in default) who has refused or neglected to pay any tax due from him or any amount recoverable as if it were tax due from him, and</p></content></level><level class="para1" eId="schedule-5-paragraph-24-1-b"><num>(b)</num><content><p>the person levying the distress and the person in default have entered into a walking possession agreement.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-24-2"><num>(2)</num><intro><p>For the purposes of this paragraph a walking possession agreement is an agreement under which, in consideration of the property distrained upon being allowed to remain in the custody of the person in default and of the delaying of its sale, the person in default—</p></intro><level class="para1" eId="schedule-5-paragraph-24-2-a"><num>(a)</num><content><p>acknowledges that the property specified in the agreement is under distraint and held in walking possession, and</p></content></level><level class="para1" eId="schedule-5-paragraph-24-2-b"><num>(b)</num><content><p>undertakes that, except with the consent of the Commissioners and subject to such conditions as they may impose, he will not remove or allow the removal of any of the specified property from the premises named in the agreement.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-24-3"><num>(3)</num><content><p>If the person in default is in breach of the undertaking contained in a walking possession agreement, he is liable to a penalty equal to half of the tax or other amount referred to in sub-paragraph (1)(a) above.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-24-4"><num>(4)</num><content><p>This paragraph does not extend to Scotland.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-5-part-V-crossheading-mitigation-of-penalties"><heading>Mitigation of penalties</heading><paragraph eId="schedule-5-paragraph-25" class="schProv1"><num>25</num><subparagraph eId="schedule-5-paragraph-25-1"><num>(1)</num><content><p>Where a person is liable to a penalty under this Part of this Schedule the Commissioners or, on appeal, an appeal tribunal may reduce the penalty to such amount (including nil) as they think proper.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-25-2"><num>(2)</num><content><p>Where the person concerned satisfies the Commissioners or, on appeal, an appeal tribunal that there is a reasonable excuse for any breach, failure or other conduct, that is a factor which (among other things) may be taken into account under sub-paragraph (1) above.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-25-3"><num>(3)</num><content><p>In the case of a penalty reduced by the Commissioners under sub-paragraph (1) above an appeal tribunal, on an appeal relating to the penalty, may cancel the whole or any part of the reduction made by the Commissioners.</p></content></subparagraph></paragraph></hcontainer></part>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="schedule-5-part-V-crossheading-evasion"><heading>Evasion</heading><paragraph eId="schedule-5-paragraph-18" class="schProv1"><num>18</num><subparagraph eId="schedule-5-paragraph-18-1"><num>(1)</num><intro><p>Where—</p></intro><level class="para1" eId="schedule-5-paragraph-18-1-a"><num>(a)</num><content><p>for the purpose of evading tax, a registrable person does any act or omits to take any action, and</p></content></level><level class="para1" eId="schedule-5-paragraph-18-1-b"><num>(b)</num><content><p>his conduct involves dishonesty (whether or not it is such as to give rise to criminal liability),</p></content></level><wrapUp><p>he is liable to a penalty equal to the amount of tax evaded, or (as the case may be) sought to be evaded, by his conduct; but this is subject to sub-paragraph (7) below.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-18-2"><num>(2)</num><content><p>The reference in sub-paragraph (1)(a) above to evading tax includes a reference to obtaining a payment under regulations under section 51(2)(c) or (d) or (f) of this Act in circumstances where the person concerned is not entitled to the sum.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-18-3"><num>(3)</num><intro><p>The reference in sub-paragraph (1) above to the amount of tax evaded or sought to be evaded is a reference to the aggregate of—</p></intro><level class="para1" eId="schedule-5-paragraph-18-3-a"><num>(a)</num><content><p>the amount (if any) falsely claimed by way of credit, and</p></content></level><level class="para1" eId="schedule-5-paragraph-18-3-b"><num>(b)</num><content><p>the amount (if any) by which the gross amount of tax was falsely understated.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-18-4"><num>(4)</num><intro><p>In this paragraph—</p></intro><level class="para1" eId="schedule-5-paragraph-18-4-a"><num>(a)</num><content><p>“credit” means credit for which provision is made by regulations under section 51 of this Act;</p></content></level><level class="para1" eId="schedule-5-paragraph-18-4-b"><num>(b)</num><content><p>“the gross amount of tax” means the total amount of tax due before taking into account any deduction for which provision is made by regulations under section 51(2) of this Act.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-18-5"><num>(5)</num><intro><p>Statements made or documents produced by or on behalf of a person shall not be inadmissible in any such proceedings as are mentioned in sub-paragraph (6) below by reason only that it has been drawn to his attention—</p></intro><level class="para1" eId="schedule-5-paragraph-18-5-a"><num>(a)</num><content><p>that, in relation to tax, the Commissioners may assess an amount due by way of a civil penalty instead of instituting criminal proceedings and, though no undertaking can be given as to whether the Commissioners will make such an assessment in the case of any person, it is their practice to be influenced by the fact that a person has made a full confession of any dishonest conduct to which he has been a party and has given full facilities for investigation, and</p></content></level><level class="para1" eId="schedule-5-paragraph-18-5-b"><num>(b)</num><content><p>that the Commissioners or, on appeal, an appeal tribunal have power under paragraph 25 below to reduce a penalty under this paragraph,</p></content></level><wrapUp><p>and that he was or may have been induced thereby to make the statements or produce the documents.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-18-6"><num>(6)</num><intro><p>The proceedings referred to in sub-paragraph (5) above are—</p></intro><level class="para1" eId="schedule-5-paragraph-18-6-a"><num>(a)</num><content><p>any criminal proceedings against the person concerned in respect of any offence in connection with or in relation to tax, and</p></content></level><level class="para1" eId="schedule-5-paragraph-18-6-b"><num>(b)</num><content><p>any proceedings against him for the recovery of any sum due from him in connection with or in relation to tax.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-18-7"><num>(7)</num><content><p>Where, by reason of conduct falling within sub-paragraph (1) above, a person is convicted of an offence (whether under this Part of this Act or otherwise) that conduct shall not also give rise to liability to a penalty under this paragraph.</p></content></subparagraph></paragraph><paragraph eId="schedule-5-paragraph-19" class="schProv1"><num>19</num><subparagraph eId="schedule-5-paragraph-19-1"><num>(1)</num><intro><p>Where it appears to the Commissioners—</p></intro><level class="para1" eId="schedule-5-paragraph-19-1-a"><num>(a)</num><content><p>that a body corporate is liable to a penalty under paragraph 18 above, and</p></content></level><level class="para1" eId="schedule-5-paragraph-19-1-b"><num>(b)</num><content><p>that the conduct giving rise to that penalty is, in whole or in part, attributable to the dishonesty of a person who is, or at the material time was, a director or managing officer of the body corporate (a named officer),</p></content></level><wrapUp><p>the Commissioners may serve a notice under this paragraph on the body corporate and on the named officer.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-19-2"><num>(2)</num><intro><p>A notice under this paragraph shall state—</p></intro><level class="para1" eId="schedule-5-paragraph-19-2-a"><num>(a)</num><content><p>the amount of the penalty referred to in sub-paragraph (1)(a) above (the basic penalty), and</p></content></level><level class="para1" eId="schedule-5-paragraph-19-2-b"><num>(b)</num><content><p>that the Commissioners propose, in accordance with this paragraph, to recover from the named officer such portion (which may be the whole) of the basic penalty as is specified in the notice.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-19-3"><num>(3)</num><content><p>Where a notice is served under this paragraph, the portion of the basic penalty specified in the notice shall be recoverable from the named officer as if he were personally liable under paragraph 18 above to a penalty which corresponds to that portion; and the amount of that penalty may be assessed and notified to him accordingly under paragraph 32 below.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-19-4"><num>(4)</num><intro><p>Where a notice is served under this paragraph—</p></intro><level class="para1" eId="schedule-5-paragraph-19-4-a"><num>(a)</num><content><p>the amount which, under paragraph 32 below, may be assessed as the amount due by way of penalty from the body corporate shall be only so much (if any) of the basic penalty as is not assessed on and notified to a named officer by virtue of sub-paragraph (3) above, and</p></content></level><level class="para1" eId="schedule-5-paragraph-19-4-b"><num>(b)</num><content><p>the body corporate shall be treated as discharged from liability for so much of the basic penalty as is so assessed and notified.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-19-5"><num>(5)</num><intro><p>No appeal shall lie against a notice under this paragraph as such but—</p></intro><level class="para1" eId="schedule-5-paragraph-19-5-a"><num>(a)</num><content><p>where a body corporate is assessed as mentioned in sub-paragraph (4)(a) above, the body corporate may require a review of the Commissioners' decision as to its liability to a penalty and as to the amount of the basic penalty as if it were specified in the assessment;</p></content></level><level class="para1" eId="schedule-5-paragraph-19-5-b"><num>(b)</num><content><p>where an assessment is made on a named officer by virtue of sub-paragraph (3) above, the named officer may require a review of the Commissioners' decision that the conduct of the body corporate referred to in sub-paragraph (1)(b) above is, in whole or in part, attributable to his dishonesty and of their decision as to the portion of the penalty which the Commissioners propose to recover from him;</p></content></level><level class="para1" eId="schedule-5-paragraph-19-5-c"><num>(c)</num><content><p>sections 55 and 56 of this Act shall apply accordingly.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-19-6"><num>(6)</num><content><p>In this paragraph a “managing officer”, in relation to a body corporate, means any manager, secretary or other similar officer of the body corporate or any person purporting to act in any such capacity or as a director; and where the affairs of a body corporate are managed by its members, this paragraph shall apply in relation to the conduct of a member in connection with his functions of management as if he were a director of the body corporate.</p></content></subparagraph></paragraph></hcontainer>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-5-paragraph-18" class="schProv1"><num>18</num><subparagraph eId="schedule-5-paragraph-18-1"><num>(1)</num><intro><p>Where—</p></intro><level class="para1" eId="schedule-5-paragraph-18-1-a"><num>(a)</num><content><p>for the purpose of evading tax, a registrable person does any act or omits to take any action, and</p></content></level><level class="para1" eId="schedule-5-paragraph-18-1-b"><num>(b)</num><content><p>his conduct involves dishonesty (whether or not it is such as to give rise to criminal liability),</p></content></level><wrapUp><p>he is liable to a penalty equal to the amount of tax evaded, or (as the case may be) sought to be evaded, by his conduct; but this is subject to sub-paragraph (7) below.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-18-2"><num>(2)</num><content><p>The reference in sub-paragraph (1)(a) above to evading tax includes a reference to obtaining a payment under regulations under section 51(2)(c) or (d) or (f) of this Act in circumstances where the person concerned is not entitled to the sum.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-18-3"><num>(3)</num><intro><p>The reference in sub-paragraph (1) above to the amount of tax evaded or sought to be evaded is a reference to the aggregate of—</p></intro><level class="para1" eId="schedule-5-paragraph-18-3-a"><num>(a)</num><content><p>the amount (if any) falsely claimed by way of credit, and</p></content></level><level class="para1" eId="schedule-5-paragraph-18-3-b"><num>(b)</num><content><p>the amount (if any) by which the gross amount of tax was falsely understated.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-18-4"><num>(4)</num><intro><p>In this paragraph—</p></intro><level class="para1" eId="schedule-5-paragraph-18-4-a"><num>(a)</num><content><p>“credit” means credit for which provision is made by regulations under section 51 of this Act;</p></content></level><level class="para1" eId="schedule-5-paragraph-18-4-b"><num>(b)</num><content><p>“the gross amount of tax” means the total amount of tax due before taking into account any deduction for which provision is made by regulations under section 51(2) of this Act.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-18-5"><num>(5)</num><intro><p>Statements made or documents produced by or on behalf of a person shall not be inadmissible in any such proceedings as are mentioned in sub-paragraph (6) below by reason only that it has been drawn to his attention—</p></intro><level class="para1" eId="schedule-5-paragraph-18-5-a"><num>(a)</num><content><p>that, in relation to tax, the Commissioners may assess an amount due by way of a civil penalty instead of instituting criminal proceedings and, though no undertaking can be given as to whether the Commissioners will make such an assessment in the case of any person, it is their practice to be influenced by the fact that a person has made a full confession of any dishonest conduct to which he has been a party and has given full facilities for investigation, and</p></content></level><level class="para1" eId="schedule-5-paragraph-18-5-b"><num>(b)</num><content><p>that the Commissioners or, on appeal, an appeal tribunal have power under paragraph 25 below to reduce a penalty under this paragraph,</p></content></level><wrapUp><p>and that he was or may have been induced thereby to make the statements or produce the documents.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-18-6"><num>(6)</num><intro><p>The proceedings referred to in sub-paragraph (5) above are—</p></intro><level class="para1" eId="schedule-5-paragraph-18-6-a"><num>(a)</num><content><p>any criminal proceedings against the person concerned in respect of any offence in connection with or in relation to tax, and</p></content></level><level class="para1" eId="schedule-5-paragraph-18-6-b"><num>(b)</num><content><p>any proceedings against him for the recovery of any sum due from him in connection with or in relation to tax.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-18-7"><num>(7)</num><content><p>Where, by reason of conduct falling within sub-paragraph (1) above, a person is convicted of an offence (whether under this Part of this Act or otherwise) that conduct shall not also give rise to liability to a penalty under this paragraph.</p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-5-paragraph-19" class="schProv1"><num>19</num><subparagraph eId="schedule-5-paragraph-19-1"><num>(1)</num><intro><p>Where it appears to the Commissioners—</p></intro><level class="para1" eId="schedule-5-paragraph-19-1-a"><num>(a)</num><content><p>that a body corporate is liable to a penalty under paragraph 18 above, and</p></content></level><level class="para1" eId="schedule-5-paragraph-19-1-b"><num>(b)</num><content><p>that the conduct giving rise to that penalty is, in whole or in part, attributable to the dishonesty of a person who is, or at the material time was, a director or managing officer of the body corporate (a named officer),</p></content></level><wrapUp><p>the Commissioners may serve a notice under this paragraph on the body corporate and on the named officer.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-19-2"><num>(2)</num><intro><p>A notice under this paragraph shall state—</p></intro><level class="para1" eId="schedule-5-paragraph-19-2-a"><num>(a)</num><content><p>the amount of the penalty referred to in sub-paragraph (1)(a) above (the basic penalty), and</p></content></level><level class="para1" eId="schedule-5-paragraph-19-2-b"><num>(b)</num><content><p>that the Commissioners propose, in accordance with this paragraph, to recover from the named officer such portion (which may be the whole) of the basic penalty as is specified in the notice.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-19-3"><num>(3)</num><content><p>Where a notice is served under this paragraph, the portion of the basic penalty specified in the notice shall be recoverable from the named officer as if he were personally liable under paragraph 18 above to a penalty which corresponds to that portion; and the amount of that penalty may be assessed and notified to him accordingly under paragraph 32 below.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-19-4"><num>(4)</num><intro><p>Where a notice is served under this paragraph—</p></intro><level class="para1" eId="schedule-5-paragraph-19-4-a"><num>(a)</num><content><p>the amount which, under paragraph 32 below, may be assessed as the amount due by way of penalty from the body corporate shall be only so much (if any) of the basic penalty as is not assessed on and notified to a named officer by virtue of sub-paragraph (3) above, and</p></content></level><level class="para1" eId="schedule-5-paragraph-19-4-b"><num>(b)</num><content><p>the body corporate shall be treated as discharged from liability for so much of the basic penalty as is so assessed and notified.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-19-5"><num>(5)</num><intro><p>No appeal shall lie against a notice under this paragraph as such but—</p></intro><level class="para1" eId="schedule-5-paragraph-19-5-a"><num>(a)</num><content><p>where a body corporate is assessed as mentioned in sub-paragraph (4)(a) above, the body corporate may require a review of the Commissioners' decision as to its liability to a penalty and as to the amount of the basic penalty as if it were specified in the assessment;</p></content></level><level class="para1" eId="schedule-5-paragraph-19-5-b"><num>(b)</num><content><p>where an assessment is made on a named officer by virtue of sub-paragraph (3) above, the named officer may require a review of the Commissioners' decision that the conduct of the body corporate referred to in sub-paragraph (1)(b) above is, in whole or in part, attributable to his dishonesty and of their decision as to the portion of the penalty which the Commissioners propose to recover from him;</p></content></level><level class="para1" eId="schedule-5-paragraph-19-5-c"><num>(c)</num><content><p>sections 55 and 56 of this Act shall apply accordingly.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-19-6"><num>(6)</num><content><p>In this paragraph a “managing officer”, in relation to a body corporate, means any manager, secretary or other similar officer of the body corporate or any person purporting to act in any such capacity or as a director; and where the affairs of a body corporate are managed by its members, this paragraph shall apply in relation to the conduct of a member in connection with his functions of management as if he were a director of the body corporate.</p></content></subparagraph></paragraph>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="schedule-5-part-V-crossheading-misdeclaration-or-neglect"><heading>Misdeclaration or neglect</heading><paragraph eId="schedule-5-paragraph-20" class="schProv1"><num>20</num><subparagraph eId="schedule-5-paragraph-20-1"><num>(1)</num><intro><p>Where, for an accounting period—</p></intro><level class="para1" eId="schedule-5-paragraph-20-1-a"><num>(a)</num><content><p>a return is made which understates a person’s liability to tax or overstates his entitlement to credit, or</p></content></level><level class="para1" eId="schedule-5-paragraph-20-1-b"><num>(b)</num><content><p>an assessment is made which understates a person’s liability to tax and, at the end of the period of 30 days beginning on the date of the assessment, he has not taken all such steps as are reasonable to draw the understatement to the attention of the Commissioners,</p></content></level><wrapUp><p>the person concerned is liable, subject to sub-paragraphs (3) and (4) below, to a penalty equal to 5 per cent. of the amount of the understatement of liability or (as the case may be) overstatement of entitlement.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-20-2"><num>(2)</num><intro><p>Where—</p></intro><level class="para1" eId="schedule-5-paragraph-20-2-a"><num>(a)</num><content><p>a return for an accounting period overstates or understates to any extent a person’s liability to tax or his entitlement to credit, and</p></content></level><level class="para1" eId="schedule-5-paragraph-20-2-b"><num>(b)</num><content><p>that return is corrected, in such circumstances and in accordance with such conditions as may be prescribed by regulations, by a return for a later accounting period which understates or overstates, to the corresponding extent, that liability or entitlement,</p></content></level><wrapUp><p>it shall be assumed for the purposes of this paragraph that the statement made by each such return is a correct statement for the accounting period to which the return relates.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-20-3"><num>(3)</num><intro><p>Conduct falling within sub-paragraph (1) above shall not give rise to liability to a penalty under this paragraph if the person concerned furnishes full information with respect to the inaccuracy concerned to the Commissioners—</p></intro><level class="para1" eId="schedule-5-paragraph-20-3-a"><num>(a)</num><content><p>at a time when he has no reason to believe that enquiries are being made by the Commissioners into his affairs, so far as they relate to tax, and</p></content></level><level class="para1" eId="schedule-5-paragraph-20-3-b"><num>(b)</num><content><p>in such form and manner as may be prescribed by regulations or specified by the Commissioners in accordance with provision made by regulations.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-20-4"><num>(4)</num><intro><p>Where, by reason of conduct falling within sub-paragraph (1) above—</p></intro><level class="para1" eId="schedule-5-paragraph-20-4-a"><num>(a)</num><content><p>a person is convicted of an offence (whether under this Part of this Act or otherwise), or</p></content></level><level class="para1" eId="schedule-5-paragraph-20-4-b"><num>(b)</num><content><p>a person is assessed to a penalty under paragraph 18 above,</p></content></level><wrapUp><p>that conduct shall not also give rise to liability to a penalty under this paragraph.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-20-5"><num>(5)</num><content><p>In this paragraph “credit” means credit for which provision is made by regulations under section 51 of this Act.</p></content></subparagraph></paragraph></hcontainer>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-5-paragraph-20" class="schProv1"><num>20</num><subparagraph eId="schedule-5-paragraph-20-1"><num>(1)</num><intro><p>Where, for an accounting period—</p></intro><level class="para1" eId="schedule-5-paragraph-20-1-a"><num>(a)</num><content><p>a return is made which understates a person’s liability to tax or overstates his entitlement to credit, or</p></content></level><level class="para1" eId="schedule-5-paragraph-20-1-b"><num>(b)</num><content><p>an assessment is made which understates a person’s liability to tax and, at the end of the period of 30 days beginning on the date of the assessment, he has not taken all such steps as are reasonable to draw the understatement to the attention of the Commissioners,</p></content></level><wrapUp><p>the person concerned is liable, subject to sub-paragraphs (3) and (4) below, to a penalty equal to 5 per cent. of the amount of the understatement of liability or (as the case may be) overstatement of entitlement.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-20-2"><num>(2)</num><intro><p>Where—</p></intro><level class="para1" eId="schedule-5-paragraph-20-2-a"><num>(a)</num><content><p>a return for an accounting period overstates or understates to any extent a person’s liability to tax or his entitlement to credit, and</p></content></level><level class="para1" eId="schedule-5-paragraph-20-2-b"><num>(b)</num><content><p>that return is corrected, in such circumstances and in accordance with such conditions as may be prescribed by regulations, by a return for a later accounting period which understates or overstates, to the corresponding extent, that liability or entitlement,</p></content></level><wrapUp><p>it shall be assumed for the purposes of this paragraph that the statement made by each such return is a correct statement for the accounting period to which the return relates.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-20-3"><num>(3)</num><intro><p>Conduct falling within sub-paragraph (1) above shall not give rise to liability to a penalty under this paragraph if the person concerned furnishes full information with respect to the inaccuracy concerned to the Commissioners—</p></intro><level class="para1" eId="schedule-5-paragraph-20-3-a"><num>(a)</num><content><p>at a time when he has no reason to believe that enquiries are being made by the Commissioners into his affairs, so far as they relate to tax, and</p></content></level><level class="para1" eId="schedule-5-paragraph-20-3-b"><num>(b)</num><content><p>in such form and manner as may be prescribed by regulations or specified by the Commissioners in accordance with provision made by regulations.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-20-4"><num>(4)</num><intro><p>Where, by reason of conduct falling within sub-paragraph (1) above—</p></intro><level class="para1" eId="schedule-5-paragraph-20-4-a"><num>(a)</num><content><p>a person is convicted of an offence (whether under this Part of this Act or otherwise), or</p></content></level><level class="para1" eId="schedule-5-paragraph-20-4-b"><num>(b)</num><content><p>a person is assessed to a penalty under paragraph 18 above,</p></content></level><wrapUp><p>that conduct shall not also give rise to liability to a penalty under this paragraph.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-20-5"><num>(5)</num><content><p>In this paragraph “credit” means credit for which provision is made by regulations under section 51 of this Act.</p></content></subparagraph></paragraph>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="schedule-5-part-V-crossheading-registration"><heading>Registration</heading><paragraph eId="schedule-5-paragraph-21" class="schProv1"><num>21</num><subparagraph eId="schedule-5-paragraph-21-1"><num>(1)</num><content><p>A person who fails to comply with section 47(3) of this Act is liable to a penalty equal to 5 per cent. of the relevant tax or, if it is greater or the circumstances are such that there is no relevant tax, to a penalty of £250; but this is subject to sub-paragraph (4) below.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-21-2"><num>(2)</num><intro><p>In sub-paragraph (1) above “relevant tax” means the tax (if any) for which the person concerned is liable for the period which—</p></intro><level class="para1" eId="schedule-5-paragraph-21-2-a"><num>(a)</num><content><p>begins on the date with effect from which he is, in accordance with section 47 of this Act, required to be registered, and</p></content></level><level class="para1" eId="schedule-5-paragraph-21-2-b"><num>(b)</num><content><p>ends on the date on which the Commissioners received notification of, or otherwise became aware of, his liability to be registered.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-21-3"><num>(3)</num><content><p>A person who fails to comply with section 47(4) of this Act is liable to a penalty of £250.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-21-4"><num>(4)</num><intro><p>Where, by reason of conduct falling within sub-paragraph (1) above—</p></intro><level class="para1" eId="schedule-5-paragraph-21-4-a"><num>(a)</num><content><p>a person is convicted of an offence (whether under this Part of this Act or otherwise), or</p></content></level><level class="para1" eId="schedule-5-paragraph-21-4-b"><num>(b)</num><content><p>a person is assessed to a penalty under paragraph 18 above,</p></content></level><wrapUp><p>that conduct shall not also give rise to liability to a penalty under this paragraph.</p></wrapUp></subparagraph></paragraph></hcontainer>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-5-paragraph-21" class="schProv1"><num>21</num><subparagraph eId="schedule-5-paragraph-21-1"><num>(1)</num><content><p>A person who fails to comply with section 47(3) of this Act is liable to a penalty equal to 5 per cent. of the relevant tax or, if it is greater or the circumstances are such that there is no relevant tax, to a penalty of £250; but this is subject to sub-paragraph (4) below.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-21-2"><num>(2)</num><intro><p>In sub-paragraph (1) above “relevant tax” means the tax (if any) for which the person concerned is liable for the period which—</p></intro><level class="para1" eId="schedule-5-paragraph-21-2-a"><num>(a)</num><content><p>begins on the date with effect from which he is, in accordance with section 47 of this Act, required to be registered, and</p></content></level><level class="para1" eId="schedule-5-paragraph-21-2-b"><num>(b)</num><content><p>ends on the date on which the Commissioners received notification of, or otherwise became aware of, his liability to be registered.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-21-3"><num>(3)</num><content><p>A person who fails to comply with section 47(4) of this Act is liable to a penalty of £250.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-21-4"><num>(4)</num><intro><p>Where, by reason of conduct falling within sub-paragraph (1) above—</p></intro><level class="para1" eId="schedule-5-paragraph-21-4-a"><num>(a)</num><content><p>a person is convicted of an offence (whether under this Part of this Act or otherwise), or</p></content></level><level class="para1" eId="schedule-5-paragraph-21-4-b"><num>(b)</num><content><p>a person is assessed to a penalty under paragraph 18 above,</p></content></level><wrapUp><p>that conduct shall not also give rise to liability to a penalty under this paragraph.</p></wrapUp></subparagraph></paragraph>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="schedule-5-part-V-crossheading-information"><heading>Information</heading><paragraph eId="schedule-5-paragraph-22" class="schProv1"><num>22</num><subparagraph eId="schedule-5-paragraph-22-1"><num>(1)</num><intro><p>If a person—</p></intro><level class="para1" eId="schedule-5-paragraph-22-1-a"><num>(a)</num><content><p>fails to comply with any provision of paragraph 1 or 3 above, or</p></content></level><level class="para1" eId="schedule-5-paragraph-22-1-b"><num>(b)</num><content><p>fails to make records as required by any provision of regulations made under paragraph 2 above,</p></content></level><wrapUp><p>he is liable to a penalty of £250; but this is subject to sub-paragraph (4) below.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-22-2"><num>(2)</num><intro><p>Where—</p></intro><level class="para1" eId="schedule-5-paragraph-22-2-a"><num>(a)</num><content><p>a penalty (an initial penalty) is imposed on a person under sub-paragraph (1) above, and</p></content></level><level class="para1" eId="schedule-5-paragraph-22-2-b"><num>(b)</num><content><p>the failure which led to the initial penalty continues after its imposition,</p></content></level><wrapUp><p>he is (subject to sub-paragraph (4) below) liable to a further penalty of £20 for each day during which (or any part of which) the failure continues after the day on which the initial penalty was imposed.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-22-3"><num>(3)</num><content><p>A person who fails to preserve records in compliance with any provision of regulations made under paragraph 2 above (read with that paragraph and any direction given under the regulations) is liable to a penalty of £250; but this is subject to sub-paragraph (4) below.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-22-4"><num>(4)</num><intro><p>Where by reason of a failure falling within sub-paragraph (1) or (3) above—</p></intro><level class="para1" eId="schedule-5-paragraph-22-4-a"><num>(a)</num><content><p>a person is convicted of an offence (whether under this Part of this Act or otherwise), or</p></content></level><level class="para1" eId="schedule-5-paragraph-22-4-b"><num>(b)</num><content><p>a person is assessed to a penalty under paragraph 18 above,</p></content></level><wrapUp><p>that failure shall not also give rise to liability to a penalty under this paragraph.</p></wrapUp></subparagraph></paragraph></hcontainer>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-5-paragraph-22" class="schProv1"><num>22</num><subparagraph eId="schedule-5-paragraph-22-1"><num>(1)</num><intro><p>If a person—</p></intro><level class="para1" eId="schedule-5-paragraph-22-1-a"><num>(a)</num><content><p>fails to comply with any provision of paragraph 1 or 3 above, or</p></content></level><level class="para1" eId="schedule-5-paragraph-22-1-b"><num>(b)</num><content><p>fails to make records as required by any provision of regulations made under paragraph 2 above,</p></content></level><wrapUp><p>he is liable to a penalty of £250; but this is subject to sub-paragraph (4) below.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-22-2"><num>(2)</num><intro><p>Where—</p></intro><level class="para1" eId="schedule-5-paragraph-22-2-a"><num>(a)</num><content><p>a penalty (an initial penalty) is imposed on a person under sub-paragraph (1) above, and</p></content></level><level class="para1" eId="schedule-5-paragraph-22-2-b"><num>(b)</num><content><p>the failure which led to the initial penalty continues after its imposition,</p></content></level><wrapUp><p>he is (subject to sub-paragraph (4) below) liable to a further penalty of £20 for each day during which (or any part of which) the failure continues after the day on which the initial penalty was imposed.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-22-3"><num>(3)</num><content><p>A person who fails to preserve records in compliance with any provision of regulations made under paragraph 2 above (read with that paragraph and any direction given under the regulations) is liable to a penalty of £250; but this is subject to sub-paragraph (4) below.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-22-4"><num>(4)</num><intro><p>Where by reason of a failure falling within sub-paragraph (1) or (3) above—</p></intro><level class="para1" eId="schedule-5-paragraph-22-4-a"><num>(a)</num><content><p>a person is convicted of an offence (whether under this Part of this Act or otherwise), or</p></content></level><level class="para1" eId="schedule-5-paragraph-22-4-b"><num>(b)</num><content><p>a person is assessed to a penalty under paragraph 18 above,</p></content></level><wrapUp><p>that failure shall not also give rise to liability to a penalty under this paragraph.</p></wrapUp></subparagraph></paragraph>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="schedule-5-part-V-crossheading-breach-of-regulations"><heading>Breach of regulations</heading><paragraph eId="schedule-5-paragraph-23" class="schProv1"><num>23</num><subparagraph eId="schedule-5-paragraph-23-1"><num>(1)</num><content><p>Where regulations made under this Part of this Act impose a requirement on any person, they may provide that if the person fails to comply with the requirement he shall be liable to a penalty of £250; but this is subject to sub-paragraphs (2) and (3) below.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-23-2"><num>(2)</num><intro><p>Where by reason of any conduct—</p></intro><level class="para1" eId="schedule-5-paragraph-23-2-a"><num>(a)</num><content><p>a person is convicted of an offence (whether under this Part of this Act or otherwise), or</p></content></level><level class="para1" eId="schedule-5-paragraph-23-2-b"><num>(b)</num><content><p>a person is assessed to a penalty under paragraph 18 above,</p></content></level><wrapUp><p>that conduct shall not also give rise to liability to a penalty under the regulations.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-23-3"><num>(3)</num><content><p>Sub-paragraph (1) above does not apply to any failure mentioned in paragraph 22 above.</p></content></subparagraph></paragraph></hcontainer>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-5-paragraph-23" class="schProv1"><num>23</num><subparagraph eId="schedule-5-paragraph-23-1"><num>(1)</num><content><p>Where regulations made under this Part of this Act impose a requirement on any person, they may provide that if the person fails to comply with the requirement he shall be liable to a penalty of £250; but this is subject to sub-paragraphs (2) and (3) below.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-23-2"><num>(2)</num><intro><p>Where by reason of any conduct—</p></intro><level class="para1" eId="schedule-5-paragraph-23-2-a"><num>(a)</num><content><p>a person is convicted of an offence (whether under this Part of this Act or otherwise), or</p></content></level><level class="para1" eId="schedule-5-paragraph-23-2-b"><num>(b)</num><content><p>a person is assessed to a penalty under paragraph 18 above,</p></content></level><wrapUp><p>that conduct shall not also give rise to liability to a penalty under the regulations.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-23-3"><num>(3)</num><content><p>Sub-paragraph (1) above does not apply to any failure mentioned in paragraph 22 above.</p></content></subparagraph></paragraph>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="schedule-5-part-V-crossheading-walking-possession-agreements"><heading>Walking possession agreements</heading><paragraph eId="schedule-5-paragraph-24" class="schProv1"><num>24</num><subparagraph eId="schedule-5-paragraph-24-1"><num>(1)</num><intro><p>This paragraph applies where—</p></intro><level class="para1" eId="schedule-5-paragraph-24-1-a"><num>(a)</num><content><p>in accordance with regulations under paragraph 13(1) above a distress is authorised to be levied on the goods and chattels of a person (a person in default) who has refused or neglected to pay any tax due from him or any amount recoverable as if it were tax due from him, and</p></content></level><level class="para1" eId="schedule-5-paragraph-24-1-b"><num>(b)</num><content><p>the person levying the distress and the person in default have entered into a walking possession agreement.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-24-2"><num>(2)</num><intro><p>For the purposes of this paragraph a walking possession agreement is an agreement under which, in consideration of the property distrained upon being allowed to remain in the custody of the person in default and of the delaying of its sale, the person in default—</p></intro><level class="para1" eId="schedule-5-paragraph-24-2-a"><num>(a)</num><content><p>acknowledges that the property specified in the agreement is under distraint and held in walking possession, and</p></content></level><level class="para1" eId="schedule-5-paragraph-24-2-b"><num>(b)</num><content><p>undertakes that, except with the consent of the Commissioners and subject to such conditions as they may impose, he will not remove or allow the removal of any of the specified property from the premises named in the agreement.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-24-3"><num>(3)</num><content><p>If the person in default is in breach of the undertaking contained in a walking possession agreement, he is liable to a penalty equal to half of the tax or other amount referred to in sub-paragraph (1)(a) above.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-24-4"><num>(4)</num><content><p>This paragraph does not extend to Scotland.</p></content></subparagraph></paragraph></hcontainer>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-5-paragraph-24" class="schProv1"><num>24</num><subparagraph eId="schedule-5-paragraph-24-1"><num>(1)</num><intro><p>This paragraph applies where—</p></intro><level class="para1" eId="schedule-5-paragraph-24-1-a"><num>(a)</num><content><p>in accordance with regulations under paragraph 13(1) above a distress is authorised to be levied on the goods and chattels of a person (a person in default) who has refused or neglected to pay any tax due from him or any amount recoverable as if it were tax due from him, and</p></content></level><level class="para1" eId="schedule-5-paragraph-24-1-b"><num>(b)</num><content><p>the person levying the distress and the person in default have entered into a walking possession agreement.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-24-2"><num>(2)</num><intro><p>For the purposes of this paragraph a walking possession agreement is an agreement under which, in consideration of the property distrained upon being allowed to remain in the custody of the person in default and of the delaying of its sale, the person in default—</p></intro><level class="para1" eId="schedule-5-paragraph-24-2-a"><num>(a)</num><content><p>acknowledges that the property specified in the agreement is under distraint and held in walking possession, and</p></content></level><level class="para1" eId="schedule-5-paragraph-24-2-b"><num>(b)</num><content><p>undertakes that, except with the consent of the Commissioners and subject to such conditions as they may impose, he will not remove or allow the removal of any of the specified property from the premises named in the agreement.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-24-3"><num>(3)</num><content><p>If the person in default is in breach of the undertaking contained in a walking possession agreement, he is liable to a penalty equal to half of the tax or other amount referred to in sub-paragraph (1)(a) above.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-24-4"><num>(4)</num><content><p>This paragraph does not extend to Scotland.</p></content></subparagraph></paragraph>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="schedule-5-part-V-crossheading-mitigation-of-penalties"><heading>Mitigation of penalties</heading><paragraph eId="schedule-5-paragraph-25" class="schProv1"><num>25</num><subparagraph eId="schedule-5-paragraph-25-1"><num>(1)</num><content><p>Where a person is liable to a penalty under this Part of this Schedule the Commissioners or, on appeal, an appeal tribunal may reduce the penalty to such amount (including nil) as they think proper.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-25-2"><num>(2)</num><content><p>Where the person concerned satisfies the Commissioners or, on appeal, an appeal tribunal that there is a reasonable excuse for any breach, failure or other conduct, that is a factor which (among other things) may be taken into account under sub-paragraph (1) above.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-25-3"><num>(3)</num><content><p>In the case of a penalty reduced by the Commissioners under sub-paragraph (1) above an appeal tribunal, on an appeal relating to the penalty, may cancel the whole or any part of the reduction made by the Commissioners.</p></content></subparagraph></paragraph></hcontainer>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-5-paragraph-25" class="schProv1"><num>25</num><subparagraph eId="schedule-5-paragraph-25-1"><num>(1)</num><content><p>Where a person is liable to a penalty under this Part of this Schedule the Commissioners or, on appeal, an appeal tribunal may reduce the penalty to such amount (including nil) as they think proper.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-25-2"><num>(2)</num><content><p>Where the person concerned satisfies the Commissioners or, on appeal, an appeal tribunal that there is a reasonable excuse for any breach, failure or other conduct, that is a factor which (among other things) may be taken into account under sub-paragraph (1) above.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-25-3"><num>(3)</num><content><p>In the case of a penalty reduced by the Commissioners under sub-paragraph (1) above an appeal tribunal, on an appeal relating to the penalty, may cancel the whole or any part of the reduction made by the Commissioners.</p></content></subparagraph></paragraph>
<part xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-5-part-VI"><num>Part VI</num><heading>Interest</heading><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-5-part-VI-crossheading-interest-on-underdeclared-tax"><heading>Interest on under-declared tax</heading><paragraph eId="schedule-5-paragraph-26" class="schProv1"><num>26</num><subparagraph eId="schedule-5-paragraph-26-1"><num>(1)</num><intro><p>Sub-paragraph (2) below applies where—</p></intro><level class="para1" eId="schedule-5-paragraph-26-1-a"><num>(a)</num><content><p>under section 50(1) of this Act the Commissioners assess an amount of tax due from a registrable person for an accounting period and notify it to him, and</p></content></level><level class="para1" eId="schedule-5-paragraph-26-1-b"><num>(b)</num><content><p>the assessment is made on the basis that the amount (the additional amount) is due from him in addition to any amount shown in a return made in relation to the accounting period.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-26-2"><num>(2)</num><intro><p>The additional amount shall carry interest for the period which—</p></intro><level class="para1" eId="schedule-5-paragraph-26-2-a"><num>(a)</num><content><p>begins with the day after that on which the person is required by provision made under section 49 of this Act to pay tax due from him for the accounting period, and</p></content></level><level class="para1" eId="schedule-5-paragraph-26-2-b"><num>(b)</num><content><p>ends with the day before the relevant day.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-26-3"><num>(3)</num><intro><p>For the purposes of sub-paragraph (2) above the relevant day is the earlier of—</p></intro><level class="para1" eId="schedule-5-paragraph-26-3-a"><num>(a)</num><content><p>the day on which the assessment is notified to the person;</p></content></level><level class="para1" eId="schedule-5-paragraph-26-3-b"><num>(b)</num><content><p>the day on which the additional amount is paid.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-26-4"><num>(4)</num><content><p>Sub-paragraph (5) below applies where under section 50(2) of this Act the Commissioners assess an amount as being tax due from a registrable person for an accounting period and notify it to him.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-26-5"><num>(5)</num><intro><p>The amount shall carry interest for the period which—</p></intro><level class="para1" eId="schedule-5-paragraph-26-5-a"><num>(a)</num><content><p>begins with the day after that on which the person is required by provision made under section 49 of this Act to pay tax due from him for the accounting period, and</p></content></level><level class="para1" eId="schedule-5-paragraph-26-5-b"><num>(b)</num><content><p>ends with the day before the relevant day.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-26-6"><num>(6)</num><intro><p>For the purposes of sub-paragraph (5) above the relevant day is the earlier of—</p></intro><level class="para1" eId="schedule-5-paragraph-26-6-a"><num>(a)</num><content><p>the day on which the assessment is notified to the person;</p></content></level><level class="para1" eId="schedule-5-paragraph-26-6-b"><num>(b)</num><content><p>the day on which the amount is paid.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-26-7"><num>(7)</num><content><p>Interest under this paragraph shall be payable at the rate applicable under section 197 of this Act.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-26-8"><num>(8)</num><content><p>Interest under this paragraph shall be paid without any deduction of income tax.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-26-9"><num>(9)</num><intro><p>Sub-paragraph (10) below applies where—</p></intro><level class="para1" eId="schedule-5-paragraph-26-9-a"><num>(a)</num><content><p>an amount carries interest under this paragraph (or would do so apart from that sub-paragraph), and</p></content></level><level class="para1" eId="schedule-5-paragraph-26-9-b"><num>(b)</num><content><p>all or part of the amount turns out not to be due.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-26-10"><num>(10)</num><intro><p>In such a case—</p></intro><level class="para1" eId="schedule-5-paragraph-26-10-a"><num>(a)</num><content><p>the amount or part (as the case may be) shall not carry interest under this paragraph and shall be treated as never having done so, and</p></content></level><level class="para1" eId="schedule-5-paragraph-26-10-b"><num>(b)</num><content><p>all such adjustments as are reasonable shall be made, including adjustments by way of repayment by the Commissioners where appropriate.</p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-5-part-VI-crossheading-interest-on-unpaid-tax-etc"><heading>Interest on unpaid tax etc.</heading><paragraph eId="schedule-5-paragraph-27" class="schProv1"><num>27</num><subparagraph eId="schedule-5-paragraph-27-1"><num>(1)</num><intro><p>Sub-paragraph (2) below applies where—</p></intro><level class="para1" eId="schedule-5-paragraph-27-1-a"><num>(a)</num><content><p>a registrable person makes a return under provision made under section 49 of this Act (whether or not he makes it at the time required by such provision), and</p></content></level><level class="para1" eId="schedule-5-paragraph-27-1-b"><num>(b)</num><content><p>the return shows that an amount of tax is due from him for the accounting period in relation to which the return is made.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-27-2"><num>(2)</num><intro><p>The amount shall carry interest for the period which—</p></intro><level class="para1" eId="schedule-5-paragraph-27-2-a"><num>(a)</num><content><p>begins with the day after that on which the person is required by provision made under section 49 of this Act to pay tax due from him for the accounting period, and</p></content></level><level class="para1" eId="schedule-5-paragraph-27-2-b"><num>(b)</num><content><p>ends with the day before that on which the amount is paid.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-27-3"><num>(3)</num><intro><p>Sub-paragraph (4) below applies where—</p></intro><level class="para1" eId="schedule-5-paragraph-27-3-a"><num>(a)</num><content><p>under section 50(1) of this Act the Commissioners assess an amount of tax due from a registrable person for an accounting period and notify it to him, and</p></content></level><level class="para1" eId="schedule-5-paragraph-27-3-b"><num>(b)</num><content><p>the assessment is made on the basis that no return required by provision made under section 49 of this Act has been made by the person in relation to the accounting period.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-27-4"><num>(4)</num><intro><p>The amount shall carry interest for the period which—</p></intro><level class="para1" eId="schedule-5-paragraph-27-4-a"><num>(a)</num><content><p>begins with the day after that on which the person is required by provision made under section 49 of this Act to pay tax due from him for the accounting period, and</p></content></level><level class="para1" eId="schedule-5-paragraph-27-4-b"><num>(b)</num><content><p>ends with the day before that on which the amount is paid.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-27-5"><num>(5)</num><intro><p>Sub-paragraph (6) below applies where—</p></intro><level class="para1" eId="schedule-5-paragraph-27-5-a"><num>(a)</num><content><p>under section 50(1) of this Act the Commissioners assess an amount of tax due from a registrable person for an accounting period and notify it to him, and</p></content></level><level class="para1" eId="schedule-5-paragraph-27-5-b"><num>(b)</num><content><p>the assessment (the supplementary assessment) is made on the basis that the amount (the additional amount) is due from him in addition to any amount shown in a return, or in any previous assessment, made in relation to the accounting period.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-27-6"><num>(6)</num><intro><p>The additional amount shall carry interest for the period which—</p></intro><level class="para1" eId="schedule-5-paragraph-27-6-a"><num>(a)</num><content><p>begins with the day on which the supplementary assessment is notified to the person, and</p></content></level><level class="para1" eId="schedule-5-paragraph-27-6-b"><num>(b)</num><content><p>ends with the day before that on which the additional amount is paid.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-27-7"><num>(7)</num><content><p>Sub-paragraph (8) below applies where under section 50(2) of this Act the Commissioners assess an amount as being tax due from a registrable person for an accounting period and notify it to him.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-27-8"><num>(8)</num><intro><p>The amount shall carry interest for the period which—</p></intro><level class="para1" eId="schedule-5-paragraph-27-8-a"><num>(a)</num><content><p>begins with the day on which the assessment is notified to the person, and</p></content></level><level class="para1" eId="schedule-5-paragraph-27-8-b"><num>(b)</num><content><p>ends with the day before that on which the amount is paid.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-27-9"><num>(9)</num><intro><p>Sub-paragraph (10) below applies where under paragraph 32 below the Commissioners—</p></intro><level class="para1" eId="schedule-5-paragraph-27-9-a"><num>(a)</num><content><p>assess an amount due from a person by way of penalty under Part V of this Schedule and notify it to him, or</p></content></level><level class="para1" eId="schedule-5-paragraph-27-9-b"><num>(b)</num><content><p>assess an amount due from a person by way of interest under paragraph 26 above and notify it to him.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-27-10"><num>(10)</num><intro><p>The amount shall carry interest for the period which—</p></intro><level class="para1" eId="schedule-5-paragraph-27-10-a"><num>(a)</num><content><p>begins with the day on which the assessment is notified to the person, and</p></content></level><level class="para1" eId="schedule-5-paragraph-27-10-b"><num>(b)</num><content><p>ends with the day before that on which the amount is paid.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-27-11"><num>(11)</num><intro><p>Interest under this paragraph shall be compound interest calculated—</p></intro><level class="para1" eId="schedule-5-paragraph-27-11-a"><num>(a)</num><content><p>at the penalty rate, and</p></content></level><level class="para1" eId="schedule-5-paragraph-27-11-b"><num>(b)</num><content><p>with monthly rests;</p></content></level><wrapUp><p>and the penalty rate is the rate found by taking the rate at which interest is payable under paragraph 26 above and adding 10 percentage points to that rate.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-27-12"><num>(12)</num><content><p>Interest under this paragraph shall be paid without any deduction of income tax.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-27-13"><num>(13)</num><intro><p>Where—</p></intro><level class="para1" eId="schedule-5-paragraph-27-13-a"><num>(a)</num><content><p>the Commissioners assess and notify an amount as mentioned in sub-paragraph (5)(a) or (7) or (9)(a) or (b) above,</p></content></level><level class="para1" eId="schedule-5-paragraph-27-13-b"><num>(b)</num><content><p>they also specify a date for the purposes of this sub-paragraph, and</p></content></level><level class="para1" eId="schedule-5-paragraph-27-13-c"><num>(c)</num><content><p>the amount concerned is paid on or before that date,</p></content></level><wrapUp><p>the amount shall not carry interest by virtue of sub-paragraph (6) or (8) or (10) above (as the case may be).</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-27-14"><num>(14)</num><intro><p>Sub-paragraph (15) below applies where—</p></intro><level class="para1" eId="schedule-5-paragraph-27-14-a"><num>(a)</num><content><p>an amount carries interest under this paragraph (or would do so apart from that sub-paragraph), and</p></content></level><level class="para1" eId="schedule-5-paragraph-27-14-b"><num>(b)</num><content><p>all or part of the amount turns out not to be due.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-27-15"><num>(15)</num><intro><p>In such a case—</p></intro><level class="para1" eId="schedule-5-paragraph-27-15-a"><num>(a)</num><content><p>the amount or part (as the case may be) shall not carry interest under this paragraph and shall be treated as never having done so, and</p></content></level><level class="para1" eId="schedule-5-paragraph-27-15-b"><num>(b)</num><content><p>all such adjustments as are reasonable shall be made, including adjustments by way of repayment by the Commissioners where appropriate.</p></content></level></subparagraph></paragraph><paragraph eId="schedule-5-paragraph-28" class="schProv1"><num>28</num><subparagraph eId="schedule-5-paragraph-28-1"><num>(1)</num><content><p>Where a person is liable to pay interest under paragraph 27 above the Commissioners or, on appeal, an appeal tribunal may reduce the amount payable to such amount (including nil) as they think proper.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-28-2"><num>(2)</num><content><p>Where the person concerned satisfies the Commissioners or, on appeal, an appeal tribunal that there is a reasonable excuse for the conduct giving rise to the liability to pay interest, that is a factor which (among other things) may be taken into account under sub-paragraph (1) above.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-28-3"><num>(3)</num><content><p>In the case of interest reduced by the Commissioners under sub-paragraph (1) above an appeal tribunal, on an appeal relating to the interest, may cancel the whole or any part of the reduction made by the Commissioners.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-5-part-VI-crossheading-interest-payable-by-commissioners"><heading>Interest payable by Commissioners</heading><paragraph eId="schedule-5-paragraph-29" class="schProv1"><num>29</num><subparagraph eId="schedule-5-paragraph-29-1"><num>(1)</num><intro><p>Where, due to an error on the part of the Commissioners, a person—</p></intro><level class="para1" eId="schedule-5-paragraph-29-1-a"><num>(a)</num><content><p>has paid to them by way of tax an amount which was not tax due and which they are in consequence liable to repay to him,</p></content></level><level class="para1" eId="schedule-5-paragraph-29-1-b"><num>(b)</num><content><p>has failed to claim payment of an amount to the payment of which he was entitled in pursuance of provision made under section 51(2)(c) or (d) or (f) of this Act, or</p></content></level><level class="para1" eId="schedule-5-paragraph-29-1-c"><num>(c)</num><content><p>has suffered delay in receiving payment of an amount due to him from them in connection with tax,</p></content></level><wrapUp><p>then, if and to the extent that they would not be liable to do so apart from this paragraph, they shall (subject to the following provisions of this paragraph) pay interest to him on that amount for the applicable period.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-29-2"><num>(2)</num><intro><p>The applicable period, in a case falling within sub-paragraph (1)(a) above, is the period—</p></intro><level class="para1" eId="schedule-5-paragraph-29-2-a"><num>(a)</num><content><p>beginning with the date on which the payment is received by the Commissioners, and</p></content></level><level class="para1" eId="schedule-5-paragraph-29-2-b"><num>(b)</num><content><p>ending with the date on which they authorise payment of the amount on which the interest is payable.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-29-3"><num>(3)</num><intro><p>The applicable period, in a case falling within sub-paragraph (1)(b) or (c) above, is the period—</p></intro><level class="para1" eId="schedule-5-paragraph-29-3-a"><num>(a)</num><content><p>beginning with the date on which, apart from the error, the Commissioners might reasonably have been expected to authorise payment of the amount on which the interest is payable, and</p></content></level><level class="para1" eId="schedule-5-paragraph-29-3-b"><num>(b)</num><content><p>ending with the date on which they in fact authorise payment of that amount.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-29-4"><num>(4)</num><content><p>In determining the applicable period for the purposes of this paragraph, there shall be left out of account any period referable to the raising and answering of any reasonable enquiry relating to any matter giving rise to, or otherwise connected with, the person’s entitlement to interest under this paragraph.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-29-5"><num>(5)</num><intro><p>In determining for the purposes of sub-paragraph (4) above whether any period is referable to the raising and answering of such an enquiry as is there mentioned, there shall be taken to be so referable any period which begins with the date on which the Commissioners first consider it necessary to make such an enquiry and ends with the date on which the Commissioners—</p></intro><level class="para1" eId="schedule-5-paragraph-29-5-a"><num>(a)</num><content><p>satisfy themselves that they have received a complete answer to the enquiry, or</p></content></level><level class="para1" eId="schedule-5-paragraph-29-5-b"><num>(b)</num><content><p>determine not to make the enquiry or (if they have made it) not to pursue it further;</p></content></level><wrapUp><p>but excluding so much of that period as may be prescribed by regulations.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-29-6"><num>(6)</num><intro><p>For the purposes of sub-paragraph (5) above it is immaterial—</p></intro><level class="para1" eId="schedule-5-paragraph-29-6-a"><num>(a)</num><content><p>whether any enquiry is in fact made;</p></content></level><level class="para1" eId="schedule-5-paragraph-29-6-b"><num>(b)</num><content><p>whether any enquiry is or might have been made of the person referred to in sub-paragraph (1) above or of an authorised person or of some other person.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-29-7"><num>(7)</num><content><p>The Commissioners shall only be liable to pay interest under this paragraph on a claim made in writing for that purpose.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-29-8"><num>(8)</num><content><p>No claim shall be made under this paragraph after the expiry of six years from the date on which the claimant discovered the error or could with reasonable diligence have discovered it.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-29-9"><num>(9)</num><content><p>Any reference in this paragraph to receiving a payment from the Commissioners includes a reference to the discharge, by way of set-off, of their liability to make it.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-29-10"><num>(10)</num><content><p>Interest under this paragraph shall be payable at the rate applicable under section 197 of this Act.</p></content></subparagraph></paragraph><paragraph eId="schedule-5-paragraph-30" class="schProv1"><num>30</num><subparagraph eId="schedule-5-paragraph-30-1"><num>(1)</num><intro><p>Where—</p></intro><level class="para1" eId="schedule-5-paragraph-30-1-a"><num>(a)</num><content><p>any interest is payable by the Commissioners to a person on a sum due to him under this Part of this Act, and</p></content></level><level class="para1" eId="schedule-5-paragraph-30-1-b"><num>(b)</num><content><p>he is a person to whom regulations under section 51 of this Act apply,</p></content></level><wrapUp><p>the interest shall be treated as an amount to which he is entitled by way of credit in pursuance of the regulations.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-30-2"><num>(2)</num><content><p>Sub-paragraph (1) above shall be disregarded for the purpose of determining a person’s entitlement to interest or the amount of interest to which he is entitled.</p></content></subparagraph></paragraph></hcontainer></part>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="schedule-5-part-VI-crossheading-interest-on-underdeclared-tax"><heading>Interest on under-declared tax</heading><paragraph eId="schedule-5-paragraph-26" class="schProv1"><num>26</num><subparagraph eId="schedule-5-paragraph-26-1"><num>(1)</num><intro><p>Sub-paragraph (2) below applies where—</p></intro><level class="para1" eId="schedule-5-paragraph-26-1-a"><num>(a)</num><content><p>under section 50(1) of this Act the Commissioners assess an amount of tax due from a registrable person for an accounting period and notify it to him, and</p></content></level><level class="para1" eId="schedule-5-paragraph-26-1-b"><num>(b)</num><content><p>the assessment is made on the basis that the amount (the additional amount) is due from him in addition to any amount shown in a return made in relation to the accounting period.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-26-2"><num>(2)</num><intro><p>The additional amount shall carry interest for the period which—</p></intro><level class="para1" eId="schedule-5-paragraph-26-2-a"><num>(a)</num><content><p>begins with the day after that on which the person is required by provision made under section 49 of this Act to pay tax due from him for the accounting period, and</p></content></level><level class="para1" eId="schedule-5-paragraph-26-2-b"><num>(b)</num><content><p>ends with the day before the relevant day.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-26-3"><num>(3)</num><intro><p>For the purposes of sub-paragraph (2) above the relevant day is the earlier of—</p></intro><level class="para1" eId="schedule-5-paragraph-26-3-a"><num>(a)</num><content><p>the day on which the assessment is notified to the person;</p></content></level><level class="para1" eId="schedule-5-paragraph-26-3-b"><num>(b)</num><content><p>the day on which the additional amount is paid.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-26-4"><num>(4)</num><content><p>Sub-paragraph (5) below applies where under section 50(2) of this Act the Commissioners assess an amount as being tax due from a registrable person for an accounting period and notify it to him.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-26-5"><num>(5)</num><intro><p>The amount shall carry interest for the period which—</p></intro><level class="para1" eId="schedule-5-paragraph-26-5-a"><num>(a)</num><content><p>begins with the day after that on which the person is required by provision made under section 49 of this Act to pay tax due from him for the accounting period, and</p></content></level><level class="para1" eId="schedule-5-paragraph-26-5-b"><num>(b)</num><content><p>ends with the day before the relevant day.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-26-6"><num>(6)</num><intro><p>For the purposes of sub-paragraph (5) above the relevant day is the earlier of—</p></intro><level class="para1" eId="schedule-5-paragraph-26-6-a"><num>(a)</num><content><p>the day on which the assessment is notified to the person;</p></content></level><level class="para1" eId="schedule-5-paragraph-26-6-b"><num>(b)</num><content><p>the day on which the amount is paid.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-26-7"><num>(7)</num><content><p>Interest under this paragraph shall be payable at the rate applicable under section 197 of this Act.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-26-8"><num>(8)</num><content><p>Interest under this paragraph shall be paid without any deduction of income tax.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-26-9"><num>(9)</num><intro><p>Sub-paragraph (10) below applies where—</p></intro><level class="para1" eId="schedule-5-paragraph-26-9-a"><num>(a)</num><content><p>an amount carries interest under this paragraph (or would do so apart from that sub-paragraph), and</p></content></level><level class="para1" eId="schedule-5-paragraph-26-9-b"><num>(b)</num><content><p>all or part of the amount turns out not to be due.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-26-10"><num>(10)</num><intro><p>In such a case—</p></intro><level class="para1" eId="schedule-5-paragraph-26-10-a"><num>(a)</num><content><p>the amount or part (as the case may be) shall not carry interest under this paragraph and shall be treated as never having done so, and</p></content></level><level class="para1" eId="schedule-5-paragraph-26-10-b"><num>(b)</num><content><p>all such adjustments as are reasonable shall be made, including adjustments by way of repayment by the Commissioners where appropriate.</p></content></level></subparagraph></paragraph></hcontainer>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-5-paragraph-26" class="schProv1"><num>26</num><subparagraph eId="schedule-5-paragraph-26-1"><num>(1)</num><intro><p>Sub-paragraph (2) below applies where—</p></intro><level class="para1" eId="schedule-5-paragraph-26-1-a"><num>(a)</num><content><p>under section 50(1) of this Act the Commissioners assess an amount of tax due from a registrable person for an accounting period and notify it to him, and</p></content></level><level class="para1" eId="schedule-5-paragraph-26-1-b"><num>(b)</num><content><p>the assessment is made on the basis that the amount (the additional amount) is due from him in addition to any amount shown in a return made in relation to the accounting period.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-26-2"><num>(2)</num><intro><p>The additional amount shall carry interest for the period which—</p></intro><level class="para1" eId="schedule-5-paragraph-26-2-a"><num>(a)</num><content><p>begins with the day after that on which the person is required by provision made under section 49 of this Act to pay tax due from him for the accounting period, and</p></content></level><level class="para1" eId="schedule-5-paragraph-26-2-b"><num>(b)</num><content><p>ends with the day before the relevant day.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-26-3"><num>(3)</num><intro><p>For the purposes of sub-paragraph (2) above the relevant day is the earlier of—</p></intro><level class="para1" eId="schedule-5-paragraph-26-3-a"><num>(a)</num><content><p>the day on which the assessment is notified to the person;</p></content></level><level class="para1" eId="schedule-5-paragraph-26-3-b"><num>(b)</num><content><p>the day on which the additional amount is paid.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-26-4"><num>(4)</num><content><p>Sub-paragraph (5) below applies where under section 50(2) of this Act the Commissioners assess an amount as being tax due from a registrable person for an accounting period and notify it to him.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-26-5"><num>(5)</num><intro><p>The amount shall carry interest for the period which—</p></intro><level class="para1" eId="schedule-5-paragraph-26-5-a"><num>(a)</num><content><p>begins with the day after that on which the person is required by provision made under section 49 of this Act to pay tax due from him for the accounting period, and</p></content></level><level class="para1" eId="schedule-5-paragraph-26-5-b"><num>(b)</num><content><p>ends with the day before the relevant day.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-26-6"><num>(6)</num><intro><p>For the purposes of sub-paragraph (5) above the relevant day is the earlier of—</p></intro><level class="para1" eId="schedule-5-paragraph-26-6-a"><num>(a)</num><content><p>the day on which the assessment is notified to the person;</p></content></level><level class="para1" eId="schedule-5-paragraph-26-6-b"><num>(b)</num><content><p>the day on which the amount is paid.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-26-7"><num>(7)</num><content><p>Interest under this paragraph shall be payable at the rate applicable under section 197 of this Act.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-26-8"><num>(8)</num><content><p>Interest under this paragraph shall be paid without any deduction of income tax.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-26-9"><num>(9)</num><intro><p>Sub-paragraph (10) below applies where—</p></intro><level class="para1" eId="schedule-5-paragraph-26-9-a"><num>(a)</num><content><p>an amount carries interest under this paragraph (or would do so apart from that sub-paragraph), and</p></content></level><level class="para1" eId="schedule-5-paragraph-26-9-b"><num>(b)</num><content><p>all or part of the amount turns out not to be due.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-26-10"><num>(10)</num><intro><p>In such a case—</p></intro><level class="para1" eId="schedule-5-paragraph-26-10-a"><num>(a)</num><content><p>the amount or part (as the case may be) shall not carry interest under this paragraph and shall be treated as never having done so, and</p></content></level><level class="para1" eId="schedule-5-paragraph-26-10-b"><num>(b)</num><content><p>all such adjustments as are reasonable shall be made, including adjustments by way of repayment by the Commissioners where appropriate.</p></content></level></subparagraph></paragraph>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="schedule-5-part-VI-crossheading-interest-on-unpaid-tax-etc"><heading>Interest on unpaid tax etc.</heading><paragraph eId="schedule-5-paragraph-27" class="schProv1"><num>27</num><subparagraph eId="schedule-5-paragraph-27-1"><num>(1)</num><intro><p>Sub-paragraph (2) below applies where—</p></intro><level class="para1" eId="schedule-5-paragraph-27-1-a"><num>(a)</num><content><p>a registrable person makes a return under provision made under section 49 of this Act (whether or not he makes it at the time required by such provision), and</p></content></level><level class="para1" eId="schedule-5-paragraph-27-1-b"><num>(b)</num><content><p>the return shows that an amount of tax is due from him for the accounting period in relation to which the return is made.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-27-2"><num>(2)</num><intro><p>The amount shall carry interest for the period which—</p></intro><level class="para1" eId="schedule-5-paragraph-27-2-a"><num>(a)</num><content><p>begins with the day after that on which the person is required by provision made under section 49 of this Act to pay tax due from him for the accounting period, and</p></content></level><level class="para1" eId="schedule-5-paragraph-27-2-b"><num>(b)</num><content><p>ends with the day before that on which the amount is paid.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-27-3"><num>(3)</num><intro><p>Sub-paragraph (4) below applies where—</p></intro><level class="para1" eId="schedule-5-paragraph-27-3-a"><num>(a)</num><content><p>under section 50(1) of this Act the Commissioners assess an amount of tax due from a registrable person for an accounting period and notify it to him, and</p></content></level><level class="para1" eId="schedule-5-paragraph-27-3-b"><num>(b)</num><content><p>the assessment is made on the basis that no return required by provision made under section 49 of this Act has been made by the person in relation to the accounting period.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-27-4"><num>(4)</num><intro><p>The amount shall carry interest for the period which—</p></intro><level class="para1" eId="schedule-5-paragraph-27-4-a"><num>(a)</num><content><p>begins with the day after that on which the person is required by provision made under section 49 of this Act to pay tax due from him for the accounting period, and</p></content></level><level class="para1" eId="schedule-5-paragraph-27-4-b"><num>(b)</num><content><p>ends with the day before that on which the amount is paid.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-27-5"><num>(5)</num><intro><p>Sub-paragraph (6) below applies where—</p></intro><level class="para1" eId="schedule-5-paragraph-27-5-a"><num>(a)</num><content><p>under section 50(1) of this Act the Commissioners assess an amount of tax due from a registrable person for an accounting period and notify it to him, and</p></content></level><level class="para1" eId="schedule-5-paragraph-27-5-b"><num>(b)</num><content><p>the assessment (the supplementary assessment) is made on the basis that the amount (the additional amount) is due from him in addition to any amount shown in a return, or in any previous assessment, made in relation to the accounting period.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-27-6"><num>(6)</num><intro><p>The additional amount shall carry interest for the period which—</p></intro><level class="para1" eId="schedule-5-paragraph-27-6-a"><num>(a)</num><content><p>begins with the day on which the supplementary assessment is notified to the person, and</p></content></level><level class="para1" eId="schedule-5-paragraph-27-6-b"><num>(b)</num><content><p>ends with the day before that on which the additional amount is paid.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-27-7"><num>(7)</num><content><p>Sub-paragraph (8) below applies where under section 50(2) of this Act the Commissioners assess an amount as being tax due from a registrable person for an accounting period and notify it to him.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-27-8"><num>(8)</num><intro><p>The amount shall carry interest for the period which—</p></intro><level class="para1" eId="schedule-5-paragraph-27-8-a"><num>(a)</num><content><p>begins with the day on which the assessment is notified to the person, and</p></content></level><level class="para1" eId="schedule-5-paragraph-27-8-b"><num>(b)</num><content><p>ends with the day before that on which the amount is paid.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-27-9"><num>(9)</num><intro><p>Sub-paragraph (10) below applies where under paragraph 32 below the Commissioners—</p></intro><level class="para1" eId="schedule-5-paragraph-27-9-a"><num>(a)</num><content><p>assess an amount due from a person by way of penalty under Part V of this Schedule and notify it to him, or</p></content></level><level class="para1" eId="schedule-5-paragraph-27-9-b"><num>(b)</num><content><p>assess an amount due from a person by way of interest under paragraph 26 above and notify it to him.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-27-10"><num>(10)</num><intro><p>The amount shall carry interest for the period which—</p></intro><level class="para1" eId="schedule-5-paragraph-27-10-a"><num>(a)</num><content><p>begins with the day on which the assessment is notified to the person, and</p></content></level><level class="para1" eId="schedule-5-paragraph-27-10-b"><num>(b)</num><content><p>ends with the day before that on which the amount is paid.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-27-11"><num>(11)</num><intro><p>Interest under this paragraph shall be compound interest calculated—</p></intro><level class="para1" eId="schedule-5-paragraph-27-11-a"><num>(a)</num><content><p>at the penalty rate, and</p></content></level><level class="para1" eId="schedule-5-paragraph-27-11-b"><num>(b)</num><content><p>with monthly rests;</p></content></level><wrapUp><p>and the penalty rate is the rate found by taking the rate at which interest is payable under paragraph 26 above and adding 10 percentage points to that rate.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-27-12"><num>(12)</num><content><p>Interest under this paragraph shall be paid without any deduction of income tax.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-27-13"><num>(13)</num><intro><p>Where—</p></intro><level class="para1" eId="schedule-5-paragraph-27-13-a"><num>(a)</num><content><p>the Commissioners assess and notify an amount as mentioned in sub-paragraph (5)(a) or (7) or (9)(a) or (b) above,</p></content></level><level class="para1" eId="schedule-5-paragraph-27-13-b"><num>(b)</num><content><p>they also specify a date for the purposes of this sub-paragraph, and</p></content></level><level class="para1" eId="schedule-5-paragraph-27-13-c"><num>(c)</num><content><p>the amount concerned is paid on or before that date,</p></content></level><wrapUp><p>the amount shall not carry interest by virtue of sub-paragraph (6) or (8) or (10) above (as the case may be).</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-27-14"><num>(14)</num><intro><p>Sub-paragraph (15) below applies where—</p></intro><level class="para1" eId="schedule-5-paragraph-27-14-a"><num>(a)</num><content><p>an amount carries interest under this paragraph (or would do so apart from that sub-paragraph), and</p></content></level><level class="para1" eId="schedule-5-paragraph-27-14-b"><num>(b)</num><content><p>all or part of the amount turns out not to be due.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-27-15"><num>(15)</num><intro><p>In such a case—</p></intro><level class="para1" eId="schedule-5-paragraph-27-15-a"><num>(a)</num><content><p>the amount or part (as the case may be) shall not carry interest under this paragraph and shall be treated as never having done so, and</p></content></level><level class="para1" eId="schedule-5-paragraph-27-15-b"><num>(b)</num><content><p>all such adjustments as are reasonable shall be made, including adjustments by way of repayment by the Commissioners where appropriate.</p></content></level></subparagraph></paragraph><paragraph eId="schedule-5-paragraph-28" class="schProv1"><num>28</num><subparagraph eId="schedule-5-paragraph-28-1"><num>(1)</num><content><p>Where a person is liable to pay interest under paragraph 27 above the Commissioners or, on appeal, an appeal tribunal may reduce the amount payable to such amount (including nil) as they think proper.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-28-2"><num>(2)</num><content><p>Where the person concerned satisfies the Commissioners or, on appeal, an appeal tribunal that there is a reasonable excuse for the conduct giving rise to the liability to pay interest, that is a factor which (among other things) may be taken into account under sub-paragraph (1) above.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-28-3"><num>(3)</num><content><p>In the case of interest reduced by the Commissioners under sub-paragraph (1) above an appeal tribunal, on an appeal relating to the interest, may cancel the whole or any part of the reduction made by the Commissioners.</p></content></subparagraph></paragraph></hcontainer>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-5-paragraph-27" class="schProv1"><num>27</num><subparagraph eId="schedule-5-paragraph-27-1"><num>(1)</num><intro><p>Sub-paragraph (2) below applies where—</p></intro><level class="para1" eId="schedule-5-paragraph-27-1-a"><num>(a)</num><content><p>a registrable person makes a return under provision made under section 49 of this Act (whether or not he makes it at the time required by such provision), and</p></content></level><level class="para1" eId="schedule-5-paragraph-27-1-b"><num>(b)</num><content><p>the return shows that an amount of tax is due from him for the accounting period in relation to which the return is made.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-27-2"><num>(2)</num><intro><p>The amount shall carry interest for the period which—</p></intro><level class="para1" eId="schedule-5-paragraph-27-2-a"><num>(a)</num><content><p>begins with the day after that on which the person is required by provision made under section 49 of this Act to pay tax due from him for the accounting period, and</p></content></level><level class="para1" eId="schedule-5-paragraph-27-2-b"><num>(b)</num><content><p>ends with the day before that on which the amount is paid.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-27-3"><num>(3)</num><intro><p>Sub-paragraph (4) below applies where—</p></intro><level class="para1" eId="schedule-5-paragraph-27-3-a"><num>(a)</num><content><p>under section 50(1) of this Act the Commissioners assess an amount of tax due from a registrable person for an accounting period and notify it to him, and</p></content></level><level class="para1" eId="schedule-5-paragraph-27-3-b"><num>(b)</num><content><p>the assessment is made on the basis that no return required by provision made under section 49 of this Act has been made by the person in relation to the accounting period.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-27-4"><num>(4)</num><intro><p>The amount shall carry interest for the period which—</p></intro><level class="para1" eId="schedule-5-paragraph-27-4-a"><num>(a)</num><content><p>begins with the day after that on which the person is required by provision made under section 49 of this Act to pay tax due from him for the accounting period, and</p></content></level><level class="para1" eId="schedule-5-paragraph-27-4-b"><num>(b)</num><content><p>ends with the day before that on which the amount is paid.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-27-5"><num>(5)</num><intro><p>Sub-paragraph (6) below applies where—</p></intro><level class="para1" eId="schedule-5-paragraph-27-5-a"><num>(a)</num><content><p>under section 50(1) of this Act the Commissioners assess an amount of tax due from a registrable person for an accounting period and notify it to him, and</p></content></level><level class="para1" eId="schedule-5-paragraph-27-5-b"><num>(b)</num><content><p>the assessment (the supplementary assessment) is made on the basis that the amount (the additional amount) is due from him in addition to any amount shown in a return, or in any previous assessment, made in relation to the accounting period.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-27-6"><num>(6)</num><intro><p>The additional amount shall carry interest for the period which—</p></intro><level class="para1" eId="schedule-5-paragraph-27-6-a"><num>(a)</num><content><p>begins with the day on which the supplementary assessment is notified to the person, and</p></content></level><level class="para1" eId="schedule-5-paragraph-27-6-b"><num>(b)</num><content><p>ends with the day before that on which the additional amount is paid.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-27-7"><num>(7)</num><content><p>Sub-paragraph (8) below applies where under section 50(2) of this Act the Commissioners assess an amount as being tax due from a registrable person for an accounting period and notify it to him.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-27-8"><num>(8)</num><intro><p>The amount shall carry interest for the period which—</p></intro><level class="para1" eId="schedule-5-paragraph-27-8-a"><num>(a)</num><content><p>begins with the day on which the assessment is notified to the person, and</p></content></level><level class="para1" eId="schedule-5-paragraph-27-8-b"><num>(b)</num><content><p>ends with the day before that on which the amount is paid.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-27-9"><num>(9)</num><intro><p>Sub-paragraph (10) below applies where under paragraph 32 below the Commissioners—</p></intro><level class="para1" eId="schedule-5-paragraph-27-9-a"><num>(a)</num><content><p>assess an amount due from a person by way of penalty under Part V of this Schedule and notify it to him, or</p></content></level><level class="para1" eId="schedule-5-paragraph-27-9-b"><num>(b)</num><content><p>assess an amount due from a person by way of interest under paragraph 26 above and notify it to him.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-27-10"><num>(10)</num><intro><p>The amount shall carry interest for the period which—</p></intro><level class="para1" eId="schedule-5-paragraph-27-10-a"><num>(a)</num><content><p>begins with the day on which the assessment is notified to the person, and</p></content></level><level class="para1" eId="schedule-5-paragraph-27-10-b"><num>(b)</num><content><p>ends with the day before that on which the amount is paid.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-27-11"><num>(11)</num><intro><p>Interest under this paragraph shall be compound interest calculated—</p></intro><level class="para1" eId="schedule-5-paragraph-27-11-a"><num>(a)</num><content><p>at the penalty rate, and</p></content></level><level class="para1" eId="schedule-5-paragraph-27-11-b"><num>(b)</num><content><p>with monthly rests;</p></content></level><wrapUp><p>and the penalty rate is the rate found by taking the rate at which interest is payable under paragraph 26 above and adding 10 percentage points to that rate.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-27-12"><num>(12)</num><content><p>Interest under this paragraph shall be paid without any deduction of income tax.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-27-13"><num>(13)</num><intro><p>Where—</p></intro><level class="para1" eId="schedule-5-paragraph-27-13-a"><num>(a)</num><content><p>the Commissioners assess and notify an amount as mentioned in sub-paragraph (5)(a) or (7) or (9)(a) or (b) above,</p></content></level><level class="para1" eId="schedule-5-paragraph-27-13-b"><num>(b)</num><content><p>they also specify a date for the purposes of this sub-paragraph, and</p></content></level><level class="para1" eId="schedule-5-paragraph-27-13-c"><num>(c)</num><content><p>the amount concerned is paid on or before that date,</p></content></level><wrapUp><p>the amount shall not carry interest by virtue of sub-paragraph (6) or (8) or (10) above (as the case may be).</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-27-14"><num>(14)</num><intro><p>Sub-paragraph (15) below applies where—</p></intro><level class="para1" eId="schedule-5-paragraph-27-14-a"><num>(a)</num><content><p>an amount carries interest under this paragraph (or would do so apart from that sub-paragraph), and</p></content></level><level class="para1" eId="schedule-5-paragraph-27-14-b"><num>(b)</num><content><p>all or part of the amount turns out not to be due.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-27-15"><num>(15)</num><intro><p>In such a case—</p></intro><level class="para1" eId="schedule-5-paragraph-27-15-a"><num>(a)</num><content><p>the amount or part (as the case may be) shall not carry interest under this paragraph and shall be treated as never having done so, and</p></content></level><level class="para1" eId="schedule-5-paragraph-27-15-b"><num>(b)</num><content><p>all such adjustments as are reasonable shall be made, including adjustments by way of repayment by the Commissioners where appropriate.</p></content></level></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-5-paragraph-28" class="schProv1"><num>28</num><subparagraph eId="schedule-5-paragraph-28-1"><num>(1)</num><content><p>Where a person is liable to pay interest under paragraph 27 above the Commissioners or, on appeal, an appeal tribunal may reduce the amount payable to such amount (including nil) as they think proper.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-28-2"><num>(2)</num><content><p>Where the person concerned satisfies the Commissioners or, on appeal, an appeal tribunal that there is a reasonable excuse for the conduct giving rise to the liability to pay interest, that is a factor which (among other things) may be taken into account under sub-paragraph (1) above.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-28-3"><num>(3)</num><content><p>In the case of interest reduced by the Commissioners under sub-paragraph (1) above an appeal tribunal, on an appeal relating to the interest, may cancel the whole or any part of the reduction made by the Commissioners.</p></content></subparagraph></paragraph>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="schedule-5-part-VI-crossheading-interest-payable-by-commissioners"><heading>Interest payable by Commissioners</heading><paragraph eId="schedule-5-paragraph-29" class="schProv1"><num>29</num><subparagraph eId="schedule-5-paragraph-29-1"><num>(1)</num><intro><p>Where, due to an error on the part of the Commissioners, a person—</p></intro><level class="para1" eId="schedule-5-paragraph-29-1-a"><num>(a)</num><content><p>has paid to them by way of tax an amount which was not tax due and which they are in consequence liable to repay to him,</p></content></level><level class="para1" eId="schedule-5-paragraph-29-1-b"><num>(b)</num><content><p>has failed to claim payment of an amount to the payment of which he was entitled in pursuance of provision made under section 51(2)(c) or (d) or (f) of this Act, or</p></content></level><level class="para1" eId="schedule-5-paragraph-29-1-c"><num>(c)</num><content><p>has suffered delay in receiving payment of an amount due to him from them in connection with tax,</p></content></level><wrapUp><p>then, if and to the extent that they would not be liable to do so apart from this paragraph, they shall (subject to the following provisions of this paragraph) pay interest to him on that amount for the applicable period.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-29-2"><num>(2)</num><intro><p>The applicable period, in a case falling within sub-paragraph (1)(a) above, is the period—</p></intro><level class="para1" eId="schedule-5-paragraph-29-2-a"><num>(a)</num><content><p>beginning with the date on which the payment is received by the Commissioners, and</p></content></level><level class="para1" eId="schedule-5-paragraph-29-2-b"><num>(b)</num><content><p>ending with the date on which they authorise payment of the amount on which the interest is payable.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-29-3"><num>(3)</num><intro><p>The applicable period, in a case falling within sub-paragraph (1)(b) or (c) above, is the period—</p></intro><level class="para1" eId="schedule-5-paragraph-29-3-a"><num>(a)</num><content><p>beginning with the date on which, apart from the error, the Commissioners might reasonably have been expected to authorise payment of the amount on which the interest is payable, and</p></content></level><level class="para1" eId="schedule-5-paragraph-29-3-b"><num>(b)</num><content><p>ending with the date on which they in fact authorise payment of that amount.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-29-4"><num>(4)</num><content><p>In determining the applicable period for the purposes of this paragraph, there shall be left out of account any period referable to the raising and answering of any reasonable enquiry relating to any matter giving rise to, or otherwise connected with, the person’s entitlement to interest under this paragraph.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-29-5"><num>(5)</num><intro><p>In determining for the purposes of sub-paragraph (4) above whether any period is referable to the raising and answering of such an enquiry as is there mentioned, there shall be taken to be so referable any period which begins with the date on which the Commissioners first consider it necessary to make such an enquiry and ends with the date on which the Commissioners—</p></intro><level class="para1" eId="schedule-5-paragraph-29-5-a"><num>(a)</num><content><p>satisfy themselves that they have received a complete answer to the enquiry, or</p></content></level><level class="para1" eId="schedule-5-paragraph-29-5-b"><num>(b)</num><content><p>determine not to make the enquiry or (if they have made it) not to pursue it further;</p></content></level><wrapUp><p>but excluding so much of that period as may be prescribed by regulations.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-29-6"><num>(6)</num><intro><p>For the purposes of sub-paragraph (5) above it is immaterial—</p></intro><level class="para1" eId="schedule-5-paragraph-29-6-a"><num>(a)</num><content><p>whether any enquiry is in fact made;</p></content></level><level class="para1" eId="schedule-5-paragraph-29-6-b"><num>(b)</num><content><p>whether any enquiry is or might have been made of the person referred to in sub-paragraph (1) above or of an authorised person or of some other person.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-29-7"><num>(7)</num><content><p>The Commissioners shall only be liable to pay interest under this paragraph on a claim made in writing for that purpose.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-29-8"><num>(8)</num><content><p>No claim shall be made under this paragraph after the expiry of six years from the date on which the claimant discovered the error or could with reasonable diligence have discovered it.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-29-9"><num>(9)</num><content><p>Any reference in this paragraph to receiving a payment from the Commissioners includes a reference to the discharge, by way of set-off, of their liability to make it.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-29-10"><num>(10)</num><content><p>Interest under this paragraph shall be payable at the rate applicable under section 197 of this Act.</p></content></subparagraph></paragraph><paragraph eId="schedule-5-paragraph-30" class="schProv1"><num>30</num><subparagraph eId="schedule-5-paragraph-30-1"><num>(1)</num><intro><p>Where—</p></intro><level class="para1" eId="schedule-5-paragraph-30-1-a"><num>(a)</num><content><p>any interest is payable by the Commissioners to a person on a sum due to him under this Part of this Act, and</p></content></level><level class="para1" eId="schedule-5-paragraph-30-1-b"><num>(b)</num><content><p>he is a person to whom regulations under section 51 of this Act apply,</p></content></level><wrapUp><p>the interest shall be treated as an amount to which he is entitled by way of credit in pursuance of the regulations.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-30-2"><num>(2)</num><content><p>Sub-paragraph (1) above shall be disregarded for the purpose of determining a person’s entitlement to interest or the amount of interest to which he is entitled.</p></content></subparagraph></paragraph></hcontainer>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-5-paragraph-29" class="schProv1"><num>29</num><subparagraph eId="schedule-5-paragraph-29-1"><num>(1)</num><intro><p>Where, due to an error on the part of the Commissioners, a person—</p></intro><level class="para1" eId="schedule-5-paragraph-29-1-a"><num>(a)</num><content><p>has paid to them by way of tax an amount which was not tax due and which they are in consequence liable to repay to him,</p></content></level><level class="para1" eId="schedule-5-paragraph-29-1-b"><num>(b)</num><content><p>has failed to claim payment of an amount to the payment of which he was entitled in pursuance of provision made under section 51(2)(c) or (d) or (f) of this Act, or</p></content></level><level class="para1" eId="schedule-5-paragraph-29-1-c"><num>(c)</num><content><p>has suffered delay in receiving payment of an amount due to him from them in connection with tax,</p></content></level><wrapUp><p>then, if and to the extent that they would not be liable to do so apart from this paragraph, they shall (subject to the following provisions of this paragraph) pay interest to him on that amount for the applicable period.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-29-2"><num>(2)</num><intro><p>The applicable period, in a case falling within sub-paragraph (1)(a) above, is the period—</p></intro><level class="para1" eId="schedule-5-paragraph-29-2-a"><num>(a)</num><content><p>beginning with the date on which the payment is received by the Commissioners, and</p></content></level><level class="para1" eId="schedule-5-paragraph-29-2-b"><num>(b)</num><content><p>ending with the date on which they authorise payment of the amount on which the interest is payable.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-29-3"><num>(3)</num><intro><p>The applicable period, in a case falling within sub-paragraph (1)(b) or (c) above, is the period—</p></intro><level class="para1" eId="schedule-5-paragraph-29-3-a"><num>(a)</num><content><p>beginning with the date on which, apart from the error, the Commissioners might reasonably have been expected to authorise payment of the amount on which the interest is payable, and</p></content></level><level class="para1" eId="schedule-5-paragraph-29-3-b"><num>(b)</num><content><p>ending with the date on which they in fact authorise payment of that amount.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-29-4"><num>(4)</num><content><p>In determining the applicable period for the purposes of this paragraph, there shall be left out of account any period referable to the raising and answering of any reasonable enquiry relating to any matter giving rise to, or otherwise connected with, the person’s entitlement to interest under this paragraph.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-29-5"><num>(5)</num><intro><p>In determining for the purposes of sub-paragraph (4) above whether any period is referable to the raising and answering of such an enquiry as is there mentioned, there shall be taken to be so referable any period which begins with the date on which the Commissioners first consider it necessary to make such an enquiry and ends with the date on which the Commissioners—</p></intro><level class="para1" eId="schedule-5-paragraph-29-5-a"><num>(a)</num><content><p>satisfy themselves that they have received a complete answer to the enquiry, or</p></content></level><level class="para1" eId="schedule-5-paragraph-29-5-b"><num>(b)</num><content><p>determine not to make the enquiry or (if they have made it) not to pursue it further;</p></content></level><wrapUp><p>but excluding so much of that period as may be prescribed by regulations.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-29-6"><num>(6)</num><intro><p>For the purposes of sub-paragraph (5) above it is immaterial—</p></intro><level class="para1" eId="schedule-5-paragraph-29-6-a"><num>(a)</num><content><p>whether any enquiry is in fact made;</p></content></level><level class="para1" eId="schedule-5-paragraph-29-6-b"><num>(b)</num><content><p>whether any enquiry is or might have been made of the person referred to in sub-paragraph (1) above or of an authorised person or of some other person.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-29-7"><num>(7)</num><content><p>The Commissioners shall only be liable to pay interest under this paragraph on a claim made in writing for that purpose.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-29-8"><num>(8)</num><content><p>No claim shall be made under this paragraph after the expiry of six years from the date on which the claimant discovered the error or could with reasonable diligence have discovered it.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-29-9"><num>(9)</num><content><p>Any reference in this paragraph to receiving a payment from the Commissioners includes a reference to the discharge, by way of set-off, of their liability to make it.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-29-10"><num>(10)</num><content><p>Interest under this paragraph shall be payable at the rate applicable under section 197 of this Act.</p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-5-paragraph-30" class="schProv1"><num>30</num><subparagraph eId="schedule-5-paragraph-30-1"><num>(1)</num><intro><p>Where—</p></intro><level class="para1" eId="schedule-5-paragraph-30-1-a"><num>(a)</num><content><p>any interest is payable by the Commissioners to a person on a sum due to him under this Part of this Act, and</p></content></level><level class="para1" eId="schedule-5-paragraph-30-1-b"><num>(b)</num><content><p>he is a person to whom regulations under section 51 of this Act apply,</p></content></level><wrapUp><p>the interest shall be treated as an amount to which he is entitled by way of credit in pursuance of the regulations.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-30-2"><num>(2)</num><content><p>Sub-paragraph (1) above shall be disregarded for the purpose of determining a person’s entitlement to interest or the amount of interest to which he is entitled.</p></content></subparagraph></paragraph>
<part xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" eId="schedule-5-part-VII"><num>Part VII</num><heading>Miscellaneous</heading><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-5-part-VII-crossheading-security-for-tax"><heading>Security for tax</heading><paragraph eId="schedule-5-paragraph-31" class="schProv1"><num>31</num><content><p>Where it appears to the Commissioners requisite to do so for the protection of the revenue they may require a registrable person, as a condition of his carrying out taxable activities, to give security (or further security) of such amount and in such manner as they may determine for the payment of any tax which is or may become due from him.</p></content></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-5-part-VII-crossheading-assessments-to-penalties-etc"><heading>Assessments to penalties etc.</heading><paragraph eId="schedule-5-paragraph-32" class="schProv1"><num>32</num><subparagraph eId="schedule-5-paragraph-32-1"><num>(1)</num><intro><p>Where a person is liable—</p></intro><level class="para1" eId="schedule-5-paragraph-32-1-a"><num>(a)</num><content><p>to a penalty under Part V of this Schedule, or</p></content></level><level class="para1" eId="schedule-5-paragraph-32-1-b"><num>(b)</num><content><p>for interest under paragraph 26 or 27 above,</p></content></level><wrapUp><p>the Commissioners may, subject to sub-paragraph (2) below, assess the amount due by way of penalty or interest (as the case may be) and notify it to him accordingly; and the fact that any conduct giving rise to a penalty under Part V of this Schedule may have ceased before an assessment is made under this paragraph shall not affect the power of the Commissioners to make such an assessment.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-32-2"><num>(2)</num><intro><p>In the case of the penalties and interest referred to in the following paragraphs of this sub-paragraph, the assessment under this paragraph shall be of an amount due in respect of the accounting period which in the paragraph concerned is referred to as the relevant period—</p></intro><level class="para1" eId="schedule-5-paragraph-32-2-a"><num>(a)</num><content><p>in the case of a penalty under paragraph 18 above relating to the evasion of tax, and in the case of interest under paragraph 27 above on an amount due by way of such a penalty, the relevant period is the accounting period for which the tax evaded was due;</p></content></level><level class="para1" eId="schedule-5-paragraph-32-2-b"><num>(b)</num><content><p>in the case of a penalty under paragraph 18 above relating to the obtaining of a payment under regulations under section 51(2)(c) or (d) or (f) of this Act, and in the case of interest under paragraph 27 above on an amount due by way of such a penalty, the relevant period is the accounting period in respect of which the payment was obtained;</p></content></level><level class="para1" eId="schedule-5-paragraph-32-2-c"><num>(c)</num><content><p>in the case of interest under paragraph 26 above, and in the case of interest under paragraph 27 above on an amount due by way of interest under paragraph 26 above, the relevant period is the accounting period in respect of which the tax was due;</p></content></level><level class="para1" eId="schedule-5-paragraph-32-2-d"><num>(d)</num><content><p>in the case of interest under paragraph 27 above on an amount of tax, the relevant period is the accounting period in respect of which the tax was due.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-32-3"><num>(3)</num><content><p>In a case where the amount of any penalty or interest falls to be calculated by reference to tax which was not paid at the time it should have been and that tax cannot be readily attributed to any one or more accounting periods, it shall be treated for the purposes of this Part of this Act as tax due for such period or periods as the Commissioners may determine to the best of their judgment and notify to the person liable for the tax and penalty or interest.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-32-4"><num>(4)</num><content><p>Where a person is assessed under this paragraph to an amount due by way of any penalty or interest falling within sub-paragraph (2) above and is also assessed under subsection (1) or (2) of section 50 of this Act for the accounting period which is the relevant period under sub-paragraph (2) above, the assessments may be combined and notified to him as one assessment, but the amount of the penalty or interest shall be separately identified in the notice.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-32-5"><num>(5)</num><content><p>Sub-paragraph (6) below applies in the case of an amount due by way of interest under paragraph 27 above.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-32-6"><num>(6)</num><intro><p>Where this sub-paragraph applies in the case of an amount—</p></intro><level class="para1" eId="schedule-5-paragraph-32-6-a"><num>(a)</num><content><p>a notice of assessment under this paragraph shall specify a date, being not later than the date of the notice, to which the amount of interest which is assessed is calculated, and</p></content></level><level class="para1" eId="schedule-5-paragraph-32-6-b"><num>(b)</num><content><p>if the interest continues to accrue after that date, a further assessment or further assessments may be made under this paragraph in respect of amounts which so accrue.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-32-7"><num>(7)</num><content><p>If, within such period as may be notified by the Commissioners to the person liable for the interest under paragraph 27 above, the amount referred to in paragraph 27(2), (4), (6), (8) or (10) above (as the case may be) is paid, it shall be treated for the purposes of paragraph 27 above as paid on the date specified as mentioned in sub-paragraph (6)(a) above.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-32-8"><num>(8)</num><content><p>Where an amount has been assessed and notified to any person under this paragraph it shall be recoverable as if it were tax due from him unless, or except to the extent that, the assessment has subsequently been withdrawn or reduced.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-32-9"><num>(9)</num><content><p>Subsection (8) of section 50 of this Act shall apply for the purposes of this paragraph as it applies for the purposes of that section.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-5-part-VII-crossheading-assessments-time-limits"><heading>Assessments: time limits</heading><paragraph eId="schedule-5-paragraph-33" class="schProv1"><num>33</num><subparagraph eId="schedule-5-paragraph-33-1"><num>(1)</num><intro><p>Subject to the following provisions of this paragraph, an assessment under—</p></intro><level class="para1" eId="schedule-5-paragraph-33-1-a"><num>(a)</num><content><p>any provision of section 50 of this Act, or</p></content></level><level class="para1" eId="schedule-5-paragraph-33-1-b"><num>(b)</num><content><p>paragraph 32 above,</p></content></level><wrapUp><p>shall not be made more than six years after the end of the accounting period concerned or, in the case of an assessment under paragraph 32 above of an amount due by way of a penalty which is not a penalty referred to in sub-paragraph (2) of that paragraph, six years after the event giving rise to the penalty.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-33-2"><num>(2)</num><intro><p>Subject to sub-paragraph (5) below, an assessment under paragraph 32 above of—</p></intro><level class="para1" eId="schedule-5-paragraph-33-2-a"><num>(a)</num><content><p>an amount due by way of any penalty referred to in sub-paragraph (2) of that paragraph, or</p></content></level><level class="para1" eId="schedule-5-paragraph-33-2-b"><num>(b)</num><content><p>an amount due by way of interest,</p></content></level><wrapUp><p>may be made at any time before the expiry of the period of two years beginning with the time when the amount of tax due for the accounting period concerned has been finally determined.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-33-3"><num>(3)</num><content><p>In relation to an assessment under paragraph 32 above, any reference in sub-paragraph (1) or (2) above to the accounting period concerned is a reference to that period which, in the case of the penalty or interest concerned, is the relevant period referred to in sub-paragraph (2) of that paragraph.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-33-4"><num>(4)</num><intro><p>Subject to sub-paragraph (5) below, if tax has been lost—</p></intro><level class="para1" eId="schedule-5-paragraph-33-4-a"><num>(a)</num><content><p>as a result of conduct falling within paragraph 18(1) above or for which a person has been convicted of fraud, or</p></content></level><level class="para1" eId="schedule-5-paragraph-33-4-b"><num>(b)</num><content><p>in circumstances giving rise to liability to a penalty under paragraph 21 above,</p></content></level><wrapUp><p>an assessment may be made as if, in sub-paragraph (1) above, each reference to six years were a reference to twenty years.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-33-5"><num>(5)</num><intro><p>Where after a person’s death the Commissioners propose to assess an amount as due by reason of some conduct of the deceased—</p></intro><level class="para1" eId="schedule-5-paragraph-33-5-a"><num>(a)</num><content><p>the assessment shall not be made more than three years after the death, and</p></content></level><level class="para1" eId="schedule-5-paragraph-33-5-b"><num>(b)</num><content><p>if the circumstances are as set out in sub-paragraph (4) above, the modification of sub-paragraph (1) above contained in that sub-paragraph shall not apply but any assessment which (from the point of view of time limits) could have been made immediately after the death may be made at any time within three years after it.</p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-5-part-VII-crossheading-supplementary-assessments"><heading>Supplementary assessments</heading><paragraph eId="schedule-5-paragraph-34" class="schProv1"><num>34</num><intro><p>If, otherwise than in circumstances falling within subsection (5)(b) of section 50 of this Act, it appears to the Commissioners that the amount which ought to have been assessed in an assessment under any provision of that section or under paragraph 32 above exceeds the amount which was so assessed, then—</p></intro><level class="para1" eId="schedule-5-paragraph-34-a"><num>(a)</num><content><p>under the like provision as that assessment was made, and</p></content></level><level class="para1" eId="schedule-5-paragraph-34-b"><num>(b)</num><content><p>on or before the last day on which that assessment could have been made,</p></content></level><wrapUp><p>the Commissioners may make a supplementary assessment of the amount of the excess and shall notify the person concerned accordingly.</p></wrapUp></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-5-part-VII-crossheading-disclosure-of-information"><heading>Disclosure of information</heading><paragraph eId="schedule-5-paragraph-35" class="schProv1"><num>35</num><subparagraph eId="schedule-5-paragraph-35-1"><num>(1)</num><intro><p>Notwithstanding any obligation not to disclose information that would otherwise apply, the Commissioners may disclose information to—</p></intro><level class="para1" eId="schedule-5-paragraph-35-1-a"><num>(a)</num><content><p>the Secretary of State,</p></content></level><level class="para1" eId="schedule-5-paragraph-35-1-b"><num>(b)</num><content><p>the Environment Agency,</p></content></level><level class="para1" eId="schedule-5-paragraph-35-1-c"><num>(c)</num><content><p>the Scottish Environment Protection Agency,</p></content></level><level class="para1" eId="schedule-5-paragraph-35-1-d"><num>(d)</num><content><p>the Department of the Environment for Northern Ireland,</p></content></level><level class="para1" eId="schedule-5-paragraph-35-1-e"><num>(e)</num><content><p>a district council in Northern Ireland, or</p></content></level><level class="para1" eId="schedule-5-paragraph-35-1-f"><num>(f)</num><content><p>an authorised officer of any person (a principal) mentioned in paragraphs (a) to (e) above,</p></content></level><wrapUp><p>for the purpose of assisting the principal concerned in the performance of the principal’s duties.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-35-2"><num>(2)</num><content><p>Notwithstanding any such obligation as is mentioned in sub-paragraph (1) above, any person mentioned in sub-paragraph (1)(a) to (f) above may disclose information to the Commissioners or to an authorised officer of the Commissioners for the purpose of assisting the Commissioners in the performance of duties in relation to tax.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-35-3"><num>(3)</num><intro><p>Information that has been disclosed to a person by virtue of this paragraph shall not be disclosed by him except—</p></intro><level class="para1" eId="schedule-5-paragraph-35-3-a"><num>(a)</num><content><p>to another person to whom (instead of him) disclosure could by virtue of this paragraph have been made, or</p></content></level><level class="para1" eId="schedule-5-paragraph-35-3-b"><num>(b)</num><content><p>for the purpose of any proceedings connected with the operation of any provision of, or made under, any enactment in relation to the environment or to tax.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-35-4"><num>(4)</num><content><p>References in the preceding provisions of this paragraph to an authorised officer of any person (the principal) are to any person who has been designated by the principal as a person to and by whom information may be disclosed by virtue of this paragraph.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-35-5"><num>(5)</num><content><p>The Secretary of State shall notify the Commissioners in writing of the name of any person designated by the Secretary of State under sub-paragraph (4) above.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-35-6"><num>(6)</num><content><p>No charge may be made for a disclosure made by virtue of this paragraph.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-5-part-VII-crossheading-the-register-publication"><heading>The register: publication</heading><paragraph eId="schedule-5-paragraph-36" class="schProv1"><num>36</num><subparagraph eId="schedule-5-paragraph-36-1"><num>(1)</num><intro><p>The Commissioners may publish, by such means as they think fit, information which—</p></intro><level class="para1" eId="schedule-5-paragraph-36-1-a"><num>(a)</num><content><p>is derived from the register kept under section 47 of this Act, and</p></content></level><level class="para1" eId="schedule-5-paragraph-36-1-b"><num>(b)</num><content><p>falls within any of the descriptions set out below.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-36-2"><num>(2)</num><intro><p>The descriptions are—</p></intro><level class="para1" eId="schedule-5-paragraph-36-2-a"><num>(a)</num><content><p>the names of registered persons;</p></content></level><level class="para1" eId="schedule-5-paragraph-36-2-b"><num>(b)</num><content><p>the addresses of any sites or other premises at which they carry on business;</p></content></level><level class="para1" eId="schedule-5-paragraph-36-2-c"><num>(c)</num><content><p>the registration numbers assigned to them in the register;</p></content></level><level class="para1" eId="schedule-5-paragraph-36-2-d"><num>(d)</num><content><p>the fact (where it is the case) that the registered person is a body corporate which under section 59 of this Act is treated as a member of a group;</p></content></level><level class="para1" eId="schedule-5-paragraph-36-2-e"><num>(e)</num><content><p>the names of the other bodies corporate treated under that section as members of the group;</p></content></level><level class="para1" eId="schedule-5-paragraph-36-2-f"><num>(f)</num><content><p>the addresses of any sites or other premises at which those other bodies carry on business.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-36-3"><num>(3)</num><content><p>Information may be published in accordance with this paragraph notwithstanding any obligation not to disclose the information that would otherwise apply.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-5-part-VII-crossheading-evidence-by-certificate-etc"><heading>Evidence by certificate etc.</heading><paragraph eId="schedule-5-paragraph-37" class="schProv1"><num>37</num><subparagraph eId="schedule-5-paragraph-37-1"><num>(1)</num><intro><p>A certificate of the Commissioners—</p></intro><level class="para1" eId="schedule-5-paragraph-37-1-a"><num>(a)</num><content><p>that a person was or was not at any time registered under section 47 of this Act,</p></content></level><level class="para1" eId="schedule-5-paragraph-37-1-b"><num>(b)</num><content><p>that any return required by regulations made under section 49 of this Act has not been made or had not been made at any time, or</p></content></level><level class="para1" eId="schedule-5-paragraph-37-1-c"><num>(c)</num><content><p>that any tax shown as due in a return made in pursuance of regulations made under section 49 of this Act, or in an assessment made under section 50 of this Act, has not been paid,</p></content></level><wrapUp><p>shall be sufficient evidence of that fact until the contrary is proved.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-37-2"><num>(2)</num><content><p>A photograph of any document furnished to the Commissioners for the purposes of this Part of this Act and certified by them to be such a photograph shall be admissible in any proceedings, whether civil or criminal, to the same extent as the document itself.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-37-3"><num>(3)</num><content><p>Any document purporting to be a certificate under sub-paragraph (1) or (2) above shall be taken to be such a certificate until the contrary is proved.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-5-part-VII-crossheading-service-of-notices-etc"><heading>Service of notices etc.</heading><paragraph eId="schedule-5-paragraph-38" class="schProv1"><num>38</num><content><p>Any notice, notification or requirement to be served on, given to or made of any person for the purposes of this Part of this Act may be served, given or made by sending it by post in a letter addressed to that person at his last or usual residence or place of business.</p></content></paragraph><paragraph eId="schedule-5-paragraph-39" class="schProv1"><num>39</num><subparagraph eId="schedule-5-paragraph-39-1"><num>(1)</num><content><p>This paragraph applies to directions, specifications and conditions which the Commissioners or an authorised person may give or impose under any provision of this Part.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-39-2"><num>(2)</num><content><p>A direction, specification or condition given or imposed by the Commissioners may be withdrawn or varied by them.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-39-3"><num>(3)</num><content><p>A direction, specification or condition given or imposed by an authorised person may be withdrawn or varied by him or by another authorised person.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-39-4"><num>(4)</num><intro><p>No direction, specification or condition shall have effect as regards any person it is intended to affect unless—</p></intro><level class="para1" eId="schedule-5-paragraph-39-4-a"><num>(a)</num><content><p>a notice containing it is served on him, or</p></content></level><level class="para1" eId="schedule-5-paragraph-39-4-b"><num>(b)</num><content><p>other reasonable steps are taken with a view to bringing it to his attention.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-39-5"><num>(5)</num><intro><p>No withdrawal or variation of a direction, specification or condition shall have effect as regards any person the withdrawal or variation is intended to affect unless—</p></intro><level class="para1" eId="schedule-5-paragraph-39-5-a"><num>(a)</num><content><p>a notice containing the withdrawal or variation is served on him, or</p></content></level><level class="para1" eId="schedule-5-paragraph-39-5-b"><num>(b)</num><content><p>other reasonable steps are taken with a view to bringing the withdrawal or variation to his attention.</p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-5-part-VII-crossheading-no-deduction-of-penalties-or-interest"><heading>No deduction of penalties or interest</heading><paragraph eId="schedule-5-paragraph-40" class="schProv1"><num>40</num><content><p><mod>In section 827 of the Taxes Act 1988 (no deduction for penalties etc.) the following subsection shall be inserted after subsection (1B)—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1C)</num><intro><p>Where a person is liable to make a payment by way of—</p></intro><level class="para1"><num>(a)</num><content><p>penalty under Part V of Schedule 5 to the Finance Act 1996 (landfill tax), or</p></content></level><level class="para1"><num>(b)</num><content><p>interest under paragraph 26 or 27 of that Schedule,</p></content></level><wrapUp><p>the payment shall not be allowed as a deduction in computing any income, profits or losses for any tax purposes.</p></wrapUp></subsection></quotedStructure></mod></p></content></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-5-part-VII-crossheading-destination-of-receipts"><heading>Destination of receipts</heading><paragraph eId="schedule-5-paragraph-41" class="schProv1"><num>41</num><intro><p>All money and securities for money collected or received for or on account of the tax shall—</p></intro><level class="para1" eId="schedule-5-paragraph-41-a"><num>(a)</num><content><p>if collected or received in Great Britain, be placed to the general account of the Commissioners kept at the Bank of England under section 17 of the <noteRef href="#m00210" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Customs and Excise Management Act 1979;</p></content></level><level class="para1" eId="schedule-5-paragraph-41-b"><num>(b)</num><content><p>if collected or received in Northern Ireland, be paid into the Consolidated Fund of the United Kingdom in such manner as the Treasury may direct.</p></content></level></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-5-part-VII-crossheading-setoff-of-amounts"><heading>Set-off of amounts</heading><paragraph eId="schedule-5-paragraph-42" class="schProv1"><num>42</num><subparagraph eId="schedule-5-paragraph-42-1"><num>(1)</num><intro><p>Regulations may make provision in relation to any case where—</p></intro><level class="para1" eId="schedule-5-paragraph-42-1-a"><num>(a)</num><content><p>a person is under a duty to pay to the Commissioners at any time an amount or amounts in respect of landfill tax, and</p></content></level><level class="para1" eId="schedule-5-paragraph-42-1-b"><num>(b)</num><content><p>the Commissioners are under a duty to pay to that person at the same time an amount or amounts in respect of any tax (or taxes) under their care and management.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-42-2"><num>(2)</num><content><p>The regulations may provide that if the total of the amount or amounts mentioned in sub-paragraph (1)(a) above exceeds the total of the amount or amounts mentioned in sub-paragraph (1)(b) above, the latter shall be set off against the former.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-42-3"><num>(3)</num><content><p>The regulations may provide that if the total of the amount or amounts mentioned in sub-paragraph (1)(b) above exceeds the total of the amount or amounts mentioned in sub-paragraph (1)(a) above, the Commissioners may set off the latter in paying the former.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-42-4"><num>(4)</num><content><p>The regulations may provide that if the total of the amount or amounts mentioned in sub-paragraph (1)(a) above is the same as the total of the amount or amounts mentioned in sub-paragraph (1)(b) above no payment need be made in respect of the former or the latter.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-42-5"><num>(5)</num><content><p>The regulations may include provision treating any duty to pay mentioned in sub-paragraph (1) above as discharged accordingly.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-42-6"><num>(6)</num><content><p>References in sub-paragraph (1) above to an amount in respect of a particular tax include references not only to an amount of tax itself but also to other amounts such as interest and penalty.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-42-7"><num>(7)</num><content><p>In this paragraph “tax” includes “duty”.</p></content></subparagraph></paragraph><paragraph eId="schedule-5-paragraph-43" class="schProv1"><num>43</num><subparagraph eId="schedule-5-paragraph-43-1"><num>(1)</num><intro><p>Regulations may make provision in relation to any case where—</p></intro><level class="para1" eId="schedule-5-paragraph-43-1-a"><num>(a)</num><content><p>a person is under a duty to pay to the Commissioners at any time an amount or amounts in respect of any tax (or taxes) under their care and management, and</p></content></level><level class="para1" eId="schedule-5-paragraph-43-1-b"><num>(b)</num><content><p>the Commissioners are under a duty to pay to that person at the same time an amount or amounts in respect of landfill tax.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-43-2"><num>(2)</num><content><p>The regulations may provide that if the total of the amount or amounts mentioned in sub-paragraph (1)(a) above exceeds the total of the amount or amounts mentioned in sub-paragraph (1)(b) above, the latter shall be set off against the former.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-43-3"><num>(3)</num><content><p>The regulations may provide that if the total of the amount or amounts mentioned in sub-paragraph (1)(b) above exceeds the total of the amount or amounts mentioned in sub-paragraph (1)(a) above, the Commissioners may set off the latter in paying the former.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-43-4"><num>(4)</num><content><p>The regulations may provide that if the total of the amount or amounts mentioned in sub-paragraph (1)(a) above is the same as the total of the amount or amounts mentioned in sub-paragraph (1)(b) above no payment need be made in respect of the former or the latter.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-43-5"><num>(5)</num><content><p>The regulations may include provision treating any duty to pay mentioned in sub-paragraph (1) above as discharged accordingly.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-43-6"><num>(6)</num><content><p>References in sub-paragraph (1) above to an amount in respect of a particular tax include references not only to an amount of tax itself but also to other amounts such as interest and penalty.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-43-7"><num>(7)</num><content><p>In this paragraph “tax” includes “duty”.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-5-part-VII-crossheading-amounts-shown-as-tax-on-invoices"><heading>Amounts shown as tax on invoices</heading><paragraph eId="schedule-5-paragraph-44" class="schProv1"><num>44</num><subparagraph eId="schedule-5-paragraph-44-1"><num>(1)</num><intro><p>Where—</p></intro><level class="para1" eId="schedule-5-paragraph-44-1-a"><num>(a)</num><content><p>a registrable person issues an invoice showing an amount as tax chargeable on an event, and</p></content></level><level class="para1" eId="schedule-5-paragraph-44-1-b"><num>(b)</num><content><p>no tax is in fact chargeable on the event,</p></content></level><wrapUp><p>an amount equal to the amount shown as tax shall be recoverable from the person as a debt due to the Crown.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-44-2"><num>(2)</num><intro><p>Where—</p></intro><level class="para1" eId="schedule-5-paragraph-44-2-a"><num>(a)</num><content><p>a registrable person issues an invoice showing an amount as tax chargeable on a taxable disposal, and</p></content></level><level class="para1" eId="schedule-5-paragraph-44-2-b"><num>(b)</num><content><p>the amount shown as tax exceeds the amount of tax in fact chargeable on the disposal,</p></content></level><wrapUp><p>an amount equal to the excess shall be recoverable from the person as a debt due to the Crown.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-44-3"><num>(3)</num><content><p>References in this paragraph to an invoice are to any invoice, whether or not it is a landfill invoice within the meaning of section 61 of this Act.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-5-part-VII-crossheading-adjustment-of-contracts"><heading>Adjustment of contracts</heading><paragraph eId="schedule-5-paragraph-45" class="schProv1"><num>45</num><subparagraph eId="schedule-5-paragraph-45-1"><num>(1)</num><intro><p>This paragraph applies where—</p></intro><level class="para1" eId="schedule-5-paragraph-45-1-a"><num>(a)</num><content><p>material undergoes a landfill disposal,</p></content></level><level class="para1" eId="schedule-5-paragraph-45-1-b"><num>(b)</num><content><p>a payment falls to be made under a disposal contract relating to the material, and</p></content></level><level class="para1" eId="schedule-5-paragraph-45-1-c"><num>(c)</num><content><p>after the making of the contract there is a change in the tax chargeable on the landfill disposal.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-45-2"><num>(2)</num><content><p>In such a case the amount of any payment mentioned in sub-paragraph (1)(b) above shall be adjusted, unless the disposal contract otherwise provides, so as to reflect the tax chargeable on the landfill disposal.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-45-3"><num>(3)</num><intro><p>For the purposes of this paragraph a disposal contract relating to material is a contract providing for the disposal of the material, and it is immaterial—</p></intro><level class="para1" eId="schedule-5-paragraph-45-3-a"><num>(a)</num><content><p>when the contract was made;</p></content></level><level class="para1" eId="schedule-5-paragraph-45-3-b"><num>(b)</num><content><p>whether the contract also provides for other matters;</p></content></level><level class="para1" eId="schedule-5-paragraph-45-3-c"><num>(c)</num><content><p>whether the contract provides for a method of disposal and (if it does) what method it provides for.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-45-4"><num>(4)</num><intro><p>The reference in sub-paragraph (1) above to a change in the tax chargeable is a reference to a change—</p></intro><level class="para1" eId="schedule-5-paragraph-45-4-a"><num>(a)</num><content><p>to or from no tax being chargeable, or</p></content></level><level class="para1" eId="schedule-5-paragraph-45-4-b"><num>(b)</num><content><p>in the amount of tax chargeable.</p></content></level></subparagraph></paragraph><paragraph eId="schedule-5-paragraph-46" class="schProv1"><num>46</num><subparagraph eId="schedule-5-paragraph-46-1"><num>(1)</num><intro><p>This paragraph applies where—</p></intro><level class="para1" eId="schedule-5-paragraph-46-1-a"><num>(a)</num><content><p>work is carried out under a construction contract,</p></content></level><level class="para1" eId="schedule-5-paragraph-46-1-b"><num>(b)</num><content><p>as a result of the work, material undergoes a landfill disposal,</p></content></level><level class="para1" eId="schedule-5-paragraph-46-1-c"><num>(c)</num><content><p>the contract makes no provision as to the disposal of such material, and</p></content></level><level class="para1" eId="schedule-5-paragraph-46-1-d"><num>(d)</num><content><p>the contract was made on or before 29th November 1994 (when the proposal to create tax was announced).</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-46-2"><num>(2)</num><intro><p>In such a case the amount of any payment which falls to be made—</p></intro><level class="para1" eId="schedule-5-paragraph-46-2-a"><num>(a)</num><content><p>under the construction contract, and</p></content></level><level class="para1" eId="schedule-5-paragraph-46-2-b"><num>(b)</num><content><p>in respect of the work,</p></content></level><wrapUp><p>shall be adjusted, unless the contract otherwise provides, so as to reflect the tax (if any) chargeable on the disposal.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-46-3"><num>(3)</num><intro><p>For the purposes of this paragraph a construction contract is a contract under which all or any of the following work is to be carried out—</p></intro><level class="para1" eId="schedule-5-paragraph-46-3-a"><num>(a)</num><content><p>the preparation of a site;</p></content></level><level class="para1" eId="schedule-5-paragraph-46-3-b"><num>(b)</num><content><p>demolition;</p></content></level><level class="para1" eId="schedule-5-paragraph-46-3-c"><num>(c)</num><content><p>building;</p></content></level><level class="para1" eId="schedule-5-paragraph-46-3-d"><num>(d)</num><content><p>civil engineering.</p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-5-part-VII-crossheading-adjustment-of-rent-etc"><heading>Adjustment of rent etc.</heading><paragraph eId="schedule-5-paragraph-47" class="schProv1"><num>47</num><subparagraph eId="schedule-5-paragraph-47-1"><num>(1)</num><intro><p>This paragraph applies where—</p></intro><level class="para1" eId="schedule-5-paragraph-47-1-a"><num>(a)</num><content><p>an agreement with regard to any sum payable in respect of the use of land (whether the sum is called rent or royalty or otherwise) provides that the amount of the sum is to be calculated by reference to the turnover of a business,</p></content></level><level class="para1" eId="schedule-5-paragraph-47-1-b"><num>(b)</num><content><p>the agreement was made on or before 29th November 1994 (when the proposal to create tax was announced), and</p></content></level><level class="para1" eId="schedule-5-paragraph-47-1-c"><num>(c)</num><content><p>the circumstances are such that (had the agreement been made after that date) it can reasonably be expected that it would have provided that tax be ignored in calculating the turnover.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-47-2"><num>(2)</num><content><p>In such a case the agreement shall be taken to provide that tax be ignored in calculating the turnover.</p></content></subparagraph></paragraph></hcontainer></part>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="schedule-5-part-VII-crossheading-security-for-tax"><heading>Security for tax</heading><paragraph eId="schedule-5-paragraph-31" class="schProv1"><num>31</num><content><p>Where it appears to the Commissioners requisite to do so for the protection of the revenue they may require a registrable person, as a condition of his carrying out taxable activities, to give security (or further security) of such amount and in such manner as they may determine for the payment of any tax which is or may become due from him.</p></content></paragraph></hcontainer>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-5-paragraph-31" class="schProv1"><num>31</num><content><p>Where it appears to the Commissioners requisite to do so for the protection of the revenue they may require a registrable person, as a condition of his carrying out taxable activities, to give security (or further security) of such amount and in such manner as they may determine for the payment of any tax which is or may become due from him.</p></content></paragraph>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="schedule-5-part-VII-crossheading-assessments-to-penalties-etc"><heading>Assessments to penalties etc.</heading><paragraph eId="schedule-5-paragraph-32" class="schProv1"><num>32</num><subparagraph eId="schedule-5-paragraph-32-1"><num>(1)</num><intro><p>Where a person is liable—</p></intro><level class="para1" eId="schedule-5-paragraph-32-1-a"><num>(a)</num><content><p>to a penalty under Part V of this Schedule, or</p></content></level><level class="para1" eId="schedule-5-paragraph-32-1-b"><num>(b)</num><content><p>for interest under paragraph 26 or 27 above,</p></content></level><wrapUp><p>the Commissioners may, subject to sub-paragraph (2) below, assess the amount due by way of penalty or interest (as the case may be) and notify it to him accordingly; and the fact that any conduct giving rise to a penalty under Part V of this Schedule may have ceased before an assessment is made under this paragraph shall not affect the power of the Commissioners to make such an assessment.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-32-2"><num>(2)</num><intro><p>In the case of the penalties and interest referred to in the following paragraphs of this sub-paragraph, the assessment under this paragraph shall be of an amount due in respect of the accounting period which in the paragraph concerned is referred to as the relevant period—</p></intro><level class="para1" eId="schedule-5-paragraph-32-2-a"><num>(a)</num><content><p>in the case of a penalty under paragraph 18 above relating to the evasion of tax, and in the case of interest under paragraph 27 above on an amount due by way of such a penalty, the relevant period is the accounting period for which the tax evaded was due;</p></content></level><level class="para1" eId="schedule-5-paragraph-32-2-b"><num>(b)</num><content><p>in the case of a penalty under paragraph 18 above relating to the obtaining of a payment under regulations under section 51(2)(c) or (d) or (f) of this Act, and in the case of interest under paragraph 27 above on an amount due by way of such a penalty, the relevant period is the accounting period in respect of which the payment was obtained;</p></content></level><level class="para1" eId="schedule-5-paragraph-32-2-c"><num>(c)</num><content><p>in the case of interest under paragraph 26 above, and in the case of interest under paragraph 27 above on an amount due by way of interest under paragraph 26 above, the relevant period is the accounting period in respect of which the tax was due;</p></content></level><level class="para1" eId="schedule-5-paragraph-32-2-d"><num>(d)</num><content><p>in the case of interest under paragraph 27 above on an amount of tax, the relevant period is the accounting period in respect of which the tax was due.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-32-3"><num>(3)</num><content><p>In a case where the amount of any penalty or interest falls to be calculated by reference to tax which was not paid at the time it should have been and that tax cannot be readily attributed to any one or more accounting periods, it shall be treated for the purposes of this Part of this Act as tax due for such period or periods as the Commissioners may determine to the best of their judgment and notify to the person liable for the tax and penalty or interest.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-32-4"><num>(4)</num><content><p>Where a person is assessed under this paragraph to an amount due by way of any penalty or interest falling within sub-paragraph (2) above and is also assessed under subsection (1) or (2) of section 50 of this Act for the accounting period which is the relevant period under sub-paragraph (2) above, the assessments may be combined and notified to him as one assessment, but the amount of the penalty or interest shall be separately identified in the notice.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-32-5"><num>(5)</num><content><p>Sub-paragraph (6) below applies in the case of an amount due by way of interest under paragraph 27 above.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-32-6"><num>(6)</num><intro><p>Where this sub-paragraph applies in the case of an amount—</p></intro><level class="para1" eId="schedule-5-paragraph-32-6-a"><num>(a)</num><content><p>a notice of assessment under this paragraph shall specify a date, being not later than the date of the notice, to which the amount of interest which is assessed is calculated, and</p></content></level><level class="para1" eId="schedule-5-paragraph-32-6-b"><num>(b)</num><content><p>if the interest continues to accrue after that date, a further assessment or further assessments may be made under this paragraph in respect of amounts which so accrue.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-32-7"><num>(7)</num><content><p>If, within such period as may be notified by the Commissioners to the person liable for the interest under paragraph 27 above, the amount referred to in paragraph 27(2), (4), (6), (8) or (10) above (as the case may be) is paid, it shall be treated for the purposes of paragraph 27 above as paid on the date specified as mentioned in sub-paragraph (6)(a) above.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-32-8"><num>(8)</num><content><p>Where an amount has been assessed and notified to any person under this paragraph it shall be recoverable as if it were tax due from him unless, or except to the extent that, the assessment has subsequently been withdrawn or reduced.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-32-9"><num>(9)</num><content><p>Subsection (8) of section 50 of this Act shall apply for the purposes of this paragraph as it applies for the purposes of that section.</p></content></subparagraph></paragraph></hcontainer>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-5-paragraph-32" class="schProv1"><num>32</num><subparagraph eId="schedule-5-paragraph-32-1"><num>(1)</num><intro><p>Where a person is liable—</p></intro><level class="para1" eId="schedule-5-paragraph-32-1-a"><num>(a)</num><content><p>to a penalty under Part V of this Schedule, or</p></content></level><level class="para1" eId="schedule-5-paragraph-32-1-b"><num>(b)</num><content><p>for interest under paragraph 26 or 27 above,</p></content></level><wrapUp><p>the Commissioners may, subject to sub-paragraph (2) below, assess the amount due by way of penalty or interest (as the case may be) and notify it to him accordingly; and the fact that any conduct giving rise to a penalty under Part V of this Schedule may have ceased before an assessment is made under this paragraph shall not affect the power of the Commissioners to make such an assessment.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-32-2"><num>(2)</num><intro><p>In the case of the penalties and interest referred to in the following paragraphs of this sub-paragraph, the assessment under this paragraph shall be of an amount due in respect of the accounting period which in the paragraph concerned is referred to as the relevant period—</p></intro><level class="para1" eId="schedule-5-paragraph-32-2-a"><num>(a)</num><content><p>in the case of a penalty under paragraph 18 above relating to the evasion of tax, and in the case of interest under paragraph 27 above on an amount due by way of such a penalty, the relevant period is the accounting period for which the tax evaded was due;</p></content></level><level class="para1" eId="schedule-5-paragraph-32-2-b"><num>(b)</num><content><p>in the case of a penalty under paragraph 18 above relating to the obtaining of a payment under regulations under section 51(2)(c) or (d) or (f) of this Act, and in the case of interest under paragraph 27 above on an amount due by way of such a penalty, the relevant period is the accounting period in respect of which the payment was obtained;</p></content></level><level class="para1" eId="schedule-5-paragraph-32-2-c"><num>(c)</num><content><p>in the case of interest under paragraph 26 above, and in the case of interest under paragraph 27 above on an amount due by way of interest under paragraph 26 above, the relevant period is the accounting period in respect of which the tax was due;</p></content></level><level class="para1" eId="schedule-5-paragraph-32-2-d"><num>(d)</num><content><p>in the case of interest under paragraph 27 above on an amount of tax, the relevant period is the accounting period in respect of which the tax was due.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-32-3"><num>(3)</num><content><p>In a case where the amount of any penalty or interest falls to be calculated by reference to tax which was not paid at the time it should have been and that tax cannot be readily attributed to any one or more accounting periods, it shall be treated for the purposes of this Part of this Act as tax due for such period or periods as the Commissioners may determine to the best of their judgment and notify to the person liable for the tax and penalty or interest.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-32-4"><num>(4)</num><content><p>Where a person is assessed under this paragraph to an amount due by way of any penalty or interest falling within sub-paragraph (2) above and is also assessed under subsection (1) or (2) of section 50 of this Act for the accounting period which is the relevant period under sub-paragraph (2) above, the assessments may be combined and notified to him as one assessment, but the amount of the penalty or interest shall be separately identified in the notice.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-32-5"><num>(5)</num><content><p>Sub-paragraph (6) below applies in the case of an amount due by way of interest under paragraph 27 above.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-32-6"><num>(6)</num><intro><p>Where this sub-paragraph applies in the case of an amount—</p></intro><level class="para1" eId="schedule-5-paragraph-32-6-a"><num>(a)</num><content><p>a notice of assessment under this paragraph shall specify a date, being not later than the date of the notice, to which the amount of interest which is assessed is calculated, and</p></content></level><level class="para1" eId="schedule-5-paragraph-32-6-b"><num>(b)</num><content><p>if the interest continues to accrue after that date, a further assessment or further assessments may be made under this paragraph in respect of amounts which so accrue.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-32-7"><num>(7)</num><content><p>If, within such period as may be notified by the Commissioners to the person liable for the interest under paragraph 27 above, the amount referred to in paragraph 27(2), (4), (6), (8) or (10) above (as the case may be) is paid, it shall be treated for the purposes of paragraph 27 above as paid on the date specified as mentioned in sub-paragraph (6)(a) above.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-32-8"><num>(8)</num><content><p>Where an amount has been assessed and notified to any person under this paragraph it shall be recoverable as if it were tax due from him unless, or except to the extent that, the assessment has subsequently been withdrawn or reduced.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-32-9"><num>(9)</num><content><p>Subsection (8) of section 50 of this Act shall apply for the purposes of this paragraph as it applies for the purposes of that section.</p></content></subparagraph></paragraph>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="schedule-5-part-VII-crossheading-assessments-time-limits"><heading>Assessments: time limits</heading><paragraph eId="schedule-5-paragraph-33" class="schProv1"><num>33</num><subparagraph eId="schedule-5-paragraph-33-1"><num>(1)</num><intro><p>Subject to the following provisions of this paragraph, an assessment under—</p></intro><level class="para1" eId="schedule-5-paragraph-33-1-a"><num>(a)</num><content><p>any provision of section 50 of this Act, or</p></content></level><level class="para1" eId="schedule-5-paragraph-33-1-b"><num>(b)</num><content><p>paragraph 32 above,</p></content></level><wrapUp><p>shall not be made more than six years after the end of the accounting period concerned or, in the case of an assessment under paragraph 32 above of an amount due by way of a penalty which is not a penalty referred to in sub-paragraph (2) of that paragraph, six years after the event giving rise to the penalty.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-33-2"><num>(2)</num><intro><p>Subject to sub-paragraph (5) below, an assessment under paragraph 32 above of—</p></intro><level class="para1" eId="schedule-5-paragraph-33-2-a"><num>(a)</num><content><p>an amount due by way of any penalty referred to in sub-paragraph (2) of that paragraph, or</p></content></level><level class="para1" eId="schedule-5-paragraph-33-2-b"><num>(b)</num><content><p>an amount due by way of interest,</p></content></level><wrapUp><p>may be made at any time before the expiry of the period of two years beginning with the time when the amount of tax due for the accounting period concerned has been finally determined.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-33-3"><num>(3)</num><content><p>In relation to an assessment under paragraph 32 above, any reference in sub-paragraph (1) or (2) above to the accounting period concerned is a reference to that period which, in the case of the penalty or interest concerned, is the relevant period referred to in sub-paragraph (2) of that paragraph.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-33-4"><num>(4)</num><intro><p>Subject to sub-paragraph (5) below, if tax has been lost—</p></intro><level class="para1" eId="schedule-5-paragraph-33-4-a"><num>(a)</num><content><p>as a result of conduct falling within paragraph 18(1) above or for which a person has been convicted of fraud, or</p></content></level><level class="para1" eId="schedule-5-paragraph-33-4-b"><num>(b)</num><content><p>in circumstances giving rise to liability to a penalty under paragraph 21 above,</p></content></level><wrapUp><p>an assessment may be made as if, in sub-paragraph (1) above, each reference to six years were a reference to twenty years.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-33-5"><num>(5)</num><intro><p>Where after a person’s death the Commissioners propose to assess an amount as due by reason of some conduct of the deceased—</p></intro><level class="para1" eId="schedule-5-paragraph-33-5-a"><num>(a)</num><content><p>the assessment shall not be made more than three years after the death, and</p></content></level><level class="para1" eId="schedule-5-paragraph-33-5-b"><num>(b)</num><content><p>if the circumstances are as set out in sub-paragraph (4) above, the modification of sub-paragraph (1) above contained in that sub-paragraph shall not apply but any assessment which (from the point of view of time limits) could have been made immediately after the death may be made at any time within three years after it.</p></content></level></subparagraph></paragraph></hcontainer>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-5-paragraph-33" class="schProv1"><num>33</num><subparagraph eId="schedule-5-paragraph-33-1"><num>(1)</num><intro><p>Subject to the following provisions of this paragraph, an assessment under—</p></intro><level class="para1" eId="schedule-5-paragraph-33-1-a"><num>(a)</num><content><p>any provision of section 50 of this Act, or</p></content></level><level class="para1" eId="schedule-5-paragraph-33-1-b"><num>(b)</num><content><p>paragraph 32 above,</p></content></level><wrapUp><p>shall not be made more than six years after the end of the accounting period concerned or, in the case of an assessment under paragraph 32 above of an amount due by way of a penalty which is not a penalty referred to in sub-paragraph (2) of that paragraph, six years after the event giving rise to the penalty.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-33-2"><num>(2)</num><intro><p>Subject to sub-paragraph (5) below, an assessment under paragraph 32 above of—</p></intro><level class="para1" eId="schedule-5-paragraph-33-2-a"><num>(a)</num><content><p>an amount due by way of any penalty referred to in sub-paragraph (2) of that paragraph, or</p></content></level><level class="para1" eId="schedule-5-paragraph-33-2-b"><num>(b)</num><content><p>an amount due by way of interest,</p></content></level><wrapUp><p>may be made at any time before the expiry of the period of two years beginning with the time when the amount of tax due for the accounting period concerned has been finally determined.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-33-3"><num>(3)</num><content><p>In relation to an assessment under paragraph 32 above, any reference in sub-paragraph (1) or (2) above to the accounting period concerned is a reference to that period which, in the case of the penalty or interest concerned, is the relevant period referred to in sub-paragraph (2) of that paragraph.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-33-4"><num>(4)</num><intro><p>Subject to sub-paragraph (5) below, if tax has been lost—</p></intro><level class="para1" eId="schedule-5-paragraph-33-4-a"><num>(a)</num><content><p>as a result of conduct falling within paragraph 18(1) above or for which a person has been convicted of fraud, or</p></content></level><level class="para1" eId="schedule-5-paragraph-33-4-b"><num>(b)</num><content><p>in circumstances giving rise to liability to a penalty under paragraph 21 above,</p></content></level><wrapUp><p>an assessment may be made as if, in sub-paragraph (1) above, each reference to six years were a reference to twenty years.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-33-5"><num>(5)</num><intro><p>Where after a person’s death the Commissioners propose to assess an amount as due by reason of some conduct of the deceased—</p></intro><level class="para1" eId="schedule-5-paragraph-33-5-a"><num>(a)</num><content><p>the assessment shall not be made more than three years after the death, and</p></content></level><level class="para1" eId="schedule-5-paragraph-33-5-b"><num>(b)</num><content><p>if the circumstances are as set out in sub-paragraph (4) above, the modification of sub-paragraph (1) above contained in that sub-paragraph shall not apply but any assessment which (from the point of view of time limits) could have been made immediately after the death may be made at any time within three years after it.</p></content></level></subparagraph></paragraph>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="schedule-5-part-VII-crossheading-supplementary-assessments"><heading>Supplementary assessments</heading><paragraph eId="schedule-5-paragraph-34" class="schProv1"><num>34</num><intro><p>If, otherwise than in circumstances falling within subsection (5)(b) of section 50 of this Act, it appears to the Commissioners that the amount which ought to have been assessed in an assessment under any provision of that section or under paragraph 32 above exceeds the amount which was so assessed, then—</p></intro><level class="para1" eId="schedule-5-paragraph-34-a"><num>(a)</num><content><p>under the like provision as that assessment was made, and</p></content></level><level class="para1" eId="schedule-5-paragraph-34-b"><num>(b)</num><content><p>on or before the last day on which that assessment could have been made,</p></content></level><wrapUp><p>the Commissioners may make a supplementary assessment of the amount of the excess and shall notify the person concerned accordingly.</p></wrapUp></paragraph></hcontainer>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-5-paragraph-34" class="schProv1"><num>34</num><intro><p>If, otherwise than in circumstances falling within subsection (5)(b) of section 50 of this Act, it appears to the Commissioners that the amount which ought to have been assessed in an assessment under any provision of that section or under paragraph 32 above exceeds the amount which was so assessed, then—</p></intro><level class="para1" eId="schedule-5-paragraph-34-a"><num>(a)</num><content><p>under the like provision as that assessment was made, and</p></content></level><level class="para1" eId="schedule-5-paragraph-34-b"><num>(b)</num><content><p>on or before the last day on which that assessment could have been made,</p></content></level><wrapUp><p>the Commissioners may make a supplementary assessment of the amount of the excess and shall notify the person concerned accordingly.</p></wrapUp></paragraph>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-5-paragraph-34-a"><num>(a)</num><content><p>under the like provision as that assessment was made, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-5-paragraph-34-b"><num>(b)</num><content><p>on or before the last day on which that assessment could have been made,</p></content></level>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="schedule-5-part-VII-crossheading-disclosure-of-information"><heading>Disclosure of information</heading><paragraph eId="schedule-5-paragraph-35" class="schProv1"><num>35</num><subparagraph eId="schedule-5-paragraph-35-1"><num>(1)</num><intro><p>Notwithstanding any obligation not to disclose information that would otherwise apply, the Commissioners may disclose information to—</p></intro><level class="para1" eId="schedule-5-paragraph-35-1-a"><num>(a)</num><content><p>the Secretary of State,</p></content></level><level class="para1" eId="schedule-5-paragraph-35-1-b"><num>(b)</num><content><p>the Environment Agency,</p></content></level><level class="para1" eId="schedule-5-paragraph-35-1-c"><num>(c)</num><content><p>the Scottish Environment Protection Agency,</p></content></level><level class="para1" eId="schedule-5-paragraph-35-1-d"><num>(d)</num><content><p>the Department of the Environment for Northern Ireland,</p></content></level><level class="para1" eId="schedule-5-paragraph-35-1-e"><num>(e)</num><content><p>a district council in Northern Ireland, or</p></content></level><level class="para1" eId="schedule-5-paragraph-35-1-f"><num>(f)</num><content><p>an authorised officer of any person (a principal) mentioned in paragraphs (a) to (e) above,</p></content></level><wrapUp><p>for the purpose of assisting the principal concerned in the performance of the principal’s duties.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-35-2"><num>(2)</num><content><p>Notwithstanding any such obligation as is mentioned in sub-paragraph (1) above, any person mentioned in sub-paragraph (1)(a) to (f) above may disclose information to the Commissioners or to an authorised officer of the Commissioners for the purpose of assisting the Commissioners in the performance of duties in relation to tax.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-35-3"><num>(3)</num><intro><p>Information that has been disclosed to a person by virtue of this paragraph shall not be disclosed by him except—</p></intro><level class="para1" eId="schedule-5-paragraph-35-3-a"><num>(a)</num><content><p>to another person to whom (instead of him) disclosure could by virtue of this paragraph have been made, or</p></content></level><level class="para1" eId="schedule-5-paragraph-35-3-b"><num>(b)</num><content><p>for the purpose of any proceedings connected with the operation of any provision of, or made under, any enactment in relation to the environment or to tax.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-35-4"><num>(4)</num><content><p>References in the preceding provisions of this paragraph to an authorised officer of any person (the principal) are to any person who has been designated by the principal as a person to and by whom information may be disclosed by virtue of this paragraph.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-35-5"><num>(5)</num><content><p>The Secretary of State shall notify the Commissioners in writing of the name of any person designated by the Secretary of State under sub-paragraph (4) above.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-35-6"><num>(6)</num><content><p>No charge may be made for a disclosure made by virtue of this paragraph.</p></content></subparagraph></paragraph></hcontainer>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-5-paragraph-35" class="schProv1"><num>35</num><subparagraph eId="schedule-5-paragraph-35-1"><num>(1)</num><intro><p>Notwithstanding any obligation not to disclose information that would otherwise apply, the Commissioners may disclose information to—</p></intro><level class="para1" eId="schedule-5-paragraph-35-1-a"><num>(a)</num><content><p>the Secretary of State,</p></content></level><level class="para1" eId="schedule-5-paragraph-35-1-b"><num>(b)</num><content><p>the Environment Agency,</p></content></level><level class="para1" eId="schedule-5-paragraph-35-1-c"><num>(c)</num><content><p>the Scottish Environment Protection Agency,</p></content></level><level class="para1" eId="schedule-5-paragraph-35-1-d"><num>(d)</num><content><p>the Department of the Environment for Northern Ireland,</p></content></level><level class="para1" eId="schedule-5-paragraph-35-1-e"><num>(e)</num><content><p>a district council in Northern Ireland, or</p></content></level><level class="para1" eId="schedule-5-paragraph-35-1-f"><num>(f)</num><content><p>an authorised officer of any person (a principal) mentioned in paragraphs (a) to (e) above,</p></content></level><wrapUp><p>for the purpose of assisting the principal concerned in the performance of the principal’s duties.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-35-2"><num>(2)</num><content><p>Notwithstanding any such obligation as is mentioned in sub-paragraph (1) above, any person mentioned in sub-paragraph (1)(a) to (f) above may disclose information to the Commissioners or to an authorised officer of the Commissioners for the purpose of assisting the Commissioners in the performance of duties in relation to tax.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-35-3"><num>(3)</num><intro><p>Information that has been disclosed to a person by virtue of this paragraph shall not be disclosed by him except—</p></intro><level class="para1" eId="schedule-5-paragraph-35-3-a"><num>(a)</num><content><p>to another person to whom (instead of him) disclosure could by virtue of this paragraph have been made, or</p></content></level><level class="para1" eId="schedule-5-paragraph-35-3-b"><num>(b)</num><content><p>for the purpose of any proceedings connected with the operation of any provision of, or made under, any enactment in relation to the environment or to tax.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-35-4"><num>(4)</num><content><p>References in the preceding provisions of this paragraph to an authorised officer of any person (the principal) are to any person who has been designated by the principal as a person to and by whom information may be disclosed by virtue of this paragraph.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-35-5"><num>(5)</num><content><p>The Secretary of State shall notify the Commissioners in writing of the name of any person designated by the Secretary of State under sub-paragraph (4) above.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-35-6"><num>(6)</num><content><p>No charge may be made for a disclosure made by virtue of this paragraph.</p></content></subparagraph></paragraph>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="schedule-5-part-VII-crossheading-the-register-publication"><heading>The register: publication</heading><paragraph eId="schedule-5-paragraph-36" class="schProv1"><num>36</num><subparagraph eId="schedule-5-paragraph-36-1"><num>(1)</num><intro><p>The Commissioners may publish, by such means as they think fit, information which—</p></intro><level class="para1" eId="schedule-5-paragraph-36-1-a"><num>(a)</num><content><p>is derived from the register kept under section 47 of this Act, and</p></content></level><level class="para1" eId="schedule-5-paragraph-36-1-b"><num>(b)</num><content><p>falls within any of the descriptions set out below.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-36-2"><num>(2)</num><intro><p>The descriptions are—</p></intro><level class="para1" eId="schedule-5-paragraph-36-2-a"><num>(a)</num><content><p>the names of registered persons;</p></content></level><level class="para1" eId="schedule-5-paragraph-36-2-b"><num>(b)</num><content><p>the addresses of any sites or other premises at which they carry on business;</p></content></level><level class="para1" eId="schedule-5-paragraph-36-2-c"><num>(c)</num><content><p>the registration numbers assigned to them in the register;</p></content></level><level class="para1" eId="schedule-5-paragraph-36-2-d"><num>(d)</num><content><p>the fact (where it is the case) that the registered person is a body corporate which under section 59 of this Act is treated as a member of a group;</p></content></level><level class="para1" eId="schedule-5-paragraph-36-2-e"><num>(e)</num><content><p>the names of the other bodies corporate treated under that section as members of the group;</p></content></level><level class="para1" eId="schedule-5-paragraph-36-2-f"><num>(f)</num><content><p>the addresses of any sites or other premises at which those other bodies carry on business.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-36-3"><num>(3)</num><content><p>Information may be published in accordance with this paragraph notwithstanding any obligation not to disclose the information that would otherwise apply.</p></content></subparagraph></paragraph></hcontainer>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-5-paragraph-36" class="schProv1"><num>36</num><subparagraph eId="schedule-5-paragraph-36-1"><num>(1)</num><intro><p>The Commissioners may publish, by such means as they think fit, information which—</p></intro><level class="para1" eId="schedule-5-paragraph-36-1-a"><num>(a)</num><content><p>is derived from the register kept under section 47 of this Act, and</p></content></level><level class="para1" eId="schedule-5-paragraph-36-1-b"><num>(b)</num><content><p>falls within any of the descriptions set out below.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-36-2"><num>(2)</num><intro><p>The descriptions are—</p></intro><level class="para1" eId="schedule-5-paragraph-36-2-a"><num>(a)</num><content><p>the names of registered persons;</p></content></level><level class="para1" eId="schedule-5-paragraph-36-2-b"><num>(b)</num><content><p>the addresses of any sites or other premises at which they carry on business;</p></content></level><level class="para1" eId="schedule-5-paragraph-36-2-c"><num>(c)</num><content><p>the registration numbers assigned to them in the register;</p></content></level><level class="para1" eId="schedule-5-paragraph-36-2-d"><num>(d)</num><content><p>the fact (where it is the case) that the registered person is a body corporate which under section 59 of this Act is treated as a member of a group;</p></content></level><level class="para1" eId="schedule-5-paragraph-36-2-e"><num>(e)</num><content><p>the names of the other bodies corporate treated under that section as members of the group;</p></content></level><level class="para1" eId="schedule-5-paragraph-36-2-f"><num>(f)</num><content><p>the addresses of any sites or other premises at which those other bodies carry on business.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-36-3"><num>(3)</num><content><p>Information may be published in accordance with this paragraph notwithstanding any obligation not to disclose the information that would otherwise apply.</p></content></subparagraph></paragraph>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="schedule-5-part-VII-crossheading-evidence-by-certificate-etc"><heading>Evidence by certificate etc.</heading><paragraph eId="schedule-5-paragraph-37" class="schProv1"><num>37</num><subparagraph eId="schedule-5-paragraph-37-1"><num>(1)</num><intro><p>A certificate of the Commissioners—</p></intro><level class="para1" eId="schedule-5-paragraph-37-1-a"><num>(a)</num><content><p>that a person was or was not at any time registered under section 47 of this Act,</p></content></level><level class="para1" eId="schedule-5-paragraph-37-1-b"><num>(b)</num><content><p>that any return required by regulations made under section 49 of this Act has not been made or had not been made at any time, or</p></content></level><level class="para1" eId="schedule-5-paragraph-37-1-c"><num>(c)</num><content><p>that any tax shown as due in a return made in pursuance of regulations made under section 49 of this Act, or in an assessment made under section 50 of this Act, has not been paid,</p></content></level><wrapUp><p>shall be sufficient evidence of that fact until the contrary is proved.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-37-2"><num>(2)</num><content><p>A photograph of any document furnished to the Commissioners for the purposes of this Part of this Act and certified by them to be such a photograph shall be admissible in any proceedings, whether civil or criminal, to the same extent as the document itself.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-37-3"><num>(3)</num><content><p>Any document purporting to be a certificate under sub-paragraph (1) or (2) above shall be taken to be such a certificate until the contrary is proved.</p></content></subparagraph></paragraph></hcontainer>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-5-paragraph-37" class="schProv1"><num>37</num><subparagraph eId="schedule-5-paragraph-37-1"><num>(1)</num><intro><p>A certificate of the Commissioners—</p></intro><level class="para1" eId="schedule-5-paragraph-37-1-a"><num>(a)</num><content><p>that a person was or was not at any time registered under section 47 of this Act,</p></content></level><level class="para1" eId="schedule-5-paragraph-37-1-b"><num>(b)</num><content><p>that any return required by regulations made under section 49 of this Act has not been made or had not been made at any time, or</p></content></level><level class="para1" eId="schedule-5-paragraph-37-1-c"><num>(c)</num><content><p>that any tax shown as due in a return made in pursuance of regulations made under section 49 of this Act, or in an assessment made under section 50 of this Act, has not been paid,</p></content></level><wrapUp><p>shall be sufficient evidence of that fact until the contrary is proved.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-37-2"><num>(2)</num><content><p>A photograph of any document furnished to the Commissioners for the purposes of this Part of this Act and certified by them to be such a photograph shall be admissible in any proceedings, whether civil or criminal, to the same extent as the document itself.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-37-3"><num>(3)</num><content><p>Any document purporting to be a certificate under sub-paragraph (1) or (2) above shall be taken to be such a certificate until the contrary is proved.</p></content></subparagraph></paragraph>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="schedule-5-part-VII-crossheading-service-of-notices-etc"><heading>Service of notices etc.</heading><paragraph eId="schedule-5-paragraph-38" class="schProv1"><num>38</num><content><p>Any notice, notification or requirement to be served on, given to or made of any person for the purposes of this Part of this Act may be served, given or made by sending it by post in a letter addressed to that person at his last or usual residence or place of business.</p></content></paragraph><paragraph eId="schedule-5-paragraph-39" class="schProv1"><num>39</num><subparagraph eId="schedule-5-paragraph-39-1"><num>(1)</num><content><p>This paragraph applies to directions, specifications and conditions which the Commissioners or an authorised person may give or impose under any provision of this Part.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-39-2"><num>(2)</num><content><p>A direction, specification or condition given or imposed by the Commissioners may be withdrawn or varied by them.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-39-3"><num>(3)</num><content><p>A direction, specification or condition given or imposed by an authorised person may be withdrawn or varied by him or by another authorised person.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-39-4"><num>(4)</num><intro><p>No direction, specification or condition shall have effect as regards any person it is intended to affect unless—</p></intro><level class="para1" eId="schedule-5-paragraph-39-4-a"><num>(a)</num><content><p>a notice containing it is served on him, or</p></content></level><level class="para1" eId="schedule-5-paragraph-39-4-b"><num>(b)</num><content><p>other reasonable steps are taken with a view to bringing it to his attention.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-39-5"><num>(5)</num><intro><p>No withdrawal or variation of a direction, specification or condition shall have effect as regards any person the withdrawal or variation is intended to affect unless—</p></intro><level class="para1" eId="schedule-5-paragraph-39-5-a"><num>(a)</num><content><p>a notice containing the withdrawal or variation is served on him, or</p></content></level><level class="para1" eId="schedule-5-paragraph-39-5-b"><num>(b)</num><content><p>other reasonable steps are taken with a view to bringing the withdrawal or variation to his attention.</p></content></level></subparagraph></paragraph></hcontainer>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-5-paragraph-38" class="schProv1"><num>38</num><content><p>Any notice, notification or requirement to be served on, given to or made of any person for the purposes of this Part of this Act may be served, given or made by sending it by post in a letter addressed to that person at his last or usual residence or place of business.</p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-5-paragraph-39" class="schProv1"><num>39</num><subparagraph eId="schedule-5-paragraph-39-1"><num>(1)</num><content><p>This paragraph applies to directions, specifications and conditions which the Commissioners or an authorised person may give or impose under any provision of this Part.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-39-2"><num>(2)</num><content><p>A direction, specification or condition given or imposed by the Commissioners may be withdrawn or varied by them.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-39-3"><num>(3)</num><content><p>A direction, specification or condition given or imposed by an authorised person may be withdrawn or varied by him or by another authorised person.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-39-4"><num>(4)</num><intro><p>No direction, specification or condition shall have effect as regards any person it is intended to affect unless—</p></intro><level class="para1" eId="schedule-5-paragraph-39-4-a"><num>(a)</num><content><p>a notice containing it is served on him, or</p></content></level><level class="para1" eId="schedule-5-paragraph-39-4-b"><num>(b)</num><content><p>other reasonable steps are taken with a view to bringing it to his attention.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-39-5"><num>(5)</num><intro><p>No withdrawal or variation of a direction, specification or condition shall have effect as regards any person the withdrawal or variation is intended to affect unless—</p></intro><level class="para1" eId="schedule-5-paragraph-39-5-a"><num>(a)</num><content><p>a notice containing the withdrawal or variation is served on him, or</p></content></level><level class="para1" eId="schedule-5-paragraph-39-5-b"><num>(b)</num><content><p>other reasonable steps are taken with a view to bringing the withdrawal or variation to his attention.</p></content></level></subparagraph></paragraph>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="schedule-5-part-VII-crossheading-no-deduction-of-penalties-or-interest"><heading>No deduction of penalties or interest</heading><paragraph eId="schedule-5-paragraph-40" class="schProv1"><num>40</num><content><p><mod>In section 827 of the Taxes Act 1988 (no deduction for penalties etc.) the following subsection shall be inserted after subsection (1B)—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1C)</num><intro><p>Where a person is liable to make a payment by way of—</p></intro><level class="para1"><num>(a)</num><content><p>penalty under Part V of Schedule 5 to the Finance Act 1996 (landfill tax), or</p></content></level><level class="para1"><num>(b)</num><content><p>interest under paragraph 26 or 27 of that Schedule,</p></content></level><wrapUp><p>the payment shall not be allowed as a deduction in computing any income, profits or losses for any tax purposes.</p></wrapUp></subsection></quotedStructure></mod></p></content></paragraph></hcontainer>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-5-paragraph-40" class="schProv1"><num>40</num><content><p><mod>In section 827 of the Taxes Act 1988 (no deduction for penalties etc.) the following subsection shall be inserted after subsection (1B)—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1C)</num><intro><p>Where a person is liable to make a payment by way of—</p></intro><level class="para1"><num>(a)</num><content><p>penalty under Part V of Schedule 5 to the Finance Act 1996 (landfill tax), or</p></content></level><level class="para1"><num>(b)</num><content><p>interest under paragraph 26 or 27 of that Schedule,</p></content></level><wrapUp><p>the payment shall not be allowed as a deduction in computing any income, profits or losses for any tax purposes.</p></wrapUp></subsection></quotedStructure></mod></p></content></paragraph>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="schedule-5-part-VII-crossheading-destination-of-receipts"><heading>Destination of receipts</heading><paragraph eId="schedule-5-paragraph-41" class="schProv1"><num>41</num><intro><p>All money and securities for money collected or received for or on account of the tax shall—</p></intro><level class="para1" eId="schedule-5-paragraph-41-a"><num>(a)</num><content><p>if collected or received in Great Britain, be placed to the general account of the Commissioners kept at the Bank of England under section 17 of the <noteRef href="#m00210" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Customs and Excise Management Act 1979;</p></content></level><level class="para1" eId="schedule-5-paragraph-41-b"><num>(b)</num><content><p>if collected or received in Northern Ireland, be paid into the Consolidated Fund of the United Kingdom in such manner as the Treasury may direct.</p></content></level></paragraph></hcontainer>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-5-paragraph-41" class="schProv1"><num>41</num><intro><p>All money and securities for money collected or received for or on account of the tax shall—</p></intro><level class="para1" eId="schedule-5-paragraph-41-a"><num>(a)</num><content><p>if collected or received in Great Britain, be placed to the general account of the Commissioners kept at the Bank of England under section 17 of the <noteRef href="#m00210" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Customs and Excise Management Act 1979;</p></content></level><level class="para1" eId="schedule-5-paragraph-41-b"><num>(b)</num><content><p>if collected or received in Northern Ireland, be paid into the Consolidated Fund of the United Kingdom in such manner as the Treasury may direct.</p></content></level></paragraph>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="schedule-5-paragraph-41-a"><num>(a)</num><content><p>if collected or received in Great Britain, be placed to the general account of the Commissioners kept at the Bank of England under section 17 of the <noteRef href="#m00210" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Customs and Excise Management Act 1979;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-5-paragraph-41-b"><num>(b)</num><content><p>if collected or received in Northern Ireland, be paid into the Consolidated Fund of the United Kingdom in such manner as the Treasury may direct.</p></content></level>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="schedule-5-part-VII-crossheading-setoff-of-amounts"><heading>Set-off of amounts</heading><paragraph eId="schedule-5-paragraph-42" class="schProv1"><num>42</num><subparagraph eId="schedule-5-paragraph-42-1"><num>(1)</num><intro><p>Regulations may make provision in relation to any case where—</p></intro><level class="para1" eId="schedule-5-paragraph-42-1-a"><num>(a)</num><content><p>a person is under a duty to pay to the Commissioners at any time an amount or amounts in respect of landfill tax, and</p></content></level><level class="para1" eId="schedule-5-paragraph-42-1-b"><num>(b)</num><content><p>the Commissioners are under a duty to pay to that person at the same time an amount or amounts in respect of any tax (or taxes) under their care and management.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-42-2"><num>(2)</num><content><p>The regulations may provide that if the total of the amount or amounts mentioned in sub-paragraph (1)(a) above exceeds the total of the amount or amounts mentioned in sub-paragraph (1)(b) above, the latter shall be set off against the former.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-42-3"><num>(3)</num><content><p>The regulations may provide that if the total of the amount or amounts mentioned in sub-paragraph (1)(b) above exceeds the total of the amount or amounts mentioned in sub-paragraph (1)(a) above, the Commissioners may set off the latter in paying the former.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-42-4"><num>(4)</num><content><p>The regulations may provide that if the total of the amount or amounts mentioned in sub-paragraph (1)(a) above is the same as the total of the amount or amounts mentioned in sub-paragraph (1)(b) above no payment need be made in respect of the former or the latter.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-42-5"><num>(5)</num><content><p>The regulations may include provision treating any duty to pay mentioned in sub-paragraph (1) above as discharged accordingly.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-42-6"><num>(6)</num><content><p>References in sub-paragraph (1) above to an amount in respect of a particular tax include references not only to an amount of tax itself but also to other amounts such as interest and penalty.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-42-7"><num>(7)</num><content><p>In this paragraph “tax” includes “duty”.</p></content></subparagraph></paragraph><paragraph eId="schedule-5-paragraph-43" class="schProv1"><num>43</num><subparagraph eId="schedule-5-paragraph-43-1"><num>(1)</num><intro><p>Regulations may make provision in relation to any case where—</p></intro><level class="para1" eId="schedule-5-paragraph-43-1-a"><num>(a)</num><content><p>a person is under a duty to pay to the Commissioners at any time an amount or amounts in respect of any tax (or taxes) under their care and management, and</p></content></level><level class="para1" eId="schedule-5-paragraph-43-1-b"><num>(b)</num><content><p>the Commissioners are under a duty to pay to that person at the same time an amount or amounts in respect of landfill tax.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-43-2"><num>(2)</num><content><p>The regulations may provide that if the total of the amount or amounts mentioned in sub-paragraph (1)(a) above exceeds the total of the amount or amounts mentioned in sub-paragraph (1)(b) above, the latter shall be set off against the former.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-43-3"><num>(3)</num><content><p>The regulations may provide that if the total of the amount or amounts mentioned in sub-paragraph (1)(b) above exceeds the total of the amount or amounts mentioned in sub-paragraph (1)(a) above, the Commissioners may set off the latter in paying the former.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-43-4"><num>(4)</num><content><p>The regulations may provide that if the total of the amount or amounts mentioned in sub-paragraph (1)(a) above is the same as the total of the amount or amounts mentioned in sub-paragraph (1)(b) above no payment need be made in respect of the former or the latter.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-43-5"><num>(5)</num><content><p>The regulations may include provision treating any duty to pay mentioned in sub-paragraph (1) above as discharged accordingly.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-43-6"><num>(6)</num><content><p>References in sub-paragraph (1) above to an amount in respect of a particular tax include references not only to an amount of tax itself but also to other amounts such as interest and penalty.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-43-7"><num>(7)</num><content><p>In this paragraph “tax” includes “duty”.</p></content></subparagraph></paragraph></hcontainer>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-5-paragraph-42" class="schProv1"><num>42</num><subparagraph eId="schedule-5-paragraph-42-1"><num>(1)</num><intro><p>Regulations may make provision in relation to any case where—</p></intro><level class="para1" eId="schedule-5-paragraph-42-1-a"><num>(a)</num><content><p>a person is under a duty to pay to the Commissioners at any time an amount or amounts in respect of landfill tax, and</p></content></level><level class="para1" eId="schedule-5-paragraph-42-1-b"><num>(b)</num><content><p>the Commissioners are under a duty to pay to that person at the same time an amount or amounts in respect of any tax (or taxes) under their care and management.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-42-2"><num>(2)</num><content><p>The regulations may provide that if the total of the amount or amounts mentioned in sub-paragraph (1)(a) above exceeds the total of the amount or amounts mentioned in sub-paragraph (1)(b) above, the latter shall be set off against the former.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-42-3"><num>(3)</num><content><p>The regulations may provide that if the total of the amount or amounts mentioned in sub-paragraph (1)(b) above exceeds the total of the amount or amounts mentioned in sub-paragraph (1)(a) above, the Commissioners may set off the latter in paying the former.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-42-4"><num>(4)</num><content><p>The regulations may provide that if the total of the amount or amounts mentioned in sub-paragraph (1)(a) above is the same as the total of the amount or amounts mentioned in sub-paragraph (1)(b) above no payment need be made in respect of the former or the latter.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-42-5"><num>(5)</num><content><p>The regulations may include provision treating any duty to pay mentioned in sub-paragraph (1) above as discharged accordingly.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-42-6"><num>(6)</num><content><p>References in sub-paragraph (1) above to an amount in respect of a particular tax include references not only to an amount of tax itself but also to other amounts such as interest and penalty.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-42-7"><num>(7)</num><content><p>In this paragraph “tax” includes “duty”.</p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-5-paragraph-43" class="schProv1"><num>43</num><subparagraph eId="schedule-5-paragraph-43-1"><num>(1)</num><intro><p>Regulations may make provision in relation to any case where—</p></intro><level class="para1" eId="schedule-5-paragraph-43-1-a"><num>(a)</num><content><p>a person is under a duty to pay to the Commissioners at any time an amount or amounts in respect of any tax (or taxes) under their care and management, and</p></content></level><level class="para1" eId="schedule-5-paragraph-43-1-b"><num>(b)</num><content><p>the Commissioners are under a duty to pay to that person at the same time an amount or amounts in respect of landfill tax.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-43-2"><num>(2)</num><content><p>The regulations may provide that if the total of the amount or amounts mentioned in sub-paragraph (1)(a) above exceeds the total of the amount or amounts mentioned in sub-paragraph (1)(b) above, the latter shall be set off against the former.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-43-3"><num>(3)</num><content><p>The regulations may provide that if the total of the amount or amounts mentioned in sub-paragraph (1)(b) above exceeds the total of the amount or amounts mentioned in sub-paragraph (1)(a) above, the Commissioners may set off the latter in paying the former.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-43-4"><num>(4)</num><content><p>The regulations may provide that if the total of the amount or amounts mentioned in sub-paragraph (1)(a) above is the same as the total of the amount or amounts mentioned in sub-paragraph (1)(b) above no payment need be made in respect of the former or the latter.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-43-5"><num>(5)</num><content><p>The regulations may include provision treating any duty to pay mentioned in sub-paragraph (1) above as discharged accordingly.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-43-6"><num>(6)</num><content><p>References in sub-paragraph (1) above to an amount in respect of a particular tax include references not only to an amount of tax itself but also to other amounts such as interest and penalty.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-43-7"><num>(7)</num><content><p>In this paragraph “tax” includes “duty”.</p></content></subparagraph></paragraph>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="schedule-5-part-VII-crossheading-amounts-shown-as-tax-on-invoices"><heading>Amounts shown as tax on invoices</heading><paragraph eId="schedule-5-paragraph-44" class="schProv1"><num>44</num><subparagraph eId="schedule-5-paragraph-44-1"><num>(1)</num><intro><p>Where—</p></intro><level class="para1" eId="schedule-5-paragraph-44-1-a"><num>(a)</num><content><p>a registrable person issues an invoice showing an amount as tax chargeable on an event, and</p></content></level><level class="para1" eId="schedule-5-paragraph-44-1-b"><num>(b)</num><content><p>no tax is in fact chargeable on the event,</p></content></level><wrapUp><p>an amount equal to the amount shown as tax shall be recoverable from the person as a debt due to the Crown.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-44-2"><num>(2)</num><intro><p>Where—</p></intro><level class="para1" eId="schedule-5-paragraph-44-2-a"><num>(a)</num><content><p>a registrable person issues an invoice showing an amount as tax chargeable on a taxable disposal, and</p></content></level><level class="para1" eId="schedule-5-paragraph-44-2-b"><num>(b)</num><content><p>the amount shown as tax exceeds the amount of tax in fact chargeable on the disposal,</p></content></level><wrapUp><p>an amount equal to the excess shall be recoverable from the person as a debt due to the Crown.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-44-3"><num>(3)</num><content><p>References in this paragraph to an invoice are to any invoice, whether or not it is a landfill invoice within the meaning of section 61 of this Act.</p></content></subparagraph></paragraph></hcontainer>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-5-paragraph-44" class="schProv1"><num>44</num><subparagraph eId="schedule-5-paragraph-44-1"><num>(1)</num><intro><p>Where—</p></intro><level class="para1" eId="schedule-5-paragraph-44-1-a"><num>(a)</num><content><p>a registrable person issues an invoice showing an amount as tax chargeable on an event, and</p></content></level><level class="para1" eId="schedule-5-paragraph-44-1-b"><num>(b)</num><content><p>no tax is in fact chargeable on the event,</p></content></level><wrapUp><p>an amount equal to the amount shown as tax shall be recoverable from the person as a debt due to the Crown.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-44-2"><num>(2)</num><intro><p>Where—</p></intro><level class="para1" eId="schedule-5-paragraph-44-2-a"><num>(a)</num><content><p>a registrable person issues an invoice showing an amount as tax chargeable on a taxable disposal, and</p></content></level><level class="para1" eId="schedule-5-paragraph-44-2-b"><num>(b)</num><content><p>the amount shown as tax exceeds the amount of tax in fact chargeable on the disposal,</p></content></level><wrapUp><p>an amount equal to the excess shall be recoverable from the person as a debt due to the Crown.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-44-3"><num>(3)</num><content><p>References in this paragraph to an invoice are to any invoice, whether or not it is a landfill invoice within the meaning of section 61 of this Act.</p></content></subparagraph></paragraph>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="schedule-5-part-VII-crossheading-adjustment-of-contracts"><heading>Adjustment of contracts</heading><paragraph eId="schedule-5-paragraph-45" class="schProv1"><num>45</num><subparagraph eId="schedule-5-paragraph-45-1"><num>(1)</num><intro><p>This paragraph applies where—</p></intro><level class="para1" eId="schedule-5-paragraph-45-1-a"><num>(a)</num><content><p>material undergoes a landfill disposal,</p></content></level><level class="para1" eId="schedule-5-paragraph-45-1-b"><num>(b)</num><content><p>a payment falls to be made under a disposal contract relating to the material, and</p></content></level><level class="para1" eId="schedule-5-paragraph-45-1-c"><num>(c)</num><content><p>after the making of the contract there is a change in the tax chargeable on the landfill disposal.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-45-2"><num>(2)</num><content><p>In such a case the amount of any payment mentioned in sub-paragraph (1)(b) above shall be adjusted, unless the disposal contract otherwise provides, so as to reflect the tax chargeable on the landfill disposal.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-45-3"><num>(3)</num><intro><p>For the purposes of this paragraph a disposal contract relating to material is a contract providing for the disposal of the material, and it is immaterial—</p></intro><level class="para1" eId="schedule-5-paragraph-45-3-a"><num>(a)</num><content><p>when the contract was made;</p></content></level><level class="para1" eId="schedule-5-paragraph-45-3-b"><num>(b)</num><content><p>whether the contract also provides for other matters;</p></content></level><level class="para1" eId="schedule-5-paragraph-45-3-c"><num>(c)</num><content><p>whether the contract provides for a method of disposal and (if it does) what method it provides for.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-45-4"><num>(4)</num><intro><p>The reference in sub-paragraph (1) above to a change in the tax chargeable is a reference to a change—</p></intro><level class="para1" eId="schedule-5-paragraph-45-4-a"><num>(a)</num><content><p>to or from no tax being chargeable, or</p></content></level><level class="para1" eId="schedule-5-paragraph-45-4-b"><num>(b)</num><content><p>in the amount of tax chargeable.</p></content></level></subparagraph></paragraph><paragraph eId="schedule-5-paragraph-46" class="schProv1"><num>46</num><subparagraph eId="schedule-5-paragraph-46-1"><num>(1)</num><intro><p>This paragraph applies where—</p></intro><level class="para1" eId="schedule-5-paragraph-46-1-a"><num>(a)</num><content><p>work is carried out under a construction contract,</p></content></level><level class="para1" eId="schedule-5-paragraph-46-1-b"><num>(b)</num><content><p>as a result of the work, material undergoes a landfill disposal,</p></content></level><level class="para1" eId="schedule-5-paragraph-46-1-c"><num>(c)</num><content><p>the contract makes no provision as to the disposal of such material, and</p></content></level><level class="para1" eId="schedule-5-paragraph-46-1-d"><num>(d)</num><content><p>the contract was made on or before 29th November 1994 (when the proposal to create tax was announced).</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-46-2"><num>(2)</num><intro><p>In such a case the amount of any payment which falls to be made—</p></intro><level class="para1" eId="schedule-5-paragraph-46-2-a"><num>(a)</num><content><p>under the construction contract, and</p></content></level><level class="para1" eId="schedule-5-paragraph-46-2-b"><num>(b)</num><content><p>in respect of the work,</p></content></level><wrapUp><p>shall be adjusted, unless the contract otherwise provides, so as to reflect the tax (if any) chargeable on the disposal.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-46-3"><num>(3)</num><intro><p>For the purposes of this paragraph a construction contract is a contract under which all or any of the following work is to be carried out—</p></intro><level class="para1" eId="schedule-5-paragraph-46-3-a"><num>(a)</num><content><p>the preparation of a site;</p></content></level><level class="para1" eId="schedule-5-paragraph-46-3-b"><num>(b)</num><content><p>demolition;</p></content></level><level class="para1" eId="schedule-5-paragraph-46-3-c"><num>(c)</num><content><p>building;</p></content></level><level class="para1" eId="schedule-5-paragraph-46-3-d"><num>(d)</num><content><p>civil engineering.</p></content></level></subparagraph></paragraph></hcontainer>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-5-paragraph-45" class="schProv1"><num>45</num><subparagraph eId="schedule-5-paragraph-45-1"><num>(1)</num><intro><p>This paragraph applies where—</p></intro><level class="para1" eId="schedule-5-paragraph-45-1-a"><num>(a)</num><content><p>material undergoes a landfill disposal,</p></content></level><level class="para1" eId="schedule-5-paragraph-45-1-b"><num>(b)</num><content><p>a payment falls to be made under a disposal contract relating to the material, and</p></content></level><level class="para1" eId="schedule-5-paragraph-45-1-c"><num>(c)</num><content><p>after the making of the contract there is a change in the tax chargeable on the landfill disposal.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-45-2"><num>(2)</num><content><p>In such a case the amount of any payment mentioned in sub-paragraph (1)(b) above shall be adjusted, unless the disposal contract otherwise provides, so as to reflect the tax chargeable on the landfill disposal.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-45-3"><num>(3)</num><intro><p>For the purposes of this paragraph a disposal contract relating to material is a contract providing for the disposal of the material, and it is immaterial—</p></intro><level class="para1" eId="schedule-5-paragraph-45-3-a"><num>(a)</num><content><p>when the contract was made;</p></content></level><level class="para1" eId="schedule-5-paragraph-45-3-b"><num>(b)</num><content><p>whether the contract also provides for other matters;</p></content></level><level class="para1" eId="schedule-5-paragraph-45-3-c"><num>(c)</num><content><p>whether the contract provides for a method of disposal and (if it does) what method it provides for.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-45-4"><num>(4)</num><intro><p>The reference in sub-paragraph (1) above to a change in the tax chargeable is a reference to a change—</p></intro><level class="para1" eId="schedule-5-paragraph-45-4-a"><num>(a)</num><content><p>to or from no tax being chargeable, or</p></content></level><level class="para1" eId="schedule-5-paragraph-45-4-b"><num>(b)</num><content><p>in the amount of tax chargeable.</p></content></level></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-5-paragraph-46" class="schProv1"><num>46</num><subparagraph eId="schedule-5-paragraph-46-1"><num>(1)</num><intro><p>This paragraph applies where—</p></intro><level class="para1" eId="schedule-5-paragraph-46-1-a"><num>(a)</num><content><p>work is carried out under a construction contract,</p></content></level><level class="para1" eId="schedule-5-paragraph-46-1-b"><num>(b)</num><content><p>as a result of the work, material undergoes a landfill disposal,</p></content></level><level class="para1" eId="schedule-5-paragraph-46-1-c"><num>(c)</num><content><p>the contract makes no provision as to the disposal of such material, and</p></content></level><level class="para1" eId="schedule-5-paragraph-46-1-d"><num>(d)</num><content><p>the contract was made on or before 29th November 1994 (when the proposal to create tax was announced).</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-46-2"><num>(2)</num><intro><p>In such a case the amount of any payment which falls to be made—</p></intro><level class="para1" eId="schedule-5-paragraph-46-2-a"><num>(a)</num><content><p>under the construction contract, and</p></content></level><level class="para1" eId="schedule-5-paragraph-46-2-b"><num>(b)</num><content><p>in respect of the work,</p></content></level><wrapUp><p>shall be adjusted, unless the contract otherwise provides, so as to reflect the tax (if any) chargeable on the disposal.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-46-3"><num>(3)</num><intro><p>For the purposes of this paragraph a construction contract is a contract under which all or any of the following work is to be carried out—</p></intro><level class="para1" eId="schedule-5-paragraph-46-3-a"><num>(a)</num><content><p>the preparation of a site;</p></content></level><level class="para1" eId="schedule-5-paragraph-46-3-b"><num>(b)</num><content><p>demolition;</p></content></level><level class="para1" eId="schedule-5-paragraph-46-3-c"><num>(c)</num><content><p>building;</p></content></level><level class="para1" eId="schedule-5-paragraph-46-3-d"><num>(d)</num><content><p>civil engineering.</p></content></level></subparagraph></paragraph>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="schedule-5-part-VII-crossheading-adjustment-of-rent-etc"><heading>Adjustment of rent etc.</heading><paragraph eId="schedule-5-paragraph-47" class="schProv1"><num>47</num><subparagraph eId="schedule-5-paragraph-47-1"><num>(1)</num><intro><p>This paragraph applies where—</p></intro><level class="para1" eId="schedule-5-paragraph-47-1-a"><num>(a)</num><content><p>an agreement with regard to any sum payable in respect of the use of land (whether the sum is called rent or royalty or otherwise) provides that the amount of the sum is to be calculated by reference to the turnover of a business,</p></content></level><level class="para1" eId="schedule-5-paragraph-47-1-b"><num>(b)</num><content><p>the agreement was made on or before 29th November 1994 (when the proposal to create tax was announced), and</p></content></level><level class="para1" eId="schedule-5-paragraph-47-1-c"><num>(c)</num><content><p>the circumstances are such that (had the agreement been made after that date) it can reasonably be expected that it would have provided that tax be ignored in calculating the turnover.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-47-2"><num>(2)</num><content><p>In such a case the agreement shall be taken to provide that tax be ignored in calculating the turnover.</p></content></subparagraph></paragraph></hcontainer>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-5-paragraph-47" class="schProv1"><num>47</num><subparagraph eId="schedule-5-paragraph-47-1"><num>(1)</num><intro><p>This paragraph applies where—</p></intro><level class="para1" eId="schedule-5-paragraph-47-1-a"><num>(a)</num><content><p>an agreement with regard to any sum payable in respect of the use of land (whether the sum is called rent or royalty or otherwise) provides that the amount of the sum is to be calculated by reference to the turnover of a business,</p></content></level><level class="para1" eId="schedule-5-paragraph-47-1-b"><num>(b)</num><content><p>the agreement was made on or before 29th November 1994 (when the proposal to create tax was announced), and</p></content></level><level class="para1" eId="schedule-5-paragraph-47-1-c"><num>(c)</num><content><p>the circumstances are such that (had the agreement been made after that date) it can reasonably be expected that it would have provided that tax be ignored in calculating the turnover.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-47-2"><num>(2)</num><content><p>In such a case the agreement shall be taken to provide that tax be ignored in calculating the turnover.</p></content></subparagraph></paragraph>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="schedule" eId="schedule-6"><num>SCHEDULE 6<authorialNote class="referenceNote"><p>Section 73.</p></authorialNote></num><heading>Taxation of savings at the lower rate</heading><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-6-crossheading-the-taxes-management-act-1970-c-9"><heading>The Taxes Management Act <ref eId="c00003" href="http://www.legislation.gov.uk/id/ukpga/1970/9">1970 (c. 9)</ref></heading><paragraph eId="schedule-6-paragraph-1" class="schProv1"><num>1</num><content><p>In section 86 of the Taxes Management Act 1970 (interest on tax assessed in addition to deducted tax etc.), so far as it has effect without the substitutions made by paragraph 23 of Schedule 19 to the <noteRef href="#m00211" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1994 and section 110 of the <noteRef href="#m00212" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1995, in subsection (2)(b) after “the basic rate” there shall be inserted “or the lower rate”.</p></content></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-6-crossheading-the-taxes-act-1988"><heading>The Taxes Act 1988</heading><paragraph eId="schedule-6-paragraph-2" class="schProv1"><num>2</num><content><p>In section 4(2) of the Taxes Act 1988 (meaning of “relevant year of assessment” for the purposes of deductions etc.), for “subsection (1) above” there shall be substituted “this section”.</p></content></paragraph><paragraph eId="schedule-6-paragraph-3" class="schProv1"><num>3</num><content><p>In section 5(4) of that Act (time when tax in addition to deducted tax etc. becomes due), after “basic rate” there shall be inserted “or the lower rate”.</p></content></paragraph><paragraph eId="schedule-6-paragraph-4" class="schProv1"><num>4</num><subparagraph eId="schedule-6-paragraph-4-1"><num>(1)</num><content><p>Subject to sub-paragraph (2) below, in subsection (1)(b) of section 51B of that Act (periodic returns of tax on gilts), for “basic rate” there shall be substituted “lower rate”.</p></content></subparagraph><subparagraph eId="schedule-6-paragraph-4-2"><num>(2)</num><content><p>Sub-paragraph (1) above has effect for the purposes only of the exercise on or after the day on which this Act is passed of the Treasury’s power to make regulations under that section; but that power may be exercised on or after that day for the purpose of making provision, with retrospective effect, on the basis that the assumption to be applied in relation to all payments made on or after 6th April 1996 was an assumption that such payments bear tax at the lower rate.</p></content></subparagraph></paragraph><paragraph eId="schedule-6-paragraph-5" class="schProv1"><num>5</num><content><p>In paragraph (c) of section 246D(2) of that Act (application of section 207A to certain foreign income dividends), for the words from “as income” to the end of the paragraph there shall be substituted “(without prejudice to paragraph (a) above) as if it were income to which section 1A applies;”.</p></content></paragraph><paragraph eId="schedule-6-paragraph-6" class="schProv1"><num>6</num><content><p>In section 249(4)(c) of that Act (application of section 207A), for the words from “as income” to “but” there shall be substituted “(without prejudice to paragraph (a) above) as if it were income to which section 1A applies, but”.</p></content></paragraph><paragraph eId="schedule-6-paragraph-7" class="schProv1"><num>7</num><subparagraph eId="schedule-6-paragraph-7-1"><num>(1)</num><content><p>In subsection (2)(b)(ii) of section 326B of that Act (loss of exemption for TESSAs), for the words from “basic rate on” to the end of the sub-paragraph there shall be substituted “applicable rate on any interest or bonus paid on the account before that time;”.</p></content></subparagraph><subparagraph eId="schedule-6-paragraph-7-2"><num>(2)</num><content><p><mod>After subsection (2) of that section there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(2A)</num><intro><p>In subsection (2)(b)(ii) above “the applicable rate” means—</p></intro><level class="para1"><num>(a)</num><content><p>in the case of interest or bonus paid before 6th April 1996, the basic rate for the year of assessment in which the payment was made; and</p></content></level><level class="para1"><num>(b)</num><content><p>in any other case, the lower rate for the year of assessment in which it was made.</p></content></level></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-6-paragraph-7-3"><num>(3)</num><content><p>This paragraph has effect as respects withdrawals on or after 6th April 1996.</p></content></subparagraph></paragraph><paragraph eId="schedule-6-paragraph-8" class="schProv1"><num>8</num><content><p><mod>In section 350 of that Act (charge to tax where payments made subject to deduction), in subsection (1) for “basic rate” there shall be substituted “applicable rate”; and after that subsection there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1A)</num><content><p>In subsection (1) above “the applicable rate” means the rate which is applicable to the payment under section 4.</p></content></subsection></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-6-paragraph-9" class="schProv1"><num>9</num><content><p>In section 421(1)(c) of that Act (application of section 207A), for the words from “as income” to “but” there shall be substituted “(without prejudice to paragraph (b) above) as if it were income to which section 1A applies, but”.</p></content></paragraph><paragraph eId="schedule-6-paragraph-10" class="schProv1"><num>10</num><subparagraph eId="schedule-6-paragraph-10-1"><num>(1)</num><content><p><mod>In section 468 of that Act (authorised unit trusts to be subject to corporation tax), the following subsection shall be inserted after subsection (1)—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1A)</num><content><p>In relation to any authorised unit trust the rate of corporation tax for the financial year 1996 and subsequent financial years shall be deemed to be the rate at which income tax at the lower rate is charged for the year of assessment which begins on 6th April in the financial year concerned.</p></content></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-6-paragraph-10-2"><num>(2)</num><content><p>Sub-paragraph (1) above has effect in relation to any accounting period ending after 31st March 1996.</p></content></subparagraph><subparagraph eId="schedule-6-paragraph-10-3"><num>(3)</num><content><p>Sections 468E and 468EE of that Act (rate of corporation tax on authorised unit trusts) shall not apply in relation to any accounting period ending after 31st March 1996 except so far as those sections relate to the financial year 1995.</p></content></subparagraph></paragraph><paragraph eId="schedule-6-paragraph-11" class="schProv1"><num>11</num><subparagraph eId="schedule-6-paragraph-11-1"><num>(1)</num><content><p><mod>In section 468L of that Act (interest distributions), after subsection (1) there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1A)</num><content><p>For the purposes of this Chapter no amount shall be shown as so available unless the authorised unit trust in question satisfies the qualifying investments test throughout the distribution period.</p></content></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-6-paragraph-11-2"><num>(2)</num><content><p><mod>After subsection (7) of that section there shall be inserted the following subsections—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(8)</num><content><p>For the purposes of this section an authorised unit trust satisfies the qualifying investments test throughout a distribution period (“the relevant period”) if at all times in that period, the market value of the qualifying investments exceeds 60 per cent. of the market value of all the investments of that trust.</p></content></subsection><subsection><num>(9)</num><intro><p>Subject to subsection (13) below, in this section “qualifying investments”, in relation to an authorised unit trust, means the investments of that trust which are of any of the following descriptions—</p></intro><level class="para1"><num>(a)</num><content><p>money placed at interest;</p></content></level><level class="para1"><num>(b)</num><content><p>securities;</p></content></level><level class="para1"><num>(c)</num><content><p>shares in a building society;</p></content></level><level class="para1"><num>(d)</num><content><p>qualifying entitlements to a share in the investments of another authorised unit trust.</p></content></level></subsection><subsection><num>(10)</num><content><p>For the purposes of subsection (9) above an entitlement to a share in the investments of another authorised unit trust is a qualifying entitlement at any time in the relevant period if, and only if, the other authorised unit trust would itself (on the relevant assumption) satisfy the qualifying investments test throughout that period.</p></content></subsection><subsection><num>(11)</num><content><p>For the purposes of subsection (10) above the relevant assumption is that the only investments of the other authorised unit trust which are to be regarded as qualifying investments are those falling within paragraphs (a) to (c) of subsection (9) above.</p></content></subsection><subsection><num>(12)</num><content><p>In this section “security” does not include shares in a company; and references in this section to investments of an authorised unit trust are references to investments subject to the trusts of that authorised unit trust but do not include references to cash awaiting investment.</p></content></subsection><subsection><num>(13)</num><content><p>The Treasury may by order amend subsection (9) above so as to extend or restrict the descriptions of investments of an authorised unit trust that are qualifying investments.</p></content></subsection><subsection><num>(14)</num><intro><p>An order made by the Treasury under subsection (13) above may—</p></intro><level class="para1"><num>(a)</num><content><p>make different provision for different cases; and</p></content></level><level class="para1"><num>(b)</num><content><p>contain such incidental, supplemental, consequential and transitional provision as the Treasury may think fit;</p></content></level><wrapUp><p>and, without prejudice to the generality of paragraph (b) above, such an order may make such incidental modifications of subsection (11) above as the Treasury may think fit.</p></wrapUp></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-6-paragraph-11-3"><num>(3)</num><content><p>This paragraph has effect in relation to distribution periods ending on or after 1st April 1996.</p></content></subparagraph></paragraph><paragraph eId="schedule-6-paragraph-12" class="schProv1"><num>12</num><content><p>In section 469(2) of that Act (taxation of income of unauthorised unit trusts), after the words “unit holders)”, in the first place where they occur, there shall be inserted “and, in the case of income to which section 1A applies, chargeable to income tax at the basic rate, instead of at the lower rate”.</p></content></paragraph><paragraph eId="schedule-6-paragraph-13" class="schProv1"><num>13</num><content><p>In sections 549(2), 686(1), 699(2) and 819(2) of that Act (which refer to income tax being chargeable at the lower rate in accordance with section 207A), for “section 207A” there shall be substituted “section 1A”.</p></content></paragraph><paragraph eId="schedule-6-paragraph-14" class="schProv1"><num>14</num><subparagraph eId="schedule-6-paragraph-14-1"><num>(1)</num><content><p>In paragraph (a)(i) of subsection (2) of section 582 of that Act (funding bonds), for “basic” there shall be substituted “applicable”.</p></content></subparagraph><subparagraph eId="schedule-6-paragraph-14-2"><num>(2)</num><content><p><mod>After that subsection there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(2A)</num><content><p>In subsection (2) above “the applicable rate”, in relation to a year of assessment, means whichever of the basic rate and the lower rate for that year is the rate at which the person by or through whom the bonds are issued would have had to deduct income tax from the amount of interest in question if that amount had been actually paid by or through him.</p></content></subsection></quotedStructure></mod></p></content></subparagraph></paragraph><paragraph eId="schedule-6-paragraph-15" class="schProv1"><num>15</num><content><p><mod>In section 686 of that Act (liability to additional rate in the case of trustees of discretionary trusts), after subsection (2A) there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(2B)</num><intro><p>For the purposes of subsection (2A) above where the income tax borne by any income arising to trustees is limited in accordance with section 128 of the <noteRef href="#m00213" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1995 (limit on income chargeable on non-residents), the income arising to the trustees which shall be taken not to bear tax by reason wholly or partly of their not having been resident in the United Kingdom shall include so much of any income arising to them as—</p></intro><level class="para1"><num>(a)</num><content><p>is excluded income within the meaning of that section; and</p></content></level><level class="para1"><num>(b)</num><content><p>is not income which is treated for the purposes of subsection (1)(b) of that section as income the tax on which is deducted at source.</p></content></level></subsection></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-6-paragraph-16" class="schProv1"><num>16</num><content><p><mod>In Part XV of that Act (settlements), at the end of Chapter IC there shall be inserted the following Chapter—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><chapter><num>Chapter ID</num><heading>Trust management expenses</heading><section><num>689A</num><heading>Disregard of expenses where beneficiary non-resident</heading><subsection><num>(1)</num><intro><p>This section applies where—</p></intro><level class="para1"><num>(a)</num><content><p>there is income (“the distributed income”) arising to trustees in any year of assessment which (before being distributed) is income of a person (“the beneficiary”) other than the trustees;</p></content></level><level class="para1"><num>(b)</num><content><p>the trustees have any expenses in that year (“the management expenses”) which are properly chargeable to that income or would be so chargeable but for any express provisions of the trust; and</p></content></level><level class="para1"><num>(c)</num><intro><p>the beneficiary is not liable to income tax on an amount of the distributed income (“the untaxed income”) by reason wholly or partly of—</p></intro><level class="para2"><num>(i)</num><content><p>his not having been resident in the United Kingdom, or</p></content></level><level class="para2"><num>(ii)</num><content><p>his being deemed under any arrangements under section 788, or any arrangements having effect by virtue of that section, to have been resident in a territory outside the United Kingdom.</p></content></level></level></subsection><subsection><num>(2)</num><content><p>Where this section applies, there shall be disregarded in computing the income of the beneficiary for the purposes of the Income Tax Acts such part of the management expenses as bears the same proportion to all those expenses as the untaxed income bears to the distributed income.</p></content></subsection><subsection><num>(3)</num><content><p>For the purpose of computing the proportion mentioned in subsection (2) above, the amounts of the distributed income and of the untaxed income shall not, in either case, include so much (if any) of the income as is equal to the amount of income tax, or of any foreign tax, chargeable on the trustees (by way of deduction or otherwise) in respect of that income.</p></content></subsection><subsection><num>(4)</num><intro><p>In subsection (3) above, “foreign tax” means any tax which is—</p></intro><level class="para1"><num>(a)</num><content><p>of a similar character to income tax; and</p></content></level><level class="para1"><num>(b)</num><content><p>imposed by the laws of a territory outside the United Kingdom.</p></content></level></subsection><subsection><num>(5)</num><intro><p>For the purposes of this section, where the income tax chargeable on any person is limited in accordance with section 128 of the <noteRef href="#m00214" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1995 (limit on income chargeable on non-residents), the income of that person on which he is not liable to tax by reason of not having been resident in the United Kingdom shall be taken to include so much of any income of his as—</p></intro><level class="para1"><num>(a)</num><content><p>is excluded income within the meaning of that section; and</p></content></level><level class="para1"><num>(b)</num><content><p>is not income which is treated for the purposes of subsection (1)(b) of that section as income the tax on which is deducted at source.</p></content></level></subsection></section><section><num>689B</num><heading>Order in which expenses to be set against income</heading><subsection><num>(1)</num><intro><p>The expenses of any trustees in any year of assessment, so far as they are properly chargeable to income (or would be so chargeable but for any express provisions of the trust), shall be treated—</p></intro><level class="para1"><num>(a)</num><content><p>as set against so much (if any) of any income as is income falling within subsection (2) or (3) below before being set against other income; and</p></content></level><level class="para1"><num>(b)</num><content><p>as set against so much (if any) of any income as is income falling within subsection (2) below before being set against income falling within subsection (3) below.</p></content></level></subsection><subsection><num>(2)</num><intro><p>Income falls within this subsection if it is—</p></intro><level class="para1"><num>(a)</num><content><p>so much of the income of the trustees as is income the amount or value of which is determined in accordance with section 233(1A);</p></content></level><level class="para1"><num>(b)</num><content><p>income which is treated as having arisen to the trustees by virtue of section 246D(4) or 249(6); or</p></content></level><level class="para1"><num>(c)</num><content><p>income which is treated as received by the trustees by virtue of section 421(1)(a).</p></content></level></subsection><subsection><num>(3)</num><content><p>Income falls within this subsection if it is income to which section 1A applies but which does not fall within subsection (2) above.</p></content></subsection><subsection><num>(4)</num><intro><p>This section has effect—</p></intro><level class="para1"><num>(a)</num><content><p>subject to sections 686(2A) and 689A, but</p></content></level><level class="para1"><num>(b)</num><content><p>notwithstanding anything in section 1A(5) and (6).</p></content></level></subsection></section></chapter></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-6-paragraph-17" class="schProv1"><num>17</num><intro><p>In section 698A of that Act (taxation at the lower rate of the income of beneficiaries)—</p></intro><level class="para1" eId="schedule-6-paragraph-17-a"><num>(a)</num><content><p>in subsection (1), for the words from “section 207A” to the end there shall be substituted “section 1A shall have effect as if that income were income to which that section applies.”; and</p></content></level><level class="para1" eId="schedule-6-paragraph-17-b"><num>(b)</num><content><p>in subsection (2), for the words from “section 207A” to the end there shall be substituted “section 1A shall have effect as if the payment made to the trustee were income of the trustee to which that section applies.”</p></content></level></paragraph><paragraph eId="schedule-6-paragraph-18" class="schProv1"><num>18</num><subparagraph eId="schedule-6-paragraph-18-1"><num>(1)</num><content><p><mod>In subsection (1) of section 737 of that Act (deductions from manufactured payments), after “shall apply” there shall be inserted “(subject to subsection (1A) below)”, and for subsection (1A) of that section there shall be substituted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1A)</num><intro><p>The deduction of tax which is deemed to have been made under subsection (1) above shall be taken to have been made at the lower rate as if the deemed annual payment were income to which section 1A applied; and—</p></intro><level class="para1"><num>(a)</num><content><p>the reference to the applicable rate in subsection (1) of section 350, so far as it has effect by virtue of subsection (1) above, and</p></content></level><level class="para1"><num>(b)</num><content><p>Schedule 16, so far as it so has effect,</p></content></level><wrapUp><p>shall be construed accordingly.</p></wrapUp></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-6-paragraph-18-2"><num>(2)</num><content><p>This paragraph has effect in relation to payments on or after 6th April 1996.</p></content></subparagraph></paragraph><paragraph eId="schedule-6-paragraph-19" class="schProv1"><num>19</num><content><p>In section 737C(6) of that Act (computation of amount of deemed manufactured interest), for “basic” there shall be substituted “lower”.</p></content></paragraph><paragraph eId="schedule-6-paragraph-20" class="schProv1"><num>20</num><intro><p>In section 743(1) of that Act (supplemental provisions relating to transfers of assets abroad)—</p></intro><level class="para1" eId="schedule-6-paragraph-20-a"><num>(a)</num><content><p>after the words “the basic rate”, in the first place where they occur, there shall be inserted “or the lower rate”; and</p></content></level><level class="para1" eId="schedule-6-paragraph-20-b"><num>(b)</num><content><p>for “income that has borne tax at the basic rate”, there shall be substituted “any income to the extent that it has borne tax at that rate”.</p></content></level></paragraph><paragraph eId="schedule-6-paragraph-21" class="schProv1"><num>21</num><content><p><mod>In section 789(2) of that Act (old double taxation relief agreements), for “to bear income tax at the basic rate and” there shall be substituted <quotedText startQuote="“">—</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(a)</num><content><p>to bear income tax at the basic rate or, where that income is income to which section 1A applies, at the lower rate; and</p></content></level><level class="para1"><num>(b)</num><content><p/></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></paragraph><paragraph eId="schedule-6-paragraph-22" class="schProv1"><num>22</num><content><p>In paragraph (a) of section 821(1) of that Act (under-deductions from payments made before passing of annual Act to be charged under Case VI of Schedule D), for the words from “under Schedule D in respect” to the end of the paragraph there shall be substituted “under Case III of Schedule D in respect of those payments; and”.</p></content></paragraph><paragraph eId="schedule-6-paragraph-23" class="schProv1"><num>23</num><content><p>In section 822(1) of that Act (over-deductions from interest on loan capital etc. made before the passing of annual Act where basic rate for the year is lower than in the previous year), for “basic rate lower” there shall be substituted “lower rate less”.</p></content></paragraph><paragraph eId="schedule-6-paragraph-24" class="schProv1"><num>24</num><content><p>In section 835(6)(a) of that Act (estimating total income), after “basic rate” there shall be inserted “or the lower rate”.</p></content></paragraph><paragraph eId="schedule-6-paragraph-25" class="schProv1"><num>25</num><subparagraph eId="schedule-6-paragraph-25-1"><num>(1)</num><intro><p>In Schedule 3 to that Act (public revenue dividends etc.)—</p></intro><level class="para1" eId="schedule-6-paragraph-25-1-a"><num>(a)</num><content><p>in paragraph 1(c), for “basic” there shall be substituted “lower”;</p></content></level><level class="para1" eId="schedule-6-paragraph-25-1-b"><num>(b)</num><intro><p>in paragraph 6A—</p></intro><level class="para2" eId="schedule-6-paragraph-25-1-b-i"><num>(i)</num><content><p>in sub-paragraph (1), for “applicable” there shall be substituted “lower”; and</p></content></level><level class="para2" eId="schedule-6-paragraph-25-1-b-ii"><num>(ii)</num><content><p>sub-paragraph (4) shall cease to have effect.</p></content></level></level></subparagraph><subparagraph eId="schedule-6-paragraph-25-2"><num>(2)</num><content><p>This paragraph has effect in relation to payments made on or after 6th April 1996 and before the day on which this Act is passed.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-6-crossheading-the-finance-act-1989-c-26"><heading>The Finance Act <ref eId="c00004" href="http://www.legislation.gov.uk/id/ukpga/1989/26">1989 (c. 26)</ref></heading><paragraph eId="schedule-6-paragraph-26" class="schProv1"><num>26</num><subparagraph eId="schedule-6-paragraph-26-1"><num>(1)</num><content><p>In section 88(1) of the Finance Act 1989 (rate of corporation tax on policy holders' fraction of profits to be equal to the basic rate), after “subsection (2)” there shall be inserted “and section 88A”.</p></content></subparagraph><subparagraph eId="schedule-6-paragraph-26-2"><num>(2)</num><content><p><mod>After section 88 of that Act there shall be inserted the following section—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>88A</num><heading>Lower corporation tax rate on certain insurance company profits</heading><subsection><num>(1)</num><content><p>Subject to subsection (2) below, in the case of a company carrying on basic life assurance and general annuity business, the rate of corporation tax chargeable for any financial year on so much of the company’s BLAGAB profits for any accounting period as represents the company’s lower rate income for the period shall be deemed to be the rate at which income tax at the lower rate is charged for the year of assessment which begins on 6th April in the financial year concerned.</p></content></subsection><subsection><num>(2)</num><content><p>Subsection (1) above does not apply in relation to profits charged under Case I of Schedule D.</p></content></subsection><subsection><num>(3)</num><intro><p>In this section, references to a company’s lower rate income for any accounting period are references to so much of the income and gains of its basic life assurance and general annuity business for the period as consists in income of any of the following descriptions—</p></intro><level class="para1"><num>(a)</num><content><p>income falling within paragraph (a) of Case III of Schedule D, as that Case applies for the purposes of corporation tax;</p></content></level><level class="para1"><num>(b)</num><content><p>purchased life annuities to which section 656 of the Taxes Act 1988 applies or to which that section would apply but for section 657(2)(a) of that Act;</p></content></level><level class="para1"><num>(c)</num><content><p>any such dividends or other distributions of a company not resident in the United Kingdom as would be chargeable under Schedule F if the company were resident in the United Kingdom;</p></content></level><level class="para1"><num>(d)</num><intro><p>so much of—</p></intro><level class="para2"><num>(i)</num><content><p>any dividend distribution (within the meaning of section 468J of the Taxes Act 1988), or</p></content></level><level class="para2"><num>(ii)</num><content><p>any foreign income distribution (within the meaning of section 468K of that Act),</p></content></level><wrapUp><p>as is deemed by subsection (2) of section 468Q of that Act (or by that subsection as applied by section 468R(2) of that Act) to be an annual payment.</p></wrapUp></level></subsection><subsection><num>(4)</num><intro><p>Where for any period—</p></intro><level class="para1"><num>(a)</num><content><p>an insurance company’s basic life assurance and general annuity business is mutual business,</p></content></level><level class="para1"><num>(b)</num><content><p>the policy holders' share of the company’s relevant profits is equal to all those profits, or</p></content></level><level class="para1"><num>(c)</num><content><p>the policy holders' share of the company’s relevant profits is more than the company’s BLAGAB profits,</p></content></level><wrapUp><p>the amount to be taken for the purposes of this section as the amount of the company’s BLAGAB profits for that period representing its lower rate income for that period shall be the amount equal to the applicable proportion of its BLAGAB profits.</p></wrapUp></subsection><subsection><num>(5)</num><intro><p>Where subsection (4) above does not apply in the case of an insurance company for any period, the amount to be taken for the purposes of this section as the amount of the company’s BLAGAB profits for the period representing its lower rate income for that period shall be the amount produced by multiplying the following, that is to say—</p></intro><level class="para1"><num>(a)</num><content><p>the applicable proportion of those profits; and</p></content></level><level class="para1"><num>(b)</num><content><p>the fraction given by dividing the policy holders' share of the relevant profits of the company for the period by its BLAGAB profits for that period.</p></content></level></subsection><subsection><num>(6)</num><content><p>For the purposes of this section the applicable proportion of a company’s BLAGAB profits for any period is the amount which bears the same proportion to those profits as the aggregate amount of the company’s lower rate income for that period bears to the total income and gains for that period of the company’s basic life assurance and general annuity business.</p></content></subsection><subsection><num>(7)</num><intro><p>For the purposes of this section, the BLAGAB profits of a company for an accounting period are the income and gains of the company’s basic life assurance and general annuity business reduced by the aggregate amount of—</p></intro><level class="para1"><num>(a)</num><content><p>any non-trading deficit on the company’s loan relationships,</p></content></level><level class="para1"><num>(b)</num><content><p>expenses of management falling to be deducted under section 76 of the Taxes Act 1988, and</p></content></level><level class="para1"><num>(c)</num><content><p>charges on income,</p></content></level><wrapUp><p>so far as referable to the company’s basic life assurance and general annuity business.</p></wrapUp></subsection><subsection><num>(8)</num><content><p>Section 88(3) above applies for the purposes of this section as it applies for the purposes of section 88(1) above.</p></content></subsection></section></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-6-paragraph-26-3"><num>(3)</num><intro><p>In section 89 of that Act (meaning of “policy holders' share” of profits), in subsection (1)—</p></intro><level class="para1" eId="schedule-6-paragraph-26-3-a"><num>(a)</num><content><p>for “section 88” there shall be substituted “sections 88 and 88A”;</p></content></level><level class="para1" eId="schedule-6-paragraph-26-3-b"><num>(b)</num><content><p>after “life assurance business” there shall be inserted “or, as the case may be, basic life assurance and general annuity business”; and</p></content></level><level class="para1" eId="schedule-6-paragraph-26-3-c"><num>(c)</num><content><p>for “the business” there shall be substituted “its life assurance business”;</p></content></level><wrapUp><p>and in subsection (2), in each of paragraphs (b) and (c), for “the business” there shall be substituted “the company’s life assurance business”.</p></wrapUp></subparagraph><subparagraph eId="schedule-6-paragraph-26-4"><num>(4)</num><content><p>This paragraph shall have effect for the financial year 1996 and subsequent financial years.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-6-crossheading-the-taxation-of-chargeable-gains-act-1992-c-12"><heading>The Taxation of Chargeable Gains Act <ref eId="c00005" href="http://www.legislation.gov.uk/id/ukpga/1992/12">1992 (c. 12)</ref></heading><paragraph eId="schedule-6-paragraph-27" class="schProv1"><num>27</num><content><p>In section 4(3A) of the Taxation of Chargeable Gains Act 1992 (disregard of income chargeable at lower rate in accordance with section 207A of the Taxes Act 1988), for “section 207A” there shall be substituted “section 1A”.</p></content></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-6-crossheading-commencement-of-schedule"><heading>Commencement of Schedule</heading><paragraph eId="schedule-6-paragraph-28" class="schProv1"><num>28</num><content><p>Subject to any express provisions as to commencement that are contained in the preceding provisions of this Schedule, this Schedule has effect for the year 1996-97 and subsequent years of assessment.</p></content></paragraph></hcontainer></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="schedule-6-crossheading-the-taxes-management-act-1970-c-9"><heading>The Taxes Management Act <ref eId="c00003" href="http://www.legislation.gov.uk/id/ukpga/1970/9">1970 (c. 9)</ref></heading><paragraph eId="schedule-6-paragraph-1" class="schProv1"><num>1</num><content><p>In section 86 of the Taxes Management Act 1970 (interest on tax assessed in addition to deducted tax etc.), so far as it has effect without the substitutions made by paragraph 23 of Schedule 19 to the <noteRef href="#m00211" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1994 and section 110 of the <noteRef href="#m00212" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1995, in subsection (2)(b) after “the basic rate” there shall be inserted “or the lower rate”.</p></content></paragraph></hcontainer>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-6-paragraph-1" class="schProv1"><num>1</num><content><p>In section 86 of the Taxes Management Act 1970 (interest on tax assessed in addition to deducted tax etc.), so far as it has effect without the substitutions made by paragraph 23 of Schedule 19 to the <noteRef href="#m00211" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1994 and section 110 of the <noteRef href="#m00212" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1995, in subsection (2)(b) after “the basic rate” there shall be inserted “or the lower rate”.</p></content></paragraph>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="schedule-6-crossheading-the-taxes-act-1988"><heading>The Taxes Act 1988</heading><paragraph eId="schedule-6-paragraph-2" class="schProv1"><num>2</num><content><p>In section 4(2) of the Taxes Act 1988 (meaning of “relevant year of assessment” for the purposes of deductions etc.), for “subsection (1) above” there shall be substituted “this section”.</p></content></paragraph><paragraph eId="schedule-6-paragraph-3" class="schProv1"><num>3</num><content><p>In section 5(4) of that Act (time when tax in addition to deducted tax etc. becomes due), after “basic rate” there shall be inserted “or the lower rate”.</p></content></paragraph><paragraph eId="schedule-6-paragraph-4" class="schProv1"><num>4</num><subparagraph eId="schedule-6-paragraph-4-1"><num>(1)</num><content><p>Subject to sub-paragraph (2) below, in subsection (1)(b) of section 51B of that Act (periodic returns of tax on gilts), for “basic rate” there shall be substituted “lower rate”.</p></content></subparagraph><subparagraph eId="schedule-6-paragraph-4-2"><num>(2)</num><content><p>Sub-paragraph (1) above has effect for the purposes only of the exercise on or after the day on which this Act is passed of the Treasury’s power to make regulations under that section; but that power may be exercised on or after that day for the purpose of making provision, with retrospective effect, on the basis that the assumption to be applied in relation to all payments made on or after 6th April 1996 was an assumption that such payments bear tax at the lower rate.</p></content></subparagraph></paragraph><paragraph eId="schedule-6-paragraph-5" class="schProv1"><num>5</num><content><p>In paragraph (c) of section 246D(2) of that Act (application of section 207A to certain foreign income dividends), for the words from “as income” to the end of the paragraph there shall be substituted “(without prejudice to paragraph (a) above) as if it were income to which section 1A applies;”.</p></content></paragraph><paragraph eId="schedule-6-paragraph-6" class="schProv1"><num>6</num><content><p>In section 249(4)(c) of that Act (application of section 207A), for the words from “as income” to “but” there shall be substituted “(without prejudice to paragraph (a) above) as if it were income to which section 1A applies, but”.</p></content></paragraph><paragraph eId="schedule-6-paragraph-7" class="schProv1"><num>7</num><subparagraph eId="schedule-6-paragraph-7-1"><num>(1)</num><content><p>In subsection (2)(b)(ii) of section 326B of that Act (loss of exemption for TESSAs), for the words from “basic rate on” to the end of the sub-paragraph there shall be substituted “applicable rate on any interest or bonus paid on the account before that time;”.</p></content></subparagraph><subparagraph eId="schedule-6-paragraph-7-2"><num>(2)</num><content><p><mod>After subsection (2) of that section there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(2A)</num><intro><p>In subsection (2)(b)(ii) above “the applicable rate” means—</p></intro><level class="para1"><num>(a)</num><content><p>in the case of interest or bonus paid before 6th April 1996, the basic rate for the year of assessment in which the payment was made; and</p></content></level><level class="para1"><num>(b)</num><content><p>in any other case, the lower rate for the year of assessment in which it was made.</p></content></level></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-6-paragraph-7-3"><num>(3)</num><content><p>This paragraph has effect as respects withdrawals on or after 6th April 1996.</p></content></subparagraph></paragraph><paragraph eId="schedule-6-paragraph-8" class="schProv1"><num>8</num><content><p><mod>In section 350 of that Act (charge to tax where payments made subject to deduction), in subsection (1) for “basic rate” there shall be substituted “applicable rate”; and after that subsection there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1A)</num><content><p>In subsection (1) above “the applicable rate” means the rate which is applicable to the payment under section 4.</p></content></subsection></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-6-paragraph-9" class="schProv1"><num>9</num><content><p>In section 421(1)(c) of that Act (application of section 207A), for the words from “as income” to “but” there shall be substituted “(without prejudice to paragraph (b) above) as if it were income to which section 1A applies, but”.</p></content></paragraph><paragraph eId="schedule-6-paragraph-10" class="schProv1"><num>10</num><subparagraph eId="schedule-6-paragraph-10-1"><num>(1)</num><content><p><mod>In section 468 of that Act (authorised unit trusts to be subject to corporation tax), the following subsection shall be inserted after subsection (1)—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1A)</num><content><p>In relation to any authorised unit trust the rate of corporation tax for the financial year 1996 and subsequent financial years shall be deemed to be the rate at which income tax at the lower rate is charged for the year of assessment which begins on 6th April in the financial year concerned.</p></content></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-6-paragraph-10-2"><num>(2)</num><content><p>Sub-paragraph (1) above has effect in relation to any accounting period ending after 31st March 1996.</p></content></subparagraph><subparagraph eId="schedule-6-paragraph-10-3"><num>(3)</num><content><p>Sections 468E and 468EE of that Act (rate of corporation tax on authorised unit trusts) shall not apply in relation to any accounting period ending after 31st March 1996 except so far as those sections relate to the financial year 1995.</p></content></subparagraph></paragraph><paragraph eId="schedule-6-paragraph-11" class="schProv1"><num>11</num><subparagraph eId="schedule-6-paragraph-11-1"><num>(1)</num><content><p><mod>In section 468L of that Act (interest distributions), after subsection (1) there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1A)</num><content><p>For the purposes of this Chapter no amount shall be shown as so available unless the authorised unit trust in question satisfies the qualifying investments test throughout the distribution period.</p></content></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-6-paragraph-11-2"><num>(2)</num><content><p><mod>After subsection (7) of that section there shall be inserted the following subsections—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(8)</num><content><p>For the purposes of this section an authorised unit trust satisfies the qualifying investments test throughout a distribution period (“the relevant period”) if at all times in that period, the market value of the qualifying investments exceeds 60 per cent. of the market value of all the investments of that trust.</p></content></subsection><subsection><num>(9)</num><intro><p>Subject to subsection (13) below, in this section “qualifying investments”, in relation to an authorised unit trust, means the investments of that trust which are of any of the following descriptions—</p></intro><level class="para1"><num>(a)</num><content><p>money placed at interest;</p></content></level><level class="para1"><num>(b)</num><content><p>securities;</p></content></level><level class="para1"><num>(c)</num><content><p>shares in a building society;</p></content></level><level class="para1"><num>(d)</num><content><p>qualifying entitlements to a share in the investments of another authorised unit trust.</p></content></level></subsection><subsection><num>(10)</num><content><p>For the purposes of subsection (9) above an entitlement to a share in the investments of another authorised unit trust is a qualifying entitlement at any time in the relevant period if, and only if, the other authorised unit trust would itself (on the relevant assumption) satisfy the qualifying investments test throughout that period.</p></content></subsection><subsection><num>(11)</num><content><p>For the purposes of subsection (10) above the relevant assumption is that the only investments of the other authorised unit trust which are to be regarded as qualifying investments are those falling within paragraphs (a) to (c) of subsection (9) above.</p></content></subsection><subsection><num>(12)</num><content><p>In this section “security” does not include shares in a company; and references in this section to investments of an authorised unit trust are references to investments subject to the trusts of that authorised unit trust but do not include references to cash awaiting investment.</p></content></subsection><subsection><num>(13)</num><content><p>The Treasury may by order amend subsection (9) above so as to extend or restrict the descriptions of investments of an authorised unit trust that are qualifying investments.</p></content></subsection><subsection><num>(14)</num><intro><p>An order made by the Treasury under subsection (13) above may—</p></intro><level class="para1"><num>(a)</num><content><p>make different provision for different cases; and</p></content></level><level class="para1"><num>(b)</num><content><p>contain such incidental, supplemental, consequential and transitional provision as the Treasury may think fit;</p></content></level><wrapUp><p>and, without prejudice to the generality of paragraph (b) above, such an order may make such incidental modifications of subsection (11) above as the Treasury may think fit.</p></wrapUp></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-6-paragraph-11-3"><num>(3)</num><content><p>This paragraph has effect in relation to distribution periods ending on or after 1st April 1996.</p></content></subparagraph></paragraph><paragraph eId="schedule-6-paragraph-12" class="schProv1"><num>12</num><content><p>In section 469(2) of that Act (taxation of income of unauthorised unit trusts), after the words “unit holders)”, in the first place where they occur, there shall be inserted “and, in the case of income to which section 1A applies, chargeable to income tax at the basic rate, instead of at the lower rate”.</p></content></paragraph><paragraph eId="schedule-6-paragraph-13" class="schProv1"><num>13</num><content><p>In sections 549(2), 686(1), 699(2) and 819(2) of that Act (which refer to income tax being chargeable at the lower rate in accordance with section 207A), for “section 207A” there shall be substituted “section 1A”.</p></content></paragraph><paragraph eId="schedule-6-paragraph-14" class="schProv1"><num>14</num><subparagraph eId="schedule-6-paragraph-14-1"><num>(1)</num><content><p>In paragraph (a)(i) of subsection (2) of section 582 of that Act (funding bonds), for “basic” there shall be substituted “applicable”.</p></content></subparagraph><subparagraph eId="schedule-6-paragraph-14-2"><num>(2)</num><content><p><mod>After that subsection there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(2A)</num><content><p>In subsection (2) above “the applicable rate”, in relation to a year of assessment, means whichever of the basic rate and the lower rate for that year is the rate at which the person by or through whom the bonds are issued would have had to deduct income tax from the amount of interest in question if that amount had been actually paid by or through him.</p></content></subsection></quotedStructure></mod></p></content></subparagraph></paragraph><paragraph eId="schedule-6-paragraph-15" class="schProv1"><num>15</num><content><p><mod>In section 686 of that Act (liability to additional rate in the case of trustees of discretionary trusts), after subsection (2A) there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(2B)</num><intro><p>For the purposes of subsection (2A) above where the income tax borne by any income arising to trustees is limited in accordance with section 128 of the <noteRef href="#m00213" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1995 (limit on income chargeable on non-residents), the income arising to the trustees which shall be taken not to bear tax by reason wholly or partly of their not having been resident in the United Kingdom shall include so much of any income arising to them as—</p></intro><level class="para1"><num>(a)</num><content><p>is excluded income within the meaning of that section; and</p></content></level><level class="para1"><num>(b)</num><content><p>is not income which is treated for the purposes of subsection (1)(b) of that section as income the tax on which is deducted at source.</p></content></level></subsection></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-6-paragraph-16" class="schProv1"><num>16</num><content><p><mod>In Part XV of that Act (settlements), at the end of Chapter IC there shall be inserted the following Chapter—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><chapter><num>Chapter ID</num><heading>Trust management expenses</heading><section><num>689A</num><heading>Disregard of expenses where beneficiary non-resident</heading><subsection><num>(1)</num><intro><p>This section applies where—</p></intro><level class="para1"><num>(a)</num><content><p>there is income (“the distributed income”) arising to trustees in any year of assessment which (before being distributed) is income of a person (“the beneficiary”) other than the trustees;</p></content></level><level class="para1"><num>(b)</num><content><p>the trustees have any expenses in that year (“the management expenses”) which are properly chargeable to that income or would be so chargeable but for any express provisions of the trust; and</p></content></level><level class="para1"><num>(c)</num><intro><p>the beneficiary is not liable to income tax on an amount of the distributed income (“the untaxed income”) by reason wholly or partly of—</p></intro><level class="para2"><num>(i)</num><content><p>his not having been resident in the United Kingdom, or</p></content></level><level class="para2"><num>(ii)</num><content><p>his being deemed under any arrangements under section 788, or any arrangements having effect by virtue of that section, to have been resident in a territory outside the United Kingdom.</p></content></level></level></subsection><subsection><num>(2)</num><content><p>Where this section applies, there shall be disregarded in computing the income of the beneficiary for the purposes of the Income Tax Acts such part of the management expenses as bears the same proportion to all those expenses as the untaxed income bears to the distributed income.</p></content></subsection><subsection><num>(3)</num><content><p>For the purpose of computing the proportion mentioned in subsection (2) above, the amounts of the distributed income and of the untaxed income shall not, in either case, include so much (if any) of the income as is equal to the amount of income tax, or of any foreign tax, chargeable on the trustees (by way of deduction or otherwise) in respect of that income.</p></content></subsection><subsection><num>(4)</num><intro><p>In subsection (3) above, “foreign tax” means any tax which is—</p></intro><level class="para1"><num>(a)</num><content><p>of a similar character to income tax; and</p></content></level><level class="para1"><num>(b)</num><content><p>imposed by the laws of a territory outside the United Kingdom.</p></content></level></subsection><subsection><num>(5)</num><intro><p>For the purposes of this section, where the income tax chargeable on any person is limited in accordance with section 128 of the <noteRef href="#m00214" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1995 (limit on income chargeable on non-residents), the income of that person on which he is not liable to tax by reason of not having been resident in the United Kingdom shall be taken to include so much of any income of his as—</p></intro><level class="para1"><num>(a)</num><content><p>is excluded income within the meaning of that section; and</p></content></level><level class="para1"><num>(b)</num><content><p>is not income which is treated for the purposes of subsection (1)(b) of that section as income the tax on which is deducted at source.</p></content></level></subsection></section><section><num>689B</num><heading>Order in which expenses to be set against income</heading><subsection><num>(1)</num><intro><p>The expenses of any trustees in any year of assessment, so far as they are properly chargeable to income (or would be so chargeable but for any express provisions of the trust), shall be treated—</p></intro><level class="para1"><num>(a)</num><content><p>as set against so much (if any) of any income as is income falling within subsection (2) or (3) below before being set against other income; and</p></content></level><level class="para1"><num>(b)</num><content><p>as set against so much (if any) of any income as is income falling within subsection (2) below before being set against income falling within subsection (3) below.</p></content></level></subsection><subsection><num>(2)</num><intro><p>Income falls within this subsection if it is—</p></intro><level class="para1"><num>(a)</num><content><p>so much of the income of the trustees as is income the amount or value of which is determined in accordance with section 233(1A);</p></content></level><level class="para1"><num>(b)</num><content><p>income which is treated as having arisen to the trustees by virtue of section 246D(4) or 249(6); or</p></content></level><level class="para1"><num>(c)</num><content><p>income which is treated as received by the trustees by virtue of section 421(1)(a).</p></content></level></subsection><subsection><num>(3)</num><content><p>Income falls within this subsection if it is income to which section 1A applies but which does not fall within subsection (2) above.</p></content></subsection><subsection><num>(4)</num><intro><p>This section has effect—</p></intro><level class="para1"><num>(a)</num><content><p>subject to sections 686(2A) and 689A, but</p></content></level><level class="para1"><num>(b)</num><content><p>notwithstanding anything in section 1A(5) and (6).</p></content></level></subsection></section></chapter></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-6-paragraph-17" class="schProv1"><num>17</num><intro><p>In section 698A of that Act (taxation at the lower rate of the income of beneficiaries)—</p></intro><level class="para1" eId="schedule-6-paragraph-17-a"><num>(a)</num><content><p>in subsection (1), for the words from “section 207A” to the end there shall be substituted “section 1A shall have effect as if that income were income to which that section applies.”; and</p></content></level><level class="para1" eId="schedule-6-paragraph-17-b"><num>(b)</num><content><p>in subsection (2), for the words from “section 207A” to the end there shall be substituted “section 1A shall have effect as if the payment made to the trustee were income of the trustee to which that section applies.”</p></content></level></paragraph><paragraph eId="schedule-6-paragraph-18" class="schProv1"><num>18</num><subparagraph eId="schedule-6-paragraph-18-1"><num>(1)</num><content><p><mod>In subsection (1) of section 737 of that Act (deductions from manufactured payments), after “shall apply” there shall be inserted “(subject to subsection (1A) below)”, and for subsection (1A) of that section there shall be substituted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1A)</num><intro><p>The deduction of tax which is deemed to have been made under subsection (1) above shall be taken to have been made at the lower rate as if the deemed annual payment were income to which section 1A applied; and—</p></intro><level class="para1"><num>(a)</num><content><p>the reference to the applicable rate in subsection (1) of section 350, so far as it has effect by virtue of subsection (1) above, and</p></content></level><level class="para1"><num>(b)</num><content><p>Schedule 16, so far as it so has effect,</p></content></level><wrapUp><p>shall be construed accordingly.</p></wrapUp></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-6-paragraph-18-2"><num>(2)</num><content><p>This paragraph has effect in relation to payments on or after 6th April 1996.</p></content></subparagraph></paragraph><paragraph eId="schedule-6-paragraph-19" class="schProv1"><num>19</num><content><p>In section 737C(6) of that Act (computation of amount of deemed manufactured interest), for “basic” there shall be substituted “lower”.</p></content></paragraph><paragraph eId="schedule-6-paragraph-20" class="schProv1"><num>20</num><intro><p>In section 743(1) of that Act (supplemental provisions relating to transfers of assets abroad)—</p></intro><level class="para1" eId="schedule-6-paragraph-20-a"><num>(a)</num><content><p>after the words “the basic rate”, in the first place where they occur, there shall be inserted “or the lower rate”; and</p></content></level><level class="para1" eId="schedule-6-paragraph-20-b"><num>(b)</num><content><p>for “income that has borne tax at the basic rate”, there shall be substituted “any income to the extent that it has borne tax at that rate”.</p></content></level></paragraph><paragraph eId="schedule-6-paragraph-21" class="schProv1"><num>21</num><content><p><mod>In section 789(2) of that Act (old double taxation relief agreements), for “to bear income tax at the basic rate and” there shall be substituted <quotedText startQuote="“">—</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(a)</num><content><p>to bear income tax at the basic rate or, where that income is income to which section 1A applies, at the lower rate; and</p></content></level><level class="para1"><num>(b)</num><content><p/></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></paragraph><paragraph eId="schedule-6-paragraph-22" class="schProv1"><num>22</num><content><p>In paragraph (a) of section 821(1) of that Act (under-deductions from payments made before passing of annual Act to be charged under Case VI of Schedule D), for the words from “under Schedule D in respect” to the end of the paragraph there shall be substituted “under Case III of Schedule D in respect of those payments; and”.</p></content></paragraph><paragraph eId="schedule-6-paragraph-23" class="schProv1"><num>23</num><content><p>In section 822(1) of that Act (over-deductions from interest on loan capital etc. made before the passing of annual Act where basic rate for the year is lower than in the previous year), for “basic rate lower” there shall be substituted “lower rate less”.</p></content></paragraph><paragraph eId="schedule-6-paragraph-24" class="schProv1"><num>24</num><content><p>In section 835(6)(a) of that Act (estimating total income), after “basic rate” there shall be inserted “or the lower rate”.</p></content></paragraph><paragraph eId="schedule-6-paragraph-25" class="schProv1"><num>25</num><subparagraph eId="schedule-6-paragraph-25-1"><num>(1)</num><intro><p>In Schedule 3 to that Act (public revenue dividends etc.)—</p></intro><level class="para1" eId="schedule-6-paragraph-25-1-a"><num>(a)</num><content><p>in paragraph 1(c), for “basic” there shall be substituted “lower”;</p></content></level><level class="para1" eId="schedule-6-paragraph-25-1-b"><num>(b)</num><intro><p>in paragraph 6A—</p></intro><level class="para2" eId="schedule-6-paragraph-25-1-b-i"><num>(i)</num><content><p>in sub-paragraph (1), for “applicable” there shall be substituted “lower”; and</p></content></level><level class="para2" eId="schedule-6-paragraph-25-1-b-ii"><num>(ii)</num><content><p>sub-paragraph (4) shall cease to have effect.</p></content></level></level></subparagraph><subparagraph eId="schedule-6-paragraph-25-2"><num>(2)</num><content><p>This paragraph has effect in relation to payments made on or after 6th April 1996 and before the day on which this Act is passed.</p></content></subparagraph></paragraph></hcontainer>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-6-paragraph-2" class="schProv1"><num>2</num><content><p>In section 4(2) of the Taxes Act 1988 (meaning of “relevant year of assessment” for the purposes of deductions etc.), for “subsection (1) above” there shall be substituted “this section”.</p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-6-paragraph-3" class="schProv1"><num>3</num><content><p>In section 5(4) of that Act (time when tax in addition to deducted tax etc. becomes due), after “basic rate” there shall be inserted “or the lower rate”.</p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-6-paragraph-4" class="schProv1"><num>4</num><subparagraph eId="schedule-6-paragraph-4-1"><num>(1)</num><content><p>Subject to sub-paragraph (2) below, in subsection (1)(b) of section 51B of that Act (periodic returns of tax on gilts), for “basic rate” there shall be substituted “lower rate”.</p></content></subparagraph><subparagraph eId="schedule-6-paragraph-4-2"><num>(2)</num><content><p>Sub-paragraph (1) above has effect for the purposes only of the exercise on or after the day on which this Act is passed of the Treasury’s power to make regulations under that section; but that power may be exercised on or after that day for the purpose of making provision, with retrospective effect, on the basis that the assumption to be applied in relation to all payments made on or after 6th April 1996 was an assumption that such payments bear tax at the lower rate.</p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-6-paragraph-5" class="schProv1"><num>5</num><content><p>In paragraph (c) of section 246D(2) of that Act (application of section 207A to certain foreign income dividends), for the words from “as income” to the end of the paragraph there shall be substituted “(without prejudice to paragraph (a) above) as if it were income to which section 1A applies;”.</p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-6-paragraph-6" class="schProv1"><num>6</num><content><p>In section 249(4)(c) of that Act (application of section 207A), for the words from “as income” to “but” there shall be substituted “(without prejudice to paragraph (a) above) as if it were income to which section 1A applies, but”.</p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-6-paragraph-7" class="schProv1"><num>7</num><subparagraph eId="schedule-6-paragraph-7-1"><num>(1)</num><content><p>In subsection (2)(b)(ii) of section 326B of that Act (loss of exemption for TESSAs), for the words from “basic rate on” to the end of the sub-paragraph there shall be substituted “applicable rate on any interest or bonus paid on the account before that time;”.</p></content></subparagraph><subparagraph eId="schedule-6-paragraph-7-2"><num>(2)</num><content><p><mod>After subsection (2) of that section there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(2A)</num><intro><p>In subsection (2)(b)(ii) above “the applicable rate” means—</p></intro><level class="para1"><num>(a)</num><content><p>in the case of interest or bonus paid before 6th April 1996, the basic rate for the year of assessment in which the payment was made; and</p></content></level><level class="para1"><num>(b)</num><content><p>in any other case, the lower rate for the year of assessment in which it was made.</p></content></level></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-6-paragraph-7-3"><num>(3)</num><content><p>This paragraph has effect as respects withdrawals on or after 6th April 1996.</p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-6-paragraph-8" class="schProv1"><num>8</num><content><p><mod>In section 350 of that Act (charge to tax where payments made subject to deduction), in subsection (1) for “basic rate” there shall be substituted “applicable rate”; and after that subsection there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1A)</num><content><p>In subsection (1) above “the applicable rate” means the rate which is applicable to the payment under section 4.</p></content></subsection></quotedStructure></mod></p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-6-paragraph-9" class="schProv1"><num>9</num><content><p>In section 421(1)(c) of that Act (application of section 207A), for the words from “as income” to “but” there shall be substituted “(without prejudice to paragraph (b) above) as if it were income to which section 1A applies, but”.</p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-6-paragraph-10" class="schProv1"><num>10</num><subparagraph eId="schedule-6-paragraph-10-1"><num>(1)</num><content><p><mod>In section 468 of that Act (authorised unit trusts to be subject to corporation tax), the following subsection shall be inserted after subsection (1)—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1A)</num><content><p>In relation to any authorised unit trust the rate of corporation tax for the financial year 1996 and subsequent financial years shall be deemed to be the rate at which income tax at the lower rate is charged for the year of assessment which begins on 6th April in the financial year concerned.</p></content></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-6-paragraph-10-2"><num>(2)</num><content><p>Sub-paragraph (1) above has effect in relation to any accounting period ending after 31st March 1996.</p></content></subparagraph><subparagraph eId="schedule-6-paragraph-10-3"><num>(3)</num><content><p>Sections 468E and 468EE of that Act (rate of corporation tax on authorised unit trusts) shall not apply in relation to any accounting period ending after 31st March 1996 except so far as those sections relate to the financial year 1995.</p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-6-paragraph-11" class="schProv1"><num>11</num><subparagraph eId="schedule-6-paragraph-11-1"><num>(1)</num><content><p><mod>In section 468L of that Act (interest distributions), after subsection (1) there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1A)</num><content><p>For the purposes of this Chapter no amount shall be shown as so available unless the authorised unit trust in question satisfies the qualifying investments test throughout the distribution period.</p></content></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-6-paragraph-11-2"><num>(2)</num><content><p><mod>After subsection (7) of that section there shall be inserted the following subsections—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(8)</num><content><p>For the purposes of this section an authorised unit trust satisfies the qualifying investments test throughout a distribution period (“the relevant period”) if at all times in that period, the market value of the qualifying investments exceeds 60 per cent. of the market value of all the investments of that trust.</p></content></subsection><subsection><num>(9)</num><intro><p>Subject to subsection (13) below, in this section “qualifying investments”, in relation to an authorised unit trust, means the investments of that trust which are of any of the following descriptions—</p></intro><level class="para1"><num>(a)</num><content><p>money placed at interest;</p></content></level><level class="para1"><num>(b)</num><content><p>securities;</p></content></level><level class="para1"><num>(c)</num><content><p>shares in a building society;</p></content></level><level class="para1"><num>(d)</num><content><p>qualifying entitlements to a share in the investments of another authorised unit trust.</p></content></level></subsection><subsection><num>(10)</num><content><p>For the purposes of subsection (9) above an entitlement to a share in the investments of another authorised unit trust is a qualifying entitlement at any time in the relevant period if, and only if, the other authorised unit trust would itself (on the relevant assumption) satisfy the qualifying investments test throughout that period.</p></content></subsection><subsection><num>(11)</num><content><p>For the purposes of subsection (10) above the relevant assumption is that the only investments of the other authorised unit trust which are to be regarded as qualifying investments are those falling within paragraphs (a) to (c) of subsection (9) above.</p></content></subsection><subsection><num>(12)</num><content><p>In this section “security” does not include shares in a company; and references in this section to investments of an authorised unit trust are references to investments subject to the trusts of that authorised unit trust but do not include references to cash awaiting investment.</p></content></subsection><subsection><num>(13)</num><content><p>The Treasury may by order amend subsection (9) above so as to extend or restrict the descriptions of investments of an authorised unit trust that are qualifying investments.</p></content></subsection><subsection><num>(14)</num><intro><p>An order made by the Treasury under subsection (13) above may—</p></intro><level class="para1"><num>(a)</num><content><p>make different provision for different cases; and</p></content></level><level class="para1"><num>(b)</num><content><p>contain such incidental, supplemental, consequential and transitional provision as the Treasury may think fit;</p></content></level><wrapUp><p>and, without prejudice to the generality of paragraph (b) above, such an order may make such incidental modifications of subsection (11) above as the Treasury may think fit.</p></wrapUp></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-6-paragraph-11-3"><num>(3)</num><content><p>This paragraph has effect in relation to distribution periods ending on or after 1st April 1996.</p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-6-paragraph-12" class="schProv1"><num>12</num><content><p>In section 469(2) of that Act (taxation of income of unauthorised unit trusts), after the words “unit holders)”, in the first place where they occur, there shall be inserted “and, in the case of income to which section 1A applies, chargeable to income tax at the basic rate, instead of at the lower rate”.</p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-6-paragraph-13" class="schProv1"><num>13</num><content><p>In sections 549(2), 686(1), 699(2) and 819(2) of that Act (which refer to income tax being chargeable at the lower rate in accordance with section 207A), for “section 207A” there shall be substituted “section 1A”.</p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-6-paragraph-14" class="schProv1"><num>14</num><subparagraph eId="schedule-6-paragraph-14-1"><num>(1)</num><content><p>In paragraph (a)(i) of subsection (2) of section 582 of that Act (funding bonds), for “basic” there shall be substituted “applicable”.</p></content></subparagraph><subparagraph eId="schedule-6-paragraph-14-2"><num>(2)</num><content><p><mod>After that subsection there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(2A)</num><content><p>In subsection (2) above “the applicable rate”, in relation to a year of assessment, means whichever of the basic rate and the lower rate for that year is the rate at which the person by or through whom the bonds are issued would have had to deduct income tax from the amount of interest in question if that amount had been actually paid by or through him.</p></content></subsection></quotedStructure></mod></p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-6-paragraph-15" class="schProv1"><num>15</num><content><p><mod>In section 686 of that Act (liability to additional rate in the case of trustees of discretionary trusts), after subsection (2A) there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(2B)</num><intro><p>For the purposes of subsection (2A) above where the income tax borne by any income arising to trustees is limited in accordance with section 128 of the <noteRef href="#m00213" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1995 (limit on income chargeable on non-residents), the income arising to the trustees which shall be taken not to bear tax by reason wholly or partly of their not having been resident in the United Kingdom shall include so much of any income arising to them as—</p></intro><level class="para1"><num>(a)</num><content><p>is excluded income within the meaning of that section; and</p></content></level><level class="para1"><num>(b)</num><content><p>is not income which is treated for the purposes of subsection (1)(b) of that section as income the tax on which is deducted at source.</p></content></level></subsection></quotedStructure></mod></p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-6-paragraph-16" class="schProv1"><num>16</num><content><p><mod>In Part XV of that Act (settlements), at the end of Chapter IC there shall be inserted the following Chapter—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><chapter><num>Chapter ID</num><heading>Trust management expenses</heading><section><num>689A</num><heading>Disregard of expenses where beneficiary non-resident</heading><subsection><num>(1)</num><intro><p>This section applies where—</p></intro><level class="para1"><num>(a)</num><content><p>there is income (“the distributed income”) arising to trustees in any year of assessment which (before being distributed) is income of a person (“the beneficiary”) other than the trustees;</p></content></level><level class="para1"><num>(b)</num><content><p>the trustees have any expenses in that year (“the management expenses”) which are properly chargeable to that income or would be so chargeable but for any express provisions of the trust; and</p></content></level><level class="para1"><num>(c)</num><intro><p>the beneficiary is not liable to income tax on an amount of the distributed income (“the untaxed income”) by reason wholly or partly of—</p></intro><level class="para2"><num>(i)</num><content><p>his not having been resident in the United Kingdom, or</p></content></level><level class="para2"><num>(ii)</num><content><p>his being deemed under any arrangements under section 788, or any arrangements having effect by virtue of that section, to have been resident in a territory outside the United Kingdom.</p></content></level></level></subsection><subsection><num>(2)</num><content><p>Where this section applies, there shall be disregarded in computing the income of the beneficiary for the purposes of the Income Tax Acts such part of the management expenses as bears the same proportion to all those expenses as the untaxed income bears to the distributed income.</p></content></subsection><subsection><num>(3)</num><content><p>For the purpose of computing the proportion mentioned in subsection (2) above, the amounts of the distributed income and of the untaxed income shall not, in either case, include so much (if any) of the income as is equal to the amount of income tax, or of any foreign tax, chargeable on the trustees (by way of deduction or otherwise) in respect of that income.</p></content></subsection><subsection><num>(4)</num><intro><p>In subsection (3) above, “foreign tax” means any tax which is—</p></intro><level class="para1"><num>(a)</num><content><p>of a similar character to income tax; and</p></content></level><level class="para1"><num>(b)</num><content><p>imposed by the laws of a territory outside the United Kingdom.</p></content></level></subsection><subsection><num>(5)</num><intro><p>For the purposes of this section, where the income tax chargeable on any person is limited in accordance with section 128 of the <noteRef href="#m00214" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1995 (limit on income chargeable on non-residents), the income of that person on which he is not liable to tax by reason of not having been resident in the United Kingdom shall be taken to include so much of any income of his as—</p></intro><level class="para1"><num>(a)</num><content><p>is excluded income within the meaning of that section; and</p></content></level><level class="para1"><num>(b)</num><content><p>is not income which is treated for the purposes of subsection (1)(b) of that section as income the tax on which is deducted at source.</p></content></level></subsection></section><section><num>689B</num><heading>Order in which expenses to be set against income</heading><subsection><num>(1)</num><intro><p>The expenses of any trustees in any year of assessment, so far as they are properly chargeable to income (or would be so chargeable but for any express provisions of the trust), shall be treated—</p></intro><level class="para1"><num>(a)</num><content><p>as set against so much (if any) of any income as is income falling within subsection (2) or (3) below before being set against other income; and</p></content></level><level class="para1"><num>(b)</num><content><p>as set against so much (if any) of any income as is income falling within subsection (2) below before being set against income falling within subsection (3) below.</p></content></level></subsection><subsection><num>(2)</num><intro><p>Income falls within this subsection if it is—</p></intro><level class="para1"><num>(a)</num><content><p>so much of the income of the trustees as is income the amount or value of which is determined in accordance with section 233(1A);</p></content></level><level class="para1"><num>(b)</num><content><p>income which is treated as having arisen to the trustees by virtue of section 246D(4) or 249(6); or</p></content></level><level class="para1"><num>(c)</num><content><p>income which is treated as received by the trustees by virtue of section 421(1)(a).</p></content></level></subsection><subsection><num>(3)</num><content><p>Income falls within this subsection if it is income to which section 1A applies but which does not fall within subsection (2) above.</p></content></subsection><subsection><num>(4)</num><intro><p>This section has effect—</p></intro><level class="para1"><num>(a)</num><content><p>subject to sections 686(2A) and 689A, but</p></content></level><level class="para1"><num>(b)</num><content><p>notwithstanding anything in section 1A(5) and (6).</p></content></level></subsection></section></chapter></quotedStructure></mod></p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-6-paragraph-17" class="schProv1"><num>17</num><intro><p>In section 698A of that Act (taxation at the lower rate of the income of beneficiaries)—</p></intro><level class="para1" eId="schedule-6-paragraph-17-a"><num>(a)</num><content><p>in subsection (1), for the words from “section 207A” to the end there shall be substituted “section 1A shall have effect as if that income were income to which that section applies.”; and</p></content></level><level class="para1" eId="schedule-6-paragraph-17-b"><num>(b)</num><content><p>in subsection (2), for the words from “section 207A” to the end there shall be substituted “section 1A shall have effect as if the payment made to the trustee were income of the trustee to which that section applies.”</p></content></level></paragraph>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-6-paragraph-17-a"><num>(a)</num><content><p>in subsection (1), for the words from “section 207A” to the end there shall be substituted “section 1A shall have effect as if that income were income to which that section applies.”; and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-6-paragraph-17-b"><num>(b)</num><content><p>in subsection (2), for the words from “section 207A” to the end there shall be substituted “section 1A shall have effect as if the payment made to the trustee were income of the trustee to which that section applies.”</p></content></level>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-6-paragraph-18" class="schProv1"><num>18</num><subparagraph eId="schedule-6-paragraph-18-1"><num>(1)</num><content><p><mod>In subsection (1) of section 737 of that Act (deductions from manufactured payments), after “shall apply” there shall be inserted “(subject to subsection (1A) below)”, and for subsection (1A) of that section there shall be substituted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1A)</num><intro><p>The deduction of tax which is deemed to have been made under subsection (1) above shall be taken to have been made at the lower rate as if the deemed annual payment were income to which section 1A applied; and—</p></intro><level class="para1"><num>(a)</num><content><p>the reference to the applicable rate in subsection (1) of section 350, so far as it has effect by virtue of subsection (1) above, and</p></content></level><level class="para1"><num>(b)</num><content><p>Schedule 16, so far as it so has effect,</p></content></level><wrapUp><p>shall be construed accordingly.</p></wrapUp></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-6-paragraph-18-2"><num>(2)</num><content><p>This paragraph has effect in relation to payments on or after 6th April 1996.</p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-6-paragraph-19" class="schProv1"><num>19</num><content><p>In section 737C(6) of that Act (computation of amount of deemed manufactured interest), for “basic” there shall be substituted “lower”.</p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-6-paragraph-20" class="schProv1"><num>20</num><intro><p>In section 743(1) of that Act (supplemental provisions relating to transfers of assets abroad)—</p></intro><level class="para1" eId="schedule-6-paragraph-20-a"><num>(a)</num><content><p>after the words “the basic rate”, in the first place where they occur, there shall be inserted “or the lower rate”; and</p></content></level><level class="para1" eId="schedule-6-paragraph-20-b"><num>(b)</num><content><p>for “income that has borne tax at the basic rate”, there shall be substituted “any income to the extent that it has borne tax at that rate”.</p></content></level></paragraph>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-6-paragraph-20-a"><num>(a)</num><content><p>after the words “the basic rate”, in the first place where they occur, there shall be inserted “or the lower rate”; and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-6-paragraph-20-b"><num>(b)</num><content><p>for “income that has borne tax at the basic rate”, there shall be substituted “any income to the extent that it has borne tax at that rate”.</p></content></level>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-6-paragraph-21" class="schProv1"><num>21</num><content><p><mod>In section 789(2) of that Act (old double taxation relief agreements), for “to bear income tax at the basic rate and” there shall be substituted <quotedText startQuote="“">—</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(a)</num><content><p>to bear income tax at the basic rate or, where that income is income to which section 1A applies, at the lower rate; and</p></content></level><level class="para1"><num>(b)</num><content><p/></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-6-paragraph-22" class="schProv1"><num>22</num><content><p>In paragraph (a) of section 821(1) of that Act (under-deductions from payments made before passing of annual Act to be charged under Case VI of Schedule D), for the words from “under Schedule D in respect” to the end of the paragraph there shall be substituted “under Case III of Schedule D in respect of those payments; and”.</p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-6-paragraph-23" class="schProv1"><num>23</num><content><p>In section 822(1) of that Act (over-deductions from interest on loan capital etc. made before the passing of annual Act where basic rate for the year is lower than in the previous year), for “basic rate lower” there shall be substituted “lower rate less”.</p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-6-paragraph-24" class="schProv1"><num>24</num><content><p>In section 835(6)(a) of that Act (estimating total income), after “basic rate” there shall be inserted “or the lower rate”.</p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-6-paragraph-25" class="schProv1"><num>25</num><subparagraph eId="schedule-6-paragraph-25-1"><num>(1)</num><intro><p>In Schedule 3 to that Act (public revenue dividends etc.)—</p></intro><level class="para1" eId="schedule-6-paragraph-25-1-a"><num>(a)</num><content><p>in paragraph 1(c), for “basic” there shall be substituted “lower”;</p></content></level><level class="para1" eId="schedule-6-paragraph-25-1-b"><num>(b)</num><intro><p>in paragraph 6A—</p></intro><level class="para2" eId="schedule-6-paragraph-25-1-b-i"><num>(i)</num><content><p>in sub-paragraph (1), for “applicable” there shall be substituted “lower”; and</p></content></level><level class="para2" eId="schedule-6-paragraph-25-1-b-ii"><num>(ii)</num><content><p>sub-paragraph (4) shall cease to have effect.</p></content></level></level></subparagraph><subparagraph eId="schedule-6-paragraph-25-2"><num>(2)</num><content><p>This paragraph has effect in relation to payments made on or after 6th April 1996 and before the day on which this Act is passed.</p></content></subparagraph></paragraph>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="schedule-6-crossheading-the-finance-act-1989-c-26"><heading>The Finance Act <ref eId="c00004" href="http://www.legislation.gov.uk/id/ukpga/1989/26">1989 (c. 26)</ref></heading><paragraph eId="schedule-6-paragraph-26" class="schProv1"><num>26</num><subparagraph eId="schedule-6-paragraph-26-1"><num>(1)</num><content><p>In section 88(1) of the Finance Act 1989 (rate of corporation tax on policy holders' fraction of profits to be equal to the basic rate), after “subsection (2)” there shall be inserted “and section 88A”.</p></content></subparagraph><subparagraph eId="schedule-6-paragraph-26-2"><num>(2)</num><content><p><mod>After section 88 of that Act there shall be inserted the following section—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>88A</num><heading>Lower corporation tax rate on certain insurance company profits</heading><subsection><num>(1)</num><content><p>Subject to subsection (2) below, in the case of a company carrying on basic life assurance and general annuity business, the rate of corporation tax chargeable for any financial year on so much of the company’s BLAGAB profits for any accounting period as represents the company’s lower rate income for the period shall be deemed to be the rate at which income tax at the lower rate is charged for the year of assessment which begins on 6th April in the financial year concerned.</p></content></subsection><subsection><num>(2)</num><content><p>Subsection (1) above does not apply in relation to profits charged under Case I of Schedule D.</p></content></subsection><subsection><num>(3)</num><intro><p>In this section, references to a company’s lower rate income for any accounting period are references to so much of the income and gains of its basic life assurance and general annuity business for the period as consists in income of any of the following descriptions—</p></intro><level class="para1"><num>(a)</num><content><p>income falling within paragraph (a) of Case III of Schedule D, as that Case applies for the purposes of corporation tax;</p></content></level><level class="para1"><num>(b)</num><content><p>purchased life annuities to which section 656 of the Taxes Act 1988 applies or to which that section would apply but for section 657(2)(a) of that Act;</p></content></level><level class="para1"><num>(c)</num><content><p>any such dividends or other distributions of a company not resident in the United Kingdom as would be chargeable under Schedule F if the company were resident in the United Kingdom;</p></content></level><level class="para1"><num>(d)</num><intro><p>so much of—</p></intro><level class="para2"><num>(i)</num><content><p>any dividend distribution (within the meaning of section 468J of the Taxes Act 1988), or</p></content></level><level class="para2"><num>(ii)</num><content><p>any foreign income distribution (within the meaning of section 468K of that Act),</p></content></level><wrapUp><p>as is deemed by subsection (2) of section 468Q of that Act (or by that subsection as applied by section 468R(2) of that Act) to be an annual payment.</p></wrapUp></level></subsection><subsection><num>(4)</num><intro><p>Where for any period—</p></intro><level class="para1"><num>(a)</num><content><p>an insurance company’s basic life assurance and general annuity business is mutual business,</p></content></level><level class="para1"><num>(b)</num><content><p>the policy holders' share of the company’s relevant profits is equal to all those profits, or</p></content></level><level class="para1"><num>(c)</num><content><p>the policy holders' share of the company’s relevant profits is more than the company’s BLAGAB profits,</p></content></level><wrapUp><p>the amount to be taken for the purposes of this section as the amount of the company’s BLAGAB profits for that period representing its lower rate income for that period shall be the amount equal to the applicable proportion of its BLAGAB profits.</p></wrapUp></subsection><subsection><num>(5)</num><intro><p>Where subsection (4) above does not apply in the case of an insurance company for any period, the amount to be taken for the purposes of this section as the amount of the company’s BLAGAB profits for the period representing its lower rate income for that period shall be the amount produced by multiplying the following, that is to say—</p></intro><level class="para1"><num>(a)</num><content><p>the applicable proportion of those profits; and</p></content></level><level class="para1"><num>(b)</num><content><p>the fraction given by dividing the policy holders' share of the relevant profits of the company for the period by its BLAGAB profits for that period.</p></content></level></subsection><subsection><num>(6)</num><content><p>For the purposes of this section the applicable proportion of a company’s BLAGAB profits for any period is the amount which bears the same proportion to those profits as the aggregate amount of the company’s lower rate income for that period bears to the total income and gains for that period of the company’s basic life assurance and general annuity business.</p></content></subsection><subsection><num>(7)</num><intro><p>For the purposes of this section, the BLAGAB profits of a company for an accounting period are the income and gains of the company’s basic life assurance and general annuity business reduced by the aggregate amount of—</p></intro><level class="para1"><num>(a)</num><content><p>any non-trading deficit on the company’s loan relationships,</p></content></level><level class="para1"><num>(b)</num><content><p>expenses of management falling to be deducted under section 76 of the Taxes Act 1988, and</p></content></level><level class="para1"><num>(c)</num><content><p>charges on income,</p></content></level><wrapUp><p>so far as referable to the company’s basic life assurance and general annuity business.</p></wrapUp></subsection><subsection><num>(8)</num><content><p>Section 88(3) above applies for the purposes of this section as it applies for the purposes of section 88(1) above.</p></content></subsection></section></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-6-paragraph-26-3"><num>(3)</num><intro><p>In section 89 of that Act (meaning of “policy holders' share” of profits), in subsection (1)—</p></intro><level class="para1" eId="schedule-6-paragraph-26-3-a"><num>(a)</num><content><p>for “section 88” there shall be substituted “sections 88 and 88A”;</p></content></level><level class="para1" eId="schedule-6-paragraph-26-3-b"><num>(b)</num><content><p>after “life assurance business” there shall be inserted “or, as the case may be, basic life assurance and general annuity business”; and</p></content></level><level class="para1" eId="schedule-6-paragraph-26-3-c"><num>(c)</num><content><p>for “the business” there shall be substituted “its life assurance business”;</p></content></level><wrapUp><p>and in subsection (2), in each of paragraphs (b) and (c), for “the business” there shall be substituted “the company’s life assurance business”.</p></wrapUp></subparagraph><subparagraph eId="schedule-6-paragraph-26-4"><num>(4)</num><content><p>This paragraph shall have effect for the financial year 1996 and subsequent financial years.</p></content></subparagraph></paragraph></hcontainer>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-6-paragraph-26" class="schProv1"><num>26</num><subparagraph eId="schedule-6-paragraph-26-1"><num>(1)</num><content><p>In section 88(1) of the Finance Act 1989 (rate of corporation tax on policy holders' fraction of profits to be equal to the basic rate), after “subsection (2)” there shall be inserted “and section 88A”.</p></content></subparagraph><subparagraph eId="schedule-6-paragraph-26-2"><num>(2)</num><content><p><mod>After section 88 of that Act there shall be inserted the following section—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>88A</num><heading>Lower corporation tax rate on certain insurance company profits</heading><subsection><num>(1)</num><content><p>Subject to subsection (2) below, in the case of a company carrying on basic life assurance and general annuity business, the rate of corporation tax chargeable for any financial year on so much of the company’s BLAGAB profits for any accounting period as represents the company’s lower rate income for the period shall be deemed to be the rate at which income tax at the lower rate is charged for the year of assessment which begins on 6th April in the financial year concerned.</p></content></subsection><subsection><num>(2)</num><content><p>Subsection (1) above does not apply in relation to profits charged under Case I of Schedule D.</p></content></subsection><subsection><num>(3)</num><intro><p>In this section, references to a company’s lower rate income for any accounting period are references to so much of the income and gains of its basic life assurance and general annuity business for the period as consists in income of any of the following descriptions—</p></intro><level class="para1"><num>(a)</num><content><p>income falling within paragraph (a) of Case III of Schedule D, as that Case applies for the purposes of corporation tax;</p></content></level><level class="para1"><num>(b)</num><content><p>purchased life annuities to which section 656 of the Taxes Act 1988 applies or to which that section would apply but for section 657(2)(a) of that Act;</p></content></level><level class="para1"><num>(c)</num><content><p>any such dividends or other distributions of a company not resident in the United Kingdom as would be chargeable under Schedule F if the company were resident in the United Kingdom;</p></content></level><level class="para1"><num>(d)</num><intro><p>so much of—</p></intro><level class="para2"><num>(i)</num><content><p>any dividend distribution (within the meaning of section 468J of the Taxes Act 1988), or</p></content></level><level class="para2"><num>(ii)</num><content><p>any foreign income distribution (within the meaning of section 468K of that Act),</p></content></level><wrapUp><p>as is deemed by subsection (2) of section 468Q of that Act (or by that subsection as applied by section 468R(2) of that Act) to be an annual payment.</p></wrapUp></level></subsection><subsection><num>(4)</num><intro><p>Where for any period—</p></intro><level class="para1"><num>(a)</num><content><p>an insurance company’s basic life assurance and general annuity business is mutual business,</p></content></level><level class="para1"><num>(b)</num><content><p>the policy holders' share of the company’s relevant profits is equal to all those profits, or</p></content></level><level class="para1"><num>(c)</num><content><p>the policy holders' share of the company’s relevant profits is more than the company’s BLAGAB profits,</p></content></level><wrapUp><p>the amount to be taken for the purposes of this section as the amount of the company’s BLAGAB profits for that period representing its lower rate income for that period shall be the amount equal to the applicable proportion of its BLAGAB profits.</p></wrapUp></subsection><subsection><num>(5)</num><intro><p>Where subsection (4) above does not apply in the case of an insurance company for any period, the amount to be taken for the purposes of this section as the amount of the company’s BLAGAB profits for the period representing its lower rate income for that period shall be the amount produced by multiplying the following, that is to say—</p></intro><level class="para1"><num>(a)</num><content><p>the applicable proportion of those profits; and</p></content></level><level class="para1"><num>(b)</num><content><p>the fraction given by dividing the policy holders' share of the relevant profits of the company for the period by its BLAGAB profits for that period.</p></content></level></subsection><subsection><num>(6)</num><content><p>For the purposes of this section the applicable proportion of a company’s BLAGAB profits for any period is the amount which bears the same proportion to those profits as the aggregate amount of the company’s lower rate income for that period bears to the total income and gains for that period of the company’s basic life assurance and general annuity business.</p></content></subsection><subsection><num>(7)</num><intro><p>For the purposes of this section, the BLAGAB profits of a company for an accounting period are the income and gains of the company’s basic life assurance and general annuity business reduced by the aggregate amount of—</p></intro><level class="para1"><num>(a)</num><content><p>any non-trading deficit on the company’s loan relationships,</p></content></level><level class="para1"><num>(b)</num><content><p>expenses of management falling to be deducted under section 76 of the Taxes Act 1988, and</p></content></level><level class="para1"><num>(c)</num><content><p>charges on income,</p></content></level><wrapUp><p>so far as referable to the company’s basic life assurance and general annuity business.</p></wrapUp></subsection><subsection><num>(8)</num><content><p>Section 88(3) above applies for the purposes of this section as it applies for the purposes of section 88(1) above.</p></content></subsection></section></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-6-paragraph-26-3"><num>(3)</num><intro><p>In section 89 of that Act (meaning of “policy holders' share” of profits), in subsection (1)—</p></intro><level class="para1" eId="schedule-6-paragraph-26-3-a"><num>(a)</num><content><p>for “section 88” there shall be substituted “sections 88 and 88A”;</p></content></level><level class="para1" eId="schedule-6-paragraph-26-3-b"><num>(b)</num><content><p>after “life assurance business” there shall be inserted “or, as the case may be, basic life assurance and general annuity business”; and</p></content></level><level class="para1" eId="schedule-6-paragraph-26-3-c"><num>(c)</num><content><p>for “the business” there shall be substituted “its life assurance business”;</p></content></level><wrapUp><p>and in subsection (2), in each of paragraphs (b) and (c), for “the business” there shall be substituted “the company’s life assurance business”.</p></wrapUp></subparagraph><subparagraph eId="schedule-6-paragraph-26-4"><num>(4)</num><content><p>This paragraph shall have effect for the financial year 1996 and subsequent financial years.</p></content></subparagraph></paragraph>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="schedule-6-crossheading-the-taxation-of-chargeable-gains-act-1992-c-12"><heading>The Taxation of Chargeable Gains Act <ref eId="c00005" href="http://www.legislation.gov.uk/id/ukpga/1992/12">1992 (c. 12)</ref></heading><paragraph eId="schedule-6-paragraph-27" class="schProv1"><num>27</num><content><p>In section 4(3A) of the Taxation of Chargeable Gains Act 1992 (disregard of income chargeable at lower rate in accordance with section 207A of the Taxes Act 1988), for “section 207A” there shall be substituted “section 1A”.</p></content></paragraph></hcontainer>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-6-paragraph-27" class="schProv1"><num>27</num><content><p>In section 4(3A) of the Taxation of Chargeable Gains Act 1992 (disregard of income chargeable at lower rate in accordance with section 207A of the Taxes Act 1988), for “section 207A” there shall be substituted “section 1A”.</p></content></paragraph>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="schedule-6-crossheading-commencement-of-schedule"><heading>Commencement of Schedule</heading><paragraph eId="schedule-6-paragraph-28" class="schProv1"><num>28</num><content><p>Subject to any express provisions as to commencement that are contained in the preceding provisions of this Schedule, this Schedule has effect for the year 1996-97 and subsequent years of assessment.</p></content></paragraph></hcontainer>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-6-paragraph-28" class="schProv1"><num>28</num><content><p>Subject to any express provisions as to commencement that are contained in the preceding provisions of this Schedule, this Schedule has effect for the year 1996-97 and subsequent years of assessment.</p></content></paragraph>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="schedule" eId="schedule-7"><num>SCHEDULE 7<authorialNote class="referenceNote"><p>Section 79.</p></authorialNote></num><heading>Transfer of charge under Schedule C to Schedule D</heading><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-7-crossheading-amendments-of-the-taxes-act-1988"><heading>Amendments of the Taxes Act 1988</heading><paragraph eId="schedule-7-paragraph-1" class="schProv1"><num>1</num><content><p>The Taxes Act 1988 shall be amended in accordance with paragraphs 2 to 28 below.</p></content></paragraph><paragraph eId="schedule-7-paragraph-2" class="schProv1"><num>2</num><content><p>In section 1(1) (the charge to income tax), for “Schedules A, C, D, E and F” there shall be substituted “Schedules A, D, E and F”.</p></content></paragraph><paragraph eId="schedule-7-paragraph-3" class="schProv1"><num>3</num><content><p>Section 17 (Schedule C) shall be omitted.</p></content></paragraph><paragraph eId="schedule-7-paragraph-4" class="schProv1"><num>4</num><subparagraph eId="schedule-7-paragraph-4-1"><num>(1)</num><content><p>In section 18 (Schedule D), in subsection (1), in paragraph (b) of Schedule D, for “not charged under Schedule A, C or E” there shall be substituted “not charged under Schedule A or E”.</p></content></subparagraph><subparagraph eId="schedule-7-paragraph-4-2"><num>(2)</num><intro><p>In subsection (3) of that section—</p></intro><level class="para1" eId="schedule-7-paragraph-4-2-a"><num>(a)</num><content><p>in Case III, in paragraph (c) for the words from “except income charged under Schedule C” to the end of the paragraph there shall be substituted “from securities which is payable out of the public revenue of the United Kingdom or Northern Ireland”;</p></content></level><level class="para1" eId="schedule-7-paragraph-4-2-b"><num>(b)</num><content><p>in Case IV, the words “except such income as is charged under Schedule C” shall be omitted; and</p></content></level><level class="para1" eId="schedule-7-paragraph-4-2-c"><num>(c)</num><content><p>in Case VI, for “Schedule A, C or E” there shall be substituted “Schedule A or E”.</p></content></level></subparagraph><subparagraph eId="schedule-7-paragraph-4-3"><num>(3)</num><content><p><mod>Immediately before subsection (4) of section 18, there shall be inserted the following subsections—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(3B)</num><intro><p>The references in Case IV of Schedule D to income arising from securities out of the United Kingdom, and in Case V of Schedule D to income arising from possessions out of the United Kingdom, shall be taken, in the case of relevant foreign holdings, to include references to the following—</p></intro><level class="para1"><num>(a)</num><content><p>any proceeds of such a sale or other realisation of coupons for foreign dividends as is effected by a bank in the United Kingdom which pays the proceeds over or carries them into an account;</p></content></level><level class="para1"><num>(b)</num><content><p>any proceeds of a sale of such coupons to a dealer in coupons in the United Kingdom by a person who is not a bank or another dealer in coupons.</p></content></level></subsection><subsection><num>(3C)</num><intro><p>In this section “relevant foreign holdings” means—</p></intro><level class="para1"><num>(a)</num><content><p>any securities issued by or on behalf of a government or a public or local authority in a country outside the United Kingdom; or</p></content></level><level class="para1"><num>(b)</num><content><p>any shares or securities issued by or on behalf of a body of persons not resident in the United Kingdom;</p></content></level><wrapUp><p>and “securities” here includes loan stock and similar securities.</p></wrapUp></subsection><subsection><num>(3D)</num><intro><p>In this section “foreign dividends” means—</p></intro><level class="para1"><num>(a)</num><content><p>in relation to relevant foreign holdings falling within subsection (3C)(a) above, interest or annual payments payable out of the revenue of the government or authority in question; and</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to relevant foreign holdings falling within subsection (3C)(b) above, any dividends, interest or annual payments payable in respect of the holdings in question.</p></content></level></subsection><subsection><num>(3E)</num><intro><p>In this section—</p></intro><level class="para1"><num>(a)</num><content><p>“bank” has the meaning given by section 840A; and</p></content></level><level class="para1"><num>(b)</num><content><p>references to coupons include, in relation to any foreign dividends, warrants for and bills of exchange purporting to be drawn or made in payment of those dividends.</p></content></level></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-7-paragraph-4-4"><num>(4)</num><content><p>In subsection (5) of that section, for “Part IV contains” there shall be substituted “Parts III and IV contain”.</p></content></subparagraph></paragraph><paragraph eId="schedule-7-paragraph-5" class="schProv1"><num>5</num><content><p>In section 19(1), in paragraph 2 of Schedule E, for the words “under Schedule C” there shall be substituted “under paragraph (c) of Case III of Schedule D”.</p></content></paragraph><paragraph eId="schedule-7-paragraph-6" class="schProv1"><num>6</num><content><p><mod>For the heading to Part III there shall be substituted the following heading—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><num ukl:Context="Part">Government Securities</num></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-7-paragraph-7" class="schProv1"><num>7</num><content><p>Section 44 (mode of charge of tax under Schedule C) shall be omitted.</p></content></paragraph><paragraph eId="schedule-7-paragraph-8" class="schProv1"><num>8</num><content><p>Section 45 (interpretation of Part III) shall be omitted.</p></content></paragraph><paragraph eId="schedule-7-paragraph-9" class="schProv1"><num>9</num><content><p>Section 48 (securities of foreign states) shall be omitted.</p></content></paragraph><paragraph eId="schedule-7-paragraph-10" class="schProv1"><num>10</num><content><p><mod>In section 49 (stock and dividends in name of Treasury etc.), after subsection (2) there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(3)</num><content><p>In this section “dividends” means any interest, public annuities, dividends or shares of annuities.</p></content></subsection></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-7-paragraph-11" class="schProv1"><num>11</num><content><p>In sections 50(1) and 51A(1) (which provide for interest on certain securities to be paid without deduction of tax), the words “but shall be chargeable to tax under Case III of Schedule D” shall in each case be omitted.</p></content></paragraph><paragraph eId="schedule-7-paragraph-12" class="schProv1"><num>12</num><content><p>Section 52 (taxation of interest on converted securities and interest which becomes subject to deduction) shall be omitted.</p></content></paragraph><paragraph eId="schedule-7-paragraph-13" class="schProv1"><num>13</num><content><p>Section 123 (foreign dividends) shall be omitted.</p></content></paragraph><paragraph eId="schedule-7-paragraph-14" class="schProv1"><num>14</num><intro><p>In section 124—</p></intro><level class="para1" eId="schedule-7-paragraph-14-a"><num>(a)</num><content><p>in subsection (6) (definitions in connection with quoted Eurobonds), the definitions of “recognised clearing system” and “relevant foreign securities”, and the word “and” immediately preceding those definitions, and</p></content></level><level class="para1" eId="schedule-7-paragraph-14-b"><num>(b)</num><content><p>subsection (7),</p></content></level><wrapUp><p>shall be omitted.</p></wrapUp></paragraph><paragraph eId="schedule-7-paragraph-15" class="schProv1"><num>15</num><content><p>In section 322(1) (consular officers and employees), the words “and he shall be treated as not resident in the United Kingdom for the purposes of sections 48 and 123(4)” shall be omitted.</p></content></paragraph><paragraph eId="schedule-7-paragraph-16" class="schProv1"><num>16</num><content><p>In section 398 (transactions in deposits with and without certificates or in debts), in paragraph (b), the words “C or” shall be omitted.</p></content></paragraph><paragraph eId="schedule-7-paragraph-17" class="schProv1"><num>17</num><content><p><mod>In section 468M(4) (meaning of “eligible income” in connection with interest distributions of authorised unit trusts), for paragraphs (c) to (e) there shall be substituted the following paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(cc)</num><content><p>any foreign dividends (as defined by section 18(3D)) and any proceeds falling within section 18(3B)(a) or (b);</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></paragraph><paragraph eId="schedule-7-paragraph-18" class="schProv1"><num>18</num><content><p>In section 474 (treatment of tax-free income), subsections (1) and (3) shall be omitted.</p></content></paragraph><paragraph eId="schedule-7-paragraph-19" class="schProv1"><num>19</num><subparagraph eId="schedule-7-paragraph-19-1"><num>(1)</num><content><p>In section 505 (exemptions for charities), in subsection (1), in paragraph (c), sub-paragraph (i) shall be omitted.</p></content></subparagraph><subparagraph eId="schedule-7-paragraph-19-2"><num>(2)</num><content><p><mod>For paragraph (d) of that subsection there shall be substituted the following paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(d)</num><intro><p>exemption from tax under Schedule D in respect of public revenue dividends on securities which are in the name of trustees, to the extent that the dividends are applicable and applied only for the repair of—</p></intro><level class="para2"><num>(i)</num><content><p>any cathedral, college, church or chapel, or</p></content></level><level class="para2"><num>(ii)</num><content><p>any building used only for the purposes of divine worship;</p></content></level></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-7-paragraph-19-3"><num>(3)</num><content><p><mod>After that subsection there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1A)</num><intro><p>In subsection (1)(d) above “public revenue dividends” means—</p></intro><level class="para1"><num>(a)</num><content><p>income from securities which is payable out of the public revenue of the United Kingdom or Northern Ireland;</p></content></level><level class="para1"><num>(b)</num><content><p>income from securities issued by or on behalf of a government or a public or local authority in a country outside the United Kingdom.</p></content></level></subsection></quotedStructure></mod></p></content></subparagraph></paragraph><paragraph eId="schedule-7-paragraph-20" class="schProv1"><num>20</num><subparagraph eId="schedule-7-paragraph-20-1"><num>(1)</num><intro><p>In section 512 (exemption from income tax for Atomic Energy Authority and National Radiological Protection Board)—</p></intro><level class="para1" eId="schedule-7-paragraph-20-1-a"><num>(a)</num><content><p>in subsection (1)(a), for “Schedules A and C” there shall be substituted “Schedule A”; and</p></content></level><level class="para1" eId="schedule-7-paragraph-20-1-b"><num>(b)</num><content><p>in subsection (1)(b), after “annual payment” there shall be inserted “or in respect of public revenue dividends”.</p></content></level></subparagraph><subparagraph eId="schedule-7-paragraph-20-2"><num>(2)</num><content><p><mod>After subsection (2) of that section there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(3)</num><intro><p>In subsection (1) above “public revenue dividends” means—</p></intro><level class="para1"><num>(a)</num><content><p>income from securities which is payable out of the public revenue of the United Kingdom or Northern Ireland;</p></content></level><level class="para1"><num>(b)</num><content><p>income from securities issued by or on behalf of a government or a public or local authority in a country outside the United Kingdom.</p></content></level></subsection></quotedStructure></mod></p></content></subparagraph></paragraph><paragraph eId="schedule-7-paragraph-21" class="schProv1"><num>21</num><subparagraph eId="schedule-7-paragraph-21-1"><num>(1)</num><content><p>In section 516 (government securities held by non-resident central banks), in subsection (1), for “dividends (within the meaning of Schedule C) paid out of the public revenue of the United Kingdom where they are” there shall be substituted “income from securities which is payable out of the public revenue of the United Kingdom and which is”.</p></content></subparagraph><subparagraph eId="schedule-7-paragraph-21-2"><num>(2)</num><content><p>In subsection (2) of that section, for “such dividends” there shall be substituted “such income”.</p></content></subparagraph></paragraph><paragraph eId="schedule-7-paragraph-22" class="schProv1"><num>22</num><content><p>In section 582A (designated international organisations), subsection (3) shall be omitted.</p></content></paragraph><paragraph eId="schedule-7-paragraph-23" class="schProv1"><num>23</num><intro><p>In section 730 (transfers of income arising from securities)—</p></intro><level class="para1" eId="schedule-7-paragraph-23-a"><num>(a)</num><content><p>in subsections (2), (4)(b) and (6), for “under Schedule C or under section 123(3)”, and</p></content></level><level class="para1" eId="schedule-7-paragraph-23-b"><num>(b)</num><content><p>in subsection (8), for “under Schedule C or section 123(3)”,</p></content></level><wrapUp><p>there shall in each case be substituted “by virtue of section 18(3B)”.</p></wrapUp></paragraph><paragraph eId="schedule-7-paragraph-24" class="schProv1"><num>24</num><content><p>In section 828(2) (orders and regulations not required to be made by statutory instrument), for “section 124(6) or 841(1)(b) or paragraph 15(4) of Schedule 3” there shall be substituted “section 841(1)(b) or 841A”.</p></content></paragraph><paragraph eId="schedule-7-paragraph-25" class="schProv1"><num>25</num><content><p>In section 832(1) (interpretation of the Tax Acts), the definition of “recognised clearing system” shall be omitted.</p></content></paragraph><paragraph eId="schedule-7-paragraph-26" class="schProv1"><num>26</num><content><p><mod>After section 841 there shall be inserted the following section—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>841A</num><heading>Recognised clearing systems</heading><subsection><num>(1)</num><intro><p>In the Tax Acts, “recognised clearing system” means any system for clearing—</p></intro><level class="para1"><num>(a)</num><content><p>quoted Eurobonds (as defined by section 124), or</p></content></level><level class="para1"><num>(b)</num><content><p>relevant foreign holdings (as defined by section 18(3C)),</p></content></level><wrapUp><p>which is for the time being designated for the purposes of this section as a recognised clearing system by an order made by the Board.</p></wrapUp></subsection><subsection><num>(2)</num><intro><p>An order under this section—</p></intro><level class="para1"><num>(a)</num><content><p>may contain such transitional and other supplemental provision as appears to the Board to be necessary or expedient; and</p></content></level><level class="para1"><num>(b)</num><content><p>may be varied or revoked by a subsequent order.</p></content></level></subsection></section></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-7-paragraph-27" class="schProv1"><num>27</num><content><p>Schedule 3 (machinery for payment of income tax under Schedule C and, in certain cases, Schedule D) shall be omitted.</p></content></paragraph><paragraph eId="schedule-7-paragraph-28" class="schProv1"><num>28</num><subparagraph eId="schedule-7-paragraph-28-1"><num>(1)</num><intro><p>In Schedule 23A (manufactured dividends and interest), in paragraph 1(1) (definitions)—</p></intro><level class="para1" eId="schedule-7-paragraph-28-1-a"><num>(a)</num><content><p>in paragraph (b) of the definition of “overseas securities”, and</p></content></level><level class="para1" eId="schedule-7-paragraph-28-1-b"><num>(b)</num><content><p>in the definition of “United Kingdom securities”,</p></content></level><wrapUp><p>for “Eurobonds held in a recognised clearing system, within the meaning of section 124” there shall be substituted “Eurobonds (as defined by section 124) held in a recognised clearing system”.</p></wrapUp></subparagraph><subparagraph eId="schedule-7-paragraph-28-2"><num>(2)</num><content><p><mod>In paragraph 4(8) of that Schedule, for paragraphs (a) to (d) there shall be substituted the following paragraphs—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><level class="para1"><num>(b)</num><content><p>a foreign dividend (as defined by section 18(3D)), or</p></content></level><level class="para1"><num>(c)</num><content><p>interest on a quoted Eurobond (as defined by section 124) held in a recognised clearing system,</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-7-crossheading-other-amendments"><heading>Other amendments</heading><paragraph eId="schedule-7-paragraph-29" class="schProv1"><num>29</num><intro><p>In the Table in section 98 of the <noteRef href="#m00215" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxes Management Act 1970 (penalties in respect of certain information provisions)—</p></intro><level class="para1" eId="schedule-7-paragraph-29-a"><num>(a)</num><content><p>in the first column, the entry relating to paragraph 13(1) of Schedule 3 to the Taxes Act 1988, and</p></content></level><level class="para1" eId="schedule-7-paragraph-29-b"><num>(b)</num><content><p>in the second column, the entry relating to paragraph 6C of that Schedule,</p></content></level><wrapUp><p>shall be omitted.</p></wrapUp></paragraph><paragraph eId="schedule-7-paragraph-30" class="schProv1"><num>30</num><content><p>In section 178(2)(m) of the <noteRef href="#m00216" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1989 (provisions to which power to set rates of interest applies), the words “and paragraph 6B of Schedule 3 to” shall be omitted.</p></content></paragraph><paragraph eId="schedule-7-paragraph-31" class="schProv1"><num>31</num><content><p>In section 128 of the <noteRef href="#m00217" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1995 (limit on income chargeable on non-residents: income tax), in subsection (3)(a), the words “Schedule C,” shall be omitted.</p></content></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-7-crossheading-commencement-etc"><heading>Commencement, etc.</heading><paragraph eId="schedule-7-paragraph-32" class="schProv1"><num>32</num><intro><p>Subject to paragraphs 33 and 34 below, this Schedule has effect—</p></intro><level class="para1" eId="schedule-7-paragraph-32-a"><num>(a)</num><content><p>for the purposes of income tax, for the year 1996-97 and subsequent years of assessment;</p></content></level><level class="para1" eId="schedule-7-paragraph-32-b"><num>(b)</num><content><p>for the purposes of corporation tax, for accounting periods ending after 31st March 1996.</p></content></level></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-7-crossheading-position-of-paying-and-collecting-agents"><heading>Position of paying and collecting agents</heading><paragraph eId="schedule-7-paragraph-33" class="schProv1"><num>33</num><subparagraph eId="schedule-7-paragraph-33-1"><num>(1)</num><intro><p>Subject to the following provisions of this paragraph and paragraph 34 below—</p></intro><level class="para1" eId="schedule-7-paragraph-33-1-a"><num>(a)</num><content><p>nothing in section 79 of this Act or this Schedule shall affect the obligations of any person under Schedule 3, in relation to times to which this paragraph applies, to set apart, retain or pay any amount of tax; and</p></content></level><level class="para1" eId="schedule-7-paragraph-33-1-b"><num>(b)</num><content><p>Schedule 3 shall have effect accordingly in relation to amounts set apart, retained or paid in pursuance of those obligations.</p></content></level></subparagraph><subparagraph eId="schedule-7-paragraph-33-2"><num>(2)</num><intro><p>The repeal of Schedule 3 shall not affect the operation of paragraph 6B of that Schedule in relation to any amount—</p></intro><level class="para1" eId="schedule-7-paragraph-33-2-a"><num>(a)</num><content><p>which became due and payable in relation to a transaction occurring before the day on which this Act was passed; but</p></content></level><level class="para1" eId="schedule-7-paragraph-33-2-b"><num>(b)</num><content><p>which remains unpaid at any time on or after that day.</p></content></level></subparagraph><subparagraph eId="schedule-7-paragraph-33-3"><num>(3)</num><content><p>The Board may by regulations make provision with respect to returns to be made for the quarter which includes both times before the day on which this Act was passed and times on and after that day.</p></content></subparagraph><subparagraph eId="schedule-7-paragraph-33-4"><num>(4)</num><content><p>Regulations under sub-paragraph (3) above may, in particular, provide that section 98 of the <noteRef href="#m00218" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxes Management Act 1970 shall have effect as if it included a reference in the second column of the Table to any specified provision of the regulations.</p></content></subparagraph><subparagraph eId="schedule-7-paragraph-33-5"><num>(5)</num><content><p>In this paragraph “Schedule 3” means Schedule 3 to the Taxes Act 1988.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-7-crossheading-position-of-taxpayers"><heading>Position of taxpayers</heading><paragraph eId="schedule-7-paragraph-34" class="schProv1"><num>34</num><subparagraph eId="schedule-7-paragraph-34-1"><num>(1)</num><content><p>Transitional payments of tax made on a person’s behalf in relation to times to which this paragraph applies shall be treated as made only for the purpose of being applied in the discharge of that person’s liability to tax charged under Schedule D.</p></content></subparagraph><subparagraph eId="schedule-7-paragraph-34-2"><num>(2)</num><intro><p>If a transitional payment of tax has been made on a person’s behalf, but it appears to the Board that—</p></intro><level class="para1" eId="schedule-7-paragraph-34-2-a"><num>(a)</num><content><p>that person was not liable to tax, or</p></content></level><level class="para1" eId="schedule-7-paragraph-34-2-b"><num>(b)</num><content><p>the sum paid exceeded his liability,</p></content></level><wrapUp><p>the Board shall make or allow such repayments, adjustments or set-offs against unpaid tax as they think appropriate.</p></wrapUp></subparagraph><subparagraph eId="schedule-7-paragraph-34-3"><num>(3)</num><content><p>In this paragraph “transitional payment of tax” means a payment to which paragraph 33 above applies.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-7-crossheading-times-to-which-paragraphs-33-and-34-apply"><heading>Times to which paragraphs 33 and 34 apply</heading><paragraph eId="schedule-7-paragraph-35" class="schProv1"><num>35</num><intro><p>Paragraphs 33 and 34 above apply in relation to times falling—</p></intro><level class="para1" eId="schedule-7-paragraph-35-a"><num>(a)</num><content><p>within a year of assessment or an accounting period mentioned in paragraph 32 above, but</p></content></level><level class="para1" eId="schedule-7-paragraph-35-b"><num>(b)</num><content><p>before the day on which this Act was passed.</p></content></level></paragraph></hcontainer></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="schedule-7-crossheading-amendments-of-the-taxes-act-1988"><heading>Amendments of the Taxes Act 1988</heading><paragraph eId="schedule-7-paragraph-1" class="schProv1"><num>1</num><content><p>The Taxes Act 1988 shall be amended in accordance with paragraphs 2 to 28 below.</p></content></paragraph><paragraph eId="schedule-7-paragraph-2" class="schProv1"><num>2</num><content><p>In section 1(1) (the charge to income tax), for “Schedules A, C, D, E and F” there shall be substituted “Schedules A, D, E and F”.</p></content></paragraph><paragraph eId="schedule-7-paragraph-3" class="schProv1"><num>3</num><content><p>Section 17 (Schedule C) shall be omitted.</p></content></paragraph><paragraph eId="schedule-7-paragraph-4" class="schProv1"><num>4</num><subparagraph eId="schedule-7-paragraph-4-1"><num>(1)</num><content><p>In section 18 (Schedule D), in subsection (1), in paragraph (b) of Schedule D, for “not charged under Schedule A, C or E” there shall be substituted “not charged under Schedule A or E”.</p></content></subparagraph><subparagraph eId="schedule-7-paragraph-4-2"><num>(2)</num><intro><p>In subsection (3) of that section—</p></intro><level class="para1" eId="schedule-7-paragraph-4-2-a"><num>(a)</num><content><p>in Case III, in paragraph (c) for the words from “except income charged under Schedule C” to the end of the paragraph there shall be substituted “from securities which is payable out of the public revenue of the United Kingdom or Northern Ireland”;</p></content></level><level class="para1" eId="schedule-7-paragraph-4-2-b"><num>(b)</num><content><p>in Case IV, the words “except such income as is charged under Schedule C” shall be omitted; and</p></content></level><level class="para1" eId="schedule-7-paragraph-4-2-c"><num>(c)</num><content><p>in Case VI, for “Schedule A, C or E” there shall be substituted “Schedule A or E”.</p></content></level></subparagraph><subparagraph eId="schedule-7-paragraph-4-3"><num>(3)</num><content><p><mod>Immediately before subsection (4) of section 18, there shall be inserted the following subsections—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(3B)</num><intro><p>The references in Case IV of Schedule D to income arising from securities out of the United Kingdom, and in Case V of Schedule D to income arising from possessions out of the United Kingdom, shall be taken, in the case of relevant foreign holdings, to include references to the following—</p></intro><level class="para1"><num>(a)</num><content><p>any proceeds of such a sale or other realisation of coupons for foreign dividends as is effected by a bank in the United Kingdom which pays the proceeds over or carries them into an account;</p></content></level><level class="para1"><num>(b)</num><content><p>any proceeds of a sale of such coupons to a dealer in coupons in the United Kingdom by a person who is not a bank or another dealer in coupons.</p></content></level></subsection><subsection><num>(3C)</num><intro><p>In this section “relevant foreign holdings” means—</p></intro><level class="para1"><num>(a)</num><content><p>any securities issued by or on behalf of a government or a public or local authority in a country outside the United Kingdom; or</p></content></level><level class="para1"><num>(b)</num><content><p>any shares or securities issued by or on behalf of a body of persons not resident in the United Kingdom;</p></content></level><wrapUp><p>and “securities” here includes loan stock and similar securities.</p></wrapUp></subsection><subsection><num>(3D)</num><intro><p>In this section “foreign dividends” means—</p></intro><level class="para1"><num>(a)</num><content><p>in relation to relevant foreign holdings falling within subsection (3C)(a) above, interest or annual payments payable out of the revenue of the government or authority in question; and</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to relevant foreign holdings falling within subsection (3C)(b) above, any dividends, interest or annual payments payable in respect of the holdings in question.</p></content></level></subsection><subsection><num>(3E)</num><intro><p>In this section—</p></intro><level class="para1"><num>(a)</num><content><p>“bank” has the meaning given by section 840A; and</p></content></level><level class="para1"><num>(b)</num><content><p>references to coupons include, in relation to any foreign dividends, warrants for and bills of exchange purporting to be drawn or made in payment of those dividends.</p></content></level></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-7-paragraph-4-4"><num>(4)</num><content><p>In subsection (5) of that section, for “Part IV contains” there shall be substituted “Parts III and IV contain”.</p></content></subparagraph></paragraph><paragraph eId="schedule-7-paragraph-5" class="schProv1"><num>5</num><content><p>In section 19(1), in paragraph 2 of Schedule E, for the words “under Schedule C” there shall be substituted “under paragraph (c) of Case III of Schedule D”.</p></content></paragraph><paragraph eId="schedule-7-paragraph-6" class="schProv1"><num>6</num><content><p><mod>For the heading to Part III there shall be substituted the following heading—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><num ukl:Context="Part">Government Securities</num></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-7-paragraph-7" class="schProv1"><num>7</num><content><p>Section 44 (mode of charge of tax under Schedule C) shall be omitted.</p></content></paragraph><paragraph eId="schedule-7-paragraph-8" class="schProv1"><num>8</num><content><p>Section 45 (interpretation of Part III) shall be omitted.</p></content></paragraph><paragraph eId="schedule-7-paragraph-9" class="schProv1"><num>9</num><content><p>Section 48 (securities of foreign states) shall be omitted.</p></content></paragraph><paragraph eId="schedule-7-paragraph-10" class="schProv1"><num>10</num><content><p><mod>In section 49 (stock and dividends in name of Treasury etc.), after subsection (2) there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(3)</num><content><p>In this section “dividends” means any interest, public annuities, dividends or shares of annuities.</p></content></subsection></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-7-paragraph-11" class="schProv1"><num>11</num><content><p>In sections 50(1) and 51A(1) (which provide for interest on certain securities to be paid without deduction of tax), the words “but shall be chargeable to tax under Case III of Schedule D” shall in each case be omitted.</p></content></paragraph><paragraph eId="schedule-7-paragraph-12" class="schProv1"><num>12</num><content><p>Section 52 (taxation of interest on converted securities and interest which becomes subject to deduction) shall be omitted.</p></content></paragraph><paragraph eId="schedule-7-paragraph-13" class="schProv1"><num>13</num><content><p>Section 123 (foreign dividends) shall be omitted.</p></content></paragraph><paragraph eId="schedule-7-paragraph-14" class="schProv1"><num>14</num><intro><p>In section 124—</p></intro><level class="para1" eId="schedule-7-paragraph-14-a"><num>(a)</num><content><p>in subsection (6) (definitions in connection with quoted Eurobonds), the definitions of “recognised clearing system” and “relevant foreign securities”, and the word “and” immediately preceding those definitions, and</p></content></level><level class="para1" eId="schedule-7-paragraph-14-b"><num>(b)</num><content><p>subsection (7),</p></content></level><wrapUp><p>shall be omitted.</p></wrapUp></paragraph><paragraph eId="schedule-7-paragraph-15" class="schProv1"><num>15</num><content><p>In section 322(1) (consular officers and employees), the words “and he shall be treated as not resident in the United Kingdom for the purposes of sections 48 and 123(4)” shall be omitted.</p></content></paragraph><paragraph eId="schedule-7-paragraph-16" class="schProv1"><num>16</num><content><p>In section 398 (transactions in deposits with and without certificates or in debts), in paragraph (b), the words “C or” shall be omitted.</p></content></paragraph><paragraph eId="schedule-7-paragraph-17" class="schProv1"><num>17</num><content><p><mod>In section 468M(4) (meaning of “eligible income” in connection with interest distributions of authorised unit trusts), for paragraphs (c) to (e) there shall be substituted the following paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(cc)</num><content><p>any foreign dividends (as defined by section 18(3D)) and any proceeds falling within section 18(3B)(a) or (b);</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></paragraph><paragraph eId="schedule-7-paragraph-18" class="schProv1"><num>18</num><content><p>In section 474 (treatment of tax-free income), subsections (1) and (3) shall be omitted.</p></content></paragraph><paragraph eId="schedule-7-paragraph-19" class="schProv1"><num>19</num><subparagraph eId="schedule-7-paragraph-19-1"><num>(1)</num><content><p>In section 505 (exemptions for charities), in subsection (1), in paragraph (c), sub-paragraph (i) shall be omitted.</p></content></subparagraph><subparagraph eId="schedule-7-paragraph-19-2"><num>(2)</num><content><p><mod>For paragraph (d) of that subsection there shall be substituted the following paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(d)</num><intro><p>exemption from tax under Schedule D in respect of public revenue dividends on securities which are in the name of trustees, to the extent that the dividends are applicable and applied only for the repair of—</p></intro><level class="para2"><num>(i)</num><content><p>any cathedral, college, church or chapel, or</p></content></level><level class="para2"><num>(ii)</num><content><p>any building used only for the purposes of divine worship;</p></content></level></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-7-paragraph-19-3"><num>(3)</num><content><p><mod>After that subsection there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1A)</num><intro><p>In subsection (1)(d) above “public revenue dividends” means—</p></intro><level class="para1"><num>(a)</num><content><p>income from securities which is payable out of the public revenue of the United Kingdom or Northern Ireland;</p></content></level><level class="para1"><num>(b)</num><content><p>income from securities issued by or on behalf of a government or a public or local authority in a country outside the United Kingdom.</p></content></level></subsection></quotedStructure></mod></p></content></subparagraph></paragraph><paragraph eId="schedule-7-paragraph-20" class="schProv1"><num>20</num><subparagraph eId="schedule-7-paragraph-20-1"><num>(1)</num><intro><p>In section 512 (exemption from income tax for Atomic Energy Authority and National Radiological Protection Board)—</p></intro><level class="para1" eId="schedule-7-paragraph-20-1-a"><num>(a)</num><content><p>in subsection (1)(a), for “Schedules A and C” there shall be substituted “Schedule A”; and</p></content></level><level class="para1" eId="schedule-7-paragraph-20-1-b"><num>(b)</num><content><p>in subsection (1)(b), after “annual payment” there shall be inserted “or in respect of public revenue dividends”.</p></content></level></subparagraph><subparagraph eId="schedule-7-paragraph-20-2"><num>(2)</num><content><p><mod>After subsection (2) of that section there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(3)</num><intro><p>In subsection (1) above “public revenue dividends” means—</p></intro><level class="para1"><num>(a)</num><content><p>income from securities which is payable out of the public revenue of the United Kingdom or Northern Ireland;</p></content></level><level class="para1"><num>(b)</num><content><p>income from securities issued by or on behalf of a government or a public or local authority in a country outside the United Kingdom.</p></content></level></subsection></quotedStructure></mod></p></content></subparagraph></paragraph><paragraph eId="schedule-7-paragraph-21" class="schProv1"><num>21</num><subparagraph eId="schedule-7-paragraph-21-1"><num>(1)</num><content><p>In section 516 (government securities held by non-resident central banks), in subsection (1), for “dividends (within the meaning of Schedule C) paid out of the public revenue of the United Kingdom where they are” there shall be substituted “income from securities which is payable out of the public revenue of the United Kingdom and which is”.</p></content></subparagraph><subparagraph eId="schedule-7-paragraph-21-2"><num>(2)</num><content><p>In subsection (2) of that section, for “such dividends” there shall be substituted “such income”.</p></content></subparagraph></paragraph><paragraph eId="schedule-7-paragraph-22" class="schProv1"><num>22</num><content><p>In section 582A (designated international organisations), subsection (3) shall be omitted.</p></content></paragraph><paragraph eId="schedule-7-paragraph-23" class="schProv1"><num>23</num><intro><p>In section 730 (transfers of income arising from securities)—</p></intro><level class="para1" eId="schedule-7-paragraph-23-a"><num>(a)</num><content><p>in subsections (2), (4)(b) and (6), for “under Schedule C or under section 123(3)”, and</p></content></level><level class="para1" eId="schedule-7-paragraph-23-b"><num>(b)</num><content><p>in subsection (8), for “under Schedule C or section 123(3)”,</p></content></level><wrapUp><p>there shall in each case be substituted “by virtue of section 18(3B)”.</p></wrapUp></paragraph><paragraph eId="schedule-7-paragraph-24" class="schProv1"><num>24</num><content><p>In section 828(2) (orders and regulations not required to be made by statutory instrument), for “section 124(6) or 841(1)(b) or paragraph 15(4) of Schedule 3” there shall be substituted “section 841(1)(b) or 841A”.</p></content></paragraph><paragraph eId="schedule-7-paragraph-25" class="schProv1"><num>25</num><content><p>In section 832(1) (interpretation of the Tax Acts), the definition of “recognised clearing system” shall be omitted.</p></content></paragraph><paragraph eId="schedule-7-paragraph-26" class="schProv1"><num>26</num><content><p><mod>After section 841 there shall be inserted the following section—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>841A</num><heading>Recognised clearing systems</heading><subsection><num>(1)</num><intro><p>In the Tax Acts, “recognised clearing system” means any system for clearing—</p></intro><level class="para1"><num>(a)</num><content><p>quoted Eurobonds (as defined by section 124), or</p></content></level><level class="para1"><num>(b)</num><content><p>relevant foreign holdings (as defined by section 18(3C)),</p></content></level><wrapUp><p>which is for the time being designated for the purposes of this section as a recognised clearing system by an order made by the Board.</p></wrapUp></subsection><subsection><num>(2)</num><intro><p>An order under this section—</p></intro><level class="para1"><num>(a)</num><content><p>may contain such transitional and other supplemental provision as appears to the Board to be necessary or expedient; and</p></content></level><level class="para1"><num>(b)</num><content><p>may be varied or revoked by a subsequent order.</p></content></level></subsection></section></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-7-paragraph-27" class="schProv1"><num>27</num><content><p>Schedule 3 (machinery for payment of income tax under Schedule C and, in certain cases, Schedule D) shall be omitted.</p></content></paragraph><paragraph eId="schedule-7-paragraph-28" class="schProv1"><num>28</num><subparagraph eId="schedule-7-paragraph-28-1"><num>(1)</num><intro><p>In Schedule 23A (manufactured dividends and interest), in paragraph 1(1) (definitions)—</p></intro><level class="para1" eId="schedule-7-paragraph-28-1-a"><num>(a)</num><content><p>in paragraph (b) of the definition of “overseas securities”, and</p></content></level><level class="para1" eId="schedule-7-paragraph-28-1-b"><num>(b)</num><content><p>in the definition of “United Kingdom securities”,</p></content></level><wrapUp><p>for “Eurobonds held in a recognised clearing system, within the meaning of section 124” there shall be substituted “Eurobonds (as defined by section 124) held in a recognised clearing system”.</p></wrapUp></subparagraph><subparagraph eId="schedule-7-paragraph-28-2"><num>(2)</num><content><p><mod>In paragraph 4(8) of that Schedule, for paragraphs (a) to (d) there shall be substituted the following paragraphs—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><level class="para1"><num>(b)</num><content><p>a foreign dividend (as defined by section 18(3D)), or</p></content></level><level class="para1"><num>(c)</num><content><p>interest on a quoted Eurobond (as defined by section 124) held in a recognised clearing system,</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph></paragraph></hcontainer>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-7-paragraph-1" class="schProv1"><num>1</num><content><p>The Taxes Act 1988 shall be amended in accordance with paragraphs 2 to 28 below.</p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-7-paragraph-2" class="schProv1"><num>2</num><content><p>In section 1(1) (the charge to income tax), for “Schedules A, C, D, E and F” there shall be substituted “Schedules A, D, E and F”.</p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-7-paragraph-3" class="schProv1"><num>3</num><content><p>Section 17 (Schedule C) shall be omitted.</p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-7-paragraph-4" class="schProv1"><num>4</num><subparagraph eId="schedule-7-paragraph-4-1"><num>(1)</num><content><p>In section 18 (Schedule D), in subsection (1), in paragraph (b) of Schedule D, for “not charged under Schedule A, C or E” there shall be substituted “not charged under Schedule A or E”.</p></content></subparagraph><subparagraph eId="schedule-7-paragraph-4-2"><num>(2)</num><intro><p>In subsection (3) of that section—</p></intro><level class="para1" eId="schedule-7-paragraph-4-2-a"><num>(a)</num><content><p>in Case III, in paragraph (c) for the words from “except income charged under Schedule C” to the end of the paragraph there shall be substituted “from securities which is payable out of the public revenue of the United Kingdom or Northern Ireland”;</p></content></level><level class="para1" eId="schedule-7-paragraph-4-2-b"><num>(b)</num><content><p>in Case IV, the words “except such income as is charged under Schedule C” shall be omitted; and</p></content></level><level class="para1" eId="schedule-7-paragraph-4-2-c"><num>(c)</num><content><p>in Case VI, for “Schedule A, C or E” there shall be substituted “Schedule A or E”.</p></content></level></subparagraph><subparagraph eId="schedule-7-paragraph-4-3"><num>(3)</num><content><p><mod>Immediately before subsection (4) of section 18, there shall be inserted the following subsections—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(3B)</num><intro><p>The references in Case IV of Schedule D to income arising from securities out of the United Kingdom, and in Case V of Schedule D to income arising from possessions out of the United Kingdom, shall be taken, in the case of relevant foreign holdings, to include references to the following—</p></intro><level class="para1"><num>(a)</num><content><p>any proceeds of such a sale or other realisation of coupons for foreign dividends as is effected by a bank in the United Kingdom which pays the proceeds over or carries them into an account;</p></content></level><level class="para1"><num>(b)</num><content><p>any proceeds of a sale of such coupons to a dealer in coupons in the United Kingdom by a person who is not a bank or another dealer in coupons.</p></content></level></subsection><subsection><num>(3C)</num><intro><p>In this section “relevant foreign holdings” means—</p></intro><level class="para1"><num>(a)</num><content><p>any securities issued by or on behalf of a government or a public or local authority in a country outside the United Kingdom; or</p></content></level><level class="para1"><num>(b)</num><content><p>any shares or securities issued by or on behalf of a body of persons not resident in the United Kingdom;</p></content></level><wrapUp><p>and “securities” here includes loan stock and similar securities.</p></wrapUp></subsection><subsection><num>(3D)</num><intro><p>In this section “foreign dividends” means—</p></intro><level class="para1"><num>(a)</num><content><p>in relation to relevant foreign holdings falling within subsection (3C)(a) above, interest or annual payments payable out of the revenue of the government or authority in question; and</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to relevant foreign holdings falling within subsection (3C)(b) above, any dividends, interest or annual payments payable in respect of the holdings in question.</p></content></level></subsection><subsection><num>(3E)</num><intro><p>In this section—</p></intro><level class="para1"><num>(a)</num><content><p>“bank” has the meaning given by section 840A; and</p></content></level><level class="para1"><num>(b)</num><content><p>references to coupons include, in relation to any foreign dividends, warrants for and bills of exchange purporting to be drawn or made in payment of those dividends.</p></content></level></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-7-paragraph-4-4"><num>(4)</num><content><p>In subsection (5) of that section, for “Part IV contains” there shall be substituted “Parts III and IV contain”.</p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-7-paragraph-5" class="schProv1"><num>5</num><content><p>In section 19(1), in paragraph 2 of Schedule E, for the words “under Schedule C” there shall be substituted “under paragraph (c) of Case III of Schedule D”.</p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-7-paragraph-6" class="schProv1"><num>6</num><content><p><mod>For the heading to Part III there shall be substituted the following heading—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><num ukl:Context="Part">Government Securities</num></quotedStructure></mod></p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-7-paragraph-7" class="schProv1"><num>7</num><content><p>Section 44 (mode of charge of tax under Schedule C) shall be omitted.</p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-7-paragraph-8" class="schProv1"><num>8</num><content><p>Section 45 (interpretation of Part III) shall be omitted.</p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-7-paragraph-9" class="schProv1"><num>9</num><content><p>Section 48 (securities of foreign states) shall be omitted.</p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-7-paragraph-10" class="schProv1"><num>10</num><content><p><mod>In section 49 (stock and dividends in name of Treasury etc.), after subsection (2) there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(3)</num><content><p>In this section “dividends” means any interest, public annuities, dividends or shares of annuities.</p></content></subsection></quotedStructure></mod></p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-7-paragraph-11" class="schProv1"><num>11</num><content><p>In sections 50(1) and 51A(1) (which provide for interest on certain securities to be paid without deduction of tax), the words “but shall be chargeable to tax under Case III of Schedule D” shall in each case be omitted.</p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-7-paragraph-12" class="schProv1"><num>12</num><content><p>Section 52 (taxation of interest on converted securities and interest which becomes subject to deduction) shall be omitted.</p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-7-paragraph-13" class="schProv1"><num>13</num><content><p>Section 123 (foreign dividends) shall be omitted.</p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-7-paragraph-14" class="schProv1"><num>14</num><intro><p>In section 124—</p></intro><level class="para1" eId="schedule-7-paragraph-14-a"><num>(a)</num><content><p>in subsection (6) (definitions in connection with quoted Eurobonds), the definitions of “recognised clearing system” and “relevant foreign securities”, and the word “and” immediately preceding those definitions, and</p></content></level><level class="para1" eId="schedule-7-paragraph-14-b"><num>(b)</num><content><p>subsection (7),</p></content></level><wrapUp><p>shall be omitted.</p></wrapUp></paragraph>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-7-paragraph-14-a"><num>(a)</num><content><p>in subsection (6) (definitions in connection with quoted Eurobonds), the definitions of “recognised clearing system” and “relevant foreign securities”, and the word “and” immediately preceding those definitions, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-7-paragraph-14-b"><num>(b)</num><content><p>subsection (7),</p></content></level>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-7-paragraph-15" class="schProv1"><num>15</num><content><p>In section 322(1) (consular officers and employees), the words “and he shall be treated as not resident in the United Kingdom for the purposes of sections 48 and 123(4)” shall be omitted.</p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-7-paragraph-16" class="schProv1"><num>16</num><content><p>In section 398 (transactions in deposits with and without certificates or in debts), in paragraph (b), the words “C or” shall be omitted.</p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-7-paragraph-17" class="schProv1"><num>17</num><content><p><mod>In section 468M(4) (meaning of “eligible income” in connection with interest distributions of authorised unit trusts), for paragraphs (c) to (e) there shall be substituted the following paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(cc)</num><content><p>any foreign dividends (as defined by section 18(3D)) and any proceeds falling within section 18(3B)(a) or (b);</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-7-paragraph-18" class="schProv1"><num>18</num><content><p>In section 474 (treatment of tax-free income), subsections (1) and (3) shall be omitted.</p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-7-paragraph-19" class="schProv1"><num>19</num><subparagraph eId="schedule-7-paragraph-19-1"><num>(1)</num><content><p>In section 505 (exemptions for charities), in subsection (1), in paragraph (c), sub-paragraph (i) shall be omitted.</p></content></subparagraph><subparagraph eId="schedule-7-paragraph-19-2"><num>(2)</num><content><p><mod>For paragraph (d) of that subsection there shall be substituted the following paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(d)</num><intro><p>exemption from tax under Schedule D in respect of public revenue dividends on securities which are in the name of trustees, to the extent that the dividends are applicable and applied only for the repair of—</p></intro><level class="para2"><num>(i)</num><content><p>any cathedral, college, church or chapel, or</p></content></level><level class="para2"><num>(ii)</num><content><p>any building used only for the purposes of divine worship;</p></content></level></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-7-paragraph-19-3"><num>(3)</num><content><p><mod>After that subsection there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1A)</num><intro><p>In subsection (1)(d) above “public revenue dividends” means—</p></intro><level class="para1"><num>(a)</num><content><p>income from securities which is payable out of the public revenue of the United Kingdom or Northern Ireland;</p></content></level><level class="para1"><num>(b)</num><content><p>income from securities issued by or on behalf of a government or a public or local authority in a country outside the United Kingdom.</p></content></level></subsection></quotedStructure></mod></p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-7-paragraph-20" class="schProv1"><num>20</num><subparagraph eId="schedule-7-paragraph-20-1"><num>(1)</num><intro><p>In section 512 (exemption from income tax for Atomic Energy Authority and National Radiological Protection Board)—</p></intro><level class="para1" eId="schedule-7-paragraph-20-1-a"><num>(a)</num><content><p>in subsection (1)(a), for “Schedules A and C” there shall be substituted “Schedule A”; and</p></content></level><level class="para1" eId="schedule-7-paragraph-20-1-b"><num>(b)</num><content><p>in subsection (1)(b), after “annual payment” there shall be inserted “or in respect of public revenue dividends”.</p></content></level></subparagraph><subparagraph eId="schedule-7-paragraph-20-2"><num>(2)</num><content><p><mod>After subsection (2) of that section there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(3)</num><intro><p>In subsection (1) above “public revenue dividends” means—</p></intro><level class="para1"><num>(a)</num><content><p>income from securities which is payable out of the public revenue of the United Kingdom or Northern Ireland;</p></content></level><level class="para1"><num>(b)</num><content><p>income from securities issued by or on behalf of a government or a public or local authority in a country outside the United Kingdom.</p></content></level></subsection></quotedStructure></mod></p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-7-paragraph-21" class="schProv1"><num>21</num><subparagraph eId="schedule-7-paragraph-21-1"><num>(1)</num><content><p>In section 516 (government securities held by non-resident central banks), in subsection (1), for “dividends (within the meaning of Schedule C) paid out of the public revenue of the United Kingdom where they are” there shall be substituted “income from securities which is payable out of the public revenue of the United Kingdom and which is”.</p></content></subparagraph><subparagraph eId="schedule-7-paragraph-21-2"><num>(2)</num><content><p>In subsection (2) of that section, for “such dividends” there shall be substituted “such income”.</p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-7-paragraph-22" class="schProv1"><num>22</num><content><p>In section 582A (designated international organisations), subsection (3) shall be omitted.</p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-7-paragraph-23" class="schProv1"><num>23</num><intro><p>In section 730 (transfers of income arising from securities)—</p></intro><level class="para1" eId="schedule-7-paragraph-23-a"><num>(a)</num><content><p>in subsections (2), (4)(b) and (6), for “under Schedule C or under section 123(3)”, and</p></content></level><level class="para1" eId="schedule-7-paragraph-23-b"><num>(b)</num><content><p>in subsection (8), for “under Schedule C or section 123(3)”,</p></content></level><wrapUp><p>there shall in each case be substituted “by virtue of section 18(3B)”.</p></wrapUp></paragraph>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-7-paragraph-23-a"><num>(a)</num><content><p>in subsections (2), (4)(b) and (6), for “under Schedule C or under section 123(3)”, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-7-paragraph-23-b"><num>(b)</num><content><p>in subsection (8), for “under Schedule C or section 123(3)”,</p></content></level>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-7-paragraph-24" class="schProv1"><num>24</num><content><p>In section 828(2) (orders and regulations not required to be made by statutory instrument), for “section 124(6) or 841(1)(b) or paragraph 15(4) of Schedule 3” there shall be substituted “section 841(1)(b) or 841A”.</p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-7-paragraph-25" class="schProv1"><num>25</num><content><p>In section 832(1) (interpretation of the Tax Acts), the definition of “recognised clearing system” shall be omitted.</p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-7-paragraph-26" class="schProv1"><num>26</num><content><p><mod>After section 841 there shall be inserted the following section—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>841A</num><heading>Recognised clearing systems</heading><subsection><num>(1)</num><intro><p>In the Tax Acts, “recognised clearing system” means any system for clearing—</p></intro><level class="para1"><num>(a)</num><content><p>quoted Eurobonds (as defined by section 124), or</p></content></level><level class="para1"><num>(b)</num><content><p>relevant foreign holdings (as defined by section 18(3C)),</p></content></level><wrapUp><p>which is for the time being designated for the purposes of this section as a recognised clearing system by an order made by the Board.</p></wrapUp></subsection><subsection><num>(2)</num><intro><p>An order under this section—</p></intro><level class="para1"><num>(a)</num><content><p>may contain such transitional and other supplemental provision as appears to the Board to be necessary or expedient; and</p></content></level><level class="para1"><num>(b)</num><content><p>may be varied or revoked by a subsequent order.</p></content></level></subsection></section></quotedStructure></mod></p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-7-paragraph-27" class="schProv1"><num>27</num><content><p>Schedule 3 (machinery for payment of income tax under Schedule C and, in certain cases, Schedule D) shall be omitted.</p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-7-paragraph-28" class="schProv1"><num>28</num><subparagraph eId="schedule-7-paragraph-28-1"><num>(1)</num><intro><p>In Schedule 23A (manufactured dividends and interest), in paragraph 1(1) (definitions)—</p></intro><level class="para1" eId="schedule-7-paragraph-28-1-a"><num>(a)</num><content><p>in paragraph (b) of the definition of “overseas securities”, and</p></content></level><level class="para1" eId="schedule-7-paragraph-28-1-b"><num>(b)</num><content><p>in the definition of “United Kingdom securities”,</p></content></level><wrapUp><p>for “Eurobonds held in a recognised clearing system, within the meaning of section 124” there shall be substituted “Eurobonds (as defined by section 124) held in a recognised clearing system”.</p></wrapUp></subparagraph><subparagraph eId="schedule-7-paragraph-28-2"><num>(2)</num><content><p><mod>In paragraph 4(8) of that Schedule, for paragraphs (a) to (d) there shall be substituted the following paragraphs—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><level class="para1"><num>(b)</num><content><p>a foreign dividend (as defined by section 18(3D)), or</p></content></level><level class="para1"><num>(c)</num><content><p>interest on a quoted Eurobond (as defined by section 124) held in a recognised clearing system,</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph></paragraph>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="schedule-7-crossheading-other-amendments"><heading>Other amendments</heading><paragraph eId="schedule-7-paragraph-29" class="schProv1"><num>29</num><intro><p>In the Table in section 98 of the <noteRef href="#m00215" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxes Management Act 1970 (penalties in respect of certain information provisions)—</p></intro><level class="para1" eId="schedule-7-paragraph-29-a"><num>(a)</num><content><p>in the first column, the entry relating to paragraph 13(1) of Schedule 3 to the Taxes Act 1988, and</p></content></level><level class="para1" eId="schedule-7-paragraph-29-b"><num>(b)</num><content><p>in the second column, the entry relating to paragraph 6C of that Schedule,</p></content></level><wrapUp><p>shall be omitted.</p></wrapUp></paragraph><paragraph eId="schedule-7-paragraph-30" class="schProv1"><num>30</num><content><p>In section 178(2)(m) of the <noteRef href="#m00216" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1989 (provisions to which power to set rates of interest applies), the words “and paragraph 6B of Schedule 3 to” shall be omitted.</p></content></paragraph><paragraph eId="schedule-7-paragraph-31" class="schProv1"><num>31</num><content><p>In section 128 of the <noteRef href="#m00217" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1995 (limit on income chargeable on non-residents: income tax), in subsection (3)(a), the words “Schedule C,” shall be omitted.</p></content></paragraph></hcontainer>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-7-paragraph-29" class="schProv1"><num>29</num><intro><p>In the Table in section 98 of the <noteRef href="#m00215" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxes Management Act 1970 (penalties in respect of certain information provisions)—</p></intro><level class="para1" eId="schedule-7-paragraph-29-a"><num>(a)</num><content><p>in the first column, the entry relating to paragraph 13(1) of Schedule 3 to the Taxes Act 1988, and</p></content></level><level class="para1" eId="schedule-7-paragraph-29-b"><num>(b)</num><content><p>in the second column, the entry relating to paragraph 6C of that Schedule,</p></content></level><wrapUp><p>shall be omitted.</p></wrapUp></paragraph>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-7-paragraph-29-a"><num>(a)</num><content><p>in the first column, the entry relating to paragraph 13(1) of Schedule 3 to the Taxes Act 1988, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-7-paragraph-29-b"><num>(b)</num><content><p>in the second column, the entry relating to paragraph 6C of that Schedule,</p></content></level>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-7-paragraph-30" class="schProv1"><num>30</num><content><p>In section 178(2)(m) of the <noteRef href="#m00216" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1989 (provisions to which power to set rates of interest applies), the words “and paragraph 6B of Schedule 3 to” shall be omitted.</p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-7-paragraph-31" class="schProv1"><num>31</num><content><p>In section 128 of the <noteRef href="#m00217" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1995 (limit on income chargeable on non-residents: income tax), in subsection (3)(a), the words “Schedule C,” shall be omitted.</p></content></paragraph>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="schedule-7-crossheading-commencement-etc"><heading>Commencement, etc.</heading><paragraph eId="schedule-7-paragraph-32" class="schProv1"><num>32</num><intro><p>Subject to paragraphs 33 and 34 below, this Schedule has effect—</p></intro><level class="para1" eId="schedule-7-paragraph-32-a"><num>(a)</num><content><p>for the purposes of income tax, for the year 1996-97 and subsequent years of assessment;</p></content></level><level class="para1" eId="schedule-7-paragraph-32-b"><num>(b)</num><content><p>for the purposes of corporation tax, for accounting periods ending after 31st March 1996.</p></content></level></paragraph></hcontainer>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-7-paragraph-32" class="schProv1"><num>32</num><intro><p>Subject to paragraphs 33 and 34 below, this Schedule has effect—</p></intro><level class="para1" eId="schedule-7-paragraph-32-a"><num>(a)</num><content><p>for the purposes of income tax, for the year 1996-97 and subsequent years of assessment;</p></content></level><level class="para1" eId="schedule-7-paragraph-32-b"><num>(b)</num><content><p>for the purposes of corporation tax, for accounting periods ending after 31st March 1996.</p></content></level></paragraph>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-7-paragraph-32-a"><num>(a)</num><content><p>for the purposes of income tax, for the year 1996-97 and subsequent years of assessment;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-7-paragraph-32-b"><num>(b)</num><content><p>for the purposes of corporation tax, for accounting periods ending after 31st March 1996.</p></content></level>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="schedule-7-crossheading-position-of-paying-and-collecting-agents"><heading>Position of paying and collecting agents</heading><paragraph eId="schedule-7-paragraph-33" class="schProv1"><num>33</num><subparagraph eId="schedule-7-paragraph-33-1"><num>(1)</num><intro><p>Subject to the following provisions of this paragraph and paragraph 34 below—</p></intro><level class="para1" eId="schedule-7-paragraph-33-1-a"><num>(a)</num><content><p>nothing in section 79 of this Act or this Schedule shall affect the obligations of any person under Schedule 3, in relation to times to which this paragraph applies, to set apart, retain or pay any amount of tax; and</p></content></level><level class="para1" eId="schedule-7-paragraph-33-1-b"><num>(b)</num><content><p>Schedule 3 shall have effect accordingly in relation to amounts set apart, retained or paid in pursuance of those obligations.</p></content></level></subparagraph><subparagraph eId="schedule-7-paragraph-33-2"><num>(2)</num><intro><p>The repeal of Schedule 3 shall not affect the operation of paragraph 6B of that Schedule in relation to any amount—</p></intro><level class="para1" eId="schedule-7-paragraph-33-2-a"><num>(a)</num><content><p>which became due and payable in relation to a transaction occurring before the day on which this Act was passed; but</p></content></level><level class="para1" eId="schedule-7-paragraph-33-2-b"><num>(b)</num><content><p>which remains unpaid at any time on or after that day.</p></content></level></subparagraph><subparagraph eId="schedule-7-paragraph-33-3"><num>(3)</num><content><p>The Board may by regulations make provision with respect to returns to be made for the quarter which includes both times before the day on which this Act was passed and times on and after that day.</p></content></subparagraph><subparagraph eId="schedule-7-paragraph-33-4"><num>(4)</num><content><p>Regulations under sub-paragraph (3) above may, in particular, provide that section 98 of the <noteRef href="#m00218" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxes Management Act 1970 shall have effect as if it included a reference in the second column of the Table to any specified provision of the regulations.</p></content></subparagraph><subparagraph eId="schedule-7-paragraph-33-5"><num>(5)</num><content><p>In this paragraph “Schedule 3” means Schedule 3 to the Taxes Act 1988.</p></content></subparagraph></paragraph></hcontainer>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-7-paragraph-33" class="schProv1"><num>33</num><subparagraph eId="schedule-7-paragraph-33-1"><num>(1)</num><intro><p>Subject to the following provisions of this paragraph and paragraph 34 below—</p></intro><level class="para1" eId="schedule-7-paragraph-33-1-a"><num>(a)</num><content><p>nothing in section 79 of this Act or this Schedule shall affect the obligations of any person under Schedule 3, in relation to times to which this paragraph applies, to set apart, retain or pay any amount of tax; and</p></content></level><level class="para1" eId="schedule-7-paragraph-33-1-b"><num>(b)</num><content><p>Schedule 3 shall have effect accordingly in relation to amounts set apart, retained or paid in pursuance of those obligations.</p></content></level></subparagraph><subparagraph eId="schedule-7-paragraph-33-2"><num>(2)</num><intro><p>The repeal of Schedule 3 shall not affect the operation of paragraph 6B of that Schedule in relation to any amount—</p></intro><level class="para1" eId="schedule-7-paragraph-33-2-a"><num>(a)</num><content><p>which became due and payable in relation to a transaction occurring before the day on which this Act was passed; but</p></content></level><level class="para1" eId="schedule-7-paragraph-33-2-b"><num>(b)</num><content><p>which remains unpaid at any time on or after that day.</p></content></level></subparagraph><subparagraph eId="schedule-7-paragraph-33-3"><num>(3)</num><content><p>The Board may by regulations make provision with respect to returns to be made for the quarter which includes both times before the day on which this Act was passed and times on and after that day.</p></content></subparagraph><subparagraph eId="schedule-7-paragraph-33-4"><num>(4)</num><content><p>Regulations under sub-paragraph (3) above may, in particular, provide that section 98 of the <noteRef href="#m00218" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxes Management Act 1970 shall have effect as if it included a reference in the second column of the Table to any specified provision of the regulations.</p></content></subparagraph><subparagraph eId="schedule-7-paragraph-33-5"><num>(5)</num><content><p>In this paragraph “Schedule 3” means Schedule 3 to the Taxes Act 1988.</p></content></subparagraph></paragraph>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="schedule-7-crossheading-position-of-taxpayers"><heading>Position of taxpayers</heading><paragraph eId="schedule-7-paragraph-34" class="schProv1"><num>34</num><subparagraph eId="schedule-7-paragraph-34-1"><num>(1)</num><content><p>Transitional payments of tax made on a person’s behalf in relation to times to which this paragraph applies shall be treated as made only for the purpose of being applied in the discharge of that person’s liability to tax charged under Schedule D.</p></content></subparagraph><subparagraph eId="schedule-7-paragraph-34-2"><num>(2)</num><intro><p>If a transitional payment of tax has been made on a person’s behalf, but it appears to the Board that—</p></intro><level class="para1" eId="schedule-7-paragraph-34-2-a"><num>(a)</num><content><p>that person was not liable to tax, or</p></content></level><level class="para1" eId="schedule-7-paragraph-34-2-b"><num>(b)</num><content><p>the sum paid exceeded his liability,</p></content></level><wrapUp><p>the Board shall make or allow such repayments, adjustments or set-offs against unpaid tax as they think appropriate.</p></wrapUp></subparagraph><subparagraph eId="schedule-7-paragraph-34-3"><num>(3)</num><content><p>In this paragraph “transitional payment of tax” means a payment to which paragraph 33 above applies.</p></content></subparagraph></paragraph></hcontainer>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-7-paragraph-34" class="schProv1"><num>34</num><subparagraph eId="schedule-7-paragraph-34-1"><num>(1)</num><content><p>Transitional payments of tax made on a person’s behalf in relation to times to which this paragraph applies shall be treated as made only for the purpose of being applied in the discharge of that person’s liability to tax charged under Schedule D.</p></content></subparagraph><subparagraph eId="schedule-7-paragraph-34-2"><num>(2)</num><intro><p>If a transitional payment of tax has been made on a person’s behalf, but it appears to the Board that—</p></intro><level class="para1" eId="schedule-7-paragraph-34-2-a"><num>(a)</num><content><p>that person was not liable to tax, or</p></content></level><level class="para1" eId="schedule-7-paragraph-34-2-b"><num>(b)</num><content><p>the sum paid exceeded his liability,</p></content></level><wrapUp><p>the Board shall make or allow such repayments, adjustments or set-offs against unpaid tax as they think appropriate.</p></wrapUp></subparagraph><subparagraph eId="schedule-7-paragraph-34-3"><num>(3)</num><content><p>In this paragraph “transitional payment of tax” means a payment to which paragraph 33 above applies.</p></content></subparagraph></paragraph>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="schedule-7-crossheading-times-to-which-paragraphs-33-and-34-apply"><heading>Times to which paragraphs 33 and 34 apply</heading><paragraph eId="schedule-7-paragraph-35" class="schProv1"><num>35</num><intro><p>Paragraphs 33 and 34 above apply in relation to times falling—</p></intro><level class="para1" eId="schedule-7-paragraph-35-a"><num>(a)</num><content><p>within a year of assessment or an accounting period mentioned in paragraph 32 above, but</p></content></level><level class="para1" eId="schedule-7-paragraph-35-b"><num>(b)</num><content><p>before the day on which this Act was passed.</p></content></level></paragraph></hcontainer>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-7-paragraph-35" class="schProv1"><num>35</num><intro><p>Paragraphs 33 and 34 above apply in relation to times falling—</p></intro><level class="para1" eId="schedule-7-paragraph-35-a"><num>(a)</num><content><p>within a year of assessment or an accounting period mentioned in paragraph 32 above, but</p></content></level><level class="para1" eId="schedule-7-paragraph-35-b"><num>(b)</num><content><p>before the day on which this Act was passed.</p></content></level></paragraph>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-7-paragraph-35-a"><num>(a)</num><content><p>within a year of assessment or an accounting period mentioned in paragraph 32 above, but</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-7-paragraph-35-b"><num>(b)</num><content><p>before the day on which this Act was passed.</p></content></level>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="schedule" eId="schedule-8"><num>SCHEDULE 8<authorialNote class="referenceNote"><p>Section 83.</p></authorialNote></num><heading>Loan relationships: claims relating to deficits</heading><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-8-crossheading-claim-to-set-off-deficit-against-other-profits-for-the-deficit-period"><heading>Claim to set off deficit against other profits for the deficit period</heading><paragraph eId="schedule-8-paragraph-1" class="schProv1"><num>1</num><subparagraph eId="schedule-8-paragraph-1-1"><num>(1)</num><content><p>This paragraph applies where a claim is made under section 83(2)(a) of this Act for the whole or any part of the deficit to be set off against profits of any description for the deficit period.</p></content></subparagraph><subparagraph eId="schedule-8-paragraph-1-2"><num>(2)</num><intro><p>Subject to the following provisions of this paragraph—</p></intro><level class="para1" eId="schedule-8-paragraph-1-2-a"><num>(a)</num><content><p>the amount to which the claim relates shall be set off against the profits of the company for the deficit period that are identified in the claim; and</p></content></level><level class="para1" eId="schedule-8-paragraph-1-2-b"><num>(b)</num><content><p>those profits shall be treated as reduced accordingly.</p></content></level></subparagraph><subparagraph eId="schedule-8-paragraph-1-3"><num>(3)</num><intro><p>Any reduction by virtue of sub-paragraph (2) above shall be made—</p></intro><level class="para1" eId="schedule-8-paragraph-1-3-a"><num>(a)</num><content><p>after relief has been given for any loss incurred in a trade in an earlier accounting period; and</p></content></level><level class="para1" eId="schedule-8-paragraph-1-3-b"><num>(b)</num><intro><p>before any relief is given against profits for that period either—</p></intro><level class="para2" eId="schedule-8-paragraph-1-3-b-i"><num>(i)</num><content><p>under section 393A(1) of the Taxes Act 1988 (trading losses set against profits for the same or preceding accounting periods); or</p></content></level><level class="para2" eId="schedule-8-paragraph-1-3-b-ii"><num>(ii)</num><content><p>by virtue of any claim made, in respect of a deficit for a subsequent period, under section 83(2)(c) of this Act.</p></content></level></level></subparagraph><subparagraph eId="schedule-8-paragraph-1-4"><num>(4)</num><content><p>Relief shall not be given by virtue of a claim under section 83(2)(a) of this Act against any ring fence profits of the company within the meaning of Chapter V of Part XII of the Taxes Act 1988 (petroleum extraction activities).</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-8-crossheading-claim-to-treat-deficit-as-eligible-for-group-relief"><heading>Claim to treat deficit as eligible for group relief</heading><paragraph eId="schedule-8-paragraph-2" class="schProv1"><num>2</num><subparagraph eId="schedule-8-paragraph-2-1"><num>(1)</num><content><p>This paragraph applies where the company makes a claim under section 83(2)(b) of this Act for the whole or any part of the deficit to be treated as eligible for group relief.</p></content></subparagraph><subparagraph eId="schedule-8-paragraph-2-2"><num>(2)</num><intro><p>The amount to which the claim relates shall be treated as if, for the purposes of subsection (1) of section 403 of the Taxes Act 1988 (group relief for trades)—</p></intro><level class="para1" eId="schedule-8-paragraph-2-2-a"><num>(a)</num><content><p>it were a loss incurred in the deficit period by a company carrying on a trade; and</p></content></level><level class="para1" eId="schedule-8-paragraph-2-2-b"><num>(b)</num><content><p>the exclusions in subsection (2) of that section did not apply.</p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-8-crossheading-claim-to-carry-back-deficit-to-previous-accounting-periods"><heading>Claim to carry back deficit to previous accounting periods</heading><paragraph eId="schedule-8-paragraph-3" class="schProv1"><num>3</num><subparagraph eId="schedule-8-paragraph-3-1"><num>(1)</num><content><p>This paragraph applies where a claim is made under section 83(2)(c) of this Act for the whole or any part of the deficit to be carried back to be set off against profits for earlier accounting periods.</p></content></subparagraph><subparagraph eId="schedule-8-paragraph-3-2"><num>(2)</num><intro><p>The claim shall have effect only if it relates to an amount that is equal to whichever is smaller of the following amounts, that is to say—</p></intro><level class="para1" eId="schedule-8-paragraph-3-2-a"><num>(a)</num><intro><p>so much of that deficit as is neither—</p></intro><level class="para2" eId="schedule-8-paragraph-3-2-a-i"><num>(i)</num><content><p>an amount in relation to which a claim is made under subsection (2)(a) or (b) of section 83 of this Act, nor</p></content></level><level class="para2" eId="schedule-8-paragraph-3-2-a-ii"><num>(ii)</num><content><p>an amount excluded by virtue of subsection (4) of that section from the amounts in relation to which claims may be made under subsection (2) of that section;</p></content></level><wrapUp><p>and</p></wrapUp></level><level class="para1" eId="schedule-8-paragraph-3-2-b"><num>(b)</num><content><p>the total amount of the profits available for relief under this paragraph.</p></content></level></subparagraph><subparagraph eId="schedule-8-paragraph-3-3"><num>(3)</num><intro><p>Where the claim has effect, the amount to which the claim relates shall be set off against the profits available for relief under this paragraph—</p></intro><level class="para1" eId="schedule-8-paragraph-3-3-a"><num>(a)</num><content><p>by treating those profits as reduced accordingly; and</p></content></level><level class="para1" eId="schedule-8-paragraph-3-3-b"><num>(b)</num><content><p>to the extent that those profits are profits for more than one accounting period, by applying the relief to profits for a later period before setting off any remainder of the amount to which the claim relates against profits for an earlier period.</p></content></level></subparagraph><subparagraph eId="schedule-8-paragraph-3-4"><num>(4)</num><intro><p>Subject to sub-paragraph (5) below, the profits available for relief under this paragraph are the amounts which, for accounting periods ending within the permitted period, would be taken—</p></intro><level class="para1" eId="schedule-8-paragraph-3-4-a"><num>(a)</num><content><p>apart from any relief under this paragraph, and</p></content></level><level class="para1" eId="schedule-8-paragraph-3-4-b"><num>(b)</num><content><p>after the giving of every relief which under sub-paragraph (6) below falls to be given in priority to relief under this paragraph,</p></content></level><wrapUp><p>to be chargeable under Case III of Schedule D as profits and gains arising from the company’s loan relationships.</p></wrapUp></subparagraph><subparagraph eId="schedule-8-paragraph-3-5"><num>(5)</num><intro><p>Where any accounting period begins before the beginning of the permitted period but ends in the course of it—</p></intro><level class="para1" eId="schedule-8-paragraph-3-5-a"><num>(a)</num><content><p>any amount chargeable in respect of that accounting period under Case III of Schedule D as profits and gains of the company’s loan relationships shall be apportioned according to the proportions of the accounting period falling before and after the beginning of the permitted period; and</p></content></level><level class="para1" eId="schedule-8-paragraph-3-5-b"><num>(b)</num><content><p>the amount attributable, on that apportionment, to before the beginning of the permitted period shall not be available for relief under this paragraph.</p></content></level></subparagraph><subparagraph eId="schedule-8-paragraph-3-6"><num>(6)</num><intro><p>The reliefs which fall to be given in priority to relief under this paragraph in respect of any loss are—</p></intro><level class="para1" eId="schedule-8-paragraph-3-6-a"><num>(a)</num><content><p>any relief in respect of a loss or deficit incurred or treated as incurred in an accounting period before the deficit period;</p></content></level><level class="para1" eId="schedule-8-paragraph-3-6-b"><num>(b)</num><content><p>any relief under section 338 of the Taxes Act 1988 (charges on income) in respect of payments made wholly and exclusively for the purposes of a trade;</p></content></level><level class="para1" eId="schedule-8-paragraph-3-6-c"><num>(c)</num><intro><p>where the company is an investment company for the purposes of Part IV of that Act—</p></intro><level class="para2" eId="schedule-8-paragraph-3-6-c-i"><num>(i)</num><content><p>any allowance under section 28 of the <noteRef href="#m00219" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Capital Allowances Act 1990 (machinery and plant of investment companies);</p></content></level><level class="para2" eId="schedule-8-paragraph-3-6-c-ii"><num>(ii)</num><content><p>any deduction in respect of management expenses under section 75 of the Taxes Act 1988; and</p></content></level><level class="para2" eId="schedule-8-paragraph-3-6-c-iii"><num>(iii)</num><content><p>any relief under section 338 of the Taxes Act 1988 in respect of payments made wholly and exclusively for the purposes of its business;</p></content></level></level><level class="para1" eId="schedule-8-paragraph-3-6-d"><num>(d)</num><content><p>any relief under section 393A of the Taxes Act 1988 (trading losses set against profits of the same or any preceding accounting periods); and</p></content></level><level class="para1" eId="schedule-8-paragraph-3-6-e"><num>(e)</num><content><p>any relief in pursuance of a claim under section 83(2)(a) or (b) of this Act.</p></content></level></subparagraph><subparagraph eId="schedule-8-paragraph-3-7"><num>(7)</num><content><p>In this paragraph “the permitted period” means the period of three years immediately preceding the beginning of the deficit period so far as that three year period falls after 31st March 1996.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-8-crossheading-claim-to-carry-forward-deficit-to-next-accounting-period"><heading>Claim to carry forward deficit to next accounting period</heading><paragraph eId="schedule-8-paragraph-4" class="schProv1"><num>4</num><subparagraph eId="schedule-8-paragraph-4-1"><num>(1)</num><content><p>This paragraph applies where a claim is made under section 83(2)(d) of this Act for the whole or any part of the deficit to be carried forward and set against non-trading profits for the next accounting period.</p></content></subparagraph><subparagraph eId="schedule-8-paragraph-4-2"><num>(2)</num><content><p>The amount to which the claim relates shall be set off against the non-trading profits of the company for the accounting period immediately following the deficit period, and those profits shall be treated as reduced accordingly.</p></content></subparagraph><subparagraph eId="schedule-8-paragraph-4-3"><num>(3)</num><content><p>In this paragraph “non-trading profits”, in relation to a company, means so much of any profits of the company (of whatever description) as do not consist in trading income for the purposes of section 393A of the Taxes Act 1988 (setting-off of trading losses against profits of the same or an earlier period).</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-8-crossheading-construction-of-schedule"><heading>Construction of Schedule</heading><paragraph eId="schedule-8-paragraph-5" class="schProv1"><num>5</num><content><p>In this Schedule “the deficit” and “the deficit period” shall be construed by reference to section 83(1) of this Act.</p></content></paragraph></hcontainer></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="schedule-8-crossheading-claim-to-set-off-deficit-against-other-profits-for-the-deficit-period"><heading>Claim to set off deficit against other profits for the deficit period</heading><paragraph eId="schedule-8-paragraph-1" class="schProv1"><num>1</num><subparagraph eId="schedule-8-paragraph-1-1"><num>(1)</num><content><p>This paragraph applies where a claim is made under section 83(2)(a) of this Act for the whole or any part of the deficit to be set off against profits of any description for the deficit period.</p></content></subparagraph><subparagraph eId="schedule-8-paragraph-1-2"><num>(2)</num><intro><p>Subject to the following provisions of this paragraph—</p></intro><level class="para1" eId="schedule-8-paragraph-1-2-a"><num>(a)</num><content><p>the amount to which the claim relates shall be set off against the profits of the company for the deficit period that are identified in the claim; and</p></content></level><level class="para1" eId="schedule-8-paragraph-1-2-b"><num>(b)</num><content><p>those profits shall be treated as reduced accordingly.</p></content></level></subparagraph><subparagraph eId="schedule-8-paragraph-1-3"><num>(3)</num><intro><p>Any reduction by virtue of sub-paragraph (2) above shall be made—</p></intro><level class="para1" eId="schedule-8-paragraph-1-3-a"><num>(a)</num><content><p>after relief has been given for any loss incurred in a trade in an earlier accounting period; and</p></content></level><level class="para1" eId="schedule-8-paragraph-1-3-b"><num>(b)</num><intro><p>before any relief is given against profits for that period either—</p></intro><level class="para2" eId="schedule-8-paragraph-1-3-b-i"><num>(i)</num><content><p>under section 393A(1) of the Taxes Act 1988 (trading losses set against profits for the same or preceding accounting periods); or</p></content></level><level class="para2" eId="schedule-8-paragraph-1-3-b-ii"><num>(ii)</num><content><p>by virtue of any claim made, in respect of a deficit for a subsequent period, under section 83(2)(c) of this Act.</p></content></level></level></subparagraph><subparagraph eId="schedule-8-paragraph-1-4"><num>(4)</num><content><p>Relief shall not be given by virtue of a claim under section 83(2)(a) of this Act against any ring fence profits of the company within the meaning of Chapter V of Part XII of the Taxes Act 1988 (petroleum extraction activities).</p></content></subparagraph></paragraph></hcontainer>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-8-paragraph-1" class="schProv1"><num>1</num><subparagraph eId="schedule-8-paragraph-1-1"><num>(1)</num><content><p>This paragraph applies where a claim is made under section 83(2)(a) of this Act for the whole or any part of the deficit to be set off against profits of any description for the deficit period.</p></content></subparagraph><subparagraph eId="schedule-8-paragraph-1-2"><num>(2)</num><intro><p>Subject to the following provisions of this paragraph—</p></intro><level class="para1" eId="schedule-8-paragraph-1-2-a"><num>(a)</num><content><p>the amount to which the claim relates shall be set off against the profits of the company for the deficit period that are identified in the claim; and</p></content></level><level class="para1" eId="schedule-8-paragraph-1-2-b"><num>(b)</num><content><p>those profits shall be treated as reduced accordingly.</p></content></level></subparagraph><subparagraph eId="schedule-8-paragraph-1-3"><num>(3)</num><intro><p>Any reduction by virtue of sub-paragraph (2) above shall be made—</p></intro><level class="para1" eId="schedule-8-paragraph-1-3-a"><num>(a)</num><content><p>after relief has been given for any loss incurred in a trade in an earlier accounting period; and</p></content></level><level class="para1" eId="schedule-8-paragraph-1-3-b"><num>(b)</num><intro><p>before any relief is given against profits for that period either—</p></intro><level class="para2" eId="schedule-8-paragraph-1-3-b-i"><num>(i)</num><content><p>under section 393A(1) of the Taxes Act 1988 (trading losses set against profits for the same or preceding accounting periods); or</p></content></level><level class="para2" eId="schedule-8-paragraph-1-3-b-ii"><num>(ii)</num><content><p>by virtue of any claim made, in respect of a deficit for a subsequent period, under section 83(2)(c) of this Act.</p></content></level></level></subparagraph><subparagraph eId="schedule-8-paragraph-1-4"><num>(4)</num><content><p>Relief shall not be given by virtue of a claim under section 83(2)(a) of this Act against any ring fence profits of the company within the meaning of Chapter V of Part XII of the Taxes Act 1988 (petroleum extraction activities).</p></content></subparagraph></paragraph>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="schedule-8-crossheading-claim-to-treat-deficit-as-eligible-for-group-relief"><heading>Claim to treat deficit as eligible for group relief</heading><paragraph eId="schedule-8-paragraph-2" class="schProv1"><num>2</num><subparagraph eId="schedule-8-paragraph-2-1"><num>(1)</num><content><p>This paragraph applies where the company makes a claim under section 83(2)(b) of this Act for the whole or any part of the deficit to be treated as eligible for group relief.</p></content></subparagraph><subparagraph eId="schedule-8-paragraph-2-2"><num>(2)</num><intro><p>The amount to which the claim relates shall be treated as if, for the purposes of subsection (1) of section 403 of the Taxes Act 1988 (group relief for trades)—</p></intro><level class="para1" eId="schedule-8-paragraph-2-2-a"><num>(a)</num><content><p>it were a loss incurred in the deficit period by a company carrying on a trade; and</p></content></level><level class="para1" eId="schedule-8-paragraph-2-2-b"><num>(b)</num><content><p>the exclusions in subsection (2) of that section did not apply.</p></content></level></subparagraph></paragraph></hcontainer>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-8-paragraph-2" class="schProv1"><num>2</num><subparagraph eId="schedule-8-paragraph-2-1"><num>(1)</num><content><p>This paragraph applies where the company makes a claim under section 83(2)(b) of this Act for the whole or any part of the deficit to be treated as eligible for group relief.</p></content></subparagraph><subparagraph eId="schedule-8-paragraph-2-2"><num>(2)</num><intro><p>The amount to which the claim relates shall be treated as if, for the purposes of subsection (1) of section 403 of the Taxes Act 1988 (group relief for trades)—</p></intro><level class="para1" eId="schedule-8-paragraph-2-2-a"><num>(a)</num><content><p>it were a loss incurred in the deficit period by a company carrying on a trade; and</p></content></level><level class="para1" eId="schedule-8-paragraph-2-2-b"><num>(b)</num><content><p>the exclusions in subsection (2) of that section did not apply.</p></content></level></subparagraph></paragraph>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="schedule-8-crossheading-claim-to-carry-back-deficit-to-previous-accounting-periods"><heading>Claim to carry back deficit to previous accounting periods</heading><paragraph eId="schedule-8-paragraph-3" class="schProv1"><num>3</num><subparagraph eId="schedule-8-paragraph-3-1"><num>(1)</num><content><p>This paragraph applies where a claim is made under section 83(2)(c) of this Act for the whole or any part of the deficit to be carried back to be set off against profits for earlier accounting periods.</p></content></subparagraph><subparagraph eId="schedule-8-paragraph-3-2"><num>(2)</num><intro><p>The claim shall have effect only if it relates to an amount that is equal to whichever is smaller of the following amounts, that is to say—</p></intro><level class="para1" eId="schedule-8-paragraph-3-2-a"><num>(a)</num><intro><p>so much of that deficit as is neither—</p></intro><level class="para2" eId="schedule-8-paragraph-3-2-a-i"><num>(i)</num><content><p>an amount in relation to which a claim is made under subsection (2)(a) or (b) of section 83 of this Act, nor</p></content></level><level class="para2" eId="schedule-8-paragraph-3-2-a-ii"><num>(ii)</num><content><p>an amount excluded by virtue of subsection (4) of that section from the amounts in relation to which claims may be made under subsection (2) of that section;</p></content></level><wrapUp><p>and</p></wrapUp></level><level class="para1" eId="schedule-8-paragraph-3-2-b"><num>(b)</num><content><p>the total amount of the profits available for relief under this paragraph.</p></content></level></subparagraph><subparagraph eId="schedule-8-paragraph-3-3"><num>(3)</num><intro><p>Where the claim has effect, the amount to which the claim relates shall be set off against the profits available for relief under this paragraph—</p></intro><level class="para1" eId="schedule-8-paragraph-3-3-a"><num>(a)</num><content><p>by treating those profits as reduced accordingly; and</p></content></level><level class="para1" eId="schedule-8-paragraph-3-3-b"><num>(b)</num><content><p>to the extent that those profits are profits for more than one accounting period, by applying the relief to profits for a later period before setting off any remainder of the amount to which the claim relates against profits for an earlier period.</p></content></level></subparagraph><subparagraph eId="schedule-8-paragraph-3-4"><num>(4)</num><intro><p>Subject to sub-paragraph (5) below, the profits available for relief under this paragraph are the amounts which, for accounting periods ending within the permitted period, would be taken—</p></intro><level class="para1" eId="schedule-8-paragraph-3-4-a"><num>(a)</num><content><p>apart from any relief under this paragraph, and</p></content></level><level class="para1" eId="schedule-8-paragraph-3-4-b"><num>(b)</num><content><p>after the giving of every relief which under sub-paragraph (6) below falls to be given in priority to relief under this paragraph,</p></content></level><wrapUp><p>to be chargeable under Case III of Schedule D as profits and gains arising from the company’s loan relationships.</p></wrapUp></subparagraph><subparagraph eId="schedule-8-paragraph-3-5"><num>(5)</num><intro><p>Where any accounting period begins before the beginning of the permitted period but ends in the course of it—</p></intro><level class="para1" eId="schedule-8-paragraph-3-5-a"><num>(a)</num><content><p>any amount chargeable in respect of that accounting period under Case III of Schedule D as profits and gains of the company’s loan relationships shall be apportioned according to the proportions of the accounting period falling before and after the beginning of the permitted period; and</p></content></level><level class="para1" eId="schedule-8-paragraph-3-5-b"><num>(b)</num><content><p>the amount attributable, on that apportionment, to before the beginning of the permitted period shall not be available for relief under this paragraph.</p></content></level></subparagraph><subparagraph eId="schedule-8-paragraph-3-6"><num>(6)</num><intro><p>The reliefs which fall to be given in priority to relief under this paragraph in respect of any loss are—</p></intro><level class="para1" eId="schedule-8-paragraph-3-6-a"><num>(a)</num><content><p>any relief in respect of a loss or deficit incurred or treated as incurred in an accounting period before the deficit period;</p></content></level><level class="para1" eId="schedule-8-paragraph-3-6-b"><num>(b)</num><content><p>any relief under section 338 of the Taxes Act 1988 (charges on income) in respect of payments made wholly and exclusively for the purposes of a trade;</p></content></level><level class="para1" eId="schedule-8-paragraph-3-6-c"><num>(c)</num><intro><p>where the company is an investment company for the purposes of Part IV of that Act—</p></intro><level class="para2" eId="schedule-8-paragraph-3-6-c-i"><num>(i)</num><content><p>any allowance under section 28 of the <noteRef href="#m00219" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Capital Allowances Act 1990 (machinery and plant of investment companies);</p></content></level><level class="para2" eId="schedule-8-paragraph-3-6-c-ii"><num>(ii)</num><content><p>any deduction in respect of management expenses under section 75 of the Taxes Act 1988; and</p></content></level><level class="para2" eId="schedule-8-paragraph-3-6-c-iii"><num>(iii)</num><content><p>any relief under section 338 of the Taxes Act 1988 in respect of payments made wholly and exclusively for the purposes of its business;</p></content></level></level><level class="para1" eId="schedule-8-paragraph-3-6-d"><num>(d)</num><content><p>any relief under section 393A of the Taxes Act 1988 (trading losses set against profits of the same or any preceding accounting periods); and</p></content></level><level class="para1" eId="schedule-8-paragraph-3-6-e"><num>(e)</num><content><p>any relief in pursuance of a claim under section 83(2)(a) or (b) of this Act.</p></content></level></subparagraph><subparagraph eId="schedule-8-paragraph-3-7"><num>(7)</num><content><p>In this paragraph “the permitted period” means the period of three years immediately preceding the beginning of the deficit period so far as that three year period falls after 31st March 1996.</p></content></subparagraph></paragraph></hcontainer>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-8-paragraph-3" class="schProv1"><num>3</num><subparagraph eId="schedule-8-paragraph-3-1"><num>(1)</num><content><p>This paragraph applies where a claim is made under section 83(2)(c) of this Act for the whole or any part of the deficit to be carried back to be set off against profits for earlier accounting periods.</p></content></subparagraph><subparagraph eId="schedule-8-paragraph-3-2"><num>(2)</num><intro><p>The claim shall have effect only if it relates to an amount that is equal to whichever is smaller of the following amounts, that is to say—</p></intro><level class="para1" eId="schedule-8-paragraph-3-2-a"><num>(a)</num><intro><p>so much of that deficit as is neither—</p></intro><level class="para2" eId="schedule-8-paragraph-3-2-a-i"><num>(i)</num><content><p>an amount in relation to which a claim is made under subsection (2)(a) or (b) of section 83 of this Act, nor</p></content></level><level class="para2" eId="schedule-8-paragraph-3-2-a-ii"><num>(ii)</num><content><p>an amount excluded by virtue of subsection (4) of that section from the amounts in relation to which claims may be made under subsection (2) of that section;</p></content></level><wrapUp><p>and</p></wrapUp></level><level class="para1" eId="schedule-8-paragraph-3-2-b"><num>(b)</num><content><p>the total amount of the profits available for relief under this paragraph.</p></content></level></subparagraph><subparagraph eId="schedule-8-paragraph-3-3"><num>(3)</num><intro><p>Where the claim has effect, the amount to which the claim relates shall be set off against the profits available for relief under this paragraph—</p></intro><level class="para1" eId="schedule-8-paragraph-3-3-a"><num>(a)</num><content><p>by treating those profits as reduced accordingly; and</p></content></level><level class="para1" eId="schedule-8-paragraph-3-3-b"><num>(b)</num><content><p>to the extent that those profits are profits for more than one accounting period, by applying the relief to profits for a later period before setting off any remainder of the amount to which the claim relates against profits for an earlier period.</p></content></level></subparagraph><subparagraph eId="schedule-8-paragraph-3-4"><num>(4)</num><intro><p>Subject to sub-paragraph (5) below, the profits available for relief under this paragraph are the amounts which, for accounting periods ending within the permitted period, would be taken—</p></intro><level class="para1" eId="schedule-8-paragraph-3-4-a"><num>(a)</num><content><p>apart from any relief under this paragraph, and</p></content></level><level class="para1" eId="schedule-8-paragraph-3-4-b"><num>(b)</num><content><p>after the giving of every relief which under sub-paragraph (6) below falls to be given in priority to relief under this paragraph,</p></content></level><wrapUp><p>to be chargeable under Case III of Schedule D as profits and gains arising from the company’s loan relationships.</p></wrapUp></subparagraph><subparagraph eId="schedule-8-paragraph-3-5"><num>(5)</num><intro><p>Where any accounting period begins before the beginning of the permitted period but ends in the course of it—</p></intro><level class="para1" eId="schedule-8-paragraph-3-5-a"><num>(a)</num><content><p>any amount chargeable in respect of that accounting period under Case III of Schedule D as profits and gains of the company’s loan relationships shall be apportioned according to the proportions of the accounting period falling before and after the beginning of the permitted period; and</p></content></level><level class="para1" eId="schedule-8-paragraph-3-5-b"><num>(b)</num><content><p>the amount attributable, on that apportionment, to before the beginning of the permitted period shall not be available for relief under this paragraph.</p></content></level></subparagraph><subparagraph eId="schedule-8-paragraph-3-6"><num>(6)</num><intro><p>The reliefs which fall to be given in priority to relief under this paragraph in respect of any loss are—</p></intro><level class="para1" eId="schedule-8-paragraph-3-6-a"><num>(a)</num><content><p>any relief in respect of a loss or deficit incurred or treated as incurred in an accounting period before the deficit period;</p></content></level><level class="para1" eId="schedule-8-paragraph-3-6-b"><num>(b)</num><content><p>any relief under section 338 of the Taxes Act 1988 (charges on income) in respect of payments made wholly and exclusively for the purposes of a trade;</p></content></level><level class="para1" eId="schedule-8-paragraph-3-6-c"><num>(c)</num><intro><p>where the company is an investment company for the purposes of Part IV of that Act—</p></intro><level class="para2" eId="schedule-8-paragraph-3-6-c-i"><num>(i)</num><content><p>any allowance under section 28 of the <noteRef href="#m00219" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Capital Allowances Act 1990 (machinery and plant of investment companies);</p></content></level><level class="para2" eId="schedule-8-paragraph-3-6-c-ii"><num>(ii)</num><content><p>any deduction in respect of management expenses under section 75 of the Taxes Act 1988; and</p></content></level><level class="para2" eId="schedule-8-paragraph-3-6-c-iii"><num>(iii)</num><content><p>any relief under section 338 of the Taxes Act 1988 in respect of payments made wholly and exclusively for the purposes of its business;</p></content></level></level><level class="para1" eId="schedule-8-paragraph-3-6-d"><num>(d)</num><content><p>any relief under section 393A of the Taxes Act 1988 (trading losses set against profits of the same or any preceding accounting periods); and</p></content></level><level class="para1" eId="schedule-8-paragraph-3-6-e"><num>(e)</num><content><p>any relief in pursuance of a claim under section 83(2)(a) or (b) of this Act.</p></content></level></subparagraph><subparagraph eId="schedule-8-paragraph-3-7"><num>(7)</num><content><p>In this paragraph “the permitted period” means the period of three years immediately preceding the beginning of the deficit period so far as that three year period falls after 31st March 1996.</p></content></subparagraph></paragraph>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="schedule-8-crossheading-claim-to-carry-forward-deficit-to-next-accounting-period"><heading>Claim to carry forward deficit to next accounting period</heading><paragraph eId="schedule-8-paragraph-4" class="schProv1"><num>4</num><subparagraph eId="schedule-8-paragraph-4-1"><num>(1)</num><content><p>This paragraph applies where a claim is made under section 83(2)(d) of this Act for the whole or any part of the deficit to be carried forward and set against non-trading profits for the next accounting period.</p></content></subparagraph><subparagraph eId="schedule-8-paragraph-4-2"><num>(2)</num><content><p>The amount to which the claim relates shall be set off against the non-trading profits of the company for the accounting period immediately following the deficit period, and those profits shall be treated as reduced accordingly.</p></content></subparagraph><subparagraph eId="schedule-8-paragraph-4-3"><num>(3)</num><content><p>In this paragraph “non-trading profits”, in relation to a company, means so much of any profits of the company (of whatever description) as do not consist in trading income for the purposes of section 393A of the Taxes Act 1988 (setting-off of trading losses against profits of the same or an earlier period).</p></content></subparagraph></paragraph></hcontainer>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-8-paragraph-4" class="schProv1"><num>4</num><subparagraph eId="schedule-8-paragraph-4-1"><num>(1)</num><content><p>This paragraph applies where a claim is made under section 83(2)(d) of this Act for the whole or any part of the deficit to be carried forward and set against non-trading profits for the next accounting period.</p></content></subparagraph><subparagraph eId="schedule-8-paragraph-4-2"><num>(2)</num><content><p>The amount to which the claim relates shall be set off against the non-trading profits of the company for the accounting period immediately following the deficit period, and those profits shall be treated as reduced accordingly.</p></content></subparagraph><subparagraph eId="schedule-8-paragraph-4-3"><num>(3)</num><content><p>In this paragraph “non-trading profits”, in relation to a company, means so much of any profits of the company (of whatever description) as do not consist in trading income for the purposes of section 393A of the Taxes Act 1988 (setting-off of trading losses against profits of the same or an earlier period).</p></content></subparagraph></paragraph>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="schedule-8-crossheading-construction-of-schedule"><heading>Construction of Schedule</heading><paragraph eId="schedule-8-paragraph-5" class="schProv1"><num>5</num><content><p>In this Schedule “the deficit” and “the deficit period” shall be construed by reference to section 83(1) of this Act.</p></content></paragraph></hcontainer>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-8-paragraph-5" class="schProv1"><num>5</num><content><p>In this Schedule “the deficit” and “the deficit period” shall be construed by reference to section 83(1) of this Act.</p></content></paragraph>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="schedule" eId="schedule-9"><num>SCHEDULE 9<authorialNote class="referenceNote"><p>Section 84.</p></authorialNote></num><heading>Loan relationships: special computational provisions</heading><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-9-crossheading-distributions"><heading>Distributions</heading><paragraph eId="schedule-9-paragraph-1" class="schProv1"><num>1</num><content><p>The credits and debits to be brought into account for the purposes of this Chapter shall not include any credits or debits relating to any amount falling, when paid, to be treated as a distribution.</p></content></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-9-crossheading-late-interest"><heading>Late interest</heading><paragraph eId="schedule-9-paragraph-2" class="schProv1"><num>2</num><subparagraph eId="schedule-9-paragraph-2-1"><num>(1)</num><content><p>This paragraph applies for the purpose of bringing debits into account for the purposes of this Chapter in respect of a debtor relationship of a company where an authorised accruals basis of accounting is used as respects that relationship in pursuance of section 87 of this Act.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-2-2"><num>(2)</num><intro><p>If—</p></intro><level class="para1" eId="schedule-9-paragraph-2-2-a"><num>(a)</num><content><p>interest payable under that relationship is not paid within the period of twelve months following the end of the accounting period in which it would (apart from this paragraph) be treated as accruing, and</p></content></level><level class="para1" eId="schedule-9-paragraph-2-2-b"><num>(b)</num><content><p>credits representing the full amount of the interest are not for any accounting period brought into account for the purposes of this Chapter in respect of the corresponding creditor relationship,</p></content></level><wrapUp><p>then debits relating to that interest shall be brought into account on the assumption that the interest does not accrue until it is paid.</p></wrapUp></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-9-crossheading-options-etc"><heading>Options etc.</heading><paragraph eId="schedule-9-paragraph-3" class="schProv1"><num>3</num><subparagraph eId="schedule-9-paragraph-3-1"><num>(1)</num><intro><p>This paragraph applies for determining the credits and debits to be brought into account for any accounting period in accordance with an authorised accruals basis of accounting, where—</p></intro><level class="para1" eId="schedule-9-paragraph-3-1-a"><num>(a)</num><content><p>the answer to the question whether any amount will become due under a loan relationship after the end of that period,</p></content></level><level class="para1" eId="schedule-9-paragraph-3-1-b"><num>(b)</num><content><p>the amount which will become due under a loan relationship after the end of that period, or</p></content></level><level class="para1" eId="schedule-9-paragraph-3-1-c"><num>(c)</num><content><p>the time after the end of that period when an amount will become due under a loan relationship,</p></content></level><wrapUp><p>depends on the exercise of an option by a party to the relationship or an associate of his, or is otherwise under the control of such a party or an associate of his.</p></wrapUp></subparagraph><subparagraph eId="schedule-9-paragraph-3-2"><num>(2)</num><content><p>It shall be assumed that the party or his associate will exercise his power to determine whether and on what date any amount will become due in the manner which (apart from taxation) appears, as at the end of the accounting period in question, to be the most advantageous to that party.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-3-3"><num>(3)</num><content><p>In this paragraph “associate” has the meaning given for the purposes of Part XI of the Taxes Act 1988 by section 417(3) and (4) of that Act.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-9-crossheading-foreign-exchange-gains-and-losses"><heading>Foreign exchange gains and losses</heading><paragraph eId="schedule-9-paragraph-4" class="schProv1"><num>4</num><subparagraph eId="schedule-9-paragraph-4-1"><num>(1)</num><content><p>The credits and debits to be brought into account for the purposes of this Chapter shall be computed disregarding so much of any authorised accounting method as, by requiring the translation or conversion of amounts from one currency into another, has the effect that credits and debits produced by that method include sums in which profits, gains or losses arising from fluctuations in the value of a currency are to any extent represented.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-4-2"><num>(2)</num><content><p>This paragraph is without prejudice to the provisions of Chapter II of Part II of the <noteRef href="#m00220" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1993 (exchange gains and losses).</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-9-crossheading-bad-debt-etc"><heading>Bad debt etc.</heading><paragraph eId="schedule-9-paragraph-5" class="schProv1"><num>5</num><subparagraph eId="schedule-9-paragraph-5-1"><num>(1)</num><intro><p>In determining the credits and debits to be brought into account in accordance with an accruals basis of accounting, a departure from the assumption in the case of the creditor relationships of a company that every amount payable under those relationships will be paid in full as it becomes due shall be allowed (subject to paragraph 6 below) to the extent only that—</p></intro><level class="para1" eId="schedule-9-paragraph-5-1-a"><num>(a)</num><content><p>a debt is a bad debt;</p></content></level><level class="para1" eId="schedule-9-paragraph-5-1-b"><num>(b)</num><content><p>a doubtful debt is estimated to be bad; or</p></content></level><level class="para1" eId="schedule-9-paragraph-5-1-c"><num>(c)</num><content><p>a liability to pay any amount is released.</p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-5-2"><num>(2)</num><content><p>Such a departure shall be made only where the accounting arrangements allowing the departure also require appropriate adjustments, in the form of credits, to be made if the whole or any part of an amount taken or estimated to represent an amount of bad debt is paid or otherwise ceases to be an amount in respect of which such a departure is allowed.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-5-3"><num>(3)</num><intro><p>Where—</p></intro><level class="para1" eId="schedule-9-paragraph-5-3-a"><num>(a)</num><content><p>a liability to pay any amount under a debtor relationship of a company is released, and</p></content></level><level class="para1" eId="schedule-9-paragraph-5-3-b"><num>(b)</num><content><p>the release takes place in an accounting period for which an authorised accruals basis of accounting is used as respects that relationship,</p></content></level><wrapUp><p>no credit in respect of the release shall be required to be brought into account in the case of that company if the release is part of a relevant arrangement or compromise (within the meaning given by section 74(2) of the Taxes Act 1988) or the relationship is one as respects which section 87 of this Act requires the use of an authorised accruals basis of accounting.</p></wrapUp></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-9-crossheading-bad-debt-etc-where-parties-have-a-connection"><heading>Bad debt etc. where parties have a connection</heading><paragraph eId="schedule-9-paragraph-6" class="schProv1"><num>6</num><subparagraph eId="schedule-9-paragraph-6-1"><num>(1)</num><content><p>This paragraph applies where for any accounting period section 87 of this Act requires an authorised accruals basis of accounting to be used as respects a creditor relationship of a company.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-6-2"><num>(2)</num><content><p>The credits and debits which for that period are to be brought into account for the purposes of this Chapter in accordance with that accounting method shall be computed subject to sub-paragraphs (3) to (6) below.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-6-3"><num>(3)</num><content><p>The assumption that every amount payable under the relationship will be paid in full shall be applied as if no departure from that assumption were authorised by virtue of paragraph 5 above except where it is allowed by sub-paragraph (4) below.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-6-4"><num>(4)</num><intro><p>A departure from that assumption shall be allowed in relation to a liability to pay any amount to the company (“the creditor company”) under the creditor relationship where—</p></intro><level class="para1" eId="schedule-9-paragraph-6-4-a"><num>(a)</num><content><p>in consideration of, or of any entitlement to, any shares forming part of the ordinary share capital of the company on whom the liability would otherwise have fallen, the creditor company treats the liability as discharged; and</p></content></level><level class="para1" eId="schedule-9-paragraph-6-4-b"><num>(b)</num><content><p>the condition specified in sub-paragraph (5) below is satisfied.</p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-6-5"><num>(5)</num><content><p>That condition is that there would be no connection between the two companies for the accounting period in which that consideration is given if the question whether there is such a connection for that period fell to be determined, in accordance with section 87 of this Act, by reference only to times before the creditor company acquired possession of, or any entitlement to, the shares in question.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-6-6"><num>(6)</num><intro><p>Where the company ceases in the accounting period in question to be a party to the relationship—</p></intro><level class="para1" eId="schedule-9-paragraph-6-6-a"><num>(a)</num><content><p>the debits brought into account for that period in respect of that relationship shall not (subject to sub-paragraph (7) below) be more than they would have been had the company not ceased to be a party to the relationship; and</p></content></level><level class="para1" eId="schedule-9-paragraph-6-6-b"><num>(b)</num><content><p>the credits brought into account for that period in respect of the relationship shall not (subject to that sub-paragraph) be less than they would have been in those circumstances.</p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-6-7"><num>(7)</num><content><p>In determining for the purposes of sub-paragraph (6) above the debits and credits that would have been brought into account if a company had not ceased to be a party to a loan relationship, no account shall be taken of any amounts that would have accrued at times after it ceased to be a party to the relationship.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-9-crossheading-writingoff-of-government-investments"><heading>Writing-off of government investments</heading><paragraph eId="schedule-9-paragraph-7" class="schProv1"><num>7</num><subparagraph eId="schedule-9-paragraph-7-1"><num>(1)</num><content><p>Where any government investment in a company is written off by the release of a liability to pay any amount under a debtor relationship of the company, no credit shall be required, in the case of that company, to be brought into account for the purposes of this Chapter in respect of that release.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-7-2"><num>(2)</num><content><p>Subsections (7) and (8) of section 400 of the Taxes Act 1988 shall apply, as they apply for the purposes of that section, for construing the reference in sub-paragraph (1) above to the writing-off of a government investment.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-9-crossheading-restriction-on-writing-off-overseas-sovereign-debt-etc"><heading>Restriction on writing off overseas sovereign debt etc.</heading><paragraph eId="schedule-9-paragraph-8" class="schProv1"><num>8</num><subparagraph eId="schedule-9-paragraph-8-1"><num>(1)</num><content><p>This paragraph applies for the purposes of the use, as respects any loan relationship of a company and in conformity with paragraph 5 above, of an authorised accruals basis of accounting.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-8-2"><num>(2)</num><content><p>Where the company is one to which a relevant overseas debt is owed, the debits and credits to be brought into account on that basis for the purposes of this Chapter shall be determined, for any accounting period of the company, on the assumption that it is not permissible for more than the relevant percentage of the debt to be estimated to be bad.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-8-3"><num>(3)</num><content><p>For the purposes of this paragraph the relevant percentage of a debt for any accounting period of a company is (subject to sub-paragraph (4) below) such percentage (which may be zero) as may be determined, by reference to the position at the end of the relevant period of account, in accordance with regulations made by the Treasury.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-8-4"><num>(4)</num><content><p>Where, apart from this sub-paragraph, the relevant percentage of a debt for any accounting period is more than the adjusted base percentage of that debt for that period, the relevant percentage of the debt for that period shall be taken to be equal to its adjusted base percentage for that period.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-8-5"><num>(5)</num><intro><p>For the purposes of this paragraph the adjusted base percentage of a debt for any accounting period shall be calculated by—</p></intro><level class="para1" eId="schedule-9-paragraph-8-5-a"><num>(a)</num><content><p>taking the percentage which, in accordance with section 88B of the Taxes Act 1988 and any regulations made under that section, was or (assuming the debt to have been a debt of the company at the end of the base period) would have been the base percentage for that debt; and</p></content></level><level class="para1" eId="schedule-9-paragraph-8-5-b"><num>(b)</num><intro><p>increasing that base percentage by five percentage points for every complete year (except the first) between—</p></intro><level class="para2" eId="schedule-9-paragraph-8-5-b-i"><num>(i)</num><content><p>the time by reference to which the base percentage was, or would have been, determined, and</p></content></level><level class="para2" eId="schedule-9-paragraph-8-5-b-ii"><num>(ii)</num><content><p>the end of the relevant period of account.</p></content></level></level></subparagraph><subparagraph eId="schedule-9-paragraph-8-6"><num>(6)</num><content><p>In this paragraph “the relevant period of account”, in relation to any accounting period of a company, means the period of account ending with that accounting period or, if a period of account does not end with that accounting period, the last period of account of the company to end before the end of that accounting period.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-8-7"><num>(7)</num><intro><p>In this paragraph “relevant overseas debt” means any debt which—</p></intro><level class="para1" eId="schedule-9-paragraph-8-7-a"><num>(a)</num><content><p>satisfies one of the conditions specified in sub-paragraph (8) below; but</p></content></level><level class="para1" eId="schedule-9-paragraph-8-7-b"><num>(b)</num><content><p>is neither interest on a debt nor a debt which represents the consideration for the provision of goods or services.</p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-8-8"><num>(8)</num><intro><p>Those conditions are—</p></intro><level class="para1" eId="schedule-9-paragraph-8-8-a"><num>(a)</num><content><p>that the debt is owed by an overseas State authority; or</p></content></level><level class="para1" eId="schedule-9-paragraph-8-8-b"><num>(b)</num><content><p>that payment of the debt is guaranteed by an overseas State authority; or</p></content></level><level class="para1" eId="schedule-9-paragraph-8-8-c"><num>(c)</num><intro><p>that the debt is estimated to be bad for the purposes of this Chapter wholly or mainly because due payment is or may be prevented, restricted or subjected to conditions—</p></intro><level class="para2" eId="schedule-9-paragraph-8-8-c-i"><num>(i)</num><content><p>by virtue of any law of a State or other territory outside the United Kingdom or any act of an overseas State authority; or</p></content></level><level class="para2" eId="schedule-9-paragraph-8-8-c-ii"><num>(ii)</num><content><p>under any agreement entered into in consequence or anticipation of such a law or act.</p></content></level></level></subparagraph><subparagraph eId="schedule-9-paragraph-8-9"><num>(9)</num><intro><p>In this paragraph “overseas State authority” means—</p></intro><level class="para1" eId="schedule-9-paragraph-8-9-a"><num>(a)</num><content><p>a State or other territory outside the United Kingdom;</p></content></level><level class="para1" eId="schedule-9-paragraph-8-9-b"><num>(b)</num><content><p>the government of such a State or territory;</p></content></level><level class="para1" eId="schedule-9-paragraph-8-9-c"><num>(c)</num><content><p>the central bank or other monetary authority of such a State or territory;</p></content></level><level class="para1" eId="schedule-9-paragraph-8-9-d"><num>(d)</num><content><p>a public or local authority in such a State or territory; or</p></content></level><level class="para1" eId="schedule-9-paragraph-8-9-e"><num>(e)</num><content><p>a body controlled by such a State, territory, government, bank or authority;</p></content></level><wrapUp><p>and for this purpose “controlled” shall be construed in accordance with section 840 of the Taxes Act 1988.</p></wrapUp></subparagraph><subparagraph eId="schedule-9-paragraph-8-10"><num>(10)</num><content><p>The Treasury shall not make any regulations under this paragraph unless a draft of them has been laid before and approved by a resolution of the House of Commons.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-9-crossheading-further-restriction-on-bringing-into-account-losses-on-overseas-sovereign-debt-etc"><heading>Further restriction on bringing into account losses on overseas sovereign debt etc.</heading><paragraph eId="schedule-9-paragraph-9" class="schProv1"><num>9</num><subparagraph eId="schedule-9-paragraph-9-1"><num>(1)</num><intro><p>This paragraph applies where—</p></intro><level class="para1" eId="schedule-9-paragraph-9-1-a"><num>(a)</num><content><p>for an accounting period in which a company ceases to be a party to a loan relationship (“the loss period”) any amount falls for the purposes of this Chapter to be brought into account in respect of that relationship in accordance with an authorised accruals basis of accounting;</p></content></level><level class="para1" eId="schedule-9-paragraph-9-1-b"><num>(b)</num><content><p>by the bringing into account of that amount in that period a loss incurred in connection with a relevant overseas debt falling within sub-paragraph (2) below is treated for the purposes of this Chapter as arising in that period;</p></content></level><level class="para1" eId="schedule-9-paragraph-9-1-c"><num>(c)</num><content><p>the amount of the loss is greater than 5 per cent. of the debt; and</p></content></level><level class="para1" eId="schedule-9-paragraph-9-1-d"><num>(d)</num><content><p>the loss is not one incurred on a disposal of the debt to an overseas State authority in a case in which the State or territory by reference to which it is an overseas State authority is the same as that by reference to which the debt is a relevant overseas debt.</p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-9-2"><num>(2)</num><intro><p>A relevant overseas debt falls within this sub-paragraph if—</p></intro><level class="para1" eId="schedule-9-paragraph-9-2-a"><num>(a)</num><content><p>a deduction has been made in respect of the debt in accordance with section 74(1)(j) of the Taxes Act 1988 for any period of account of the company ending before 1st April 1996;</p></content></level><level class="para1" eId="schedule-9-paragraph-9-2-b"><num>(b)</num><content><p>any debit relating to the debt has been brought into account for the purposes of this Chapter in accordance with so much of any authorised accruals basis of accounting as relates to the matters mentioned in paragraph 5(1)(a) to (c) above; or</p></content></level><level class="para1" eId="schedule-9-paragraph-9-2-c"><num>(c)</num><content><p>the debt is one acquired by the company on or after 20th March 1990 for a consideration greater than the price which it might reasonably have been expected to fetch on a sale in the open market at the time of acquisition.</p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-9-3"><num>(3)</num><content><p>Where this paragraph applies, the amounts brought into account for the purposes of this Chapter in the loss period shall be such as to secure that only so much of the loss as does not exceed 5 per cent. of the debt is treated for the purposes of this Chapter as arising in the loss period; but sub-paragraph (4) below applies as respects further parts of that loss until the loss is exhausted.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-9-4"><num>(4)</num><content><p>A part of the loss may, in accordance with sub-paragraph (5) below, be brought into account for the purposes of this Chapter in the form of a debit for any accounting period after the loss period (“a subsequent period”).</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-9-5"><num>(5)</num><intro><p>The amount of the debit brought into account under sub-paragraph (4) above for any subsequent period shall not exceed such amount as, together with any parts of the loss which for earlier periods have been represented by—</p></intro><level class="para1" eId="schedule-9-paragraph-9-5-a"><num>(a)</num><content><p>the amount of the loss treated as arising in the loss period in accordance with sub-paragraph (3) above, or</p></content></level><level class="para1" eId="schedule-9-paragraph-9-5-b"><num>(b)</num><content><p>debits brought into account in accordance with this sub-paragraph,</p></content></level><wrapUp><p>is equal to 5 per cent. of the debt for each complete year that has elapsed between the beginning of the loss period and the end of the subsequent period.</p></wrapUp></subparagraph><subparagraph eId="schedule-9-paragraph-9-6"><num>(6)</num><content><p>In this paragraph “overseas State authority” and “relevant overseas debt” have the same meanings as in paragraph 8 above.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-9-7"><num>(7)</num><content><p>References in this paragraph to a loss do not include so much of any loss as falls to be disregarded for the purposes of this Chapter by virtue of paragraph 10 below or to any loss incurred before 1st April 1996.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-9-crossheading-imported-losses-etc"><heading>Imported losses etc.</heading><paragraph eId="schedule-9-paragraph-10" class="schProv1"><num>10</num><subparagraph eId="schedule-9-paragraph-10-1"><num>(1)</num><intro><p>This paragraph applies in the case of a company (“the chargeable company”) for an accounting period (“the loss period”) where—</p></intro><level class="para1" eId="schedule-9-paragraph-10-1-a"><num>(a)</num><content><p>an authorised accruals basis of accounting is used as respects a loan relationship of that company for the loss period;</p></content></level><level class="para1" eId="schedule-9-paragraph-10-1-b"><num>(b)</num><content><p>in accordance with that basis of accounting there is an amount which would fall (apart from this paragraph) to be brought into account for the purposes of this Chapter in respect of that relationship;</p></content></level><level class="para1" eId="schedule-9-paragraph-10-1-c"><num>(c)</num><content><p>by the bringing into account of that amount in that period a loss incurred in connection with that loan relationship would be treated for the purposes of this Chapter as arising in that period; and</p></content></level><level class="para1" eId="schedule-9-paragraph-10-1-d"><num>(d)</num><content><p>that loss is referable in whole or in part to a time when the relationship was not subject to United Kingdom taxation.</p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-10-2"><num>(2)</num><content><p>The amounts brought into account for the purposes of this Chapter in the loss period shall be such as to secure that no part of the loss that is referable to a time when the relationship was not subject to United Kingdom taxation shall be treated for the purposes of this Chapter as arising in the loss period or any other accounting period of the chargeable company.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-10-3"><num>(3)</num><content><p>For the purposes of this paragraph a loss is referable to a time when a relationship is not subject to United Kingdom taxation to the extent that, at the time to which the loss is referable, the chargeable company would not have been chargeable to tax in the United Kingdom on any profits or gains arising from the relationship.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-10-4"><num>(4)</num><content><p>Sub-paragraph (3) above shall have effect where the chargeable company was not a party to the relationship at the time to which the loss is referable as if the reference to that company were a reference to the person who at that time was in the same position as respects the relationship as is subsequently held by the chargeable company.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-9-crossheading-transactions-not-at-arms-length"><heading>Transactions not at arm’s length</heading><paragraph eId="schedule-9-paragraph-11" class="schProv1"><num>11</num><subparagraph eId="schedule-9-paragraph-11-1"><num>(1)</num><intro><p>Subject to sub-paragraphs (2) and (3) below, where—</p></intro><level class="para1" eId="schedule-9-paragraph-11-1-a"><num>(a)</num><content><p>debits or credits in respect of a loan relationship of a company fall to be brought into account for the purposes of this Chapter in accordance with an authorised accounting method,</p></content></level><level class="para1" eId="schedule-9-paragraph-11-1-b"><num>(b)</num><content><p>those debits or credits relate to amounts arising from, or incurred for the purposes of, a related transaction, and</p></content></level><level class="para1" eId="schedule-9-paragraph-11-1-c"><num>(c)</num><content><p>that transaction is not a transaction at arm’s length,</p></content></level><wrapUp><p>the debits or credits given by that method shall be determined on the assumption that the transaction was entered into on the terms on which it would have been entered into between independent persons.</p></wrapUp></subparagraph><subparagraph eId="schedule-9-paragraph-11-2"><num>(2)</num><content><p>Sub-paragraph (1) above shall not apply to debits arising from the acquisition of rights under a loan relationship where those rights are acquired for less than market value.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-11-3"><num>(3)</num><intro><p>Sub-paragraph (1) above does not apply—</p></intro><level class="para1" eId="schedule-9-paragraph-11-3-a"><num>(a)</num><content><p>in the case of any related transaction between two companies that are members of the same group; or</p></content></level><level class="para1" eId="schedule-9-paragraph-11-3-b"><num>(b)</num><content><p>in relation to a member of a group of companies, in the case of any transaction which is part of a series of transactions having the same effect as a related transaction between two members of the same group.</p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-11-4"><num>(4)</num><content><p>In this paragraph “related transaction” has the same meaning as in section 84 of this Act.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-11-5"><num>(5)</num><content><p>Section 170 of the <noteRef href="#m00221" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxation of Chargeable Gains Act 1992 (groups etc.) shall apply for the interpretation of this paragraph as it applies for the interpretation of sections 171 to 181 of that Act.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-9-crossheading-continuity-of-treatment-groups-etc"><heading>Continuity of treatment: groups etc.</heading><paragraph eId="schedule-9-paragraph-12" class="schProv1"><num>12</num><subparagraph eId="schedule-9-paragraph-12-1"><num>(1)</num><intro><p>Subject to paragraph 15 below, this paragraph applies where, as a result of—</p></intro><level class="para1" eId="schedule-9-paragraph-12-1-a"><num>(a)</num><content><p>a related transaction between two members of the same group of companies,</p></content></level><level class="para1" eId="schedule-9-paragraph-12-1-b"><num>(b)</num><content><p>a series of transactions having the same effect as a related transaction between two companies each of which has been a member of the same group at any time in the course of that series of transactions,</p></content></level><level class="para1" eId="schedule-9-paragraph-12-1-c"><num>(c)</num><content><p>the transfer between two companies of the whole or part of the long term business of any insurance company in accordance with a scheme sanctioned by a court under Part I of Schedule 2C to the <noteRef href="#m00222" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Insurance Companies Act 1982, or</p></content></level><level class="para1" eId="schedule-9-paragraph-12-1-d"><num>(d)</num><content><p>any transfer between two companies which is a qualifying overseas transfer within the meaning of paragraph 4A of Schedule 19AC to the Taxes Act 1988 (transfer of business of overseas life insurance company),</p></content></level><wrapUp><p>one of those companies (“the transferee company”) directly or indirectly replaces the other (“the transferor company”) as a party to a loan relationship.</p></wrapUp></subparagraph><subparagraph eId="schedule-9-paragraph-12-2"><num>(2)</num><intro><p>The credits and debits to be brought into account for the purposes of this Chapter in the case of the two companies shall be determined as follows—</p></intro><level class="para1" eId="schedule-9-paragraph-12-2-a"><num>(a)</num><content><p>the transaction, or series of transactions, by virtue of which the replacement takes place shall be disregarded except for the purpose of identifying the company in whose case any debit or credit not relating to that transaction, or those transactions, is to be brought into account; and</p></content></level><level class="para1" eId="schedule-9-paragraph-12-2-b"><num>(b)</num><content><p>the transferor company and the transferee company shall be deemed (except for that purpose) to be the same company.</p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-12-3"><num>(3)</num><content><p>This paragraph does not apply by virtue of sub-paragraph (1)(a) or (b) above in relation to any transfer of an asset, or of any rights under or interest in an asset, where the asset was within one of the categories set out in section 440(4)(a) to (e) of the Taxes Act 1988 (assets held for certain categories of long term business) either immediately before the transfer or immediately afterwards.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-12-4"><num>(4)</num><intro><p>This paragraph does not apply by virtue of sub-paragraph (1)(c) or (d) above in relation to any transfer of an asset, or of any rights under or interest in an asset, where—</p></intro><level class="para1" eId="schedule-9-paragraph-12-4-a"><num>(a)</num><content><p>the asset was within one of the categories set out in section 440(4) of the Taxes Act 1988 immediately before the transfer; and</p></content></level><level class="para1" eId="schedule-9-paragraph-12-4-b"><num>(b)</num><content><p>is not within that category immediately afterwards.</p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-12-5"><num>(5)</num><intro><p>For the purposes of sub-paragraph (4) above, where one of the companies is an overseas life insurance company an asset shall be taken to be within the same category both immediately before the transfer and immediately afterwards if it—</p></intro><level class="para1" eId="schedule-9-paragraph-12-5-a"><num>(a)</num><content><p>was within one category immediately before the transfer; and</p></content></level><level class="para1" eId="schedule-9-paragraph-12-5-b"><num>(b)</num><content><p>is within the corresponding category immediately afterwards.</p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-12-6"><num>(6)</num><content><p>References in this paragraph to one company replacing another as a party to a loan relationship shall include references to a company becoming a party to any loan relationship under which its rights are equivalent to those of the other company under a loan relationship of which that other company has previously ceased to be a party.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-12-7"><num>(7)</num><intro><p>For the purposes of sub-paragraph (6) above a person’s rights under a loan relationship are equivalent to rights under another such relationship if they entitle the holder of an asset representing the relationship—</p></intro><level class="para1" eId="schedule-9-paragraph-12-7-a"><num>(a)</num><content><p>to the same rights against the same persons as to capital, interest and dividends, and</p></content></level><level class="para1" eId="schedule-9-paragraph-12-7-b"><num>(b)</num><content><p>to the same remedies for the enforcement of those rights,</p></content></level><wrapUp><p>notwithstanding any difference in the total nominal amounts of the assets, in the form in which they are held or in the manner in which they can be transferred.</p></wrapUp></subparagraph><subparagraph eId="schedule-9-paragraph-12-8"><num>(8)</num><content><p>Sub-paragraphs (4) and (5) of paragraph 11 above have effect for the purposes of this paragraph as they have effect for the purposes of that paragraph.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-12-9"><num>(9)</num><content><p>In this paragraph “overseas life insurance company” has the same meaning as in Chapter I of Part XII of the Taxes Act 1988.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-9-crossheading-loan-relationships-for-unallowable-purposes"><heading>Loan relationships for unallowable purposes</heading><paragraph eId="schedule-9-paragraph-13" class="schProv1"><num>13</num><subparagraph eId="schedule-9-paragraph-13-1"><num>(1)</num><content><p>Where in any accounting period a loan relationship of a company has an unallowable purpose, the debits which, for that period fall, in the case of that company, to be brought into account for the purposes of this Chapter shall not include so much of the debits given by the authorised accounting method used as respects that relationship as, on a just and reasonable apportionment, is attributable to the unallowable purpose.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-13-2"><num>(2)</num><intro><p>For the purposes of this paragraph a loan relationship of a company shall be taken to have an unallowable purpose in an accounting period where the purposes for which, at times during that period, the company—</p></intro><level class="para1" eId="schedule-9-paragraph-13-2-a"><num>(a)</num><content><p>is a party to the relationship, or</p></content></level><level class="para1" eId="schedule-9-paragraph-13-2-b"><num>(b)</num><content><p>enters into transactions which are related transactions by reference to that relationship,</p></content></level><wrapUp><p>include a purpose (“the unallowable purpose”) which is not amongst the business or other commercial purposes of the company.</p></wrapUp></subparagraph><subparagraph eId="schedule-9-paragraph-13-3"><num>(3)</num><content><p>For the purposes of this paragraph the business and other commercial purposes of a company do not include the purposes of any part of its activities in respect of which it is not within the charge to corporation tax.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-13-4"><num>(4)</num><intro><p>For the purposes of this paragraph, where one of the purposes for which a company—</p></intro><level class="para1" eId="schedule-9-paragraph-13-4-a"><num>(a)</num><content><p>is a party to a loan relationship at any time, or</p></content></level><level class="para1" eId="schedule-9-paragraph-13-4-b"><num>(b)</num><content><p>enters into a transaction which is a related transaction by reference to any loan relationship of the company,</p></content></level><wrapUp><p>is a tax avoidance purpose, that purpose shall be taken to be a business or other commercial purpose of the company only where it is not the main purpose, or one of the main purposes, for which the company is a party to the relationship at that time or, as the case may be, for which the company enters into that transaction.</p></wrapUp></subparagraph><subparagraph eId="schedule-9-paragraph-13-5"><num>(5)</num><content><p>The reference in sub-paragraph (4) above to a tax avoidance purpose is a reference to any purpose that consists in securing a tax advantage (whether for the company or any other person).</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-13-6"><num>(6)</num><intro><p>In this paragraph—</p></intro><hcontainer name="definition"><content><p>“related transaction” has the same meaning as in section 84 of this Act; and</p></content></hcontainer><hcontainer name="definition"><content><p>“tax advantage” has the same meaning as in Chapter I of Part XVII of the Taxes Act 1988 (tax avoidance).</p></content></hcontainer></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-9-crossheading-debits-and-credits-treated-as-relating-to-capital-expenditure"><heading>Debits and credits treated as relating to capital expenditure</heading><paragraph eId="schedule-9-paragraph-14" class="schProv1"><num>14</num><subparagraph eId="schedule-9-paragraph-14-1"><num>(1)</num><content><p>This paragraph applies where any debit or credit given by an authorised accounting method for any accounting period in respect of a loan relationship of a company is allowed by normal accountancy practice to be treated, in the accounts of the company, as an amount brought into account in determining the value of a fixed capital asset or project.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-14-2"><num>(2)</num><content><p>Notwithstanding the application to it of the treatment allowed by normal accountancy practice, the debit or credit shall be brought into account for the purposes of corporation tax, for the accounting period for which it is given, in the same way as a debit or credit which, in accordance with normal accountancy practice, is brought into account in determining the company’s profit or loss for that period.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-9-crossheading-repo-transactions-and-stocklending"><heading>Repo transactions and stock-lending</heading><paragraph eId="schedule-9-paragraph-15" class="schProv1"><num>15</num><subparagraph eId="schedule-9-paragraph-15-1"><num>(1)</num><content><p>In determining the debits and credits to be brought into account for the purposes of this Chapter in respect of any loan relationship, it shall be assumed that a disposal or acquisition to which this paragraph applies is not a related transaction for the purposes of section 84 of this Act.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-15-2"><num>(2)</num><content><p>This paragraph applies to any such disposal or acquisition of rights or liabilities under the relationship as is made in pursuance of any repo or stock-lending arrangements.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-15-3"><num>(3)</num><intro><p>In this paragraph “repo or stock-lending arrangements” means any arrangements consisting in or involving an agreement or series of agreements under which provision is made—</p></intro><level class="para1" eId="schedule-9-paragraph-15-3-a"><num>(a)</num><content><p>for the transfer from one person to another of any rights under that relationship; and</p></content></level><level class="para1" eId="schedule-9-paragraph-15-3-b"><num>(b)</num><intro><p>for the transferor, or a person connected with him, subsequently to be or become entitled, or required—</p></intro><level class="para2" eId="schedule-9-paragraph-15-3-b-i"><num>(i)</num><content><p>to have the same or equivalent rights transferred to him; or</p></content></level><level class="para2" eId="schedule-9-paragraph-15-3-b-ii"><num>(ii)</num><content><p>to have rights in respect of benefits accruing in respect of that relationship on redemption.</p></content></level></level></subparagraph><subparagraph eId="schedule-9-paragraph-15-4"><num>(4)</num><intro><p>For the purposes of sub-paragraph (3) above rights under a loan relationship are equivalent to rights under another such relationship if they entitle the holder of an asset representing the relationship—</p></intro><level class="para1" eId="schedule-9-paragraph-15-4-a"><num>(a)</num><content><p>to the same rights against the same persons as to capital, interest and dividends, and</p></content></level><level class="para1" eId="schedule-9-paragraph-15-4-b"><num>(b)</num><content><p>to the same remedies for the enforcement of those rights,</p></content></level><wrapUp><p>notwithstanding any difference in the total nominal amounts of the assets, in the form in which they are held or in the manner in which they can be transferred.</p></wrapUp></subparagraph><subparagraph eId="schedule-9-paragraph-15-5"><num>(5)</num><content><p>Nothing in this paragraph shall prevent any redemption or discharge of rights or liabilities under a loan relationship to which any repo or stock-lending arrangements relate from being treated for the purposes of this Chapter as a related transaction (within the meaning of section 84 of this Act).</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-15-6"><num>(6)</num><content><p>This paragraph is without prejudice to section 730A(2) and (6) of the Taxes Act 1988 (deemed payments of loan interest in the case of the sale and re-purchase of securities).</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-15-7"><num>(7)</num><content><p>Section 839 of the Taxes Act 1988 (connected persons) applies for the purposes of this paragraph.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-9-crossheading-imputed-interest"><heading>Imputed interest</heading><paragraph eId="schedule-9-paragraph-16" class="schProv1"><num>16</num><subparagraph eId="schedule-9-paragraph-16-1"><num>(1)</num><content><p>This paragraph applies where, in pursuance of sections 770 to 772 of the Taxes Act 1988 (transactions at an undervalue or overvalue), as those sections have effect by virtue of section 773(4) of that Act, any amount falls to be treated as interest payable under a loan relationship of a company.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-16-2"><num>(2)</num><content><p>Those sections shall have effect, notwithstanding the provisions of any authorised accounting method, so as to require credits or debits relating to the deemed interest to be brought into account for the purposes of this Chapter to the same extent as they would be in the case of an actual amount of interest accruing or becoming due and payable under the loan relationship in question.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-9-crossheading-discounted-securities-where-companies-have-a-connection"><heading>Discounted securities where companies have a connection</heading><paragraph eId="schedule-9-paragraph-17" class="schProv1"><num>17</num><subparagraph eId="schedule-9-paragraph-17-1"><num>(1)</num><intro><p>This paragraph applies as respects any accounting period (“the relevant period”) where—</p></intro><level class="para1" eId="schedule-9-paragraph-17-1-a"><num>(a)</num><content><p>a debtor relationship of a company (“the issuing company”) is represented by a relevant discounted security issued by that company;</p></content></level><level class="para1" eId="schedule-9-paragraph-17-1-b"><num>(b)</num><content><p>the benefit of that security is available to another company at any time in that period;</p></content></level><level class="para1" eId="schedule-9-paragraph-17-1-c"><num>(c)</num><content><p>for that period there is a connection between the issuing company and the other company; and</p></content></level><level class="para1" eId="schedule-9-paragraph-17-1-d"><num>(d)</num><content><p>credits representing the full amount of the discount that is referable to that period are not for any accounting period brought into account for the purposes of this Chapter in respect of the corresponding creditor relationship.</p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-17-2"><num>(2)</num><content><p>The debits falling in the case of the issuing company to be brought into account for the purposes of this Chapter in respect of the loan relationship shall be adjusted so that every debit relating to the amount of the discount that is referable to the relevant period is brought into account for the accounting period in which the security is redeemed, instead of for the relevant period.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-17-3"><num>(3)</num><intro><p>References in this paragraph to the amount of the discount that is referable to the relevant period are references to the amount relating to the difference between—</p></intro><level class="para1" eId="schedule-9-paragraph-17-3-a"><num>(a)</num><content><p>the issue price of the security, and</p></content></level><level class="para1" eId="schedule-9-paragraph-17-3-b"><num>(b)</num><content><p>the amount payable on redemption,</p></content></level><wrapUp><p>which (apart from this paragraph) would for the relevant period be brought into account for the purposes of this Chapter in the case of the issuing company.</p></wrapUp></subparagraph><subparagraph eId="schedule-9-paragraph-17-4"><num>(4)</num><content><p>In this paragraph “relevant discounted security” has the same meaning as in Schedule 13 to this Act; and the provisions of that Schedule shall apply for the purposes of this paragraph for determining the difference between the issue price of a security and the amount payable on redemption as they apply for the purposes of paragraph 3(3) of that Schedule.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-17-5"><num>(5)</num><intro><p>For the purposes of this paragraph there is a connection between one company and another for the relevant period if (subject to the following provisions of this paragraph)—</p></intro><level class="para1" eId="schedule-9-paragraph-17-5-a"><num>(a)</num><content><p>there is a time in that period, or in the period of two years before the beginning of that period, when one of the companies has had control of the other; or</p></content></level><level class="para1" eId="schedule-9-paragraph-17-5-b"><num>(b)</num><content><p>there is a time in that period, or in those two years, when both the companies have been under the control of the same person.</p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-17-6"><num>(6)</num><content><p>Two companies which have at any time been under the control of the same person shall not, by virtue of that fact, be taken for the purposes of this paragraph to be companies between whom there is a connection if the person was the Crown, a Minister of the Crown, a government department, a Northern Ireland department, a foreign sovereign power or an international organisation.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-17-7"><num>(7)</num><intro><p>Section 88 of this Act shall apply for the purposes of this paragraph in the case of a debtor relationship of a company represented by a relevant discounted security as it would apply for the purposes of section 87 of this Act in the case of the corresponding creditor relationship of the company holding that security and, accordingly, as if—</p></intro><level class="para1" eId="schedule-9-paragraph-17-7-a"><num>(a)</num><content><p>the reference to section 87 of this Act in section 88(4)(b) were a reference to this paragraph; and</p></content></level><level class="para1" eId="schedule-9-paragraph-17-7-b"><num>(b)</num><content><p>section 88(5) were omitted.</p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-17-8"><num>(8)</num><intro><p>For the purposes of this paragraph the benefit of a security is available to a company if—</p></intro><level class="para1" eId="schedule-9-paragraph-17-8-a"><num>(a)</num><content><p>that security, or any entitlement to rights attached to it, is beneficially owned by that company; or</p></content></level><level class="para1" eId="schedule-9-paragraph-17-8-b"><num>(b)</num><content><p>that company is indirectly entitled, by reference to a series of loan transactions, to the benefit of any rights attached to the security.</p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-17-9"><num>(9)</num><content><p>Subsections (2) to (6) of section 416 of the Taxes Act 1988 (meaning of “control”) shall apply for the purposes of this paragraph as they apply for the purposes of Part XI of that Act.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-9-crossheading-discounted-securities-of-close-companies"><heading>Discounted securities of close companies</heading><paragraph eId="schedule-9-paragraph-18" class="schProv1"><num>18</num><subparagraph eId="schedule-9-paragraph-18-1"><num>(1)</num><intro><p>This paragraph applies for any accounting period where—</p></intro><level class="para1" eId="schedule-9-paragraph-18-1-a"><num>(a)</num><content><p>a debtor relationship of a close company is represented by a relevant discounted security issued by the company; and</p></content></level><level class="para1" eId="schedule-9-paragraph-18-1-b"><num>(b)</num><intro><p>at any time in or before that period that security has been beneficially owned by a person who at the time was—</p></intro><level class="para2" eId="schedule-9-paragraph-18-1-b-i"><num>(i)</num><content><p>a participator in the company;</p></content></level><level class="para2" eId="schedule-9-paragraph-18-1-b-ii"><num>(ii)</num><content><p>an associate of such a participator; or</p></content></level><level class="para2" eId="schedule-9-paragraph-18-1-b-iii"><num>(iii)</num><content><p>a company of which such a participator has control.</p></content></level></level></subparagraph><subparagraph eId="schedule-9-paragraph-18-2"><num>(2)</num><intro><p>The debits falling in the case of the company to be brought into account for the purposes of this Chapter in respect of the loan relationship shall be adjusted so that no amount is brought into account in respect of the difference between—</p></intro><level class="para1" eId="schedule-9-paragraph-18-2-a"><num>(a)</num><content><p>the issue price of the security, and</p></content></level><level class="para1" eId="schedule-9-paragraph-18-2-b"><num>(b)</num><content><p>the amount payable on redemption,</p></content></level><wrapUp><p>for any accounting period before that in which the security is redeemed.</p></wrapUp></subparagraph><subparagraph eId="schedule-9-paragraph-18-3"><num>(3)</num><content><p>In this paragraph “relevant discounted security” has the same meaning as in Schedule 13 to this Act; and the provisions of that Schedule shall apply for the purposes of this paragraph for determining the difference between the issue price of a security and the amount payable on redemption as they apply for the purposes of paragraph 3(3) of that Schedule.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-18-4"><num>(4)</num><intro><p>In this paragraph—</p></intro><hcontainer name="definition"><content><p>“associate” has the meaning given in section 417(3) and (4) of the Taxes Act 1988;</p></content></hcontainer><hcontainer name="definition"><content><p>“control” shall be construed in accordance with section 416(2) to (6) of that Act; and</p></content></hcontainer><hcontainer name="definition"><content><p>“participator” means a person who, by virtue of section 417 of that Act, is a participator in the company for the purposes of Part XI of that Act, other than a person who is a participator for those purposes by virtue only of his holding a relevant discounted security issued by the company.</p></content></hcontainer></subparagraph><subparagraph eId="schedule-9-paragraph-18-5"><num>(5)</num><content><p>In determining whether a person who carries on a business of banking is a participator in a company for the purposes of this paragraph, there shall be disregarded any securities of the company acquired by him in the ordinary course of his business.</p></content></subparagraph></paragraph></hcontainer></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="schedule-9-crossheading-distributions"><heading>Distributions</heading><paragraph eId="schedule-9-paragraph-1" class="schProv1"><num>1</num><content><p>The credits and debits to be brought into account for the purposes of this Chapter shall not include any credits or debits relating to any amount falling, when paid, to be treated as a distribution.</p></content></paragraph></hcontainer>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-9-paragraph-1" class="schProv1"><num>1</num><content><p>The credits and debits to be brought into account for the purposes of this Chapter shall not include any credits or debits relating to any amount falling, when paid, to be treated as a distribution.</p></content></paragraph>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="schedule-9-crossheading-late-interest"><heading>Late interest</heading><paragraph eId="schedule-9-paragraph-2" class="schProv1"><num>2</num><subparagraph eId="schedule-9-paragraph-2-1"><num>(1)</num><content><p>This paragraph applies for the purpose of bringing debits into account for the purposes of this Chapter in respect of a debtor relationship of a company where an authorised accruals basis of accounting is used as respects that relationship in pursuance of section 87 of this Act.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-2-2"><num>(2)</num><intro><p>If—</p></intro><level class="para1" eId="schedule-9-paragraph-2-2-a"><num>(a)</num><content><p>interest payable under that relationship is not paid within the period of twelve months following the end of the accounting period in which it would (apart from this paragraph) be treated as accruing, and</p></content></level><level class="para1" eId="schedule-9-paragraph-2-2-b"><num>(b)</num><content><p>credits representing the full amount of the interest are not for any accounting period brought into account for the purposes of this Chapter in respect of the corresponding creditor relationship,</p></content></level><wrapUp><p>then debits relating to that interest shall be brought into account on the assumption that the interest does not accrue until it is paid.</p></wrapUp></subparagraph></paragraph></hcontainer>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-9-paragraph-2" class="schProv1"><num>2</num><subparagraph eId="schedule-9-paragraph-2-1"><num>(1)</num><content><p>This paragraph applies for the purpose of bringing debits into account for the purposes of this Chapter in respect of a debtor relationship of a company where an authorised accruals basis of accounting is used as respects that relationship in pursuance of section 87 of this Act.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-2-2"><num>(2)</num><intro><p>If—</p></intro><level class="para1" eId="schedule-9-paragraph-2-2-a"><num>(a)</num><content><p>interest payable under that relationship is not paid within the period of twelve months following the end of the accounting period in which it would (apart from this paragraph) be treated as accruing, and</p></content></level><level class="para1" eId="schedule-9-paragraph-2-2-b"><num>(b)</num><content><p>credits representing the full amount of the interest are not for any accounting period brought into account for the purposes of this Chapter in respect of the corresponding creditor relationship,</p></content></level><wrapUp><p>then debits relating to that interest shall be brought into account on the assumption that the interest does not accrue until it is paid.</p></wrapUp></subparagraph></paragraph>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="schedule-9-crossheading-options-etc"><heading>Options etc.</heading><paragraph eId="schedule-9-paragraph-3" class="schProv1"><num>3</num><subparagraph eId="schedule-9-paragraph-3-1"><num>(1)</num><intro><p>This paragraph applies for determining the credits and debits to be brought into account for any accounting period in accordance with an authorised accruals basis of accounting, where—</p></intro><level class="para1" eId="schedule-9-paragraph-3-1-a"><num>(a)</num><content><p>the answer to the question whether any amount will become due under a loan relationship after the end of that period,</p></content></level><level class="para1" eId="schedule-9-paragraph-3-1-b"><num>(b)</num><content><p>the amount which will become due under a loan relationship after the end of that period, or</p></content></level><level class="para1" eId="schedule-9-paragraph-3-1-c"><num>(c)</num><content><p>the time after the end of that period when an amount will become due under a loan relationship,</p></content></level><wrapUp><p>depends on the exercise of an option by a party to the relationship or an associate of his, or is otherwise under the control of such a party or an associate of his.</p></wrapUp></subparagraph><subparagraph eId="schedule-9-paragraph-3-2"><num>(2)</num><content><p>It shall be assumed that the party or his associate will exercise his power to determine whether and on what date any amount will become due in the manner which (apart from taxation) appears, as at the end of the accounting period in question, to be the most advantageous to that party.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-3-3"><num>(3)</num><content><p>In this paragraph “associate” has the meaning given for the purposes of Part XI of the Taxes Act 1988 by section 417(3) and (4) of that Act.</p></content></subparagraph></paragraph></hcontainer>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-9-paragraph-3" class="schProv1"><num>3</num><subparagraph eId="schedule-9-paragraph-3-1"><num>(1)</num><intro><p>This paragraph applies for determining the credits and debits to be brought into account for any accounting period in accordance with an authorised accruals basis of accounting, where—</p></intro><level class="para1" eId="schedule-9-paragraph-3-1-a"><num>(a)</num><content><p>the answer to the question whether any amount will become due under a loan relationship after the end of that period,</p></content></level><level class="para1" eId="schedule-9-paragraph-3-1-b"><num>(b)</num><content><p>the amount which will become due under a loan relationship after the end of that period, or</p></content></level><level class="para1" eId="schedule-9-paragraph-3-1-c"><num>(c)</num><content><p>the time after the end of that period when an amount will become due under a loan relationship,</p></content></level><wrapUp><p>depends on the exercise of an option by a party to the relationship or an associate of his, or is otherwise under the control of such a party or an associate of his.</p></wrapUp></subparagraph><subparagraph eId="schedule-9-paragraph-3-2"><num>(2)</num><content><p>It shall be assumed that the party or his associate will exercise his power to determine whether and on what date any amount will become due in the manner which (apart from taxation) appears, as at the end of the accounting period in question, to be the most advantageous to that party.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-3-3"><num>(3)</num><content><p>In this paragraph “associate” has the meaning given for the purposes of Part XI of the Taxes Act 1988 by section 417(3) and (4) of that Act.</p></content></subparagraph></paragraph>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="schedule-9-crossheading-foreign-exchange-gains-and-losses"><heading>Foreign exchange gains and losses</heading><paragraph eId="schedule-9-paragraph-4" class="schProv1"><num>4</num><subparagraph eId="schedule-9-paragraph-4-1"><num>(1)</num><content><p>The credits and debits to be brought into account for the purposes of this Chapter shall be computed disregarding so much of any authorised accounting method as, by requiring the translation or conversion of amounts from one currency into another, has the effect that credits and debits produced by that method include sums in which profits, gains or losses arising from fluctuations in the value of a currency are to any extent represented.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-4-2"><num>(2)</num><content><p>This paragraph is without prejudice to the provisions of Chapter II of Part II of the <noteRef href="#m00220" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1993 (exchange gains and losses).</p></content></subparagraph></paragraph></hcontainer>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-9-paragraph-4" class="schProv1"><num>4</num><subparagraph eId="schedule-9-paragraph-4-1"><num>(1)</num><content><p>The credits and debits to be brought into account for the purposes of this Chapter shall be computed disregarding so much of any authorised accounting method as, by requiring the translation or conversion of amounts from one currency into another, has the effect that credits and debits produced by that method include sums in which profits, gains or losses arising from fluctuations in the value of a currency are to any extent represented.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-4-2"><num>(2)</num><content><p>This paragraph is without prejudice to the provisions of Chapter II of Part II of the <noteRef href="#m00220" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1993 (exchange gains and losses).</p></content></subparagraph></paragraph>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="schedule-9-crossheading-bad-debt-etc"><heading>Bad debt etc.</heading><paragraph eId="schedule-9-paragraph-5" class="schProv1"><num>5</num><subparagraph eId="schedule-9-paragraph-5-1"><num>(1)</num><intro><p>In determining the credits and debits to be brought into account in accordance with an accruals basis of accounting, a departure from the assumption in the case of the creditor relationships of a company that every amount payable under those relationships will be paid in full as it becomes due shall be allowed (subject to paragraph 6 below) to the extent only that—</p></intro><level class="para1" eId="schedule-9-paragraph-5-1-a"><num>(a)</num><content><p>a debt is a bad debt;</p></content></level><level class="para1" eId="schedule-9-paragraph-5-1-b"><num>(b)</num><content><p>a doubtful debt is estimated to be bad; or</p></content></level><level class="para1" eId="schedule-9-paragraph-5-1-c"><num>(c)</num><content><p>a liability to pay any amount is released.</p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-5-2"><num>(2)</num><content><p>Such a departure shall be made only where the accounting arrangements allowing the departure also require appropriate adjustments, in the form of credits, to be made if the whole or any part of an amount taken or estimated to represent an amount of bad debt is paid or otherwise ceases to be an amount in respect of which such a departure is allowed.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-5-3"><num>(3)</num><intro><p>Where—</p></intro><level class="para1" eId="schedule-9-paragraph-5-3-a"><num>(a)</num><content><p>a liability to pay any amount under a debtor relationship of a company is released, and</p></content></level><level class="para1" eId="schedule-9-paragraph-5-3-b"><num>(b)</num><content><p>the release takes place in an accounting period for which an authorised accruals basis of accounting is used as respects that relationship,</p></content></level><wrapUp><p>no credit in respect of the release shall be required to be brought into account in the case of that company if the release is part of a relevant arrangement or compromise (within the meaning given by section 74(2) of the Taxes Act 1988) or the relationship is one as respects which section 87 of this Act requires the use of an authorised accruals basis of accounting.</p></wrapUp></subparagraph></paragraph></hcontainer>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-9-paragraph-5" class="schProv1"><num>5</num><subparagraph eId="schedule-9-paragraph-5-1"><num>(1)</num><intro><p>In determining the credits and debits to be brought into account in accordance with an accruals basis of accounting, a departure from the assumption in the case of the creditor relationships of a company that every amount payable under those relationships will be paid in full as it becomes due shall be allowed (subject to paragraph 6 below) to the extent only that—</p></intro><level class="para1" eId="schedule-9-paragraph-5-1-a"><num>(a)</num><content><p>a debt is a bad debt;</p></content></level><level class="para1" eId="schedule-9-paragraph-5-1-b"><num>(b)</num><content><p>a doubtful debt is estimated to be bad; or</p></content></level><level class="para1" eId="schedule-9-paragraph-5-1-c"><num>(c)</num><content><p>a liability to pay any amount is released.</p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-5-2"><num>(2)</num><content><p>Such a departure shall be made only where the accounting arrangements allowing the departure also require appropriate adjustments, in the form of credits, to be made if the whole or any part of an amount taken or estimated to represent an amount of bad debt is paid or otherwise ceases to be an amount in respect of which such a departure is allowed.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-5-3"><num>(3)</num><intro><p>Where—</p></intro><level class="para1" eId="schedule-9-paragraph-5-3-a"><num>(a)</num><content><p>a liability to pay any amount under a debtor relationship of a company is released, and</p></content></level><level class="para1" eId="schedule-9-paragraph-5-3-b"><num>(b)</num><content><p>the release takes place in an accounting period for which an authorised accruals basis of accounting is used as respects that relationship,</p></content></level><wrapUp><p>no credit in respect of the release shall be required to be brought into account in the case of that company if the release is part of a relevant arrangement or compromise (within the meaning given by section 74(2) of the Taxes Act 1988) or the relationship is one as respects which section 87 of this Act requires the use of an authorised accruals basis of accounting.</p></wrapUp></subparagraph></paragraph>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="schedule-9-crossheading-bad-debt-etc-where-parties-have-a-connection"><heading>Bad debt etc. where parties have a connection</heading><paragraph eId="schedule-9-paragraph-6" class="schProv1"><num>6</num><subparagraph eId="schedule-9-paragraph-6-1"><num>(1)</num><content><p>This paragraph applies where for any accounting period section 87 of this Act requires an authorised accruals basis of accounting to be used as respects a creditor relationship of a company.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-6-2"><num>(2)</num><content><p>The credits and debits which for that period are to be brought into account for the purposes of this Chapter in accordance with that accounting method shall be computed subject to sub-paragraphs (3) to (6) below.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-6-3"><num>(3)</num><content><p>The assumption that every amount payable under the relationship will be paid in full shall be applied as if no departure from that assumption were authorised by virtue of paragraph 5 above except where it is allowed by sub-paragraph (4) below.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-6-4"><num>(4)</num><intro><p>A departure from that assumption shall be allowed in relation to a liability to pay any amount to the company (“the creditor company”) under the creditor relationship where—</p></intro><level class="para1" eId="schedule-9-paragraph-6-4-a"><num>(a)</num><content><p>in consideration of, or of any entitlement to, any shares forming part of the ordinary share capital of the company on whom the liability would otherwise have fallen, the creditor company treats the liability as discharged; and</p></content></level><level class="para1" eId="schedule-9-paragraph-6-4-b"><num>(b)</num><content><p>the condition specified in sub-paragraph (5) below is satisfied.</p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-6-5"><num>(5)</num><content><p>That condition is that there would be no connection between the two companies for the accounting period in which that consideration is given if the question whether there is such a connection for that period fell to be determined, in accordance with section 87 of this Act, by reference only to times before the creditor company acquired possession of, or any entitlement to, the shares in question.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-6-6"><num>(6)</num><intro><p>Where the company ceases in the accounting period in question to be a party to the relationship—</p></intro><level class="para1" eId="schedule-9-paragraph-6-6-a"><num>(a)</num><content><p>the debits brought into account for that period in respect of that relationship shall not (subject to sub-paragraph (7) below) be more than they would have been had the company not ceased to be a party to the relationship; and</p></content></level><level class="para1" eId="schedule-9-paragraph-6-6-b"><num>(b)</num><content><p>the credits brought into account for that period in respect of the relationship shall not (subject to that sub-paragraph) be less than they would have been in those circumstances.</p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-6-7"><num>(7)</num><content><p>In determining for the purposes of sub-paragraph (6) above the debits and credits that would have been brought into account if a company had not ceased to be a party to a loan relationship, no account shall be taken of any amounts that would have accrued at times after it ceased to be a party to the relationship.</p></content></subparagraph></paragraph></hcontainer>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-9-paragraph-6" class="schProv1"><num>6</num><subparagraph eId="schedule-9-paragraph-6-1"><num>(1)</num><content><p>This paragraph applies where for any accounting period section 87 of this Act requires an authorised accruals basis of accounting to be used as respects a creditor relationship of a company.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-6-2"><num>(2)</num><content><p>The credits and debits which for that period are to be brought into account for the purposes of this Chapter in accordance with that accounting method shall be computed subject to sub-paragraphs (3) to (6) below.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-6-3"><num>(3)</num><content><p>The assumption that every amount payable under the relationship will be paid in full shall be applied as if no departure from that assumption were authorised by virtue of paragraph 5 above except where it is allowed by sub-paragraph (4) below.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-6-4"><num>(4)</num><intro><p>A departure from that assumption shall be allowed in relation to a liability to pay any amount to the company (“the creditor company”) under the creditor relationship where—</p></intro><level class="para1" eId="schedule-9-paragraph-6-4-a"><num>(a)</num><content><p>in consideration of, or of any entitlement to, any shares forming part of the ordinary share capital of the company on whom the liability would otherwise have fallen, the creditor company treats the liability as discharged; and</p></content></level><level class="para1" eId="schedule-9-paragraph-6-4-b"><num>(b)</num><content><p>the condition specified in sub-paragraph (5) below is satisfied.</p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-6-5"><num>(5)</num><content><p>That condition is that there would be no connection between the two companies for the accounting period in which that consideration is given if the question whether there is such a connection for that period fell to be determined, in accordance with section 87 of this Act, by reference only to times before the creditor company acquired possession of, or any entitlement to, the shares in question.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-6-6"><num>(6)</num><intro><p>Where the company ceases in the accounting period in question to be a party to the relationship—</p></intro><level class="para1" eId="schedule-9-paragraph-6-6-a"><num>(a)</num><content><p>the debits brought into account for that period in respect of that relationship shall not (subject to sub-paragraph (7) below) be more than they would have been had the company not ceased to be a party to the relationship; and</p></content></level><level class="para1" eId="schedule-9-paragraph-6-6-b"><num>(b)</num><content><p>the credits brought into account for that period in respect of the relationship shall not (subject to that sub-paragraph) be less than they would have been in those circumstances.</p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-6-7"><num>(7)</num><content><p>In determining for the purposes of sub-paragraph (6) above the debits and credits that would have been brought into account if a company had not ceased to be a party to a loan relationship, no account shall be taken of any amounts that would have accrued at times after it ceased to be a party to the relationship.</p></content></subparagraph></paragraph>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="schedule-9-crossheading-writingoff-of-government-investments"><heading>Writing-off of government investments</heading><paragraph eId="schedule-9-paragraph-7" class="schProv1"><num>7</num><subparagraph eId="schedule-9-paragraph-7-1"><num>(1)</num><content><p>Where any government investment in a company is written off by the release of a liability to pay any amount under a debtor relationship of the company, no credit shall be required, in the case of that company, to be brought into account for the purposes of this Chapter in respect of that release.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-7-2"><num>(2)</num><content><p>Subsections (7) and (8) of section 400 of the Taxes Act 1988 shall apply, as they apply for the purposes of that section, for construing the reference in sub-paragraph (1) above to the writing-off of a government investment.</p></content></subparagraph></paragraph></hcontainer>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-9-paragraph-7" class="schProv1"><num>7</num><subparagraph eId="schedule-9-paragraph-7-1"><num>(1)</num><content><p>Where any government investment in a company is written off by the release of a liability to pay any amount under a debtor relationship of the company, no credit shall be required, in the case of that company, to be brought into account for the purposes of this Chapter in respect of that release.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-7-2"><num>(2)</num><content><p>Subsections (7) and (8) of section 400 of the Taxes Act 1988 shall apply, as they apply for the purposes of that section, for construing the reference in sub-paragraph (1) above to the writing-off of a government investment.</p></content></subparagraph></paragraph>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="schedule-9-crossheading-restriction-on-writing-off-overseas-sovereign-debt-etc"><heading>Restriction on writing off overseas sovereign debt etc.</heading><paragraph eId="schedule-9-paragraph-8" class="schProv1"><num>8</num><subparagraph eId="schedule-9-paragraph-8-1"><num>(1)</num><content><p>This paragraph applies for the purposes of the use, as respects any loan relationship of a company and in conformity with paragraph 5 above, of an authorised accruals basis of accounting.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-8-2"><num>(2)</num><content><p>Where the company is one to which a relevant overseas debt is owed, the debits and credits to be brought into account on that basis for the purposes of this Chapter shall be determined, for any accounting period of the company, on the assumption that it is not permissible for more than the relevant percentage of the debt to be estimated to be bad.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-8-3"><num>(3)</num><content><p>For the purposes of this paragraph the relevant percentage of a debt for any accounting period of a company is (subject to sub-paragraph (4) below) such percentage (which may be zero) as may be determined, by reference to the position at the end of the relevant period of account, in accordance with regulations made by the Treasury.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-8-4"><num>(4)</num><content><p>Where, apart from this sub-paragraph, the relevant percentage of a debt for any accounting period is more than the adjusted base percentage of that debt for that period, the relevant percentage of the debt for that period shall be taken to be equal to its adjusted base percentage for that period.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-8-5"><num>(5)</num><intro><p>For the purposes of this paragraph the adjusted base percentage of a debt for any accounting period shall be calculated by—</p></intro><level class="para1" eId="schedule-9-paragraph-8-5-a"><num>(a)</num><content><p>taking the percentage which, in accordance with section 88B of the Taxes Act 1988 and any regulations made under that section, was or (assuming the debt to have been a debt of the company at the end of the base period) would have been the base percentage for that debt; and</p></content></level><level class="para1" eId="schedule-9-paragraph-8-5-b"><num>(b)</num><intro><p>increasing that base percentage by five percentage points for every complete year (except the first) between—</p></intro><level class="para2" eId="schedule-9-paragraph-8-5-b-i"><num>(i)</num><content><p>the time by reference to which the base percentage was, or would have been, determined, and</p></content></level><level class="para2" eId="schedule-9-paragraph-8-5-b-ii"><num>(ii)</num><content><p>the end of the relevant period of account.</p></content></level></level></subparagraph><subparagraph eId="schedule-9-paragraph-8-6"><num>(6)</num><content><p>In this paragraph “the relevant period of account”, in relation to any accounting period of a company, means the period of account ending with that accounting period or, if a period of account does not end with that accounting period, the last period of account of the company to end before the end of that accounting period.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-8-7"><num>(7)</num><intro><p>In this paragraph “relevant overseas debt” means any debt which—</p></intro><level class="para1" eId="schedule-9-paragraph-8-7-a"><num>(a)</num><content><p>satisfies one of the conditions specified in sub-paragraph (8) below; but</p></content></level><level class="para1" eId="schedule-9-paragraph-8-7-b"><num>(b)</num><content><p>is neither interest on a debt nor a debt which represents the consideration for the provision of goods or services.</p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-8-8"><num>(8)</num><intro><p>Those conditions are—</p></intro><level class="para1" eId="schedule-9-paragraph-8-8-a"><num>(a)</num><content><p>that the debt is owed by an overseas State authority; or</p></content></level><level class="para1" eId="schedule-9-paragraph-8-8-b"><num>(b)</num><content><p>that payment of the debt is guaranteed by an overseas State authority; or</p></content></level><level class="para1" eId="schedule-9-paragraph-8-8-c"><num>(c)</num><intro><p>that the debt is estimated to be bad for the purposes of this Chapter wholly or mainly because due payment is or may be prevented, restricted or subjected to conditions—</p></intro><level class="para2" eId="schedule-9-paragraph-8-8-c-i"><num>(i)</num><content><p>by virtue of any law of a State or other territory outside the United Kingdom or any act of an overseas State authority; or</p></content></level><level class="para2" eId="schedule-9-paragraph-8-8-c-ii"><num>(ii)</num><content><p>under any agreement entered into in consequence or anticipation of such a law or act.</p></content></level></level></subparagraph><subparagraph eId="schedule-9-paragraph-8-9"><num>(9)</num><intro><p>In this paragraph “overseas State authority” means—</p></intro><level class="para1" eId="schedule-9-paragraph-8-9-a"><num>(a)</num><content><p>a State or other territory outside the United Kingdom;</p></content></level><level class="para1" eId="schedule-9-paragraph-8-9-b"><num>(b)</num><content><p>the government of such a State or territory;</p></content></level><level class="para1" eId="schedule-9-paragraph-8-9-c"><num>(c)</num><content><p>the central bank or other monetary authority of such a State or territory;</p></content></level><level class="para1" eId="schedule-9-paragraph-8-9-d"><num>(d)</num><content><p>a public or local authority in such a State or territory; or</p></content></level><level class="para1" eId="schedule-9-paragraph-8-9-e"><num>(e)</num><content><p>a body controlled by such a State, territory, government, bank or authority;</p></content></level><wrapUp><p>and for this purpose “controlled” shall be construed in accordance with section 840 of the Taxes Act 1988.</p></wrapUp></subparagraph><subparagraph eId="schedule-9-paragraph-8-10"><num>(10)</num><content><p>The Treasury shall not make any regulations under this paragraph unless a draft of them has been laid before and approved by a resolution of the House of Commons.</p></content></subparagraph></paragraph></hcontainer>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-9-paragraph-8" class="schProv1"><num>8</num><subparagraph eId="schedule-9-paragraph-8-1"><num>(1)</num><content><p>This paragraph applies for the purposes of the use, as respects any loan relationship of a company and in conformity with paragraph 5 above, of an authorised accruals basis of accounting.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-8-2"><num>(2)</num><content><p>Where the company is one to which a relevant overseas debt is owed, the debits and credits to be brought into account on that basis for the purposes of this Chapter shall be determined, for any accounting period of the company, on the assumption that it is not permissible for more than the relevant percentage of the debt to be estimated to be bad.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-8-3"><num>(3)</num><content><p>For the purposes of this paragraph the relevant percentage of a debt for any accounting period of a company is (subject to sub-paragraph (4) below) such percentage (which may be zero) as may be determined, by reference to the position at the end of the relevant period of account, in accordance with regulations made by the Treasury.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-8-4"><num>(4)</num><content><p>Where, apart from this sub-paragraph, the relevant percentage of a debt for any accounting period is more than the adjusted base percentage of that debt for that period, the relevant percentage of the debt for that period shall be taken to be equal to its adjusted base percentage for that period.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-8-5"><num>(5)</num><intro><p>For the purposes of this paragraph the adjusted base percentage of a debt for any accounting period shall be calculated by—</p></intro><level class="para1" eId="schedule-9-paragraph-8-5-a"><num>(a)</num><content><p>taking the percentage which, in accordance with section 88B of the Taxes Act 1988 and any regulations made under that section, was or (assuming the debt to have been a debt of the company at the end of the base period) would have been the base percentage for that debt; and</p></content></level><level class="para1" eId="schedule-9-paragraph-8-5-b"><num>(b)</num><intro><p>increasing that base percentage by five percentage points for every complete year (except the first) between—</p></intro><level class="para2" eId="schedule-9-paragraph-8-5-b-i"><num>(i)</num><content><p>the time by reference to which the base percentage was, or would have been, determined, and</p></content></level><level class="para2" eId="schedule-9-paragraph-8-5-b-ii"><num>(ii)</num><content><p>the end of the relevant period of account.</p></content></level></level></subparagraph><subparagraph eId="schedule-9-paragraph-8-6"><num>(6)</num><content><p>In this paragraph “the relevant period of account”, in relation to any accounting period of a company, means the period of account ending with that accounting period or, if a period of account does not end with that accounting period, the last period of account of the company to end before the end of that accounting period.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-8-7"><num>(7)</num><intro><p>In this paragraph “relevant overseas debt” means any debt which—</p></intro><level class="para1" eId="schedule-9-paragraph-8-7-a"><num>(a)</num><content><p>satisfies one of the conditions specified in sub-paragraph (8) below; but</p></content></level><level class="para1" eId="schedule-9-paragraph-8-7-b"><num>(b)</num><content><p>is neither interest on a debt nor a debt which represents the consideration for the provision of goods or services.</p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-8-8"><num>(8)</num><intro><p>Those conditions are—</p></intro><level class="para1" eId="schedule-9-paragraph-8-8-a"><num>(a)</num><content><p>that the debt is owed by an overseas State authority; or</p></content></level><level class="para1" eId="schedule-9-paragraph-8-8-b"><num>(b)</num><content><p>that payment of the debt is guaranteed by an overseas State authority; or</p></content></level><level class="para1" eId="schedule-9-paragraph-8-8-c"><num>(c)</num><intro><p>that the debt is estimated to be bad for the purposes of this Chapter wholly or mainly because due payment is or may be prevented, restricted or subjected to conditions—</p></intro><level class="para2" eId="schedule-9-paragraph-8-8-c-i"><num>(i)</num><content><p>by virtue of any law of a State or other territory outside the United Kingdom or any act of an overseas State authority; or</p></content></level><level class="para2" eId="schedule-9-paragraph-8-8-c-ii"><num>(ii)</num><content><p>under any agreement entered into in consequence or anticipation of such a law or act.</p></content></level></level></subparagraph><subparagraph eId="schedule-9-paragraph-8-9"><num>(9)</num><intro><p>In this paragraph “overseas State authority” means—</p></intro><level class="para1" eId="schedule-9-paragraph-8-9-a"><num>(a)</num><content><p>a State or other territory outside the United Kingdom;</p></content></level><level class="para1" eId="schedule-9-paragraph-8-9-b"><num>(b)</num><content><p>the government of such a State or territory;</p></content></level><level class="para1" eId="schedule-9-paragraph-8-9-c"><num>(c)</num><content><p>the central bank or other monetary authority of such a State or territory;</p></content></level><level class="para1" eId="schedule-9-paragraph-8-9-d"><num>(d)</num><content><p>a public or local authority in such a State or territory; or</p></content></level><level class="para1" eId="schedule-9-paragraph-8-9-e"><num>(e)</num><content><p>a body controlled by such a State, territory, government, bank or authority;</p></content></level><wrapUp><p>and for this purpose “controlled” shall be construed in accordance with section 840 of the Taxes Act 1988.</p></wrapUp></subparagraph><subparagraph eId="schedule-9-paragraph-8-10"><num>(10)</num><content><p>The Treasury shall not make any regulations under this paragraph unless a draft of them has been laid before and approved by a resolution of the House of Commons.</p></content></subparagraph></paragraph>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="definition"><content><p>“creditor relationship”, in relation to a company, means any loan relationship of that company in the case of which it stands in the position of a creditor as respects the debt in question;</p></content></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="definition"><intro><p>“bad investment advice” means investment advice in respect of which an action against the person who gave it has been, or may be, brought—</p></intro><level class="para1"><num>(a)</num><content><p>in or for negligence;</p></content></level><level class="para1"><num>(b)</num><content><p>for breach of contract;</p></content></level><level class="para1"><num>(c)</num><content><p>by reason of a breach of a fiduciary obligation; or</p></content></level><level class="para1"><num>(d)</num><content><p>by reason of a contravention which is actionable under section 62 of the <noteRef href="#m00096" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Financial Services Act 1986;</p></content></level></hcontainer>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1"><num>(c)</num><content><p>by reason of a breach of a fiduciary obligation; or</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1"><num>(d)</num><content><p>by reason of a contravention which is actionable under section 62 of the <noteRef href="#m00096" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Financial Services Act 1986;</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-70-2"><num>(2)</num><intro><p>A landfill disposal is a disposal—</p></intro><level class="para1" eId="section-70-2-a"><num>(a)</num><content><p>of material as waste, and</p></content></level><level class="para1" eId="section-70-2-b"><num>(b)</num><content><p>made by way of landfill.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-70-2-a"><num>(a)</num><content><p>of material as waste, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-70-2-b"><num>(b)</num><content><p>made by way of landfill.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-70-3"><num>(3)</num><content><p>A reference to this Part includes a reference to any order or regulations made under it and a reference to a provision of this Part includes a reference to any order or regulations made under the provision, unless otherwise required by the context or any order or regulations.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-70-4"><num>(4)</num><content><p>This section and sections 64 to 69 above apply for the purposes of this Part.</p></content></subsection>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="part-III-crossheading-supplementary"><heading>Supplementary</heading><section eId="section-71"><num>71</num><heading>Orders and regulations</heading><subsection eId="section-71-1"><num>(1)</num><content><p>The power to make an order under section 57 above shall be exercisable by the Commissioners, and the power to make an order under any other provision of this Part shall be exercisable by the Treasury.</p></content></subsection><subsection eId="section-71-2"><num>(2)</num><content><p>Any power to make regulations under this Part shall be exercisable by the Commissioners.</p></content></subsection><subsection eId="section-71-3"><num>(3)</num><content><p>Any power to make an order or regulations under this Part shall be exercisable by statutory instrument.</p></content></subsection><subsection eId="section-71-4"><num>(4)</num><content><p>An order to which this subsection applies shall be laid before the House of Commons; and unless it is approved by that House before the expiration of a period of 28 days beginning with the date on which it was made it shall cease to have effect on the expiration of that period, but without prejudice to anything previously done under the order or to the making of a new order.</p></content></subsection><subsection eId="section-71-5"><num>(5)</num><content><p>In reckoning any such period as is mentioned in subsection (4) above no account shall be taken of any time during which Parliament is dissolved or prorogued or during which the House of Commons is adjourned for more than four days.</p></content></subsection><subsection eId="section-71-6"><num>(6)</num><content><p>A statutory instrument containing an order or regulations under this Part (other than an order under section 57 above or an order to which subsection (4) above applies) shall be subject to annulment in pursuance of a resolution of the House of Commons.</p></content></subsection><subsection eId="section-71-7"><num>(7)</num><intro><p>Subsection (4) above applies to—</p></intro><level class="para1" eId="section-71-7-a"><num>(a)</num><content><p>an order under section 42(3) above providing for material which would otherwise be qualifying material not to be qualifying material;</p></content></level><level class="para1" eId="section-71-7-b"><num>(b)</num><content><p>an order under section 46 above which produces the result that a disposal which would otherwise not be a taxable disposal is a taxable disposal;</p></content></level><level class="para1" eId="section-71-7-c"><num>(c)</num><content><p>an order under section 63(5) above other than one which provides only that an earlier order under section 63(5) is not to apply to material;</p></content></level><level class="para1" eId="section-71-7-d"><num>(d)</num><content><p>an order under section 65(5) above providing for anything which would otherwise not be a disposal of material by way of landfill to be such a disposal.</p></content></level></subsection><subsection eId="section-71-8"><num>(8)</num><intro><p>Any power to make an order or regulations under this Part—</p></intro><level class="para1" eId="section-71-8-a"><num>(a)</num><content><p>may be exercised as regards prescribed cases or descriptions of case;</p></content></level><level class="para1" eId="section-71-8-b"><num>(b)</num><content><p>may be exercised differently in relation to different cases or descriptions of case.</p></content></level></subsection><subsection eId="section-71-9"><num>(9)</num><content><p>An order or regulations under this Part may include such supplementary, incidental, consequential or transitional provisions as appear to the Treasury or the Commissioners (as the case may be) to be necessary or expedient.</p></content></subsection><subsection eId="section-71-10"><num>(10)</num><content><p>No specific provision of this Part about an order or regulations shall prejudice the generality of subsections (8) and (9) above.</p></content></subsection></section></hcontainer>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-71"><num>71</num><heading>Orders and regulations</heading><subsection eId="section-71-1"><num>(1)</num><content><p>The power to make an order under section 57 above shall be exercisable by the Commissioners, and the power to make an order under any other provision of this Part shall be exercisable by the Treasury.</p></content></subsection><subsection eId="section-71-2"><num>(2)</num><content><p>Any power to make regulations under this Part shall be exercisable by the Commissioners.</p></content></subsection><subsection eId="section-71-3"><num>(3)</num><content><p>Any power to make an order or regulations under this Part shall be exercisable by statutory instrument.</p></content></subsection><subsection eId="section-71-4"><num>(4)</num><content><p>An order to which this subsection applies shall be laid before the House of Commons; and unless it is approved by that House before the expiration of a period of 28 days beginning with the date on which it was made it shall cease to have effect on the expiration of that period, but without prejudice to anything previously done under the order or to the making of a new order.</p></content></subsection><subsection eId="section-71-5"><num>(5)</num><content><p>In reckoning any such period as is mentioned in subsection (4) above no account shall be taken of any time during which Parliament is dissolved or prorogued or during which the House of Commons is adjourned for more than four days.</p></content></subsection><subsection eId="section-71-6"><num>(6)</num><content><p>A statutory instrument containing an order or regulations under this Part (other than an order under section 57 above or an order to which subsection (4) above applies) shall be subject to annulment in pursuance of a resolution of the House of Commons.</p></content></subsection><subsection eId="section-71-7"><num>(7)</num><intro><p>Subsection (4) above applies to—</p></intro><level class="para1" eId="section-71-7-a"><num>(a)</num><content><p>an order under section 42(3) above providing for material which would otherwise be qualifying material not to be qualifying material;</p></content></level><level class="para1" eId="section-71-7-b"><num>(b)</num><content><p>an order under section 46 above which produces the result that a disposal which would otherwise not be a taxable disposal is a taxable disposal;</p></content></level><level class="para1" eId="section-71-7-c"><num>(c)</num><content><p>an order under section 63(5) above other than one which provides only that an earlier order under section 63(5) is not to apply to material;</p></content></level><level class="para1" eId="section-71-7-d"><num>(d)</num><content><p>an order under section 65(5) above providing for anything which would otherwise not be a disposal of material by way of landfill to be such a disposal.</p></content></level></subsection><subsection eId="section-71-8"><num>(8)</num><intro><p>Any power to make an order or regulations under this Part—</p></intro><level class="para1" eId="section-71-8-a"><num>(a)</num><content><p>may be exercised as regards prescribed cases or descriptions of case;</p></content></level><level class="para1" eId="section-71-8-b"><num>(b)</num><content><p>may be exercised differently in relation to different cases or descriptions of case.</p></content></level></subsection><subsection eId="section-71-9"><num>(9)</num><content><p>An order or regulations under this Part may include such supplementary, incidental, consequential or transitional provisions as appear to the Treasury or the Commissioners (as the case may be) to be necessary or expedient.</p></content></subsection><subsection eId="section-71-10"><num>(10)</num><content><p>No specific provision of this Part about an order or regulations shall prejudice the generality of subsections (8) and (9) above.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-71-1"><num>(1)</num><content><p>The power to make an order under section 57 above shall be exercisable by the Commissioners, and the power to make an order under any other provision of this Part shall be exercisable by the Treasury.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-71-2"><num>(2)</num><content><p>Any power to make regulations under this Part shall be exercisable by the Commissioners.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-71-3"><num>(3)</num><content><p>Any power to make an order or regulations under this Part shall be exercisable by statutory instrument.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-71-4"><num>(4)</num><content><p>An order to which this subsection applies shall be laid before the House of Commons; and unless it is approved by that House before the expiration of a period of 28 days beginning with the date on which it was made it shall cease to have effect on the expiration of that period, but without prejudice to anything previously done under the order or to the making of a new order.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-71-5"><num>(5)</num><content><p>In reckoning any such period as is mentioned in subsection (4) above no account shall be taken of any time during which Parliament is dissolved or prorogued or during which the House of Commons is adjourned for more than four days.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-71-6"><num>(6)</num><content><p>A statutory instrument containing an order or regulations under this Part (other than an order under section 57 above or an order to which subsection (4) above applies) shall be subject to annulment in pursuance of a resolution of the House of Commons.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-71-7"><num>(7)</num><intro><p>Subsection (4) above applies to—</p></intro><level class="para1" eId="section-71-7-a"><num>(a)</num><content><p>an order under section 42(3) above providing for material which would otherwise be qualifying material not to be qualifying material;</p></content></level><level class="para1" eId="section-71-7-b"><num>(b)</num><content><p>an order under section 46 above which produces the result that a disposal which would otherwise not be a taxable disposal is a taxable disposal;</p></content></level><level class="para1" eId="section-71-7-c"><num>(c)</num><content><p>an order under section 63(5) above other than one which provides only that an earlier order under section 63(5) is not to apply to material;</p></content></level><level class="para1" eId="section-71-7-d"><num>(d)</num><content><p>an order under section 65(5) above providing for anything which would otherwise not be a disposal of material by way of landfill to be such a disposal.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-71-7-a"><num>(a)</num><content><p>an order under section 42(3) above providing for material which would otherwise be qualifying material not to be qualifying material;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-71-7-b"><num>(b)</num><content><p>an order under section 46 above which produces the result that a disposal which would otherwise not be a taxable disposal is a taxable disposal;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-71-7-c"><num>(c)</num><content><p>an order under section 63(5) above other than one which provides only that an earlier order under section 63(5) is not to apply to material;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-71-7-d"><num>(d)</num><content><p>an order under section 65(5) above providing for anything which would otherwise not be a disposal of material by way of landfill to be such a disposal.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-71-8"><num>(8)</num><intro><p>Any power to make an order or regulations under this Part—</p></intro><level class="para1" eId="section-71-8-a"><num>(a)</num><content><p>may be exercised as regards prescribed cases or descriptions of case;</p></content></level><level class="para1" eId="section-71-8-b"><num>(b)</num><content><p>may be exercised differently in relation to different cases or descriptions of case.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-71-8-a"><num>(a)</num><content><p>may be exercised as regards prescribed cases or descriptions of case;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-71-8-b"><num>(b)</num><content><p>may be exercised differently in relation to different cases or descriptions of case.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-71-9"><num>(9)</num><content><p>An order or regulations under this Part may include such supplementary, incidental, consequential or transitional provisions as appear to the Treasury or the Commissioners (as the case may be) to be necessary or expedient.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-71-10"><num>(10)</num><content><p>No specific provision of this Part about an order or regulations shall prejudice the generality of subsections (8) and (9) above.</p></content></subsection>
<part xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" eId="part-IV"><num>Part IV</num><heading>Income Tax, Corporation Tax and Capital Gains Tax</heading><chapter eId="part-IV-chapter-I"><num>Chapter I</num><heading>Principal provisions</heading><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-IV-chapter-I-crossheading-income-tax-charge-rates-and-reliefs"><heading>Income tax charge, rates and reliefs</heading><section eId="section-72"><num>72</num><heading>Charge and rates of income tax for 1996-97</heading><subsection eId="section-72-1"><num>(1)</num><intro><p>Income tax shall be charged for the year 1996-97, and for that year—</p></intro><level class="para1" eId="section-72-1-a"><num>(a)</num><content><p>the lower rate shall be 20 per cent.;</p></content></level><level class="para1" eId="section-72-1-b"><num>(b)</num><content><p>the basic rate shall be 24 per cent.; and</p></content></level><level class="para1" eId="section-72-1-c"><num>(c)</num><content><p>the higher rate shall be 40 per cent.</p></content></level></subsection><subsection eId="section-72-2"><num>(2)</num><intro><p>For the year 1996-97 section 1(2) of the Taxes Act 1988 shall apply—</p></intro><level class="para1" eId="section-72-2-a"><num>(a)</num><content><p>as if the amount specified in paragraph (aa) (the lower rate limit) were £3,900; and</p></content></level><level class="para1" eId="section-72-2-b"><num>(b)</num><content><p>as if the amount specified in paragraph (b) (the basic rate limit) were £25,500;</p></content></level><wrapUp><p>and, accordingly, section 1(4) of that Act (indexation) shall not apply for the year 1996-97.</p></wrapUp></subsection><subsection eId="section-72-3"><num>(3)</num><intro><p>Section 559(4) of the Taxes Act 1988 (deductions from payments to sub-contractors in the construction industry) shall have effect—</p></intro><level class="para1" eId="section-72-3-a"><num>(a)</num><content><p>in relation to payments made on or after 1st July 1996 and before the appointed day (within the meaning of section 139 of the <noteRef href="#m00051" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1995), with “24 per cent.” substituted for “25 per cent.”; and</p></content></level><level class="para1" eId="section-72-3-b"><num>(b)</num><content><p>in relation to payments made on or after that appointed day, as if the substitution for which section 139(1) of the <noteRef href="#m00052" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1995 provided were a substitution of “the relevant percentage” for “24 per cent.”</p></content></level></subsection></section><section eId="section-73"><num>73</num><heading>Application of lower rate to income from savings</heading><subsection eId="section-73-1"><num>(1)</num><content><p><mod>After section 1 of the Taxes Act 1988 there shall be inserted the following section—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>1A</num><heading>Application of lower rate to income from savings and distributions</heading><subsection><num>(1)</num><intro><p>Subject to sections 469(2) and 686, so much of any person’s total income for any year of assessment as—</p></intro><level class="para1"><num>(a)</num><content><p>comprises income to which this section applies, and</p></content></level><level class="para1"><num>(b)</num><content><p>in the case of an individual, is not income falling within section 1(2)(b),</p></content></level><wrapUp><p>shall, by virtue of this section, be charged for that year at the lower rate, instead of at the rate otherwise applicable to it in accordance with section 1(2)(aa) and (a).</p></wrapUp></subsection><subsection><num>(2)</num><intro><p>Subject to subsection (4) below, this section applies to the following income—</p></intro><level class="para1"><num>(a)</num><intro><p>any income chargeable under Case III of Schedule D other than—</p></intro><level class="para2"><num>(i)</num><content><p>relevant annuities and other annual payments that are not interest; and</p></content></level><level class="para2"><num>(ii)</num><content><p>amounts so chargeable by virtue of section 119 or 120;</p></content></level></level><level class="para1"><num>(b)</num><content><p>any income chargeable under Schedule F; and</p></content></level><level class="para1"><num>(c)</num><content><p>subject to subsection (4) below, any equivalent foreign income.</p></content></level></subsection><subsection><num>(3)</num><intro><p>The income which is equivalent foreign income for the purposes of this section is any income chargeable under Case IV or V of Schedule D which—</p></intro><level class="para1"><num>(a)</num><content><p>is equivalent to a description of income falling within subsection (2)(a) above but arises from securities or other possessions out of the United Kingdom; or</p></content></level><level class="para1"><num>(b)</num><content><p>consists in any such dividend or other distribution of a company not resident in the United Kingdom as would be chargeable under Schedule F if the company were resident in the United Kingdom.</p></content></level></subsection><subsection><num>(4)</num><intro><p>This section does not apply to—</p></intro><level class="para1"><num>(a)</num><content><p>any income chargeable to tax under Case IV or V of Schedule D which is such that section 65(5)(a) or (b) provides for the tax to be computed on the full amount of sums received in the United Kingdom; or</p></content></level><level class="para1"><num>(b)</num><content><p>any amounts deemed by virtue of section 695(4)(b) or 696(6) to be income chargeable under Case IV of Schedule D.</p></content></level></subsection><subsection><num>(5)</num><content><p>So much of any person’s income as comprises income to which this section applies shall be treated for the purposes of subsection (1)(b) above and any other provisions of the Income Tax Acts as the highest part of his income.</p></content></subsection><subsection><num>(6)</num><content><p>Subsection (5) above shall have effect subject to section 833(3) but shall otherwise have effect notwithstanding any provision requiring income of any description to be treated for the purposes of the Income Tax Acts (other than section 550) as the highest part of a person’s income.</p></content></subsection><subsection><num>(7)</num><content><p>In this section “relevant annuity” means any annuity other than a purchased life annuity to which section 656 applies or to which that section would apply but for section 657(2)(a).</p></content></subsection></section></quotedStructure></mod></p></content></subsection><subsection eId="section-73-2"><num>(2)</num><content><p><mod>In section 4 of that Act (construction of references to deduction of tax), after subsection (1) there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1A)</num><content><p>As respects deductions from, and tax treated as paid on, any such amounts as constitute or (but for the person whose income they are) would constitute income to which section 1A applies, subsection (1) above shall have effect with a reference to the lower rate in force for the relevant year of assessment substituted for the reference to the basic rate in force for that year.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-73-3"><num>(3)</num><content><p>Subsection (1) above has effect in relation to the year 1996-97 and subsequent years of assessment and subsection (2) above has effect in relation to payments on or after 6th April 1996.</p></content></subsection><subsection eId="section-73-4"><num>(4)</num><content><p>Schedule 6 to this Act (which makes further amendments in connection with the charge at the lower rate on income from savings etc.) shall have effect.</p></content></subsection><subsection eId="section-73-5"><num>(5)</num><content><p>Where any subordinate legislation (within the meaning of the <noteRef href="#m00053" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Interpretation Act 1978) falls to be construed in accordance with section 4 of the Taxes Act 1988, that legislation (whenever it was made) shall be construed, in relation to payments on or after 6th April 1996, subject to subsection (1A) of that section.</p></content></subsection></section><section eId="section-74"><num>74</num><heading>Personal allowances for 1996-97</heading><subsection eId="section-74-1"><num>(1)</num><content><p>For the year 1996-97 the amounts specified in the provisions mentioned in subsection (2) below shall be taken to be as set out in that subsection; and, accordingly, section 257C(1) of the Taxes Act 1988 (indexation), so far as it relates to the amounts so specified, shall not apply for the year 1996-97.</p></content></subsection><subsection eId="section-74-2"><num>(2)</num><intro><p>In section 257 of that Act (personal allowance)—</p></intro><level class="para1" eId="section-74-2-a"><num>(a)</num><content><p>the amount in subsection (1) (basic allowance) shall be £3,765;</p></content></level><level class="para1" eId="section-74-2-b"><num>(b)</num><content><p>the amount in subsection (2) (allowance for persons aged 65 or more but not aged 75 or more) shall be £4,910; and</p></content></level><level class="para1" eId="section-74-2-c"><num>(c)</num><content><p>the amount in subsection (3) (allowance for persons aged 75 or more) shall be £5,090.</p></content></level></subsection></section><section eId="section-75"><num>75</num><heading>Blind person’s allowance</heading><subsection eId="section-75-1"><num>(1)</num><content><p>In section 265(1) of the Taxes Act 1988 (blind person’s allowance), for “£1,200” there shall be substituted “£1,250”.</p></content></subsection><subsection eId="section-75-2"><num>(2)</num><content><p>This section shall apply for the year 1996-97 and subsequent years of assessment.</p></content></subsection></section><section eId="section-76"><num>76</num><heading>Limit on relief for interest</heading><content><p>For the year 1996-97 the qualifying maximum defined in section 367(5) of the Taxes Act 1988 (limit on relief for interest on certain loans) shall be £30,000.</p></content></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-IV-chapter-I-crossheading-corporation-tax-charge-and-rate"><heading>Corporation tax charge and rate</heading><section eId="section-77"><num>77</num><heading>Charge and rate of corporation tax for 1996</heading><content><p>Corporation tax shall be charged for the financial year 1996 at the rate of 33 per cent.</p></content></section><section eId="section-78"><num>78</num><heading>Small companies</heading><intro><p>For the financial year 1996—</p></intro><level class="para1" eId="section-78-a"><num>(a)</num><content><p>the small companies' rate shall be 24 per cent.; and</p></content></level><level class="para1" eId="section-78-b"><num>(b)</num><content><p>the fraction mentioned in section 13(2) of the Taxes Act 1988 (marginal relief for small companies) shall be nine four-hundredths.</p></content></level></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-IV-chapter-I-crossheading-abolition-of-schedule-c-charge-etc"><heading>Abolition of Schedule C charge etc.</heading><section eId="section-79"><num>79</num><heading>Abolition of Schedule C charge etc</heading><subsection eId="section-79-1"><num>(1)</num><intro><p>The charge to tax under Schedule C is abolished—</p></intro><level class="para1" eId="section-79-1-a"><num>(a)</num><content><p>for the purposes of income tax, for the year 1996-97 and subsequent years of assessment;</p></content></level><level class="para1" eId="section-79-1-b"><num>(b)</num><content><p>for the purposes of corporation tax, for accounting periods ending after 31st March 1996.</p></content></level></subsection><subsection eId="section-79-2"><num>(2)</num><content><p>Schedule 7 to this Act (which, together with Chapter II of this Part of this Act, makes provision for imposing a charge under Schedule D on descriptions of income previously charged under Schedule C, and makes connected amendments) shall have effect.</p></content></subsection></section></hcontainer></chapter><chapter eId="part-IV-chapter-II"><num>Chapter II</num><heading>Loan relationships</heading><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-IV-chapter-II-crossheading-introductory-provisions"><heading>Introductory provisions</heading><section eId="section-80"><num>80</num><heading>Taxation of loan relationships</heading><subsection eId="section-80-1"><num>(1)</num><content><p>For the purposes of corporation tax all profits and gains arising to a company from its loan relationships shall be chargeable to tax as income in accordance with this Chapter.</p></content></subsection><subsection eId="section-80-2"><num>(2)</num><content><p>To the extent that a company is a party to a loan relationship for the purposes of a trade carried on by the company, profits and gains arising from the relationship shall be brought into account in computing the profits and gains of the trade.</p></content></subsection><subsection eId="section-80-3"><num>(3)</num><content><p>Profits and gains arising from a loan relationship of a company that are not brought into account under subsection (2) above shall be brought into account as profits and gains chargeable to tax under Case III of Schedule D.</p></content></subsection><subsection eId="section-80-4"><num>(4)</num><content><p>This Chapter shall also have effect for the purposes of corporation tax for determining how any deficit on a company’s loan relationships is to be brought into account in any case, including a case where none of the company’s loan relationships falls by virtue of this Chapter to be regarded as a source of income.</p></content></subsection><subsection eId="section-80-5"><num>(5)</num><content><p>Subject to any express provision to the contrary, the amounts which in the case of any company are brought into account in accordance with this Chapter as respects any matter shall be the only amounts brought into account for the purposes of corporation tax as respects that matter.</p></content></subsection></section><section eId="section-81"><num>81</num><heading>Meaning of “loan relationship” etc</heading><subsection eId="section-81-1"><num>(1)</num><intro><p>Subject to the following provisions of this section, a company has a loan relationship for the purposes of the Corporation Tax Acts wherever—</p></intro><level class="para1" eId="section-81-1-a"><num>(a)</num><content><p>the company stands (whether by reference to a security or otherwise) in the position of a creditor or debtor as respects any money debt; and</p></content></level><level class="para1" eId="section-81-1-b"><num>(b)</num><content><p>that debt is one arising from a transaction for the lending of money;</p></content></level><wrapUp><p>and references to a loan relationship and to a company’s being a party to a loan relationship shall be construed accordingly.</p></wrapUp></subsection><subsection eId="section-81-2"><num>(2)</num><intro><p>For the purposes of this Chapter a money debt is a debt which falls to be settled—</p></intro><level class="para1" eId="section-81-2-a"><num>(a)</num><content><p>by the payment of money; or</p></content></level><level class="para1" eId="section-81-2-b"><num>(b)</num><content><p>by the transfer of a right to settlement under a debt which is itself a money debt.</p></content></level></subsection><subsection eId="section-81-3"><num>(3)</num><content><p>Subject to subsection (4) below, where an instrument is issued by any person for the purpose of representing security for, or the rights of a creditor in respect of, any money debt, then (whatever the circumstances of the issue of the instrument) that debt shall be taken for the purposes of this Chapter to be a debt arising from a transaction for the lending of money.</p></content></subsection><subsection eId="section-81-4"><num>(4)</num><content><p>For the purposes of this Chapter a debt shall not be taken to arise from a transaction for the lending of money to the extent that it is a debt arising from rights conferred by shares in a company.</p></content></subsection><subsection eId="section-81-5"><num>(5)</num><intro><p>For the purposes of this Chapter—</p></intro><level class="para1" eId="section-81-5-a"><num>(a)</num><content><p>references to payments or interest under a loan relationship are references to payments or interest made or payable in pursuance of any of the rights or liabilities under that relationship; and</p></content></level><level class="para1" eId="section-81-5-b"><num>(b)</num><content><p>references to rights or liabilities under a loan relationship are references to any of the rights or liabilities under the agreement or arrangements by virtue of which that relationship subsists;</p></content></level><wrapUp><p>and those rights or liabilities shall be taken to include the rights or liabilities attached to any security which, being a security issued in relation to the money debt in question, is a security representing that relationship.</p></wrapUp></subsection><subsection eId="section-81-6"><num>(6)</num><content><p>In this Chapter “money” includes money expressed in a currency other than sterling.</p></content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-IV-chapter-II-crossheading-taxation-of-profits-and-gains-and-relief-for-deficits"><heading>Taxation of profits and gains and relief for deficits</heading><section eId="section-82"><num>82</num><heading>Method of bringing amounts into account</heading><subsection eId="section-82-1"><num>(1)</num><intro><p>For the purposes of corporation tax—</p></intro><level class="para1" eId="section-82-1-a"><num>(a)</num><content><p>the profits and gains arising from the loan relationships of a company, and</p></content></level><level class="para1" eId="section-82-1-b"><num>(b)</num><content><p>any deficit on a company’s loan relationships,</p></content></level><wrapUp><p>shall be computed in accordance with this section using the credits and debits given for the accounting period in question by the following provisions of this Chapter.</p></wrapUp></subsection><subsection eId="section-82-2"><num>(2)</num><intro><p>To the extent that, in any accounting period, a loan relationship of a company is one to which it is a party for the purposes of a trade carried on by it, the credits and debits given in respect of that relationship for that period shall be treated (according to whether they are credits or debits) either—</p></intro><level class="para1" eId="section-82-2-a"><num>(a)</num><content><p>as receipts of that trade falling to be brought into account in computing the profits and gains of that trade for that period; or</p></content></level><level class="para1" eId="section-82-2-b"><num>(b)</num><content><p>as expenses of that trade which are deductible in computing those profits and gains.</p></content></level></subsection><subsection eId="section-82-3"><num>(3)</num><intro><p>Where for any accounting period there are, in respect of the loan relationships of a company, both—</p></intro><level class="para1" eId="section-82-3-a"><num>(a)</num><content><p>credits that are not brought into account under subsection (2) above (“non-trading credits”), and</p></content></level><level class="para1" eId="section-82-3-b"><num>(b)</num><content><p>debits that are not so brought into account (“non-trading debits”),</p></content></level><wrapUp><p>the aggregate of the non-trading debits shall be subtracted from the aggregate of the non-trading credits to give the amount to be brought into account under subsection (4) below.</p></wrapUp></subsection><subsection eId="section-82-4"><num>(4)</num><intro><p>That amount is the amount which for any accounting period is to be taken (according to whether the aggregate of the non-trading credits or the aggregate of the non-trading debits is the greater) to be either—</p></intro><level class="para1" eId="section-82-4-a"><num>(a)</num><content><p>the amount of the company’s profits and gains for that period that are chargeable under Case III of Schedule D as profits and gains arising from the company’s loan relationships; or</p></content></level><level class="para1" eId="section-82-4-b"><num>(b)</num><content><p>the amount of the company’s non-trading deficit for that period on its loan relationships.</p></content></level></subsection><subsection eId="section-82-5"><num>(5)</num><content><p>Where for any accounting period a company has non-trading credits but no non-trading debits in respect of its loan relationships, the aggregate amount of the credits shall be the amount of the company’s profits and gains for that period that are chargeable under Case III of Schedule D as profits and gains arising from those relationships.</p></content></subsection><subsection eId="section-82-6"><num>(6)</num><content><p>Where for any accounting period a company has non-trading debits but no non-trading credits in respect of its loan relationships, that company shall have a non-trading deficit on its loan relationships for that period equal to the aggregate of the debits.</p></content></subsection><subsection eId="section-82-7"><num>(7)</num><content><p>Subsection (2) above, so far as it provides for any amount to be deductible as mentioned in paragraph (b) of that subsection, shall have effect notwithstanding anything in section 74 of the Taxes Act 1988 (allowable deductions).</p></content></subsection></section><section eId="section-83"><num>83</num><heading>Non-trading deficit on loan relationships</heading><subsection eId="section-83-1"><num>(1)</num><content><p>This section applies for the purposes of corporation tax where for any accounting period (“the deficit period”) there is a non-trading deficit on a company’s loan relationships.</p></content></subsection><subsection eId="section-83-2"><num>(2)</num><intro><p>The company may make a claim for the whole or any part of the deficit to be treated in any of the following ways, that is to say—</p></intro><level class="para1" eId="section-83-2-a"><num>(a)</num><content><p>to be set off against any profits of the company (of whatever description) for the deficit period;</p></content></level><level class="para1" eId="section-83-2-b"><num>(b)</num><content><p>to be treated as eligible for group relief;</p></content></level><level class="para1" eId="section-83-2-c"><num>(c)</num><content><p>to be carried back to be set off against profits for earlier accounting periods; or</p></content></level><level class="para1" eId="section-83-2-d"><num>(d)</num><content><p>to be carried forward and set against non-trading profits for the next accounting period.</p></content></level></subsection><subsection eId="section-83-3"><num>(3)</num><content><p>So much of the deficit for the deficit period as is not the subject of a claim under subsection (2) above shall be carried forward so as to be brought into account for the purposes of this Chapter as a non-trading debit (“a carried-forward debit”) for the accounting period immediately following the deficit period.</p></content></subsection><subsection eId="section-83-4"><num>(4)</num><content><p>No claim shall be made under subsection (2)(a) to (c) above in respect of so much (if any) of the non-trading deficit of a company for any accounting period as is equal to the amount by which that deficit is greater than it would have been if any carried-forward debit for that period had been disregarded.</p></content></subsection><subsection eId="section-83-5"><num>(5)</num><content><p>No part of any non-trading deficit of a company established for charitable purposes only shall be set off against the profits of that or any other company in pursuance of a claim under subsection (2) above.</p></content></subsection><subsection eId="section-83-6"><num>(6)</num><content><p>A claim under subsection (2) above must be made within the period of two years immediately following the end of the relevant period, or within such further period as the Board may allow.</p></content></subsection><subsection eId="section-83-7"><num>(7)</num><intro><p>In subsection (6) above “the relevant period”—</p></intro><level class="para1" eId="section-83-7-a"><num>(a)</num><content><p>in relation to a claim under subsection (2)(a), (b) or (c) above, means the deficit period; and</p></content></level><level class="para1" eId="section-83-7-b"><num>(b)</num><content><p>in relation to a claim under subsection (2)(d) above, means the accounting period immediately following the deficit period.</p></content></level></subsection><subsection eId="section-83-8"><num>(8)</num><content><p>Different claims may be made under subsection (2) above as respects different parts of a non-trading deficit for any period, but no claim may be made as respects any part of a deficit to which another claim made under that subsection relates.</p></content></subsection><subsection eId="section-83-9"><num>(9)</num><content><p>Schedule 8 to this Act (which makes provision about what happens where a claim is made under subsection (2) above) shall have effect.</p></content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-IV-chapter-II-crossheading-computational-provisions-etc"><heading>Computational provisions etc.</heading><section eId="section-84"><num>84</num><heading>Debits and credits brought into account</heading><subsection eId="section-84-1"><num>(1)</num><intro><p>The credits and debits to be brought into account in the case of any company in respect of its loan relationships shall be the sums which, in accordance with an authorised accounting method and when taken together, fairly represent, for the accounting period in question—</p></intro><level class="para1" eId="section-84-1-a"><num>(a)</num><content><p>all profits, gains and losses of the company, including those of a capital nature, which (disregarding interest and any charges or expenses) arise to the company from its loan relationships and related transactions; and</p></content></level><level class="para1" eId="section-84-1-b"><num>(b)</num><content><p>all interest under the company’s loan relationship and all charges and expenses incurred by the company under or for the purposes of its loan relationships and related transactions.</p></content></level></subsection><subsection eId="section-84-2"><num>(2)</num><intro><p>The reference in subsection (1) above to the profits, gains and losses arising to a company—</p></intro><level class="para1" eId="section-84-2-a"><num>(a)</num><content><p>does not include a reference to any amounts required to be transferred to the company’s share premium account; but</p></content></level><level class="para1" eId="section-84-2-b"><num>(b)</num><content><p>does include a reference to any profits, gains or losses which, in accordance with normal accountancy practice, are carried to or sustained by any other reserve maintained by the company.</p></content></level></subsection><subsection eId="section-84-3"><num>(3)</num><intro><p>The reference in subsection (1)(b) above to charges and expenses incurred for the purposes of a company’s loan relationships and related transactions does not include a reference to any charges or expenses other than those incurred directly—</p></intro><level class="para1" eId="section-84-3-a"><num>(a)</num><content><p>in bringing any of those relationships into existence;</p></content></level><level class="para1" eId="section-84-3-b"><num>(b)</num><content><p>in entering into or giving effect to any of those transactions;</p></content></level><level class="para1" eId="section-84-3-c"><num>(c)</num><content><p>in making payments under any of those relationships or in pursuance of any of those transactions; or</p></content></level><level class="para1" eId="section-84-3-d"><num>(d)</num><content><p>in taking steps for ensuring the receipt of payments under any of those relationships or in accordance with any of those transactions.</p></content></level></subsection><subsection eId="section-84-4"><num>(4)</num><intro><p>Where—</p></intro><level class="para1" eId="section-84-4-a"><num>(a)</num><intro><p>any charges or expenses are incurred by a company for purposes connected—</p></intro><level class="para2" eId="section-84-4-a-i"><num>(i)</num><content><p>with entering into a loan relationship or related transaction, or</p></content></level><level class="para2" eId="section-84-4-a-ii"><num>(ii)</num><content><p>with giving effect to any obligation that might arise under a loan relationship or related transaction,</p></content></level></level><level class="para1" eId="section-84-4-b"><num>(b)</num><content><p>at the time when the charges or expenses are incurred, the relationship or transaction is one into which the company may enter but has not entered, and</p></content></level><level class="para1" eId="section-84-4-c"><num>(c)</num><content><p>if that relationship or transaction had been entered into by that company, the charges or expenses would be charges or expenses incurred as mentioned in subsection (3) above,</p></content></level><wrapUp><p>those charges or expenses shall be treated for the purposes of this Chapter as charges or expenses in relation to which debits may be brought into account in accordance with subsection (1)(b) above to the same extent as if the relationship or transaction had been entered into.</p></wrapUp></subsection><subsection eId="section-84-5"><num>(5)</num><content><p>In this section “related transaction”, in relation to a loan relationship, means any disposal or acquisition (in whole or in part) of rights or liabilities under that relationship.</p></content></subsection><subsection eId="section-84-6"><num>(6)</num><content><p>The cases where there shall be taken for the purposes of this section to be a disposal and acquisition of rights or liabilities under a loan relationship shall include those where such rights or liabilities are transferred or extinguished by any sale, gift, exchange, surrender, redemption or release.</p></content></subsection><subsection eId="section-84-7"><num>(7)</num><content><p>This section has effect subject to Schedule 9 to this Act (which contains provision disallowing certain debits and credits for the purposes of this Chapter and making assumptions about how an authorised accounting method is to be applied in certain cases).</p></content></subsection></section><section eId="section-85"><num>85</num><heading>Authorised accounting methods</heading><subsection eId="section-85-1"><num>(1)</num><intro><p>Subject to the following provisions of this Chapter, the alternative accounting methods that are authorised for the purposes of this Chapter are—</p></intro><level class="para1" eId="section-85-1-a"><num>(a)</num><content><p>an accruals basis of accounting; and</p></content></level><level class="para1" eId="section-85-1-b"><num>(b)</num><content><p>a mark to market basis of accounting under which any loan relationship to which that basis is applied is brought into account in each accounting period at a fair value.</p></content></level></subsection><subsection eId="section-85-2"><num>(2)</num><intro><p>An accounting method applied in any case shall be treated as authorised for the purposes of this Chapter only if—</p></intro><level class="para1" eId="section-85-2-a"><num>(a)</num><content><p>it conforms (subject to paragraphs (b) and (c) below) to normal accountancy practice, as followed in cases where such practice allows the use of that method;</p></content></level><level class="para1" eId="section-85-2-b"><num>(b)</num><content><p>it contains proper provision for allocating payments under a loan relationship to accounting periods; and</p></content></level><level class="para1" eId="section-85-2-c"><num>(c)</num><content><p>where it is an accruals basis of accounting, it does not contain any provision (other than provision comprised in authorised arrangements for bad debt) that gives debits by reference to the valuation at different times of any asset representing a loan relationship.</p></content></level></subsection><subsection eId="section-85-3"><num>(3)</num><intro><p>In the case of an accruals basis of accounting, proper provision for allocating payments under a loan relationship to accounting periods is provision which—</p></intro><level class="para1" eId="section-85-3-a"><num>(a)</num><content><p>allocates payments to the period to which they relate, without regard to the periods in which they are made or received or in which they become due and payable;</p></content></level><level class="para1" eId="section-85-3-b"><num>(b)</num><content><p>includes provision which, where payments relate to two or more periods, apportions them on a just and reasonable basis between the different periods;</p></content></level><level class="para1" eId="section-85-3-c"><num>(c)</num><content><p>assumes, subject to authorised arrangements for bad debt, that, so far as any company in the position of a creditor is concerned, every amount payable under the relationship will be paid in full as it becomes due;</p></content></level><level class="para1" eId="section-85-3-d"><num>(d)</num><content><p>secures the making of the adjustments required in the case of the relationship by authorised arrangements for bad debt; and</p></content></level><level class="para1" eId="section-85-3-e"><num>(e)</num><content><p>provides, subject to authorised arrangements for bad debt and for writing off government investments, that, where there is a release of any liability under the relationship, the appropriate amount in respect of the release is credited to the debtor in the accounting period in which the release takes place.</p></content></level></subsection><subsection eId="section-85-4"><num>(4)</num><content><p>In the case of a mark to market basis of accounting, proper provision for allocating payments under a loan relationship to accounting periods is provision which allocates payments to the accounting period in which they become due and payable.</p></content></subsection><subsection eId="section-85-5"><num>(5)</num><intro><p>In this section—</p></intro><level class="para1" eId="section-85-5-a"><num>(a)</num><content><p>the references to authorised arrangements for bad debt are references to accounting arrangements under which debits and credits are brought into account in conformity with the provisions of paragraph 5 of Schedule 9 to this Act; and</p></content></level><level class="para1" eId="section-85-5-b"><num>(b)</num><content><p>the reference to authorised arrangements for writing off government investments is a reference to accounting arrangements that give effect to paragraph 7 of that Schedule.</p></content></level></subsection><subsection eId="section-85-6"><num>(6)</num><intro><p>In this section “fair value”, in relation to any loan relationship of a company, means the amount which, at the time as at which the value falls to be determined, is the amount that the company would obtain from or, as the case may be, would have to pay to an independent person for—</p></intro><level class="para1" eId="section-85-6-a"><num>(a)</num><content><p>the transfer of all the company’s rights under the relationship in respect of amounts which at that time are not yet due and payable; and</p></content></level><level class="para1" eId="section-85-6-b"><num>(b)</num><content><p>the release of all the company’s liabilities under the relationship in respect of amounts which at that time are not yet due and payable.</p></content></level></subsection></section><section eId="section-86"><num>86</num><heading>Application of accounting methods</heading><subsection eId="section-86-1"><num>(1)</num><content><p>This section has effect, subject to the following provisions of this Chapter, for the determination of which of the alternative authorised accounting methods that are available by virtue of section 85 above is to be used as respects the loan relationships of a company.</p></content></subsection><subsection eId="section-86-2"><num>(2)</num><content><p>Different methods may be used as respects different relationships or, as respects the same relationship, for different accounting periods or for different parts of the same accounting period.</p></content></subsection><subsection eId="section-86-3"><num>(3)</num><intro><p>If a basis of accounting which is or equates with an authorised accounting method is used as respects any loan relationship of a company in a company’s statutory accounts, then the method which is to be used for the purposes of this Chapter as respects that relationship for the accounting period, or part of a period, for which that basis is used in those accounts shall be—</p></intro><level class="para1" eId="section-86-3-a"><num>(a)</num><content><p>where the basis used in those accounts is an authorised accounting method, that method; and</p></content></level><level class="para1" eId="section-86-3-b"><num>(b)</num><content><p>where it is not, the authorised accounting method with which it equates.</p></content></level></subsection><subsection eId="section-86-4"><num>(4)</num><content><p>For any period or part of a period for which the authorised accounting method to be used as respects a loan relationship of a company is not determined under subsection (3) above, an authorised accruals basis of accounting shall be used for the purposes of this Chapter as respects that loan relationship.</p></content></subsection><subsection eId="section-86-5"><num>(5)</num><intro><p>For the purposes of this section (but subject to subsection (6) below)—</p></intro><level class="para1" eId="section-86-5-a"><num>(a)</num><content><p>a basis of accounting equates with an authorised accruals basis of accounting if it purports to allocate payments under a loan relationship to accounting periods according to when they are taken to accrue; and</p></content></level><level class="para1" eId="section-86-5-b"><num>(b)</num><intro><p>a basis of accounting equates with an authorised mark to market basis of accounting if (without equating with an authorised accruals basis of accounting) it purports in respect of a loan relationship—</p></intro><level class="para2" eId="section-86-5-b-i"><num>(i)</num><content><p>to produce credits or debits computed by reference to the determination, as at different times in an accounting period, of a fair value; and</p></content></level><level class="para2" eId="section-86-5-b-ii"><num>(ii)</num><content><p>to produce credits or debits relating to payments under that relationship according to when they become due and payable.</p></content></level></level></subsection><subsection eId="section-86-6"><num>(6)</num><intro><p>An accounting method which purports to make any such allocation of payments under a loan relationship as is mentioned in subsection (5)(a) above shall be taken for the purposes of this section to equate with an authorised mark to market basis of accounting (rather than with an authorised accruals basis of accounting) if—</p></intro><level class="para1" eId="section-86-6-a"><num>(a)</num><content><p>it purports to bring that relationship into account in each accounting period at a value which would be a fair value if the valuation were made on the basis that interest under the relationship were to be disregarded to the extent that it has already accrued; and</p></content></level><level class="para1" eId="section-86-6-b"><num>(b)</num><content><p>the credits and debits produced in the case of that relationship by that method (when it is properly applied) correspond, for all practical purposes, to the credits and debits produced in the case of that relationship, and for the same accounting period, by an authorised mark to market basis of accounting.</p></content></level></subsection><subsection eId="section-86-7"><num>(7)</num><content><p>In this section “fair value” has the same meaning as in section 85 above.</p></content></subsection><subsection eId="section-86-8"><num>(8)</num><intro><p>In this section “statutory accounts”, in relation to a company, means—</p></intro><level class="para1" eId="section-86-8-a"><num>(a)</num><content><p>any accounts relating to that company that are drawn up in accordance with any requirements of the <noteRef href="#m00054" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Companies Act 1985 or the <noteRef href="#m00055" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Companies (Northern Ireland) Order 1986 that apply in relation to that company;</p></content></level><level class="para1" eId="section-86-8-b"><num>(b)</num><content><p>any accounts relating to that company that are drawn up in accordance with any requirements of regulations under section 70 of the <noteRef href="#m00056" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Friendly Societies Act 1992 that apply in relation to that company;</p></content></level><level class="para1" eId="section-86-8-c"><num>(c)</num><content><p>any accounts relating to that company which are accounts to which Part I of Schedule 21C to the <noteRef href="#m00057" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Companies Act 1985 or Part I of Schedule 21D to that Act (companies with UK branches) applies;</p></content></level><level class="para1" eId="section-86-8-d"><num>(d)</num><intro><p>in the case of a company which—</p></intro><level class="para2" eId="section-86-8-d-i"><num>(i)</num><content><p>is not subject to any such requirements as are mentioned in paragraphs (a) or (b) above, and</p></content></level><level class="para2" eId="section-86-8-d-ii"><num>(ii)</num><content><p>is a company in whose case there are no accounts for the period in question that fall within paragraph (c) above,</p></content></level><wrapUp><p>any accounts relating to the company drawn up in accordance with requirements imposed in relation to that company under the law of its home State; and</p></wrapUp></level><level class="para1" eId="section-86-8-e"><num>(e)</num><intro><p>in the case of a company which—</p></intro><level class="para2" eId="section-86-8-e-i"><num>(i)</num><content><p>is not subject to any such requirements as are mentioned in paragraphs (a), (b) or (d) above, and</p></content></level><level class="para2" eId="section-86-8-e-ii"><num>(ii)</num><content><p>is a company in whose case there are no accounts for the period in question that fall within paragraph (c) above,</p></content></level><wrapUp><p>the accounts relating to the company that most closely correspond to the accounts which, in the case of a company formed and registered under the Companies Act 1985, are required under that Act.</p></wrapUp></level></subsection><subsection eId="section-86-9"><num>(9)</num><content><p>For the purposes of subsection (8) above the home State of a company is the country or territory under whose law the company is incorporated.</p></content></subsection></section><section eId="section-87"><num>87</num><heading>Accounting method where parties have a connection</heading><subsection eId="section-87-1"><num>(1)</num><intro><p>This section applies in the case of a loan relationship of a company where for any accounting period there is a connection between the company and—</p></intro><level class="para1" eId="section-87-1-a"><num>(a)</num><content><p>in the case of a debtor relationship of the company, a person standing in the position of a creditor as respects the debt in question; or</p></content></level><level class="para1" eId="section-87-1-b"><num>(b)</num><content><p>in the case of a creditor relationship of the company, a person standing in the position of a debtor as respects that debt.</p></content></level></subsection><subsection eId="section-87-2"><num>(2)</num><content><p>The only accounting method authorised for the purposes of this Chapter for use by the company as respects the loan relationship shall be an authorised accruals basis of accounting.</p></content></subsection><subsection eId="section-87-3"><num>(3)</num><intro><p>For the purposes of this section there is a connection between a company and another person for an accounting period if (subject to subsection (4) and section 88 below)—</p></intro><level class="para1" eId="section-87-3-a"><num>(a)</num><content><p>the other person is a company and there is a time in that period, or in the two years before the beginning of that period, when one of the companies has had control of the other;</p></content></level><level class="para1" eId="section-87-3-b"><num>(b)</num><content><p>the other person is a company and there is a time in that period, or in those two years, when both the companies have been under the control of the same person; or</p></content></level><level class="para1" eId="section-87-3-c"><num>(c)</num><content><p>there is a time in that accounting period, or in those two years, when the company was a close company and the other person was a participator in that company or the associate of a person who was such a participator at that time.</p></content></level></subsection><subsection eId="section-87-4"><num>(4)</num><content><p>Two companies which have at any time been under the control of the same person shall not, by virtue of that fact, be taken for the purposes of this section to be companies between whom there is a connection if the person was the Crown, a Minister of the Crown, a government department, a Northern Ireland department, a foreign sovereign power or an international organisation.</p></content></subsection><subsection eId="section-87-5"><num>(5)</num><content><p>The references in subsection (1) above to a person who stands in the position of a creditor or debtor as respects a loan relationship include references to a person who indirectly stands in that position by reference to a series of loan relationships.</p></content></subsection><subsection eId="section-87-6"><num>(6)</num><content><p>Subsections (2) to (6) of section 416 of the Taxes Act 1988 (meaning of “control”) shall apply for the purposes of this section as they apply for the purposes of Part XI of that Act.</p></content></subsection><subsection eId="section-87-7"><num>(7)</num><content><p>Subject to subsection (8) below, in this section “participator” and “associate” have the meanings given for the purposes of Part XI of the Taxes Act 1988 by section 417 of that Act.</p></content></subsection><subsection eId="section-87-8"><num>(8)</num><content><p>A person shall not for the purposes of this section be regarded as a participator in relation to a company by reason only that he is a loan creditor of the company.</p></content></subsection></section><section eId="section-88"><num>88</num><heading>Exemption from section 87 in certain cases</heading><subsection eId="section-88-1"><num>(1)</num><content><p>Subject to subsection (5) below, where a creditor relationship of a company is one to which that company is a party in any accounting period in exempt circumstances, any connection for that accounting period between the company and a person who stands in the position of a debtor as respects the debt shall be disregarded for the purposes of section 87 above.</p></content></subsection><subsection eId="section-88-2"><num>(2)</num><intro><p>A company having a creditor relationship in any accounting period shall, for that period, be taken for the purposes of this section to be a party to that relationship in exempt circumstances if—</p></intro><level class="para1" eId="section-88-2-a"><num>(a)</num><content><p>the company, in the course of carrying on any activities forming an integral part of a trade carried on by that company in that period, disposes of or acquires assets representing creditor relationships;</p></content></level><level class="para1" eId="section-88-2-b"><num>(b)</num><content><p>that period is one for which the company uses an authorised mark to market basis of accounting as respects all the creditor relationships represented by assets acquired in the course of those activities;</p></content></level><level class="para1" eId="section-88-2-c"><num>(c)</num><content><p>the asset representing the creditor relationship in question was acquired in the course of those activities;</p></content></level><level class="para1" eId="section-88-2-d"><num>(d)</num><intro><p>that asset is either—</p></intro><level class="para2" eId="section-88-2-d-i"><num>(i)</num><content><p>listed on a recognised stock exchange at the end of that period; or</p></content></level><level class="para2" eId="section-88-2-d-ii"><num>(ii)</num><content><p>a security the redemption of which must occur within twelve months of its issue;</p></content></level></level><level class="para1" eId="section-88-2-e"><num>(e)</num><content><p>there is a time in that period when assets of the same kind as the asset representing the loan relationship in question are in the beneficial ownership of persons other than the company; and</p></content></level><level class="para1" eId="section-88-2-f"><num>(f)</num><content><p>there is not more than three months, in aggregate, in that accounting period during which the equivalent of 30 per cent. or more of the assets of that kind is in the beneficial ownership of connected persons.</p></content></level></subsection><subsection eId="section-88-3"><num>(3)</num><intro><p>An insurance company carrying on basic life assurance and general annuity business and having a creditor relationship in any accounting period shall, for that period, be taken for the purposes of this section to be a party to that relationship in exempt circumstances if—</p></intro><level class="para1" eId="section-88-3-a"><num>(a)</num><content><p>assets of the company representing any of its creditor relationships are linked for that period to its basic life assurance and general annuity business;</p></content></level><level class="para1" eId="section-88-3-b"><num>(b)</num><content><p>that period is one for which the company uses an authorised mark to market basis of accounting as respects all the creditor relationships of the company represented by assets that are so linked;</p></content></level><level class="para1" eId="section-88-3-c"><num>(c)</num><content><p>the asset representing the creditor relationship in question is so linked;</p></content></level><level class="para1" eId="section-88-3-d"><num>(d)</num><intro><p>that asset is either—</p></intro><level class="para2" eId="section-88-3-d-i"><num>(i)</num><content><p>listed on a recognised stock exchange at the end of that period; or</p></content></level><level class="para2" eId="section-88-3-d-ii"><num>(ii)</num><content><p>a security the redemption of which must occur within twelve months of its issue;</p></content></level></level><level class="para1" eId="section-88-3-e"><num>(e)</num><content><p>there is a time in that period when assets of the same kind as the asset representing the creditor relationship in question are in the beneficial ownership of persons other than the company; and</p></content></level><level class="para1" eId="section-88-3-f"><num>(f)</num><content><p>there is not more than three months, in aggregate, in that accounting period during which the equivalent of 30 per cent. or more of the assets of that kind is in the beneficial ownership of connected persons.</p></content></level></subsection><subsection eId="section-88-4"><num>(4)</num><intro><p>For the purposes of subsections (2) and (3) above—</p></intro><level class="para1" eId="section-88-4-a"><num>(a)</num><content><p>assets shall be taken to be of the same kind where they are treated as being of the same kind by the practice of any recognised stock exchange, or would be so treated if dealt with on such a stock exchange; and</p></content></level><level class="para1" eId="section-88-4-b"><num>(b)</num><intro><p>a connected person has the beneficial ownership of an asset wherever there is, or (apart from this section) would be, a connection (within the meaning of section 87 above) between—</p></intro><level class="para2" eId="section-88-4-b-i"><num>(i)</num><content><p>the person who has the beneficial ownership of the asset, and</p></content></level><level class="para2" eId="section-88-4-b-ii"><num>(ii)</num><content><p>a person who stands in the position of a debtor as respects the money debt by reference to which any loan relationship represented by that asset subsists.</p></content></level></level></subsection><subsection eId="section-88-5"><num>(5)</num><intro><p>Where for any accounting period—</p></intro><level class="para1" eId="section-88-5-a"><num>(a)</num><content><p>subsection (1) above has effect in the case of a creditor relationship of a company, and</p></content></level><level class="para1" eId="section-88-5-b"><num>(b)</num><content><p>the person who stands in the position of a debtor as respects the debt in question is also a company,</p></content></level><wrapUp><p>that subsection shall not apply for determining, for the purposes of so much of section 87 above as relates to the corresponding debtor relationship, whether there is a connection between the two companies.</p></wrapUp></subsection><subsection eId="section-88-6"><num>(6)</num><content><p>Subsection (5) of section 87 above shall apply for the purposes of this section as it applies for the purposes of that section.</p></content></subsection><subsection eId="section-88-7"><num>(7)</num><content><p>In this section “basic life assurance and general annuity business” and “insurance company” have the same meanings as in Chapter I of Part XII of the Taxes Act 1988, and section 432ZA of that Act (linked assets) shall apply for the purposes of this section as it applies for the purposes of that Chapter.</p></content></subsection></section><section eId="section-89"><num>89</num><heading>Inconsistent application of accounting methods</heading><subsection eId="section-89-1"><num>(1)</num><content><p>Where there is any inconsistency or other material difference between the way in which any authorised accounting method is applied as respects the same loan relationship in successive accounting periods, a balancing credit or balancing debit shall be brought into account in the second of those periods (“the second period”).</p></content></subsection><subsection eId="section-89-2"><num>(2)</num><intro><p>The amount of the balancing credit or debit shall be computed as respects the relationship in question by—</p></intro><level class="para1" eId="section-89-2-a"><num>(a)</num><content><p>taking the amount given by subsection (3) below and the amount given by subsection (4) below; and</p></content></level><level class="para1" eId="section-89-2-b"><num>(b)</num><content><p>then aggregating those amounts (treating any debit as a negative amount) to produce a net credit or net debit.</p></content></level></subsection><subsection eId="section-89-3"><num>(3)</num><intro><p>The amount given by this subsection is whichever of the following is applicable—</p></intro><level class="para1" eId="section-89-3-a"><num>(a)</num><intro><p>a debit equal to the amount (if any) by which the first of the following amounts exceeds the second, that is to say—</p></intro><level class="para2" eId="section-89-3-a-i"><num>(i)</num><content><p>the aggregate of the credits actually brought into account for all previous periods in which the accounting method was used; and</p></content></level><level class="para2" eId="section-89-3-a-ii"><num>(ii)</num><content><p>the aggregate of the credits that would have been brought into account if that method had been applied in those periods in the same way as it was applied in the second period;</p></content></level></level><level class="para1" eId="section-89-3-b"><num>(b)</num><content><p>a credit equal to the amount (if any) by which the second aggregate mentioned in paragraph (a) above exceeds the first; or</p></content></level><level class="para1" eId="section-89-3-c"><num>(c)</num><content><p>if both those aggregates are the same, nil.</p></content></level></subsection><subsection eId="section-89-4"><num>(4)</num><intro><p>The amount given by this subsection is whichever of the following is applicable—</p></intro><level class="para1" eId="section-89-4-a"><num>(a)</num><intro><p>a credit equal to the amount (if any) by which the first of the following amounts exceeds the second, that is to say—</p></intro><level class="para2" eId="section-89-4-a-i"><num>(i)</num><content><p>the aggregate of the debits actually brought into account for all previous periods in which the accounting method was used; and</p></content></level><level class="para2" eId="section-89-4-a-ii"><num>(ii)</num><content><p>the aggregate of the debits that would have been brought into account if that method had been applied in those periods in the same way as it was applied in the second period;</p></content></level></level><level class="para1" eId="section-89-4-b"><num>(b)</num><content><p>a debit equal to the amount (if any) by which the second aggregate mentioned in paragraph (a) above exceeds the first; or</p></content></level><level class="para1" eId="section-89-4-c"><num>(c)</num><content><p>if both those aggregates are the same, nil.</p></content></level></subsection><subsection eId="section-89-5"><num>(5)</num><content><p>In this section “previous period” means any accounting period before the second period.</p></content></subsection></section><section eId="section-90"><num>90</num><heading>Changes of accounting method</heading><subsection eId="section-90-1"><num>(1)</num><content><p>This section applies where different authorised accounting methods are used for the purposes of this Chapter as respects the same loan relationship for different parts of the same accounting period or for successive accounting periods.</p></content></subsection><subsection eId="section-90-2"><num>(2)</num><intro><p>Where, in the case of any loan relationship, the use of any authorised accounting method is superseded in the course of any accounting period by the use of another—</p></intro><level class="para1" eId="section-90-2-a"><num>(a)</num><content><p>the assumptions specified in subsection (4) below shall be made;</p></content></level><level class="para1" eId="section-90-2-b"><num>(b)</num><content><p>each method shall be applied on those assumptions as respects the part of the period for which it is used; and</p></content></level><level class="para1" eId="section-90-2-c"><num>(c)</num><content><p>the credits and debits given by the application of those methods on those assumptions shall be brought into account in the accounting period in which the change of method takes effect.</p></content></level></subsection><subsection eId="section-90-3"><num>(3)</num><intro><p>Where, in the case of any loan relationship, the use of any authorised accounting method is superseded as from the beginning of an accounting period by the use of another—</p></intro><level class="para1" eId="section-90-3-a"><num>(a)</num><intro><p>a net credit or debit shall be computed (treating any debit used in the computation as a negative amount) by—</p></intro><level class="para2" eId="section-90-3-a-i"><num>(i)</num><content><p>aggregating the credits and debits which, on the assumptions specified in subsection (4) below, would have been given in respect of that relationship for the successive accounting periods by the use for each period of the accounting method actually used for that period;</p></content></level><level class="para2" eId="section-90-3-a-ii"><num>(ii)</num><content><p>aggregating the credits and debits so given without the making of those assumptions; and</p></content></level><level class="para2" eId="section-90-3-a-iii"><num>(iii)</num><content><p>subtracting the second aggregate from the first;</p></content></level><wrapUp><p>and</p></wrapUp></level><level class="para1" eId="section-90-3-b"><num>(b)</num><content><p>the net credit or debit shall be brought into account for the purposes of this Chapter in the accounting period as from the beginning of which the change of method takes effect.</p></content></level></subsection><subsection eId="section-90-4"><num>(4)</num><intro><p>The assumptions mentioned in subsections (2) and (3) above are—</p></intro><level class="para1" eId="section-90-4-a"><num>(a)</num><content><p>that the company ceased to be a party to the relationship immediately before the end of the period, or part of a period, for which the superseded method is used;</p></content></level><level class="para1" eId="section-90-4-b"><num>(b)</num><content><p>that the company again became a party to that relationship as from the beginning of the period or, as the case may be, part of a period for which the other authorised accounting method is used;</p></content></level><level class="para1" eId="section-90-4-c"><num>(c)</num><content><p>that the relationship to which the company is deemed to have become a party is separate and distinct from the one to which it is deemed to have ceased to be a party;</p></content></level><level class="para1" eId="section-90-4-d"><num>(d)</num><content><p>that the amount payable under the transaction comprised in each of the assumptions specified in paragraphs (a) and (b) above was equal to the fair value of the relationship; and</p></content></level><level class="para1" eId="section-90-4-e"><num>(e)</num><content><p>so far as relevant, that that amount became due at the time when the company is deemed to have ceased to be a party to the relationship or, as the case may be, to have again become a party to it.</p></content></level></subsection><subsection eId="section-90-5"><num>(5)</num><intro><p>Where—</p></intro><level class="para1" eId="section-90-5-a"><num>(a)</num><content><p>a mark to market basis of accounting is superseded by an accruals basis of accounting in the case of any loan relationship, and</p></content></level><level class="para1" eId="section-90-5-b"><num>(b)</num><content><p>the amount which would have accrued in respect of that relationship in the period or part of a period for which the accruals basis of accounting is used falls to be determined for the purposes of this section in accordance with the assumptions mentioned in subsection (4) above,</p></content></level><wrapUp><p>that amount shall be taken for those purposes to be equal to the amount resulting from the subtraction of the amount given by subsection (6)(a) below from the amount given by subsection (6)(b) below.</p></wrapUp></subsection><subsection eId="section-90-6"><num>(6)</num><intro><p>Those amounts are—</p></intro><level class="para1" eId="section-90-6-a"><num>(a)</num><content><p>the amount which by virtue of the assumptions mentioned in subsection (4) above is given as an opening value for the period or part of a period; and</p></content></level><level class="para1" eId="section-90-6-b"><num>(b)</num><content><p>the amount equal to whatever, in the computation in accordance with an authorised accruals basis of accounting of the amount accruing in that period or part of a period, would have been taken to be the closing value applicable as at the end of that period or part of a period if such a basis of accounting had always been used as respects the relationship.</p></content></level></subsection><subsection eId="section-90-7"><num>(7)</num><content><p>In this section “fair value” has the same meaning as in section 85 above.</p></content></subsection></section><section eId="section-91"><num>91</num><heading>Payments subject to deduction of tax</heading><subsection eId="section-91-1"><num>(1)</num><intro><p>This section applies where—</p></intro><level class="para1" eId="section-91-1-a"><num>(a)</num><content><p>any company receives a payment of interest on which it bears income tax by deduction; and</p></content></level><level class="para1" eId="section-91-1-b"><num>(b)</num><content><p>in the case of that company, a credit relating to that interest has been brought into account for the purposes of this Chapter for an accounting period ending more than two years before the receipt of the payment.</p></content></level></subsection><subsection eId="section-91-2"><num>(2)</num><content><p>On a claim made by the company to an officer of the Board, section 7(2) or, as the case may be, 11(3) of the Taxes Act 1988 (deducted income tax to be set against liability to corporation tax) shall have effect in relation to the income tax on the payment as if the interest had fallen to be taken into account for the purposes of corporation tax in the accounting period in which the payment of that interest is received.</p></content></subsection><subsection eId="section-91-3"><num>(3)</num><content><p>In determining for the purposes of this section which accounting period is the accounting period for which a credit relating to interest paid subsequently was brought into account, every payment of interest to a company under a loan relationship of that company shall be assumed to be a payment in discharge of the earliest outstanding liability to that company in respect of interest payable under the relationship.</p></content></subsection><subsection eId="section-91-4"><num>(4)</num><intro><p>For the purposes of this section, the earliest outstanding liability to interest payable under a loan relationship of a company shall be identified, in relation to any payment of such interest, according to the authorised accounting method most recently used as respects that relationship, so that—</p></intro><level class="para1" eId="section-91-4-a"><num>(a)</num><content><p>if that method is an authorised accruals basis of accounting, it shall be determined by reference to the time when the interest accrued; and</p></content></level><level class="para1" eId="section-91-4-b"><num>(b)</num><content><p>if that method is an authorised mark to market basis of accounting, it shall be determined by reference to the time when the interest became due and payable.</p></content></level></subsection><subsection eId="section-91-5"><num>(5)</num><content><p>In subsection (4) above the reference, in relation to a payment of interest made to a company in any accounting period, to the authorised accounting method most recently used as respects that relationship is a reference to the authorised accounting method which, in the case of that company, has been used as respects that relationship for the accounting period which, when the payment is made, is the most recent for which amounts in respect of that relationship have been brought into account for the purposes of this Chapter.</p></content></subsection><subsection eId="section-91-6"><num>(6)</num><intro><p>A claim under this section shall not be made in respect of any payment of interest at any time after the later of the following, that is to say—</p></intro><level class="para1" eId="section-91-6-a"><num>(a)</num><content><p>the time two years after the end of the accounting period in which the payment is received; and</p></content></level><level class="para1" eId="section-91-6-b"><num>(b)</num><content><p>the time six years after the end of the accounting period for which the credit in respect of the interest was brought into account for the purposes of this Chapter.</p></content></level></subsection><subsection eId="section-91-7"><num>(7)</num><intro><p>Where—</p></intro><level class="para1" eId="section-91-7-a"><num>(a)</num><content><p>there is a payment of interest to a company under a loan relationship of that company, and</p></content></level><level class="para1" eId="section-91-7-b"><num>(b)</num><content><p>the company is prevented by virtue of subsection (6) above from making any claim under this section in respect of that payment,</p></content></level><wrapUp><p>the company shall not be entitled to make any claim under paragraph 5 of Schedule 16 to the Taxes Act 1988 (set off of income tax borne against income tax payable) in respect of that payment.</p></wrapUp></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-IV-chapter-II-crossheading-special-cases"><heading>Special cases</heading><section eId="section-92"><num>92</num><heading>Convertible securities etc</heading><subsection eId="section-92-1"><num>(1)</num><intro><p>This section applies to an asset if—</p></intro><level class="para1" eId="section-92-1-a"><num>(a)</num><content><p>the asset represents a creditor relationship of a company;</p></content></level><level class="para1" eId="section-92-1-b"><num>(b)</num><content><p>the rights attached to the asset include provision by virtue of which the company is or may become entitled to acquire (whether by conversion or exchange or otherwise) any shares in a company;</p></content></level><level class="para1" eId="section-92-1-c"><num>(c)</num><content><p>the extent to which shares may be acquired under that provision is not determined using a cash value which is specified in that provision or which is or will be ascertainable by reference to the terms of that provision;</p></content></level><level class="para1" eId="section-92-1-d"><num>(d)</num><content><p>the asset is not a relevant discounted security within the meaning of Schedule 13 to this Act;</p></content></level><level class="para1" eId="section-92-1-e"><num>(e)</num><content><p>at the time when the asset came into existence there was a more than negligible likelihood that the right to acquire shares in a company would in due course be exercised to a significant extent; and</p></content></level><level class="para1" eId="section-92-1-f"><num>(f)</num><content><p>the asset is not one the disposal of which by the company would fall to be treated as a disposal in the course of activities forming an integral part of a trade carried on by the company.</p></content></level></subsection><subsection eId="section-92-2"><num>(2)</num><content><p>The amounts falling for any accounting period to be brought into account for the purposes of this Chapter in respect of a creditor relationship represented by an asset to which this section applies shall be confined to amounts relating to interest.</p></content></subsection><subsection eId="section-92-3"><num>(3)</num><content><p>Only an authorised accruals basis of accounting shall be used for ascertaining those amounts.</p></content></subsection><subsection eId="section-92-4"><num>(4)</num><content><p>Amounts shall be brought into account in computing the profits of the company for the purposes of corporation tax as if the <noteRef href="#m00058" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxation of Chargeable Gains Act 1992 had effect in relation to any asset to which this section applies as it has effect in relation to an asset that does not represent a loan relationship.</p></content></subsection><subsection eId="section-92-5"><num>(5)</num><intro><p>For the purposes of that Act the amount or value of the consideration for any disposal or acquisition of the asset shall be treated as adjusted so as to exclude so much of it as, on a just and reasonable apportionment, relates to any interest which—</p></intro><level class="para1" eId="section-92-5-a"><num>(a)</num><content><p>falls to be brought into account under subsections (2) and (3) above as accruing to any company at any time; and</p></content></level><level class="para1" eId="section-92-5-b"><num>(b)</num><content><p>in consequence of, or of the terms of, the disposal or acquisition, is not paid or payable to the company to which it is treated for the purposes of this Chapter as accruing.</p></content></level></subsection><subsection eId="section-92-6"><num>(6)</num><intro><p>In subsection (5) above the references to a disposal, in relation to an asset, are references to anything which—</p></intro><level class="para1" eId="section-92-6-a"><num>(a)</num><content><p>is a disposal of that asset (within the meaning of the Taxation of Chargeable Gains Act 1992); or</p></content></level><level class="para1" eId="section-92-6-b"><num>(b)</num><content><p>would be such a disposal but for section 127 or 116(10) of that Act (reorganisations etc.);</p></content></level><wrapUp><p>and the references to the acquisition of an asset shall be construed accordingly.</p></wrapUp></subsection></section><section eId="section-93"><num>93</num><heading>Relationships linked to the value of chargeable assets</heading><subsection eId="section-93-1"><num>(1)</num><content><p>This section applies in the case of any loan relationship of a company that is linked to the value of chargeable assets unless it is one the disposal of which by the company would fall to be treated as a disposal in the course of activities forming an integral part of a trade carried on by the company.</p></content></subsection><subsection eId="section-93-2"><num>(2)</num><content><p>The amounts falling for any accounting period to be brought into account for the purposes of this Chapter in respect of the relationship shall be confined to amounts relating to interest.</p></content></subsection><subsection eId="section-93-3"><num>(3)</num><content><p>Only an authorised accruals basis of accounting shall be used for ascertaining those amounts.</p></content></subsection><subsection eId="section-93-4"><num>(4)</num><content><p>Amounts shall be brought into account in computing the profits of the company for the purposes of corporation tax as if the <noteRef href="#m00059" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxation of Chargeable Gains Act 1992 had effect in relation to the asset representing the relationship as it has effect in relation to an asset that does not represent a loan relationship.</p></content></subsection><subsection eId="section-93-5"><num>(5)</num><intro><p>For the purposes of that Act the amount or value of the consideration for any disposal or acquisition of the asset shall be treated as adjusted so as to exclude so much of it as, on a just and reasonable apportionment, relates to any interest which—</p></intro><level class="para1" eId="section-93-5-a"><num>(a)</num><content><p>falls to be brought into account under subsections (2) and (3) above as accruing to any company at any time; and</p></content></level><level class="para1" eId="section-93-5-b"><num>(b)</num><content><p>in consequence of, or of the terms of, the disposal or acquisition, is not paid or payable to the company to which it is treated for the purposes of this Chapter as accruing.</p></content></level></subsection><subsection eId="section-93-6"><num>(6)</num><content><p>For the purposes of this section a loan relationship is linked to the value of chargeable assets if, in pursuance of any provision having effect for the purposes of that relationship, the amount that must be paid to discharge the money debt (whether on redemption of a security issued in relation to that debt or otherwise) is equal to the amount determined by applying a relevant percentage change in the value of chargeable assets to the amount falling for the purposes of this Chapter to be regarded as the amount of the original loan from which the money debt arises.</p></content></subsection><subsection eId="section-93-7"><num>(7)</num><content><p>In subsection (6) above the reference to a relevant percentage change in the value of chargeable assets is a reference to the amount of the percentage change (if any) over the relevant period in the value of chargeable assets of any particular description or in any index of the value of any such assets.</p></content></subsection><subsection eId="section-93-8"><num>(8)</num><intro><p>In subsection (7) above “the relevant period” means—</p></intro><level class="para1" eId="section-93-8-a"><num>(a)</num><content><p>the period between the time of the original loan and the discharge of the money debt; or</p></content></level><level class="para1" eId="section-93-8-b"><num>(b)</num><content><p>any other period in which almost all of that period is comprised and which differs from that period exclusively for purposes connected with giving effect to a valuation in relation to rights or liabilities under the loan relationship.</p></content></level></subsection><subsection eId="section-93-9"><num>(9)</num><intro><p>If—</p></intro><level class="para1" eId="section-93-9-a"><num>(a)</num><content><p>there is a provision which, in the case of any loan relationship, falls within subsection (6) above,</p></content></level><level class="para1" eId="section-93-9-b"><num>(b)</num><content><p>that provision is made subject to any other provision applying to the determination of the amount payable to discharge the money debt,</p></content></level><level class="para1" eId="section-93-9-c"><num>(c)</num><content><p>that other provision is to the effect only that the amount so payable must not be less than a specified percentage of the amount falling for the purposes of this Chapter to be regarded as the amount of the original loan, and</p></content></level><level class="para1" eId="section-93-9-d"><num>(d)</num><content><p>the specified percentage is not more than 10 per cent.,</p></content></level><wrapUp><p>that other provision shall be disregarded in determining for the purposes of this section whether the relationship is linked to the value of chargeable assets.</p></wrapUp></subsection><subsection eId="section-93-10"><num>(10)</num><content><p>For the purposes of this section an asset is a chargeable asset, in relation to a loan relationship of a company, if any gain accruing on the disposal of the asset by the company on or after 1st April 1996 would, on the assumptions specified in subsection (11) below, be a chargeable gain for the purposes of the <noteRef href="#m00060" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxation of Chargeable Gains Act 1992.</p></content></subsection><subsection eId="section-93-11"><num>(11)</num><intro><p>Those assumptions are—</p></intro><level class="para1" eId="section-93-11-a"><num>(a)</num><content><p>where it is not otherwise the case, that the asset is an asset of the company;</p></content></level><level class="para1" eId="section-93-11-b"><num>(b)</num><content><p>that the asset is not one the disposal of which by the company would fall to be treated for the purposes of corporation tax as a disposal in the course of a trade carried on by the company; and</p></content></level><level class="para1" eId="section-93-11-c"><num>(c)</num><content><p>that chargeable gains that might accrue under section 116(10) of that Act (postponed charges) are to be disregarded.</p></content></level></subsection><subsection eId="section-93-12"><num>(12)</num><intro><p>In subsection (5) above references to a disposal, in relation to an asset, are references to anything which—</p></intro><level class="para1" eId="section-93-12-a"><num>(a)</num><content><p>is a disposal of that asset (within the meaning of the Taxation of Chargeable Gains Act 1992); or</p></content></level><level class="para1" eId="section-93-12-b"><num>(b)</num><content><p>would be such a disposal but for section 127 or 116(10) of that Act (reorganisations etc.);</p></content></level><wrapUp><p>and the references to the acquisition of an asset shall be construed accordingly.</p></wrapUp></subsection><subsection eId="section-93-13"><num>(13)</num><intro><p>For the purposes of this section neither—</p></intro><level class="para1" eId="section-93-13-a"><num>(a)</num><content><p>the retail prices index, nor</p></content></level><level class="para1" eId="section-93-13-b"><num>(b)</num><content><p>any similar general index of prices published by the government of any territory or by the agent of any such government,</p></content></level><wrapUp><p>shall be taken to be an index of the value of chargeable assets.</p></wrapUp></subsection></section><section eId="section-94"><num>94</num><heading>Indexed gilt-edged securities</heading><subsection eId="section-94-1"><num>(1)</num><content><p>In the case of any loan relationship represented by an index-linked gilt-edged security, the adjustment for which this section provides shall be made in computing the credits and debits which fall, for any accounting period, to be brought into account for the purposes of this Chapter in respect of that relationship as non-trading credits or non-trading debits.</p></content></subsection><subsection eId="section-94-2"><num>(2)</num><intro><p>The adjustment shall be made wherever—</p></intro><level class="para1" eId="section-94-2-a"><num>(a)</num><content><p>the authorised accounting method applied as respects the index-linked gilt-edged security gives credits or debits by reference to the value of the security at two different times, and</p></content></level><level class="para1" eId="section-94-2-b"><num>(b)</num><content><p>there is any change in the retail prices index between those times.</p></content></level></subsection><subsection eId="section-94-3"><num>(3)</num><content><p>Subject to subsection (4) below, the adjustment is such an adjustment of the amount which would otherwise be taken for the purposes of that accounting method to be the value of the security at the earlier time (“the opening value”) as results in the amount in fact so taken being equal to the opening value increased or, as the case may be, reduced by the same percentage as the percentage increase or reduction in the retail prices index between the earlier and the later time.</p></content></subsection><subsection eId="section-94-4"><num>(4)</num><intro><p>The Treasury may, in relation to any description of index-linked gilt-edged securities, by order provide that—</p></intro><level class="para1" eId="section-94-4-a"><num>(a)</num><content><p>there are to be no adjustments under this section; or</p></content></level><level class="para1" eId="section-94-4-b"><num>(b)</num><content><p>that an adjustment specified in the order (instead of the adjustment specified in subsection (3) above) is to be the adjustment for which this section provides.</p></content></level></subsection><subsection eId="section-94-5"><num>(5)</num><intro><p>An order under subsection (4) above—</p></intro><level class="para1" eId="section-94-5-a"><num>(a)</num><content><p>shall not have effect in relation to any gilt-edged security issued before the making of the order; but</p></content></level><level class="para1" eId="section-94-5-b"><num>(b)</num><content><p>may make different provision for different descriptions of securities.</p></content></level></subsection><subsection eId="section-94-6"><num>(6)</num><intro><p>For the purposes of this section the percentage increase or reduction in the retail prices index between any two times shall be determined by reference to the difference between—</p></intro><level class="para1" eId="section-94-6-a"><num>(a)</num><content><p>that index for the month in which the earlier time falls; and</p></content></level><level class="para1" eId="section-94-6-b"><num>(b)</num><content><p>that index for the month in which the later time falls.</p></content></level></subsection><subsection eId="section-94-7"><num>(7)</num><content><p>In this section “index-linked gilt-edged securities” means any gilt-edged securities the amounts of the payments under which are determined wholly or partly by reference to the retail prices index.</p></content></subsection></section><section eId="section-95"><num>95</num><heading>Gilt strips</heading><subsection eId="section-95-1"><num>(1)</num><content><p>This section has effect for the purposes of the application of an authorised accruals basis of accounting as respects a loan relationship represented by a gilt-edged security or a strip of a gilt-edged security.</p></content></subsection><subsection eId="section-95-2"><num>(2)</num><intro><p>Where a gilt-edged security is exchanged by any person for strips of that security—</p></intro><level class="para1" eId="section-95-2-a"><num>(a)</num><content><p>the security shall be deemed to have been redeemed at the time of the exchange by the payment to that person of its market value; and</p></content></level><level class="para1" eId="section-95-2-b"><num>(b)</num><content><p>that person shall be deemed to have acquired each strip for the amount which bears the same proportion to that market value as is borne by the market value of the strip to the aggregate of the market values of all the strips received in exchange for the security.</p></content></level></subsection><subsection eId="section-95-3"><num>(3)</num><intro><p>Where strips of a gilt-edged security are consolidated into a single gilt-edged security by being exchanged by any person for that security—</p></intro><level class="para1" eId="section-95-3-a"><num>(a)</num><content><p>each of the strips shall be deemed to have been redeemed at the time of the exchange by the payment to that person of the amount equal to its market value; and</p></content></level><level class="para1" eId="section-95-3-b"><num>(b)</num><content><p>that person shall be deemed to have acquired the security received in the exchange for the amount equal to the aggregate of the market values of the strips given in exchange for the security.</p></content></level></subsection><subsection eId="section-95-4"><num>(4)</num><content><p>References in this section to the market value of a security given or received in exchange for another are references to its market value at the time of the exchange.</p></content></subsection><subsection eId="section-95-5"><num>(5)</num><content><p>Without prejudice to the generality of any power conferred by section 202 below, the Treasury may by regulations make provision for the purposes of this section as to the manner of determining the market value at any time of any gilt-edged security (including any strip).</p></content></subsection><subsection eId="section-95-6"><num>(6)</num><intro><p>Regulations under subsection (5) above may—</p></intro><level class="para1" eId="section-95-6-a"><num>(a)</num><content><p>make different provision for different cases; and</p></content></level><level class="para1" eId="section-95-6-b"><num>(b)</num><content><p>contain such incidental, supplemental, consequential and transitional provision as the Treasury may think fit.</p></content></level></subsection><subsection eId="section-95-7"><num>(7)</num><content><p>In this section “strip” means anything which, within the meaning of section 47 of the <noteRef href="#m00061" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1942, is a strip of a gilt-edged security.</p></content></subsection></section><section eId="section-96"><num>96</num><heading>Special rules for certain other gilts</heading><subsection eId="section-96-1"><num>(1)</num><intro><p>This section applies as respects any loan relationship of a company if—</p></intro><level class="para1" eId="section-96-1-a"><num>(a)</num><intro><p>it is represented by a security of any of the following descriptions—</p></intro><level class="para2" eId="section-96-1-a-i"><num>(i)</num><content><p>3½% Funding Stock 1999-2004; or</p></content></level><level class="para2" eId="section-96-1-a-ii"><num>(ii)</num><content><p>5½% Treasury Stock 2008-2012;</p></content></level><wrapUp><p>and</p></wrapUp></level><level class="para1" eId="section-96-1-b"><num>(b)</num><content><p>it is one to which the company is a party otherwise than in the course of activities that form an integral part of a trade carried on by the company.</p></content></level></subsection><subsection eId="section-96-2"><num>(2)</num><content><p>The amounts falling for any accounting period to be brought into account for the purposes of this Chapter in respect of a loan relationship to which this section applies shall be confined to amounts relating to interest.</p></content></subsection><subsection eId="section-96-3"><num>(3)</num><content><p>Only an authorised accruals basis of accounting shall be used for ascertaining those amounts.</p></content></subsection></section><section eId="section-97"><num>97</num><heading>Manufactured interest</heading><subsection eId="section-97-1"><num>(1)</num><intro><p>This section applies where—</p></intro><level class="para1" eId="section-97-1-a"><num>(a)</num><content><p>any amount (“manufactured interest”) is payable by or on behalf of, or to, any company under any contract or arrangements relating to the transfer of an asset representing a loan relationship; and</p></content></level><level class="para1" eId="section-97-1-b"><num>(b)</num><content><p>that amount is, or (when paid) will fall to be treated as, representative of interest under that relationship (“the real interest”).</p></content></level></subsection><subsection eId="section-97-2"><num>(2)</num><intro><p>In relation to that company the manufactured interest shall be treated for the purposes of this Chapter—</p></intro><level class="para1" eId="section-97-2-a"><num>(a)</num><content><p>as if it were interest under a loan relationship to which the company is a party; and</p></content></level><level class="para1" eId="section-97-2-b"><num>(b)</num><content><p>where that company is the company to which the manufactured interest is payable, as if that relationship were the one under which the real interest is payable.</p></content></level></subsection><subsection eId="section-97-3"><num>(3)</num><intro><p>Any question whether debits or credits falling to be brought into account in the case of any company by virtue of this section—</p></intro><level class="para1" eId="section-97-3-a"><num>(a)</num><content><p>are to be brought into account under section 82(2) above, or</p></content></level><level class="para1" eId="section-97-3-b"><num>(b)</num><content><p>are to be treated as non-trading debits or non-trading credits,</p></content></level><wrapUp><p>shall be determined according to the extent (if any) to which the manufactured interest is paid for the purposes of a trade carried on by the company or is received in the course of activities forming an integral part of such a trade.</p></wrapUp></subsection><subsection eId="section-97-4"><num>(4)</num><content><p>Where section 737A(5) of the Taxes Act 1988 (deemed manufactured payments) has effect in relation to a transaction relating to an asset representing a loan relationship so as, for the purposes of section 737 of, or Schedule 23A to, that Act, to deem there to have been a payment representative of interest under that relationship, this section shall apply as it would have applied if such a representative payment had in fact been made.</p></content></subsection><subsection eId="section-97-5"><num>(5)</num><content><p>This section does not apply where the manufactured interest is treated by virtue of paragraph 5(2)(c) or (4)(c) of Schedule 23A to the Taxes Act 1988 (manufactured interest passing through the market) as not being income of the person who receives it.</p></content></subsection></section><section eId="section-98"><num>98</num><heading>Collective investment schemes</heading><content><p>The provisions of this Chapter have effect subject to the provisions of Schedule 10 to this Act (which makes special provision in relation to certain collective investment schemes).</p></content></section><section eId="section-99"><num>99</num><heading>Insurance companies</heading><content><p>The preceding provisions of this Chapter have effect subject to Schedule 11 to this Act (which makes special provision in relation to certain insurance companies and in relation to corporate members of Lloyd's).</p></content></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-IV-chapter-II-crossheading-miscellaneous-other-provisions"><heading>Miscellaneous other provisions</heading><section eId="section-100"><num>100</num><heading>Interest on judgments, imputed interest, etc</heading><subsection eId="section-100-1"><num>(1)</num><intro><p>This Chapter shall have effect in accordance with subsection (2) below where—</p></intro><level class="para1" eId="section-100-1-a"><num>(a)</num><content><p>interest on a money debt is payable to or by any company;</p></content></level><level class="para1" eId="section-100-1-b"><num>(b)</num><content><p>that debt is one as respects which it stands, or has stood, in the position of a creditor or debtor; and</p></content></level><level class="para1" eId="section-100-1-c"><num>(c)</num><content><p>that debt did not arise from a loan relationship.</p></content></level></subsection><subsection eId="section-100-2"><num>(2)</num><intro><p>It shall be assumed for the purposes of this Chapter—</p></intro><level class="para1" eId="section-100-2-a"><num>(a)</num><content><p>that the interest is interest payable under a loan relationship to which the company is a party; but</p></content></level><level class="para1" eId="section-100-2-b"><num>(b)</num><content><p>that the only credits or debits to be brought into account for those purposes in respect of that relationship are those relating to the interest.</p></content></level></subsection><subsection eId="section-100-3"><num>(3)</num><intro><p>References in this section to interest payable on a money debt include references to any amount which, in pursuance of sections 770 to 772 of the Taxes Act 1988 (transactions at an undervalue or overvalue), as those sections have effect by virtue of section 773(4) of that Act, falls to be treated in pursuance of those sections as—</p></intro><level class="para1" eId="section-100-3-a"><num>(a)</num><content><p>interest on a money debt; or</p></content></level><level class="para1" eId="section-100-3-b"><num>(b)</num><content><p>interest on an amount which is treated as a money debt.</p></content></level></subsection><subsection eId="section-100-4"><num>(4)</num><intro><p>Any question whether debits or credits falling to be brought into account in accordance with this section in relation to any company—</p></intro><level class="para1" eId="section-100-4-a"><num>(a)</num><content><p>are to be brought into account under section 82(2) above, or</p></content></level><level class="para1" eId="section-100-4-b"><num>(b)</num><content><p>are to be treated as non-trading debits or non-trading credits,</p></content></level><wrapUp><p>shall be determined according to the extent (if any) to which the interest in question is paid for the purposes of a trade carried on by the company or is received in the course of activities forming an integral part of such a trade, or (in the case of deemed interest) would be deemed to be so paid or received.</p></wrapUp></subsection><subsection eId="section-100-5"><num>(5)</num><content><p>This section has effect subject to the provisions of Schedules 9 and 11 to this Act.</p></content></subsection></section><section eId="section-101"><num>101</num><heading>Financial instruments</heading><subsection eId="section-101-1"><num>(1)</num><intro><p>Chapter II of Part IV of the <noteRef href="#m00062" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1994 (provisions relating to certain financial instruments) shall not apply to any profit or loss which, in accordance with that Chapter, accrues to a company for any accounting period on a qualifying contract by virtue of which the company is a party to any loan relationship if—</p></intro><level class="para1" eId="section-101-1-a"><num>(a)</num><content><p>an amount representing that profit or loss, or</p></content></level><level class="para1" eId="section-101-1-b"><num>(b)</num><content><p>an amount representing the profit or loss accruing to that company on that contract,</p></content></level><wrapUp><p>is brought into account for that period for the purposes of this Chapter.</p></wrapUp></subsection><subsection eId="section-101-2"><num>(2)</num><content><p><mod>After section 147 of that Act (qualifying contracts) there shall be inserted the following section—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>147A</num><heading>Debt contracts and options to be qualifying contracts</heading><subsection><num>(1)</num><content><p>For the purposes of this Chapter a debt contract or option is a qualifying contract as regards a qualifying company if the company becomes entitled to rights, or subject to duties, under the contract or option at any time on or after 1st April 1996.</p></content></subsection><subsection><num>(2)</num><content><p>For the purposes of this Chapter a qualifying company which is entitled to rights, or subject to duties, under a debt contract or option both immediately before and on 1st April 1996 shall be deemed to have become entitled or subject to those rights or duties on that date.</p></content></subsection><subsection><num>(3)</num><content><p>This section has effect subject to paragraph 25 of Schedule 15 to the Finance Act 1996 (transitional provisions).</p></content></subsection></section></quotedStructure></mod></p></content></subsection><subsection eId="section-101-3"><num>(3)</num><content><p>After section 150 of that Act (qualifying contracts) there shall be inserted the section set out in Schedule 12 to this Act (which defines debt contracts and options by reference to contracts and options conferring rights and duties to participate in loan relationships).</p></content></subsection><subsection eId="section-101-4"><num>(4)</num><content><p>In section 151 of that Act (provisions that may be included in contracts and options), for the words “or a currency contract or option,”, in each place where they occur, there shall be substituted “a currency contract or option or a debt contract or option”.</p></content></subsection><subsection eId="section-101-5"><num>(5)</num><content><p>In section 152(1) of that Act (disregard of provisions for relatively small payments in contracts and options), after “150” there shall be inserted “or 150A”.</p></content></subsection><subsection eId="section-101-6"><num>(6)</num><content><p><mod>In section 153(1) of that Act (qualifying payments), for the word “and” at the end of paragraph (c) there shall be substituted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(ca)</num><content><p>in relation to a qualifying contract which is a debt contract, a payment falling within section 150A(5) or (6) above; and</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection></section><section eId="section-102"><num>102</num><heading>Discounted securities: income tax provisions</heading><content><p>Schedule 13 to this Act (which, in connection with the provisions of this Chapter relating to corporation tax, makes provision for income tax purposes about discounted securities) shall have effect.</p></content></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-IV-chapter-II-crossheading-supplemental"><heading>Supplemental</heading><section eId="section-103"><num>103</num><heading>Interpretation of Chapter</heading><subsection eId="section-103-1"><num>(1)</num><intro><p>In this Chapter—</p></intro><hcontainer name="definition"><content><p>“authorised accounting method”, “authorised accruals basis of accounting” and “authorised mark to market basis of accounting” shall be construed in accordance with section 85 above;</p></content></hcontainer><hcontainer name="definition"><content><p>“creditor relationship”, in relation to a company, means any loan relationship of that company in the case of which it stands in the position of a creditor as respects the debt in question;</p></content></hcontainer><hcontainer name="definition"><content><p>“debt” includes a debt the amount of which falls to be ascertained by reference to matters which vary from time to time;</p></content></hcontainer><hcontainer name="definition"><content><p>“debtor relationship”, in relation to a company, means any loan relationship of that company in the case of which it stands in the position of a debtor as respects the debt in question;</p></content></hcontainer><hcontainer name="definition"><intro><p>“gilt-edged securities” means any securities which—</p></intro><level class="para1"><num>(a)</num><content><p>are gilt-edged securities for the purposes of the <noteRef href="#m00063" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxation of Chargeable Gains Act 1992; or</p></content></level><level class="para1"><num>(b)</num><content><p>will be such securities on the making of any order under paragraph 1 of Schedule 9 to that Act the making of which is anticipated in the prospectus under which they are issued;</p></content></level></hcontainer><hcontainer name="definition"><content><p>“an independent person” means a knowledgeable and willing party dealing at arm’s length;</p></content></hcontainer><hcontainer name="definition"><content><p>“international organisation” means an organisation of which two or more sovereign powers, or the governments of two or more sovereign powers, are members;</p></content></hcontainer><hcontainer name="definition"><content><p>“loan” includes any advance of money, and cognate expressions shall be construed accordingly;</p></content></hcontainer><hcontainer name="definition"><content><p>“money” shall be construed in accordance with section 81(6) above and subsection (5) below;</p></content></hcontainer><hcontainer name="definition"><content><p>“money debt” shall be construed in accordance with section 81(2) above;</p></content></hcontainer><hcontainer name="definition"><content><p>“non-trading credit” and “non-trading debit” shall be construed in accordance with section 82(3) above;</p></content></hcontainer><hcontainer name="definition"><content><p>“retail prices index” has the same meaning as it has, by virtue of section 833(2) of the Taxes Act 1988, in the Income Tax Acts;</p></content></hcontainer><hcontainer name="definition"><content><p>“share”, in relation to a company, means any share in the company under which an entitlement to receive distributions may arise.</p></content></hcontainer></subsection><subsection eId="section-103-2"><num>(2)</num><content><p>For the purposes of this Chapter a company shall be taken to be a party to a creditor relationship for the purposes of a trade carried on by that company only if it is a party to that relationship in the course of activities forming an integral part of that trade.</p></content></subsection><subsection eId="section-103-3"><num>(3)</num><intro><p>For the purposes of this Chapter, and of so much of any other enactment as contains provision by reference to which amounts fall to be brought into account for the purposes of this Chapter, activities carried on by a company in the course of—</p></intro><level class="para1" eId="section-103-3-a"><num>(a)</num><content><p>any mutual trading, or</p></content></level><level class="para1" eId="section-103-3-b"><num>(b)</num><content><p>any mutual insurance or other mutual business which is not life assurance business (within the meaning of Chapter I of Part XII of the Taxes Act 1988),</p></content></level><wrapUp><p>shall be deemed not to constitute the whole or any part of a trade.</p></wrapUp></subsection><subsection eId="section-103-4"><num>(4)</num><content><p>If, in any proceedings, any question arises whether a person is an international organisation for the purposes of any provision of this Chapter, a certificate issued by or under the authority of the Secretary of State stating any fact relevant to that question shall be conclusive evidence of that fact.</p></content></subsection><subsection eId="section-103-5"><num>(5)</num><content><p>For the purposes of this Chapter the European currency unit (as for the time being defined in Council Regulation No. 3180/78/EEC or in any Community instrument replacing it) shall be taken to be a currency other than sterling.</p></content></subsection></section><section eId="section-104"><num>104</num><heading>Minor and consequential amendments</heading><content><p>Schedule 14 to this Act (which, for the purposes of both corporation tax and income tax, makes certain minor and consequential amendments in connection with the provisions of this Chapter) shall have effect.</p></content></section><section eId="section-105"><num>105</num><heading>Commencement and transitional provisions</heading><subsection eId="section-105-1"><num>(1)</num><intro><p>Subject to Schedule 15 to this Act, this Chapter has effect—</p></intro><level class="para1" eId="section-105-1-a"><num>(a)</num><content><p>for the purposes of corporation tax, in relation to accounting periods ending after 31st March 1996; and</p></content></level><level class="para1" eId="section-105-1-b"><num>(b)</num><content><p>so far as it makes provision for the purposes of income tax, in relation to the year 1996-97 and subsequent years of assessment.</p></content></level></subsection><subsection eId="section-105-2"><num>(2)</num><content><p>Schedule 15 to this Act (which contains transitional provisions and savings in connection with the coming into force of this Chapter) shall have effect.</p></content></subsection></section></hcontainer></chapter><chapter eId="part-IV-chapter-III"><num>Chapter III</num><heading>Provisions relating to the Schedule E charge</heading><section eId="section-106"><num>106</num><heading>Living accommodation provided for employees</heading><subsection eId="section-106-1"><num>(1)</num><content><p>In subsection (1) of section 145 of the Taxes Act 1988 (living accommodation provided for employees), the words “and is not otherwise made the subject of any charge to him by way of income tax” shall be omitted.</p></content></subsection><subsection eId="section-106-2"><num>(2)</num><content><p><mod>After section 146 of that Act there shall be inserted the following section—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>146A</num><heading>Priority of rules applying to living accommodation</heading><subsection><num>(1)</num><content><p>This section applies where, within the meaning of section 145, living accommodation is provided in any period for any person by reason of his employment.</p></content></subsection><subsection><num>(2)</num><content><p>The question whether the employee is to be treated under section 145 or 146 as in receipt of emoluments in respect of the provision of the accommodation shall be determined before any other question whether there is an amount falling to be treated in respect of the provision of that accommodation as emoluments.</p></content></subsection><subsection><num>(3)</num><content><p>Tax under Schedule E in respect of the provision of the accommodation shall be chargeable on the employee otherwise than in pursuance of sections 145 and 146 to the extent only that the amount on which it is chargeable by virtue of those sections is exceeded by the amount on which it would be chargeable apart from those sections.</p></content></subsection></section></quotedStructure></mod></p></content></subsection><subsection eId="section-106-3"><num>(3)</num><content><p>This section applies for the year 1996-97 and subsequent years of assessment.</p></content></subsection></section><section eId="section-107"><num>107</num><heading>Beneficial loans</heading><subsection eId="section-107-1"><num>(1)</num><content><p><mod>For section 160(1B) of the Taxes Act 1988 (aggregation of loans) there shall be substituted the following subsections—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1B)</num><intro><p>Where, in relation to any year—</p></intro><level class="para1"><num>(a)</num><content><p>there are loans between the same lender and borrower which are aggregable with each other,</p></content></level><level class="para1"><num>(b)</num><content><p>the lender elects, by notice given to the inspector, for aggregation to apply in the case of that borrower, and</p></content></level><level class="para1"><num>(c)</num><content><p>that notice is given before the end of the period of 92 days after the end of that year,</p></content></level><wrapUp><p>all the loans between that lender and that borrower which are aggregable with each other shall be treated for the purposes of subsections (1) and (1A) above and Part II of Schedule 7 as a single loan.</p></wrapUp></subsection><subsection><num>(1BA)</num><intro><p>For the purposes of subsection (1B) above loans are aggregable with each other for any year where—</p></intro><level class="para1"><num>(a)</num><content><p>in the case of each of the loans, there is a time in that year, while the loan is outstanding as to any amount, when the lender is a close company and the borrower a director of that company;</p></content></level><level class="para1"><num>(b)</num><content><p>the benefit of each of the loans is obtained by reason of the borrower’s employment;</p></content></level><level class="para1"><num>(c)</num><content><p>in the case of each of the loans, there is no time in that year when a rate of interest is applied to the loan which is equal to or more than whatever is the official rate at that time;</p></content></level><level class="para1"><num>(d)</num><content><p>the loans are loans made in the same currency; and</p></content></level><level class="para1"><num>(e)</num><content><p>none of the loans is a qualifying loan.</p></content></level></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-107-2"><num>(2)</num><intro><p>In paragraph 5 of Schedule 7 to that Act (alternative method of calculation)—</p></intro><level class="para1" eId="section-107-2-a"><num>(a)</num><content><p>in sub-paragraph (1)(a), for the words from “for the purpose” to “appeal)” there shall be substituted “at a time allowed by sub-paragraph (2) below”; and</p></content></level><level class="para1" eId="section-107-2-b"><num>(b)</num><content><p>in sub-paragraph (1)(b), for “within the time allowed by sub-paragraph (2) below” there shall be substituted “at such a time”.</p></content></level></subsection><subsection eId="section-107-3"><num>(3)</num><content><p><mod>For sub-paragraph (2) of that paragraph there shall be substituted the following sub-paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><subparagraph><num>(2)</num><content><p>A notice containing a requirement or election for the purposes of sub-paragraph (1) above is allowed to be given at any time before the end of the period of 12 months beginning with the 31st January next following the relevant year.</p></content></subparagraph></quotedStructure></mod></p></content></subsection><subsection eId="section-107-4"><num>(4)</num><content><p>This section has effect for the year 1996-97 and subsequent years of assessment and applies to loans whenever made.</p></content></subsection></section><section eId="section-108"><num>108</num><heading>Incidental benefits for holders of certain offices etc</heading><subsection eId="section-108-1"><num>(1)</num><content><p><mod>After section 200 of the Taxes Act 1988 (expenses of Members of Parliament) there shall be inserted the following section—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>200AA</num><heading>Incidental benefits for holders of certain offices etc</heading><subsection><num>(1)</num><intro><p>A person holding any of the offices mentioned in subsection (2) below shall not be charged to tax under Schedule E in respect of—</p></intro><level class="para1"><num>(a)</num><content><p>any transport or subsistence provided or made available by or on behalf of the Crown to the office-holder or any member of his family or household; or</p></content></level><level class="para1"><num>(b)</num><content><p>the payment or reimbursement by or on behalf of the Crown of any expenses incurred in connection with the provision of transport or subsistence to the office-holder or any member of his family or household.</p></content></level></subsection><subsection><num>(2)</num><intro><p>Those offices are—</p></intro><level class="para1"><num>(a)</num><content><p>any office in Her Majesty’s Government in the United Kingdom, and</p></content></level><level class="para1"><num>(b)</num><content><p>any other office which is one of the offices and positions in respect of which salaries are payable under section 1 of the <noteRef href="#m00064" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Ministerial and other Salaries Act 1975 (whether or not the person holding it is a person to whom a salary is paid or payable under the Act).</p></content></level></subsection><subsection><num>(3)</num><content><p>Nothing in this section shall prevent a person from being chargeable to tax under Schedule E in respect of the benefit of a mobile telephone (within the meaning of section 159A).</p></content></subsection><subsection><num>(4)</num><content><p>References in this section to a member of the family or household of an office-holder shall be construed in accordance with section 168(4).</p></content></subsection><subsection><num>(5)</num><intro><p>References in this section to the provision of transport to any person include references to the following—</p></intro><level class="para1"><num>(a)</num><content><p>the provision or making available to that person of any car (whether with or without a driver);</p></content></level><level class="para1"><num>(b)</num><content><p>the provision of any fuel for a car provided or made available to that person;</p></content></level><level class="para1"><num>(c)</num><content><p>the provision of any other benefit in connection with a car provided or made available to that person.</p></content></level></subsection><subsection><num>(6)</num><intro><p>In this section—</p></intro><hcontainer name="definition"><content><p>“car” means any mechanically propelled road vehicle; and</p></content></hcontainer><hcontainer name="definition"><content><p>“subsistence” includes food and drink and temporary living accommodation.</p></content></hcontainer></subsection></section></quotedStructure></mod></p></content></subsection><subsection eId="section-108-2"><num>(2)</num><content><p>This section has effect for the year 1996–97 and subsequent years of assessment.</p></content></subsection></section><section eId="section-109"><num>109</num><heading>Charitable donations: payroll deduction schemes</heading><subsection eId="section-109-1"><num>(1)</num><content><p>In section 202(7) of the Taxes Act 1988 (which limits to £900 the deductions attracting relief), for “£900” there shall be substituted “£1,200”.</p></content></subsection><subsection eId="section-109-2"><num>(2)</num><content><p>This section has effect for the year 1996-97 and subsequent years of assessment.</p></content></subsection></section><section eId="section-110"><num>110</num><heading>PAYE settlement agreements</heading><content><p><mod>After section 206 of the Taxes Act 1988 there shall be inserted the following section—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>206A</num><heading>PAYE settlement agreements</heading><subsection><num>(1)</num><content><p>PAYE regulations may make provision falling within subsection (2) below about the sums which, as sums in respect of income tax under Schedule E on emoluments of a person’s employees, are to be the sums for which the employer is to be accountable to the Board from time to time.</p></content></subsection><subsection><num>(2)</num><content><p>That provision is provision under which the accountability of the employer, and the sums for which he is to be accountable, are to be determined, to such extent as may be prescribed, in accordance with an agreement between the Board and the employer (“a PAYE settlement agreement”), instead of under PAYE regulations made otherwise than by virtue of this section.</p></content></subsection><subsection><num>(3)</num><intro><p>PAYE regulations may provide for a PAYE settlement agreement to allow sums for which an employer is to be accountable to the Board in accordance with the agreement—</p></intro><level class="para1"><num>(a)</num><content><p>to be computed, in cases where there are two or more persons holding employments to which the agreement relates, by reference to a number of those persons all taken together;</p></content></level><level class="para1"><num>(b)</num><intro><p>to include sums representing income tax on an estimated amount taken, in accordance with the agreement, to be the aggregate of the cash equivalents and other amounts chargeable to tax in respect of—</p></intro><level class="para2"><num>(i)</num><content><p>taxable benefits provided or made available by reason of the employments to which the agreement relates; and</p></content></level><level class="para2"><num>(ii)</num><content><p>expenses paid to the persons holding those employments;</p></content></level><wrapUp><p>and</p></wrapUp></level><level class="para1"><num>(c)</num><content><p>to be computed in a manner under which the sums for which the employer is accountable do not necessarily represent an amount of income tax payable in respect of income which (apart from the regulations) is assessable under Schedule E on persons holding employments to which the agreement relates.</p></content></level></subsection><subsection><num>(4)</num><intro><p>PAYE regulations may provide—</p></intro><level class="para1"><num>(a)</num><content><p>for an employer who is accountable to the Board under a PAYE settlement agreement for any sum to be so accountable without that sum, or any other sum, being treated for any prescribed purpose as tax deducted from emoluments;</p></content></level><level class="para1"><num>(b)</num><content><p>for an employee to have no right to be treated as having paid tax in respect of sums for which his employer is accountable under such an agreement;</p></content></level><level class="para1"><num>(c)</num><intro><p>for an employee to be treated, except—</p></intro><level class="para2"><num>(i)</num><content><p>for the purposes of the obligations imposed on his employer by such an agreement, and</p></content></level><level class="para2"><num>(ii)</num><content><p>to such further extent as may be prescribed,</p></content></level><wrapUp><p>as relieved from any prescribed obligations of his under the Income Tax Acts in respect of emoluments from an employment to which the agreement relates; and</p></wrapUp></level><level class="para1"><num>(d)</num><content><p>for such emoluments to be treated as excluded from the employee’s income for such further purposes of the Income Tax Acts, and to such extent, as may be prescribed.</p></content></level></subsection><subsection><num>(5)</num><content><p>For the purposes of any PAYE regulations made by virtue of this section it shall be immaterial that any agreement to which they relate was entered into before the coming into force of the regulations.</p></content></subsection><subsection><num>(6)</num><intro><p>PAYE regulations made by virtue of this section may—</p></intro><level class="para1"><num>(a)</num><content><p>make different provision for different cases; and</p></content></level><level class="para1"><num>(b)</num><content><p>contain such incidental, supplemental, consequential and transitional provision as the Board may think fit.</p></content></level></subsection><subsection><num>(7)</num><intro><p>Without prejudice to the generality of subsection (6) above, the transitional provision that may be made by virtue of that subsection includes transitional provision for any year of assessment which—</p></intro><level class="para1"><num>(a)</num><content><p>for the purposes of the regulations, treats sums accounted for in that year before the coming into force of the regulations as accounted for in accordance with an agreement as respects which the regulations have effect after they come into force; and</p></content></level><level class="para1"><num>(b)</num><content><p>provides, by reference to any provision made by virtue of paragraph (a) above, for income arising in that year before the coming into force of the regulations to be treated as income in relation to which modifications of the Income Tax Acts contained in the regulations apply.</p></content></level></subsection><subsection><num>(8)</num><content><p>Without prejudice to the generality of subsection (6) above, any power of the Board to make PAYE regulations with respect to sums falling to be accounted for under such regulations shall include power to make the corresponding provision with respect to sums falling, by virtue of this section, to be accounted for in accordance with a PAYE settlement agreement.</p></content></subsection><subsection><num>(9)</num><intro><p>In this section—</p></intro><hcontainer name="definition"><content><p>“employment” means any office or employment the emoluments from which are (or, apart from any regulations made by virtue of this section, would be) assessable to tax under Schedule E, and cognate expressions shall be construed accordingly;</p></content></hcontainer><hcontainer name="definition"><content><p>“PAYE regulations” means regulations under section 203;</p></content></hcontainer><hcontainer name="definition"><content><p>“prescribed” means prescribed by PAYE regulations;</p></content></hcontainer><hcontainer name="definition"><content><p>“taxable benefit”, in relation to an employee, means any benefit provided or made available, otherwise than in the form of a payment of money, to the employee or to a person who is, for the purposes of Chapter II of this Part, a member of his family or household;</p></content></hcontainer><wrapUp><p>and references in this section to a time before the coming into force of any regulations include references to a time before the commencement of section 110 of the Finance Act 1996 (by virtue of which this section was inserted in this Act).</p></wrapUp></subsection></section></quotedStructure></mod></p></content></section></chapter><chapter eId="part-IV-chapter-IV"><num>Chapter IV</num><heading>Share Options, Profit Sharing and Employee Share Ownership</heading><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-IV-chapter-IV-crossheading-share-options"><heading>Share options</heading><section eId="section-111"><num>111</num><heading>Amount or value of consideration for option</heading><subsection eId="section-111-1"><num>(1)</num><content><p>Section 149A of the <noteRef href="#m00065" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxation of Chargeable Gains Act 1992 (consideration for grant of option under approved share option schemes not to be deemed to be equal to market value of option) shall be amended as follows.</p></content></subsection><subsection eId="section-111-2"><num>(2)</num><content><p>In subsection (1)(b) (restriction to approved share option schemes) for “as mentioned in section 185(1) of the Taxes Act (approved share option schemes)” there shall be substituted “by an individual by reason of his office or employment as a director or employee of that or any other body corporate”.</p></content></subsection><subsection eId="section-111-3"><num>(3)</num><content><p>In subsection (2) (grantor to be treated as if the amount or value of the consideration was its actual amount or value) for “The grantor of the option” there shall be substituted “Both the grantor of the option and the person to whom the option is granted”.</p></content></subsection><subsection eId="section-111-4"><num>(4)</num><content><p>Subsection (4) (section not to affect treatment under that Act of person to whom option granted) shall cease to have effect.</p></content></subsection><subsection eId="section-111-5"><num>(5)</num><content><p>For the side-note to that section there shall be substituted “Share option schemes.”</p></content></subsection><subsection eId="section-111-6"><num>(6)</num><content><p>This section has effect in relation to any right to acquire shares in a body corporate obtained on or after 28th November 1995 by an individual by reason of his office or employment as a director or employee of a body corporate.</p></content></subsection></section><section eId="section-112"><num>112</num><heading>Release and replacement</heading><subsection eId="section-112-1"><num>(1)</num><content><p><mod>After section 237 of the <noteRef href="#m00066" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxation of Chargeable Gains Act 1992 there shall be inserted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>237A</num><heading>Share option schemes: release and replacement of options</heading><subsection><num>(1)</num><content><p>This section applies in any case where a right to acquire shares in a body corporate (“the old right”) which was obtained by an individual by reason of his office or employment as a director or employee of that or any other body corporate is released in whole or in part for a consideration which consists of or includes the grant to that individual of another right (“the new right”) to acquire shares in that or any other body corporate.</p></content></subsection><subsection><num>(2)</num><intro><p>As respects the person to whom the new right is granted—</p></intro><level class="para1"><num>(a)</num><content><p>without prejudice to subsection (1) above, the new right shall not be regarded for the purposes of capital gains tax as consideration for the release of the old right;</p></content></level><level class="para1"><num>(b)</num><content><p>the amount or value of the consideration given by him or on his behalf for the acquisition of the new right shall be taken for the purposes of section 38(1) to be the amount or value of the consideration given by him or on his behalf for the old right; and</p></content></level><level class="para1"><num>(c)</num><content><p>any consideration paid for the acquisition of the new right shall be taken to be expenditure falling within section 38(1)(b).</p></content></level></subsection><subsection><num>(3)</num><content><p>As respects the grantor of the new right, in determining for the purposes of this Act the amount or value of the consideration received for the new right, the release of the old right shall be disregarded.</p></content></subsection></section></quotedStructure></mod></p></content></subsection><subsection eId="section-112-2"><num>(2)</num><content><p>Section 238(4) of that Act (which provides that the release of an option under an approved share option scheme in exchange for another option, in connection with a company take-over, is not to involve a disposal, and which is superseded by subsection (1) above) shall cease to have effect.</p></content></subsection><subsection eId="section-112-3"><num>(3)</num><content><p>This section has effect in relation to transactions effected on or after 28th November 1995.</p></content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-IV-chapter-IV-crossheading-savingsrelated-share-option-schemes"><heading>Savings-related share option schemes</heading><section eId="section-113"><num>113</num><heading>Exercise of rights by employees of non-participating companies</heading><subsection eId="section-113-1"><num>(1)</num><content><p><mod>In paragraph 21 of Schedule 9 to the Taxes Act 1988 (provisions which an approved savings-related share option scheme may make with respect to the exercise of rights under the scheme) in sub-paragraph (1), the word “and” immediately preceding paragraph (e) shall be omitted and after that paragraph there shall be inserted <quotedText startQuote="“">and</quotedText><quotedStructure endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><level class="para1"><num>(f)</num><intro><p>if, at the bonus date, a person who has obtained rights under the scheme holds an office or employment in a company which is not a participating company but which is—</p></intro><level class="para2"><num>(i)</num><content><p>an associated company of the grantor, or</p></content></level><level class="para2"><num>(ii)</num><content><p>a company of which the grantor has control,</p></content></level><wrapUp><p>those rights may be exercised within six months of that date.</p></wrapUp></level></quotedStructure></mod></p></content></subsection><subsection eId="section-113-2"><num>(2)</num><content><p><mod>After sub-paragraph (3) of that paragraph there shall be inserted—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><subparagraph><num>(4)</num><content><p>Where a scheme approved before the date of the passing of the Finance Act 1996 is altered before 5th May 1998 so as to include such a provision as is specified in sub-paragraph (1)(f) above, the scheme may apply the provision to rights obtained under the scheme before the alteration takes effect, whether the bonus date in relation to the rights occurred before or after the passing of that Act; and where the provision is applied to such rights by virtue of this sub-paragraph, its application to such rights shall not itself be regarded as the acquisition of a right for the purposes of this Schedule.</p><p>This sub-paragraph has effect subject to paragraph 4 above.</p></content></subparagraph></quotedStructure></mod></p></content></subsection><subsection eId="section-113-3"><num>(3)</num><content><p>In paragraph 26(3) of that Schedule (only directors or employees of grantor or participating company to be eligible to participate, except as provided by paragraph 19 or pursuant to such a provision as is referred to in paragraph 21(1)(e)) after “21(1)(e)” there shall be inserted “or (f)”.</p></content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-IV-chapter-IV-crossheading-other-share-option-schemes"><heading>Other share option schemes</heading><section eId="section-114"><num>114</num><heading>Requirements to be satisfied by approved schemes</heading><subsection eId="section-114-1"><num>(1)</num><content><p>Part IV of Schedule 9 to the Taxes Act 1988 (requirements applicable to approved share option schemes which are not savings-related) shall be amended in accordance with subsections (2) and (3) below.</p></content></subsection><subsection eId="section-114-2"><num>(2)</num><intro><p>In paragraph 28 (scheme must impose limit on aggregate market value of shares which may be acquired in pursuance of rights obtained under the scheme or certain related schemes)—</p></intro><level class="para1" eId="section-114-2-a"><num>(a)</num><content><p>in sub-paragraph (1) (aggregate market value of shares not to exceed the appropriate limit) for “the appropriate limit” there shall be substituted “£30,000”; and</p></content></level><level class="para1" eId="section-114-2-b"><num>(b)</num><content><p>sub-paragraphs (2) and (4) (meaning of the appropriate limit and, for the purposes of that definition, the relevant emoluments) shall cease to have effect.</p></content></level></subsection><subsection eId="section-114-3"><num>(3)</num><content><p><mod>In paragraph 29 (price at which shares may be acquired to be stated and to be not manifestly less than the market value, or, in certain circumstances, 85 per cent. of the market value, of shares of the same class) for sub-paragraphs (1) to (6) there shall be substituted—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><subparagraph><num>(1)</num><intro><p>The price at which scheme shares may be acquired by the exercise of a right obtained under the scheme—</p></intro><level class="para1"><num>(a)</num><content><p>must be stated at the time the right is obtained, and</p></content></level><level class="para1"><num>(b)</num><content><p>must not be manifestly less than the market value of shares of the same class at that time or, if the Board and the grantor agree in writing, at such earlier time or times as may be provided in the agreement.</p></content></level></subparagraph></quotedStructure></mod></p></content></subsection><subsection eId="section-114-4"><num>(4)</num><content><p>Section 185 of the Taxes Act 1988 (approved share option schemes) shall be amended in accordance with subsections (5) to (7) below.</p></content></subsection><subsection eId="section-114-5"><num>(5)</num><content><p>In subsection (2), for “Subject to subsections (6) to (6B) below” there shall be substituted “Subject to subsection (6) below”.</p></content></subsection><subsection eId="section-114-6"><num>(6)</num><content><p><mod>For subsections (6) to (6B) there shall be substituted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(6)</num><intro><p>Where, in the case of a right obtained by a person under a scheme which is not a savings-related share option scheme, the aggregate of—</p></intro><level class="para1"><num>(a)</num><content><p>the amount or value of any consideration given by him for obtaining the right, and</p></content></level><level class="para1"><num>(b)</num><content><p>the price at which he may acquire the shares by exercising the right,</p></content></level><wrapUp><p>is less than the market value, at the time he obtains the right, of the same quantity of issued shares of the same class, he shall be chargeable to tax under Schedule E for the year of assessment in which he obtains the right on the amount of the difference; and the amount so chargeable shall be treated as earned income, whether or not it would otherwise fall to be so treated.</p></wrapUp></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-114-7"><num>(7)</num><content><p>In subsections (7) and (8) for “(6A)” there shall be substituted “(6)”.</p></content></subsection><subsection eId="section-114-8"><num>(8)</num><content><p><mod>In section 120 of the <noteRef href="#m00067" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxation of Chargeable Gains Act 1992 (increase in expenditure by reference to tax charged in relation to shares etc) in subsection (6) (which defines the applicable provision) for paragraph (b) (which refers to subsection (6A) of section 185 of the Taxes Act 1988) there shall be substituted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(b)</num><content><p>subsection (6A) of that section (as that subsection has effect in relation to rights obtained before the day on which the Finance Act 1996 was passed), or</p></content></level><level class="para1"><num>(c)</num><content><p>subsection (6) of that section (as that subsection has effect in relation to rights obtained on or after that day).</p></content></level></quotedStructure></mod></p></content></subsection><subsection eId="section-114-9"><num>(9)</num><content><p>Schedule 16 to this Act, which makes provision with respect to share option schemes approved before the day on which this Act is passed, shall have effect.</p></content></subsection><subsection eId="section-114-10"><num>(10)</num><content><p>Subsections (3) to (7) above have effect in relation to rights obtained on or after the day on which this Act is passed.</p></content></subsection></section><section eId="section-115"><num>115</num><heading>Transitional provisions</heading><subsection eId="section-115-1"><num>(1)</num><intro><p>If, during the period—</p></intro><level class="para1" eId="section-115-1-a"><num>(a)</num><content><p>beginning with 17th July 1995, and</p></content></level><level class="para1" eId="section-115-1-b"><num>(b)</num><content><p>ending with the day preceding the passing of this Act,</p></content></level><wrapUp><p>any rights have been obtained by a person under an approved share option scheme in circumstances falling within subsection (2) below, the rights shall be treated for the purposes of sections 185 to 187 of, and Schedule 9 to, the Taxes Act 1988 as being rights obtained otherwise than in accordance with the provisions of an approved share option scheme.</p></wrapUp></subsection><subsection eId="section-115-2"><num>(2)</num><content><p>The circumstances mentioned in subsection (1) above are circumstances such that, on the assumptions in subsection (3) below, there would, by virtue of paragraph 28 or 29 of Schedule 9 to the Taxes Act 1988 (limit on what may be obtained and requirements with respect to price), have been, with respect to the operation of the scheme, a contravention of any of the relevant requirements or of the scheme itself.</p></content></subsection><subsection eId="section-115-3"><num>(3)</num><intro><p>The assumptions mentioned in subsection (2) above are—</p></intro><level class="para1" eId="section-115-3-a"><num>(a)</num><content><p>that the amendments made by subsection (2) of section 114 above had effect at all times on and after 17th July 1995;</p></content></level><level class="para1" eId="section-115-3-b"><num>(b)</num><content><p>that the amendments made by subsections (3) to (7) of that section had effect in relation to rights obtained at any time on or after that date; and</p></content></level><level class="para1" eId="section-115-3-c"><num>(c)</num><content><p>that the provisions of paragraphs 1(1) and 2 to 5 of Schedule 16 to this Act had effect at all times on and after 17th July 1995, but with the substitution for references to the day on which this Act is passed of references to that date.</p></content></level></subsection><subsection eId="section-115-4"><num>(4)</num><intro><p>For the purposes of this section, rights obtained by a person on or after 17th July 1995 shall be treated as having been obtained by him before that date if—</p></intro><level class="para1" eId="section-115-4-a"><num>(a)</num><content><p>the scheme in question is one approved before that date;</p></content></level><level class="para1" eId="section-115-4-b"><num>(b)</num><content><p>an offer of the rights or an invitation to apply for them was made in writing to that person before that date; and</p></content></level><level class="para1" eId="section-115-4-c"><num>(c)</num><content><p>he obtained the rights within the period of thirty days beginning with the day on which the offer or invitation was made.</p></content></level></subsection><subsection eId="section-115-5"><num>(5)</num><intro><p>In this section—</p></intro><hcontainer name="definition"><content><p>“approved share option scheme” means an approved share option scheme, within the meaning of section 185 of the Taxes Act 1988, other than a savings-related share option scheme;</p></content></hcontainer><hcontainer name="definition"><content><p>“relevant requirements” has the meaning given in paragraph 1(1) of Schedule 9 to the Taxes Act 1988;</p></content></hcontainer><hcontainer name="definition"><content><p>“savings-related share option scheme” has the meaning given by Schedule 9 to the Taxes Act 1988.</p></content></hcontainer></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-IV-chapter-IV-crossheading-profit-sharing-schemes"><heading>Profit sharing schemes</heading><section eId="section-116"><num>116</num><heading>The release date</heading><subsection eId="section-116-1"><num>(1)</num><content><p>In section 187(2) of the Taxes Act 1988 (interpretation of sections 185 and 186 of, and Schedules 9 and 10 to, that Act) in the definition of “release date” (the fifth anniversary of the date on which shares were appropriated to a participant in a profit sharing scheme) for “fifth” there shall be substituted “third”.</p></content></subsection><subsection eId="section-116-2"><num>(2)</num><content><p>The amendment made by subsection (1) above shall have effect in relation to shares of a participant in a profit sharing scheme if the third anniversary of the appropriation of the shares to the participant occurs on or after the day on which this Act is passed.</p></content></subsection><subsection eId="section-116-3"><num>(3)</num><content><p>If the third anniversary of the appropriation of any shares to a participant in a profit sharing scheme has occurred, but the fifth anniversary of their appropriation to him has not occurred, before the passing of this Act, then, in the application of sections 186 and 187 of, and Schedules 9 and 10 to, the Taxes Act 1988 in relation to those shares, the release date shall be the day on which this Act is passed.</p></content></subsection></section><section eId="section-117"><num>117</num><heading>The appropriate percentage</heading><subsection eId="section-117-1"><num>(1)</num><content><p><mod>In Schedule 10 to the Taxes Act 1988 (further provisions relating to profit sharing schemes) for paragraph 3 (the appropriate percentage) there shall be substituted—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><paragraph class="schProv1"><num>3</num><subparagraph><num>(1)</num><content><p>For the purposes of any of the relevant provisions charging an individual to income tax under Schedule E by reason of the occurrence of an event relating to any of his shares, the “appropriate percentage” in relation to those shares is 100 per cent., unless sub-paragraph (2) below applies.</p></content></subparagraph><subparagraph><num>(2)</num><intro><p>Where the individual—</p></intro><level class="para1"><num>(a)</num><content><p>ceases to be a director or employee of the grantor or, in the case of a group scheme, a participating company as mentioned in paragraph 2(a) above, or</p></content></level><level class="para1"><num>(b)</num><content><p>reaches the relevant age,</p></content></level><wrapUp><p>before the event occurs, the “appropriate percentage” is 50 per cent., unless paragraph 6(4) below applies.</p></wrapUp></subparagraph></paragraph></quotedStructure></mod></p></content></subsection><subsection eId="section-117-2"><num>(2)</num><content><p>In section 187(8) of that Act (determination of certain values and percentages where shares are appropriated to a participant at different times) paragraph (b) (which relates to the appropriate percentage), and the word “and” immediately preceding it, shall cease to have effect.</p></content></subsection><subsection eId="section-117-3"><num>(3)</num><content><p>Subsections (1) and (2) above have effect in relation to the occurrence, on or after the day on which this Act is passed, of events by reason of whose occurrence any provision of section 186 or 187 of, or Schedule 9 or 10 to, the Taxes Act 1988 charges an individual to income tax under Schedule E.</p></content></subsection></section><section eId="section-118"><num>118</num><heading>The appropriate allowance</heading><subsection eId="section-118-1"><num>(1)</num><intro><p>In section 186(12) of the Taxes Act 1988 (determination of the appropriate allowance for the purposes of the charge to tax on capital receipts by a participant in an approved profit sharing scheme)—</p></intro><level class="para1" eId="section-118-1-a"><num>(a)</num><content><p>for “£100” there shall be substituted “£60”; and</p></content></level><level class="para1" eId="section-118-1-b"><num>(b)</num><content><p>for “five years” there shall be substituted “three years”.</p></content></level></subsection><subsection eId="section-118-2"><num>(2)</num><content><p>Subsection (1) above has effect for the year 1997-98 and subsequent years of assessment.</p></content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-IV-chapter-IV-crossheading-employee-share-ownership-trusts"><heading>Employee share ownership trusts</heading><section eId="section-119"><num>119</num><heading>Removal of requirement for at least one year’s service</heading><subsection eId="section-119-1"><num>(1)</num><content><p>In Schedule 5 to the <noteRef href="#m00068" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1989 (employee share ownership trusts) in paragraph 4(5)(a) (for a trust to be a qualifying ESOT, its beneficiaries must have been employees or directors of the company for at least one year) the words “not less than one year and” shall cease to have effect.</p></content></subsection><subsection eId="section-119-2"><num>(2)</num><content><p>This section applies to trusts established on or after the day on which this Act is passed.</p></content></subsection></section><section eId="section-120"><num>120</num><heading>Grant and exercise of share options</heading><subsection eId="section-120-1"><num>(1)</num><content><p><mod>In Schedule 5 to the <noteRef href="#m00069" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1989 (employee share ownership trusts), in paragraph 4 (the trust deed must contain provision as to the beneficiaries) after sub-paragraph (2) there shall be inserted—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><subparagraph><num>(2A)</num><intro><p>The trust deed may provide that a person is a beneficiary at a given time if at that time he is eligible to participate in a savings-related share option scheme within the meaning of Schedule 9 to the Taxes Act 1988—</p></intro><level class="para1"><num>(a)</num><content><p>which was established by a company within the founding company’s group, and</p></content></level><level class="para1"><num>(b)</num><content><p>which is approved under that Schedule.</p></content></level></subparagraph><subparagraph><num>(2B)</num><content><p>Where a trust deed contains a rule conforming with sub-paragraph (2A) above it must provide that the only powers and duties which the trustees may exercise in relation to persons who are beneficiaries by virtue only of that rule are those which may be exercised in accordance with the provisions of a scheme such as is mentioned in that sub-paragraph.</p></content></subparagraph></quotedStructure></mod></p></content></subsection><subsection eId="section-120-2"><num>(2)</num><content><p>In consequence of the amendment made by subsection (1) above, section 69 of, and Schedule 5 to, the <noteRef href="#m00070" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1989 (which respectively make provision about chargeable events in relation to the trustees of qualifying employee share ownership trusts and the requirements to be satisfied by such trusts) shall be amended in accordance with the following provisions of this section.</p></content></subsection><subsection eId="section-120-3"><num>(3)</num><intro><p>In subsection (4) of that section (meaning of “qualifying terms” for the purposes of the provision that the transfer of securities to beneficiaries is a chargeable event if it is not on qualifying terms)—</p></intro><level class="para1" eId="section-120-3-a"><num>(a)</num><content><p>in paragraph (a) (securities which are transferred at the same time must be transferred on similar terms) after “time” there shall be inserted “other than those transferred on a transfer such as is mentioned in subsection (4ZA) below”;</p></content></level><level class="para1" eId="section-120-3-b"><num>(b)</num><content><p>in paragraph (b) (securities must have been offered to all the persons who are beneficiaries), after “trust deed” there shall be inserted “by virtue of a rule which conforms with paragraph 4(2), (3) or (4) of Schedule 5 to this Act”; and</p></content></level><level class="para1" eId="section-120-3-c"><num>(c)</num><content><p>in paragraph (c) (securities must be transferred to all such beneficiaries who have accepted the offer) for “beneficiaries” there shall be substituted “persons”.</p></content></level></subsection><subsection eId="section-120-4"><num>(4)</num><content><p><mod>After subsection (4) of that section there shall be inserted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(4ZA)</num><intro><p>For the purposes of subsection (1)(b) above a transfer of securities is also made on qualifying terms if—</p></intro><level class="para1"><num>(a)</num><content><p>it is made to a person exercising a right to acquire shares, and</p></content></level><level class="para1"><num>(b)</num><intro><p>that right was obtained in accordance with the provisions of a savings-related share option scheme within the meaning of Schedule 9 to the Taxes Act 1988—</p></intro><level class="para2"><num>(i)</num><content><p>which was established by, or by a company controlled by, the company which established the trust, and</p></content></level><level class="para2"><num>(ii)</num><content><p>which is approved under that Schedule, and</p></content></level></level><level class="para1"><num>(c)</num><content><p>that right is being exercised in accordance with the provisions of that scheme, and</p></content></level><level class="para1"><num>(d)</num><content><p>the consideration for the transfer is payable to the trustees.</p></content></level></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-120-5"><num>(5)</num><content><p>In sub-paragraph (4) of paragraph 4 of that Schedule (trust deed may provide for charity to be beneficiary if there are no beneficiaries falling within a rule conforming with sub-paragraph (2) or (3)) after “sub-paragraph (2)” there shall be inserted “, (2A)”.</p></content></subsection><subsection eId="section-120-6"><num>(6)</num><content><p>In sub-paragraph (7) of that paragraph (trust deed must not provide for a person to be a beneficiary unless he falls within a rule conforming with sub-paragraph (2), (3) or (4)) after “sub-paragraph (2)” there shall be inserted “, (2A)”.</p></content></subsection><subsection eId="section-120-7"><num>(7)</num><content><p>In sub-paragraph (8) of that paragraph (trust deed must provide that person with material interest in founding company cannot be a beneficiary) after “at a particular time (the relevant time)” there shall be inserted “by virtue of a rule which conforms with sub-paragraph (2), (3) or (4) above”.</p></content></subsection><subsection eId="section-120-8"><num>(8)</num><content><p><mod>In paragraph 5(2) of that Schedule (trust deed must be so expressed that it is apparent that the general functions of the trustees are as mentioned in paragraphs (a) to (e)) after paragraph (c) there shall be inserted—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><level class="para1"><num>(cc)</num><content><p>to grant rights to acquire shares to persons who are beneficiaries under the terms of the trust deed;</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-120-9"><num>(9)</num><intro><p>In paragraph 9 of that Schedule (trust deed must provide that transfers of securities to beneficiaries must be on qualifying terms and within the qualifying period) in sub-paragraph (2) (meaning of qualifying terms)—</p></intro><level class="para1" eId="section-120-9-a"><num>(a)</num><content><p>in paragraph (a) (securities which are transferred at the same time must be transferred on similar terms) after “time” there shall be inserted “other than those transferred on a transfer such as is mentioned in sub-paragraph (2ZA) below”;</p></content></level><level class="para1" eId="section-120-9-b"><num>(b)</num><content><p>in paragraph (b) (securities must have been offered to all the persons who are beneficiaries) after “trust deed” there shall be inserted “by virtue of a rule which conforms with paragraph 4(2), (3) or (4) above”; and</p></content></level><level class="para1" eId="section-120-9-c"><num>(c)</num><content><p>in paragraph (c) (securities must be transferred to all such beneficiaries who have accepted the offer) for “beneficiaries” there shall be substituted “persons”.</p></content></level></subsection><subsection eId="section-120-10"><num>(10)</num><content><p><mod>After sub-paragraph (2) of that paragraph there shall be inserted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(2ZA)</num><intro><p>For the purposes of sub-paragraph (1) above a transfer of securities is also made on qualifying terms if—</p></intro><level class="para1"><num>(a)</num><content><p>it is made to a person exercising a right to acquire shares, and</p></content></level><level class="para1"><num>(b)</num><intro><p>that right was obtained in accordance with the provisions of a savings-related share option scheme within the meaning of Schedule 9 to the Taxes Act 1988—</p></intro><level class="para2"><num>(i)</num><content><p>which was established by, or by a company controlled by, the founding company, and</p></content></level><level class="para2"><num>(ii)</num><content><p>which is approved under that Schedule, and</p></content></level></level><level class="para1"><num>(c)</num><content><p>that right is being exercised in accordance with the provisions of that scheme, and</p></content></level><level class="para1"><num>(d)</num><content><p>the consideration for the transfer is payable to the trustees.</p></content></level></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-120-11"><num>(11)</num><intro><p>In paragraph 10 of that Schedule (trust deed must not contain features not essential or reasonably incidental to purposes mentioned in that paragraph)—</p></intro><level class="para1" eId="section-120-11-a"><num>(a)</num><content><p>after “acquiring sums and securities,” there shall be inserted “granting rights to acquire shares to persons who are eligible to participate in savings-related share option schemes approved under Schedule 9 to the Taxes Act 1988, transferring shares to such persons,”; and</p></content></level><level class="para1" eId="section-120-11-b"><num>(b)</num><content><p>for “Schedule 9 to the Taxes Act 1988” there shall be substituted “that Schedule”.</p></content></level></subsection><subsection eId="section-120-12"><num>(12)</num><content><p>This section has effect in relation to trusts established on or after the day on which this Act is passed.</p></content></subsection></section></hcontainer></chapter><chapter eId="part-IV-chapter-V"><num>Chapter V</num><heading>Self Assessment, General Management etc.</heading><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-IV-chapter-V-crossheading-general"><heading>General</heading><section eId="section-121"><num>121</num><heading>Returns and self assessment</heading><subsection eId="section-121-1"><num>(1)</num><content><p>In subsection (1) of section 8 of the <noteRef href="#m00071" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxes Management Act 1970 (personal return), and in subsection (1) of section 8A of that Act (trustee’s return), after the words “year of assessment,” there shall be inserted the words “and the amount payable by him by way of income tax for that year,”.</p></content></subsection><subsection eId="section-121-2"><num>(2)</num><content><p>In subsection (1A) of each of those sections, the words from “and the amounts referred to” to the end shall cease to have effect.</p></content></subsection><subsection eId="section-121-3"><num>(3)</num><content><p><mod>After that subsection of each of those sections there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1AA)</num><intro><p>For the purposes of subsection (1) above—</p></intro><level class="para1"><num>(a)</num><content><p>the amounts in which a person is chargeable to income tax and capital gains tax are net amounts, that is to say, amounts which take into account any relief or allowance a claim for which is included in the return; and</p></content></level><level class="para1"><num>(b)</num><content><p>the amount payable by a person by way of income tax is the difference between the amount in which he is chargeable to income tax and the aggregate amount of any income tax deducted at source and any tax credits to which section 231 of the principal Act applies.</p></content></level></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-121-4"><num>(4)</num><content><p><mod>For subsection (1) of section 9 of that Act (returns to include self-assessment) there shall be substituted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1)</num><intro><p>Subject to subsection (2) below, every return under section 8 or 8A of this Act shall include a self-assessment, that is to say—</p></intro><level class="para1"><num>(a)</num><content><p>an assessment of the amounts in which, on the basis of the information contained in the return and taking into account any relief or allowance a claim for which is included in the return, the person making the return is chargeable to income tax and capital gains tax for the year of assessment; and</p></content></level><level class="para1"><num>(b)</num><content><p>an assessment of the amount payable by him by way of income tax, that is to say, the difference between the amount in which he is assessed to income tax under paragraph (a) above and the aggregate amount of any income tax deducted at source and any tax credits to which section 231 of the principal Act applies.</p></content></level></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-121-5"><num>(5)</num><content><p>In subsection (1)(b) of section 11AA of that Act (return of profits to include self-assessment), for the words “, allowance or repayment of tax” there shall be substituted the words “or allowance”.</p></content></subsection><subsection eId="section-121-6"><num>(6)</num><content><p>In subsection (1)(a) of section 12AA of that Act (partnership return), after the words “so chargeable” there shall be inserted the words “and the amount payable by way of income tax by each such partner”.</p></content></subsection><subsection eId="section-121-7"><num>(7)</num><content><p><mod>For subsection (1A) of that section there shall be substituted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1A)</num><intro><p>For the purposes of subsection (1) above—</p></intro><level class="para1"><num>(a)</num><content><p>the amount in which a partner is chargeable to income tax or corporation tax is a net amount, that is to say, an amount which takes into account any relief or allowance for which a claim is made; and</p></content></level><level class="para1"><num>(b)</num><content><p>the amount payable by a partner by way of income tax is the difference between the amount in which he is chargeable to income tax and the aggregate amount of any income tax deducted at source and any tax credits to which section 231 of the principal Act applies.</p></content></level></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-121-8"><num>(8)</num><intro><p>This section and sections 122, 123, 125 to 127 and 141 below—</p></intro><level class="para1" eId="section-121-8-a"><num>(a)</num><content><p>so far as they relate to income tax and capital gains tax, have effect as respects the year 1996-97 and subsequent years of assessment, and</p></content></level><level class="para1" eId="section-121-8-b"><num>(b)</num><content><p>so far as they relate to corporation tax, have effect as respects accounting periods ending on or after the appointed day for the purposes of Chapter III of Part IV of the <noteRef href="#m00072" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1994.</p></content></level></subsection></section><section eId="section-122"><num>122</num><heading>Notional tax deductions and payments</heading><subsection eId="section-122-1"><num>(1)</num><content><p>At the end of subsection (1) of section 9 of the <noteRef href="#m00073" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxes Management Act 1970 (as substituted by section 121(4) above) there shall be inserted the words “but nothing in this subsection shall enable a self-assessment to show as repayable any income tax treated as deducted or paid by virtue of section 233(1), 246D(1), 249(4), 421(1), 547(5) or 599A(5) of the principal Act.”</p></content></subsection><subsection eId="section-122-2"><num>(2)</num><content><p>At the end of subsection (1) of section 59B of that Act (payment of income tax and capital gains tax) there shall be inserted the words “but nothing in this subsection shall require the repayment of any income tax treated as deducted or paid by virtue of section 233(1), 246D(1), 249(4), 421(1), 547(5) or 599A(5) of the principal Act.”</p></content></subsection><subsection eId="section-122-3"><num>(3)</num><content><p><mod>In subsection (1) of section 233 of the Taxes Act 1988 (taxation of certain recipients of distributions), for paragraphs (a) and (b) there shall be substituted the following paragraphs—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><level class="para1"><num>(a)</num><content><p>that person shall be treated as having paid income tax at the lower rate on the amount or value of the distribution;</p></content></level><level class="para1"><num>(b)</num><content><p>no repayment shall be made of any income tax treated by virtue of paragraph (a) above as having been paid;</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-122-4"><num>(4)</num><intro><p>In paragraph (a) of subsection (1A) of that section—</p></intro><level class="para1" eId="section-122-4-a"><num>(a)</num><content><p><mod>for sub-paragraph (i) there shall be substituted the following sub-paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><level class="para2"><num>(i)</num><content><p>income on which that person falls to be treated as having paid income tax at the lower rate by virtue of paragraph (a) of subsection (1) above, or</p></content></level></quotedStructure><inline name="appendText">; and</inline></mod></p></content></level><level class="para1" eId="section-122-4-b"><num>(b)</num><content><p>for the words “that assessment” there shall be substituted the words “that subsection”.</p></content></level></subsection><subsection eId="section-122-5"><num>(5)</num><intro><p>In the following enactments, namely—</p></intro><level class="para1" eId="section-122-5-a"><num>(a)</num><content><p>subsection (2)(a) of section 246D of that Act (individuals etc.); and</p></content></level><level class="para1" eId="section-122-5-b"><num>(b)</num><content><p>subsection (4)(a) of section 249 of that Act (stock dividends treated as income),</p></content></level><wrapUp><p>for the words from “no assessment” to “on it” there shall be substituted the words “the individual shall be treated as having paid income tax at the lower rate on that income”.</p></wrapUp></subsection><subsection eId="section-122-6"><num>(6)</num><content><p>In subsection (1)(b) of section 421 of that Act (taxation of borrower when loan released), for the words “no assessment shall be made on him in respect of” there shall be substituted the words “he shall not be liable to pay”.</p></content></subsection><subsection eId="section-122-7"><num>(7)</num><intro><p>The following shall cease to have effect, namely—</p></intro><level class="para1" eId="section-122-7-a"><num>(a)</num><content><p>in subsection (5)(a) of section 547 of that Act (method of charging to tax), the words from “no assessment” to “but”;</p></content></level><level class="para1" eId="section-122-7-b"><num>(b)</num><content><p>in subsection (6) of section 599A of that Act (charge to tax: payments out of surplus funds), the words from “subject” to “and”; and</p></content></level><level class="para1" eId="section-122-7-c"><num>(c)</num><content><p>subsection (7) of that section.</p></content></level></subsection></section><section eId="section-123"><num>123</num><heading>Liability of partners</heading><subsection eId="section-123-1"><num>(1)</num><content><p>In subsection (2) of section 12AA of the <noteRef href="#m00074" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxes Management Act 1970 (partnership return) after the words “with the notice” there shall be inserted the words “or a successor of his”.</p></content></subsection><subsection eId="section-123-2"><num>(2)</num><content><p>In subsection (3) of that section after the words “the partner” there shall be inserted the words “or a successor of his”.</p></content></subsection><subsection eId="section-123-3"><num>(3)</num><content><p>In subsection (7)(a) of that section, the words “any part of” shall cease to have effect.</p></content></subsection><subsection eId="section-123-4"><num>(4)</num><content><p><mod>At the end of that section there shall be inserted the following subsections—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(11)</num><intro><p>In this Act “successor”, in relation to a person who is required to make and deliver, or has made and delivered, a return in pursuance of a notice under subsection (2) or (3) above, but is no longer available, means—</p></intro><level class="para1"><num>(a)</num><content><p>where a partner is for the time being nominated for the purposes of this subsection by a majority of the relevant partners, that partner; and</p></content></level><level class="para1"><num>(b)</num><intro><p>where no partner is for the time being so nominated, such partner as—</p></intro><level class="para2"><num>(i)</num><content><p>in the case of a notice under subsection (2) above, is identified in accordance with rules given with that notice; or</p></content></level><level class="para2"><num>(ii)</num><content><p>in the case of a notice under subsection (3) above, is nominated for the purposes of this subsection by an officer of the Board;</p></content></level><wrapUp><p>and “predecessor” and “successor”, in relation to a person so nominated or identified, shall be construed accordingly.</p></wrapUp></level></subsection><subsection><num>(12)</num><content><p>For the purposes of subsection (11) above a nomination under paragraph (a) of that subsection, and a revocation of such a nomination, shall not have effect in relation to any time before notice of the nomination or revocation is given to an officer of the Board.</p></content></subsection><subsection><num>(13)</num><content><p>In this section “relevant partner” means a person who was a partner at any time during the period for which the return was made or is required, or the personal representatives of such a person.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-123-5"><num>(5)</num><intro><p>In subsection (1) of section 12AB of that Act (partnership return to include partnership statement)—</p></intro><level class="para1" eId="section-123-5-a"><num>(a)</num><content><p>in paragraph (a), for the words “each period of account ending within the period in respect of which the return is made” there shall be substituted the words “the period in respect of which the return is made and each period of account ending within that period”;</p></content></level><level class="para1" eId="section-123-5-b"><num>(b)</num><content><p>in sub-paragraph (i) of that paragraph, for the words “that period” there shall be substituted the words “the period in question”;</p></content></level><level class="para1" eId="section-123-5-c"><num>(c)</num><content><p><mod>after that sub-paragraph there shall be inserted the following sub-paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para2"><num>(ia)</num><content><p>the amount of the consideration which, on that basis, has accrued to the partnership in respect of each disposal of partnership property during that period,</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p><p>and</p></content></level><level class="para1" eId="section-123-5-d"><num>(d)</num><content><p>in paragraph (b), after the words “such period” there shall be inserted the words “as is mentioned in paragraph (a) above” and after the word “loss,” there shall be inserted the word “consideration,”.</p></content></level></subsection><subsection eId="section-123-6"><num>(6)</num><intro><p>In subsection (2) of that section—</p></intro><level class="para1" eId="section-123-6-a"><num>(a)</num><content><p>in paragraph (a) after the words “to that person” there shall be inserted the words “or a successor”; and</p></content></level><level class="para1" eId="section-123-6-b"><num>(b)</num><content><p>in paragraph (b) for the words from “partnership statement” to “he” there shall be substituted the words “or a predecessor’s partnership statement as to give effect to any amendments to the return in which it is included which he or a predecessor”.</p></content></level></subsection><subsection eId="section-123-7"><num>(7)</num><intro><p>In section 12AC of that Act (power to enquire into partnership return)—</p></intro><level class="para1" eId="section-123-7-a"><num>(a)</num><content><p>in subsection (1)(b), after the word “person” there shall be inserted the words “or a successor of that person”; and</p></content></level><level class="para1" eId="section-123-7-b"><num>(b)</num><content><p>subsection (6) (which is superseded by subsection (4) above) shall cease to have effect.</p></content></level></subsection><subsection eId="section-123-8"><num>(8)</num><content><p>In subsection (1)(b) of section 93A of that Act (failure to make partnership return), after the word “he” there shall be inserted the words “or a successor of his”.</p></content></subsection><subsection eId="section-123-9"><num>(9)</num><content><p>In subsections (3) and (4) of that section, after the words “the representative partner” there shall be inserted the words “or a successor of his”.</p></content></subsection><subsection eId="section-123-10"><num>(10)</num><intro><p>In subsection (6) of that section—</p></intro><level class="para1" eId="section-123-10-a"><num>(a)</num><content><p>after the words “the representative partner” there shall be inserted the words “or a successor of his”; and</p></content></level><level class="para1" eId="section-123-10-b"><num>(b)</num><content><p>after the words “that partner”, in both places where they occur, there shall be inserted the words “or successor”.</p></content></level></subsection><subsection eId="section-123-11"><num>(11)</num><content><p>In subsection (7) of that section, for the words “the representative partner had a reasonable excuse for not delivering the return” there shall be substituted the words “the person for the time being required to deliver the return (whether the representative partner or a successor of his) had a reasonable excuse for not delivering it”.</p></content></subsection><subsection eId="section-123-12"><num>(12)</num><content><p>In subsection (1)(a)(ii) of section 95A of that Act (incorrect partnership return or accounts), for the words “such a return” there shall be substituted the words “a return of such a kind”.</p></content></subsection><subsection eId="section-123-13"><num>(13)</num><intro><p>In subsection (3) of that section—</p></intro><level class="para1" eId="section-123-13-a"><num>(a)</num><content><p>after the words “the representative partner” there shall be inserted the words “or a successor of his”; and</p></content></level><level class="para1" eId="section-123-13-b"><num>(b)</num><content><p>after the words “that partner”, in both places where they occur, there shall be inserted the words “or successor”.</p></content></level></subsection><subsection eId="section-123-14"><num>(14)</num><content><p><mod>In subsection (1) of section 118 of that Act (interpretation), for the definition of “successor” there shall be substituted the following definition—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><p>“successor”, in relation to a person who is required to make and deliver, or has made and delivered, a return under section 12AA of this Act, and “predecessor” and “successor”, in relation to the successor of such a person, shall be construed in accordance with section 12AA(11) of this Act;</p></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection></section><section eId="section-124"><num>124</num><heading>Retention of original records</heading><subsection eId="section-124-1"><num>(1)</num><intro><p>The <noteRef href="#m00075" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxes Management Act 1970, as it has effect—</p></intro><level class="para1" eId="section-124-1-a"><num>(a)</num><content><p>for the purposes of income tax and capital gains tax, as respects the year 1996-97 and subsequent years of assessment, and</p></content></level><level class="para1" eId="section-124-1-b"><num>(b)</num><content><p>for the purposes of corporation tax, as respects accounting periods ending on or after the day appointed under section 199 of the <noteRef href="#m00076" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1994 for the purposes of Chapter III of Part IV of that Act (self-assessment management provisions),</p></content></level><wrapUp><p>shall be amended in accordance with the following provisions of this section.</p></wrapUp></subsection><subsection eId="section-124-2"><num>(2)</num><content><p>In section 12B (records to be kept for purposes of returns) in subsection (4) (which permits the duty to preserve records to be discharged by the preservation of the information contained in them, and provides for the admissibility in evidence of copy documents) at the beginning there shall be inserted the words “Except in the case of records falling within subsection (4A) below,”.</p></content></subsection><subsection eId="section-124-3"><num>(3)</num><content><p><mod>After that subsection there shall be inserted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(4A)</num><intro><p>The records which fall within this subsection are—</p></intro><level class="para1"><num>(a)</num><intro><p>any statement in writing such as is mentioned in—</p></intro><level class="para2"><num>(i)</num><content><p>subsection (1) of section 234 of the principal Act (amount of qualifying distribution and tax credit), or</p></content></level><level class="para2"><num>(ii)</num><content><p>subsection (1) of section 352 of that Act (gross amount, tax deducted, and actual amount paid, in certain cases where payments are made under deduction of tax),</p></content></level><wrapUp><p>which is furnished by the company or person there mentioned, whether after the making of a request or otherwise;</p></wrapUp></level><level class="para1"><num>(b)</num><content><p>any certificate or other record (however described) which is required by regulations under section 566(1) of the principal Act to be given to a sub-contractor (within the meaning of Chapter IV of Part XIII of that Act) on the making of a payment to which section 559 of that Act (deductions on account of tax) applies;</p></content></level><level class="para1"><num>(c)</num><intro><p>any such record as may be requisite for making a correct and complete claim in respect of, or otherwise requisite for making a correct and complete return so far as relating to, an amount of tax—</p></intro><level class="para2"><num>(i)</num><content><p>which has been paid under the laws of a territory outside the United Kingdom, or</p></content></level><level class="para2"><num>(ii)</num><content><p>which would have been payable under the law of such a territory but for a relief to which section 788(5) of the principal Act (relief for promoting development and relief contemplated by double taxation arrangements) applies.</p></content></level></level></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-124-4"><num>(4)</num><content><p>In subsection (5) of that section (penalty for failure to comply with section 12B(1) or (2A)) for “Subject to subsection (5A)” there shall be substituted “Subject to subsections (5A) and (5B)”.</p></content></subsection><subsection eId="section-124-5"><num>(5)</num><content><p><mod>After subsection (5A) of that section there shall be inserted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(5B)</num><intro><p>Subsection (5) above also does not apply where—</p></intro><level class="para1"><num>(a)</num><content><p>the records which the person fails to keep or preserve are records falling within paragraph (a) of subsection (4A) above; and</p></content></level><level class="para1"><num>(b)</num><content><p>an officer of the Board is satisfied that any facts which he reasonably requires to be proved, and which would have been proved by the records, are proved by other documentary evidence furnished to him.</p></content></level></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-124-6"><num>(6)</num><content><p>In Schedule 1A (claims etc not included in returns) in paragraph 2A (keeping and preserving of records) in sub-paragraph (3) (which makes corresponding provision to section 12B(4)) at the beginning there shall be inserted “Except in the case of records falling within section 12B(4A) of this Act,”.</p></content></subsection><subsection eId="section-124-7"><num>(7)</num><content><p>In sub-paragraph (4) of that paragraph (penalty for failure to comply with paragraph 2A(1)) at the beginning there shall be inserted “Subject to sub-paragraph (5) below,”.</p></content></subsection><subsection eId="section-124-8"><num>(8)</num><content><p><mod>After that sub-paragraph there shall be inserted—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><subparagraph><num>(5)</num><intro><p>Sub-paragraph (4) above does not apply where—</p></intro><level class="para1"><num>(a)</num><content><p>the records which the person fails to keep or preserve are records falling within paragraph (a) of section 12B(4A) of this Act; and</p></content></level><level class="para1"><num>(b)</num><content><p>an officer of the Board is satisfied that any facts which he reasonably requires to be proved, and which would have been proved by the records, are proved by other documentary evidence furnished to him.</p></content></level></subparagraph></quotedStructure></mod></p></content></subsection><subsection eId="section-124-9"><num>(9)</num><intro><p>The amendments made by this section shall not have effect in relation to—</p></intro><level class="para1" eId="section-124-9-a"><num>(a)</num><content><p>any time before this Act is passed, or</p></content></level><level class="para1" eId="section-124-9-b"><num>(b)</num><content><p>any records which a person fails to preserve before this Act is passed.</p></content></level></subsection></section><section eId="section-125"><num>125</num><heading>Determination of tax where no return delivered</heading><subsection eId="section-125-1"><num>(1)</num><content><p><mod>For subsection (1) of section 28C of the <noteRef href="#m00077" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxes Management Act 1970 (determination of tax where no return delivered) there shall be substituted the following subsections—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1)</num><intro><p>This section applies where—</p></intro><level class="para1"><num>(a)</num><content><p>a notice has been given to any person under section 8 or 8A of this Act (the relevant section), and</p></content></level><level class="para1"><num>(b)</num><content><p>the required return is not delivered on or before the filing date.</p></content></level></subsection><subsection><num>(1A)</num><intro><p>An officer of the Board may make a determination of the following amounts, to the best of his information and belief, namely—</p></intro><level class="para1"><num>(a)</num><content><p>the amounts in which the person who should have made the return is chargeable to income tax and capital gains tax for the year of assessment; and</p></content></level><level class="para1"><num>(b)</num><content><p>the amount which is payable by him by way of income tax for that year;</p></content></level><wrapUp><p>and subsection (1AA) of section 8 or, as the case may be, section 8A of this Act applies for the purposes of this subsection as it applies for the purposes of subsection (1) of that section.</p></wrapUp></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-125-2"><num>(2)</num><content><p>In subsection (3) of that section the words “or 11AA” shall cease to have effect.</p></content></subsection><subsection eId="section-125-3"><num>(3)</num><content><p>In subsection (6) of that section for the words “, section 8A(1A) or, as the case may be, section 11(4)” there shall be substituted the words “or, as the case may be, section 8A(1A)”.</p></content></subsection><subsection eId="section-125-4"><num>(4)</num><content><p><mod>After subsection (5) of section 59B of that Act (payment of income tax and capital gains tax) there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(5A)</num><content><p>Where a determination under section 28C of this Act which has effect as a person’s self-assessment is superseded by his self-assessment under section 9 of this Act, any amount of tax which is payable or repayable by virtue of the supersession shall be payable or (as the case may be) repayable on or before the day given by subsection (3) or (4) above.</p></content></subsection></quotedStructure></mod></p></content></subsection></section><section eId="section-126"><num>126</num><heading>PAYE regulations</heading><subsection eId="section-126-1"><num>(1)</num><content><p><mod>After subsection (9) of section 59A of the Taxes Management Act 1970 (payments on account of income tax) there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(10)</num><content><p>Regulations under section 203 of the principal Act (PAYE) may provide that, for the purpose of determining the amount of any such excess as is mentioned in subsection (1) above, any necessary adjustments in respect of matters prescribed by the regulations shall be made to the amount of tax deducted at source under that section.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-126-2"><num>(2)</num><content><p><mod>After subsection (7) of section 59B of that Act (payment of income tax and capital gains tax) there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(8)</num><content><p>Regulations under section 203 of the principal Act (PAYE) may provide that, for the purpose of determining the amount of the difference mentioned in subsection (1) above, any necessary adjustments in respect of matters prescribed by the regulations shall be made to the amount of tax deducted at source under that section.</p></content></subsection></quotedStructure></mod></p></content></subsection></section><section eId="section-127"><num>127</num><heading>Repayment postponed pending completion of enquiries</heading><content><p><mod>After subsection (4) of section 59B of the <noteRef href="#m00078" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxes Management Act 1970 (payment of income tax and capital gains tax) there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(4A)</num><intro><p>Where in the case of a repayment the return on the basis of which the person’s self-assessment was made under section 9 of this Act is enquired into by an officer of the Board—</p></intro><level class="para1"><num>(a)</num><content><p>nothing in subsection (3) or (4) above shall require the repayment to be made before the day on which, by virtue of section 28A(5) of this Act, the officer’s enquiries are treated as completed; but</p></content></level><level class="para1"><num>(b)</num><content><p>the officer may at any time before that day make the repayment, on a provisional basis, to such extent as he thinks fit.</p></content></level></subsection></quotedStructure></mod></p></content></section><section eId="section-128"><num>128</num><heading>Claims for reliefs involving two or more years</heading><subsection eId="section-128-1"><num>(1)</num><intro><p>In section 42 of the Taxes Management Act 1970 (procedure for making claims etc.)—</p></intro><level class="para1" eId="section-128-1-a"><num>(a)</num><content><p>subsections (3A) and (3B) (which are superseded by subsection (2) below) shall cease to have effect;</p></content></level><level class="para1" eId="section-128-1-b"><num>(b)</num><content><p>in subsection (7)(a), the words “534, 535, 537A, 538” shall cease to have effect; and</p></content></level><level class="para1" eId="section-128-1-c"><num>(c)</num><content><p><mod>after subsection (11) there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(11A)</num><content><p>Schedule 1B to this Act shall have effect as respects certain claims for relief involving two or more years of assessment.</p></content></subsection></quotedStructure></mod></p></content></level></subsection><subsection eId="section-128-2"><num>(2)</num><content><p>After Schedule 1A to that Act there shall be inserted, as Schedule 1B, the provisions set out in Schedule 17 to this Act (claims for reliefs involving two or more years).</p></content></subsection><subsection eId="section-128-3"><num>(3)</num><content><p><mod>For subsection (9) of section 96 of the Taxes Act 1988 (relief for fluctuating profits of farming etc.) there shall be substituted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(9)</num><intro><p>Where a person makes a claim under this section, any claim by him for relief under any other provision of the Income Tax Acts for either of the two years of assessment—</p></intro><level class="para1"><num>(a)</num><content><p>shall not be out of time if made before the end of the period during which the claim under this section is capable of being revoked; and</p></content></level><level class="para1"><num>(b)</num><content><p>if already made, may be amended or revoked before the end of that period;</p></content></level><wrapUp><p>and, in relation to a claim made by being included in a return, any reference in this subsection to amending or revoking the claim is a reference to amending the return by amending or, as the case may be, omitting the claim.</p></wrapUp></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-128-4"><num>(4)</num><intro><p>In section 108 of that Act (election for carry-back)—</p></intro><level class="para1" eId="section-128-4-a"><num>(a)</num><content><p>for the words “the inspector within two years after” there shall be substituted the words “an officer of the Board within one year from the 31st January next following”; and</p></content></level><level class="para1" eId="section-128-4-b"><num>(b)</num><content><p>the words from “and, in any such case” to the end shall cease to have effect.</p></content></level></subsection><subsection eId="section-128-5"><num>(5)</num><content><p><mod>For subsection (5) of section 534 of that Act (relief for copyright payments) there shall be substituted the following subsections—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(5)</num><intro><p>A claim under this section with respect to any payment to which it applies by virtue only of subsection (4)(b) above—</p></intro><level class="para1"><num>(a)</num><content><p>shall have effect as a claim with respect to all qualifying payments, that is to say, all such payments in respect of the copyright in the same work which are receivable by the claimant, whether before or after the claim; and</p></content></level><level class="para1"><num>(b)</num><content><p>where qualifying payments are so receivable in two or more years of assessment, shall be treated for the purposes of the Management Act as if it were two or more separate claims, each in respect of the qualifying payments receivable in one of those years.</p></content></level></subsection><subsection><num>(5A)</num><intro><p>A claim under this section may be made at any time within one year from the 31st January next following—</p></intro><level class="para1"><num>(a)</num><content><p>in the case of such a claim as is mentioned in subsection (5) above, the latest year of assessment in which a qualifying payment is receivable; and</p></content></level><level class="para1"><num>(b)</num><content><p>in the case of any other claim, the year of assessment in which the payment in question is receivable.</p></content></level></subsection><subsection><num>(5B)</num><content><p>For the purposes of subsections (5) and (5A) above, a payment shall be regarded as receivable in the year of assessment in computing the amount of the profits or gains of which it would, but for this section, be included.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-128-6"><num>(6)</num><content><p><mod>After subsection (6) of that section there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(6A)</num><intro><p>In the case of persons carrying on a trade, profession or business in partnership, no claim may be made under any of the following provisions, namely—</p></intro><level class="para1"><num>(a)</num><content><p>this section and section 535;</p></content></level><level class="para1"><num>(b)</num><content><p>section 537 as it has effect in relation to this section and section 535; and</p></content></level><level class="para1"><num>(c)</num><content><p>section 537A and section 538,</p></content></level><wrapUp><p>in respect of any payment or sum receivable on or after 6th April 1996; and nothing in any of those provisions shall be construed as applying to profits chargeable to corporation tax.</p></wrapUp></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-128-7"><num>(7)</num><intro><p>In section 535 of that Act (relief where copyright sold after ten years or more), the following shall cease to have effect, namely—</p></intro><level class="para1" eId="section-128-7-a"><num>(a)</num><content><p>in subsection (4), the words “Subject to subsection (5) below”;</p></content></level><level class="para1" eId="section-128-7-b"><num>(b)</num><content><p>subsections (5) and (7); and</p></content></level><level class="para1" eId="section-128-7-c"><num>(c)</num><content><p>in subsection (6), the words from “unless the author” to the end.</p></content></level></subsection><subsection eId="section-128-8"><num>(8)</num><content><p><mod>After subsection (8) of that section there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(8A)</num><content><p>No claim for relief made under subsection (1) above shall be allowed unless it is made within one year from the 31st January next following the year of assessment in which the payment is receivable; and for the purposes of this subsection a payment shall be regarded as receivable in the year of assessment in computing the amount of the profits or gains of which it would, but for this section, be included.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-128-9"><num>(9)</num><content><p><mod>For subsection (5) of section 537A of that Act (relief for payments in respect of designs) there shall be substituted the following subsections—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(5)</num><intro><p>A claim under this section with respect to any payment to which it applies by virtue only of subsection (4)(b) above—</p></intro><level class="para1"><num>(a)</num><content><p>shall have effect as a claim with respect to all qualifying payments, that is to say, all such payments in respect of rights in the design in question which are receivable by the claimant, whether before or after the claim; and</p></content></level><level class="para1"><num>(b)</num><content><p>where qualifying payments are so receivable in two or more years of assessment, shall be treated for the purposes of the Management Act as if it were two or more separate claims, each in respect of the qualifying payments receivable in one of those years.</p></content></level></subsection><subsection><num>(5A)</num><intro><p>A claim under this section may be made at any time within one year from the 31st January next following—</p></intro><level class="para1"><num>(a)</num><content><p>in the case of such a claim as is mentioned in subsection (5) above, the latest year of assessment in which a qualifying payment is receivable; and</p></content></level><level class="para1"><num>(b)</num><content><p>in the case of any other claim, the year of assessment in which the payment in question is receivable.</p></content></level></subsection><subsection><num>(5B)</num><content><p>For the purposes of subsections (5) and (5A) above, a payment shall be regarded as receivable in the year of assessment in computing the amount of the profits or gains of which it would, but for this section, be included.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-128-10"><num>(10)</num><content><p><mod>After subsection (3) of section 538 of that Act (relief for painters, sculptors and other artists) there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(4)</num><content><p>No claim for relief made under subsection (1) above shall be allowed unless it is made within one year from the 31st January next following the year of assessment in which the payment is receivable; and for the purposes of this subsection a payment shall be regarded as receivable in the year of assessment in computing the amount of the profits or gains of which it would, but for this section, be included.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-128-11"><num>(11)</num><content><p>This section (except subsections (1)(b) and (6) above) and Schedule 17 to this Act have effect as respects claims made (or deemed to be made) in relation to the year 1996-97 or later years of assessment.</p></content></subsection><subsection eId="section-128-12"><num>(12)</num><content><p>Subsection (1)(b) above has effect as respects claims made in relation to the year 1997-98 or later years of assessment.</p></content></subsection></section><section eId="section-129"><num>129</num><heading>Claims for medical insurance and vocational training relief</heading><subsection eId="section-129-1"><num>(1)</num><intro><p>Nothing in section 42 of the <noteRef href="#m00079" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxes Management Act 1970 (procedure for making claims etc.), or Schedule 1A to that Act (claims etc. not included in returns), shall apply in relation to—</p></intro><level class="para1" eId="section-129-1-a"><num>(a)</num><content><p>any claim under subsection (6)(b) of section 54 (medical insurance relief) of the <noteRef href="#m00080" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1989 (“the 1989 Act”); or</p></content></level><level class="para1" eId="section-129-1-b"><num>(b)</num><content><p>any claim under subsection (5)(b) of section 32 (vocational training relief) of the <noteRef href="#m00081" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1991 (“the 1991 Act”).</p></content></level></subsection><subsection eId="section-129-2"><num>(2)</num><content><p>In section 54(6)(b) of the 1989 Act and section 32(5)(b) of the 1991 Act, after the words “on making a claim” there shall be inserted the words “in accordance with regulations”.</p></content></subsection><subsection eId="section-129-3"><num>(3)</num><content><p><mod>In section 57(1) of the 1989 Act (medical insurance relief: supplementary), after paragraph (a) there shall be inserted the following paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(aa)</num><content><p>make provision for and with respect to appeals against a decision of an officer of the Board or the Board with respect to a claim under section 54(6)(b) above;</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-129-4"><num>(4)</num><content><p><mod>In section 33(1) of the 1991 Act (vocational training relief: supplementary), after paragraph (a) there shall be inserted the following paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(aa)</num><content><p>make provision for and with respect to appeals against a decision of an officer of the Board or the Board with respect to a claim under section 32(5)(b) above;</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-129-5"><num>(5)</num><content><p>Subsection (1)(a) above shall not apply in relation to claims made before the coming into force of regulations made by virtue of section 57(1)(aa) of the 1989 Act.</p></content></subsection><subsection eId="section-129-6"><num>(6)</num><content><p>Subsection (1)(b) above shall not apply in relation to claims made before the coming into force of regulations made by virtue of section 33(1)(aa) of the 1991 Act.</p></content></subsection></section><section eId="section-130"><num>130</num><heading>Procedure for giving notices</heading><subsection eId="section-130-1"><num>(1)</num><intro><p>Section 42 of, and Schedule 1A to, the Taxes Management Act 1970, as they have effect—</p></intro><level class="para1" eId="section-130-1-a"><num>(a)</num><content><p>for the purposes of income tax and capital gains tax, as respects the year 1996-97 and subsequent years of assessment, and</p></content></level><level class="para1" eId="section-130-1-b"><num>(b)</num><content><p>for the purposes of corporation tax, as respects accounting periods ending on or after the day appointed under section 199 of the <noteRef href="#m00082" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1994 for the purposes of Chapter III of Part IV of that Act (self-assessment management provisions),</p></content></level><wrapUp><p>shall be amended in accordance with the following provisions of this section.</p></wrapUp></subsection><subsection eId="section-130-2"><num>(2)</num><intro><p>In subsection (7) of section 42 (which contains a list of provisions, claims under which must be made in accordance with subsection (6)) the following words shall cease to have effect, that is to say—</p></intro><level class="para1" eId="section-130-2-a"><num>(a)</num><content><p>in paragraph (a), “62A,” and “401,”; and</p></content></level><level class="para1" eId="section-130-2-b"><num>(b)</num><content><p>in paragraph (c), “30,”, “33,”, “48, 49,” and “124A,”.</p></content></level></subsection><subsection eId="section-130-3"><num>(3)</num><content><p>In subsection (10) of that section (section 42 to apply in relation to elections and notices as it applies in relation to claims) the words “and notices” shall cease to have effect.</p></content></subsection><subsection eId="section-130-4"><num>(4)</num><content><p>In subsection (11) of that section (Schedule 1A to apply as respects any claim, election or notice made otherwise than in a return under section 8 etc) for the words “, election or notice” there shall be substituted “or election”.</p></content></subsection><subsection eId="section-130-5"><num>(5)</num><content><p>In paragraph 1 of Schedule 1A (claims etc. not included in returns), in the definition of “claim”, for the words “means a claim, election or notice” there shall be substituted “means a claim or election”.</p></content></subsection></section><section eId="section-131"><num>131</num><heading>Interest on overdue tax</heading><subsection eId="section-131-1"><num>(1)</num><content><p><mod>Section 110 of the <noteRef href="#m00083" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1995 (interest on overdue tax) shall be deemed to have been enacted with the insertion after subsection (3) of the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(4)</num><content><p>So far as it relates to partnerships whose trades, professions or businesses were set up and commenced before 6th April 1994, subsection (1) above has effect as respects the year 1997-98 and subsequent years of assessment.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-131-2"><num>(2)</num><content><p>In subsection (3) of section 86 of the <noteRef href="#m00084" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxes Management Act 1970 (which was substituted by the said section 110), for the words “section 93” there shall be substituted the words “section 92”.</p></content></subsection><subsection eId="section-131-3"><num>(3)</num><content><p>In Schedule 19 to the <noteRef href="#m00085" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1994, paragraph 23 (which is superseded by the said section 110) shall cease to have effect.</p></content></subsection></section><section eId="section-132"><num>132</num><heading>Overdue tax and excessive payments by the Board</heading><content><p>Schedule 18 to this Act (which amends enactments relating to overdue tax or excessive payments by the Board) shall have effect.</p></content></section><section eId="section-133"><num>133</num><heading>Claims and enquiries</heading><content><p>Schedule 19 to this Act (which, for purposes connected with self-assessment, further amends provisions relating to claims and enquiries) shall have effect.</p></content></section><section eId="section-134"><num>134</num><heading>Discretions exercisable by the Board etc</heading><subsection eId="section-134-1"><num>(1)</num><content><p>Schedule 20 to this Act (which in connection with self-assessment modifies enactments by virtue of which a decision or other action affecting an assessment may be or is required to be taken by the Board, or one of their officers, before the making of the assessment) shall have effect.</p></content></subsection><subsection eId="section-134-2"><num>(2)</num><intro><p>Subject to subsection (3) below, the amendments made by that Schedule shall have effect—</p></intro><level class="para1" eId="section-134-2-a"><num>(a)</num><content><p>for the purposes of income tax and capital gains tax, as respects the year 1996-97 and subsequent years of assessment; and</p></content></level><level class="para1" eId="section-134-2-b"><num>(b)</num><content><p>for the purposes of corporation tax, as respects accounting periods ending on or after the day appointed under section 199 of the Finance Act 1994 for the purposes of Chapter III of Part IV of that Act (self-assessment management provisions).</p></content></level></subsection><subsection eId="section-134-3"><num>(3)</num><content><p>Paragraphs 22 and 23 of that Schedule shall have effect in relation to shares issued on or after 6th April 1996.</p></content></subsection></section><section eId="section-135"><num>135</num><heading>Time limits for claims etc</heading><subsection eId="section-135-1"><num>(1)</num><content><p>Schedule 21 to this Act (which in connection with self-assessment modifies enactments which impose time limits on the making of claims, elections, adjustments and assessments and the giving of notices, and enactments which provide for the giving of notice to the inspector) shall have effect.</p></content></subsection><subsection eId="section-135-2"><num>(2)</num><intro><p>Subject to subsections (3) to (5) below, the amendments made by that Schedule shall have effect—</p></intro><level class="para1" eId="section-135-2-a"><num>(a)</num><content><p>for the purposes of income tax and capital gains tax, as respects the year 1996-97 and subsequent years of assessment; and</p></content></level><level class="para1" eId="section-135-2-b"><num>(b)</num><content><p>for the purposes of corporation tax, as respects accounting periods ending on or after the day appointed under section 199 of the <noteRef href="#m00086" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1994 for the purposes of Chapter III of Part IV of that Act (self-assessment management provisions).</p></content></level></subsection><subsection eId="section-135-3"><num>(3)</num><content><p>The amendments made to the <noteRef href="#m00087" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Capital Allowances Act 1990 and the Finance Act 1994 by that Schedule, in their application to trades, professions or vocations set up and commenced before 6th April 1994, shall (so far as relating to income tax) have effect as respects the year 1997-98 and subsequent years of assessment.</p></content></subsection><subsection eId="section-135-4"><num>(4)</num><intro><p>The Capital Allowances Act 1990, as it has effect for the year 1996-97 in relation to trades, professions or vocations set up and commenced before 6th April 1994, shall (so far as relating to income tax) have effect as respects that year with the following modifications, that is to say, as if—</p></intro><level class="para1" eId="section-135-4-a"><num>(a)</num><content><p>in sections 25(3)(c), 30(1), 31(3) and 33(1) and (4), for “two years after the end of” there were substituted “the first anniversary of the 31st January next following”;</p></content></level><level class="para1" eId="section-135-4-b"><num>(b)</num><content><p>in section 37(2)(c), for “more than two years after the end of the chargeable period or its basis period” there were substituted “later than the first anniversary of the 31st January next following the year of assessment in which ends the basis period”;</p></content></level><level class="para1" eId="section-135-4-c"><num>(c)</num><content><p>in section 53(2), for “before the expiry of the period of two years beginning at the end of” there were substituted “on or before the first anniversary of the 31st January next following”;</p></content></level><level class="para1" eId="section-135-4-d"><num>(d)</num><content><p>in section 68(5), for “two years after the end of that period” there were substituted “the first anniversary of the 31st January next following the year of assessment in which the relevant period ends”;</p></content></level><level class="para1" eId="section-135-4-e"><num>(e)</num><content><p>in section 68(9A)(b), for “two years after the end of” there were substituted “the first anniversary of the 31st January next following the year of assessment in which ends”;</p></content></level><level class="para1" eId="section-135-4-f"><num>(f)</num><content><p>in section 129(2), for “not more than two years after the end of” there were substituted “on or before the first anniversary of the 31st January next following”;</p></content></level><level class="para1" eId="section-135-4-g"><num>(g)</num><content><p>in section 141(3), for “the inspector not later than two years after the end of” there were substituted “an officer of the Board on or before the first anniversary of the 31st January next following”.</p></content></level></subsection><subsection eId="section-135-5"><num>(5)</num><content><p>Section 118 of the <noteRef href="#m00088" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1994, as it has effect for the year 1996-97 in relation to trades, professions or vocations set up and commenced before 6th April 1994, shall (so far as relating to income tax) have effect as respects that year as if, in subsection (3), for “two years after the end of” there were substituted “the first anniversary of the 31st January next following”.</p></content></subsection></section><section eId="section-136"><num>136</num><heading>Appeals</heading><content><p>Schedule 22 to this Act (which makes provision, in connection with self-assessment, about appeals) shall have effect.</p></content></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-IV-chapter-V-crossheading-companies"><heading>Companies</heading><section eId="section-137"><num>137</num><heading>Schedules 13 and 16 to the Taxes Act 1988</heading><subsection eId="section-137-1"><num>(1)</num><content><p>Schedule 23 to this Act shall have effect.</p></content></subsection><subsection eId="section-137-2"><num>(2)</num><content><p>The amendments made by that Schedule shall have effect as respects return periods ending on or after the appointed day for the purposes of Chapter III of Part IV of the <noteRef href="#m00089" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1994.</p></content></subsection><subsection eId="section-137-3"><num>(3)</num><intro><p>In subsection (2) above “return period” means—</p></intro><level class="para1" eId="section-137-3-a"><num>(a)</num><content><p>so far as relating to Schedule 13 to the Taxes Act 1988, a period for which a return is required to be made under paragraph 1 of that Schedule; and</p></content></level><level class="para1" eId="section-137-3-b"><num>(b)</num><content><p>so far as relating to Schedule 16 to that Act, a period for which a return is required to be made under paragraph 2 of that Schedule.</p></content></level></subsection></section><section eId="section-138"><num>138</num><heading>Accounting periods</heading><content><p>Schedule 24 to this Act (which makes provision, in connection with self-assessment, in relation to accounting periods) shall have effect.</p></content></section><section eId="section-139"><num>139</num><heading>Surrenders of advance corporation tax</heading><content><p>Schedule 25 to this Act (which makes provision, in connection with self-assessment, about surrenders of advance corporation tax) shall have effect.</p></content></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-IV-chapter-V-crossheading-chargeable-gains"><heading>Chargeable gains</heading><section eId="section-140"><num>140</num><heading>Transfer of company’s assets to investment trust</heading><subsection eId="section-140-1"><num>(1)</num><content><p><mod>In section 101 of the <noteRef href="#m00090" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxation of Chargeable Gains Act 1992 (transfer of company’s assets to investment trust) after subsection (1) there shall be inserted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1A)</num><content><p>Any chargeable gain or allowable loss which, apart from this subsection, would accrue to the company on the sale referred to in subsection (1) above shall be treated as accruing to the company immediately before the end of the last accounting period to end before the beginning of the accounting period mentioned in that subsection.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-140-2"><num>(2)</num><content><p>This section shall have effect as respects accounting periods ending on or after the day appointed under section 199 of the <noteRef href="#m00091" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1994 for the purposes of Chapter III of Part IV of that Act (self-assessment management provisions).</p></content></subsection></section><section eId="section-141"><num>141</num><heading>Roll-over relief</heading><subsection eId="section-141-1"><num>(1)</num><intro><p>In subsection (4) of section 152 of the Taxation of Chargeable Gains Act 1992 (roll-over relief)—</p></intro><level class="para1" eId="section-141-1-a"><num>(a)</num><content><p>after the word “making” there shall be inserted the words “or amending”; and</p></content></level><level class="para1" eId="section-141-1-b"><num>(b)</num><content><p>after the word “assessments”, in the second place where it occurs, there shall be inserted the words “or amendments”.</p></content></level></subsection><subsection eId="section-141-2"><num>(2)</num><content><p><mod>After section 153 of that Act there shall be inserted the following section—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>153A</num><heading>Provisional application of sections 152 and 153</heading><subsection><num>(1)</num><intro><p>This section applies where a person carrying on a trade who for a consideration disposes of, or of his interest in, any assets (“the old assets”) declares, in his return for the chargeable period in which the disposal takes place—</p></intro><level class="para1"><num>(a)</num><content><p>that the whole or any specified part of the consideration will be applied in the acquisition of, or of an interest in, other assets (“the new assets”) which on the acquisition will be taken into use, and used only, for the purposes of the trade;</p></content></level><level class="para1"><num>(b)</num><content><p>that the acquisition will take place as mentioned in subsection (3) of section 152; and</p></content></level><level class="para1"><num>(c)</num><content><p>that the new assets will be within the classes listed in section 155.</p></content></level></subsection><subsection><num>(2)</num><content><p>Until the declaration ceases to have effect, section 152 or, as the case may be, section 153 shall apply as if the acquisition had taken place and the person had made a claim under that section.</p></content></subsection><subsection><num>(3)</num><intro><p>The declaration shall cease to have effect as follows—</p></intro><level class="para1"><num>(a)</num><content><p>if and to the extent that it is withdrawn before the relevant day, or is superseded before that day by a valid claim made under section 152 or 153, on the day on which it is so withdrawn or superseded; and</p></content></level><level class="para1"><num>(b)</num><content><p>if and to the extent that it is not so withdrawn or superseded, on the relevant day.</p></content></level></subsection><subsection><num>(4)</num><intro><p>On the declaration ceasing to have effect in whole or in part, all necessary adjustments—</p></intro><level class="para1"><num>(a)</num><content><p>shall be made by making or amending assessments or by repayment or discharge of tax; and</p></content></level><level class="para1"><num>(b)</num><content><p>shall be so made notwithstanding any limitation on the time within which assessments or amendments may be made.</p></content></level></subsection><subsection><num>(5)</num><intro><p>In this section “the relevant day” means—</p></intro><level class="para1"><num>(a)</num><content><p>in relation to capital gains tax, the third anniversary of the 31st January next following the year of assessment in which the disposal of, or of the interest in, the old assets took place;</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to corporation tax, the fourth anniversary of the last day of the accounting period in which that disposal took place.</p></content></level></subsection><subsection><num>(6)</num><content><p>Subsections (6), (8), (10) and (11) of section 152 shall apply for the purposes of this section as they apply for the purposes of that section.</p></content></subsection></section></quotedStructure></mod></p></content></subsection><subsection eId="section-141-3"><num>(3)</num><intro><p>In section 175 of that Act (replacement of business assets by members of a group)—</p></intro><level class="para1" eId="section-141-3-a"><num>(a)</num><content><p>in subsections (2A) and (2B), after the words “Section 152” there shall be inserted the words “or 153”; and</p></content></level><level class="para1" eId="section-141-3-b"><num>(b)</num><content><p>in subsection (2C), for the words “Section 152 shall not” there shall be substituted the words “Neither section 152 nor section 153 shall”.</p></content></level></subsection><subsection eId="section-141-4"><num>(4)</num><content><p>In section 246 of that Act (time of disposal or acquisition), the words from “or, if earlier” to the end shall cease to have effect.</p></content></subsection><subsection eId="section-141-5"><num>(5)</num><content><p>In subsection (5)(b) of section 247 of that Act (roll-over relief on compulsory acquisition), for the words “subsection (3)” there shall be substituted the words “subsections (3) and (4)”.</p></content></subsection><subsection eId="section-141-6"><num>(6)</num><content><p><mod>After that section there shall be inserted the following section—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>247A</num><heading>Provisional application of section 247</heading><subsection><num>(1)</num><intro><p>This section applies where a person who disposes of land (“the old land”) to an authority exercising or having compulsory powers declares, in his return for the chargeable period in which the disposal takes place—</p></intro><level class="para1"><num>(a)</num><content><p>that the whole or any specified part of the consideration for the disposal will be applied in the acquisition of other land (“the new land”);</p></content></level><level class="para1"><num>(b)</num><content><p>that the acquisition will take place as mentioned in subsection (3) of section 152; and</p></content></level><level class="para1"><num>(c)</num><content><p>that the new land will not be land excluded from section 247(1)(c) by section 248.</p></content></level></subsection><subsection><num>(2)</num><content><p>Until the declaration ceases to have effect, section 247 shall apply as if the acquisition had taken place and the person had made a claim under that section.</p></content></subsection><subsection><num>(3)</num><content><p>For the purposes of this section, subsections (3) to (5) of section 153A shall apply as if the reference to section 152 or 153 were a reference to section 247 and the reference to the old assets were a reference to the old land.</p></content></subsection><subsection><num>(4)</num><content><p>In this section “land” and “authority exercising or having compulsory powers” have the same meaning as in section 247.</p></content></subsection></section></quotedStructure></mod></p></content></subsection></section><section eId="section-142"><num>142</num><heading>Premiums for leases</heading><subsection eId="section-142-1"><num>(1)</num><content><p>Paragraph 3 of Schedule 8 to the <noteRef href="#m00092" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxation of Chargeable Gains Act 1992 (premiums for leases) shall be amended as follows.</p></content></subsection><subsection eId="section-142-2"><num>(2)</num><content><p><mod>In sub-paragraph (2), for the words “for the period” to the end there shall be substituted the words <quotedText startQuote="“">, being a premium which—</quotedText><quotedStructure endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><level class="para1"><num>(a)</num><content><p>is due when the sum is payable by the tenant; and</p></content></level><level class="para1"><num>(b)</num><content><p>where the sum is payable in lieu of rent, is in respect of the period in relation to which the sum is payable.</p></content></level></quotedStructure></mod></p></content></subsection><subsection eId="section-142-3"><num>(3)</num><content><p><mod>In sub-paragraph (3), for the words “for the period” to the end there shall be substituted the words <quotedText startQuote="“">, being a premium which—</quotedText><quotedStructure endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><level class="para1"><num>(a)</num><content><p>is due when the sum is payable by the tenant; and</p></content></level><level class="para1"><num>(b)</num><content><p>is in respect of the period from the time when the variation or waiver takes effect to the time when it ceases to have effect.</p></content></level></quotedStructure></mod></p></content></subsection><subsection eId="section-142-4"><num>(4)</num><content><p><mod>For sub-paragraphs (4) to (6) there shall be substituted the following sub-paragraphs—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><subparagraph><num>(4)</num><intro><p>Where under sub-paragraph (2) or (3) above a premium is deemed to have been received by the landlord, that shall not be the occasion of any recomputation of the gain accruing on the receipt of any other premium, and the premium shall be regarded—</p></intro><level class="para1"><num>(a)</num><content><p>in the case of a premium deemed to have been received for the surrender of a lease, as consideration for a separate transaction which is effected when the premium is deemed to be due and consists of the disposal by the landlord of his interest in the lease; and</p></content></level><level class="para1"><num>(b)</num><content><p>in any other case, as consideration for a separate transaction which is effected when the premium is deemed to be due and consists of a further part disposal of the freehold or other asset out of which the lease is granted.</p></content></level></subparagraph><subparagraph><num>(5)</num><intro><p>If under sub-paragraph (2) or (3) above a premium is deemed to have been received by the landlord, otherwise than as consideration for the surrender of the lease, and the landlord is a tenant under a lease the duration of which does not exceed 50 years, this Schedule shall apply—</p></intro><level class="para1"><num>(a)</num><content><p>as if an amount equal to the amount of that premium deemed to have been received had been given by way of consideration for the grant of the part of the sublease covered by the period in respect of which the premium is deemed to have been paid; and</p></content></level><level class="para1"><num>(b)</num><content><p>as if that consideration were expenditure incurred by the sublessee and attributable to that part of the sublease under section 38(1)(b).</p></content></level></subparagraph></quotedStructure></mod></p></content></subsection><subsection eId="section-142-5"><num>(5)</num><content><p>This section has effect as respects sums payable on or after 6th April 1996.</p></content></subsection></section></hcontainer></chapter><chapter eId="part-IV-chapter-VI"><num>Chapter VI</num><heading>Miscellaneous provisions</heading><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-IV-chapter-VI-crossheading-reliefs"><heading>Reliefs</heading><section eId="section-143"><num>143</num><heading>Annual payments under certain insurance policies</heading><subsection eId="section-143-1"><num>(1)</num><content><p><mod>After section 580 of the Taxes Act 1988 there shall be inserted the following sections—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>580A</num><heading>Relief from tax on annual payments under certain insurance policies</heading><subsection><num>(1)</num><intro><p>This section applies (subject to subsection (7)(b) below) in the case of any such annual payment under an insurance policy as—</p></intro><level class="para1"><num>(a)</num><content><p>apart from this section, would be brought into charge under Case III of Schedule D; or</p></content></level><level class="para1"><num>(b)</num><content><p>is equivalent to a description of payment brought into charge under Case III of that Schedule but (apart from this section) would be brought into charge under Case V of that Schedule.</p></content></level></subsection><subsection><num>(2)</num><intro><p>Subject to the following provisions of this section, the annual payment shall be exempt from income tax if—</p></intro><level class="para1"><num>(a)</num><content><p>it constitutes a benefit provided under so much of an insurance policy as provides insurance against a qualifying risk;</p></content></level><level class="para1"><num>(b)</num><content><p>the provisions of the policy by which insurance is provided against that risk are self-contained (within the meaning of section 580B);</p></content></level><level class="para1"><num>(c)</num><content><p>the only annual payments relating to that risk for which provision is made by that policy are payments in respect of a period throughout which the relevant conditions of payment are satisfied; and</p></content></level><level class="para1"><num>(d)</num><content><p>at all times while the policy has contained provisions relating to that risk, those provisions have been of a qualifying type.</p></content></level></subsection><subsection><num>(3)</num><intro><p>For the purposes of this section and section 580B a qualifying risk is any risk falling within either of the following descriptions, that is to say—</p></intro><level class="para1"><num>(a)</num><content><p>a risk that the insured will (or will in any specified way) become subject to, or to any deterioration in a condition resulting from, any physical or mental illness, disability, infirmity or defect;</p></content></level><level class="para1"><num>(b)</num><content><p>a risk that circumstances will arise as a result of which the insured will cease to be employed or will cease to carry on any trade, profession or vocation carried on by him.</p></content></level></subsection><subsection><num>(4)</num><intro><p>For the purposes of this section the relevant conditions of payment are satisfied in relation to payments under an insurance policy for so long as any of the following continues, that is to say—</p></intro><level class="para1"><num>(a)</num><content><p>an illness, disability, infirmity or defect which is insured against by the relevant part of the policy, and any related period of convalescence or rehabilitation;</p></content></level><level class="para1"><num>(b)</num><content><p>any period during which the insured is, in circumstances insured against by the relevant part of the policy, either unemployed or not carrying on a trade, profession or vocation;</p></content></level><level class="para1"><num>(c)</num><content><p>any period during which the income of the insured (apart from any benefits under the policy) is less, in circumstances so insured against, than it would have been if those circumstances had not arisen; or</p></content></level><level class="para1"><num>(d)</num><content><p>any period immediately following the end, as a result of the death of the insured, of any period falling within any of paragraphs (a) to (c) above;</p></content></level><wrapUp><p>and in this subsection “the relevant part of the policy” means so much of it as relates to insurance against one or more risks mentioned in subsection (3) above.</p></wrapUp></subsection><subsection><num>(5)</num><content><p>For the purposes of subsection (2)(d) above provisions relating to a qualifying risk are of a qualifying type if they are of such a description that their inclusion in any policy of insurance containing provisions relating only to a comparable risk would (apart from any reinsurance) involve the possibility for the insurer that a significant loss might be sustained on the amounts payable by way of premiums in respect of the risk, taken together with any return on the investment of those amounts.</p></content></subsection><subsection><num>(6)</num><intro><p>An annual payment shall not be exempt from income tax under this section if it is paid in accordance with a contract the whole or any part of any premiums under which have qualified for relief for the purposes of income tax by being deductible either—</p></intro><level class="para1"><num>(a)</num><content><p>in the computation of the insured’s income from any source; or</p></content></level><level class="para1"><num>(b)</num><content><p>from the insured’s income.</p></content></level></subsection><subsection><num>(7)</num><intro><p>Where a person takes out any insurance policy wholly or partly for the benefit of another and that other person pays or contributes to the payment of the premiums under that policy, then to the extent only that the benefits under the policy are attributable, on a just and reasonable apportionment, to the payments or contributions made by that other person—</p></intro><level class="para1"><num>(a)</num><content><p>that other person shall be treated for the purposes of this section and section 580B as the insured in relation to that policy;</p></content></level><level class="para1"><num>(b)</num><content><p>this section shall have effect in relation to those benefits, so far as comprised in payments to that other person or his spouse, as if the reference in subsection (1)(a) above to Case III of Schedule D included a reference to Schedule E; and</p></content></level><level class="para1"><num>(c)</num><content><p>subsection (6) above shall have effect as if the references to the premiums under the policy were references only to the payments or contributions made by that other person in respect of the premiums.</p></content></level></subsection><subsection><num>(8)</num><intro><p>Where—</p></intro><level class="para1"><num>(a)</num><content><p>payments are made to or in respect of any person (“the beneficiary”) under any insurance policy (“the individual policy”),</p></content></level><level class="para1"><num>(b)</num><content><p>the rights under the individual policy in accordance with which the payments are made superseded, with effect from the time when another policy ((“the employer’s policy”) ceased to apply to that person, any rights conferred under that other policy,</p></content></level><level class="para1"><num>(c)</num><content><p>the employer’s policy is or was a policy entered into wholly or partly for the benefit of persons holding office or employment under any person (“the employer”) against risks falling within subsection (3)(a) above,</p></content></level><level class="para1"><num>(d)</num><content><p>the individual policy is one entered into in pursuance of, or in accordance with, any provisions contained in the employer’s policy, and</p></content></level><level class="para1"><num>(e)</num><content><p>the beneficiary has ceased to hold office or employment under the employer as a consequence of the occurrence of anything insured against by so much of the employer’s policy as related to risks falling within subsection (3)(a) above,</p></content></level><wrapUp><p>this section shall have effect as if the employer’s policy and the individual policy were one policy.</p></wrapUp></subsection><subsection><num>(9)</num><intro><p>In the preceding provisions of this section references to the insured, in relation to any insurance policy, include references to—</p></intro><level class="para1"><num>(a)</num><content><p>the insured’s spouse; and</p></content></level><level class="para1"><num>(b)</num><content><p>in the case of a policy entered into wholly or partly for purposes connected with the meeting of liabilities arising from an actual or proposed transaction identified in the policy, any person on whom any of those liabilities will fall jointly with the insured or his spouse.</p></content></level></subsection><subsection><num>(10)</num><content><p>References in this section and section 580B to insurance against a risk include references to any insurance for the provision (otherwise than by way of indemnity) of any benefits against that risk, and references to what is insured against by a policy shall be construed accordingly.</p></content></subsection></section><section><num>580B</num><heading>Meaning of “self-contained”
for the purposes of s.580A</heading><subsection><num>(1)</num><content><p>For the purposes of section 580A the provisions of an insurance policy by which insurance is provided against a qualifying risk are self-contained unless subsection (2) or (3) below applies to the provisions of that policy so far as they relate to that risk; but, in determining whether either of those subsections so applies, regard shall be had to all the persons for whose benefit insurance is provided by that policy against that risk.</p></content></subsection><subsection><num>(2)</num><intro><p>This subsection applies to the provisions of an insurance policy so far as they relate to a qualifying risk if—</p></intro><level class="para1"><num>(a)</num><content><p>that insurance policy contains provision for the payment of benefits other than those relating to that risk;</p></content></level><level class="para1"><num>(b)</num><content><p>the terms of the policy so far as they relate to that risk, or the manner in which effect is given to those terms, would have been significantly different if the only benefits under the policy had been those relating to that risk; and</p></content></level><level class="para1"><num>(c)</num><content><p>that difference is not one relating exclusively to the fact that the amount of benefits receivable by or in respect of any person under the policy is applied for reducing the amount of other benefits payable to or in respect of that person under the policy.</p></content></level></subsection><subsection><num>(3)</num><intro><p>This subsection applies to the provisions of an insurance policy (“the relevant policy”) so far as they relate to a qualifying risk if—</p></intro><level class="para1"><num>(a)</num><content><p>the insured under that policy is, or has been, the insured under one or more other policies;</p></content></level><level class="para1"><num>(b)</num><content><p>that other policy, or each of those other policies, is in force or has been in force at a time when the relevant policy was in force or at the time immediately before the relevant policy was entered into;</p></content></level><level class="para1"><num>(c)</num><content><p>the terms of the relevant policy so far as relating to that risk, or the manner in which effect is given to those terms, would have been significantly different if the other policy or policies had not been entered into; and</p></content></level><level class="para1"><num>(d)</num><content><p>that difference is not one relating exclusively to the fact that the amount of benefits receivable by or in respect of any person under the other policy, or any of the other policies, is applied for reducing the amount of benefits payable to or in respect of that person under the relevant policy.</p></content></level></subsection><subsection><num>(4)</num><content><p>In subsections (2)(b) and (3)(c) above the references to the terms of a policy so far as they relate to a risk include references to the terms fixing any amount payable by way of premium or otherwise in respect of insurance against that risk.</p></content></subsection></section></quotedStructure></mod></p></content></subsection><subsection eId="section-143-2"><num>(2)</num><intro><p>This section has effect for the year 1996-97 and subsequent years of assessment in relation to—</p></intro><level class="para1" eId="section-143-2-a"><num>(a)</num><content><p>any payment which under the policy in question falls to be paid at any time on or after 6th April 1996; and</p></content></level><level class="para1" eId="section-143-2-b"><num>(b)</num><content><p>any payment not falling within paragraph (a) above in relation to which the conditions mentioned in subsection (3)(a) and (b) below are satisfied.</p></content></level></subsection><subsection eId="section-143-3"><num>(3)</num><intro><p>This section shall also be deemed to have had effect for earlier years of assessment in relation to any payment in relation to which the following conditions are satisfied, that is to say—</p></intro><level class="para1" eId="section-143-3-a"><num>(a)</num><content><p>the payment was made under a policy in relation to which the requirements of subsection (4) below were fulfilled; and</p></content></level><level class="para1" eId="section-143-3-b"><num>(b)</num><content><p>the policy in question provided for the right to annual payments under the policy to cease when all the liabilities in question were discharged.</p></content></level></subsection><subsection eId="section-143-4"><num>(4)</num><intro><p>The requirements of this subsection are fulfilled in relation to any policy if—</p></intro><level class="para1" eId="section-143-4-a"><num>(a)</num><content><p>the only or main purpose of the insurance under the policy was to secure that the insured would be able to meet (in whole or in part) liabilities that would or might arise from any transaction;</p></content></level><level class="para1" eId="section-143-4-b"><num>(b)</num><content><p>the policy expressly identified the transaction or, as the case may be, all the transactions (whether actual or proposed) by reference to which the insurance was taken out; and</p></content></level><level class="para1" eId="section-143-4-c"><num>(c)</num><content><p>none of the transactions which would or might give rise to the liabilities mentioned in paragraph (a) above could be one entered into after any of the circumstances insured against arose.</p></content></level></subsection><subsection eId="section-143-5"><num>(5)</num><content><p>In subsection (4) above “transaction” includes any arrangements for the provision of credit or for the supply of services to residential premises.</p></content></subsection></section><section eId="section-144"><num>144</num><heading>Vocational training</heading><subsection eId="section-144-1"><num>(1)</num><content><p>Section 32 of the <noteRef href="#m00093" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1991 (vocational training relief) shall be amended in accordance with the following provisions of this section.</p></content></subsection><subsection eId="section-144-2"><num>(2)</num><content><p><mod>In subsection (1) (application of section) for paragraph (ca) (individual has attained school leaving age etc at time of paying for the course) there shall be substituted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(ca)</num><intro><p>at the time the payment is made, the individual—</p></intro><level class="para2"><num>(i)</num><content><p>in a case where the qualifying course of vocational training is such a course by virtue only of paragraph (b) of subsection (10) below, has attained the age of thirty, or</p></content></level><level class="para2"><num>(ii)</num><content><p>in any other case, has attained school-leaving age and, if under the age of nineteen, is not a person who is being provided with full-time education at a school,</p></content></level></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-144-3"><num>(3)</num><content><p><mod>For subsection (10) (meaning of “qualifying course of vocational training”) there shall be substituted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(10)</num><intro><p>In this section “qualifying course of vocational training” means—</p></intro><level class="para1"><num>(a)</num><intro><p>any programme of activity capable of counting towards a qualification—</p></intro><level class="para2"><num>(i)</num><content><p>accredited as a National Vocational Qualification by the National Council for Vocational Qualifications; or</p></content></level><level class="para2"><num>(ii)</num><content><p>accredited as a Scottish Vocational Qualification by the Scottish Vocational Education Council; or</p></content></level></level><level class="para1"><num>(b)</num><intro><p>any course of training which—</p></intro><level class="para2"><num>(i)</num><content><p>satisfies the conditions set out in the paragraphs of section 589(1) of the Taxes Act 1988 (qualifying courses of training etc),</p></content></level><level class="para2"><num>(ii)</num><content><p>requires participation on a full-time or substantially full-time basis, and</p></content></level><level class="para2"><num>(iii)</num><content><p>extends for a period which consists of or includes four consecutive weeks,</p></content></level><wrapUp><p>but treating any time devoted to study in connection with the course as time devoted to the practical application of skills or knowledge.</p></wrapUp></level></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-144-4"><num>(4)</num><content><p>This section applies to payments made on or after 6th May 1996.</p></content></subsection></section><section eId="section-145"><num>145</num><heading>Personal reliefs for non-resident EEA nationals</heading><subsection eId="section-145-1"><num>(1)</num><content><p>In section 278(2)(a) of the Taxes Act 1988 (exclusion of non-residents from entitlement to personal reliefs not to apply to Commonwealth citizens or citizens of the Republic of Ireland), for “a citizen of the Republic of Ireland” there shall be substituted “an EEA national”.</p></content></subsection><subsection eId="section-145-2"><num>(2)</num><content><p><mod>After subsection (8) of that section (claims to be made to the Board) there shall be added the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(9)</num><content><p>In this section “EEA national” means a national of any State, other than the United Kingdom, which is a Contracting Party to the Agreement on the European Economic Area signed at Oporto on 2nd May 1992, as adjusted by the Protocol signed at Brussels on 17th March 1993.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-145-3"><num>(3)</num><content><p>This section has effect for the year 1996-97 and subsequent years of assessment.</p></content></subsection></section><section eId="section-146"><num>146</num><heading>Exemptions for charities</heading><subsection eId="section-146-1"><num>(1)</num><content><p>Section 505(1) of the Taxes Act 1988 (exemptions for charities) shall be amended as follows.</p></content></subsection><subsection eId="section-146-2"><num>(2)</num><content><p><mod>For paragraph (a) (rents etc.) there shall be substituted the following paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(a)</num><intro><p>exemption from tax under Schedules A and D in respect of any profits or gains arising in respect of rents or other receipts from an estate, interest or right in or over any land (whether situated in the United Kingdom or elsewhere) to the extent that the profits or gains—</p></intro><level class="para2"><num>(i)</num><content><p>arise in respect of rents or receipts from an estate, interest or right vested in any person for charitable purposes; and</p></content></level><level class="para2"><num>(ii)</num><content><p>are applied to charitable purposes only;</p></content></level></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-146-3"><num>(3)</num><content><p><mod>For sub-paragraph (ii) of paragraph (c) (yearly interest and annual payments) there shall be substituted the following sub-paragraphs—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para2"><num>(ii)</num><content><p>from tax under Case III of Schedule D,</p></content></level><level class="para2"><num>(iia)</num><content><p>from tax under Case IV or V of Schedule D in respect of income equivalent to income chargeable under Case III of that Schedule but arising from securities or other possessions outside the United Kingdom,</p></content></level><level class="para2"><num>(iib)</num><content><p>from tax under Case V of Schedule D in respect of income consisting in any such dividend or other distribution of a company not resident in the United Kingdom as would be chargeable to tax under Schedule F if the company were so resident, and</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-146-4"><num>(4)</num><content><p>In paragraph (e) (trading profits), after “by a charity” there shall be inserted “(whether in the United Kingdom or elsewhere)”.</p></content></subsection><subsection eId="section-146-5"><num>(5)</num><intro><p>This section has effect—</p></intro><level class="para1" eId="section-146-5-a"><num>(a)</num><content><p>for the purposes of income tax, for the year 1996-97 and subsequent years of assessment; and</p></content></level><level class="para1" eId="section-146-5-b"><num>(b)</num><content><p>for the purposes of corporation tax, in relation to accounting periods ending after 31st March 1996.</p></content></level></subsection></section><section eId="section-147"><num>147</num><heading>Withdrawal of relief for Class 4 contributions</heading><subsection eId="section-147-1"><num>(1)</num><content><p>In section 617 of the Taxes Act 1988 (social security benefits and contributions), subsection (5) (relief for Class 4 contributions) shall cease to have effect.</p></content></subsection><subsection eId="section-147-2"><num>(2)</num><intro><p>In consequence of the provision made by subsection (1) above, in paragraph 3(2) of Schedule 2 to—</p></intro><level class="para1" eId="section-147-2-a"><num>(a)</num><content><p>the <noteRef href="#m00094" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Social Security Contributions and Benefits Act 1992, and</p></content></level><level class="para1" eId="section-147-2-b"><num>(b)</num><content><p>the <noteRef href="#m00095" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Social Security Contributions and Benefits (Northern Ireland) Act 1992,</p></content></level><wrapUp><p>the words “(e) section 617(5) (relief for Class 4 contributions);” shall be omitted.</p></wrapUp></subsection><subsection eId="section-147-3"><num>(3)</num><content><p>This section shall have effect in relation to the year 1996-97 and subsequent years of assessment.</p></content></subsection></section><section eId="section-148"><num>148</num><heading>Mis-sold personal pensions etc</heading><subsection eId="section-148-1"><num>(1)</num><content><p>Income tax shall not be chargeable on any payment falling within subsection (3) or (5) below.</p></content></subsection><subsection eId="section-148-2"><num>(2)</num><content><p>Receipt of a payment falling within subsection (3) below shall not be regarded for the purposes of capital gains tax as the disposal of an asset.</p></content></subsection><subsection eId="section-148-3"><num>(3)</num><intro><p>A payment falls within this subsection if it is a capital sum by way of compensation for loss suffered, or reasonably likely to be suffered, by a person in a case where that person, or some other person, acting in reliance on bad investment advice at least some of which was given during the period beginning with 29th April 1988 and ending with 30th June 1994,—</p></intro><level class="para1" eId="section-148-3-a"><num>(a)</num><content><p>has, while eligible, or reasonably likely to become eligible, to be a member of an occupational pension scheme, instead become a member of a personal pension scheme or entered into a retirement annuity contract;</p></content></level><level class="para1" eId="section-148-3-b"><num>(b)</num><content><p>has ceased to be a member of, or to pay contributions to, an occupational pension scheme and has instead become a member of a personal pension scheme or entered into a retirement annuity contract;</p></content></level><level class="para1" eId="section-148-3-c"><num>(c)</num><content><p>has transferred to a personal pension scheme accrued rights of his under an occupational pension scheme; or</p></content></level><level class="para1" eId="section-148-3-d"><num>(d)</num><content><p>has ceased to be a member of an occupational pension scheme and has instead (by virtue of such a provision as is mentioned in section 591(2)(g) of the Taxes Act 1988) entered into arrangements for securing relevant benefits by means of an annuity contract.</p></content></level></subsection><subsection eId="section-148-4"><num>(4)</num><content><p>A payment chargeable to income tax apart from subsection (1) above may nevertheless be regarded as a capital sum for the purpose of determining whether it falls within subsection (3) above.</p></content></subsection><subsection eId="section-148-5"><num>(5)</num><intro><p>A payment falls within this subsection if and to the extent that it is a payment of interest, on the whole or any part of a capital sum such as is mentioned in subsection (3) above, for a period ending on or before the earliest date on which a determination (whether or not subsequently varied on an appeal or in any other proceedings) of the amount of the particular capital sum in question is made, whether by agreement or by a decision of—</p></intro><level class="para1" eId="section-148-5-a"><num>(a)</num><content><p>a court, tribunal or commissioner,</p></content></level><level class="para1" eId="section-148-5-b"><num>(b)</num><content><p>an arbitrator or (in Scotland) arbiter, or</p></content></level><level class="para1" eId="section-148-5-c"><num>(c)</num><content><p>any other person appointed for the purpose.</p></content></level></subsection><subsection eId="section-148-6"><num>(6)</num><intro><p>In this section—</p></intro><hcontainer name="definition"><intro><p>“bad investment advice” means investment advice in respect of which an action against the person who gave it has been, or may be, brought—</p></intro><level class="para1"><num>(a)</num><content><p>in or for negligence;</p></content></level><level class="para1"><num>(b)</num><content><p>for breach of contract;</p></content></level><level class="para1"><num>(c)</num><content><p>by reason of a breach of a fiduciary obligation; or</p></content></level><level class="para1"><num>(d)</num><content><p>by reason of a contravention which is actionable under section 62 of the <noteRef href="#m00096" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Financial Services Act 1986;</p></content></level></hcontainer><hcontainer name="definition"><content><p>“investment advice” means advice such as is mentioned in paragraph 15 of Schedule 1 to the <noteRef href="#m00097" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Financial Services Act 1986;</p></content></hcontainer><hcontainer name="definition"><intro><p>“occupational pension scheme” means—</p></intro><level class="para1"><num>(a)</num><content><p>a scheme approved, or being considered for approval, under Chapter I of Part XIV of the Taxes Act 1988 (retirement benefit schemes);</p></content></level><level class="para1"><num>(b)</num><content><p>a relevant statutory scheme, as defined in section 611A(1) of that Act; or</p></content></level><level class="para1"><num>(c)</num><content><p>a fund to which section 608 of that Act applies (superannuation funds approved before 6th April 1980 etc);</p></content></level></hcontainer><hcontainer name="definition"><content><p>“personal pension scheme” has the meaning given by section 630(1) of the Taxes Act 1988;</p></content></hcontainer><hcontainer name="definition"><content><p>“relevant benefits” has the meaning given by section 612(1) of the Taxes Act 1988;</p></content></hcontainer><hcontainer name="definition"><content><p>“retirement annuity contract” means a contract made before 1st July 1988 and approved by the Board under or by virtue of any provision of Chapter III of Part XIV of the Taxes Act 1988.</p></content></hcontainer></subsection><subsection eId="section-148-7"><num>(7)</num><content><p>This section shall have effect, and be taken always to have had effect, in relation to any payment falling within subsection (3) or (5) above, whether made before or after the passing of this Act.</p></content></subsection></section><section eId="section-149"><num>149</num><heading>Annual payments in residuary cases</heading><subsection eId="section-149-1"><num>(1)</num><intro><p>Section 347A of the Taxes Act 1988 (annual payments not a charge on the income of a payer) shall apply to any payment made on or after 6th April 1996—</p></intro><level class="para1" eId="section-149-1-a"><num>(a)</num><content><p>in pursuance of any obligation which falls within section 36(4)(a) of the <noteRef href="#m00098" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1988 (existing obligations under certain court orders), and</p></content></level><level class="para1" eId="section-149-1-b"><num>(b)</num><content><p>for the benefit, maintenance or education of a person (whether or not the person to whom the payment is made) who attained the age of 21 before 6th April 1994,</p></content></level><wrapUp><p>as if that obligation were not an existing obligation within the definition contained in section 36(4) of the Finance Act 1988.</p></wrapUp></subsection><subsection eId="section-149-2"><num>(2)</num><content><p>Subsection (1) above does not apply to any payment to which section 38 of the Finance Act 1988 (treatment of certain maintenance payments under existing obligations) applies.</p></content></subsection></section><section eId="section-150"><num>150</num><heading>Income tax exemption for periodical payments of damages and compensation for personal injury</heading><subsection eId="section-150-1"><num>(1)</num><content><p>The sections set out in Schedule 26 to this Act shall be inserted after section 329 of the <noteRef href="#m00099" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxes Act 1988.</p></content></subsection><subsection eId="section-150-2"><num>(2)</num><content><p>The first of those sections supersedes sections 329A and 329B inserted by the Finance Act 1995 and applies to payments received after the passing of this Act irrespective of when the agreement or order referred to in that section was made or took effect.</p></content></subsection><subsection eId="section-150-3"><num>(3)</num><content><p>Subsections (1) and (2) of the second of those sections supersede section 329C inserted by the <noteRef href="#m00100" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Criminal Injuries Compensation Act 1995 and apply to payments received after the passing of that Act.</p></content></subsection><subsection eId="section-150-4"><num>(4)</num><content><p>The repeal of sections 329A and 329B does not affect the operation of those sections in relation to payments received before the passing of this Act.</p></content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-IV-chapter-VI-crossheading-taxation-of-benefits"><heading>Taxation of benefits</heading><section eId="section-151"><num>151</num><heading>Benefits under pilot schemes</heading><subsection eId="section-151-1"><num>(1)</num><intro><p>The Treasury may by order make provision for the Income Tax Acts to have effect in relation to any amount of benefit payable by virtue of a Government pilot scheme as if it was, as they think fit, either—</p></intro><level class="para1" eId="section-151-1-a"><num>(a)</num><content><p>wholly or partly exempt from income tax and, accordingly, to be disregarded in computing the amount of any receipts brought into account for income tax purposes; or</p></content></level><level class="para1" eId="section-151-1-b"><num>(b)</num><content><p>to the extent specified in the order, to be brought into account for the purposes of income tax as income of a description so specified or as a receipt of a description so specified.</p></content></level></subsection><subsection eId="section-151-2"><num>(2)</num><content><p>The Treasury may by order provide for any amount of benefit payable by virtue of a Government pilot scheme to be left out of account, to the extent specified in the order, in the determination for the purposes of section 153 of the <noteRef href="#m00101" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Capital Allowances Act 1990 (subsidies etc.) of how far any expenditure has been or is to be met directly or indirectly by the Crown or by an authority or person other than the person actually incurring it.</p></content></subsection><subsection eId="section-151-3"><num>(3)</num><intro><p>In this section “Government pilot scheme” means any arrangements (whether or not contained in a scheme) which—</p></intro><level class="para1" eId="section-151-3-a"><num>(a)</num><content><p>are made, under any enactment or otherwise, by the Secretary of State or any Northern Ireland department;</p></content></level><level class="para1" eId="section-151-3-b"><num>(b)</num><intro><p>make provision for or about the payment of amounts of benefit either—</p></intro><level class="para2" eId="section-151-3-b-i"><num>(i)</num><content><p>for purposes that are similar to those for which any social security or comparable benefit is payable; or</p></content></level><level class="para2" eId="section-151-3-b-ii"><num>(ii)</num><content><p>for purposes connected with the carrying out of any functions of the Secretary of State or any such department in relation to employment or training for employment;</p></content></level></level><level class="para1" eId="section-151-3-c"><num>(c)</num><content><p>are arrangements relating to a temporary experimental period; and</p></content></level><level class="para1" eId="section-151-3-d"><num>(d)</num><content><p>are made wholly or partly for the purpose of facilitating a decision as to whether, or to what extent, it is desirable for provision to be made on a permanent basis for or in relation to any benefit.</p></content></level></subsection><subsection eId="section-151-4"><num>(4)</num><content><p>In subsection (3)(b) above the reference to making provision for or about the payment of amounts of benefit for purposes that are similar to those for which any social security or comparable benefit is payable shall include a reference to making provision by virtue of which there is a modification of the conditions of entitlement to, or the conditions for the payment of, an existing social security or comparable benefit.</p></content></subsection><subsection eId="section-151-5"><num>(5)</num><intro><p>An order under this section may—</p></intro><level class="para1" eId="section-151-5-a"><num>(a)</num><content><p>make different provision for different cases, and</p></content></level><level class="para1" eId="section-151-5-b"><num>(b)</num><content><p>contain such incidental, supplemental, consequential and transitional provision (including provision modifying provision made by or under the Income Tax Acts) as the Treasury may think fit.</p></content></level></subsection><subsection eId="section-151-6"><num>(6)</num><content><p>In this section “benefit” includes any allowance, grant or other amount the whole or any part of which is payable directly or indirectly out of public funds.</p></content></subsection><subsection eId="section-151-7"><num>(7)</num><intro><p>The power to make an order under this section—</p></intro><level class="para1" eId="section-151-7-a"><num>(a)</num><content><p>shall be exercisable for the year 1996-97 and subsequent years of assessment; and</p></content></level><level class="para1" eId="section-151-7-b"><num>(b)</num><content><p>so far as exercisable for the year 1996-97, shall be exercisable in relation to benefits, allowances and other amounts paid at times on or after 6th April 1996 but before the making of the order.</p></content></level></subsection><subsection eId="section-151-8"><num>(8)</num><content><p>The Treasury shall not make an order under this section containing any such provision as is mentioned in subsection (1)(b) above unless a draft of the order has been laid before, and approved by a resolution of, the House of Commons.</p></content></subsection></section><section eId="section-152"><num>152</num><heading>Jobfinder’s grant</heading><subsection eId="section-152-1"><num>(1)</num><content><p>The Income Tax Acts shall have effect, and be deemed always to have had effect, as if jobfinder’s grant were exempt from income tax and, accordingly, were to be disregarded in computing the amount of any receipts brought into account for income tax purposes.</p></content></subsection><subsection eId="section-152-2"><num>(2)</num><content><p>In this section “jobfinder’s grant” means grant paid under that name by virtue of arrangements made in pursuance of section 2 of the <noteRef href="#m00102" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Employment and Training Act 1973 or section 1 of the <noteRef href="#m00103" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Employment and Training Act (Northern Ireland) 1950 (arrangements for assisting persons to select, train for, obtain or retain employment).</p></content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-IV-chapter-VI-crossheading-investments"><heading>Investments</heading><section eId="section-153"><num>153</num><heading>Foreign income dividends</heading><content><p>Schedule 27 to this Act (which makes provision relating to foreign income dividends) shall have effect.</p></content></section><section eId="section-154"><num>154</num><heading>FOTRA securities</heading><subsection eId="section-154-1"><num>(1)</num><content><p>The modifications which, under section 60 of the <noteRef href="#m00104" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1940, may be made for the purposes of any issue of securities to the conditions about tax exemption specified in section 22 of the <noteRef href="#m00105" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance (No. 2) Act 1931 shall include a modification by virtue of which the tax exemption contained in any condition of the issue applies, as respects capital, irrespective of where the person with the beneficial ownership of the securities is domiciled.</p></content></subsection><subsection eId="section-154-2"><num>(2)</num><content><p>Subject to subsections (3) to (5) below, nothing in the Tax Acts shall impose any charge to tax on any person in respect of so much of any profits or gains arising from a FOTRA security, or from any loan relationship represented by a FOTRA security, as is expressed to be exempt from tax in the tax exemption condition applying to that security.</p></content></subsection><subsection eId="section-154-3"><num>(3)</num><content><p>Exemption from tax shall not be conferred by virtue of subsection (2) above in relation to any security unless the requirements imposed as respects that exemption by the conditions with which the security is issued (including any requirement as to the making of a claim) are complied with.</p></content></subsection><subsection eId="section-154-4"><num>(4)</num><content><p>The tax exemption condition of a FOTRA security shall not be taken to confer any exemption from any charge to tax imposed by virtue of the provisions of Chapter IA of Part XV or Chapter III of Part XVII of the Taxes Act 1988 (anti-avoidance provisions for residents etc.)</p></content></subsection><subsection eId="section-154-5"><num>(5)</num><content><p>Nothing in this section shall entitle any person to any repayment of tax which he has not claimed within the time limit which would be applicable under the Tax Acts (apart from this section) to a claim for the repayment of that tax.</p></content></subsection><subsection eId="section-154-6"><num>(6)</num><intro><p>A person with the beneficial ownership of a FOTRA security who would, by virtue of this section, be exempt from tax in respect of some or all of the profits and gains arising from that security, or from any loan relationship represented by it, shall not be entitled for the purposes of income tax or corporation tax to bring into account any amount—</p></intro><level class="para1" eId="section-154-6-a"><num>(a)</num><content><p>in respect of changes in the value of that security;</p></content></level><level class="para1" eId="section-154-6-b"><num>(b)</num><content><p>as expenses or disbursements incurred in, or in connection with, the holding of the security or any transaction relating to the security; or</p></content></level><level class="para1" eId="section-154-6-c"><num>(c)</num><content><p>as a debit given, in respect of any loan relationship represented by that security, by any provision of Chapter II of this Part of this Act in respect of such a relationship.</p></content></level></subsection><subsection eId="section-154-7"><num>(7)</num><content><p>Schedule 28 to this Act (which contains amendments consequential on the provisions of this section) shall have effect.</p></content></subsection><subsection eId="section-154-8"><num>(8)</num><intro><p>References in this section to a FOTRA security are references to—</p></intro><level class="para1" eId="section-154-8-a"><num>(a)</num><content><p>any security issued with such a condition about exemption from taxation as is authorised in relation to its issue by virtue of section 22 of the <noteRef href="#m00106" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance (No. 2) Act 1931; or</p></content></level><level class="para1" eId="section-154-8-b"><num>(b)</num><content><p>any 3½% War Loan 1952 Or After which was issued with a condition authorised by virtue of section 47 of the <noteRef href="#m00107" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance (No. 2) Act 1915;</p></content></level><wrapUp><p>and references, in relation to such a security, to the tax exemption condition shall be construed accordingly.</p></wrapUp></subsection><subsection eId="section-154-9"><num>(9)</num><intro><p>This section and Schedule 28 to this Act shall have effect—</p></intro><level class="para1" eId="section-154-9-a"><num>(a)</num><content><p>for the purposes of income tax, for the year 1996-97 and subsequent years of assessment; and</p></content></level><level class="para1" eId="section-154-9-b"><num>(b)</num><content><p>for the purposes of corporation tax, for accounting periods ending after 31st March 1996.</p></content></level></subsection></section><section eId="section-155"><num>155</num><heading>Directions for payment without deduction of tax</heading><content><p><mod>After section 51 of the Taxes Act 1988 there shall be inserted the following section—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>51AA</num><heading>Commencement of direction under section 50 or 51</heading><content><p>A direction under section 50 or 51 that any security shall be deemed to have been issued subject to the condition that the interest thereon shall be paid without deduction of tax may provide that the direction is to have effect in relation only to payments of interest made on or after such date as may be specified in the direction.</p></content></section></quotedStructure></mod></p></content></section><section eId="section-156"><num>156</num><heading>Paying and collecting agents etc</heading><content><p>Schedule 29 to this Act (which amends the rules relating to paying and collecting agents) shall have effect.</p></content></section><section eId="section-157"><num>157</num><heading>Stock lending fees</heading><subsection eId="section-157-1"><num>(1)</num><content><p><mod>After section 129A of the Taxes Act 1988 (interest on cash collateral paid in connection with stock lending arrangements) there shall be inserted the following section—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>129B</num><heading>Stock lending fees</heading><subsection><num>(1)</num><content><p>The income which, as income deriving from investments of a description specified in any of the relevant provisions, is eligible for relief from tax by virtue of that provision shall be taken to include any relevant stock lending fee.</p></content></subsection><subsection><num>(2)</num><content><p>For the purposes of this section the relevant provisions are sections 592(2), 608(2)(a), 613(4), 614(3), 620(6) and 643(2).</p></content></subsection><subsection><num>(3)</num><content><p>In this section “relevant stock lending fee”, in relation to investments of any description, means any amount, in the nature of a fee, which is payable in connection with an approved stock lending arrangement relating to investments which, but for any transfer under the arrangement, would be investments of that description.</p></content></subsection><subsection><num>(4)</num><content><p>In this section “approved stock lending arrangement” has the same meaning as in Schedule 5A.</p></content></subsection></section></quotedStructure></mod></p></content></subsection><subsection eId="section-157-2"><num>(2)</num><content><p>This section has effect in relation to any arrangements entered into on or after 2nd January 1996.</p></content></subsection></section><section eId="section-158"><num>158</num><heading>Transfers on death under the accrued income scheme</heading><subsection eId="section-158-1"><num>(1)</num><content><p><mod>In section 710(5) of the Taxes Act 1988 (meaning of “transfer” in sections 711 to 728), after “or otherwise” there shall be inserted <quotedText startQuote="“">, but—</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(a)</num><content><p>does not include the vesting of securities in a person’s personal representatives on his death; and</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-158-2"><num>(2)</num><content><p>Subsection (1) of section 721 of that Act (transfer of securities on death) shall cease to have effect.</p></content></subsection><subsection eId="section-158-3"><num>(3)</num><content><p><mod>For subsection (2) of that section (transfers by personal representatives to legatees) there shall be substituted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(2)</num><intro><p>Where—</p></intro><level class="para1"><num>(a)</num><content><p>an individual who is entitled to securities dies, and</p></content></level><level class="para1"><num>(b)</num><content><p>in the interest period in which the individual died, the securities are transferred by his personal representatives to a legatee,</p></content></level><wrapUp><p>section 713 shall not apply to the transfer.</p></wrapUp></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-158-4"><num>(4)</num><content><p>Subsection (4) of that section (interest period treated as ending with death) shall cease to have effect.</p></content></subsection><subsection eId="section-158-5"><num>(5)</num><content><p>This section has effect as respects deaths on or after 6th April 1996.</p></content></subsection></section><section eId="section-159"><num>159</num><heading>Manufactured payments, repos, etc</heading><subsection eId="section-159-1"><num>(1)</num><content><p>Sections 729, 737A(2)(b) and 786(4) of the Taxes Act 1988 (provisions applying to sale and repurchase agreements) shall cease to have effect except in relation to cases where the initial agreement to sell or transfer the securities or other property was made before the appointed day.</p></content></subsection><subsection eId="section-159-2"><num>(2)</num><intro><p>In section 737 of that Act—</p></intro><level class="para1" eId="section-159-2-a"><num>(a)</num><content><p>in subsection (5) (manufactured dividends paid to UK residents by non-residents), for the words from “a person resident in the United Kingdom” to “the United Kingdom recipient shall” there shall be substituted “a United Kingdom recipient, that recipient shall”; and</p></content></level><level class="para1" eId="section-159-2-b"><num>(b)</num><content><p><mod>after that subsection there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(5AAA)</num><intro><p>For the purposes of subsection (5) above a person who receives a manufactured dividend is a United Kingdom recipient if—</p></intro><level class="para1"><num>(a)</num><content><p>he is resident in the United Kingdom; or</p></content></level><level class="para1"><num>(b)</num><content><p>he is not so resident but receives that dividend for the purposes of a trade carried on through a branch or agency in the United Kingdom.</p></content></level></subsection></quotedStructure></mod></p></content></level></subsection><subsection eId="section-159-3"><num>(3)</num><content><p><mod>In section 737C of that Act (deemed manufactured payments), the following subsection shall be inserted after subsection (11A) in relation to cases where the initial agreement to sell the securities is made on or after the appointed day, that is to say—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(11B)</num><intro><p>The preceding provisions of this section shall have effect in cases where paragraph 2, 3 or 4 of Schedule 23A would apply by virtue of section 737A(5) but for paragraph 5 of that Schedule as they have effect in a case where the paragraph in question is not disapplied by paragraph 5; and where—</p></intro><level class="para1"><num>(a)</num><content><p>the gross amount of the deemed manufactured interest, or</p></content></level><level class="para1"><num>(b)</num><content><p>the gross amount of the deemed manufactured overseas dividend,</p></content></level><wrapUp><p>falls to be calculated in such a case under subsection (8) or (11) above, it shall be so calculated by reference to the provisions of paragraph 3 or 4 of Schedule 23A that would have applied but for paragraph 5 of that Schedule.</p></wrapUp></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-159-4"><num>(4)</num><content><p>In sub-paragraph (3) of paragraph 4 of Schedule 23A to that Act (manufactured overseas dividends paid to UK residents by non-residents), for the words from “a person resident in the United Kingdom” to “the United Kingdom recipient shall” there shall be substituted “a United Kingdom recipient, that recipient shall”.</p></content></subsection><subsection eId="section-159-5"><num>(5)</num><content><p><mod>After that sub-paragraph there shall be inserted the following sub-paragraphs—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(3A)</num><intro><p>For the purposes of sub-paragraph (3) above a person who receives a manufactured overseas dividend is a United Kingdom recipient if—</p></intro><level class="para1"><num>(a)</num><content><p>he is resident in the United Kingdom; or</p></content></level><level class="para1"><num>(b)</num><content><p>he is not so resident but receives that dividend for the purposes of a trade carried on through a branch or agency in the United Kingdom.</p></content></level></subsection><subsection><num>(3B)</num><intro><p>Dividend manufacturing regulations may make provision, in relation to cases falling within sub-paragraph (3) above, for the amount of tax required under that sub-paragraph to be taken to be reduced, to such extent and for such purposes as may be determined under the regulations, by reference to amounts of overseas tax charged on, or in respect of—</p></intro><level class="para1"><num>(a)</num><content><p>the making of the manufactured overseas dividend; or</p></content></level><level class="para1"><num>(b)</num><content><p>the overseas dividend of which the manufactured overseas dividend is representative.</p></content></level></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-159-6"><num>(6)</num><content><p><mod>In sub-paragraph (7) of paragraph 4 of that Schedule (regulations for off-setting), for the words from “against” to “and account” in the words after paragraph (b) there shall be substituted “in accordance with the regulations and to the prescribed extent, amounts falling within paragraph (a) of sub-paragraph (7AA) below against the sums falling within paragraph (b) of that sub-paragraph, and to account”; and after that sub-paragraph there shall be inserted the following sub-paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><subparagraph><num>(7AA)</num><intro><p>Those amounts and sums are—</p></intro><level class="para1"><num>(a)</num><content><p>amounts of overseas tax in respect of overseas dividends received by him in that chargeable period, amounts of overseas tax charged on, or in respect of, the making of manufactured overseas dividends so received by him and amounts deducted under sub-paragraph (2) above from any such manufactured overseas dividends; and</p></content></level><level class="para1"><num>(b)</num><content><p>the sums due from him on account of the amounts deducted by him under sub-paragraph (2) above from the manufactured overseas dividends paid by him in that chargeable period.</p></content></level></subparagraph></quotedStructure></mod></p></content></subsection><subsection eId="section-159-7"><num>(7)</num><intro><p>In sub-paragraph (1) of paragraph 8 of that Schedule (power to modify provisions of Schedule)—</p></intro><level class="para1" eId="section-159-7-a"><num>(a)</num><content><p><mod>before the “or” at the end of paragraph (a) there shall be inserted—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><level class="para1"><num>(aa)</num><content><p>such persons who receive, or become entitled to receive, manufactured dividends, manufactured interest or manufactured overseas dividends as may be prescribed,</p></content></level></quotedStructure></mod></p><p>and</p></content></level><level class="para1" eId="section-159-7-b"><num>(b)</num><content><p>in the words after paragraph (b), for “paragraph 2, 3 or 4 above” there shall be substituted “paragraphs 2 to 5 above”.</p></content></level></subsection><subsection eId="section-159-8"><num>(8)</num><content><p><mod>After sub-paragraph (1) of paragraph 8 of that Schedule there shall be inserted the following sub-paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><subparagraph><num>(1A)</num><intro><p>Dividend manufacturing regulations may provide, in relation to prescribed cases where a person makes or receives the payment of any amount representative of an overseas dividend, or is treated for any purposes of this Schedule or such regulations as a person making or receiving such a payment—</p></intro><level class="para1"><num>(a)</num><content><p>for any entitlement of that person to claim relief under Part XVIII to be extinguished or reduced to such extent as may be found under the regulations; and</p></content></level><level class="para1"><num>(b)</num><content><p>for the adjustment, by reference to any provision having effect under the law of a territory outside the United Kingdom, of any amount falling to be taken, for any prescribed purposes of the Tax Acts or the 1992 Act, to be the amount paid or payable by or to any person in respect of any sale, repurchase or other transfer of the overseas securities to which the payment relates.</p></content></level></subparagraph></quotedStructure></mod></p></content></subsection><subsection eId="section-159-9"><num>(9)</num><intro><p>Subsections (2), (4) and (5) above have effect—</p></intro><level class="para1" eId="section-159-9-a"><num>(a)</num><content><p>for the purposes of corporation tax, in relation to accounting periods ending after 31st March 1996; and</p></content></level><level class="para1" eId="section-159-9-b"><num>(b)</num><content><p>for the purposes of income tax, in relation to the year 1996-97 and subsequent years of assessment.</p></content></level></subsection><subsection eId="section-159-10"><num>(10)</num><content><p>In this section “the appointed day” means such day as the Treasury may by order appoint, and different days may be appointed under this subsection for different purposes.</p></content></subsection></section><section eId="section-160"><num>160</num><heading>Investments in housing</heading><content><p>Schedule 30 to this Act (which makes provision conferring relief from corporation tax on companies that invest in housing) shall have effect.</p></content></section><section eId="section-161"><num>161</num><heading>Venture capital trusts: control of companies etc</heading><subsection eId="section-161-1"><num>(1)</num><content><p>Schedule 28B to the Taxes Act 1988 (venture capital trusts: meaning of qualifying holdings) shall have effect, and be deemed always to have had effect, subject to the amendments in subsections (2) and (3) below.</p></content></subsection><subsection eId="section-161-2"><num>(2)</num><intro><p>In paragraph 9 (requirements as to subsidiaries etc. of the relevant company), the following shall be omitted—</p></intro><level class="para1" eId="section-161-2-a"><num>(a)</num><content><p>in sub-paragraph (1), the words “subject to sub-paragraph (2) below”; and</p></content></level><level class="para1" eId="section-161-2-b"><num>(b)</num><content><p>sub-paragraph (2).</p></content></level></subsection><subsection eId="section-161-3"><num>(3)</num><content><p><mod>In paragraph 13 (interpretation), for sub-paragraphs (2) and (3) (“connected” and “control” to be construed in accordance with sections 839 and 416(2) to (6)) there shall be substituted the following sub-paragraphs—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><subparagraph><num>(2)</num><content><p>For the purposes of paragraphs 5(2) and 9 above, the question whether a person controls a company shall be determined in accordance with subsections (2) to (6) of section 416 with the modification given by sub-paragraph (3) below.</p></content></subparagraph><subparagraph><num>(3)</num><intro><p>The modification is that, in determining whether a person controls a company, there shall be disregarded—</p></intro><level class="para1"><num>(a)</num><content><p>his or any other person’s possession of, or entitlement to acquire, relevant fixed-rate preference shares of the company; and</p></content></level><level class="para1"><num>(b)</num><content><p>his or any other person’s possession of, or entitlement to acquire, rights as a loan creditor of the company.</p></content></level></subparagraph><subparagraph><num>(4)</num><content><p>Section 839 shall apply for the purposes of this Schedule, but as if the reference in subsection (8) to section 416 were a reference to subsections (2) to (6) of section 416 with the modification given by sub-paragraph (3) above.</p></content></subparagraph><subparagraph><num>(5)</num><intro><p>For the purposes of sub-paragraph (3) above—</p></intro><level class="para1"><num>(a)</num><content><p>relevant fixed-rate preference shares are fixed-rate preference shares that do not for the time being carry voting rights; and</p></content></level><level class="para1"><num>(b)</num><content><p>“fixed-rate preference shares” has the same meaning as in section 95.</p></content></level></subparagraph></quotedStructure></mod></p></content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-IV-chapter-VI-crossheading-insurance-policies"><heading>Insurance policies</heading><section eId="section-162"><num>162</num><heading>Qualifying life insurance policies: certification</heading><subsection eId="section-162-1"><num>(1)</num><intro><p>Section 55 of the <noteRef href="#m00108" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1995 (removal of certification requirements for qualifying policies with respect to any time on or after 5th May 1996 etc) shall have effect—</p></intro><level class="para1" eId="section-162-1-a"><num>(a)</num><content><p>with the substitution for “5th May 1996”, wherever occurring, of “the appointed date”; and</p></content></level><level class="para1" eId="section-162-1-b"><num>(b)</num><content><p><mod>with the addition of the following subsection after subsection (8)—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(9)</num><content><p>In this section “the appointed date” means such date as may be specified for the purpose in an order made by the Board.</p></content></subsection></quotedStructure></mod></p></content></level></subsection><subsection eId="section-162-2"><num>(2)</num><content><p>In Schedule 15 to the Taxes Act 1988 (qualifying policies) paragraphs 24(2A) and 25(2) shall have effect with the substitution for “5th May 1996” of “the appointed date for the purposes of section 55 of the Finance Act 1995 (removal of certification requirements)”.</p></content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-IV-chapter-VI-crossheading-insurance-companies"><heading>Insurance companies</heading><section eId="section-163"><num>163</num><heading>Life assurance business losses</heading><content><p>Schedule 31 to this Act, which makes provision about losses arising to insurance companies in the carrying on of life assurance business, shall have effect.</p></content></section><section eId="section-164"><num>164</num><heading>Limits on relief for expenses</heading><subsection eId="section-164-1"><num>(1)</num><content><p><mod>For subsections (2) to (5) of section 76 of the Taxes Act 1988 there shall be substituted the following subsections—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(2)</num><content><p>Where, in the case of any such company, the amount mentioned in paragraph (a) of subsection (2A) below exceeds for any accounting period the amount mentioned in paragraph (b) of that subsection, the amount which by virtue of this section is to be deductible by way of management expenses for that period shall be equal to the basic deduction for that period reduced by the amount of the excess.</p></content></subsection><subsection><num>(2A)</num><intro><p>Those amounts are—</p></intro><level class="para1"><num>(a)</num><content><p>the amount which would be the profits of the company’s life assurance business for that period if computed in accordance with the provisions applicable to Case I of Schedule D and adjusted in respect of losses; and</p></content></level><level class="para1"><num>(b)</num><intro><p>the amount (including any negative amount) produced by deducting the following aggregate amount from the company’s relevant income for that period from its life assurance business, that is to say, the aggregate of—</p></intro><level class="para2"><num>(i)</num><content><p>the basic deduction,</p></content></level><level class="para2"><num>(ii)</num><content><p>any non-trading deficit on the company’s loan relationships which is produced for that period in relation to that business by a separate computation under paragraph 2 of Schedule 11 to the Finance Act 1996,</p></content></level><level class="para2"><num>(iii)</num><content><p>any amount which in pursuance of a claim under paragraph 4(3) of that Schedule is carried back to that period and (in accordance with paragraph 4(5) of that Schedule) applied in reducing profits of the company for that period, and</p></content></level><level class="para2"><num>(iv)</num><content><p>any charges on income for that period so far as they consist in annuities or other annual payments that are referable to the company’s life assurance business and, if they are not annuities, are payable by the company wholly or partly in satisfaction of claims under insurance policies.</p></content></level></level></subsection><subsection><num>(2B)</num><intro><p>For the purposes of subsection (2A) above a company’s relevant income for any accounting period from its life assurance business is the sum of the following—</p></intro><level class="para1"><num>(a)</num><content><p>the income and gains of the company’s life assurance business for that accounting period; and</p></content></level><level class="para1"><num>(b)</num><content><p>the relevant franked investment income of the company for that period so far as it arises from assets held for the purposes of that business and is not included in the income and gains mentioned in paragraph (a) above.</p></content></level></subsection><subsection><num>(2C)</num><intro><p>The adjustment in respect of losses that is to be made for any accounting period under paragraph (a) of subsection (2A) above is a deduction of the amount equal to the unused part of the sum which—</p></intro><level class="para1"><num>(a)</num><content><p>by reference to computations made in respect of the company’s life assurance business in accordance with the provisions applicable to Case I of Schedule D, and</p></content></level><level class="para1"><num>(b)</num><content><p>disregarding section 434A(2),</p></content></level><wrapUp><p>would fall, in the case of the company, to be set off under section 393 against the company’s income for that period.</p></wrapUp></subsection><subsection><num>(2D)</num><content><p>For the purposes of subsection (2C) above, an amount is unused to the extent that it has not been taken into account for any previous accounting period in determining the amount by reference to which the following question was answered, namely, the question whether, and by how much, the amount deductible by virtue of this section by way of management expenses was less than the basic deduction.</p></content></subsection><subsection><num>(5)</num><content><p>Subject to paragraph 4(11) to (13) of Schedule 11 to the Finance Act 1996, where the basic deduction for any period exceeds the amount which for that period is to be deductible by virtue of this section by way of management expenses, the amount to be carried forward by virtue of section 75(3) (including the amount to be so carried forward for the purpose of computing the amount of the basic deduction for any period) shall be increased by the amount of the excess.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-164-2"><num>(2)</num><intro><p>In subsection (8) of that section—</p></intro><level class="para1" eId="section-164-2-a"><num>(a)</num><content><p><mod>after the definition of “authorised person” there shall be inserted the following definition—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><p>“basic deduction”, in relation to an accounting period of an insurance company, means the amount which, by virtue of this section, would be deductible by way of management expenses for that period but for subsection (2) above;</p></quotedStructure></mod></p><p>and</p></content></level><level class="para1" eId="section-164-2-b"><num>(b)</num><content><p><mod>after the definition of “recognised self-regulating organisation” there shall be inserted the following definition—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><p>“relevant franked investment income”, in relation to any insurance company, means any franked investment income of the company in so far as it is not income the tax credits comprised in which may be claimed by the company under section 438(4) or 441A(7);</p></quotedStructure><inline name="appendText">.</inline></mod></p></content></level></subsection><subsection eId="section-164-3"><num>(3)</num><intro><p>In paragraph 5 of Schedule 19AC to the Taxes Act 1988 (modification of section 76)—</p></intro><level class="para1" eId="section-164-3-a"><num>(a)</num><content><p>in sub-paragraph (1), in the subsection (6B) treated as inserted in section 76, for “their” there shall be substituted “its” and the words “and subsections (2) and (3)(b) above” shall be omitted; and</p></content></level><level class="para1" eId="section-164-3-b"><num>(b)</num><content><p><mod>after that sub-paragraph there shall be inserted the following sub-paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><subparagraph><num>(1A)</num><content><p>In section 76 references to franked investment income shall be treated as being references to UK distribution income within the meaning of paragraph 5B of this Schedule.</p></content></subparagraph></quotedStructure></mod></p></content></level></subsection><subsection eId="section-164-4"><num>(4)</num><content><p>In section 56(4) of the Taxes Act 1988 (which contains a reference to the computation required by section 76(2) of that Act), for “by” there shall be substituted “for the purposes of”.</p></content></subsection><subsection eId="section-164-5"><num>(5)</num><content><p>Subject to subsection (6) below, this section has effect in relation to accounting periods beginning on or after 1st January 1996.</p></content></subsection><subsection eId="section-164-6"><num>(6)</num><intro><p>Notwithstanding anything in the previous provisions of this section, section 76 of the Taxes Act 1988 has effect in relation to accounting periods beginning on or after 1st January 1996—</p></intro><level class="para1" eId="section-164-6-a"><num>(a)</num><content><p>as if the reference in subsection (2D) of that section to a previous accounting period included a reference to an accounting period beginning before that date, and</p></content></level><level class="para1" eId="section-164-6-b"><num>(b)</num><intro><p>in relation to such a previous accounting period, as if the references—</p></intro><level class="para2" eId="section-164-6-b-i"><num>(i)</num><content><p>to the amount deductible by virtue of this section, and</p></content></level><level class="para2" eId="section-164-6-b-ii"><num>(ii)</num><content><p>to the basic deduction,</p></content></level><wrapUp><p>were to be construed by reference to whatever provisions had effect in relation to that previous period for purposes corresponding to those of that section as amended by this section.</p></wrapUp></level></subsection></section><section eId="section-165"><num>165</num><heading>Annual payments under insurance policies: deductions</heading><subsection eId="section-165-1"><num>(1)</num><content><p><mod>In section 337 of the Taxes Act 1988 (deductions in computing income), the following subsections shall be inserted after subsection (2)—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(2A)</num><content><p>In computing any profits or losses of a company in accordance with the provisions of this Act applicable to Case I of Schedule D, subsection (2)(b) above shall not prevent the deduction of any annuity or other annual payment which is payable by a company wholly or partly in satisfaction of any claim under an insurance policy in relation to which the company is the insurer.</p></content></subsection><subsection><num>(2B)</num><content><p>The reference in subsection (2A) above to an annuity payable wholly or partly in satisfaction of a claim under an insurance policy shall be taken, in relation to an insurance company (within the meaning of Chapter I of Part XII), to include a reference to every annuity payable by that company; and the references in sections 338(2) and 434B(2) to an annuity paid wholly or partly as mentioned in subsection (2A) above shall be construed accordingly.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-165-2"><num>(2)</num><content><p>In section 338(2) of that Act, in the words after paragraph (b) (payments which are not charges on income), after “corporation tax” there shall be inserted “nor any annuity or other annual payment which (without being so deductible) is paid wholly or partly as mentioned in section 337(2A)”.</p></content></subsection><subsection eId="section-165-3"><num>(3)</num><content><p><mod>In section 434B of that Act (treatment of interest and annuities in the case of insurance companies), subsection (1) shall cease to have effect; and in subsection (2), for the words from the beginning to “mentioned in subsection (1) above” there shall be substituted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(2)</num><content><p>Nothing in section 337(2A) or 338(2) shall be construed as preventing any annuity or other annual payment which is paid wholly or partly as mentioned in section 337(2A)</p></content></subsection></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-165-4"><num>(4)</num><content><p>Subject to subsection (5) below, this section has effect in relation to accounting periods beginning on or after 1st January 1996.</p></content></subsection><subsection eId="section-165-5"><num>(5)</num><content><p>In relation to any accounting period beginning on or after 1st January 1996 but ending before 1st April 1996, this section shall have effect as if any reference in provisions inserted by this section to an annuity payable or paid by an insurance company included a reference to any such interest as was mentioned in section 434B(1) of the Taxes Act 1988 before its repeal by virtue of this section.</p></content></subsection></section><section eId="section-166"><num>166</num><heading>Equalisation reserves</heading><content><p>Schedule 32 to this Act (which makes provision about the tax treatment of equalisation reserves maintained by insurance companies) shall have effect.</p></content></section><section eId="section-167"><num>167</num><heading>Industrial assurance business</heading><subsection eId="section-167-1"><num>(1)</num><content><p>In section 432 of the Taxes Act 1988, subsection (2) (industrial assurance business treated as separate business for the purposes of Chapter I of Part XII) shall cease to have effect.</p></content></subsection><subsection eId="section-167-2"><num>(2)</num><content><p><mod>In section 432A(2) of the Taxes Act 1988, for paragraphs (d) and (e) (different categories of basic life assurance and general annuity business, including and not including industrial assurance business), there shall be substituted the following paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(d)</num><content><p>basic life assurance and general annuity business; and</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-167-3"><num>(3)</num><intro><p>In section 86 of the <noteRef href="#m00109" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1989 (spreading of relief for acquisition expenses)—</p></intro><level class="para1" eId="section-167-3-a"><num>(a)</num><content><p>in subsection (1)(a), for “in respect of industrial life assurance business carried on by the company” there shall be substituted “for persons who collect premiums from house to house”; and</p></content></level><level class="para1" eId="section-167-3-b"><num>(b)</num><content><p>in subsection (2), for “in respect of industrial life assurance business” there shall be substituted “for persons who collect premiums from house to house”.</p></content></level></subsection><subsection eId="section-167-4"><num>(4)</num><content><p>In section 832 of the Taxes Act 1988 (interpretation), in the definition of “industrial assurance business” for “has” there shall be substituted “means any such business carried on before the day appointed for the coming into force of section 167(4) of the Finance Act 1996 as was industrial assurance business within”.</p></content></subsection><subsection eId="section-167-5"><num>(5)</num><content><p>In Schedule 14 to the Taxes Act 1988 (ancillary provisions about relief in respect of life assurance premiums), in paragraph 8, at the beginning of sub-paragraph (4) (policy which is varied so as to increase benefits, etc. to be treated as issued after 13th March 1984) there shall be inserted “Subject to sub-paragraph (8) below,”.</p></content></subsection><subsection eId="section-167-6"><num>(6)</num><content><p><mod>After sub-paragraph (7) of that paragraph there shall be inserted the following sub-paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(8)</num><intro><p>Sub-paragraph (4) above does not apply in the case of a variation so as to increase the benefits secured, if the variation is made—</p></intro><level class="para1"><num>(a)</num><content><p>on or after such day as the Board may by order appoint, and</p></content></level><level class="para1"><num>(b)</num><content><p>in consideration of a change in the method of payment of premiums from collection by a person collecting premiums from house to house to payment by a different method.</p></content></level></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-167-7"><num>(7)</num><intro><p>In Schedule 15 to the Taxes Act 1988 (qualifying policies)—</p></intro><level class="para1" eId="section-167-7-a"><num>(a)</num><content><p>in paragraph 1(6) (calculation of amount included in premiums of whole life and term insurances in respect of their payment otherwise than annually), for “and if the policy is issued in the course of an industrial assurance business,” there shall be substituted “and if the policy provides for payment otherwise than annually without providing for the amount of the premiums if they are paid annually,”; and</p></content></level><level class="para1" eId="section-167-7-b"><num>(b)</num><content><p>in paragraph 2(2) (the equivalent calculation for endowment assurances), for “issued in the course of an industrial assurance business” there shall be substituted “that provides for the payment of premiums otherwise than annually without providing for the amount of the premiums if they are paid annually,”.</p></content></level></subsection><subsection eId="section-167-8"><num>(8)</num><content><p><mod>After paragraph 8 of that Schedule there shall be inserted the following paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><paragraph class="schProv1"><num>8A</num><subparagraph><num>(1)</num><intro><p>Paragraphs 7 and 8 above shall have effect in relation to any policy issued on or after the appointed day as if the references to the issue of a policy in the course of an industrial assurance business were references to the issue of a policy by any company in a case in which—</p></intro><level class="para1"><num>(a)</num><content><p>the company, before that day and in the course of such a business, issued any policy which was a qualifying policy by virtue of either of those paragraphs; and</p></content></level><level class="para1"><num>(b)</num><content><p>the policies which on 28th November 1995 were being offered by the company as available to be issued included policies of the same description as the policy issued on or after the appointed day.</p></content></level></subparagraph><subparagraph><num>(2)</num><content><p>In this paragraph “the appointed day” means such day as the Board may by order appoint.</p></content></subparagraph></paragraph></quotedStructure></mod></p></content></subsection><subsection eId="section-167-9"><num>(9)</num><content><p><mod>In paragraph 18(3) of that Schedule (certain variations of a policy not to affect whether policy is a qualifying policy), after paragraph (b) there shall be inserted <quotedText startQuote="“">or</quotedText><quotedStructure endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><level class="para1"><num>(c)</num><intro><p>any variation so as to increase the benefits secured or reduce the premiums payable which is effected—</p></intro><level class="para2"><num>(i)</num><content><p>on or after such day as the Board may by order appoint, and</p></content></level><level class="para2"><num>(ii)</num><content><p>in consideration of a change in the method of payment of premiums from collection by a person collecting premiums from house to house to payment by a different method.</p></content></level></level></quotedStructure></mod></p></content></subsection><subsection eId="section-167-10"><num>(10)</num><content><p>Subsections (1) to (3) above have effect in relation to accounting periods beginning on or after 1st January 1996.</p></content></subsection><subsection eId="section-167-11"><num>(11)</num><content><p>Subsection (4) above shall come into force on such day as the Board may by order appoint.</p></content></subsection><subsection eId="section-167-12"><num>(12)</num><content><p>Subsection (7) above shall have effect in relation to policies issued on or after such day as the Board may by order appoint.</p></content></subsection></section><section eId="section-168"><num>168</num><heading>Capital redemption business</heading><subsection eId="section-168-1"><num>(1)</num><content><p><mod>For subsection (3) of section 458 of the Taxes Act 1988 (meaning of capital redemption business) there shall be substituted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(3)</num><intro><p>In this section “capital redemption business” means any business in so far as it—</p></intro><level class="para1"><num>(a)</num><content><p>is insurance business for the purposes of the <noteRef href="#m00110" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Insurance Companies Act 1982, but not life assurance business; and</p></content></level><level class="para1"><num>(b)</num><content><p>consists in effecting on the basis of actuarial calculations, and carrying out, contracts under which, in return for one or more fixed payments, a sum or series of sums of a specified amount become payable at a future time or over a period.</p></content></level></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-168-2"><num>(2)</num><content><p>Schedule 33 to this Act (which makes provision for the application of the I minus E basis of charging tax to companies carrying on capital redemption business) shall have effect.</p></content></subsection><subsection eId="section-168-3"><num>(3)</num><content><p><mod>In Chapter I of Part XII of the Taxes Act 1988, after section 458 (capital redemption business) there shall be inserted the following section—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>458A</num><heading>Capital redemption business: power to apply life assurance provisions</heading><subsection><num>(1)</num><content><p>The Treasury may by regulations provide for the life assurance provisions of the Corporation Tax Acts to have effect in relation to companies carrying on capital redemption business as if capital redemption business were, or were a category of, life assurance business.</p></content></subsection><subsection><num>(2)</num><content><p>Regulations under this section may provide that the provisions applied by the regulations are to have effect as respects capital redemption business with such modifications and exceptions as may be provided for in the regulations.</p></content></subsection><subsection><num>(3)</num><intro><p>Regulations under this section may—</p></intro><level class="para1"><num>(a)</num><content><p>make different provision for different cases;</p></content></level><level class="para1"><num>(b)</num><content><p>include such incidental, supplemental, consequential and transitional provision (including provision modifying provisions of the Corporation Tax Acts other than the life assurance provisions) as the Treasury consider appropriate; and</p></content></level><level class="para1"><num>(c)</num><content><p>include retrospective provision.</p></content></level></subsection><subsection><num>(4)</num><intro><p>In this section references to the life assurance provisions of the Corporation Tax Acts are references to the following—</p></intro><level class="para1"><num>(a)</num><content><p>the provisions of this Chapter so far as they relate to life assurance business or companies carrying on such business; and</p></content></level><level class="para1"><num>(b)</num><content><p>any other provisions of the Corporation Tax Acts making separate provision by reference to whether or not the business of a company is or includes life assurance business or any category of insurance business that includes life assurance business.</p></content></level></subsection><subsection><num>(5)</num><content><p>In this section “capital redemption business” has the same meaning as in section 458.</p></content></subsection></section></quotedStructure></mod></p></content></subsection><subsection eId="section-168-4"><num>(4)</num><content><p>In section 539(3) of that Act, in the definition of “capital redemption policy” for “insurance” there shall be substituted “contract”.</p></content></subsection><subsection eId="section-168-5"><num>(5)</num><content><p>In section 553(10) of that Act, in paragraph (a) of the definition of “new offshore capital redemption policy”, for “an insurance” there shall be substituted “a contract”.</p></content></subsection><subsection eId="section-168-6"><num>(6)</num><content><p>Subsection (1) above shall have effect as respects accounting periods ending on or after the day appointed under section 199 of the <noteRef href="#m00111" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1994 for the purposes of Chapter III of Part IV of that Act (self-assessment management provisions), and subsections (4) and (5) above shall have effect as respects contracts effected on or after that day.</p></content></subsection></section><section eId="section-169"><num>169</num><heading>Provisional repayments in connection with pension business</heading><subsection eId="section-169-1"><num>(1)</num><content><p>Schedule 19AB to the Taxes Act 1988 (pension business: payments on account of tax credits and deducted tax) shall be amended in accordance with the provisions of Part I of Schedule 34 to this Act.</p></content></subsection><subsection eId="section-169-2"><num>(2)</num><content><p>Schedule 19AC to the Taxes Act 1988 (modification of that Act in relation to overseas life insurance companies) shall be amended in accordance with the provisions of Part II of Schedule 34 to this Act.</p></content></subsection><subsection eId="section-169-3"><num>(3)</num><content><p>The amendments made by Schedule 34 to this Act shall have effect in relation to provisional repayment periods, within the meaning of Schedule 19AB to the <noteRef href="#m00112" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxes Act 1988, falling in accounting periods ending on or after the day appointed under section 199 of the Finance Act 1994 for the purposes of Chapter III of Part IV of that Act (self-assessment management provisions).</p></content></subsection></section><section eId="section-170"><num>170</num><heading>Time for amending and enquiring into returns</heading><subsection eId="section-170-1"><num>(1)</num><content><p><mod>After section 11AB of the <noteRef href="#m00113" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxes Management Act 1970 there shall be inserted the following sections—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>11AC</num><heading>Modifications of sections 11AA and 11AB in relation to non-annual accounting of general insurance business</heading><subsection><num>(1)</num><content><p>This section applies in any case where a company carrying on insurance business in any period delivers a return for that period under section 11 of this Act which is based wholly or partly on accounts which the company is required or permitted to draw up using the method described in paragraph 52 of Schedule 9A to the <noteRef href="#m00114" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Companies Act 1985 (accounting for general insurance business on a non-annual basis).</p></content></subsection><subsection><num>(2)</num><content><p><mod>Where this section applies, section 11AA(2) of this Act shall have effect as if after paragraph (b) there were added <quotedText startQuote="“">and</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>c1</num><intro><p>where a company has delivered a return which is based wholly or partly on accounts drawn up as mentioned in section 11AC(1) of this Act, then, at any time before the end of the period of twelve months beginning with the date on which any particular technical provision constituted in the case of those accounts as described in paragraph 52 of Schedule 9A to the <noteRef href="#m00115" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Companies Act 1985 is replaced as described in sub-paragraph (4) of that paragraph, the company may by notice to an officer of the Board so amend its self-assessment as to give effect to any amendments to the return—</p></intro><level class="para2"><num>(i)</num><content><p>which arise from the replacement of that technical provision, and</p></content></level><level class="para2"><num>(ii)</num><content><p>which the company has notified to such an officer.</p></content></level></level></quotedStructure></mod></p></content></subsection><subsection><num>(3)</num><intro><p>Where this section applies, section 11AB of this Act shall have effect—</p></intro><level class="para1"><num>(a)</num><content><p>as if in subsection (1)(b) after “subsection (2)(b)” there were inserted “or (c1)”; and</p></content></level><level class="para1"><num>(b)</num><content><p><mod>as if in subsection (2) for the words from “is” to the end of paragraph (b) there were substituted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>a1</num><intro><p>in the case of a return (whenever delivered) which is based wholly or partly on accounts drawn up as mentioned in section 11AC(1) of this Act, is whichever of the following periods ends the later, that is to say—</p></intro><level class="para2"><num>(i)</num><content><p>the period of two years beginning with the date (or, if there is more than one such date, the latest date) on which any technical provision constituted in the case of those accounts as described in paragraph 52 of Schedule 9A to the Companies Act 1985 is replaced as mentioned in sub-paragraph (4) of that paragraph; or</p></content></level><level class="para2"><num>(ii)</num><content><p>the period ending with the quarter day next following the first anniversary of the day on which the return was delivered; and</p></content></level></level><level class="para1"><num>b1</num><intro><p>in the case of an amendment of such a return—</p></intro><level class="para2"><num>(i)</num><content><p>if the amendment is made on or before the filing date, is the period of twelve months beginning with that date; or</p></content></level><level class="para2"><num>(ii)</num><content><p>if the amendment is made after that date, is the period ending with the quarter day next following the first anniversary of the day on which the amendment was made;</p></content></level></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></level></subsection></section><section><num>11AD</num><heading>Modifications of sections 11AA and 11AB for insurance companies with non-annual actuarial investigations</heading><subsection><num>(1)</num><content><p>This section applies in any case where a return under section 11 of this Act is delivered by an insurance company which is permitted by an order under section 68 of the <noteRef href="#m00116" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Insurance Companies Act 1982 to cause investigations to be made into its financial condition less frequently than is required by section 18 of that Act.</p></content></subsection><subsection><num>(2)</num><content><p><mod>Where this section applies, section 11AA(2) of this Act shall have effect as if, after paragraph (b), there were added <quotedText startQuote="“">and</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>c2</num><intro><p>where a company falling within section 11AD(1) of this Act has delivered a return for any period, then, at any time before the end of the period of twelve months beginning with the date as at which the relevant investigation is carried out, that is to say—</p></intro><level class="para2"><num>(i)</num><content><p>if the return is for a period as at the end of which there is carried out an investigation under section 18 of the <noteRef href="#m00117" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Insurance Companies Act 1982 into the financial condition of the company, that investigation, or</p></content></level><level class="para2"><num>(ii)</num><content><p>if the return is not for such a period, the first such investigation to be made into the financial condition of the company as at the end of a subsequent period,</p></content></level><wrapUp><p>the company may by notice to an officer of the Board so amend its self-assessment as to give effect to any amendments to its return which arise from that investigation and which the company has notified to such an officer.</p></wrapUp></level></quotedStructure></mod></p></content></subsection><subsection><num>(3)</num><intro><p>Where this section applies, section 11AB of this Act shall have effect—</p></intro><level class="para1"><num>(a)</num><content><p>as if in subsection (1)(b) after “subsection (2)(b)” there were inserted “or (c2)”; and</p></content></level><level class="para1"><num>(b)</num><content><p><mod>as if in subsection (2) for the words from “is” to the end of paragraph (b) there were substituted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>a2</num><content><p>in the case of a return delivered at any time by a company falling within section 11AD(1) of this Act, is the period of two years beginning with the date as at which the relevant investigation, as defined in section 11AA(2)(c2) of this Act, is carried out; and</p></content></level><level class="para1"><num>b2</num><intro><p>in the case of an amendment of such a return—</p></intro><level class="para2"><num>(i)</num><content><p>if the amendment is made on or before the filing date, is the period of twelve months beginning with that date; or</p></content></level><level class="para2"><num>(ii)</num><content><p>if the amendment is made after that date, is the period ending with the quarter day next following the first anniversary of the day on which the amendment was made;</p></content></level></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></level></subsection></section><section><num>11AE</num><heading>Modifications of sections 11AA and 11AB for friendly societies with non-annual actuarial investigations</heading><subsection><num>(1)</num><content><p>This section applies in any case where a return under section 11 of this Act is delivered by a friendly society which is required by section 47 of the <noteRef href="#m00118" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Friendly Societies Act 1992 to cause an investigation to be made into its financial condition at least once in every period of three years.</p></content></subsection><subsection><num>(2)</num><content><p><mod>Where this section applies, section 11AA(2) of this Act shall have effect as if, after paragraph (b), there were added <quotedText startQuote="“">and</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>c3</num><intro><p>where a friendly society falling within section 11AE(1) of this Act has delivered a return for any period, then, at any time before the end of the period of fifteen months beginning with the date as at which the relevant investigation is carried out, that is to say—</p></intro><level class="para2"><num>(i)</num><content><p>if the return is for a period as at the end of which there is carried out an investigation under section 47 of the <noteRef href="#m00119" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Friendly Societies Act 1992 into the financial condition of the society, that investigation, or</p></content></level><level class="para2"><num>(ii)</num><content><p>if the return is not for such a period, the first such investigation to be made into the financial condition of the society as at the end of a subsequent period,</p></content></level><wrapUp><p>the society may by notice to an officer of the Board so amend its self-assessment as to give effect to any amendments to its return which arise from that investigation and which the society has notified to such an officer.</p></wrapUp></level></quotedStructure></mod></p></content></subsection><subsection><num>(3)</num><intro><p>Where this section applies, section 11AB of this Act shall have effect—</p></intro><level class="para1"><num>(a)</num><content><p>as if in subsection (1)(b) after “subsection (2)(b)” there were inserted “or (c3)”; and</p></content></level><level class="para1"><num>(b)</num><content><p><mod>as if in subsection (2) for the words from “is” to the end of paragraph (b) there were substituted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>a3</num><content><p>in the case of a return delivered at any time by a friendly society falling within section 11AE(1) of this Act, is the period of twenty seven months beginning with the date as at which the relevant investigation, as defined in section 11AA(2)(c3) of this Act, is carried out; and</p></content></level><level class="para1"><num>b3</num><intro><p>in the case of an amendment of such a return—</p></intro><level class="para2"><num>(i)</num><content><p>if the amendment is made on or before the filing date, is the period of twelve months beginning with that date; or</p></content></level><level class="para2"><num>(ii)</num><content><p>if the amendment is made after that date, is the period ending with the quarter day next following the first anniversary of the day on which the amendment was made;</p></content></level></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></level></subsection></section></quotedStructure></mod></p></content></subsection><subsection eId="section-170-2"><num>(2)</num><content><p>The amendment made by subsection (1) above shall have effect as respects accounting periods ending on or after the day appointed under section 199 of the <noteRef href="#m00120" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1994 for the purposes of Chapter III of Part IV of that Act (self-assessment management provisions).</p></content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-IV-chapter-VI-crossheading-friendly-societies"><heading>Friendly societies</heading><section eId="section-171"><num>171</num><heading>Life or endowment business</heading><subsection eId="section-171-1"><num>(1)</num><content><p><mod>In section 466 of the Taxes Act 1988 (interpretation of Chapter II of Part XII) for subsection (1) (meaning of “life or endowment business”) there shall be substituted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1)</num><intro><p>In this Chapter “life or endowment business” means, subject to subsections (1A) and (1B) below,—</p></intro><level class="para1"><num>(a)</num><content><p>any business within Class I, II or III of Head A of Schedule 2 to the <noteRef href="#m00121" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Friendly Societies Act 1992;</p></content></level><level class="para1"><num>(b)</num><content><p>pension business;</p></content></level><level class="para1"><num>(c)</num><content><p>any other life assurance business;</p></content></level><level class="para1"><num>(d)</num><intro><p>any business within Class IV of Head A of that Schedule, if—</p></intro><level class="para2"><num>(i)</num><content><p>the contract is one made before 1st September 1996; or</p></content></level><level class="para2"><num>(ii)</num><content><p>the contract is one made on or after 1st September 1996 and the effecting and carrying out of the contract also constitutes business within Class I, II or III of Head A of that Schedule.</p></content></level></level></subsection><subsection><num>(1A)</num><intro><p>Life or endowment business does not include the issue, in respect of a contract made before 1st September 1996, of a policy affording provision for sickness or other infirmity (whether bodily or mental), unless—</p></intro><level class="para1"><num>(a)</num><content><p>the policy also affords assurance for a gross sum independent of sickness or other infirmity;</p></content></level><level class="para1"><num>(b)</num><content><p>not less than 60 per cent. of the amount of the premiums is attributable to the provision afforded during sickness or other infirmity; and</p></content></level><level class="para1"><num>(c)</num><content><p>there is no bonus or addition which may be declared or accrue upon the assurance of the gross sum.</p></content></level></subsection><subsection><num>(1B)</num><content><p>Life or endowment business does not include the assurance of any annuity the consideration for which consists of sums obtainable on the maturity, or on the surrender, of any other policy of assurance issued by the friendly society, being a policy of assurance forming part of the tax exempt life or endowment business of the friendly society.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-171-2"><num>(2)</num><content><p><mod>In subsection (2) of that section (other definitions) there shall be inserted at the appropriate places—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(a)</num><content><p>“insurance company” shall be construed in accordance with section 431;</p></content></level></quotedStructure><inline name="appendText">; and</inline></mod></p><p><mod><quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(b)</num><content><p>“long term business” shall be construed in accordance with section 431;</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-171-3"><num>(3)</num><content><p><mod>In section 266 of that Act (life assurance premium relief) in subsection (6) (deduction from total income where relief given for part of certain payments to friendly societies) after paragraph (b) there shall be inserted <quotedText startQuote="“">and</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(c)</num><content><p>the insurance or contract is not excluded by subsection (6A) below,</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-171-4"><num>(4)</num><content><p><mod>After that subsection there shall be inserted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(6A)</num><intro><p>For the purposes of subsection (6)(c) above, an insurance or contract is excluded by this subsection if it is made on or after 1st September 1996 and affords provision for sickness or other infirmity (whether bodily or mental), unless—</p></intro><level class="para1"><num>(a)</num><content><p>it also affords assurance for a gross sum independent of sickness or other infirmity;</p></content></level><level class="para1"><num>(b)</num><content><p>not less than 60 per cent. of the amount of the premiums is attributable to the provision afforded during sickness or other infirmity; and</p></content></level><level class="para1"><num>(c)</num><content><p>there is no bonus or addition which may be declared or accrue upon the assurance of the gross sum.</p></content></level></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-171-5"><num>(5)</num><content><p>In section 463(1) of that Act (Corporation Tax Acts to apply to friendly societies' life or endowment business as they apply to insurance companies' mutual life assurance business) after “mutual life assurance business” there shall be inserted “(or other long term business)”.</p></content></subsection><subsection eId="section-171-6"><num>(6)</num><content><p>The amendment made by subsection (5) above shall have effect in relation to accounting periods ending on or after 1st September 1996.</p></content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-IV-chapter-VI-crossheading-personal-pension-schemes"><heading>Personal pension schemes</heading><section eId="section-172"><num>172</num><heading>Return of contributions on or after death of member</heading><subsection eId="section-172-1"><num>(1)</num><content><p>In section 633(1) of the Taxes Act 1988 (Board not to approve a personal pension scheme which makes provision for any benefit other than those specified in paragraphs (a) to (e)) in paragraph (e) (payment on or after the death of a member of a lump sum satisfying the conditions in section 637A) for the words following “a lump sum” there shall be substituted “with respect to which the conditions in section 637A (return of contributions) are satisfied”.</p></content></subsection><subsection eId="section-172-2"><num>(2)</num><content><p><mod>For section 637A of that Act (return of contributions on or after death of member) there shall be substituted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>637A</num><heading>Return of contributions on or after death of member</heading><subsection><num>(1)</num><intro><p>The lump sum payable under the arrangements in question (or, where two or more lump sums are so payable, those lump sums taken together) must represent no more than the return of contributions together with reasonable interest on contributions or bonuses out of profits, after allowing for—</p></intro><level class="para1"><num>(a)</num><content><p>any income withdrawals, and</p></content></level><level class="para1"><num>(b)</num><content><p>any purchases of annuities such as are mentioned in section 636.</p></content></level><wrapUp><p>To the extent that contributions are invested in units under a unit trust scheme, the lump sum (or lump sums) may represent the sale or redemption price of the units.</p></wrapUp></subsection><subsection><num>(2)</num><intro><p>A lump sum must be payable only if, in the case of the arrangements in question,—</p></intro><level class="para1"><num>(a)</num><content><p>no such annuity as is mentioned in section 634 has been purchased by the member;</p></content></level><level class="para1"><num>(b)</num><content><p>no such annuity as is mentioned in section 636 has been purchased in respect of the relevant interest; and</p></content></level><level class="para1"><num>(c)</num><content><p>no election in accordance with subsection (5)(a) of section 636 has been made in respect of the relevant interest.</p></content></level></subsection><subsection><num>(3)</num><intro><p>Where the member’s death occurs after the date which is his pension date in relation to the arrangements in question, a lump sum must not be payable more than two years after the death unless, in the case of that lump sum, the person entitled to such an annuity as is mentioned in section 636 in respect of the relevant interest—</p></intro><level class="para1"><num>(a)</num><content><p>has elected in accordance with section 636A to defer the purchase of an annuity; and</p></content></level><level class="para1"><num>(b)</num><content><p>has died during the period of deferral.</p></content></level></subsection><subsection><num>(4)</num><content><p>In this section “the relevant interest” means the interest, under the arrangements in question, of the person to whom or at whose direction the payment in question is made, except where there are two or more such interests, in which case it means that one of them in respect of which the payment is made.</p></content></subsection><subsection><num>(5)</num><content><p>Where, under the arrangements in question, there is a succession of interests, any reference in subsection (2) or (3) above to the relevant interest includes a reference to any interest (other than that of the member) in relation to which the relevant interest is a successive interest.</p></content></subsection></section></quotedStructure></mod></p></content></subsection><subsection eId="section-172-3"><num>(3)</num><intro><p>This section—</p></intro><level class="para1" eId="section-172-3-a"><num>(a)</num><content><p>has effect in relation to approvals, of schemes or amendments, given under Chapter IV of Part XIV of the Taxes Act 1988 (personal pension schemes) after the passing of this Act; and</p></content></level><level class="para1" eId="section-172-3-b"><num>(b)</num><content><p>does not affect any approval previously given.</p></content></level></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-IV-chapter-VI-crossheading-participators-in-close-companies"><heading>Participators in close companies</heading><section eId="section-173"><num>173</num><heading>Loans to participators etc</heading><subsection eId="section-173-1"><num>(1)</num><content><p>Section 419 of the Taxes Act 1988 (loans to participators etc.) shall be amended in accordance with subsections (2) to (4) below.</p></content></subsection><subsection eId="section-173-2"><num>(2)</num><content><p><mod>For subsection (3) (time when tax becomes due) there shall be substituted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(3)</num><content><p>Tax due by virtue of this section in relation to any loan or advance shall be due and payable on the day following the expiry of nine months from the end of the accounting period in which the loan or advance was made.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-173-3"><num>(3)</num><content><p><mod>After subsection (4) (relief in respect of repayment) there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(4A)</num><content><p>Where the repayment of the whole or any part of a loan or advance occurs on or after the day on which tax by virtue of this section becomes due in relation to that loan or advance, relief in respect of the repayment shall not be given under subsection (4) above at any time before the expiry of nine months from the end of the accounting period in which the repayment occurred.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-173-4"><num>(4)</num><content><p>In subsection (6) (application to loans and advances to certain companies who are participators etc.), the words “and to a company not resident in the United Kingdom” shall be omitted.</p></content></subsection><subsection eId="section-173-5"><num>(5)</num><content><p><mod>In section 826(4) of that Act (interest on repayment of tax by virtue of section 419), for paragraph (a) there shall be substituted the following paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(a)</num><intro><p>the date when the entitlement to relief in respect of the repayment accrued, that is to say—</p></intro><level class="para2"><num>(i)</num><content><p>where the repayment of the loan or advance (or part thereof) occurred on or after the day mentioned in section 419(4A), the date nine months after the end of that accounting period; and</p></content></level><level class="para2"><num>(ii)</num><content><p>in any other case, the date nine months after the end of the accounting period in which the loan or advance was made;</p></content></level><wrapUp><p>or</p></wrapUp></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-173-6"><num>(6)</num><content><p>This section has effect in relation to any loan or advance made in an accounting period ending on or after 31st March 1996.</p></content></subsection></section><section eId="section-174"><num>174</num><heading>Attribution of gains to participators in non-resident companies</heading><subsection eId="section-174-1"><num>(1)</num><content><p>Section 13 of the <noteRef href="#m00122" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxation of Chargeable Gains Act 1992 (attribution of gains to members of non-resident companies) shall be amended in accordance with subsections (2) to (9) below.</p></content></subsection><subsection eId="section-174-2"><num>(2)</num><content><p>In subsection (2) (persons subject to charge on gain to company), for “holds shares” there shall be substituted “is a participator”.</p></content></subsection><subsection eId="section-174-3"><num>(3)</num><content><p><mod>For subsections (3) and (4) (part of gain attributed to person subject to charge) there shall be substituted the following subsections—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(3)</num><content><p>That part shall be equal to the proportion of the gain that corresponds to the extent of the participator’s interest as a participator in the company.</p></content></subsection><subsection><num>(4)</num><content><p>Subsection (2) above shall not apply in the case of any participator in the company to which the gain accrues where the aggregate amount falling under that subsection to be apportioned to him and to persons connected with him does not exceed one twentieth of the gain.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-174-4"><num>(4)</num><content><p><mod>In subsection (5), paragraph (a) (section not to apply where gain distributed within two years) shall be omitted; and after that subsection there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(5A)</num><intro><p>Where—</p></intro><level class="para1"><num>(a)</num><content><p>any amount of capital gains tax is paid by a person in pursuance of subsection (2) above, and</p></content></level><level class="para1"><num>(b)</num><content><p>an amount in respect of the chargeable gain is distributed (either by way of dividend or distribution of capital or on the dissolution of the company) within 2 years from the time when the chargeable gain accrued to the company,</p></content></level><wrapUp><p>that amount of tax (so far as neither reimbursed by the company nor applied as a deduction under subsection (7) below) shall be applied for reducing or extinguishing any liability of that person to income tax in respect of the distribution or (in the case of a distribution falling to be treated as a disposal on which a chargeable gain accrues to that person) to any capital gains tax in respect of the distribution.</p></wrapUp></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-174-5"><num>(5)</num><intro><p>In subsection (7) (deduction of tax paid in computing gain on shares in the company)—</p></intro><level class="para1" eId="section-174-5-a"><num>(a)</num><content><p>for “not reimbursed by the company)” there shall be inserted “neither reimbursed by the company nor applied under subsection (5A) above for reducing any liability to tax)”; and</p></content></level><level class="para1" eId="section-174-5-b"><num>(b)</num><content><p>for “the shares by reference to which the tax was paid” there shall be substituted “any asset representing his interest as a participator in the company.”</p></content></level></subsection><subsection eId="section-174-6"><num>(6)</num><content><p><mod>After subsection (7) there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(7A)</num><intro><p>In ascertaining for the purposes of subsection (5A) or (7) above the amount of capital gains tax or income tax chargeable on any person for any year on or in respect of any chargeable gain or distribution—</p></intro><level class="para1"><num>(a)</num><content><p>any such distribution as is mentioned in subsection (5A)(b) above and falls to be treated as income of that person for that year shall be regarded as forming the highest part of the income on which he is chargeable to tax for the year;</p></content></level><level class="para1"><num>(b)</num><content><p>any gain accruing in that year on the disposal by that person of any asset representing his interest as a participator in the company shall be regarded as forming the highest part of the gains on which he is chargeable to tax for that year;</p></content></level><level class="para1"><num>(c)</num><content><p>where any such distribution as is mentioned in subsection (5A)(b) above falls to be treated as a disposal on which a gain accrues on which that person is so chargeable, that gain shall be regarded as forming the next highest part of the gains on which he is so chargeable, after any gains falling within paragraph (b) above; and</p></content></level><level class="para1"><num>(d)</num><content><p>any gain treated as accruing to that person in that year by virtue of subsection (2) above shall be regarded as the next highest part of the gains on which he is so chargeable, after any gains falling within paragraph (c) above.</p></content></level></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-174-7"><num>(7)</num><intro><p>In subsection (9) (cases where person charged is a company)—</p></intro><level class="para1" eId="section-174-7-a"><num>(a)</num><content><p>for “the person owning any of the shares in the company” there shall be substituted “a person who is a participator in the company”; and</p></content></level><level class="para1" eId="section-174-7-b"><num>(b)</num><content><p>for the words from “to the shares” onwards there shall be substituted “to the participating company’s interest as a participator in the company to which the gain accrues shall be further apportioned among the participators in the participating company according to the extent of their respective interests as participators, and subsection (2) above shall apply to them accordingly in relation to the amounts further apportioned, and so on through any number of companies.”</p></content></level></subsection><subsection eId="section-174-8"><num>(8)</num><content><p>In subsection (10) (application to trustees), for “owning shares in the company” there shall be substituted “who are participators in the company, or in any company amongst the participators in which the gain is apportioned under subsection (9) above,”.</p></content></subsection><subsection eId="section-174-9"><num>(9)</num><content><p><mod>After subsection (11) there shall be inserted the following subsections—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(12)</num><content><p>In this section “participator”, in relation to a company, has the meaning given by section 417(1) of the Taxes Act for the purposes of Part XI of that Act (close companies).</p></content></subsection><subsection><num>(13)</num><intro><p>In this section—</p></intro><level class="para1"><num>(a)</num><content><p>references to a person’s interest as a participator in a company are references to the interest in the company which is represented by all the factors by reference to which he falls to be treated as such a participator; and</p></content></level><level class="para1"><num>(b)</num><content><p>references to the extent of such an interest are references to the proportion of the interests as participators of all the participators in the company (including any who are not resident or ordinarily resident in the United Kingdom) which on a just and reasonable apportionment is represented by that interest.</p></content></level></subsection><subsection><num>(14)</num><intro><p>For the purposes of this section, where—</p></intro><level class="para1"><num>(a)</num><content><p>the interest of any person in a company is wholly or partly represented by an interest which he has under any settlement (“his beneficial interest”), and</p></content></level><level class="para1"><num>(b)</num><content><p>his beneficial interest is the factor, or one of the factors, by reference to which that person would be treated (apart from this subsection) as having an interest as a participator in that company,</p></content></level><wrapUp><p>the interest as a participator in that company which would be that person’s shall be deemed, to the extent that it is represented by his beneficial interest, to be an interest of the trustees of the settlement (and not of that person), and references in this section, in relation to a company, to a participator shall be construed accordingly.</p></wrapUp></subsection><subsection><num>(15)</num><content><p>Any appeal under section 31 of the Management Act involving any question as to the extent for the purposes of this section of a person’s interest as a participator in a company shall be to the Special Commissioners.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-174-10"><num>(10)</num><intro><p>In paragraph 1(3) of Schedule 5 to the <noteRef href="#m00123" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxation of Chargeable Gains Act 1992 (application of section 86 to section 13 gains)—</p></intro><level class="para1" eId="section-174-10-a"><num>(a)</num><content><p>in paragraph (a), for “hold shares in a company which originate” there shall be substituted “are participators in a company in respect of property which originates”;</p></content></level><level class="para1" eId="section-174-10-b"><num>(b)</num><content><p>in paragraph (b), for “the shares” there shall be substituted “so much of their interest as participators as arises from that property”; and</p></content></level><level class="para1" eId="section-174-10-c"><num>(c)</num><content><p><mod>at the end there shall be added—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><p>Subsections (12) and (13) of section 13 shall apply for the purposes of this sub-paragraph as they apply for the purposes of that section.</p></quotedStructure></mod></p></content></level></subsection><subsection eId="section-174-11"><num>(11)</num><content><p>This section applies to gains accruing on or after 28th November 1995.</p></content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-IV-chapter-VI-crossheading-cancellation-of-tax-advantages"><heading>Cancellation of tax advantages</heading><section eId="section-175"><num>175</num><heading>Transactions in certain securities</heading><subsection eId="section-175-1"><num>(1)</num><content><p>In section 704 of the Taxes Act 1988 (which relates to the cancellation of tax advantages and specifies the circumstances mentioned in section 703(1)) in paragraph D(2)(b) (companies which do not satisfy the conditions there specified with respect to their shares or stocks) for “are authorised to be dealt in on the Stock Exchange, and are so dealt in (regularly or from time to time)” there shall be substituted “are listed in the Official List of the Stock Exchange, and are dealt in on the Stock Exchange regularly or from time to time”.</p></content></subsection><subsection eId="section-175-2"><num>(2)</num><content><p>The reference in paragraph D(2)(b) of section 704 of the Taxes Act 1988 to being listed in the Official List of the Stock Exchange and being dealt in on the Stock Exchange regularly or from time to time shall be taken to include a reference to being dealt in on the Unlisted Securities Market regularly or from time to time, but this subsection is subject to subsection (3) below.</p></content></subsection><subsection eId="section-175-3"><num>(3)</num><intro><p>Subsection (2) above—</p></intro><level class="para1" eId="section-175-3-a"><num>(a)</num><content><p>so far as relating to sub-paragraph (2) of paragraph D of section 704 of the Taxes Act 1988 as it applies for the purposes of sub-paragraph (1) of that paragraph or paragraph E of that section, shall not have effect where the relevant transaction takes place after the date on which the Unlisted Securities Market closes;</p></content></level><level class="para1" eId="section-175-3-b"><num>(b)</num><intro><p>so far as relating to paragraph D of that section as it applies for the purposes of section 210(3) or 211(2) of that Act (which relate to bonus issues following, and other matters to be treated or not treated as, repayment of share capital) shall not have effect—</p></intro><level class="para2" eId="section-175-3-b-i"><num>(i)</num><content><p>in the case of section 210(3), in relation to share capital issued after that date; or</p></content></level><level class="para2" eId="section-175-3-b-ii"><num>(ii)</num><content><p>in the case of section 211(2), in relation to distributions made after that date.</p></content></level></level></subsection><subsection eId="section-175-4"><num>(4)</num><intro><p>Except as provided by subsection (3) above, this section—</p></intro><level class="para1" eId="section-175-4-a"><num>(a)</num><content><p>so far as relating to sub-paragraph (2) of paragraph D of section 704 of the Taxes Act 1988 as it applies for the purposes of sub-paragraph (1) of that paragraph or paragraph E of that section, shall have effect where the relevant transaction takes place after the passing of this Act; and</p></content></level><level class="para1" eId="section-175-4-b"><num>(b)</num><intro><p>so far as relating to paragraph D of that section as it applies for the purposes of section 210(3) or 211(2) of that Act, shall have effect—</p></intro><level class="para2" eId="section-175-4-b-i"><num>(i)</num><content><p>in the case of section 210(3), in relation to share capital issued after the passing of this Act; or</p></content></level><level class="para2" eId="section-175-4-b-ii"><num>(ii)</num><content><p>in the case of section 211(2), in relation to distributions made after the passing of this Act.</p></content></level></level></subsection><subsection eId="section-175-5"><num>(5)</num><intro><p>In this section “the relevant transaction” means—</p></intro><level class="para1" eId="section-175-5-a"><num>(a)</num><content><p>the transaction in securities mentioned in paragraph (b) of section 703(1) of the Taxes Act 1988, or</p></content></level><level class="para1" eId="section-175-5-b"><num>(b)</num><content><p>the first of the two or more such transactions mentioned in that paragraph,</p></content></level><wrapUp><p>as the case may be.</p></wrapUp></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-IV-chapter-VI-crossheading-chargeable-gains-reliefs"><heading>Chargeable gains: reliefs</heading><section eId="section-176"><num>176</num><heading>Retirement relief: age limits</heading><subsection eId="section-176-1"><num>(1)</num><content><p>In each of sections 163 and 164 of, and paragraph 5 of Schedule 6 to, the <noteRef href="#m00124" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxation of Chargeable Gains Act 1992 (retirement relief), for “the age of 55”, wherever occurring, there shall be substituted “the age of 50”.</p></content></subsection><subsection eId="section-176-2"><num>(2)</num><content><p>The amendments made by this section shall apply in relation to disposals on or after 28th November 1995.</p></content></subsection></section><section eId="section-177"><num>177</num><heading>Reinvestment relief on disposal of qualifying corporate bond</heading><content><p><mod>Section 164A of the Taxation of Chargeable Gains Act 1992 (re-investment relief) shall have effect, and be deemed always to have had effect, as if the following subsections were inserted after subsection (2)—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(2A)</num><intro><p>Where the chargeable gain referred to in subsection (1)(a) above is one which (apart from this section) would be deemed to accrue by virtue of section 116(10)(b)—</p></intro><level class="para1"><num>(a)</num><content><p>any reduction falling to be made by virtue of subsection (2)(a) above shall be treated as one made in the consideration mentioned in section 116(10)(a), instead of in the consideration for the disposal of the asset disposed of; but</p></content></level><level class="para1"><num>(b)</num><intro><p>if the disposal on which that gain is deemed to accrue is a disposal of only part of the new asset, it shall be assumed, for the purpose only of making a reduction affecting the amount of that gain—</p></intro><level class="para2"><num>(i)</num><content><p>that the disposal is a disposal of the whole of a new asset,</p></content></level><level class="para2"><num>(ii)</num><content><p>that the gain accruing on that disposal relates to an old asset consisting in the corresponding part of what was in fact the old asset, and</p></content></level><level class="para2"><num>(iii)</num><content><p>that the corresponding part of the consideration deemed to be given for what was in fact the old asset is taken to be the consideration by reference to which the amount of that gain is computed;</p></content></level><wrapUp><p>and in this subsection “new asset” and “old asset” have the same meanings as in section 116.</p></wrapUp></level></subsection><subsection><num>(2B)</num><intro><p>Where a chargeable gain accrues in accordance with subsection (12) of section 116, this Chapter shall have effect—</p></intro><level class="para1"><num>(a)</num><content><p>as if that gain were a gain accruing on the disposal of an asset; and</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to that deemed disposal, as if references in this Chapter to the consideration for the disposal were references to the sum of money falling, apart from this Chapter, to be used in computing the gain accruing under that subsection.</p></content></level></subsection></quotedStructure></mod></p></content></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-IV-chapter-VI-crossheading-special-cases"><heading>Special cases</heading><section eId="section-178"><num>178</num><heading>Sub-contractors in the construction industry</heading><subsection eId="section-178-1"><num>(1)</num><content><p><mod>In section 566 of the Taxes Act 1988 (powers to make regulations in connection with the provisions relating to sub-contractors in the construction industry), after subsection (2) there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(2A)</num><intro><p>The Board may by regulations make provision—</p></intro><level class="para1"><num>(a)</num><content><p>for the issue of documents (to be known as “registration cards”) to persons who are parties, as sub-contractors, to any contract relating to construction operations or who are likely to become such parties;</p></content></level><level class="para1"><num>(b)</num><content><p>for a registration card to contain all such information about the person to whom it is issued as may be required, for the purposes of any regulations under this section, by a person making payments under any such contract;</p></content></level><level class="para1"><num>(c)</num><content><p>for a registration card to take such form and to be valid for such period as may be prescribed by the regulations;</p></content></level><level class="para1"><num>(d)</num><content><p>for the renewal, replacement or cancellation of a registration card;</p></content></level><level class="para1"><num>(e)</num><content><p>for requiring the surrender of a registration card in such circumstances as may be specified in the regulations;</p></content></level><level class="para1"><num>(f)</num><content><p>for requiring the production of a registration card to such persons and in such circumstances as may be so specified;</p></content></level><level class="para1"><num>(g)</num><intro><p>for requiring any person who—</p></intro><level class="para2"><num>(i)</num><content><p>makes or is proposing to make payments to which section 559 applies, and</p></content></level><level class="para2"><num>(ii)</num><content><p>is a person to whom a registration card has to be produced under the regulations,</p></content></level><wrapUp><p>to take steps that ensure that it is produced to him and that he has an opportunity of inspecting it for the purpose of checking that it is a valid registration card issued to the person required to produce it.</p></wrapUp></level></subsection><subsection><num>(2B)</num><content><p>A person who fails to comply with an obligation imposed on him by virtue of subsection (2A)(g) above shall be liable to a penalty not exceeding £3,000.</p></content></subsection><subsection><num>(2C)</num><intro><p>Subject to subsection (2D) below, where—</p></intro><level class="para1"><num>(a)</num><content><p>a person who is a party to a contract relating to any construction operations (“the contractor”) makes or is proposing to make payments to which section 559 applies,</p></content></level><level class="para1"><num>(b)</num><content><p>the contractor is required by regulations under this section to make statements about another party to the contract (“the sub-contractor”) in any return, certificate or other document,</p></content></level><level class="para1"><num>(c)</num><content><p>a registration card containing the information to be stated should have been produced, in accordance with any such regulations, to the contractor, and</p></content></level><level class="para1"><num>(d)</num><content><p>the statements made in the return, certificate or other document, so far as relating to matters the information about which should have been obtainable from the card, are inaccurate or incomplete in any material respect,</p></content></level><wrapUp><p>the contractor shall be liable to a penalty not exceeding £3,000.</p></wrapUp></subsection><subsection><num>(2D)</num><intro><p>A person shall not be liable to a penalty under subsection (2C) above if—</p></intro><level class="para1"><num>(a)</num><content><p>a valid registration card issued to the sub-contractor, or a document which the contractor had reasonable grounds for believing to be such a card, was produced to the contractor and inspected by him before the statements in question were made; and</p></content></level><level class="para1"><num>(b)</num><content><p>the contractor took all such steps as were reasonable, in addition to the inspection of that card, for ensuring that the statements were accurate and complete.</p></content></level></subsection><subsection><num>(2E)</num><content><p>A person liable to a penalty under subsection (2C) above shall not, by reason only of the matters in respect of which he is liable to a penalty under that subsection, be liable to any further penalty under section 98 of the Management Act.</p></content></subsection><subsection><num>(2F)</num><content><p>Regulations under this section may make different provision for different cases.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-178-2"><num>(2)</num><content><p><mod>In the second column of the Table in section 98 of the <noteRef href="#m00125" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxes Management Act 1970 (penalties in respect of certain information provisions), for the entry relating to regulations under section 566(1) and (2) of the Taxes Act 1988 there shall be substituted the following entry—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><p>regulations under section 566(1), (2) or (2A);</p></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection></section><section eId="section-179"><num>179</num><heading>Roll-over relief in respect of ships</heading><content><p>Schedule 35 to this Act (which amends sections 33A to 33F of the <noteRef href="#m00126" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Capital Allowances Act 1990) shall have effect.</p></content></section><section eId="section-180"><num>180</num><heading>Scientific research expenditure: oil licences</heading><subsection eId="section-180-1"><num>(1)</num><content><p><mod>The Capital Allowances Act 1990 shall have effect, and be deemed always to have had effect, with the following sections inserted after section 138 (assets ceasing to belong to traders)—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>138A</num><heading>Disposal of oil licences etc</heading><subsection><num>(1)</num><intro><p>For the purposes of section 138 where—</p></intro><level class="para1"><num>(a)</num><content><p>a person (“the transferor”) disposes of any interest in an oil licence to another (“the transferee”), and</p></content></level><level class="para1"><num>(b)</num><content><p>part of the value of that interest is attributable to any allowable exploration expenditure incurred by the transferor,</p></content></level><wrapUp><p>that disposal shall be deemed (subject to section 138B) to be a disposal by which an asset representing the allowable exploration expenditure to which that part of the value is attributable ceases to belong to the transferor.</p></wrapUp></subsection><subsection><num>(2)</num><content><p>Section 138 shall have effect in relation to the disposal of an interest in an oil licence, to the extent that the disposal is treated by virtue of subsection (1) above as a disposal of an asset representing allowable exploration expenditure, as if the disposal value of the asset were an amount equal to such part of the transferee’s expenditure on acquiring the interest as it is just and reasonable to attribute to the part of the value of that interest that is attributable to the allowable exploration expenditure.</p></content></subsection><subsection><num>(3)</num><content><p>In this section and section 138B references to allowable exploration expenditure are references to any allowable scientific research expenditure of a capital nature incurred on mineral exploration and access.</p></content></subsection><subsection><num>(4)</num><intro><p>In this section and section 138B—</p></intro><hcontainer name="definition"><content><p>“foreign oil concession” means any right to search for or win overseas petroleum, being a right conferred or exercisable (whether or not by virtue of a licence) in relation to a particular area;</p></content></hcontainer><hcontainer name="definition"><intro><p>“interest” in relation to an oil licence, includes, where there is an agreement which—</p></intro><level class="para1"><num>(a)</num><content><p>relates to oil from the whole or any part of the area to which the licence applies, and</p></content></level><level class="para1"><num>(b)</num><content><p>was made before the extraction of the oil to which it relates,</p></content></level><wrapUp><p>any entitlement under that agreement to, or to a share of, either that oil or the proceeds of its sale;</p></wrapUp></hcontainer><hcontainer name="definition"><content><p>“mineral exploration and access” has the same meaning as in Part IV;</p></content></hcontainer><hcontainer name="definition"><intro><p>“oil”—</p></intro><level class="para1"><num>(a)</num><content><p>except in relation to a UK licence, means any petroleum; and</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to such a licence, has the same meaning as in Part I of the <noteRef href="#m00127" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Oil Taxation Act 1975;</p></content></level></hcontainer><hcontainer name="definition"><content><p>“oil licence” means any UK licence or foreign oil concession;</p></content></hcontainer><hcontainer name="definition"><content><p>“overseas petroleum” means any petroleum that exists in its natural condition at a place to which neither the <noteRef href="#m00128" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Petroleum (Production) Act 1934 nor the <noteRef href="#m00129" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Petroleum (Production) Act (Northern Ireland) 1964 applies;</p></content></hcontainer><hcontainer name="definition"><content><p>“petroleum” has the <noteRef href="#m00130" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>same meaning as in the Petroleum (Production) Act 1934; and</p></content></hcontainer><hcontainer name="definition"><content><p>“UK licence” means a licence within the meaning of Part I of the Oil Taxation Act 1975.</p></content></hcontainer></subsection></section><section><num>138B</num><heading>Disposal of oil licences: election for alternative tax treatment</heading><subsection><num>(1)</num><intro><p>Subsections (2) and (3) below apply where—</p></intro><level class="para1"><num>(a)</num><content><p>a person (“the transferor”) disposes of any interest in an oil licence to another (“the transferee”) during the transitional period;</p></content></level><level class="para1"><num>(b)</num><content><p>part of the value of the interest is attributable to allowable exploration expenditure incurred by the transferor; and</p></content></level><level class="para1"><num>(c)</num><content><p>an election is made in accordance with this section specifying an amount as the amount to be treated as so attributable.</p></content></level></subsection><subsection><num>(2)</num><intro><p>Section 138 shall have effect in relation to the disposal as if—</p></intro><level class="para1"><num>(a)</num><content><p>the disposal were a disposal by which an asset representing the allowable exploration expenditure ceases to belong to the transferor; and</p></content></level><level class="para1"><num>(b)</num><content><p>the disposal value of that asset were an amount equal to the amount specified in the election.</p></content></level></subsection><subsection><num>(3)</num><intro><p>For the purposes of Part IV, the amount of any expenditure incurred—</p></intro><level class="para1"><num>(a)</num><content><p>by the transferee in acquiring the interest from the transferor, or</p></content></level><level class="para1"><num>(b)</num><content><p>by any person subsequently acquiring the interest (or an interest deriving from the interest),</p></content></level><wrapUp><p>which is taken to be attributable to expenditure incurred, before the disposal to the transferee, on mineral exploration and access shall be the lesser of the amount specified in the election and the amount which, apart from this subsection, would be taken to be so attributable.</p></wrapUp></subsection><subsection><num>(4)</num><intro><p>An election—</p></intro><level class="para1"><num>(a)</num><content><p>shall be made by notice to the Board given by the transferor; and</p></content></level><level class="para1"><num>(b)</num><content><p>subject to subsection (5) below, shall not have effect unless a copy of it is served on the transferee and the transferee consents to it.</p></content></level></subsection><subsection><num>(5)</num><intro><p>If the Special Commissioners are satisfied—</p></intro><level class="para1"><num>(a)</num><content><p>that the disposal was made under or in pursuance of an agreement entered into by the transferor and the transferee on the mutual understanding that a quantified (or quantifiable) part of the value of the interest disposed of was attributable to allowable exploration expenditure, and</p></content></level><level class="para1"><num>(b)</num><content><p>that the part quantified in accordance with that understanding and the amount specified in the election are the same,</p></content></level><wrapUp><p>they may dispense with the need for the transferee to consent to the election.</p></wrapUp></subsection><subsection><num>(6)</num><content><p>Any question falling to be determined by the Special Commissioners under subsection (5) above shall be determined by them in like manner as if it were an appeal; but both the transferor and the transferee shall be entitled to appear and be heard by those Commissioners or to make representations to them in writing.</p></content></subsection><subsection><num>(7)</num><content><p>Subject to subsection (8) below, an election may specify any amount, including a nil amount, as the amount to be treated as mentioned in subsection (1)(c) above.</p></content></subsection><subsection><num>(8)</num><intro><p>Where—</p></intro><level class="para1"><num>(a)</num><content><p>a return has been made for a chargeable period of the transferor, and</p></content></level><level class="para1"><num>(b)</num><content><p>the return includes, at the time when it is made, an amount which, disregarding the provisions of this section, would be treated under section 138 as a trading receipt accruing in that period,</p></content></level><wrapUp><p>the election must not specify an amount less than the amount included in the return unless the Board agrees the lesser amount in question.</p></wrapUp></subsection><subsection><num>(9)</num><intro><p>An election made in accordance with this section—</p></intro><level class="para1"><num>(a)</num><content><p>is irrevocable; and</p></content></level><level class="para1"><num>(b)</num><content><p>shall not be varied after it is made.</p></content></level></subsection><subsection><num>(10)</num><intro><p>For the purposes of this section a disposal is a disposal made during the transitional period if it is one made—</p></intro><level class="para1"><num>(a)</num><content><p>before 13th September 1995; or</p></content></level><level class="para1"><num>(b)</num><content><p>on or after that date in pursuance of any obligation to make the disposal which, immediately before that date, was an unconditional obligation.</p></content></level></subsection><subsection><num>(11)</num><content><p>For the purposes of subsection (10) above, the fact that a third party who is not connected with the transferor or the transferee may, by exercising any right or withholding any permission, prevent the fulfilment of an obligation does not prevent the obligation from being treated as unconditional.</p></content></subsection><subsection><num>(12)</num><content><p>In subsection (11) above the reference to a third party is a reference to any person, body, government or public authority, whether within or outside the United Kingdom; and section 839 of the principal Act (connected persons) applies for the purposes of that subsection.</p></content></subsection><subsection><num>(13)</num><content><p>All such assessments and adjustments of assessments shall be made as may be necessary to give effect to this section.</p></content></subsection></section></quotedStructure></mod></p></content></subsection><subsection eId="section-180-2"><num>(2)</num><content><p>Section 151(1) of the <noteRef href="#m00131" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Capital Allowances Act 1990 (procedure on apportionments under Parts I, III to VI and Part VIII) shall have effect, and be deemed always to have had effect, as if for “VI” there were substituted “VII”.</p></content></subsection><subsection eId="section-180-3"><num>(3)</num><content><p><mod>In section 118 of the Capital Allowances Act 1990 (mineral extraction licences in the case of assets formerly owned by non-traders), the existing provisions shall become subsection (1) of that section and the following subsection shall be inserted after that subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(2)</num><content><p>Section 138A shall have effect for the purposes of subsection (1) above in relation to expenditure on mineral exploration and access as it has effect for the purposes of section 138 in relation to allowable scientific research expenditure of a capital nature.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-180-4"><num>(4)</num><content><p>Subsection (3) above applies in relation to any sale taking place on or after 13th September 1995.</p></content></subsection><subsection eId="section-180-5"><num>(5)</num><content><p>In any case to which enactments re-enacted in the <noteRef href="#m00132" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Capital Allowances Act 1990 apply instead of that Act, this section shall have effect as if it required amendments equivalent to those made by subsections (1) and (2) above to have effect, and be deemed always to have had effect, in relation to those enactments.</p></content></subsection></section><section eId="section-181"><num>181</num><heading>Overseas petroleum</heading><hcontainer name="wrapper2"><subsection eId="section-181-1"><num>(1)</num><content><p>In subsection (1) of section 196 of the <noteRef href="#m00133" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxation of Chargeable Gains Act 1992 (interpretation of sections 194 and 195), for “licence” there shall be substituted “UK licence”.</p></content></subsection><subsection eId="section-181-2"><num>(2)</num><content><p><mod>After subsection (1) of section 196 of that Act there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1A)</num><intro><p>For the purposes of section 194 a licence other than a UK licence relates to an undeveloped area at any time if, at that time—</p></intro><level class="para1"><num>(a)</num><content><p>no development has actually taken place in any part of the licensed area; and</p></content></level><level class="para1"><num>(b)</num><intro><p>no condition for the carrying out of development anywhere in that area has been satisfied—</p></intro><level class="para2"><num>(i)</num><content><p>by the grant of any consent by the authorities of a country or territory exercising jurisdiction in relation to the area; or</p></content></level><level class="para2"><num>(ii)</num><content><p>by the approval or service on the licensee, by any such authorities, of any programme of development.</p></content></level></level></subsection></quotedStructure><inline name="appendText">;</inline></mod></p></content></subsection></hcontainer><hcontainer name="wrapper2"><intro><p>and in subsection (2) of that section for “subsection (1) above” there shall be substituted “subsections (1) and (1A) above”.</p></intro><subsection eId="section-181-3"><num>(3)</num><content><p><mod>For subsection (5) of section 196 of that Act there shall be substituted the following subsections—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(5)</num><intro><p>In sections 194 and 195 and this section—</p></intro><hcontainer name="definition"><content><p>“foreign oil concession” means any right to search for or win overseas petroleum, being a right conferred or exercisable (whether or not by virtue of a licence) in relation to a particular area;</p></content></hcontainer><hcontainer name="definition"><intro><p>“interest” in relation to a licence, includes, where there is an agreement which—</p></intro><level class="para1"><num>(a)</num><content><p>relates to oil from the whole or any part of the licensed area, and</p></content></level><level class="para1"><num>(b)</num><content><p>was made before the extraction of the oil to which it relates,</p></content></level><wrapUp><p>any entitlement under that agreement to, or to a share of, either that oil or the proceeds of its sale;</p></wrapUp></hcontainer><hcontainer name="definition"><content><p>“licence” means any UK licence or foreign oil concession;</p></content></hcontainer><hcontainer name="definition"><intro><p>“licensed area” (subject to subsection (4) above)—</p></intro><level class="para1"><num>(a)</num><content><p>in relation to a UK licence, has the same meaning as in Part I of the <noteRef href="#m00134" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Oil Taxation Act 1975; and</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to a foreign oil concession, means the area to which the concession applies;</p></content></level></hcontainer><hcontainer name="definition"><intro><p>“licensee”—</p></intro><level class="para1"><num>(a)</num><content><p>in relation to a UK licence, has the same meaning as in Part I of the Oil Taxation Act 1975; and</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to a foreign oil concession, means the person with the concession or any person having an interest in it;</p></content></level></hcontainer><hcontainer name="definition"><intro><p>“oil”—</p></intro><level class="para1"><num>(a)</num><content><p>except in relation to a UK licence, means any petroleum (within the meaning of the <noteRef href="#m00135" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Petroleum (Production) Act 1934); and</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to such a licence, has the same meaning as in Part I of the Oil Taxation Act 1975;</p></content></level></hcontainer><hcontainer name="definition"><content><p>“overseas petroleum” means any oil that exists in its natural condition at a place to which neither the <noteRef href="#m00136" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Petroleum (Production) Act 1934 nor the <noteRef href="#m00137" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Petroleum (Production) Act (Northern Ireland) 1964 applies; and</p></content></hcontainer><hcontainer name="definition"><content><p>“UK licence” means a licence within the meaning of Part I of the <noteRef href="#m00138" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Oil Taxation Act 1975.</p></content></hcontainer></subsection><subsection><num>(5A)</num><content><p>References in sections 194 and 195 to a part disposal of a licence shall include references to the disposal of any interest in a licence.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-181-4"><num>(4)</num><content><p>Subsections (1) to (3) above shall have effect in relation to any disposal on or after 13th September 1995 and subsection (3) shall also have effect, and be deemed always to have had effect, for the construction of section 195 of the <noteRef href="#m00139" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxation of Chargeable Gains Act 1992 in its application to disposals before that date.</p></content></subsection><subsection eId="section-181-5"><num>(5)</num><content><p>Where enactments re-enacted in the <noteRef href="#m00140" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxation of Chargeable Gains Act 1992 apply, instead of that Act, in the case of any disposal before 13th September 1995, this section shall have effect as if it required amendments equivalent to those made by subsection (3) above to have effect, and be deemed always to have had effect, for the construction of any enactment corresponding to section 195 of that Act.</p></content></subsection></hcontainer></section><section eId="section-182"><num>182</num><heading>Controlled foreign companies</heading><content><p>Schedule 36 to this Act (which contains amendments of Chapter IV of Part XVII of the Taxes Act 1988) shall have effect in relation to accounting periods of a controlled foreign company, within the meaning of that Chapter, beginning on or after 28th November 1995.</p></content></section></hcontainer></chapter></part>
<chapter xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" eId="part-IV-chapter-I"><num>Chapter I</num><heading>Principal provisions</heading><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-IV-chapter-I-crossheading-income-tax-charge-rates-and-reliefs"><heading>Income tax charge, rates and reliefs</heading><section eId="section-72"><num>72</num><heading>Charge and rates of income tax for 1996-97</heading><subsection eId="section-72-1"><num>(1)</num><intro><p>Income tax shall be charged for the year 1996-97, and for that year—</p></intro><level class="para1" eId="section-72-1-a"><num>(a)</num><content><p>the lower rate shall be 20 per cent.;</p></content></level><level class="para1" eId="section-72-1-b"><num>(b)</num><content><p>the basic rate shall be 24 per cent.; and</p></content></level><level class="para1" eId="section-72-1-c"><num>(c)</num><content><p>the higher rate shall be 40 per cent.</p></content></level></subsection><subsection eId="section-72-2"><num>(2)</num><intro><p>For the year 1996-97 section 1(2) of the Taxes Act 1988 shall apply—</p></intro><level class="para1" eId="section-72-2-a"><num>(a)</num><content><p>as if the amount specified in paragraph (aa) (the lower rate limit) were £3,900; and</p></content></level><level class="para1" eId="section-72-2-b"><num>(b)</num><content><p>as if the amount specified in paragraph (b) (the basic rate limit) were £25,500;</p></content></level><wrapUp><p>and, accordingly, section 1(4) of that Act (indexation) shall not apply for the year 1996-97.</p></wrapUp></subsection><subsection eId="section-72-3"><num>(3)</num><intro><p>Section 559(4) of the Taxes Act 1988 (deductions from payments to sub-contractors in the construction industry) shall have effect—</p></intro><level class="para1" eId="section-72-3-a"><num>(a)</num><content><p>in relation to payments made on or after 1st July 1996 and before the appointed day (within the meaning of section 139 of the <noteRef href="#m00051" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1995), with “24 per cent.” substituted for “25 per cent.”; and</p></content></level><level class="para1" eId="section-72-3-b"><num>(b)</num><content><p>in relation to payments made on or after that appointed day, as if the substitution for which section 139(1) of the <noteRef href="#m00052" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1995 provided were a substitution of “the relevant percentage” for “24 per cent.”</p></content></level></subsection></section><section eId="section-73"><num>73</num><heading>Application of lower rate to income from savings</heading><subsection eId="section-73-1"><num>(1)</num><content><p><mod>After section 1 of the Taxes Act 1988 there shall be inserted the following section—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>1A</num><heading>Application of lower rate to income from savings and distributions</heading><subsection><num>(1)</num><intro><p>Subject to sections 469(2) and 686, so much of any person’s total income for any year of assessment as—</p></intro><level class="para1"><num>(a)</num><content><p>comprises income to which this section applies, and</p></content></level><level class="para1"><num>(b)</num><content><p>in the case of an individual, is not income falling within section 1(2)(b),</p></content></level><wrapUp><p>shall, by virtue of this section, be charged for that year at the lower rate, instead of at the rate otherwise applicable to it in accordance with section 1(2)(aa) and (a).</p></wrapUp></subsection><subsection><num>(2)</num><intro><p>Subject to subsection (4) below, this section applies to the following income—</p></intro><level class="para1"><num>(a)</num><intro><p>any income chargeable under Case III of Schedule D other than—</p></intro><level class="para2"><num>(i)</num><content><p>relevant annuities and other annual payments that are not interest; and</p></content></level><level class="para2"><num>(ii)</num><content><p>amounts so chargeable by virtue of section 119 or 120;</p></content></level></level><level class="para1"><num>(b)</num><content><p>any income chargeable under Schedule F; and</p></content></level><level class="para1"><num>(c)</num><content><p>subject to subsection (4) below, any equivalent foreign income.</p></content></level></subsection><subsection><num>(3)</num><intro><p>The income which is equivalent foreign income for the purposes of this section is any income chargeable under Case IV or V of Schedule D which—</p></intro><level class="para1"><num>(a)</num><content><p>is equivalent to a description of income falling within subsection (2)(a) above but arises from securities or other possessions out of the United Kingdom; or</p></content></level><level class="para1"><num>(b)</num><content><p>consists in any such dividend or other distribution of a company not resident in the United Kingdom as would be chargeable under Schedule F if the company were resident in the United Kingdom.</p></content></level></subsection><subsection><num>(4)</num><intro><p>This section does not apply to—</p></intro><level class="para1"><num>(a)</num><content><p>any income chargeable to tax under Case IV or V of Schedule D which is such that section 65(5)(a) or (b) provides for the tax to be computed on the full amount of sums received in the United Kingdom; or</p></content></level><level class="para1"><num>(b)</num><content><p>any amounts deemed by virtue of section 695(4)(b) or 696(6) to be income chargeable under Case IV of Schedule D.</p></content></level></subsection><subsection><num>(5)</num><content><p>So much of any person’s income as comprises income to which this section applies shall be treated for the purposes of subsection (1)(b) above and any other provisions of the Income Tax Acts as the highest part of his income.</p></content></subsection><subsection><num>(6)</num><content><p>Subsection (5) above shall have effect subject to section 833(3) but shall otherwise have effect notwithstanding any provision requiring income of any description to be treated for the purposes of the Income Tax Acts (other than section 550) as the highest part of a person’s income.</p></content></subsection><subsection><num>(7)</num><content><p>In this section “relevant annuity” means any annuity other than a purchased life annuity to which section 656 applies or to which that section would apply but for section 657(2)(a).</p></content></subsection></section></quotedStructure></mod></p></content></subsection><subsection eId="section-73-2"><num>(2)</num><content><p><mod>In section 4 of that Act (construction of references to deduction of tax), after subsection (1) there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1A)</num><content><p>As respects deductions from, and tax treated as paid on, any such amounts as constitute or (but for the person whose income they are) would constitute income to which section 1A applies, subsection (1) above shall have effect with a reference to the lower rate in force for the relevant year of assessment substituted for the reference to the basic rate in force for that year.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-73-3"><num>(3)</num><content><p>Subsection (1) above has effect in relation to the year 1996-97 and subsequent years of assessment and subsection (2) above has effect in relation to payments on or after 6th April 1996.</p></content></subsection><subsection eId="section-73-4"><num>(4)</num><content><p>Schedule 6 to this Act (which makes further amendments in connection with the charge at the lower rate on income from savings etc.) shall have effect.</p></content></subsection><subsection eId="section-73-5"><num>(5)</num><content><p>Where any subordinate legislation (within the meaning of the <noteRef href="#m00053" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Interpretation Act 1978) falls to be construed in accordance with section 4 of the Taxes Act 1988, that legislation (whenever it was made) shall be construed, in relation to payments on or after 6th April 1996, subject to subsection (1A) of that section.</p></content></subsection></section><section eId="section-74"><num>74</num><heading>Personal allowances for 1996-97</heading><subsection eId="section-74-1"><num>(1)</num><content><p>For the year 1996-97 the amounts specified in the provisions mentioned in subsection (2) below shall be taken to be as set out in that subsection; and, accordingly, section 257C(1) of the Taxes Act 1988 (indexation), so far as it relates to the amounts so specified, shall not apply for the year 1996-97.</p></content></subsection><subsection eId="section-74-2"><num>(2)</num><intro><p>In section 257 of that Act (personal allowance)—</p></intro><level class="para1" eId="section-74-2-a"><num>(a)</num><content><p>the amount in subsection (1) (basic allowance) shall be £3,765;</p></content></level><level class="para1" eId="section-74-2-b"><num>(b)</num><content><p>the amount in subsection (2) (allowance for persons aged 65 or more but not aged 75 or more) shall be £4,910; and</p></content></level><level class="para1" eId="section-74-2-c"><num>(c)</num><content><p>the amount in subsection (3) (allowance for persons aged 75 or more) shall be £5,090.</p></content></level></subsection></section><section eId="section-75"><num>75</num><heading>Blind person’s allowance</heading><subsection eId="section-75-1"><num>(1)</num><content><p>In section 265(1) of the Taxes Act 1988 (blind person’s allowance), for “£1,200” there shall be substituted “£1,250”.</p></content></subsection><subsection eId="section-75-2"><num>(2)</num><content><p>This section shall apply for the year 1996-97 and subsequent years of assessment.</p></content></subsection></section><section eId="section-76"><num>76</num><heading>Limit on relief for interest</heading><content><p>For the year 1996-97 the qualifying maximum defined in section 367(5) of the Taxes Act 1988 (limit on relief for interest on certain loans) shall be £30,000.</p></content></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-IV-chapter-I-crossheading-corporation-tax-charge-and-rate"><heading>Corporation tax charge and rate</heading><section eId="section-77"><num>77</num><heading>Charge and rate of corporation tax for 1996</heading><content><p>Corporation tax shall be charged for the financial year 1996 at the rate of 33 per cent.</p></content></section><section eId="section-78"><num>78</num><heading>Small companies</heading><intro><p>For the financial year 1996—</p></intro><level class="para1" eId="section-78-a"><num>(a)</num><content><p>the small companies' rate shall be 24 per cent.; and</p></content></level><level class="para1" eId="section-78-b"><num>(b)</num><content><p>the fraction mentioned in section 13(2) of the Taxes Act 1988 (marginal relief for small companies) shall be nine four-hundredths.</p></content></level></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-IV-chapter-I-crossheading-abolition-of-schedule-c-charge-etc"><heading>Abolition of Schedule C charge etc.</heading><section eId="section-79"><num>79</num><heading>Abolition of Schedule C charge etc</heading><subsection eId="section-79-1"><num>(1)</num><intro><p>The charge to tax under Schedule C is abolished—</p></intro><level class="para1" eId="section-79-1-a"><num>(a)</num><content><p>for the purposes of income tax, for the year 1996-97 and subsequent years of assessment;</p></content></level><level class="para1" eId="section-79-1-b"><num>(b)</num><content><p>for the purposes of corporation tax, for accounting periods ending after 31st March 1996.</p></content></level></subsection><subsection eId="section-79-2"><num>(2)</num><content><p>Schedule 7 to this Act (which, together with Chapter II of this Part of this Act, makes provision for imposing a charge under Schedule D on descriptions of income previously charged under Schedule C, and makes connected amendments) shall have effect.</p></content></subsection></section></hcontainer></chapter>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="part-IV-chapter-I-crossheading-income-tax-charge-rates-and-reliefs"><heading>Income tax charge, rates and reliefs</heading><section eId="section-72"><num>72</num><heading>Charge and rates of income tax for 1996-97</heading><subsection eId="section-72-1"><num>(1)</num><intro><p>Income tax shall be charged for the year 1996-97, and for that year—</p></intro><level class="para1" eId="section-72-1-a"><num>(a)</num><content><p>the lower rate shall be 20 per cent.;</p></content></level><level class="para1" eId="section-72-1-b"><num>(b)</num><content><p>the basic rate shall be 24 per cent.; and</p></content></level><level class="para1" eId="section-72-1-c"><num>(c)</num><content><p>the higher rate shall be 40 per cent.</p></content></level></subsection><subsection eId="section-72-2"><num>(2)</num><intro><p>For the year 1996-97 section 1(2) of the Taxes Act 1988 shall apply—</p></intro><level class="para1" eId="section-72-2-a"><num>(a)</num><content><p>as if the amount specified in paragraph (aa) (the lower rate limit) were £3,900; and</p></content></level><level class="para1" eId="section-72-2-b"><num>(b)</num><content><p>as if the amount specified in paragraph (b) (the basic rate limit) were £25,500;</p></content></level><wrapUp><p>and, accordingly, section 1(4) of that Act (indexation) shall not apply for the year 1996-97.</p></wrapUp></subsection><subsection eId="section-72-3"><num>(3)</num><intro><p>Section 559(4) of the Taxes Act 1988 (deductions from payments to sub-contractors in the construction industry) shall have effect—</p></intro><level class="para1" eId="section-72-3-a"><num>(a)</num><content><p>in relation to payments made on or after 1st July 1996 and before the appointed day (within the meaning of section 139 of the <noteRef href="#m00051" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1995), with “24 per cent.” substituted for “25 per cent.”; and</p></content></level><level class="para1" eId="section-72-3-b"><num>(b)</num><content><p>in relation to payments made on or after that appointed day, as if the substitution for which section 139(1) of the <noteRef href="#m00052" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1995 provided were a substitution of “the relevant percentage” for “24 per cent.”</p></content></level></subsection></section><section eId="section-73"><num>73</num><heading>Application of lower rate to income from savings</heading><subsection eId="section-73-1"><num>(1)</num><content><p><mod>After section 1 of the Taxes Act 1988 there shall be inserted the following section—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>1A</num><heading>Application of lower rate to income from savings and distributions</heading><subsection><num>(1)</num><intro><p>Subject to sections 469(2) and 686, so much of any person’s total income for any year of assessment as—</p></intro><level class="para1"><num>(a)</num><content><p>comprises income to which this section applies, and</p></content></level><level class="para1"><num>(b)</num><content><p>in the case of an individual, is not income falling within section 1(2)(b),</p></content></level><wrapUp><p>shall, by virtue of this section, be charged for that year at the lower rate, instead of at the rate otherwise applicable to it in accordance with section 1(2)(aa) and (a).</p></wrapUp></subsection><subsection><num>(2)</num><intro><p>Subject to subsection (4) below, this section applies to the following income—</p></intro><level class="para1"><num>(a)</num><intro><p>any income chargeable under Case III of Schedule D other than—</p></intro><level class="para2"><num>(i)</num><content><p>relevant annuities and other annual payments that are not interest; and</p></content></level><level class="para2"><num>(ii)</num><content><p>amounts so chargeable by virtue of section 119 or 120;</p></content></level></level><level class="para1"><num>(b)</num><content><p>any income chargeable under Schedule F; and</p></content></level><level class="para1"><num>(c)</num><content><p>subject to subsection (4) below, any equivalent foreign income.</p></content></level></subsection><subsection><num>(3)</num><intro><p>The income which is equivalent foreign income for the purposes of this section is any income chargeable under Case IV or V of Schedule D which—</p></intro><level class="para1"><num>(a)</num><content><p>is equivalent to a description of income falling within subsection (2)(a) above but arises from securities or other possessions out of the United Kingdom; or</p></content></level><level class="para1"><num>(b)</num><content><p>consists in any such dividend or other distribution of a company not resident in the United Kingdom as would be chargeable under Schedule F if the company were resident in the United Kingdom.</p></content></level></subsection><subsection><num>(4)</num><intro><p>This section does not apply to—</p></intro><level class="para1"><num>(a)</num><content><p>any income chargeable to tax under Case IV or V of Schedule D which is such that section 65(5)(a) or (b) provides for the tax to be computed on the full amount of sums received in the United Kingdom; or</p></content></level><level class="para1"><num>(b)</num><content><p>any amounts deemed by virtue of section 695(4)(b) or 696(6) to be income chargeable under Case IV of Schedule D.</p></content></level></subsection><subsection><num>(5)</num><content><p>So much of any person’s income as comprises income to which this section applies shall be treated for the purposes of subsection (1)(b) above and any other provisions of the Income Tax Acts as the highest part of his income.</p></content></subsection><subsection><num>(6)</num><content><p>Subsection (5) above shall have effect subject to section 833(3) but shall otherwise have effect notwithstanding any provision requiring income of any description to be treated for the purposes of the Income Tax Acts (other than section 550) as the highest part of a person’s income.</p></content></subsection><subsection><num>(7)</num><content><p>In this section “relevant annuity” means any annuity other than a purchased life annuity to which section 656 applies or to which that section would apply but for section 657(2)(a).</p></content></subsection></section></quotedStructure></mod></p></content></subsection><subsection eId="section-73-2"><num>(2)</num><content><p><mod>In section 4 of that Act (construction of references to deduction of tax), after subsection (1) there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1A)</num><content><p>As respects deductions from, and tax treated as paid on, any such amounts as constitute or (but for the person whose income they are) would constitute income to which section 1A applies, subsection (1) above shall have effect with a reference to the lower rate in force for the relevant year of assessment substituted for the reference to the basic rate in force for that year.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-73-3"><num>(3)</num><content><p>Subsection (1) above has effect in relation to the year 1996-97 and subsequent years of assessment and subsection (2) above has effect in relation to payments on or after 6th April 1996.</p></content></subsection><subsection eId="section-73-4"><num>(4)</num><content><p>Schedule 6 to this Act (which makes further amendments in connection with the charge at the lower rate on income from savings etc.) shall have effect.</p></content></subsection><subsection eId="section-73-5"><num>(5)</num><content><p>Where any subordinate legislation (within the meaning of the <noteRef href="#m00053" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Interpretation Act 1978) falls to be construed in accordance with section 4 of the Taxes Act 1988, that legislation (whenever it was made) shall be construed, in relation to payments on or after 6th April 1996, subject to subsection (1A) of that section.</p></content></subsection></section><section eId="section-74"><num>74</num><heading>Personal allowances for 1996-97</heading><subsection eId="section-74-1"><num>(1)</num><content><p>For the year 1996-97 the amounts specified in the provisions mentioned in subsection (2) below shall be taken to be as set out in that subsection; and, accordingly, section 257C(1) of the Taxes Act 1988 (indexation), so far as it relates to the amounts so specified, shall not apply for the year 1996-97.</p></content></subsection><subsection eId="section-74-2"><num>(2)</num><intro><p>In section 257 of that Act (personal allowance)—</p></intro><level class="para1" eId="section-74-2-a"><num>(a)</num><content><p>the amount in subsection (1) (basic allowance) shall be £3,765;</p></content></level><level class="para1" eId="section-74-2-b"><num>(b)</num><content><p>the amount in subsection (2) (allowance for persons aged 65 or more but not aged 75 or more) shall be £4,910; and</p></content></level><level class="para1" eId="section-74-2-c"><num>(c)</num><content><p>the amount in subsection (3) (allowance for persons aged 75 or more) shall be £5,090.</p></content></level></subsection></section><section eId="section-75"><num>75</num><heading>Blind person’s allowance</heading><subsection eId="section-75-1"><num>(1)</num><content><p>In section 265(1) of the Taxes Act 1988 (blind person’s allowance), for “£1,200” there shall be substituted “£1,250”.</p></content></subsection><subsection eId="section-75-2"><num>(2)</num><content><p>This section shall apply for the year 1996-97 and subsequent years of assessment.</p></content></subsection></section><section eId="section-76"><num>76</num><heading>Limit on relief for interest</heading><content><p>For the year 1996-97 the qualifying maximum defined in section 367(5) of the Taxes Act 1988 (limit on relief for interest on certain loans) shall be £30,000.</p></content></section></hcontainer>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-72"><num>72</num><heading>Charge and rates of income tax for 1996-97</heading><subsection eId="section-72-1"><num>(1)</num><intro><p>Income tax shall be charged for the year 1996-97, and for that year—</p></intro><level class="para1" eId="section-72-1-a"><num>(a)</num><content><p>the lower rate shall be 20 per cent.;</p></content></level><level class="para1" eId="section-72-1-b"><num>(b)</num><content><p>the basic rate shall be 24 per cent.; and</p></content></level><level class="para1" eId="section-72-1-c"><num>(c)</num><content><p>the higher rate shall be 40 per cent.</p></content></level></subsection><subsection eId="section-72-2"><num>(2)</num><intro><p>For the year 1996-97 section 1(2) of the Taxes Act 1988 shall apply—</p></intro><level class="para1" eId="section-72-2-a"><num>(a)</num><content><p>as if the amount specified in paragraph (aa) (the lower rate limit) were £3,900; and</p></content></level><level class="para1" eId="section-72-2-b"><num>(b)</num><content><p>as if the amount specified in paragraph (b) (the basic rate limit) were £25,500;</p></content></level><wrapUp><p>and, accordingly, section 1(4) of that Act (indexation) shall not apply for the year 1996-97.</p></wrapUp></subsection><subsection eId="section-72-3"><num>(3)</num><intro><p>Section 559(4) of the Taxes Act 1988 (deductions from payments to sub-contractors in the construction industry) shall have effect—</p></intro><level class="para1" eId="section-72-3-a"><num>(a)</num><content><p>in relation to payments made on or after 1st July 1996 and before the appointed day (within the meaning of section 139 of the <noteRef href="#m00051" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1995), with “24 per cent.” substituted for “25 per cent.”; and</p></content></level><level class="para1" eId="section-72-3-b"><num>(b)</num><content><p>in relation to payments made on or after that appointed day, as if the substitution for which section 139(1) of the <noteRef href="#m00052" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1995 provided were a substitution of “the relevant percentage” for “24 per cent.”</p></content></level></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-72-1"><num>(1)</num><intro><p>Income tax shall be charged for the year 1996-97, and for that year—</p></intro><level class="para1" eId="section-72-1-a"><num>(a)</num><content><p>the lower rate shall be 20 per cent.;</p></content></level><level class="para1" eId="section-72-1-b"><num>(b)</num><content><p>the basic rate shall be 24 per cent.; and</p></content></level><level class="para1" eId="section-72-1-c"><num>(c)</num><content><p>the higher rate shall be 40 per cent.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-72-1-a"><num>(a)</num><content><p>the lower rate shall be 20 per cent.;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-72-1-b"><num>(b)</num><content><p>the basic rate shall be 24 per cent.; and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-72-1-c"><num>(c)</num><content><p>the higher rate shall be 40 per cent.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-72-2"><num>(2)</num><intro><p>For the year 1996-97 section 1(2) of the Taxes Act 1988 shall apply—</p></intro><level class="para1" eId="section-72-2-a"><num>(a)</num><content><p>as if the amount specified in paragraph (aa) (the lower rate limit) were £3,900; and</p></content></level><level class="para1" eId="section-72-2-b"><num>(b)</num><content><p>as if the amount specified in paragraph (b) (the basic rate limit) were £25,500;</p></content></level><wrapUp><p>and, accordingly, section 1(4) of that Act (indexation) shall not apply for the year 1996-97.</p></wrapUp></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-72-2-a"><num>(a)</num><content><p>as if the amount specified in paragraph (aa) (the lower rate limit) were £3,900; and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-72-2-b"><num>(b)</num><content><p>as if the amount specified in paragraph (b) (the basic rate limit) were £25,500;</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-72-3"><num>(3)</num><intro><p>Section 559(4) of the Taxes Act 1988 (deductions from payments to sub-contractors in the construction industry) shall have effect—</p></intro><level class="para1" eId="section-72-3-a"><num>(a)</num><content><p>in relation to payments made on or after 1st July 1996 and before the appointed day (within the meaning of section 139 of the <noteRef href="#m00051" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1995), with “24 per cent.” substituted for “25 per cent.”; and</p></content></level><level class="para1" eId="section-72-3-b"><num>(b)</num><content><p>in relation to payments made on or after that appointed day, as if the substitution for which section 139(1) of the <noteRef href="#m00052" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1995 provided were a substitution of “the relevant percentage” for “24 per cent.”</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-72-3-a"><num>(a)</num><content><p>in relation to payments made on or after 1st July 1996 and before the appointed day (within the meaning of section 139 of the <noteRef href="#m00051" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1995), with “24 per cent.” substituted for “25 per cent.”; and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-72-3-b"><num>(b)</num><content><p>in relation to payments made on or after that appointed day, as if the substitution for which section 139(1) of the <noteRef href="#m00052" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1995 provided were a substitution of “the relevant percentage” for “24 per cent.”</p></content></level>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-73"><num>73</num><heading>Application of lower rate to income from savings</heading><subsection eId="section-73-1"><num>(1)</num><content><p><mod>After section 1 of the Taxes Act 1988 there shall be inserted the following section—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>1A</num><heading>Application of lower rate to income from savings and distributions</heading><subsection><num>(1)</num><intro><p>Subject to sections 469(2) and 686, so much of any person’s total income for any year of assessment as—</p></intro><level class="para1"><num>(a)</num><content><p>comprises income to which this section applies, and</p></content></level><level class="para1"><num>(b)</num><content><p>in the case of an individual, is not income falling within section 1(2)(b),</p></content></level><wrapUp><p>shall, by virtue of this section, be charged for that year at the lower rate, instead of at the rate otherwise applicable to it in accordance with section 1(2)(aa) and (a).</p></wrapUp></subsection><subsection><num>(2)</num><intro><p>Subject to subsection (4) below, this section applies to the following income—</p></intro><level class="para1"><num>(a)</num><intro><p>any income chargeable under Case III of Schedule D other than—</p></intro><level class="para2"><num>(i)</num><content><p>relevant annuities and other annual payments that are not interest; and</p></content></level><level class="para2"><num>(ii)</num><content><p>amounts so chargeable by virtue of section 119 or 120;</p></content></level></level><level class="para1"><num>(b)</num><content><p>any income chargeable under Schedule F; and</p></content></level><level class="para1"><num>(c)</num><content><p>subject to subsection (4) below, any equivalent foreign income.</p></content></level></subsection><subsection><num>(3)</num><intro><p>The income which is equivalent foreign income for the purposes of this section is any income chargeable under Case IV or V of Schedule D which—</p></intro><level class="para1"><num>(a)</num><content><p>is equivalent to a description of income falling within subsection (2)(a) above but arises from securities or other possessions out of the United Kingdom; or</p></content></level><level class="para1"><num>(b)</num><content><p>consists in any such dividend or other distribution of a company not resident in the United Kingdom as would be chargeable under Schedule F if the company were resident in the United Kingdom.</p></content></level></subsection><subsection><num>(4)</num><intro><p>This section does not apply to—</p></intro><level class="para1"><num>(a)</num><content><p>any income chargeable to tax under Case IV or V of Schedule D which is such that section 65(5)(a) or (b) provides for the tax to be computed on the full amount of sums received in the United Kingdom; or</p></content></level><level class="para1"><num>(b)</num><content><p>any amounts deemed by virtue of section 695(4)(b) or 696(6) to be income chargeable under Case IV of Schedule D.</p></content></level></subsection><subsection><num>(5)</num><content><p>So much of any person’s income as comprises income to which this section applies shall be treated for the purposes of subsection (1)(b) above and any other provisions of the Income Tax Acts as the highest part of his income.</p></content></subsection><subsection><num>(6)</num><content><p>Subsection (5) above shall have effect subject to section 833(3) but shall otherwise have effect notwithstanding any provision requiring income of any description to be treated for the purposes of the Income Tax Acts (other than section 550) as the highest part of a person’s income.</p></content></subsection><subsection><num>(7)</num><content><p>In this section “relevant annuity” means any annuity other than a purchased life annuity to which section 656 applies or to which that section would apply but for section 657(2)(a).</p></content></subsection></section></quotedStructure></mod></p></content></subsection><subsection eId="section-73-2"><num>(2)</num><content><p><mod>In section 4 of that Act (construction of references to deduction of tax), after subsection (1) there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1A)</num><content><p>As respects deductions from, and tax treated as paid on, any such amounts as constitute or (but for the person whose income they are) would constitute income to which section 1A applies, subsection (1) above shall have effect with a reference to the lower rate in force for the relevant year of assessment substituted for the reference to the basic rate in force for that year.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-73-3"><num>(3)</num><content><p>Subsection (1) above has effect in relation to the year 1996-97 and subsequent years of assessment and subsection (2) above has effect in relation to payments on or after 6th April 1996.</p></content></subsection><subsection eId="section-73-4"><num>(4)</num><content><p>Schedule 6 to this Act (which makes further amendments in connection with the charge at the lower rate on income from savings etc.) shall have effect.</p></content></subsection><subsection eId="section-73-5"><num>(5)</num><content><p>Where any subordinate legislation (within the meaning of the <noteRef href="#m00053" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Interpretation Act 1978) falls to be construed in accordance with section 4 of the Taxes Act 1988, that legislation (whenever it was made) shall be construed, in relation to payments on or after 6th April 1996, subject to subsection (1A) of that section.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-73-1"><num>(1)</num><content><p><mod>After section 1 of the Taxes Act 1988 there shall be inserted the following section—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>1A</num><heading>Application of lower rate to income from savings and distributions</heading><subsection><num>(1)</num><intro><p>Subject to sections 469(2) and 686, so much of any person’s total income for any year of assessment as—</p></intro><level class="para1"><num>(a)</num><content><p>comprises income to which this section applies, and</p></content></level><level class="para1"><num>(b)</num><content><p>in the case of an individual, is not income falling within section 1(2)(b),</p></content></level><wrapUp><p>shall, by virtue of this section, be charged for that year at the lower rate, instead of at the rate otherwise applicable to it in accordance with section 1(2)(aa) and (a).</p></wrapUp></subsection><subsection><num>(2)</num><intro><p>Subject to subsection (4) below, this section applies to the following income—</p></intro><level class="para1"><num>(a)</num><intro><p>any income chargeable under Case III of Schedule D other than—</p></intro><level class="para2"><num>(i)</num><content><p>relevant annuities and other annual payments that are not interest; and</p></content></level><level class="para2"><num>(ii)</num><content><p>amounts so chargeable by virtue of section 119 or 120;</p></content></level></level><level class="para1"><num>(b)</num><content><p>any income chargeable under Schedule F; and</p></content></level><level class="para1"><num>(c)</num><content><p>subject to subsection (4) below, any equivalent foreign income.</p></content></level></subsection><subsection><num>(3)</num><intro><p>The income which is equivalent foreign income for the purposes of this section is any income chargeable under Case IV or V of Schedule D which—</p></intro><level class="para1"><num>(a)</num><content><p>is equivalent to a description of income falling within subsection (2)(a) above but arises from securities or other possessions out of the United Kingdom; or</p></content></level><level class="para1"><num>(b)</num><content><p>consists in any such dividend or other distribution of a company not resident in the United Kingdom as would be chargeable under Schedule F if the company were resident in the United Kingdom.</p></content></level></subsection><subsection><num>(4)</num><intro><p>This section does not apply to—</p></intro><level class="para1"><num>(a)</num><content><p>any income chargeable to tax under Case IV or V of Schedule D which is such that section 65(5)(a) or (b) provides for the tax to be computed on the full amount of sums received in the United Kingdom; or</p></content></level><level class="para1"><num>(b)</num><content><p>any amounts deemed by virtue of section 695(4)(b) or 696(6) to be income chargeable under Case IV of Schedule D.</p></content></level></subsection><subsection><num>(5)</num><content><p>So much of any person’s income as comprises income to which this section applies shall be treated for the purposes of subsection (1)(b) above and any other provisions of the Income Tax Acts as the highest part of his income.</p></content></subsection><subsection><num>(6)</num><content><p>Subsection (5) above shall have effect subject to section 833(3) but shall otherwise have effect notwithstanding any provision requiring income of any description to be treated for the purposes of the Income Tax Acts (other than section 550) as the highest part of a person’s income.</p></content></subsection><subsection><num>(7)</num><content><p>In this section “relevant annuity” means any annuity other than a purchased life annuity to which section 656 applies or to which that section would apply but for section 657(2)(a).</p></content></subsection></section></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-73-2"><num>(2)</num><content><p><mod>In section 4 of that Act (construction of references to deduction of tax), after subsection (1) there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1A)</num><content><p>As respects deductions from, and tax treated as paid on, any such amounts as constitute or (but for the person whose income they are) would constitute income to which section 1A applies, subsection (1) above shall have effect with a reference to the lower rate in force for the relevant year of assessment substituted for the reference to the basic rate in force for that year.</p></content></subsection></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-73-3"><num>(3)</num><content><p>Subsection (1) above has effect in relation to the year 1996-97 and subsequent years of assessment and subsection (2) above has effect in relation to payments on or after 6th April 1996.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-73-4"><num>(4)</num><content><p>Schedule 6 to this Act (which makes further amendments in connection with the charge at the lower rate on income from savings etc.) shall have effect.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-73-5"><num>(5)</num><content><p>Where any subordinate legislation (within the meaning of the <noteRef href="#m00053" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Interpretation Act 1978) falls to be construed in accordance with section 4 of the Taxes Act 1988, that legislation (whenever it was made) shall be construed, in relation to payments on or after 6th April 1996, subject to subsection (1A) of that section.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-74"><num>74</num><heading>Personal allowances for 1996-97</heading><subsection eId="section-74-1"><num>(1)</num><content><p>For the year 1996-97 the amounts specified in the provisions mentioned in subsection (2) below shall be taken to be as set out in that subsection; and, accordingly, section 257C(1) of the Taxes Act 1988 (indexation), so far as it relates to the amounts so specified, shall not apply for the year 1996-97.</p></content></subsection><subsection eId="section-74-2"><num>(2)</num><intro><p>In section 257 of that Act (personal allowance)—</p></intro><level class="para1" eId="section-74-2-a"><num>(a)</num><content><p>the amount in subsection (1) (basic allowance) shall be £3,765;</p></content></level><level class="para1" eId="section-74-2-b"><num>(b)</num><content><p>the amount in subsection (2) (allowance for persons aged 65 or more but not aged 75 or more) shall be £4,910; and</p></content></level><level class="para1" eId="section-74-2-c"><num>(c)</num><content><p>the amount in subsection (3) (allowance for persons aged 75 or more) shall be £5,090.</p></content></level></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-74-1"><num>(1)</num><content><p>For the year 1996-97 the amounts specified in the provisions mentioned in subsection (2) below shall be taken to be as set out in that subsection; and, accordingly, section 257C(1) of the Taxes Act 1988 (indexation), so far as it relates to the amounts so specified, shall not apply for the year 1996-97.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-74-2"><num>(2)</num><intro><p>In section 257 of that Act (personal allowance)—</p></intro><level class="para1" eId="section-74-2-a"><num>(a)</num><content><p>the amount in subsection (1) (basic allowance) shall be £3,765;</p></content></level><level class="para1" eId="section-74-2-b"><num>(b)</num><content><p>the amount in subsection (2) (allowance for persons aged 65 or more but not aged 75 or more) shall be £4,910; and</p></content></level><level class="para1" eId="section-74-2-c"><num>(c)</num><content><p>the amount in subsection (3) (allowance for persons aged 75 or more) shall be £5,090.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-74-2-a"><num>(a)</num><content><p>the amount in subsection (1) (basic allowance) shall be £3,765;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-74-2-b"><num>(b)</num><content><p>the amount in subsection (2) (allowance for persons aged 65 or more but not aged 75 or more) shall be £4,910; and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-74-2-c"><num>(c)</num><content><p>the amount in subsection (3) (allowance for persons aged 75 or more) shall be £5,090.</p></content></level>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-75"><num>75</num><heading>Blind person’s allowance</heading><subsection eId="section-75-1"><num>(1)</num><content><p>In section 265(1) of the Taxes Act 1988 (blind person’s allowance), for “£1,200” there shall be substituted “£1,250”.</p></content></subsection><subsection eId="section-75-2"><num>(2)</num><content><p>This section shall apply for the year 1996-97 and subsequent years of assessment.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-75-1"><num>(1)</num><content><p>In section 265(1) of the Taxes Act 1988 (blind person’s allowance), for “£1,200” there shall be substituted “£1,250”.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-75-2"><num>(2)</num><content><p>This section shall apply for the year 1996-97 and subsequent years of assessment.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-76"><num>76</num><heading>Limit on relief for interest</heading><content><p>For the year 1996-97 the qualifying maximum defined in section 367(5) of the Taxes Act 1988 (limit on relief for interest on certain loans) shall be £30,000.</p></content></section>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="part-IV-chapter-I-crossheading-corporation-tax-charge-and-rate"><heading>Corporation tax charge and rate</heading><section eId="section-77"><num>77</num><heading>Charge and rate of corporation tax for 1996</heading><content><p>Corporation tax shall be charged for the financial year 1996 at the rate of 33 per cent.</p></content></section><section eId="section-78"><num>78</num><heading>Small companies</heading><intro><p>For the financial year 1996—</p></intro><level class="para1" eId="section-78-a"><num>(a)</num><content><p>the small companies' rate shall be 24 per cent.; and</p></content></level><level class="para1" eId="section-78-b"><num>(b)</num><content><p>the fraction mentioned in section 13(2) of the Taxes Act 1988 (marginal relief for small companies) shall be nine four-hundredths.</p></content></level></section></hcontainer>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-77"><num>77</num><heading>Charge and rate of corporation tax for 1996</heading><content><p>Corporation tax shall be charged for the financial year 1996 at the rate of 33 per cent.</p></content></section>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-78"><num>78</num><heading>Small companies</heading><intro><p>For the financial year 1996—</p></intro><level class="para1" eId="section-78-a"><num>(a)</num><content><p>the small companies' rate shall be 24 per cent.; and</p></content></level><level class="para1" eId="section-78-b"><num>(b)</num><content><p>the fraction mentioned in section 13(2) of the Taxes Act 1988 (marginal relief for small companies) shall be nine four-hundredths.</p></content></level></section>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-78-a"><num>(a)</num><content><p>the small companies' rate shall be 24 per cent.; and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-78-b"><num>(b)</num><content><p>the fraction mentioned in section 13(2) of the Taxes Act 1988 (marginal relief for small companies) shall be nine four-hundredths.</p></content></level>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="part-IV-chapter-I-crossheading-abolition-of-schedule-c-charge-etc"><heading>Abolition of Schedule C charge etc.</heading><section eId="section-79"><num>79</num><heading>Abolition of Schedule C charge etc</heading><subsection eId="section-79-1"><num>(1)</num><intro><p>The charge to tax under Schedule C is abolished—</p></intro><level class="para1" eId="section-79-1-a"><num>(a)</num><content><p>for the purposes of income tax, for the year 1996-97 and subsequent years of assessment;</p></content></level><level class="para1" eId="section-79-1-b"><num>(b)</num><content><p>for the purposes of corporation tax, for accounting periods ending after 31st March 1996.</p></content></level></subsection><subsection eId="section-79-2"><num>(2)</num><content><p>Schedule 7 to this Act (which, together with Chapter II of this Part of this Act, makes provision for imposing a charge under Schedule D on descriptions of income previously charged under Schedule C, and makes connected amendments) shall have effect.</p></content></subsection></section></hcontainer>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-79"><num>79</num><heading>Abolition of Schedule C charge etc</heading><subsection eId="section-79-1"><num>(1)</num><intro><p>The charge to tax under Schedule C is abolished—</p></intro><level class="para1" eId="section-79-1-a"><num>(a)</num><content><p>for the purposes of income tax, for the year 1996-97 and subsequent years of assessment;</p></content></level><level class="para1" eId="section-79-1-b"><num>(b)</num><content><p>for the purposes of corporation tax, for accounting periods ending after 31st March 1996.</p></content></level></subsection><subsection eId="section-79-2"><num>(2)</num><content><p>Schedule 7 to this Act (which, together with Chapter II of this Part of this Act, makes provision for imposing a charge under Schedule D on descriptions of income previously charged under Schedule C, and makes connected amendments) shall have effect.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-79-1"><num>(1)</num><intro><p>The charge to tax under Schedule C is abolished—</p></intro><level class="para1" eId="section-79-1-a"><num>(a)</num><content><p>for the purposes of income tax, for the year 1996-97 and subsequent years of assessment;</p></content></level><level class="para1" eId="section-79-1-b"><num>(b)</num><content><p>for the purposes of corporation tax, for accounting periods ending after 31st March 1996.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-79-1-a"><num>(a)</num><content><p>for the purposes of income tax, for the year 1996-97 and subsequent years of assessment;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-79-1-b"><num>(b)</num><content><p>for the purposes of corporation tax, for accounting periods ending after 31st March 1996.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-79-2"><num>(2)</num><content><p>Schedule 7 to this Act (which, together with Chapter II of this Part of this Act, makes provision for imposing a charge under Schedule D on descriptions of income previously charged under Schedule C, and makes connected amendments) shall have effect.</p></content></subsection>
<chapter xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" eId="part-IV-chapter-II"><num>Chapter II</num><heading>Loan relationships</heading><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-IV-chapter-II-crossheading-introductory-provisions"><heading>Introductory provisions</heading><section eId="section-80"><num>80</num><heading>Taxation of loan relationships</heading><subsection eId="section-80-1"><num>(1)</num><content><p>For the purposes of corporation tax all profits and gains arising to a company from its loan relationships shall be chargeable to tax as income in accordance with this Chapter.</p></content></subsection><subsection eId="section-80-2"><num>(2)</num><content><p>To the extent that a company is a party to a loan relationship for the purposes of a trade carried on by the company, profits and gains arising from the relationship shall be brought into account in computing the profits and gains of the trade.</p></content></subsection><subsection eId="section-80-3"><num>(3)</num><content><p>Profits and gains arising from a loan relationship of a company that are not brought into account under subsection (2) above shall be brought into account as profits and gains chargeable to tax under Case III of Schedule D.</p></content></subsection><subsection eId="section-80-4"><num>(4)</num><content><p>This Chapter shall also have effect for the purposes of corporation tax for determining how any deficit on a company’s loan relationships is to be brought into account in any case, including a case where none of the company’s loan relationships falls by virtue of this Chapter to be regarded as a source of income.</p></content></subsection><subsection eId="section-80-5"><num>(5)</num><content><p>Subject to any express provision to the contrary, the amounts which in the case of any company are brought into account in accordance with this Chapter as respects any matter shall be the only amounts brought into account for the purposes of corporation tax as respects that matter.</p></content></subsection></section><section eId="section-81"><num>81</num><heading>Meaning of “loan relationship” etc</heading><subsection eId="section-81-1"><num>(1)</num><intro><p>Subject to the following provisions of this section, a company has a loan relationship for the purposes of the Corporation Tax Acts wherever—</p></intro><level class="para1" eId="section-81-1-a"><num>(a)</num><content><p>the company stands (whether by reference to a security or otherwise) in the position of a creditor or debtor as respects any money debt; and</p></content></level><level class="para1" eId="section-81-1-b"><num>(b)</num><content><p>that debt is one arising from a transaction for the lending of money;</p></content></level><wrapUp><p>and references to a loan relationship and to a company’s being a party to a loan relationship shall be construed accordingly.</p></wrapUp></subsection><subsection eId="section-81-2"><num>(2)</num><intro><p>For the purposes of this Chapter a money debt is a debt which falls to be settled—</p></intro><level class="para1" eId="section-81-2-a"><num>(a)</num><content><p>by the payment of money; or</p></content></level><level class="para1" eId="section-81-2-b"><num>(b)</num><content><p>by the transfer of a right to settlement under a debt which is itself a money debt.</p></content></level></subsection><subsection eId="section-81-3"><num>(3)</num><content><p>Subject to subsection (4) below, where an instrument is issued by any person for the purpose of representing security for, or the rights of a creditor in respect of, any money debt, then (whatever the circumstances of the issue of the instrument) that debt shall be taken for the purposes of this Chapter to be a debt arising from a transaction for the lending of money.</p></content></subsection><subsection eId="section-81-4"><num>(4)</num><content><p>For the purposes of this Chapter a debt shall not be taken to arise from a transaction for the lending of money to the extent that it is a debt arising from rights conferred by shares in a company.</p></content></subsection><subsection eId="section-81-5"><num>(5)</num><intro><p>For the purposes of this Chapter—</p></intro><level class="para1" eId="section-81-5-a"><num>(a)</num><content><p>references to payments or interest under a loan relationship are references to payments or interest made or payable in pursuance of any of the rights or liabilities under that relationship; and</p></content></level><level class="para1" eId="section-81-5-b"><num>(b)</num><content><p>references to rights or liabilities under a loan relationship are references to any of the rights or liabilities under the agreement or arrangements by virtue of which that relationship subsists;</p></content></level><wrapUp><p>and those rights or liabilities shall be taken to include the rights or liabilities attached to any security which, being a security issued in relation to the money debt in question, is a security representing that relationship.</p></wrapUp></subsection><subsection eId="section-81-6"><num>(6)</num><content><p>In this Chapter “money” includes money expressed in a currency other than sterling.</p></content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-IV-chapter-II-crossheading-taxation-of-profits-and-gains-and-relief-for-deficits"><heading>Taxation of profits and gains and relief for deficits</heading><section eId="section-82"><num>82</num><heading>Method of bringing amounts into account</heading><subsection eId="section-82-1"><num>(1)</num><intro><p>For the purposes of corporation tax—</p></intro><level class="para1" eId="section-82-1-a"><num>(a)</num><content><p>the profits and gains arising from the loan relationships of a company, and</p></content></level><level class="para1" eId="section-82-1-b"><num>(b)</num><content><p>any deficit on a company’s loan relationships,</p></content></level><wrapUp><p>shall be computed in accordance with this section using the credits and debits given for the accounting period in question by the following provisions of this Chapter.</p></wrapUp></subsection><subsection eId="section-82-2"><num>(2)</num><intro><p>To the extent that, in any accounting period, a loan relationship of a company is one to which it is a party for the purposes of a trade carried on by it, the credits and debits given in respect of that relationship for that period shall be treated (according to whether they are credits or debits) either—</p></intro><level class="para1" eId="section-82-2-a"><num>(a)</num><content><p>as receipts of that trade falling to be brought into account in computing the profits and gains of that trade for that period; or</p></content></level><level class="para1" eId="section-82-2-b"><num>(b)</num><content><p>as expenses of that trade which are deductible in computing those profits and gains.</p></content></level></subsection><subsection eId="section-82-3"><num>(3)</num><intro><p>Where for any accounting period there are, in respect of the loan relationships of a company, both—</p></intro><level class="para1" eId="section-82-3-a"><num>(a)</num><content><p>credits that are not brought into account under subsection (2) above (“non-trading credits”), and</p></content></level><level class="para1" eId="section-82-3-b"><num>(b)</num><content><p>debits that are not so brought into account (“non-trading debits”),</p></content></level><wrapUp><p>the aggregate of the non-trading debits shall be subtracted from the aggregate of the non-trading credits to give the amount to be brought into account under subsection (4) below.</p></wrapUp></subsection><subsection eId="section-82-4"><num>(4)</num><intro><p>That amount is the amount which for any accounting period is to be taken (according to whether the aggregate of the non-trading credits or the aggregate of the non-trading debits is the greater) to be either—</p></intro><level class="para1" eId="section-82-4-a"><num>(a)</num><content><p>the amount of the company’s profits and gains for that period that are chargeable under Case III of Schedule D as profits and gains arising from the company’s loan relationships; or</p></content></level><level class="para1" eId="section-82-4-b"><num>(b)</num><content><p>the amount of the company’s non-trading deficit for that period on its loan relationships.</p></content></level></subsection><subsection eId="section-82-5"><num>(5)</num><content><p>Where for any accounting period a company has non-trading credits but no non-trading debits in respect of its loan relationships, the aggregate amount of the credits shall be the amount of the company’s profits and gains for that period that are chargeable under Case III of Schedule D as profits and gains arising from those relationships.</p></content></subsection><subsection eId="section-82-6"><num>(6)</num><content><p>Where for any accounting period a company has non-trading debits but no non-trading credits in respect of its loan relationships, that company shall have a non-trading deficit on its loan relationships for that period equal to the aggregate of the debits.</p></content></subsection><subsection eId="section-82-7"><num>(7)</num><content><p>Subsection (2) above, so far as it provides for any amount to be deductible as mentioned in paragraph (b) of that subsection, shall have effect notwithstanding anything in section 74 of the Taxes Act 1988 (allowable deductions).</p></content></subsection></section><section eId="section-83"><num>83</num><heading>Non-trading deficit on loan relationships</heading><subsection eId="section-83-1"><num>(1)</num><content><p>This section applies for the purposes of corporation tax where for any accounting period (“the deficit period”) there is a non-trading deficit on a company’s loan relationships.</p></content></subsection><subsection eId="section-83-2"><num>(2)</num><intro><p>The company may make a claim for the whole or any part of the deficit to be treated in any of the following ways, that is to say—</p></intro><level class="para1" eId="section-83-2-a"><num>(a)</num><content><p>to be set off against any profits of the company (of whatever description) for the deficit period;</p></content></level><level class="para1" eId="section-83-2-b"><num>(b)</num><content><p>to be treated as eligible for group relief;</p></content></level><level class="para1" eId="section-83-2-c"><num>(c)</num><content><p>to be carried back to be set off against profits for earlier accounting periods; or</p></content></level><level class="para1" eId="section-83-2-d"><num>(d)</num><content><p>to be carried forward and set against non-trading profits for the next accounting period.</p></content></level></subsection><subsection eId="section-83-3"><num>(3)</num><content><p>So much of the deficit for the deficit period as is not the subject of a claim under subsection (2) above shall be carried forward so as to be brought into account for the purposes of this Chapter as a non-trading debit (“a carried-forward debit”) for the accounting period immediately following the deficit period.</p></content></subsection><subsection eId="section-83-4"><num>(4)</num><content><p>No claim shall be made under subsection (2)(a) to (c) above in respect of so much (if any) of the non-trading deficit of a company for any accounting period as is equal to the amount by which that deficit is greater than it would have been if any carried-forward debit for that period had been disregarded.</p></content></subsection><subsection eId="section-83-5"><num>(5)</num><content><p>No part of any non-trading deficit of a company established for charitable purposes only shall be set off against the profits of that or any other company in pursuance of a claim under subsection (2) above.</p></content></subsection><subsection eId="section-83-6"><num>(6)</num><content><p>A claim under subsection (2) above must be made within the period of two years immediately following the end of the relevant period, or within such further period as the Board may allow.</p></content></subsection><subsection eId="section-83-7"><num>(7)</num><intro><p>In subsection (6) above “the relevant period”—</p></intro><level class="para1" eId="section-83-7-a"><num>(a)</num><content><p>in relation to a claim under subsection (2)(a), (b) or (c) above, means the deficit period; and</p></content></level><level class="para1" eId="section-83-7-b"><num>(b)</num><content><p>in relation to a claim under subsection (2)(d) above, means the accounting period immediately following the deficit period.</p></content></level></subsection><subsection eId="section-83-8"><num>(8)</num><content><p>Different claims may be made under subsection (2) above as respects different parts of a non-trading deficit for any period, but no claim may be made as respects any part of a deficit to which another claim made under that subsection relates.</p></content></subsection><subsection eId="section-83-9"><num>(9)</num><content><p>Schedule 8 to this Act (which makes provision about what happens where a claim is made under subsection (2) above) shall have effect.</p></content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-IV-chapter-II-crossheading-computational-provisions-etc"><heading>Computational provisions etc.</heading><section eId="section-84"><num>84</num><heading>Debits and credits brought into account</heading><subsection eId="section-84-1"><num>(1)</num><intro><p>The credits and debits to be brought into account in the case of any company in respect of its loan relationships shall be the sums which, in accordance with an authorised accounting method and when taken together, fairly represent, for the accounting period in question—</p></intro><level class="para1" eId="section-84-1-a"><num>(a)</num><content><p>all profits, gains and losses of the company, including those of a capital nature, which (disregarding interest and any charges or expenses) arise to the company from its loan relationships and related transactions; and</p></content></level><level class="para1" eId="section-84-1-b"><num>(b)</num><content><p>all interest under the company’s loan relationship and all charges and expenses incurred by the company under or for the purposes of its loan relationships and related transactions.</p></content></level></subsection><subsection eId="section-84-2"><num>(2)</num><intro><p>The reference in subsection (1) above to the profits, gains and losses arising to a company—</p></intro><level class="para1" eId="section-84-2-a"><num>(a)</num><content><p>does not include a reference to any amounts required to be transferred to the company’s share premium account; but</p></content></level><level class="para1" eId="section-84-2-b"><num>(b)</num><content><p>does include a reference to any profits, gains or losses which, in accordance with normal accountancy practice, are carried to or sustained by any other reserve maintained by the company.</p></content></level></subsection><subsection eId="section-84-3"><num>(3)</num><intro><p>The reference in subsection (1)(b) above to charges and expenses incurred for the purposes of a company’s loan relationships and related transactions does not include a reference to any charges or expenses other than those incurred directly—</p></intro><level class="para1" eId="section-84-3-a"><num>(a)</num><content><p>in bringing any of those relationships into existence;</p></content></level><level class="para1" eId="section-84-3-b"><num>(b)</num><content><p>in entering into or giving effect to any of those transactions;</p></content></level><level class="para1" eId="section-84-3-c"><num>(c)</num><content><p>in making payments under any of those relationships or in pursuance of any of those transactions; or</p></content></level><level class="para1" eId="section-84-3-d"><num>(d)</num><content><p>in taking steps for ensuring the receipt of payments under any of those relationships or in accordance with any of those transactions.</p></content></level></subsection><subsection eId="section-84-4"><num>(4)</num><intro><p>Where—</p></intro><level class="para1" eId="section-84-4-a"><num>(a)</num><intro><p>any charges or expenses are incurred by a company for purposes connected—</p></intro><level class="para2" eId="section-84-4-a-i"><num>(i)</num><content><p>with entering into a loan relationship or related transaction, or</p></content></level><level class="para2" eId="section-84-4-a-ii"><num>(ii)</num><content><p>with giving effect to any obligation that might arise under a loan relationship or related transaction,</p></content></level></level><level class="para1" eId="section-84-4-b"><num>(b)</num><content><p>at the time when the charges or expenses are incurred, the relationship or transaction is one into which the company may enter but has not entered, and</p></content></level><level class="para1" eId="section-84-4-c"><num>(c)</num><content><p>if that relationship or transaction had been entered into by that company, the charges or expenses would be charges or expenses incurred as mentioned in subsection (3) above,</p></content></level><wrapUp><p>those charges or expenses shall be treated for the purposes of this Chapter as charges or expenses in relation to which debits may be brought into account in accordance with subsection (1)(b) above to the same extent as if the relationship or transaction had been entered into.</p></wrapUp></subsection><subsection eId="section-84-5"><num>(5)</num><content><p>In this section “related transaction”, in relation to a loan relationship, means any disposal or acquisition (in whole or in part) of rights or liabilities under that relationship.</p></content></subsection><subsection eId="section-84-6"><num>(6)</num><content><p>The cases where there shall be taken for the purposes of this section to be a disposal and acquisition of rights or liabilities under a loan relationship shall include those where such rights or liabilities are transferred or extinguished by any sale, gift, exchange, surrender, redemption or release.</p></content></subsection><subsection eId="section-84-7"><num>(7)</num><content><p>This section has effect subject to Schedule 9 to this Act (which contains provision disallowing certain debits and credits for the purposes of this Chapter and making assumptions about how an authorised accounting method is to be applied in certain cases).</p></content></subsection></section><section eId="section-85"><num>85</num><heading>Authorised accounting methods</heading><subsection eId="section-85-1"><num>(1)</num><intro><p>Subject to the following provisions of this Chapter, the alternative accounting methods that are authorised for the purposes of this Chapter are—</p></intro><level class="para1" eId="section-85-1-a"><num>(a)</num><content><p>an accruals basis of accounting; and</p></content></level><level class="para1" eId="section-85-1-b"><num>(b)</num><content><p>a mark to market basis of accounting under which any loan relationship to which that basis is applied is brought into account in each accounting period at a fair value.</p></content></level></subsection><subsection eId="section-85-2"><num>(2)</num><intro><p>An accounting method applied in any case shall be treated as authorised for the purposes of this Chapter only if—</p></intro><level class="para1" eId="section-85-2-a"><num>(a)</num><content><p>it conforms (subject to paragraphs (b) and (c) below) to normal accountancy practice, as followed in cases where such practice allows the use of that method;</p></content></level><level class="para1" eId="section-85-2-b"><num>(b)</num><content><p>it contains proper provision for allocating payments under a loan relationship to accounting periods; and</p></content></level><level class="para1" eId="section-85-2-c"><num>(c)</num><content><p>where it is an accruals basis of accounting, it does not contain any provision (other than provision comprised in authorised arrangements for bad debt) that gives debits by reference to the valuation at different times of any asset representing a loan relationship.</p></content></level></subsection><subsection eId="section-85-3"><num>(3)</num><intro><p>In the case of an accruals basis of accounting, proper provision for allocating payments under a loan relationship to accounting periods is provision which—</p></intro><level class="para1" eId="section-85-3-a"><num>(a)</num><content><p>allocates payments to the period to which they relate, without regard to the periods in which they are made or received or in which they become due and payable;</p></content></level><level class="para1" eId="section-85-3-b"><num>(b)</num><content><p>includes provision which, where payments relate to two or more periods, apportions them on a just and reasonable basis between the different periods;</p></content></level><level class="para1" eId="section-85-3-c"><num>(c)</num><content><p>assumes, subject to authorised arrangements for bad debt, that, so far as any company in the position of a creditor is concerned, every amount payable under the relationship will be paid in full as it becomes due;</p></content></level><level class="para1" eId="section-85-3-d"><num>(d)</num><content><p>secures the making of the adjustments required in the case of the relationship by authorised arrangements for bad debt; and</p></content></level><level class="para1" eId="section-85-3-e"><num>(e)</num><content><p>provides, subject to authorised arrangements for bad debt and for writing off government investments, that, where there is a release of any liability under the relationship, the appropriate amount in respect of the release is credited to the debtor in the accounting period in which the release takes place.</p></content></level></subsection><subsection eId="section-85-4"><num>(4)</num><content><p>In the case of a mark to market basis of accounting, proper provision for allocating payments under a loan relationship to accounting periods is provision which allocates payments to the accounting period in which they become due and payable.</p></content></subsection><subsection eId="section-85-5"><num>(5)</num><intro><p>In this section—</p></intro><level class="para1" eId="section-85-5-a"><num>(a)</num><content><p>the references to authorised arrangements for bad debt are references to accounting arrangements under which debits and credits are brought into account in conformity with the provisions of paragraph 5 of Schedule 9 to this Act; and</p></content></level><level class="para1" eId="section-85-5-b"><num>(b)</num><content><p>the reference to authorised arrangements for writing off government investments is a reference to accounting arrangements that give effect to paragraph 7 of that Schedule.</p></content></level></subsection><subsection eId="section-85-6"><num>(6)</num><intro><p>In this section “fair value”, in relation to any loan relationship of a company, means the amount which, at the time as at which the value falls to be determined, is the amount that the company would obtain from or, as the case may be, would have to pay to an independent person for—</p></intro><level class="para1" eId="section-85-6-a"><num>(a)</num><content><p>the transfer of all the company’s rights under the relationship in respect of amounts which at that time are not yet due and payable; and</p></content></level><level class="para1" eId="section-85-6-b"><num>(b)</num><content><p>the release of all the company’s liabilities under the relationship in respect of amounts which at that time are not yet due and payable.</p></content></level></subsection></section><section eId="section-86"><num>86</num><heading>Application of accounting methods</heading><subsection eId="section-86-1"><num>(1)</num><content><p>This section has effect, subject to the following provisions of this Chapter, for the determination of which of the alternative authorised accounting methods that are available by virtue of section 85 above is to be used as respects the loan relationships of a company.</p></content></subsection><subsection eId="section-86-2"><num>(2)</num><content><p>Different methods may be used as respects different relationships or, as respects the same relationship, for different accounting periods or for different parts of the same accounting period.</p></content></subsection><subsection eId="section-86-3"><num>(3)</num><intro><p>If a basis of accounting which is or equates with an authorised accounting method is used as respects any loan relationship of a company in a company’s statutory accounts, then the method which is to be used for the purposes of this Chapter as respects that relationship for the accounting period, or part of a period, for which that basis is used in those accounts shall be—</p></intro><level class="para1" eId="section-86-3-a"><num>(a)</num><content><p>where the basis used in those accounts is an authorised accounting method, that method; and</p></content></level><level class="para1" eId="section-86-3-b"><num>(b)</num><content><p>where it is not, the authorised accounting method with which it equates.</p></content></level></subsection><subsection eId="section-86-4"><num>(4)</num><content><p>For any period or part of a period for which the authorised accounting method to be used as respects a loan relationship of a company is not determined under subsection (3) above, an authorised accruals basis of accounting shall be used for the purposes of this Chapter as respects that loan relationship.</p></content></subsection><subsection eId="section-86-5"><num>(5)</num><intro><p>For the purposes of this section (but subject to subsection (6) below)—</p></intro><level class="para1" eId="section-86-5-a"><num>(a)</num><content><p>a basis of accounting equates with an authorised accruals basis of accounting if it purports to allocate payments under a loan relationship to accounting periods according to when they are taken to accrue; and</p></content></level><level class="para1" eId="section-86-5-b"><num>(b)</num><intro><p>a basis of accounting equates with an authorised mark to market basis of accounting if (without equating with an authorised accruals basis of accounting) it purports in respect of a loan relationship—</p></intro><level class="para2" eId="section-86-5-b-i"><num>(i)</num><content><p>to produce credits or debits computed by reference to the determination, as at different times in an accounting period, of a fair value; and</p></content></level><level class="para2" eId="section-86-5-b-ii"><num>(ii)</num><content><p>to produce credits or debits relating to payments under that relationship according to when they become due and payable.</p></content></level></level></subsection><subsection eId="section-86-6"><num>(6)</num><intro><p>An accounting method which purports to make any such allocation of payments under a loan relationship as is mentioned in subsection (5)(a) above shall be taken for the purposes of this section to equate with an authorised mark to market basis of accounting (rather than with an authorised accruals basis of accounting) if—</p></intro><level class="para1" eId="section-86-6-a"><num>(a)</num><content><p>it purports to bring that relationship into account in each accounting period at a value which would be a fair value if the valuation were made on the basis that interest under the relationship were to be disregarded to the extent that it has already accrued; and</p></content></level><level class="para1" eId="section-86-6-b"><num>(b)</num><content><p>the credits and debits produced in the case of that relationship by that method (when it is properly applied) correspond, for all practical purposes, to the credits and debits produced in the case of that relationship, and for the same accounting period, by an authorised mark to market basis of accounting.</p></content></level></subsection><subsection eId="section-86-7"><num>(7)</num><content><p>In this section “fair value” has the same meaning as in section 85 above.</p></content></subsection><subsection eId="section-86-8"><num>(8)</num><intro><p>In this section “statutory accounts”, in relation to a company, means—</p></intro><level class="para1" eId="section-86-8-a"><num>(a)</num><content><p>any accounts relating to that company that are drawn up in accordance with any requirements of the <noteRef href="#m00054" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Companies Act 1985 or the <noteRef href="#m00055" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Companies (Northern Ireland) Order 1986 that apply in relation to that company;</p></content></level><level class="para1" eId="section-86-8-b"><num>(b)</num><content><p>any accounts relating to that company that are drawn up in accordance with any requirements of regulations under section 70 of the <noteRef href="#m00056" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Friendly Societies Act 1992 that apply in relation to that company;</p></content></level><level class="para1" eId="section-86-8-c"><num>(c)</num><content><p>any accounts relating to that company which are accounts to which Part I of Schedule 21C to the <noteRef href="#m00057" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Companies Act 1985 or Part I of Schedule 21D to that Act (companies with UK branches) applies;</p></content></level><level class="para1" eId="section-86-8-d"><num>(d)</num><intro><p>in the case of a company which—</p></intro><level class="para2" eId="section-86-8-d-i"><num>(i)</num><content><p>is not subject to any such requirements as are mentioned in paragraphs (a) or (b) above, and</p></content></level><level class="para2" eId="section-86-8-d-ii"><num>(ii)</num><content><p>is a company in whose case there are no accounts for the period in question that fall within paragraph (c) above,</p></content></level><wrapUp><p>any accounts relating to the company drawn up in accordance with requirements imposed in relation to that company under the law of its home State; and</p></wrapUp></level><level class="para1" eId="section-86-8-e"><num>(e)</num><intro><p>in the case of a company which—</p></intro><level class="para2" eId="section-86-8-e-i"><num>(i)</num><content><p>is not subject to any such requirements as are mentioned in paragraphs (a), (b) or (d) above, and</p></content></level><level class="para2" eId="section-86-8-e-ii"><num>(ii)</num><content><p>is a company in whose case there are no accounts for the period in question that fall within paragraph (c) above,</p></content></level><wrapUp><p>the accounts relating to the company that most closely correspond to the accounts which, in the case of a company formed and registered under the Companies Act 1985, are required under that Act.</p></wrapUp></level></subsection><subsection eId="section-86-9"><num>(9)</num><content><p>For the purposes of subsection (8) above the home State of a company is the country or territory under whose law the company is incorporated.</p></content></subsection></section><section eId="section-87"><num>87</num><heading>Accounting method where parties have a connection</heading><subsection eId="section-87-1"><num>(1)</num><intro><p>This section applies in the case of a loan relationship of a company where for any accounting period there is a connection between the company and—</p></intro><level class="para1" eId="section-87-1-a"><num>(a)</num><content><p>in the case of a debtor relationship of the company, a person standing in the position of a creditor as respects the debt in question; or</p></content></level><level class="para1" eId="section-87-1-b"><num>(b)</num><content><p>in the case of a creditor relationship of the company, a person standing in the position of a debtor as respects that debt.</p></content></level></subsection><subsection eId="section-87-2"><num>(2)</num><content><p>The only accounting method authorised for the purposes of this Chapter for use by the company as respects the loan relationship shall be an authorised accruals basis of accounting.</p></content></subsection><subsection eId="section-87-3"><num>(3)</num><intro><p>For the purposes of this section there is a connection between a company and another person for an accounting period if (subject to subsection (4) and section 88 below)—</p></intro><level class="para1" eId="section-87-3-a"><num>(a)</num><content><p>the other person is a company and there is a time in that period, or in the two years before the beginning of that period, when one of the companies has had control of the other;</p></content></level><level class="para1" eId="section-87-3-b"><num>(b)</num><content><p>the other person is a company and there is a time in that period, or in those two years, when both the companies have been under the control of the same person; or</p></content></level><level class="para1" eId="section-87-3-c"><num>(c)</num><content><p>there is a time in that accounting period, or in those two years, when the company was a close company and the other person was a participator in that company or the associate of a person who was such a participator at that time.</p></content></level></subsection><subsection eId="section-87-4"><num>(4)</num><content><p>Two companies which have at any time been under the control of the same person shall not, by virtue of that fact, be taken for the purposes of this section to be companies between whom there is a connection if the person was the Crown, a Minister of the Crown, a government department, a Northern Ireland department, a foreign sovereign power or an international organisation.</p></content></subsection><subsection eId="section-87-5"><num>(5)</num><content><p>The references in subsection (1) above to a person who stands in the position of a creditor or debtor as respects a loan relationship include references to a person who indirectly stands in that position by reference to a series of loan relationships.</p></content></subsection><subsection eId="section-87-6"><num>(6)</num><content><p>Subsections (2) to (6) of section 416 of the Taxes Act 1988 (meaning of “control”) shall apply for the purposes of this section as they apply for the purposes of Part XI of that Act.</p></content></subsection><subsection eId="section-87-7"><num>(7)</num><content><p>Subject to subsection (8) below, in this section “participator” and “associate” have the meanings given for the purposes of Part XI of the Taxes Act 1988 by section 417 of that Act.</p></content></subsection><subsection eId="section-87-8"><num>(8)</num><content><p>A person shall not for the purposes of this section be regarded as a participator in relation to a company by reason only that he is a loan creditor of the company.</p></content></subsection></section><section eId="section-88"><num>88</num><heading>Exemption from section 87 in certain cases</heading><subsection eId="section-88-1"><num>(1)</num><content><p>Subject to subsection (5) below, where a creditor relationship of a company is one to which that company is a party in any accounting period in exempt circumstances, any connection for that accounting period between the company and a person who stands in the position of a debtor as respects the debt shall be disregarded for the purposes of section 87 above.</p></content></subsection><subsection eId="section-88-2"><num>(2)</num><intro><p>A company having a creditor relationship in any accounting period shall, for that period, be taken for the purposes of this section to be a party to that relationship in exempt circumstances if—</p></intro><level class="para1" eId="section-88-2-a"><num>(a)</num><content><p>the company, in the course of carrying on any activities forming an integral part of a trade carried on by that company in that period, disposes of or acquires assets representing creditor relationships;</p></content></level><level class="para1" eId="section-88-2-b"><num>(b)</num><content><p>that period is one for which the company uses an authorised mark to market basis of accounting as respects all the creditor relationships represented by assets acquired in the course of those activities;</p></content></level><level class="para1" eId="section-88-2-c"><num>(c)</num><content><p>the asset representing the creditor relationship in question was acquired in the course of those activities;</p></content></level><level class="para1" eId="section-88-2-d"><num>(d)</num><intro><p>that asset is either—</p></intro><level class="para2" eId="section-88-2-d-i"><num>(i)</num><content><p>listed on a recognised stock exchange at the end of that period; or</p></content></level><level class="para2" eId="section-88-2-d-ii"><num>(ii)</num><content><p>a security the redemption of which must occur within twelve months of its issue;</p></content></level></level><level class="para1" eId="section-88-2-e"><num>(e)</num><content><p>there is a time in that period when assets of the same kind as the asset representing the loan relationship in question are in the beneficial ownership of persons other than the company; and</p></content></level><level class="para1" eId="section-88-2-f"><num>(f)</num><content><p>there is not more than three months, in aggregate, in that accounting period during which the equivalent of 30 per cent. or more of the assets of that kind is in the beneficial ownership of connected persons.</p></content></level></subsection><subsection eId="section-88-3"><num>(3)</num><intro><p>An insurance company carrying on basic life assurance and general annuity business and having a creditor relationship in any accounting period shall, for that period, be taken for the purposes of this section to be a party to that relationship in exempt circumstances if—</p></intro><level class="para1" eId="section-88-3-a"><num>(a)</num><content><p>assets of the company representing any of its creditor relationships are linked for that period to its basic life assurance and general annuity business;</p></content></level><level class="para1" eId="section-88-3-b"><num>(b)</num><content><p>that period is one for which the company uses an authorised mark to market basis of accounting as respects all the creditor relationships of the company represented by assets that are so linked;</p></content></level><level class="para1" eId="section-88-3-c"><num>(c)</num><content><p>the asset representing the creditor relationship in question is so linked;</p></content></level><level class="para1" eId="section-88-3-d"><num>(d)</num><intro><p>that asset is either—</p></intro><level class="para2" eId="section-88-3-d-i"><num>(i)</num><content><p>listed on a recognised stock exchange at the end of that period; or</p></content></level><level class="para2" eId="section-88-3-d-ii"><num>(ii)</num><content><p>a security the redemption of which must occur within twelve months of its issue;</p></content></level></level><level class="para1" eId="section-88-3-e"><num>(e)</num><content><p>there is a time in that period when assets of the same kind as the asset representing the creditor relationship in question are in the beneficial ownership of persons other than the company; and</p></content></level><level class="para1" eId="section-88-3-f"><num>(f)</num><content><p>there is not more than three months, in aggregate, in that accounting period during which the equivalent of 30 per cent. or more of the assets of that kind is in the beneficial ownership of connected persons.</p></content></level></subsection><subsection eId="section-88-4"><num>(4)</num><intro><p>For the purposes of subsections (2) and (3) above—</p></intro><level class="para1" eId="section-88-4-a"><num>(a)</num><content><p>assets shall be taken to be of the same kind where they are treated as being of the same kind by the practice of any recognised stock exchange, or would be so treated if dealt with on such a stock exchange; and</p></content></level><level class="para1" eId="section-88-4-b"><num>(b)</num><intro><p>a connected person has the beneficial ownership of an asset wherever there is, or (apart from this section) would be, a connection (within the meaning of section 87 above) between—</p></intro><level class="para2" eId="section-88-4-b-i"><num>(i)</num><content><p>the person who has the beneficial ownership of the asset, and</p></content></level><level class="para2" eId="section-88-4-b-ii"><num>(ii)</num><content><p>a person who stands in the position of a debtor as respects the money debt by reference to which any loan relationship represented by that asset subsists.</p></content></level></level></subsection><subsection eId="section-88-5"><num>(5)</num><intro><p>Where for any accounting period—</p></intro><level class="para1" eId="section-88-5-a"><num>(a)</num><content><p>subsection (1) above has effect in the case of a creditor relationship of a company, and</p></content></level><level class="para1" eId="section-88-5-b"><num>(b)</num><content><p>the person who stands in the position of a debtor as respects the debt in question is also a company,</p></content></level><wrapUp><p>that subsection shall not apply for determining, for the purposes of so much of section 87 above as relates to the corresponding debtor relationship, whether there is a connection between the two companies.</p></wrapUp></subsection><subsection eId="section-88-6"><num>(6)</num><content><p>Subsection (5) of section 87 above shall apply for the purposes of this section as it applies for the purposes of that section.</p></content></subsection><subsection eId="section-88-7"><num>(7)</num><content><p>In this section “basic life assurance and general annuity business” and “insurance company” have the same meanings as in Chapter I of Part XII of the Taxes Act 1988, and section 432ZA of that Act (linked assets) shall apply for the purposes of this section as it applies for the purposes of that Chapter.</p></content></subsection></section><section eId="section-89"><num>89</num><heading>Inconsistent application of accounting methods</heading><subsection eId="section-89-1"><num>(1)</num><content><p>Where there is any inconsistency or other material difference between the way in which any authorised accounting method is applied as respects the same loan relationship in successive accounting periods, a balancing credit or balancing debit shall be brought into account in the second of those periods (“the second period”).</p></content></subsection><subsection eId="section-89-2"><num>(2)</num><intro><p>The amount of the balancing credit or debit shall be computed as respects the relationship in question by—</p></intro><level class="para1" eId="section-89-2-a"><num>(a)</num><content><p>taking the amount given by subsection (3) below and the amount given by subsection (4) below; and</p></content></level><level class="para1" eId="section-89-2-b"><num>(b)</num><content><p>then aggregating those amounts (treating any debit as a negative amount) to produce a net credit or net debit.</p></content></level></subsection><subsection eId="section-89-3"><num>(3)</num><intro><p>The amount given by this subsection is whichever of the following is applicable—</p></intro><level class="para1" eId="section-89-3-a"><num>(a)</num><intro><p>a debit equal to the amount (if any) by which the first of the following amounts exceeds the second, that is to say—</p></intro><level class="para2" eId="section-89-3-a-i"><num>(i)</num><content><p>the aggregate of the credits actually brought into account for all previous periods in which the accounting method was used; and</p></content></level><level class="para2" eId="section-89-3-a-ii"><num>(ii)</num><content><p>the aggregate of the credits that would have been brought into account if that method had been applied in those periods in the same way as it was applied in the second period;</p></content></level></level><level class="para1" eId="section-89-3-b"><num>(b)</num><content><p>a credit equal to the amount (if any) by which the second aggregate mentioned in paragraph (a) above exceeds the first; or</p></content></level><level class="para1" eId="section-89-3-c"><num>(c)</num><content><p>if both those aggregates are the same, nil.</p></content></level></subsection><subsection eId="section-89-4"><num>(4)</num><intro><p>The amount given by this subsection is whichever of the following is applicable—</p></intro><level class="para1" eId="section-89-4-a"><num>(a)</num><intro><p>a credit equal to the amount (if any) by which the first of the following amounts exceeds the second, that is to say—</p></intro><level class="para2" eId="section-89-4-a-i"><num>(i)</num><content><p>the aggregate of the debits actually brought into account for all previous periods in which the accounting method was used; and</p></content></level><level class="para2" eId="section-89-4-a-ii"><num>(ii)</num><content><p>the aggregate of the debits that would have been brought into account if that method had been applied in those periods in the same way as it was applied in the second period;</p></content></level></level><level class="para1" eId="section-89-4-b"><num>(b)</num><content><p>a debit equal to the amount (if any) by which the second aggregate mentioned in paragraph (a) above exceeds the first; or</p></content></level><level class="para1" eId="section-89-4-c"><num>(c)</num><content><p>if both those aggregates are the same, nil.</p></content></level></subsection><subsection eId="section-89-5"><num>(5)</num><content><p>In this section “previous period” means any accounting period before the second period.</p></content></subsection></section><section eId="section-90"><num>90</num><heading>Changes of accounting method</heading><subsection eId="section-90-1"><num>(1)</num><content><p>This section applies where different authorised accounting methods are used for the purposes of this Chapter as respects the same loan relationship for different parts of the same accounting period or for successive accounting periods.</p></content></subsection><subsection eId="section-90-2"><num>(2)</num><intro><p>Where, in the case of any loan relationship, the use of any authorised accounting method is superseded in the course of any accounting period by the use of another—</p></intro><level class="para1" eId="section-90-2-a"><num>(a)</num><content><p>the assumptions specified in subsection (4) below shall be made;</p></content></level><level class="para1" eId="section-90-2-b"><num>(b)</num><content><p>each method shall be applied on those assumptions as respects the part of the period for which it is used; and</p></content></level><level class="para1" eId="section-90-2-c"><num>(c)</num><content><p>the credits and debits given by the application of those methods on those assumptions shall be brought into account in the accounting period in which the change of method takes effect.</p></content></level></subsection><subsection eId="section-90-3"><num>(3)</num><intro><p>Where, in the case of any loan relationship, the use of any authorised accounting method is superseded as from the beginning of an accounting period by the use of another—</p></intro><level class="para1" eId="section-90-3-a"><num>(a)</num><intro><p>a net credit or debit shall be computed (treating any debit used in the computation as a negative amount) by—</p></intro><level class="para2" eId="section-90-3-a-i"><num>(i)</num><content><p>aggregating the credits and debits which, on the assumptions specified in subsection (4) below, would have been given in respect of that relationship for the successive accounting periods by the use for each period of the accounting method actually used for that period;</p></content></level><level class="para2" eId="section-90-3-a-ii"><num>(ii)</num><content><p>aggregating the credits and debits so given without the making of those assumptions; and</p></content></level><level class="para2" eId="section-90-3-a-iii"><num>(iii)</num><content><p>subtracting the second aggregate from the first;</p></content></level><wrapUp><p>and</p></wrapUp></level><level class="para1" eId="section-90-3-b"><num>(b)</num><content><p>the net credit or debit shall be brought into account for the purposes of this Chapter in the accounting period as from the beginning of which the change of method takes effect.</p></content></level></subsection><subsection eId="section-90-4"><num>(4)</num><intro><p>The assumptions mentioned in subsections (2) and (3) above are—</p></intro><level class="para1" eId="section-90-4-a"><num>(a)</num><content><p>that the company ceased to be a party to the relationship immediately before the end of the period, or part of a period, for which the superseded method is used;</p></content></level><level class="para1" eId="section-90-4-b"><num>(b)</num><content><p>that the company again became a party to that relationship as from the beginning of the period or, as the case may be, part of a period for which the other authorised accounting method is used;</p></content></level><level class="para1" eId="section-90-4-c"><num>(c)</num><content><p>that the relationship to which the company is deemed to have become a party is separate and distinct from the one to which it is deemed to have ceased to be a party;</p></content></level><level class="para1" eId="section-90-4-d"><num>(d)</num><content><p>that the amount payable under the transaction comprised in each of the assumptions specified in paragraphs (a) and (b) above was equal to the fair value of the relationship; and</p></content></level><level class="para1" eId="section-90-4-e"><num>(e)</num><content><p>so far as relevant, that that amount became due at the time when the company is deemed to have ceased to be a party to the relationship or, as the case may be, to have again become a party to it.</p></content></level></subsection><subsection eId="section-90-5"><num>(5)</num><intro><p>Where—</p></intro><level class="para1" eId="section-90-5-a"><num>(a)</num><content><p>a mark to market basis of accounting is superseded by an accruals basis of accounting in the case of any loan relationship, and</p></content></level><level class="para1" eId="section-90-5-b"><num>(b)</num><content><p>the amount which would have accrued in respect of that relationship in the period or part of a period for which the accruals basis of accounting is used falls to be determined for the purposes of this section in accordance with the assumptions mentioned in subsection (4) above,</p></content></level><wrapUp><p>that amount shall be taken for those purposes to be equal to the amount resulting from the subtraction of the amount given by subsection (6)(a) below from the amount given by subsection (6)(b) below.</p></wrapUp></subsection><subsection eId="section-90-6"><num>(6)</num><intro><p>Those amounts are—</p></intro><level class="para1" eId="section-90-6-a"><num>(a)</num><content><p>the amount which by virtue of the assumptions mentioned in subsection (4) above is given as an opening value for the period or part of a period; and</p></content></level><level class="para1" eId="section-90-6-b"><num>(b)</num><content><p>the amount equal to whatever, in the computation in accordance with an authorised accruals basis of accounting of the amount accruing in that period or part of a period, would have been taken to be the closing value applicable as at the end of that period or part of a period if such a basis of accounting had always been used as respects the relationship.</p></content></level></subsection><subsection eId="section-90-7"><num>(7)</num><content><p>In this section “fair value” has the same meaning as in section 85 above.</p></content></subsection></section><section eId="section-91"><num>91</num><heading>Payments subject to deduction of tax</heading><subsection eId="section-91-1"><num>(1)</num><intro><p>This section applies where—</p></intro><level class="para1" eId="section-91-1-a"><num>(a)</num><content><p>any company receives a payment of interest on which it bears income tax by deduction; and</p></content></level><level class="para1" eId="section-91-1-b"><num>(b)</num><content><p>in the case of that company, a credit relating to that interest has been brought into account for the purposes of this Chapter for an accounting period ending more than two years before the receipt of the payment.</p></content></level></subsection><subsection eId="section-91-2"><num>(2)</num><content><p>On a claim made by the company to an officer of the Board, section 7(2) or, as the case may be, 11(3) of the Taxes Act 1988 (deducted income tax to be set against liability to corporation tax) shall have effect in relation to the income tax on the payment as if the interest had fallen to be taken into account for the purposes of corporation tax in the accounting period in which the payment of that interest is received.</p></content></subsection><subsection eId="section-91-3"><num>(3)</num><content><p>In determining for the purposes of this section which accounting period is the accounting period for which a credit relating to interest paid subsequently was brought into account, every payment of interest to a company under a loan relationship of that company shall be assumed to be a payment in discharge of the earliest outstanding liability to that company in respect of interest payable under the relationship.</p></content></subsection><subsection eId="section-91-4"><num>(4)</num><intro><p>For the purposes of this section, the earliest outstanding liability to interest payable under a loan relationship of a company shall be identified, in relation to any payment of such interest, according to the authorised accounting method most recently used as respects that relationship, so that—</p></intro><level class="para1" eId="section-91-4-a"><num>(a)</num><content><p>if that method is an authorised accruals basis of accounting, it shall be determined by reference to the time when the interest accrued; and</p></content></level><level class="para1" eId="section-91-4-b"><num>(b)</num><content><p>if that method is an authorised mark to market basis of accounting, it shall be determined by reference to the time when the interest became due and payable.</p></content></level></subsection><subsection eId="section-91-5"><num>(5)</num><content><p>In subsection (4) above the reference, in relation to a payment of interest made to a company in any accounting period, to the authorised accounting method most recently used as respects that relationship is a reference to the authorised accounting method which, in the case of that company, has been used as respects that relationship for the accounting period which, when the payment is made, is the most recent for which amounts in respect of that relationship have been brought into account for the purposes of this Chapter.</p></content></subsection><subsection eId="section-91-6"><num>(6)</num><intro><p>A claim under this section shall not be made in respect of any payment of interest at any time after the later of the following, that is to say—</p></intro><level class="para1" eId="section-91-6-a"><num>(a)</num><content><p>the time two years after the end of the accounting period in which the payment is received; and</p></content></level><level class="para1" eId="section-91-6-b"><num>(b)</num><content><p>the time six years after the end of the accounting period for which the credit in respect of the interest was brought into account for the purposes of this Chapter.</p></content></level></subsection><subsection eId="section-91-7"><num>(7)</num><intro><p>Where—</p></intro><level class="para1" eId="section-91-7-a"><num>(a)</num><content><p>there is a payment of interest to a company under a loan relationship of that company, and</p></content></level><level class="para1" eId="section-91-7-b"><num>(b)</num><content><p>the company is prevented by virtue of subsection (6) above from making any claim under this section in respect of that payment,</p></content></level><wrapUp><p>the company shall not be entitled to make any claim under paragraph 5 of Schedule 16 to the Taxes Act 1988 (set off of income tax borne against income tax payable) in respect of that payment.</p></wrapUp></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-IV-chapter-II-crossheading-special-cases"><heading>Special cases</heading><section eId="section-92"><num>92</num><heading>Convertible securities etc</heading><subsection eId="section-92-1"><num>(1)</num><intro><p>This section applies to an asset if—</p></intro><level class="para1" eId="section-92-1-a"><num>(a)</num><content><p>the asset represents a creditor relationship of a company;</p></content></level><level class="para1" eId="section-92-1-b"><num>(b)</num><content><p>the rights attached to the asset include provision by virtue of which the company is or may become entitled to acquire (whether by conversion or exchange or otherwise) any shares in a company;</p></content></level><level class="para1" eId="section-92-1-c"><num>(c)</num><content><p>the extent to which shares may be acquired under that provision is not determined using a cash value which is specified in that provision or which is or will be ascertainable by reference to the terms of that provision;</p></content></level><level class="para1" eId="section-92-1-d"><num>(d)</num><content><p>the asset is not a relevant discounted security within the meaning of Schedule 13 to this Act;</p></content></level><level class="para1" eId="section-92-1-e"><num>(e)</num><content><p>at the time when the asset came into existence there was a more than negligible likelihood that the right to acquire shares in a company would in due course be exercised to a significant extent; and</p></content></level><level class="para1" eId="section-92-1-f"><num>(f)</num><content><p>the asset is not one the disposal of which by the company would fall to be treated as a disposal in the course of activities forming an integral part of a trade carried on by the company.</p></content></level></subsection><subsection eId="section-92-2"><num>(2)</num><content><p>The amounts falling for any accounting period to be brought into account for the purposes of this Chapter in respect of a creditor relationship represented by an asset to which this section applies shall be confined to amounts relating to interest.</p></content></subsection><subsection eId="section-92-3"><num>(3)</num><content><p>Only an authorised accruals basis of accounting shall be used for ascertaining those amounts.</p></content></subsection><subsection eId="section-92-4"><num>(4)</num><content><p>Amounts shall be brought into account in computing the profits of the company for the purposes of corporation tax as if the <noteRef href="#m00058" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxation of Chargeable Gains Act 1992 had effect in relation to any asset to which this section applies as it has effect in relation to an asset that does not represent a loan relationship.</p></content></subsection><subsection eId="section-92-5"><num>(5)</num><intro><p>For the purposes of that Act the amount or value of the consideration for any disposal or acquisition of the asset shall be treated as adjusted so as to exclude so much of it as, on a just and reasonable apportionment, relates to any interest which—</p></intro><level class="para1" eId="section-92-5-a"><num>(a)</num><content><p>falls to be brought into account under subsections (2) and (3) above as accruing to any company at any time; and</p></content></level><level class="para1" eId="section-92-5-b"><num>(b)</num><content><p>in consequence of, or of the terms of, the disposal or acquisition, is not paid or payable to the company to which it is treated for the purposes of this Chapter as accruing.</p></content></level></subsection><subsection eId="section-92-6"><num>(6)</num><intro><p>In subsection (5) above the references to a disposal, in relation to an asset, are references to anything which—</p></intro><level class="para1" eId="section-92-6-a"><num>(a)</num><content><p>is a disposal of that asset (within the meaning of the Taxation of Chargeable Gains Act 1992); or</p></content></level><level class="para1" eId="section-92-6-b"><num>(b)</num><content><p>would be such a disposal but for section 127 or 116(10) of that Act (reorganisations etc.);</p></content></level><wrapUp><p>and the references to the acquisition of an asset shall be construed accordingly.</p></wrapUp></subsection></section><section eId="section-93"><num>93</num><heading>Relationships linked to the value of chargeable assets</heading><subsection eId="section-93-1"><num>(1)</num><content><p>This section applies in the case of any loan relationship of a company that is linked to the value of chargeable assets unless it is one the disposal of which by the company would fall to be treated as a disposal in the course of activities forming an integral part of a trade carried on by the company.</p></content></subsection><subsection eId="section-93-2"><num>(2)</num><content><p>The amounts falling for any accounting period to be brought into account for the purposes of this Chapter in respect of the relationship shall be confined to amounts relating to interest.</p></content></subsection><subsection eId="section-93-3"><num>(3)</num><content><p>Only an authorised accruals basis of accounting shall be used for ascertaining those amounts.</p></content></subsection><subsection eId="section-93-4"><num>(4)</num><content><p>Amounts shall be brought into account in computing the profits of the company for the purposes of corporation tax as if the <noteRef href="#m00059" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxation of Chargeable Gains Act 1992 had effect in relation to the asset representing the relationship as it has effect in relation to an asset that does not represent a loan relationship.</p></content></subsection><subsection eId="section-93-5"><num>(5)</num><intro><p>For the purposes of that Act the amount or value of the consideration for any disposal or acquisition of the asset shall be treated as adjusted so as to exclude so much of it as, on a just and reasonable apportionment, relates to any interest which—</p></intro><level class="para1" eId="section-93-5-a"><num>(a)</num><content><p>falls to be brought into account under subsections (2) and (3) above as accruing to any company at any time; and</p></content></level><level class="para1" eId="section-93-5-b"><num>(b)</num><content><p>in consequence of, or of the terms of, the disposal or acquisition, is not paid or payable to the company to which it is treated for the purposes of this Chapter as accruing.</p></content></level></subsection><subsection eId="section-93-6"><num>(6)</num><content><p>For the purposes of this section a loan relationship is linked to the value of chargeable assets if, in pursuance of any provision having effect for the purposes of that relationship, the amount that must be paid to discharge the money debt (whether on redemption of a security issued in relation to that debt or otherwise) is equal to the amount determined by applying a relevant percentage change in the value of chargeable assets to the amount falling for the purposes of this Chapter to be regarded as the amount of the original loan from which the money debt arises.</p></content></subsection><subsection eId="section-93-7"><num>(7)</num><content><p>In subsection (6) above the reference to a relevant percentage change in the value of chargeable assets is a reference to the amount of the percentage change (if any) over the relevant period in the value of chargeable assets of any particular description or in any index of the value of any such assets.</p></content></subsection><subsection eId="section-93-8"><num>(8)</num><intro><p>In subsection (7) above “the relevant period” means—</p></intro><level class="para1" eId="section-93-8-a"><num>(a)</num><content><p>the period between the time of the original loan and the discharge of the money debt; or</p></content></level><level class="para1" eId="section-93-8-b"><num>(b)</num><content><p>any other period in which almost all of that period is comprised and which differs from that period exclusively for purposes connected with giving effect to a valuation in relation to rights or liabilities under the loan relationship.</p></content></level></subsection><subsection eId="section-93-9"><num>(9)</num><intro><p>If—</p></intro><level class="para1" eId="section-93-9-a"><num>(a)</num><content><p>there is a provision which, in the case of any loan relationship, falls within subsection (6) above,</p></content></level><level class="para1" eId="section-93-9-b"><num>(b)</num><content><p>that provision is made subject to any other provision applying to the determination of the amount payable to discharge the money debt,</p></content></level><level class="para1" eId="section-93-9-c"><num>(c)</num><content><p>that other provision is to the effect only that the amount so payable must not be less than a specified percentage of the amount falling for the purposes of this Chapter to be regarded as the amount of the original loan, and</p></content></level><level class="para1" eId="section-93-9-d"><num>(d)</num><content><p>the specified percentage is not more than 10 per cent.,</p></content></level><wrapUp><p>that other provision shall be disregarded in determining for the purposes of this section whether the relationship is linked to the value of chargeable assets.</p></wrapUp></subsection><subsection eId="section-93-10"><num>(10)</num><content><p>For the purposes of this section an asset is a chargeable asset, in relation to a loan relationship of a company, if any gain accruing on the disposal of the asset by the company on or after 1st April 1996 would, on the assumptions specified in subsection (11) below, be a chargeable gain for the purposes of the <noteRef href="#m00060" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxation of Chargeable Gains Act 1992.</p></content></subsection><subsection eId="section-93-11"><num>(11)</num><intro><p>Those assumptions are—</p></intro><level class="para1" eId="section-93-11-a"><num>(a)</num><content><p>where it is not otherwise the case, that the asset is an asset of the company;</p></content></level><level class="para1" eId="section-93-11-b"><num>(b)</num><content><p>that the asset is not one the disposal of which by the company would fall to be treated for the purposes of corporation tax as a disposal in the course of a trade carried on by the company; and</p></content></level><level class="para1" eId="section-93-11-c"><num>(c)</num><content><p>that chargeable gains that might accrue under section 116(10) of that Act (postponed charges) are to be disregarded.</p></content></level></subsection><subsection eId="section-93-12"><num>(12)</num><intro><p>In subsection (5) above references to a disposal, in relation to an asset, are references to anything which—</p></intro><level class="para1" eId="section-93-12-a"><num>(a)</num><content><p>is a disposal of that asset (within the meaning of the Taxation of Chargeable Gains Act 1992); or</p></content></level><level class="para1" eId="section-93-12-b"><num>(b)</num><content><p>would be such a disposal but for section 127 or 116(10) of that Act (reorganisations etc.);</p></content></level><wrapUp><p>and the references to the acquisition of an asset shall be construed accordingly.</p></wrapUp></subsection><subsection eId="section-93-13"><num>(13)</num><intro><p>For the purposes of this section neither—</p></intro><level class="para1" eId="section-93-13-a"><num>(a)</num><content><p>the retail prices index, nor</p></content></level><level class="para1" eId="section-93-13-b"><num>(b)</num><content><p>any similar general index of prices published by the government of any territory or by the agent of any such government,</p></content></level><wrapUp><p>shall be taken to be an index of the value of chargeable assets.</p></wrapUp></subsection></section><section eId="section-94"><num>94</num><heading>Indexed gilt-edged securities</heading><subsection eId="section-94-1"><num>(1)</num><content><p>In the case of any loan relationship represented by an index-linked gilt-edged security, the adjustment for which this section provides shall be made in computing the credits and debits which fall, for any accounting period, to be brought into account for the purposes of this Chapter in respect of that relationship as non-trading credits or non-trading debits.</p></content></subsection><subsection eId="section-94-2"><num>(2)</num><intro><p>The adjustment shall be made wherever—</p></intro><level class="para1" eId="section-94-2-a"><num>(a)</num><content><p>the authorised accounting method applied as respects the index-linked gilt-edged security gives credits or debits by reference to the value of the security at two different times, and</p></content></level><level class="para1" eId="section-94-2-b"><num>(b)</num><content><p>there is any change in the retail prices index between those times.</p></content></level></subsection><subsection eId="section-94-3"><num>(3)</num><content><p>Subject to subsection (4) below, the adjustment is such an adjustment of the amount which would otherwise be taken for the purposes of that accounting method to be the value of the security at the earlier time (“the opening value”) as results in the amount in fact so taken being equal to the opening value increased or, as the case may be, reduced by the same percentage as the percentage increase or reduction in the retail prices index between the earlier and the later time.</p></content></subsection><subsection eId="section-94-4"><num>(4)</num><intro><p>The Treasury may, in relation to any description of index-linked gilt-edged securities, by order provide that—</p></intro><level class="para1" eId="section-94-4-a"><num>(a)</num><content><p>there are to be no adjustments under this section; or</p></content></level><level class="para1" eId="section-94-4-b"><num>(b)</num><content><p>that an adjustment specified in the order (instead of the adjustment specified in subsection (3) above) is to be the adjustment for which this section provides.</p></content></level></subsection><subsection eId="section-94-5"><num>(5)</num><intro><p>An order under subsection (4) above—</p></intro><level class="para1" eId="section-94-5-a"><num>(a)</num><content><p>shall not have effect in relation to any gilt-edged security issued before the making of the order; but</p></content></level><level class="para1" eId="section-94-5-b"><num>(b)</num><content><p>may make different provision for different descriptions of securities.</p></content></level></subsection><subsection eId="section-94-6"><num>(6)</num><intro><p>For the purposes of this section the percentage increase or reduction in the retail prices index between any two times shall be determined by reference to the difference between—</p></intro><level class="para1" eId="section-94-6-a"><num>(a)</num><content><p>that index for the month in which the earlier time falls; and</p></content></level><level class="para1" eId="section-94-6-b"><num>(b)</num><content><p>that index for the month in which the later time falls.</p></content></level></subsection><subsection eId="section-94-7"><num>(7)</num><content><p>In this section “index-linked gilt-edged securities” means any gilt-edged securities the amounts of the payments under which are determined wholly or partly by reference to the retail prices index.</p></content></subsection></section><section eId="section-95"><num>95</num><heading>Gilt strips</heading><subsection eId="section-95-1"><num>(1)</num><content><p>This section has effect for the purposes of the application of an authorised accruals basis of accounting as respects a loan relationship represented by a gilt-edged security or a strip of a gilt-edged security.</p></content></subsection><subsection eId="section-95-2"><num>(2)</num><intro><p>Where a gilt-edged security is exchanged by any person for strips of that security—</p></intro><level class="para1" eId="section-95-2-a"><num>(a)</num><content><p>the security shall be deemed to have been redeemed at the time of the exchange by the payment to that person of its market value; and</p></content></level><level class="para1" eId="section-95-2-b"><num>(b)</num><content><p>that person shall be deemed to have acquired each strip for the amount which bears the same proportion to that market value as is borne by the market value of the strip to the aggregate of the market values of all the strips received in exchange for the security.</p></content></level></subsection><subsection eId="section-95-3"><num>(3)</num><intro><p>Where strips of a gilt-edged security are consolidated into a single gilt-edged security by being exchanged by any person for that security—</p></intro><level class="para1" eId="section-95-3-a"><num>(a)</num><content><p>each of the strips shall be deemed to have been redeemed at the time of the exchange by the payment to that person of the amount equal to its market value; and</p></content></level><level class="para1" eId="section-95-3-b"><num>(b)</num><content><p>that person shall be deemed to have acquired the security received in the exchange for the amount equal to the aggregate of the market values of the strips given in exchange for the security.</p></content></level></subsection><subsection eId="section-95-4"><num>(4)</num><content><p>References in this section to the market value of a security given or received in exchange for another are references to its market value at the time of the exchange.</p></content></subsection><subsection eId="section-95-5"><num>(5)</num><content><p>Without prejudice to the generality of any power conferred by section 202 below, the Treasury may by regulations make provision for the purposes of this section as to the manner of determining the market value at any time of any gilt-edged security (including any strip).</p></content></subsection><subsection eId="section-95-6"><num>(6)</num><intro><p>Regulations under subsection (5) above may—</p></intro><level class="para1" eId="section-95-6-a"><num>(a)</num><content><p>make different provision for different cases; and</p></content></level><level class="para1" eId="section-95-6-b"><num>(b)</num><content><p>contain such incidental, supplemental, consequential and transitional provision as the Treasury may think fit.</p></content></level></subsection><subsection eId="section-95-7"><num>(7)</num><content><p>In this section “strip” means anything which, within the meaning of section 47 of the <noteRef href="#m00061" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1942, is a strip of a gilt-edged security.</p></content></subsection></section><section eId="section-96"><num>96</num><heading>Special rules for certain other gilts</heading><subsection eId="section-96-1"><num>(1)</num><intro><p>This section applies as respects any loan relationship of a company if—</p></intro><level class="para1" eId="section-96-1-a"><num>(a)</num><intro><p>it is represented by a security of any of the following descriptions—</p></intro><level class="para2" eId="section-96-1-a-i"><num>(i)</num><content><p>3½% Funding Stock 1999-2004; or</p></content></level><level class="para2" eId="section-96-1-a-ii"><num>(ii)</num><content><p>5½% Treasury Stock 2008-2012;</p></content></level><wrapUp><p>and</p></wrapUp></level><level class="para1" eId="section-96-1-b"><num>(b)</num><content><p>it is one to which the company is a party otherwise than in the course of activities that form an integral part of a trade carried on by the company.</p></content></level></subsection><subsection eId="section-96-2"><num>(2)</num><content><p>The amounts falling for any accounting period to be brought into account for the purposes of this Chapter in respect of a loan relationship to which this section applies shall be confined to amounts relating to interest.</p></content></subsection><subsection eId="section-96-3"><num>(3)</num><content><p>Only an authorised accruals basis of accounting shall be used for ascertaining those amounts.</p></content></subsection></section><section eId="section-97"><num>97</num><heading>Manufactured interest</heading><subsection eId="section-97-1"><num>(1)</num><intro><p>This section applies where—</p></intro><level class="para1" eId="section-97-1-a"><num>(a)</num><content><p>any amount (“manufactured interest”) is payable by or on behalf of, or to, any company under any contract or arrangements relating to the transfer of an asset representing a loan relationship; and</p></content></level><level class="para1" eId="section-97-1-b"><num>(b)</num><content><p>that amount is, or (when paid) will fall to be treated as, representative of interest under that relationship (“the real interest”).</p></content></level></subsection><subsection eId="section-97-2"><num>(2)</num><intro><p>In relation to that company the manufactured interest shall be treated for the purposes of this Chapter—</p></intro><level class="para1" eId="section-97-2-a"><num>(a)</num><content><p>as if it were interest under a loan relationship to which the company is a party; and</p></content></level><level class="para1" eId="section-97-2-b"><num>(b)</num><content><p>where that company is the company to which the manufactured interest is payable, as if that relationship were the one under which the real interest is payable.</p></content></level></subsection><subsection eId="section-97-3"><num>(3)</num><intro><p>Any question whether debits or credits falling to be brought into account in the case of any company by virtue of this section—</p></intro><level class="para1" eId="section-97-3-a"><num>(a)</num><content><p>are to be brought into account under section 82(2) above, or</p></content></level><level class="para1" eId="section-97-3-b"><num>(b)</num><content><p>are to be treated as non-trading debits or non-trading credits,</p></content></level><wrapUp><p>shall be determined according to the extent (if any) to which the manufactured interest is paid for the purposes of a trade carried on by the company or is received in the course of activities forming an integral part of such a trade.</p></wrapUp></subsection><subsection eId="section-97-4"><num>(4)</num><content><p>Where section 737A(5) of the Taxes Act 1988 (deemed manufactured payments) has effect in relation to a transaction relating to an asset representing a loan relationship so as, for the purposes of section 737 of, or Schedule 23A to, that Act, to deem there to have been a payment representative of interest under that relationship, this section shall apply as it would have applied if such a representative payment had in fact been made.</p></content></subsection><subsection eId="section-97-5"><num>(5)</num><content><p>This section does not apply where the manufactured interest is treated by virtue of paragraph 5(2)(c) or (4)(c) of Schedule 23A to the Taxes Act 1988 (manufactured interest passing through the market) as not being income of the person who receives it.</p></content></subsection></section><section eId="section-98"><num>98</num><heading>Collective investment schemes</heading><content><p>The provisions of this Chapter have effect subject to the provisions of Schedule 10 to this Act (which makes special provision in relation to certain collective investment schemes).</p></content></section><section eId="section-99"><num>99</num><heading>Insurance companies</heading><content><p>The preceding provisions of this Chapter have effect subject to Schedule 11 to this Act (which makes special provision in relation to certain insurance companies and in relation to corporate members of Lloyd's).</p></content></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-IV-chapter-II-crossheading-miscellaneous-other-provisions"><heading>Miscellaneous other provisions</heading><section eId="section-100"><num>100</num><heading>Interest on judgments, imputed interest, etc</heading><subsection eId="section-100-1"><num>(1)</num><intro><p>This Chapter shall have effect in accordance with subsection (2) below where—</p></intro><level class="para1" eId="section-100-1-a"><num>(a)</num><content><p>interest on a money debt is payable to or by any company;</p></content></level><level class="para1" eId="section-100-1-b"><num>(b)</num><content><p>that debt is one as respects which it stands, or has stood, in the position of a creditor or debtor; and</p></content></level><level class="para1" eId="section-100-1-c"><num>(c)</num><content><p>that debt did not arise from a loan relationship.</p></content></level></subsection><subsection eId="section-100-2"><num>(2)</num><intro><p>It shall be assumed for the purposes of this Chapter—</p></intro><level class="para1" eId="section-100-2-a"><num>(a)</num><content><p>that the interest is interest payable under a loan relationship to which the company is a party; but</p></content></level><level class="para1" eId="section-100-2-b"><num>(b)</num><content><p>that the only credits or debits to be brought into account for those purposes in respect of that relationship are those relating to the interest.</p></content></level></subsection><subsection eId="section-100-3"><num>(3)</num><intro><p>References in this section to interest payable on a money debt include references to any amount which, in pursuance of sections 770 to 772 of the Taxes Act 1988 (transactions at an undervalue or overvalue), as those sections have effect by virtue of section 773(4) of that Act, falls to be treated in pursuance of those sections as—</p></intro><level class="para1" eId="section-100-3-a"><num>(a)</num><content><p>interest on a money debt; or</p></content></level><level class="para1" eId="section-100-3-b"><num>(b)</num><content><p>interest on an amount which is treated as a money debt.</p></content></level></subsection><subsection eId="section-100-4"><num>(4)</num><intro><p>Any question whether debits or credits falling to be brought into account in accordance with this section in relation to any company—</p></intro><level class="para1" eId="section-100-4-a"><num>(a)</num><content><p>are to be brought into account under section 82(2) above, or</p></content></level><level class="para1" eId="section-100-4-b"><num>(b)</num><content><p>are to be treated as non-trading debits or non-trading credits,</p></content></level><wrapUp><p>shall be determined according to the extent (if any) to which the interest in question is paid for the purposes of a trade carried on by the company or is received in the course of activities forming an integral part of such a trade, or (in the case of deemed interest) would be deemed to be so paid or received.</p></wrapUp></subsection><subsection eId="section-100-5"><num>(5)</num><content><p>This section has effect subject to the provisions of Schedules 9 and 11 to this Act.</p></content></subsection></section><section eId="section-101"><num>101</num><heading>Financial instruments</heading><subsection eId="section-101-1"><num>(1)</num><intro><p>Chapter II of Part IV of the <noteRef href="#m00062" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1994 (provisions relating to certain financial instruments) shall not apply to any profit or loss which, in accordance with that Chapter, accrues to a company for any accounting period on a qualifying contract by virtue of which the company is a party to any loan relationship if—</p></intro><level class="para1" eId="section-101-1-a"><num>(a)</num><content><p>an amount representing that profit or loss, or</p></content></level><level class="para1" eId="section-101-1-b"><num>(b)</num><content><p>an amount representing the profit or loss accruing to that company on that contract,</p></content></level><wrapUp><p>is brought into account for that period for the purposes of this Chapter.</p></wrapUp></subsection><subsection eId="section-101-2"><num>(2)</num><content><p><mod>After section 147 of that Act (qualifying contracts) there shall be inserted the following section—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>147A</num><heading>Debt contracts and options to be qualifying contracts</heading><subsection><num>(1)</num><content><p>For the purposes of this Chapter a debt contract or option is a qualifying contract as regards a qualifying company if the company becomes entitled to rights, or subject to duties, under the contract or option at any time on or after 1st April 1996.</p></content></subsection><subsection><num>(2)</num><content><p>For the purposes of this Chapter a qualifying company which is entitled to rights, or subject to duties, under a debt contract or option both immediately before and on 1st April 1996 shall be deemed to have become entitled or subject to those rights or duties on that date.</p></content></subsection><subsection><num>(3)</num><content><p>This section has effect subject to paragraph 25 of Schedule 15 to the Finance Act 1996 (transitional provisions).</p></content></subsection></section></quotedStructure></mod></p></content></subsection><subsection eId="section-101-3"><num>(3)</num><content><p>After section 150 of that Act (qualifying contracts) there shall be inserted the section set out in Schedule 12 to this Act (which defines debt contracts and options by reference to contracts and options conferring rights and duties to participate in loan relationships).</p></content></subsection><subsection eId="section-101-4"><num>(4)</num><content><p>In section 151 of that Act (provisions that may be included in contracts and options), for the words “or a currency contract or option,”, in each place where they occur, there shall be substituted “a currency contract or option or a debt contract or option”.</p></content></subsection><subsection eId="section-101-5"><num>(5)</num><content><p>In section 152(1) of that Act (disregard of provisions for relatively small payments in contracts and options), after “150” there shall be inserted “or 150A”.</p></content></subsection><subsection eId="section-101-6"><num>(6)</num><content><p><mod>In section 153(1) of that Act (qualifying payments), for the word “and” at the end of paragraph (c) there shall be substituted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(ca)</num><content><p>in relation to a qualifying contract which is a debt contract, a payment falling within section 150A(5) or (6) above; and</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection></section><section eId="section-102"><num>102</num><heading>Discounted securities: income tax provisions</heading><content><p>Schedule 13 to this Act (which, in connection with the provisions of this Chapter relating to corporation tax, makes provision for income tax purposes about discounted securities) shall have effect.</p></content></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-IV-chapter-II-crossheading-supplemental"><heading>Supplemental</heading><section eId="section-103"><num>103</num><heading>Interpretation of Chapter</heading><subsection eId="section-103-1"><num>(1)</num><intro><p>In this Chapter—</p></intro><hcontainer name="definition"><content><p>“authorised accounting method”, “authorised accruals basis of accounting” and “authorised mark to market basis of accounting” shall be construed in accordance with section 85 above;</p></content></hcontainer><hcontainer name="definition"><content><p>“creditor relationship”, in relation to a company, means any loan relationship of that company in the case of which it stands in the position of a creditor as respects the debt in question;</p></content></hcontainer><hcontainer name="definition"><content><p>“debt” includes a debt the amount of which falls to be ascertained by reference to matters which vary from time to time;</p></content></hcontainer><hcontainer name="definition"><content><p>“debtor relationship”, in relation to a company, means any loan relationship of that company in the case of which it stands in the position of a debtor as respects the debt in question;</p></content></hcontainer><hcontainer name="definition"><intro><p>“gilt-edged securities” means any securities which—</p></intro><level class="para1"><num>(a)</num><content><p>are gilt-edged securities for the purposes of the <noteRef href="#m00063" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxation of Chargeable Gains Act 1992; or</p></content></level><level class="para1"><num>(b)</num><content><p>will be such securities on the making of any order under paragraph 1 of Schedule 9 to that Act the making of which is anticipated in the prospectus under which they are issued;</p></content></level></hcontainer><hcontainer name="definition"><content><p>“an independent person” means a knowledgeable and willing party dealing at arm’s length;</p></content></hcontainer><hcontainer name="definition"><content><p>“international organisation” means an organisation of which two or more sovereign powers, or the governments of two or more sovereign powers, are members;</p></content></hcontainer><hcontainer name="definition"><content><p>“loan” includes any advance of money, and cognate expressions shall be construed accordingly;</p></content></hcontainer><hcontainer name="definition"><content><p>“money” shall be construed in accordance with section 81(6) above and subsection (5) below;</p></content></hcontainer><hcontainer name="definition"><content><p>“money debt” shall be construed in accordance with section 81(2) above;</p></content></hcontainer><hcontainer name="definition"><content><p>“non-trading credit” and “non-trading debit” shall be construed in accordance with section 82(3) above;</p></content></hcontainer><hcontainer name="definition"><content><p>“retail prices index” has the same meaning as it has, by virtue of section 833(2) of the Taxes Act 1988, in the Income Tax Acts;</p></content></hcontainer><hcontainer name="definition"><content><p>“share”, in relation to a company, means any share in the company under which an entitlement to receive distributions may arise.</p></content></hcontainer></subsection><subsection eId="section-103-2"><num>(2)</num><content><p>For the purposes of this Chapter a company shall be taken to be a party to a creditor relationship for the purposes of a trade carried on by that company only if it is a party to that relationship in the course of activities forming an integral part of that trade.</p></content></subsection><subsection eId="section-103-3"><num>(3)</num><intro><p>For the purposes of this Chapter, and of so much of any other enactment as contains provision by reference to which amounts fall to be brought into account for the purposes of this Chapter, activities carried on by a company in the course of—</p></intro><level class="para1" eId="section-103-3-a"><num>(a)</num><content><p>any mutual trading, or</p></content></level><level class="para1" eId="section-103-3-b"><num>(b)</num><content><p>any mutual insurance or other mutual business which is not life assurance business (within the meaning of Chapter I of Part XII of the Taxes Act 1988),</p></content></level><wrapUp><p>shall be deemed not to constitute the whole or any part of a trade.</p></wrapUp></subsection><subsection eId="section-103-4"><num>(4)</num><content><p>If, in any proceedings, any question arises whether a person is an international organisation for the purposes of any provision of this Chapter, a certificate issued by or under the authority of the Secretary of State stating any fact relevant to that question shall be conclusive evidence of that fact.</p></content></subsection><subsection eId="section-103-5"><num>(5)</num><content><p>For the purposes of this Chapter the European currency unit (as for the time being defined in Council Regulation No. 3180/78/EEC or in any Community instrument replacing it) shall be taken to be a currency other than sterling.</p></content></subsection></section><section eId="section-104"><num>104</num><heading>Minor and consequential amendments</heading><content><p>Schedule 14 to this Act (which, for the purposes of both corporation tax and income tax, makes certain minor and consequential amendments in connection with the provisions of this Chapter) shall have effect.</p></content></section><section eId="section-105"><num>105</num><heading>Commencement and transitional provisions</heading><subsection eId="section-105-1"><num>(1)</num><intro><p>Subject to Schedule 15 to this Act, this Chapter has effect—</p></intro><level class="para1" eId="section-105-1-a"><num>(a)</num><content><p>for the purposes of corporation tax, in relation to accounting periods ending after 31st March 1996; and</p></content></level><level class="para1" eId="section-105-1-b"><num>(b)</num><content><p>so far as it makes provision for the purposes of income tax, in relation to the year 1996-97 and subsequent years of assessment.</p></content></level></subsection><subsection eId="section-105-2"><num>(2)</num><content><p>Schedule 15 to this Act (which contains transitional provisions and savings in connection with the coming into force of this Chapter) shall have effect.</p></content></subsection></section></hcontainer></chapter>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="part-IV-chapter-II-crossheading-introductory-provisions"><heading>Introductory provisions</heading><section eId="section-80"><num>80</num><heading>Taxation of loan relationships</heading><subsection eId="section-80-1"><num>(1)</num><content><p>For the purposes of corporation tax all profits and gains arising to a company from its loan relationships shall be chargeable to tax as income in accordance with this Chapter.</p></content></subsection><subsection eId="section-80-2"><num>(2)</num><content><p>To the extent that a company is a party to a loan relationship for the purposes of a trade carried on by the company, profits and gains arising from the relationship shall be brought into account in computing the profits and gains of the trade.</p></content></subsection><subsection eId="section-80-3"><num>(3)</num><content><p>Profits and gains arising from a loan relationship of a company that are not brought into account under subsection (2) above shall be brought into account as profits and gains chargeable to tax under Case III of Schedule D.</p></content></subsection><subsection eId="section-80-4"><num>(4)</num><content><p>This Chapter shall also have effect for the purposes of corporation tax for determining how any deficit on a company’s loan relationships is to be brought into account in any case, including a case where none of the company’s loan relationships falls by virtue of this Chapter to be regarded as a source of income.</p></content></subsection><subsection eId="section-80-5"><num>(5)</num><content><p>Subject to any express provision to the contrary, the amounts which in the case of any company are brought into account in accordance with this Chapter as respects any matter shall be the only amounts brought into account for the purposes of corporation tax as respects that matter.</p></content></subsection></section><section eId="section-81"><num>81</num><heading>Meaning of “loan relationship” etc</heading><subsection eId="section-81-1"><num>(1)</num><intro><p>Subject to the following provisions of this section, a company has a loan relationship for the purposes of the Corporation Tax Acts wherever—</p></intro><level class="para1" eId="section-81-1-a"><num>(a)</num><content><p>the company stands (whether by reference to a security or otherwise) in the position of a creditor or debtor as respects any money debt; and</p></content></level><level class="para1" eId="section-81-1-b"><num>(b)</num><content><p>that debt is one arising from a transaction for the lending of money;</p></content></level><wrapUp><p>and references to a loan relationship and to a company’s being a party to a loan relationship shall be construed accordingly.</p></wrapUp></subsection><subsection eId="section-81-2"><num>(2)</num><intro><p>For the purposes of this Chapter a money debt is a debt which falls to be settled—</p></intro><level class="para1" eId="section-81-2-a"><num>(a)</num><content><p>by the payment of money; or</p></content></level><level class="para1" eId="section-81-2-b"><num>(b)</num><content><p>by the transfer of a right to settlement under a debt which is itself a money debt.</p></content></level></subsection><subsection eId="section-81-3"><num>(3)</num><content><p>Subject to subsection (4) below, where an instrument is issued by any person for the purpose of representing security for, or the rights of a creditor in respect of, any money debt, then (whatever the circumstances of the issue of the instrument) that debt shall be taken for the purposes of this Chapter to be a debt arising from a transaction for the lending of money.</p></content></subsection><subsection eId="section-81-4"><num>(4)</num><content><p>For the purposes of this Chapter a debt shall not be taken to arise from a transaction for the lending of money to the extent that it is a debt arising from rights conferred by shares in a company.</p></content></subsection><subsection eId="section-81-5"><num>(5)</num><intro><p>For the purposes of this Chapter—</p></intro><level class="para1" eId="section-81-5-a"><num>(a)</num><content><p>references to payments or interest under a loan relationship are references to payments or interest made or payable in pursuance of any of the rights or liabilities under that relationship; and</p></content></level><level class="para1" eId="section-81-5-b"><num>(b)</num><content><p>references to rights or liabilities under a loan relationship are references to any of the rights or liabilities under the agreement or arrangements by virtue of which that relationship subsists;</p></content></level><wrapUp><p>and those rights or liabilities shall be taken to include the rights or liabilities attached to any security which, being a security issued in relation to the money debt in question, is a security representing that relationship.</p></wrapUp></subsection><subsection eId="section-81-6"><num>(6)</num><content><p>In this Chapter “money” includes money expressed in a currency other than sterling.</p></content></subsection></section></hcontainer>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-80"><num>80</num><heading>Taxation of loan relationships</heading><subsection eId="section-80-1"><num>(1)</num><content><p>For the purposes of corporation tax all profits and gains arising to a company from its loan relationships shall be chargeable to tax as income in accordance with this Chapter.</p></content></subsection><subsection eId="section-80-2"><num>(2)</num><content><p>To the extent that a company is a party to a loan relationship for the purposes of a trade carried on by the company, profits and gains arising from the relationship shall be brought into account in computing the profits and gains of the trade.</p></content></subsection><subsection eId="section-80-3"><num>(3)</num><content><p>Profits and gains arising from a loan relationship of a company that are not brought into account under subsection (2) above shall be brought into account as profits and gains chargeable to tax under Case III of Schedule D.</p></content></subsection><subsection eId="section-80-4"><num>(4)</num><content><p>This Chapter shall also have effect for the purposes of corporation tax for determining how any deficit on a company’s loan relationships is to be brought into account in any case, including a case where none of the company’s loan relationships falls by virtue of this Chapter to be regarded as a source of income.</p></content></subsection><subsection eId="section-80-5"><num>(5)</num><content><p>Subject to any express provision to the contrary, the amounts which in the case of any company are brought into account in accordance with this Chapter as respects any matter shall be the only amounts brought into account for the purposes of corporation tax as respects that matter.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-80-1"><num>(1)</num><content><p>For the purposes of corporation tax all profits and gains arising to a company from its loan relationships shall be chargeable to tax as income in accordance with this Chapter.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-80-2"><num>(2)</num><content><p>To the extent that a company is a party to a loan relationship for the purposes of a trade carried on by the company, profits and gains arising from the relationship shall be brought into account in computing the profits and gains of the trade.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-80-3"><num>(3)</num><content><p>Profits and gains arising from a loan relationship of a company that are not brought into account under subsection (2) above shall be brought into account as profits and gains chargeable to tax under Case III of Schedule D.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-80-4"><num>(4)</num><content><p>This Chapter shall also have effect for the purposes of corporation tax for determining how any deficit on a company’s loan relationships is to be brought into account in any case, including a case where none of the company’s loan relationships falls by virtue of this Chapter to be regarded as a source of income.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-80-5"><num>(5)</num><content><p>Subject to any express provision to the contrary, the amounts which in the case of any company are brought into account in accordance with this Chapter as respects any matter shall be the only amounts brought into account for the purposes of corporation tax as respects that matter.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-81"><num>81</num><heading>Meaning of “loan relationship” etc</heading><subsection eId="section-81-1"><num>(1)</num><intro><p>Subject to the following provisions of this section, a company has a loan relationship for the purposes of the Corporation Tax Acts wherever—</p></intro><level class="para1" eId="section-81-1-a"><num>(a)</num><content><p>the company stands (whether by reference to a security or otherwise) in the position of a creditor or debtor as respects any money debt; and</p></content></level><level class="para1" eId="section-81-1-b"><num>(b)</num><content><p>that debt is one arising from a transaction for the lending of money;</p></content></level><wrapUp><p>and references to a loan relationship and to a company’s being a party to a loan relationship shall be construed accordingly.</p></wrapUp></subsection><subsection eId="section-81-2"><num>(2)</num><intro><p>For the purposes of this Chapter a money debt is a debt which falls to be settled—</p></intro><level class="para1" eId="section-81-2-a"><num>(a)</num><content><p>by the payment of money; or</p></content></level><level class="para1" eId="section-81-2-b"><num>(b)</num><content><p>by the transfer of a right to settlement under a debt which is itself a money debt.</p></content></level></subsection><subsection eId="section-81-3"><num>(3)</num><content><p>Subject to subsection (4) below, where an instrument is issued by any person for the purpose of representing security for, or the rights of a creditor in respect of, any money debt, then (whatever the circumstances of the issue of the instrument) that debt shall be taken for the purposes of this Chapter to be a debt arising from a transaction for the lending of money.</p></content></subsection><subsection eId="section-81-4"><num>(4)</num><content><p>For the purposes of this Chapter a debt shall not be taken to arise from a transaction for the lending of money to the extent that it is a debt arising from rights conferred by shares in a company.</p></content></subsection><subsection eId="section-81-5"><num>(5)</num><intro><p>For the purposes of this Chapter—</p></intro><level class="para1" eId="section-81-5-a"><num>(a)</num><content><p>references to payments or interest under a loan relationship are references to payments or interest made or payable in pursuance of any of the rights or liabilities under that relationship; and</p></content></level><level class="para1" eId="section-81-5-b"><num>(b)</num><content><p>references to rights or liabilities under a loan relationship are references to any of the rights or liabilities under the agreement or arrangements by virtue of which that relationship subsists;</p></content></level><wrapUp><p>and those rights or liabilities shall be taken to include the rights or liabilities attached to any security which, being a security issued in relation to the money debt in question, is a security representing that relationship.</p></wrapUp></subsection><subsection eId="section-81-6"><num>(6)</num><content><p>In this Chapter “money” includes money expressed in a currency other than sterling.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-81-1"><num>(1)</num><intro><p>Subject to the following provisions of this section, a company has a loan relationship for the purposes of the Corporation Tax Acts wherever—</p></intro><level class="para1" eId="section-81-1-a"><num>(a)</num><content><p>the company stands (whether by reference to a security or otherwise) in the position of a creditor or debtor as respects any money debt; and</p></content></level><level class="para1" eId="section-81-1-b"><num>(b)</num><content><p>that debt is one arising from a transaction for the lending of money;</p></content></level><wrapUp><p>and references to a loan relationship and to a company’s being a party to a loan relationship shall be construed accordingly.</p></wrapUp></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-81-1-a"><num>(a)</num><content><p>the company stands (whether by reference to a security or otherwise) in the position of a creditor or debtor as respects any money debt; and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-81-1-b"><num>(b)</num><content><p>that debt is one arising from a transaction for the lending of money;</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-81-2"><num>(2)</num><intro><p>For the purposes of this Chapter a money debt is a debt which falls to be settled—</p></intro><level class="para1" eId="section-81-2-a"><num>(a)</num><content><p>by the payment of money; or</p></content></level><level class="para1" eId="section-81-2-b"><num>(b)</num><content><p>by the transfer of a right to settlement under a debt which is itself a money debt.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-81-2-a"><num>(a)</num><content><p>by the payment of money; or</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-81-2-b"><num>(b)</num><content><p>by the transfer of a right to settlement under a debt which is itself a money debt.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-81-3"><num>(3)</num><content><p>Subject to subsection (4) below, where an instrument is issued by any person for the purpose of representing security for, or the rights of a creditor in respect of, any money debt, then (whatever the circumstances of the issue of the instrument) that debt shall be taken for the purposes of this Chapter to be a debt arising from a transaction for the lending of money.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-81-4"><num>(4)</num><content><p>For the purposes of this Chapter a debt shall not be taken to arise from a transaction for the lending of money to the extent that it is a debt arising from rights conferred by shares in a company.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-81-5"><num>(5)</num><intro><p>For the purposes of this Chapter—</p></intro><level class="para1" eId="section-81-5-a"><num>(a)</num><content><p>references to payments or interest under a loan relationship are references to payments or interest made or payable in pursuance of any of the rights or liabilities under that relationship; and</p></content></level><level class="para1" eId="section-81-5-b"><num>(b)</num><content><p>references to rights or liabilities under a loan relationship are references to any of the rights or liabilities under the agreement or arrangements by virtue of which that relationship subsists;</p></content></level><wrapUp><p>and those rights or liabilities shall be taken to include the rights or liabilities attached to any security which, being a security issued in relation to the money debt in question, is a security representing that relationship.</p></wrapUp></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-81-5-a"><num>(a)</num><content><p>references to payments or interest under a loan relationship are references to payments or interest made or payable in pursuance of any of the rights or liabilities under that relationship; and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-81-5-b"><num>(b)</num><content><p>references to rights or liabilities under a loan relationship are references to any of the rights or liabilities under the agreement or arrangements by virtue of which that relationship subsists;</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-81-6"><num>(6)</num><content><p>In this Chapter “money” includes money expressed in a currency other than sterling.</p></content></subsection>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="part-IV-chapter-II-crossheading-taxation-of-profits-and-gains-and-relief-for-deficits"><heading>Taxation of profits and gains and relief for deficits</heading><section eId="section-82"><num>82</num><heading>Method of bringing amounts into account</heading><subsection eId="section-82-1"><num>(1)</num><intro><p>For the purposes of corporation tax—</p></intro><level class="para1" eId="section-82-1-a"><num>(a)</num><content><p>the profits and gains arising from the loan relationships of a company, and</p></content></level><level class="para1" eId="section-82-1-b"><num>(b)</num><content><p>any deficit on a company’s loan relationships,</p></content></level><wrapUp><p>shall be computed in accordance with this section using the credits and debits given for the accounting period in question by the following provisions of this Chapter.</p></wrapUp></subsection><subsection eId="section-82-2"><num>(2)</num><intro><p>To the extent that, in any accounting period, a loan relationship of a company is one to which it is a party for the purposes of a trade carried on by it, the credits and debits given in respect of that relationship for that period shall be treated (according to whether they are credits or debits) either—</p></intro><level class="para1" eId="section-82-2-a"><num>(a)</num><content><p>as receipts of that trade falling to be brought into account in computing the profits and gains of that trade for that period; or</p></content></level><level class="para1" eId="section-82-2-b"><num>(b)</num><content><p>as expenses of that trade which are deductible in computing those profits and gains.</p></content></level></subsection><subsection eId="section-82-3"><num>(3)</num><intro><p>Where for any accounting period there are, in respect of the loan relationships of a company, both—</p></intro><level class="para1" eId="section-82-3-a"><num>(a)</num><content><p>credits that are not brought into account under subsection (2) above (“non-trading credits”), and</p></content></level><level class="para1" eId="section-82-3-b"><num>(b)</num><content><p>debits that are not so brought into account (“non-trading debits”),</p></content></level><wrapUp><p>the aggregate of the non-trading debits shall be subtracted from the aggregate of the non-trading credits to give the amount to be brought into account under subsection (4) below.</p></wrapUp></subsection><subsection eId="section-82-4"><num>(4)</num><intro><p>That amount is the amount which for any accounting period is to be taken (according to whether the aggregate of the non-trading credits or the aggregate of the non-trading debits is the greater) to be either—</p></intro><level class="para1" eId="section-82-4-a"><num>(a)</num><content><p>the amount of the company’s profits and gains for that period that are chargeable under Case III of Schedule D as profits and gains arising from the company’s loan relationships; or</p></content></level><level class="para1" eId="section-82-4-b"><num>(b)</num><content><p>the amount of the company’s non-trading deficit for that period on its loan relationships.</p></content></level></subsection><subsection eId="section-82-5"><num>(5)</num><content><p>Where for any accounting period a company has non-trading credits but no non-trading debits in respect of its loan relationships, the aggregate amount of the credits shall be the amount of the company’s profits and gains for that period that are chargeable under Case III of Schedule D as profits and gains arising from those relationships.</p></content></subsection><subsection eId="section-82-6"><num>(6)</num><content><p>Where for any accounting period a company has non-trading debits but no non-trading credits in respect of its loan relationships, that company shall have a non-trading deficit on its loan relationships for that period equal to the aggregate of the debits.</p></content></subsection><subsection eId="section-82-7"><num>(7)</num><content><p>Subsection (2) above, so far as it provides for any amount to be deductible as mentioned in paragraph (b) of that subsection, shall have effect notwithstanding anything in section 74 of the Taxes Act 1988 (allowable deductions).</p></content></subsection></section><section eId="section-83"><num>83</num><heading>Non-trading deficit on loan relationships</heading><subsection eId="section-83-1"><num>(1)</num><content><p>This section applies for the purposes of corporation tax where for any accounting period (“the deficit period”) there is a non-trading deficit on a company’s loan relationships.</p></content></subsection><subsection eId="section-83-2"><num>(2)</num><intro><p>The company may make a claim for the whole or any part of the deficit to be treated in any of the following ways, that is to say—</p></intro><level class="para1" eId="section-83-2-a"><num>(a)</num><content><p>to be set off against any profits of the company (of whatever description) for the deficit period;</p></content></level><level class="para1" eId="section-83-2-b"><num>(b)</num><content><p>to be treated as eligible for group relief;</p></content></level><level class="para1" eId="section-83-2-c"><num>(c)</num><content><p>to be carried back to be set off against profits for earlier accounting periods; or</p></content></level><level class="para1" eId="section-83-2-d"><num>(d)</num><content><p>to be carried forward and set against non-trading profits for the next accounting period.</p></content></level></subsection><subsection eId="section-83-3"><num>(3)</num><content><p>So much of the deficit for the deficit period as is not the subject of a claim under subsection (2) above shall be carried forward so as to be brought into account for the purposes of this Chapter as a non-trading debit (“a carried-forward debit”) for the accounting period immediately following the deficit period.</p></content></subsection><subsection eId="section-83-4"><num>(4)</num><content><p>No claim shall be made under subsection (2)(a) to (c) above in respect of so much (if any) of the non-trading deficit of a company for any accounting period as is equal to the amount by which that deficit is greater than it would have been if any carried-forward debit for that period had been disregarded.</p></content></subsection><subsection eId="section-83-5"><num>(5)</num><content><p>No part of any non-trading deficit of a company established for charitable purposes only shall be set off against the profits of that or any other company in pursuance of a claim under subsection (2) above.</p></content></subsection><subsection eId="section-83-6"><num>(6)</num><content><p>A claim under subsection (2) above must be made within the period of two years immediately following the end of the relevant period, or within such further period as the Board may allow.</p></content></subsection><subsection eId="section-83-7"><num>(7)</num><intro><p>In subsection (6) above “the relevant period”—</p></intro><level class="para1" eId="section-83-7-a"><num>(a)</num><content><p>in relation to a claim under subsection (2)(a), (b) or (c) above, means the deficit period; and</p></content></level><level class="para1" eId="section-83-7-b"><num>(b)</num><content><p>in relation to a claim under subsection (2)(d) above, means the accounting period immediately following the deficit period.</p></content></level></subsection><subsection eId="section-83-8"><num>(8)</num><content><p>Different claims may be made under subsection (2) above as respects different parts of a non-trading deficit for any period, but no claim may be made as respects any part of a deficit to which another claim made under that subsection relates.</p></content></subsection><subsection eId="section-83-9"><num>(9)</num><content><p>Schedule 8 to this Act (which makes provision about what happens where a claim is made under subsection (2) above) shall have effect.</p></content></subsection></section></hcontainer>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-82"><num>82</num><heading>Method of bringing amounts into account</heading><subsection eId="section-82-1"><num>(1)</num><intro><p>For the purposes of corporation tax—</p></intro><level class="para1" eId="section-82-1-a"><num>(a)</num><content><p>the profits and gains arising from the loan relationships of a company, and</p></content></level><level class="para1" eId="section-82-1-b"><num>(b)</num><content><p>any deficit on a company’s loan relationships,</p></content></level><wrapUp><p>shall be computed in accordance with this section using the credits and debits given for the accounting period in question by the following provisions of this Chapter.</p></wrapUp></subsection><subsection eId="section-82-2"><num>(2)</num><intro><p>To the extent that, in any accounting period, a loan relationship of a company is one to which it is a party for the purposes of a trade carried on by it, the credits and debits given in respect of that relationship for that period shall be treated (according to whether they are credits or debits) either—</p></intro><level class="para1" eId="section-82-2-a"><num>(a)</num><content><p>as receipts of that trade falling to be brought into account in computing the profits and gains of that trade for that period; or</p></content></level><level class="para1" eId="section-82-2-b"><num>(b)</num><content><p>as expenses of that trade which are deductible in computing those profits and gains.</p></content></level></subsection><subsection eId="section-82-3"><num>(3)</num><intro><p>Where for any accounting period there are, in respect of the loan relationships of a company, both—</p></intro><level class="para1" eId="section-82-3-a"><num>(a)</num><content><p>credits that are not brought into account under subsection (2) above (“non-trading credits”), and</p></content></level><level class="para1" eId="section-82-3-b"><num>(b)</num><content><p>debits that are not so brought into account (“non-trading debits”),</p></content></level><wrapUp><p>the aggregate of the non-trading debits shall be subtracted from the aggregate of the non-trading credits to give the amount to be brought into account under subsection (4) below.</p></wrapUp></subsection><subsection eId="section-82-4"><num>(4)</num><intro><p>That amount is the amount which for any accounting period is to be taken (according to whether the aggregate of the non-trading credits or the aggregate of the non-trading debits is the greater) to be either—</p></intro><level class="para1" eId="section-82-4-a"><num>(a)</num><content><p>the amount of the company’s profits and gains for that period that are chargeable under Case III of Schedule D as profits and gains arising from the company’s loan relationships; or</p></content></level><level class="para1" eId="section-82-4-b"><num>(b)</num><content><p>the amount of the company’s non-trading deficit for that period on its loan relationships.</p></content></level></subsection><subsection eId="section-82-5"><num>(5)</num><content><p>Where for any accounting period a company has non-trading credits but no non-trading debits in respect of its loan relationships, the aggregate amount of the credits shall be the amount of the company’s profits and gains for that period that are chargeable under Case III of Schedule D as profits and gains arising from those relationships.</p></content></subsection><subsection eId="section-82-6"><num>(6)</num><content><p>Where for any accounting period a company has non-trading debits but no non-trading credits in respect of its loan relationships, that company shall have a non-trading deficit on its loan relationships for that period equal to the aggregate of the debits.</p></content></subsection><subsection eId="section-82-7"><num>(7)</num><content><p>Subsection (2) above, so far as it provides for any amount to be deductible as mentioned in paragraph (b) of that subsection, shall have effect notwithstanding anything in section 74 of the Taxes Act 1988 (allowable deductions).</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-82-1"><num>(1)</num><intro><p>For the purposes of corporation tax—</p></intro><level class="para1" eId="section-82-1-a"><num>(a)</num><content><p>the profits and gains arising from the loan relationships of a company, and</p></content></level><level class="para1" eId="section-82-1-b"><num>(b)</num><content><p>any deficit on a company’s loan relationships,</p></content></level><wrapUp><p>shall be computed in accordance with this section using the credits and debits given for the accounting period in question by the following provisions of this Chapter.</p></wrapUp></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-82-1-a"><num>(a)</num><content><p>the profits and gains arising from the loan relationships of a company, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-82-1-b"><num>(b)</num><content><p>any deficit on a company’s loan relationships,</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-82-2"><num>(2)</num><intro><p>To the extent that, in any accounting period, a loan relationship of a company is one to which it is a party for the purposes of a trade carried on by it, the credits and debits given in respect of that relationship for that period shall be treated (according to whether they are credits or debits) either—</p></intro><level class="para1" eId="section-82-2-a"><num>(a)</num><content><p>as receipts of that trade falling to be brought into account in computing the profits and gains of that trade for that period; or</p></content></level><level class="para1" eId="section-82-2-b"><num>(b)</num><content><p>as expenses of that trade which are deductible in computing those profits and gains.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-82-2-a"><num>(a)</num><content><p>as receipts of that trade falling to be brought into account in computing the profits and gains of that trade for that period; or</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-82-2-b"><num>(b)</num><content><p>as expenses of that trade which are deductible in computing those profits and gains.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-82-3"><num>(3)</num><intro><p>Where for any accounting period there are, in respect of the loan relationships of a company, both—</p></intro><level class="para1" eId="section-82-3-a"><num>(a)</num><content><p>credits that are not brought into account under subsection (2) above (“non-trading credits”), and</p></content></level><level class="para1" eId="section-82-3-b"><num>(b)</num><content><p>debits that are not so brought into account (“non-trading debits”),</p></content></level><wrapUp><p>the aggregate of the non-trading debits shall be subtracted from the aggregate of the non-trading credits to give the amount to be brought into account under subsection (4) below.</p></wrapUp></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-82-3-a"><num>(a)</num><content><p>credits that are not brought into account under subsection (2) above (“non-trading credits”), and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-82-3-b"><num>(b)</num><content><p>debits that are not so brought into account (“non-trading debits”),</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-82-4"><num>(4)</num><intro><p>That amount is the amount which for any accounting period is to be taken (according to whether the aggregate of the non-trading credits or the aggregate of the non-trading debits is the greater) to be either—</p></intro><level class="para1" eId="section-82-4-a"><num>(a)</num><content><p>the amount of the company’s profits and gains for that period that are chargeable under Case III of Schedule D as profits and gains arising from the company’s loan relationships; or</p></content></level><level class="para1" eId="section-82-4-b"><num>(b)</num><content><p>the amount of the company’s non-trading deficit for that period on its loan relationships.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-82-4-a"><num>(a)</num><content><p>the amount of the company’s profits and gains for that period that are chargeable under Case III of Schedule D as profits and gains arising from the company’s loan relationships; or</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-82-4-b"><num>(b)</num><content><p>the amount of the company’s non-trading deficit for that period on its loan relationships.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-82-5"><num>(5)</num><content><p>Where for any accounting period a company has non-trading credits but no non-trading debits in respect of its loan relationships, the aggregate amount of the credits shall be the amount of the company’s profits and gains for that period that are chargeable under Case III of Schedule D as profits and gains arising from those relationships.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-82-6"><num>(6)</num><content><p>Where for any accounting period a company has non-trading debits but no non-trading credits in respect of its loan relationships, that company shall have a non-trading deficit on its loan relationships for that period equal to the aggregate of the debits.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-82-7"><num>(7)</num><content><p>Subsection (2) above, so far as it provides for any amount to be deductible as mentioned in paragraph (b) of that subsection, shall have effect notwithstanding anything in section 74 of the Taxes Act 1988 (allowable deductions).</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-83"><num>83</num><heading>Non-trading deficit on loan relationships</heading><subsection eId="section-83-1"><num>(1)</num><content><p>This section applies for the purposes of corporation tax where for any accounting period (“the deficit period”) there is a non-trading deficit on a company’s loan relationships.</p></content></subsection><subsection eId="section-83-2"><num>(2)</num><intro><p>The company may make a claim for the whole or any part of the deficit to be treated in any of the following ways, that is to say—</p></intro><level class="para1" eId="section-83-2-a"><num>(a)</num><content><p>to be set off against any profits of the company (of whatever description) for the deficit period;</p></content></level><level class="para1" eId="section-83-2-b"><num>(b)</num><content><p>to be treated as eligible for group relief;</p></content></level><level class="para1" eId="section-83-2-c"><num>(c)</num><content><p>to be carried back to be set off against profits for earlier accounting periods; or</p></content></level><level class="para1" eId="section-83-2-d"><num>(d)</num><content><p>to be carried forward and set against non-trading profits for the next accounting period.</p></content></level></subsection><subsection eId="section-83-3"><num>(3)</num><content><p>So much of the deficit for the deficit period as is not the subject of a claim under subsection (2) above shall be carried forward so as to be brought into account for the purposes of this Chapter as a non-trading debit (“a carried-forward debit”) for the accounting period immediately following the deficit period.</p></content></subsection><subsection eId="section-83-4"><num>(4)</num><content><p>No claim shall be made under subsection (2)(a) to (c) above in respect of so much (if any) of the non-trading deficit of a company for any accounting period as is equal to the amount by which that deficit is greater than it would have been if any carried-forward debit for that period had been disregarded.</p></content></subsection><subsection eId="section-83-5"><num>(5)</num><content><p>No part of any non-trading deficit of a company established for charitable purposes only shall be set off against the profits of that or any other company in pursuance of a claim under subsection (2) above.</p></content></subsection><subsection eId="section-83-6"><num>(6)</num><content><p>A claim under subsection (2) above must be made within the period of two years immediately following the end of the relevant period, or within such further period as the Board may allow.</p></content></subsection><subsection eId="section-83-7"><num>(7)</num><intro><p>In subsection (6) above “the relevant period”—</p></intro><level class="para1" eId="section-83-7-a"><num>(a)</num><content><p>in relation to a claim under subsection (2)(a), (b) or (c) above, means the deficit period; and</p></content></level><level class="para1" eId="section-83-7-b"><num>(b)</num><content><p>in relation to a claim under subsection (2)(d) above, means the accounting period immediately following the deficit period.</p></content></level></subsection><subsection eId="section-83-8"><num>(8)</num><content><p>Different claims may be made under subsection (2) above as respects different parts of a non-trading deficit for any period, but no claim may be made as respects any part of a deficit to which another claim made under that subsection relates.</p></content></subsection><subsection eId="section-83-9"><num>(9)</num><content><p>Schedule 8 to this Act (which makes provision about what happens where a claim is made under subsection (2) above) shall have effect.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-83-1"><num>(1)</num><content><p>This section applies for the purposes of corporation tax where for any accounting period (“the deficit period”) there is a non-trading deficit on a company’s loan relationships.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-83-2"><num>(2)</num><intro><p>The company may make a claim for the whole or any part of the deficit to be treated in any of the following ways, that is to say—</p></intro><level class="para1" eId="section-83-2-a"><num>(a)</num><content><p>to be set off against any profits of the company (of whatever description) for the deficit period;</p></content></level><level class="para1" eId="section-83-2-b"><num>(b)</num><content><p>to be treated as eligible for group relief;</p></content></level><level class="para1" eId="section-83-2-c"><num>(c)</num><content><p>to be carried back to be set off against profits for earlier accounting periods; or</p></content></level><level class="para1" eId="section-83-2-d"><num>(d)</num><content><p>to be carried forward and set against non-trading profits for the next accounting period.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-83-2-a"><num>(a)</num><content><p>to be set off against any profits of the company (of whatever description) for the deficit period;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-83-2-b"><num>(b)</num><content><p>to be treated as eligible for group relief;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-83-2-c"><num>(c)</num><content><p>to be carried back to be set off against profits for earlier accounting periods; or</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-83-2-d"><num>(d)</num><content><p>to be carried forward and set against non-trading profits for the next accounting period.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-83-3"><num>(3)</num><content><p>So much of the deficit for the deficit period as is not the subject of a claim under subsection (2) above shall be carried forward so as to be brought into account for the purposes of this Chapter as a non-trading debit (“a carried-forward debit”) for the accounting period immediately following the deficit period.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-83-4"><num>(4)</num><content><p>No claim shall be made under subsection (2)(a) to (c) above in respect of so much (if any) of the non-trading deficit of a company for any accounting period as is equal to the amount by which that deficit is greater than it would have been if any carried-forward debit for that period had been disregarded.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-83-5"><num>(5)</num><content><p>No part of any non-trading deficit of a company established for charitable purposes only shall be set off against the profits of that or any other company in pursuance of a claim under subsection (2) above.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-83-6"><num>(6)</num><content><p>A claim under subsection (2) above must be made within the period of two years immediately following the end of the relevant period, or within such further period as the Board may allow.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-83-7"><num>(7)</num><intro><p>In subsection (6) above “the relevant period”—</p></intro><level class="para1" eId="section-83-7-a"><num>(a)</num><content><p>in relation to a claim under subsection (2)(a), (b) or (c) above, means the deficit period; and</p></content></level><level class="para1" eId="section-83-7-b"><num>(b)</num><content><p>in relation to a claim under subsection (2)(d) above, means the accounting period immediately following the deficit period.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-83-7-a"><num>(a)</num><content><p>in relation to a claim under subsection (2)(a), (b) or (c) above, means the deficit period; and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-83-7-b"><num>(b)</num><content><p>in relation to a claim under subsection (2)(d) above, means the accounting period immediately following the deficit period.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-83-8"><num>(8)</num><content><p>Different claims may be made under subsection (2) above as respects different parts of a non-trading deficit for any period, but no claim may be made as respects any part of a deficit to which another claim made under that subsection relates.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-83-9"><num>(9)</num><content><p>Schedule 8 to this Act (which makes provision about what happens where a claim is made under subsection (2) above) shall have effect.</p></content></subsection>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="part-IV-chapter-II-crossheading-computational-provisions-etc"><heading>Computational provisions etc.</heading><section eId="section-84"><num>84</num><heading>Debits and credits brought into account</heading><subsection eId="section-84-1"><num>(1)</num><intro><p>The credits and debits to be brought into account in the case of any company in respect of its loan relationships shall be the sums which, in accordance with an authorised accounting method and when taken together, fairly represent, for the accounting period in question—</p></intro><level class="para1" eId="section-84-1-a"><num>(a)</num><content><p>all profits, gains and losses of the company, including those of a capital nature, which (disregarding interest and any charges or expenses) arise to the company from its loan relationships and related transactions; and</p></content></level><level class="para1" eId="section-84-1-b"><num>(b)</num><content><p>all interest under the company’s loan relationship and all charges and expenses incurred by the company under or for the purposes of its loan relationships and related transactions.</p></content></level></subsection><subsection eId="section-84-2"><num>(2)</num><intro><p>The reference in subsection (1) above to the profits, gains and losses arising to a company—</p></intro><level class="para1" eId="section-84-2-a"><num>(a)</num><content><p>does not include a reference to any amounts required to be transferred to the company’s share premium account; but</p></content></level><level class="para1" eId="section-84-2-b"><num>(b)</num><content><p>does include a reference to any profits, gains or losses which, in accordance with normal accountancy practice, are carried to or sustained by any other reserve maintained by the company.</p></content></level></subsection><subsection eId="section-84-3"><num>(3)</num><intro><p>The reference in subsection (1)(b) above to charges and expenses incurred for the purposes of a company’s loan relationships and related transactions does not include a reference to any charges or expenses other than those incurred directly—</p></intro><level class="para1" eId="section-84-3-a"><num>(a)</num><content><p>in bringing any of those relationships into existence;</p></content></level><level class="para1" eId="section-84-3-b"><num>(b)</num><content><p>in entering into or giving effect to any of those transactions;</p></content></level><level class="para1" eId="section-84-3-c"><num>(c)</num><content><p>in making payments under any of those relationships or in pursuance of any of those transactions; or</p></content></level><level class="para1" eId="section-84-3-d"><num>(d)</num><content><p>in taking steps for ensuring the receipt of payments under any of those relationships or in accordance with any of those transactions.</p></content></level></subsection><subsection eId="section-84-4"><num>(4)</num><intro><p>Where—</p></intro><level class="para1" eId="section-84-4-a"><num>(a)</num><intro><p>any charges or expenses are incurred by a company for purposes connected—</p></intro><level class="para2" eId="section-84-4-a-i"><num>(i)</num><content><p>with entering into a loan relationship or related transaction, or</p></content></level><level class="para2" eId="section-84-4-a-ii"><num>(ii)</num><content><p>with giving effect to any obligation that might arise under a loan relationship or related transaction,</p></content></level></level><level class="para1" eId="section-84-4-b"><num>(b)</num><content><p>at the time when the charges or expenses are incurred, the relationship or transaction is one into which the company may enter but has not entered, and</p></content></level><level class="para1" eId="section-84-4-c"><num>(c)</num><content><p>if that relationship or transaction had been entered into by that company, the charges or expenses would be charges or expenses incurred as mentioned in subsection (3) above,</p></content></level><wrapUp><p>those charges or expenses shall be treated for the purposes of this Chapter as charges or expenses in relation to which debits may be brought into account in accordance with subsection (1)(b) above to the same extent as if the relationship or transaction had been entered into.</p></wrapUp></subsection><subsection eId="section-84-5"><num>(5)</num><content><p>In this section “related transaction”, in relation to a loan relationship, means any disposal or acquisition (in whole or in part) of rights or liabilities under that relationship.</p></content></subsection><subsection eId="section-84-6"><num>(6)</num><content><p>The cases where there shall be taken for the purposes of this section to be a disposal and acquisition of rights or liabilities under a loan relationship shall include those where such rights or liabilities are transferred or extinguished by any sale, gift, exchange, surrender, redemption or release.</p></content></subsection><subsection eId="section-84-7"><num>(7)</num><content><p>This section has effect subject to Schedule 9 to this Act (which contains provision disallowing certain debits and credits for the purposes of this Chapter and making assumptions about how an authorised accounting method is to be applied in certain cases).</p></content></subsection></section><section eId="section-85"><num>85</num><heading>Authorised accounting methods</heading><subsection eId="section-85-1"><num>(1)</num><intro><p>Subject to the following provisions of this Chapter, the alternative accounting methods that are authorised for the purposes of this Chapter are—</p></intro><level class="para1" eId="section-85-1-a"><num>(a)</num><content><p>an accruals basis of accounting; and</p></content></level><level class="para1" eId="section-85-1-b"><num>(b)</num><content><p>a mark to market basis of accounting under which any loan relationship to which that basis is applied is brought into account in each accounting period at a fair value.</p></content></level></subsection><subsection eId="section-85-2"><num>(2)</num><intro><p>An accounting method applied in any case shall be treated as authorised for the purposes of this Chapter only if—</p></intro><level class="para1" eId="section-85-2-a"><num>(a)</num><content><p>it conforms (subject to paragraphs (b) and (c) below) to normal accountancy practice, as followed in cases where such practice allows the use of that method;</p></content></level><level class="para1" eId="section-85-2-b"><num>(b)</num><content><p>it contains proper provision for allocating payments under a loan relationship to accounting periods; and</p></content></level><level class="para1" eId="section-85-2-c"><num>(c)</num><content><p>where it is an accruals basis of accounting, it does not contain any provision (other than provision comprised in authorised arrangements for bad debt) that gives debits by reference to the valuation at different times of any asset representing a loan relationship.</p></content></level></subsection><subsection eId="section-85-3"><num>(3)</num><intro><p>In the case of an accruals basis of accounting, proper provision for allocating payments under a loan relationship to accounting periods is provision which—</p></intro><level class="para1" eId="section-85-3-a"><num>(a)</num><content><p>allocates payments to the period to which they relate, without regard to the periods in which they are made or received or in which they become due and payable;</p></content></level><level class="para1" eId="section-85-3-b"><num>(b)</num><content><p>includes provision which, where payments relate to two or more periods, apportions them on a just and reasonable basis between the different periods;</p></content></level><level class="para1" eId="section-85-3-c"><num>(c)</num><content><p>assumes, subject to authorised arrangements for bad debt, that, so far as any company in the position of a creditor is concerned, every amount payable under the relationship will be paid in full as it becomes due;</p></content></level><level class="para1" eId="section-85-3-d"><num>(d)</num><content><p>secures the making of the adjustments required in the case of the relationship by authorised arrangements for bad debt; and</p></content></level><level class="para1" eId="section-85-3-e"><num>(e)</num><content><p>provides, subject to authorised arrangements for bad debt and for writing off government investments, that, where there is a release of any liability under the relationship, the appropriate amount in respect of the release is credited to the debtor in the accounting period in which the release takes place.</p></content></level></subsection><subsection eId="section-85-4"><num>(4)</num><content><p>In the case of a mark to market basis of accounting, proper provision for allocating payments under a loan relationship to accounting periods is provision which allocates payments to the accounting period in which they become due and payable.</p></content></subsection><subsection eId="section-85-5"><num>(5)</num><intro><p>In this section—</p></intro><level class="para1" eId="section-85-5-a"><num>(a)</num><content><p>the references to authorised arrangements for bad debt are references to accounting arrangements under which debits and credits are brought into account in conformity with the provisions of paragraph 5 of Schedule 9 to this Act; and</p></content></level><level class="para1" eId="section-85-5-b"><num>(b)</num><content><p>the reference to authorised arrangements for writing off government investments is a reference to accounting arrangements that give effect to paragraph 7 of that Schedule.</p></content></level></subsection><subsection eId="section-85-6"><num>(6)</num><intro><p>In this section “fair value”, in relation to any loan relationship of a company, means the amount which, at the time as at which the value falls to be determined, is the amount that the company would obtain from or, as the case may be, would have to pay to an independent person for—</p></intro><level class="para1" eId="section-85-6-a"><num>(a)</num><content><p>the transfer of all the company’s rights under the relationship in respect of amounts which at that time are not yet due and payable; and</p></content></level><level class="para1" eId="section-85-6-b"><num>(b)</num><content><p>the release of all the company’s liabilities under the relationship in respect of amounts which at that time are not yet due and payable.</p></content></level></subsection></section><section eId="section-86"><num>86</num><heading>Application of accounting methods</heading><subsection eId="section-86-1"><num>(1)</num><content><p>This section has effect, subject to the following provisions of this Chapter, for the determination of which of the alternative authorised accounting methods that are available by virtue of section 85 above is to be used as respects the loan relationships of a company.</p></content></subsection><subsection eId="section-86-2"><num>(2)</num><content><p>Different methods may be used as respects different relationships or, as respects the same relationship, for different accounting periods or for different parts of the same accounting period.</p></content></subsection><subsection eId="section-86-3"><num>(3)</num><intro><p>If a basis of accounting which is or equates with an authorised accounting method is used as respects any loan relationship of a company in a company’s statutory accounts, then the method which is to be used for the purposes of this Chapter as respects that relationship for the accounting period, or part of a period, for which that basis is used in those accounts shall be—</p></intro><level class="para1" eId="section-86-3-a"><num>(a)</num><content><p>where the basis used in those accounts is an authorised accounting method, that method; and</p></content></level><level class="para1" eId="section-86-3-b"><num>(b)</num><content><p>where it is not, the authorised accounting method with which it equates.</p></content></level></subsection><subsection eId="section-86-4"><num>(4)</num><content><p>For any period or part of a period for which the authorised accounting method to be used as respects a loan relationship of a company is not determined under subsection (3) above, an authorised accruals basis of accounting shall be used for the purposes of this Chapter as respects that loan relationship.</p></content></subsection><subsection eId="section-86-5"><num>(5)</num><intro><p>For the purposes of this section (but subject to subsection (6) below)—</p></intro><level class="para1" eId="section-86-5-a"><num>(a)</num><content><p>a basis of accounting equates with an authorised accruals basis of accounting if it purports to allocate payments under a loan relationship to accounting periods according to when they are taken to accrue; and</p></content></level><level class="para1" eId="section-86-5-b"><num>(b)</num><intro><p>a basis of accounting equates with an authorised mark to market basis of accounting if (without equating with an authorised accruals basis of accounting) it purports in respect of a loan relationship—</p></intro><level class="para2" eId="section-86-5-b-i"><num>(i)</num><content><p>to produce credits or debits computed by reference to the determination, as at different times in an accounting period, of a fair value; and</p></content></level><level class="para2" eId="section-86-5-b-ii"><num>(ii)</num><content><p>to produce credits or debits relating to payments under that relationship according to when they become due and payable.</p></content></level></level></subsection><subsection eId="section-86-6"><num>(6)</num><intro><p>An accounting method which purports to make any such allocation of payments under a loan relationship as is mentioned in subsection (5)(a) above shall be taken for the purposes of this section to equate with an authorised mark to market basis of accounting (rather than with an authorised accruals basis of accounting) if—</p></intro><level class="para1" eId="section-86-6-a"><num>(a)</num><content><p>it purports to bring that relationship into account in each accounting period at a value which would be a fair value if the valuation were made on the basis that interest under the relationship were to be disregarded to the extent that it has already accrued; and</p></content></level><level class="para1" eId="section-86-6-b"><num>(b)</num><content><p>the credits and debits produced in the case of that relationship by that method (when it is properly applied) correspond, for all practical purposes, to the credits and debits produced in the case of that relationship, and for the same accounting period, by an authorised mark to market basis of accounting.</p></content></level></subsection><subsection eId="section-86-7"><num>(7)</num><content><p>In this section “fair value” has the same meaning as in section 85 above.</p></content></subsection><subsection eId="section-86-8"><num>(8)</num><intro><p>In this section “statutory accounts”, in relation to a company, means—</p></intro><level class="para1" eId="section-86-8-a"><num>(a)</num><content><p>any accounts relating to that company that are drawn up in accordance with any requirements of the <noteRef href="#m00054" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Companies Act 1985 or the <noteRef href="#m00055" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Companies (Northern Ireland) Order 1986 that apply in relation to that company;</p></content></level><level class="para1" eId="section-86-8-b"><num>(b)</num><content><p>any accounts relating to that company that are drawn up in accordance with any requirements of regulations under section 70 of the <noteRef href="#m00056" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Friendly Societies Act 1992 that apply in relation to that company;</p></content></level><level class="para1" eId="section-86-8-c"><num>(c)</num><content><p>any accounts relating to that company which are accounts to which Part I of Schedule 21C to the <noteRef href="#m00057" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Companies Act 1985 or Part I of Schedule 21D to that Act (companies with UK branches) applies;</p></content></level><level class="para1" eId="section-86-8-d"><num>(d)</num><intro><p>in the case of a company which—</p></intro><level class="para2" eId="section-86-8-d-i"><num>(i)</num><content><p>is not subject to any such requirements as are mentioned in paragraphs (a) or (b) above, and</p></content></level><level class="para2" eId="section-86-8-d-ii"><num>(ii)</num><content><p>is a company in whose case there are no accounts for the period in question that fall within paragraph (c) above,</p></content></level><wrapUp><p>any accounts relating to the company drawn up in accordance with requirements imposed in relation to that company under the law of its home State; and</p></wrapUp></level><level class="para1" eId="section-86-8-e"><num>(e)</num><intro><p>in the case of a company which—</p></intro><level class="para2" eId="section-86-8-e-i"><num>(i)</num><content><p>is not subject to any such requirements as are mentioned in paragraphs (a), (b) or (d) above, and</p></content></level><level class="para2" eId="section-86-8-e-ii"><num>(ii)</num><content><p>is a company in whose case there are no accounts for the period in question that fall within paragraph (c) above,</p></content></level><wrapUp><p>the accounts relating to the company that most closely correspond to the accounts which, in the case of a company formed and registered under the Companies Act 1985, are required under that Act.</p></wrapUp></level></subsection><subsection eId="section-86-9"><num>(9)</num><content><p>For the purposes of subsection (8) above the home State of a company is the country or territory under whose law the company is incorporated.</p></content></subsection></section><section eId="section-87"><num>87</num><heading>Accounting method where parties have a connection</heading><subsection eId="section-87-1"><num>(1)</num><intro><p>This section applies in the case of a loan relationship of a company where for any accounting period there is a connection between the company and—</p></intro><level class="para1" eId="section-87-1-a"><num>(a)</num><content><p>in the case of a debtor relationship of the company, a person standing in the position of a creditor as respects the debt in question; or</p></content></level><level class="para1" eId="section-87-1-b"><num>(b)</num><content><p>in the case of a creditor relationship of the company, a person standing in the position of a debtor as respects that debt.</p></content></level></subsection><subsection eId="section-87-2"><num>(2)</num><content><p>The only accounting method authorised for the purposes of this Chapter for use by the company as respects the loan relationship shall be an authorised accruals basis of accounting.</p></content></subsection><subsection eId="section-87-3"><num>(3)</num><intro><p>For the purposes of this section there is a connection between a company and another person for an accounting period if (subject to subsection (4) and section 88 below)—</p></intro><level class="para1" eId="section-87-3-a"><num>(a)</num><content><p>the other person is a company and there is a time in that period, or in the two years before the beginning of that period, when one of the companies has had control of the other;</p></content></level><level class="para1" eId="section-87-3-b"><num>(b)</num><content><p>the other person is a company and there is a time in that period, or in those two years, when both the companies have been under the control of the same person; or</p></content></level><level class="para1" eId="section-87-3-c"><num>(c)</num><content><p>there is a time in that accounting period, or in those two years, when the company was a close company and the other person was a participator in that company or the associate of a person who was such a participator at that time.</p></content></level></subsection><subsection eId="section-87-4"><num>(4)</num><content><p>Two companies which have at any time been under the control of the same person shall not, by virtue of that fact, be taken for the purposes of this section to be companies between whom there is a connection if the person was the Crown, a Minister of the Crown, a government department, a Northern Ireland department, a foreign sovereign power or an international organisation.</p></content></subsection><subsection eId="section-87-5"><num>(5)</num><content><p>The references in subsection (1) above to a person who stands in the position of a creditor or debtor as respects a loan relationship include references to a person who indirectly stands in that position by reference to a series of loan relationships.</p></content></subsection><subsection eId="section-87-6"><num>(6)</num><content><p>Subsections (2) to (6) of section 416 of the Taxes Act 1988 (meaning of “control”) shall apply for the purposes of this section as they apply for the purposes of Part XI of that Act.</p></content></subsection><subsection eId="section-87-7"><num>(7)</num><content><p>Subject to subsection (8) below, in this section “participator” and “associate” have the meanings given for the purposes of Part XI of the Taxes Act 1988 by section 417 of that Act.</p></content></subsection><subsection eId="section-87-8"><num>(8)</num><content><p>A person shall not for the purposes of this section be regarded as a participator in relation to a company by reason only that he is a loan creditor of the company.</p></content></subsection></section><section eId="section-88"><num>88</num><heading>Exemption from section 87 in certain cases</heading><subsection eId="section-88-1"><num>(1)</num><content><p>Subject to subsection (5) below, where a creditor relationship of a company is one to which that company is a party in any accounting period in exempt circumstances, any connection for that accounting period between the company and a person who stands in the position of a debtor as respects the debt shall be disregarded for the purposes of section 87 above.</p></content></subsection><subsection eId="section-88-2"><num>(2)</num><intro><p>A company having a creditor relationship in any accounting period shall, for that period, be taken for the purposes of this section to be a party to that relationship in exempt circumstances if—</p></intro><level class="para1" eId="section-88-2-a"><num>(a)</num><content><p>the company, in the course of carrying on any activities forming an integral part of a trade carried on by that company in that period, disposes of or acquires assets representing creditor relationships;</p></content></level><level class="para1" eId="section-88-2-b"><num>(b)</num><content><p>that period is one for which the company uses an authorised mark to market basis of accounting as respects all the creditor relationships represented by assets acquired in the course of those activities;</p></content></level><level class="para1" eId="section-88-2-c"><num>(c)</num><content><p>the asset representing the creditor relationship in question was acquired in the course of those activities;</p></content></level><level class="para1" eId="section-88-2-d"><num>(d)</num><intro><p>that asset is either—</p></intro><level class="para2" eId="section-88-2-d-i"><num>(i)</num><content><p>listed on a recognised stock exchange at the end of that period; or</p></content></level><level class="para2" eId="section-88-2-d-ii"><num>(ii)</num><content><p>a security the redemption of which must occur within twelve months of its issue;</p></content></level></level><level class="para1" eId="section-88-2-e"><num>(e)</num><content><p>there is a time in that period when assets of the same kind as the asset representing the loan relationship in question are in the beneficial ownership of persons other than the company; and</p></content></level><level class="para1" eId="section-88-2-f"><num>(f)</num><content><p>there is not more than three months, in aggregate, in that accounting period during which the equivalent of 30 per cent. or more of the assets of that kind is in the beneficial ownership of connected persons.</p></content></level></subsection><subsection eId="section-88-3"><num>(3)</num><intro><p>An insurance company carrying on basic life assurance and general annuity business and having a creditor relationship in any accounting period shall, for that period, be taken for the purposes of this section to be a party to that relationship in exempt circumstances if—</p></intro><level class="para1" eId="section-88-3-a"><num>(a)</num><content><p>assets of the company representing any of its creditor relationships are linked for that period to its basic life assurance and general annuity business;</p></content></level><level class="para1" eId="section-88-3-b"><num>(b)</num><content><p>that period is one for which the company uses an authorised mark to market basis of accounting as respects all the creditor relationships of the company represented by assets that are so linked;</p></content></level><level class="para1" eId="section-88-3-c"><num>(c)</num><content><p>the asset representing the creditor relationship in question is so linked;</p></content></level><level class="para1" eId="section-88-3-d"><num>(d)</num><intro><p>that asset is either—</p></intro><level class="para2" eId="section-88-3-d-i"><num>(i)</num><content><p>listed on a recognised stock exchange at the end of that period; or</p></content></level><level class="para2" eId="section-88-3-d-ii"><num>(ii)</num><content><p>a security the redemption of which must occur within twelve months of its issue;</p></content></level></level><level class="para1" eId="section-88-3-e"><num>(e)</num><content><p>there is a time in that period when assets of the same kind as the asset representing the creditor relationship in question are in the beneficial ownership of persons other than the company; and</p></content></level><level class="para1" eId="section-88-3-f"><num>(f)</num><content><p>there is not more than three months, in aggregate, in that accounting period during which the equivalent of 30 per cent. or more of the assets of that kind is in the beneficial ownership of connected persons.</p></content></level></subsection><subsection eId="section-88-4"><num>(4)</num><intro><p>For the purposes of subsections (2) and (3) above—</p></intro><level class="para1" eId="section-88-4-a"><num>(a)</num><content><p>assets shall be taken to be of the same kind where they are treated as being of the same kind by the practice of any recognised stock exchange, or would be so treated if dealt with on such a stock exchange; and</p></content></level><level class="para1" eId="section-88-4-b"><num>(b)</num><intro><p>a connected person has the beneficial ownership of an asset wherever there is, or (apart from this section) would be, a connection (within the meaning of section 87 above) between—</p></intro><level class="para2" eId="section-88-4-b-i"><num>(i)</num><content><p>the person who has the beneficial ownership of the asset, and</p></content></level><level class="para2" eId="section-88-4-b-ii"><num>(ii)</num><content><p>a person who stands in the position of a debtor as respects the money debt by reference to which any loan relationship represented by that asset subsists.</p></content></level></level></subsection><subsection eId="section-88-5"><num>(5)</num><intro><p>Where for any accounting period—</p></intro><level class="para1" eId="section-88-5-a"><num>(a)</num><content><p>subsection (1) above has effect in the case of a creditor relationship of a company, and</p></content></level><level class="para1" eId="section-88-5-b"><num>(b)</num><content><p>the person who stands in the position of a debtor as respects the debt in question is also a company,</p></content></level><wrapUp><p>that subsection shall not apply for determining, for the purposes of so much of section 87 above as relates to the corresponding debtor relationship, whether there is a connection between the two companies.</p></wrapUp></subsection><subsection eId="section-88-6"><num>(6)</num><content><p>Subsection (5) of section 87 above shall apply for the purposes of this section as it applies for the purposes of that section.</p></content></subsection><subsection eId="section-88-7"><num>(7)</num><content><p>In this section “basic life assurance and general annuity business” and “insurance company” have the same meanings as in Chapter I of Part XII of the Taxes Act 1988, and section 432ZA of that Act (linked assets) shall apply for the purposes of this section as it applies for the purposes of that Chapter.</p></content></subsection></section><section eId="section-89"><num>89</num><heading>Inconsistent application of accounting methods</heading><subsection eId="section-89-1"><num>(1)</num><content><p>Where there is any inconsistency or other material difference between the way in which any authorised accounting method is applied as respects the same loan relationship in successive accounting periods, a balancing credit or balancing debit shall be brought into account in the second of those periods (“the second period”).</p></content></subsection><subsection eId="section-89-2"><num>(2)</num><intro><p>The amount of the balancing credit or debit shall be computed as respects the relationship in question by—</p></intro><level class="para1" eId="section-89-2-a"><num>(a)</num><content><p>taking the amount given by subsection (3) below and the amount given by subsection (4) below; and</p></content></level><level class="para1" eId="section-89-2-b"><num>(b)</num><content><p>then aggregating those amounts (treating any debit as a negative amount) to produce a net credit or net debit.</p></content></level></subsection><subsection eId="section-89-3"><num>(3)</num><intro><p>The amount given by this subsection is whichever of the following is applicable—</p></intro><level class="para1" eId="section-89-3-a"><num>(a)</num><intro><p>a debit equal to the amount (if any) by which the first of the following amounts exceeds the second, that is to say—</p></intro><level class="para2" eId="section-89-3-a-i"><num>(i)</num><content><p>the aggregate of the credits actually brought into account for all previous periods in which the accounting method was used; and</p></content></level><level class="para2" eId="section-89-3-a-ii"><num>(ii)</num><content><p>the aggregate of the credits that would have been brought into account if that method had been applied in those periods in the same way as it was applied in the second period;</p></content></level></level><level class="para1" eId="section-89-3-b"><num>(b)</num><content><p>a credit equal to the amount (if any) by which the second aggregate mentioned in paragraph (a) above exceeds the first; or</p></content></level><level class="para1" eId="section-89-3-c"><num>(c)</num><content><p>if both those aggregates are the same, nil.</p></content></level></subsection><subsection eId="section-89-4"><num>(4)</num><intro><p>The amount given by this subsection is whichever of the following is applicable—</p></intro><level class="para1" eId="section-89-4-a"><num>(a)</num><intro><p>a credit equal to the amount (if any) by which the first of the following amounts exceeds the second, that is to say—</p></intro><level class="para2" eId="section-89-4-a-i"><num>(i)</num><content><p>the aggregate of the debits actually brought into account for all previous periods in which the accounting method was used; and</p></content></level><level class="para2" eId="section-89-4-a-ii"><num>(ii)</num><content><p>the aggregate of the debits that would have been brought into account if that method had been applied in those periods in the same way as it was applied in the second period;</p></content></level></level><level class="para1" eId="section-89-4-b"><num>(b)</num><content><p>a debit equal to the amount (if any) by which the second aggregate mentioned in paragraph (a) above exceeds the first; or</p></content></level><level class="para1" eId="section-89-4-c"><num>(c)</num><content><p>if both those aggregates are the same, nil.</p></content></level></subsection><subsection eId="section-89-5"><num>(5)</num><content><p>In this section “previous period” means any accounting period before the second period.</p></content></subsection></section><section eId="section-90"><num>90</num><heading>Changes of accounting method</heading><subsection eId="section-90-1"><num>(1)</num><content><p>This section applies where different authorised accounting methods are used for the purposes of this Chapter as respects the same loan relationship for different parts of the same accounting period or for successive accounting periods.</p></content></subsection><subsection eId="section-90-2"><num>(2)</num><intro><p>Where, in the case of any loan relationship, the use of any authorised accounting method is superseded in the course of any accounting period by the use of another—</p></intro><level class="para1" eId="section-90-2-a"><num>(a)</num><content><p>the assumptions specified in subsection (4) below shall be made;</p></content></level><level class="para1" eId="section-90-2-b"><num>(b)</num><content><p>each method shall be applied on those assumptions as respects the part of the period for which it is used; and</p></content></level><level class="para1" eId="section-90-2-c"><num>(c)</num><content><p>the credits and debits given by the application of those methods on those assumptions shall be brought into account in the accounting period in which the change of method takes effect.</p></content></level></subsection><subsection eId="section-90-3"><num>(3)</num><intro><p>Where, in the case of any loan relationship, the use of any authorised accounting method is superseded as from the beginning of an accounting period by the use of another—</p></intro><level class="para1" eId="section-90-3-a"><num>(a)</num><intro><p>a net credit or debit shall be computed (treating any debit used in the computation as a negative amount) by—</p></intro><level class="para2" eId="section-90-3-a-i"><num>(i)</num><content><p>aggregating the credits and debits which, on the assumptions specified in subsection (4) below, would have been given in respect of that relationship for the successive accounting periods by the use for each period of the accounting method actually used for that period;</p></content></level><level class="para2" eId="section-90-3-a-ii"><num>(ii)</num><content><p>aggregating the credits and debits so given without the making of those assumptions; and</p></content></level><level class="para2" eId="section-90-3-a-iii"><num>(iii)</num><content><p>subtracting the second aggregate from the first;</p></content></level><wrapUp><p>and</p></wrapUp></level><level class="para1" eId="section-90-3-b"><num>(b)</num><content><p>the net credit or debit shall be brought into account for the purposes of this Chapter in the accounting period as from the beginning of which the change of method takes effect.</p></content></level></subsection><subsection eId="section-90-4"><num>(4)</num><intro><p>The assumptions mentioned in subsections (2) and (3) above are—</p></intro><level class="para1" eId="section-90-4-a"><num>(a)</num><content><p>that the company ceased to be a party to the relationship immediately before the end of the period, or part of a period, for which the superseded method is used;</p></content></level><level class="para1" eId="section-90-4-b"><num>(b)</num><content><p>that the company again became a party to that relationship as from the beginning of the period or, as the case may be, part of a period for which the other authorised accounting method is used;</p></content></level><level class="para1" eId="section-90-4-c"><num>(c)</num><content><p>that the relationship to which the company is deemed to have become a party is separate and distinct from the one to which it is deemed to have ceased to be a party;</p></content></level><level class="para1" eId="section-90-4-d"><num>(d)</num><content><p>that the amount payable under the transaction comprised in each of the assumptions specified in paragraphs (a) and (b) above was equal to the fair value of the relationship; and</p></content></level><level class="para1" eId="section-90-4-e"><num>(e)</num><content><p>so far as relevant, that that amount became due at the time when the company is deemed to have ceased to be a party to the relationship or, as the case may be, to have again become a party to it.</p></content></level></subsection><subsection eId="section-90-5"><num>(5)</num><intro><p>Where—</p></intro><level class="para1" eId="section-90-5-a"><num>(a)</num><content><p>a mark to market basis of accounting is superseded by an accruals basis of accounting in the case of any loan relationship, and</p></content></level><level class="para1" eId="section-90-5-b"><num>(b)</num><content><p>the amount which would have accrued in respect of that relationship in the period or part of a period for which the accruals basis of accounting is used falls to be determined for the purposes of this section in accordance with the assumptions mentioned in subsection (4) above,</p></content></level><wrapUp><p>that amount shall be taken for those purposes to be equal to the amount resulting from the subtraction of the amount given by subsection (6)(a) below from the amount given by subsection (6)(b) below.</p></wrapUp></subsection><subsection eId="section-90-6"><num>(6)</num><intro><p>Those amounts are—</p></intro><level class="para1" eId="section-90-6-a"><num>(a)</num><content><p>the amount which by virtue of the assumptions mentioned in subsection (4) above is given as an opening value for the period or part of a period; and</p></content></level><level class="para1" eId="section-90-6-b"><num>(b)</num><content><p>the amount equal to whatever, in the computation in accordance with an authorised accruals basis of accounting of the amount accruing in that period or part of a period, would have been taken to be the closing value applicable as at the end of that period or part of a period if such a basis of accounting had always been used as respects the relationship.</p></content></level></subsection><subsection eId="section-90-7"><num>(7)</num><content><p>In this section “fair value” has the same meaning as in section 85 above.</p></content></subsection></section><section eId="section-91"><num>91</num><heading>Payments subject to deduction of tax</heading><subsection eId="section-91-1"><num>(1)</num><intro><p>This section applies where—</p></intro><level class="para1" eId="section-91-1-a"><num>(a)</num><content><p>any company receives a payment of interest on which it bears income tax by deduction; and</p></content></level><level class="para1" eId="section-91-1-b"><num>(b)</num><content><p>in the case of that company, a credit relating to that interest has been brought into account for the purposes of this Chapter for an accounting period ending more than two years before the receipt of the payment.</p></content></level></subsection><subsection eId="section-91-2"><num>(2)</num><content><p>On a claim made by the company to an officer of the Board, section 7(2) or, as the case may be, 11(3) of the Taxes Act 1988 (deducted income tax to be set against liability to corporation tax) shall have effect in relation to the income tax on the payment as if the interest had fallen to be taken into account for the purposes of corporation tax in the accounting period in which the payment of that interest is received.</p></content></subsection><subsection eId="section-91-3"><num>(3)</num><content><p>In determining for the purposes of this section which accounting period is the accounting period for which a credit relating to interest paid subsequently was brought into account, every payment of interest to a company under a loan relationship of that company shall be assumed to be a payment in discharge of the earliest outstanding liability to that company in respect of interest payable under the relationship.</p></content></subsection><subsection eId="section-91-4"><num>(4)</num><intro><p>For the purposes of this section, the earliest outstanding liability to interest payable under a loan relationship of a company shall be identified, in relation to any payment of such interest, according to the authorised accounting method most recently used as respects that relationship, so that—</p></intro><level class="para1" eId="section-91-4-a"><num>(a)</num><content><p>if that method is an authorised accruals basis of accounting, it shall be determined by reference to the time when the interest accrued; and</p></content></level><level class="para1" eId="section-91-4-b"><num>(b)</num><content><p>if that method is an authorised mark to market basis of accounting, it shall be determined by reference to the time when the interest became due and payable.</p></content></level></subsection><subsection eId="section-91-5"><num>(5)</num><content><p>In subsection (4) above the reference, in relation to a payment of interest made to a company in any accounting period, to the authorised accounting method most recently used as respects that relationship is a reference to the authorised accounting method which, in the case of that company, has been used as respects that relationship for the accounting period which, when the payment is made, is the most recent for which amounts in respect of that relationship have been brought into account for the purposes of this Chapter.</p></content></subsection><subsection eId="section-91-6"><num>(6)</num><intro><p>A claim under this section shall not be made in respect of any payment of interest at any time after the later of the following, that is to say—</p></intro><level class="para1" eId="section-91-6-a"><num>(a)</num><content><p>the time two years after the end of the accounting period in which the payment is received; and</p></content></level><level class="para1" eId="section-91-6-b"><num>(b)</num><content><p>the time six years after the end of the accounting period for which the credit in respect of the interest was brought into account for the purposes of this Chapter.</p></content></level></subsection><subsection eId="section-91-7"><num>(7)</num><intro><p>Where—</p></intro><level class="para1" eId="section-91-7-a"><num>(a)</num><content><p>there is a payment of interest to a company under a loan relationship of that company, and</p></content></level><level class="para1" eId="section-91-7-b"><num>(b)</num><content><p>the company is prevented by virtue of subsection (6) above from making any claim under this section in respect of that payment,</p></content></level><wrapUp><p>the company shall not be entitled to make any claim under paragraph 5 of Schedule 16 to the Taxes Act 1988 (set off of income tax borne against income tax payable) in respect of that payment.</p></wrapUp></subsection></section></hcontainer>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-84"><num>84</num><heading>Debits and credits brought into account</heading><subsection eId="section-84-1"><num>(1)</num><intro><p>The credits and debits to be brought into account in the case of any company in respect of its loan relationships shall be the sums which, in accordance with an authorised accounting method and when taken together, fairly represent, for the accounting period in question—</p></intro><level class="para1" eId="section-84-1-a"><num>(a)</num><content><p>all profits, gains and losses of the company, including those of a capital nature, which (disregarding interest and any charges or expenses) arise to the company from its loan relationships and related transactions; and</p></content></level><level class="para1" eId="section-84-1-b"><num>(b)</num><content><p>all interest under the company’s loan relationship and all charges and expenses incurred by the company under or for the purposes of its loan relationships and related transactions.</p></content></level></subsection><subsection eId="section-84-2"><num>(2)</num><intro><p>The reference in subsection (1) above to the profits, gains and losses arising to a company—</p></intro><level class="para1" eId="section-84-2-a"><num>(a)</num><content><p>does not include a reference to any amounts required to be transferred to the company’s share premium account; but</p></content></level><level class="para1" eId="section-84-2-b"><num>(b)</num><content><p>does include a reference to any profits, gains or losses which, in accordance with normal accountancy practice, are carried to or sustained by any other reserve maintained by the company.</p></content></level></subsection><subsection eId="section-84-3"><num>(3)</num><intro><p>The reference in subsection (1)(b) above to charges and expenses incurred for the purposes of a company’s loan relationships and related transactions does not include a reference to any charges or expenses other than those incurred directly—</p></intro><level class="para1" eId="section-84-3-a"><num>(a)</num><content><p>in bringing any of those relationships into existence;</p></content></level><level class="para1" eId="section-84-3-b"><num>(b)</num><content><p>in entering into or giving effect to any of those transactions;</p></content></level><level class="para1" eId="section-84-3-c"><num>(c)</num><content><p>in making payments under any of those relationships or in pursuance of any of those transactions; or</p></content></level><level class="para1" eId="section-84-3-d"><num>(d)</num><content><p>in taking steps for ensuring the receipt of payments under any of those relationships or in accordance with any of those transactions.</p></content></level></subsection><subsection eId="section-84-4"><num>(4)</num><intro><p>Where—</p></intro><level class="para1" eId="section-84-4-a"><num>(a)</num><intro><p>any charges or expenses are incurred by a company for purposes connected—</p></intro><level class="para2" eId="section-84-4-a-i"><num>(i)</num><content><p>with entering into a loan relationship or related transaction, or</p></content></level><level class="para2" eId="section-84-4-a-ii"><num>(ii)</num><content><p>with giving effect to any obligation that might arise under a loan relationship or related transaction,</p></content></level></level><level class="para1" eId="section-84-4-b"><num>(b)</num><content><p>at the time when the charges or expenses are incurred, the relationship or transaction is one into which the company may enter but has not entered, and</p></content></level><level class="para1" eId="section-84-4-c"><num>(c)</num><content><p>if that relationship or transaction had been entered into by that company, the charges or expenses would be charges or expenses incurred as mentioned in subsection (3) above,</p></content></level><wrapUp><p>those charges or expenses shall be treated for the purposes of this Chapter as charges or expenses in relation to which debits may be brought into account in accordance with subsection (1)(b) above to the same extent as if the relationship or transaction had been entered into.</p></wrapUp></subsection><subsection eId="section-84-5"><num>(5)</num><content><p>In this section “related transaction”, in relation to a loan relationship, means any disposal or acquisition (in whole or in part) of rights or liabilities under that relationship.</p></content></subsection><subsection eId="section-84-6"><num>(6)</num><content><p>The cases where there shall be taken for the purposes of this section to be a disposal and acquisition of rights or liabilities under a loan relationship shall include those where such rights or liabilities are transferred or extinguished by any sale, gift, exchange, surrender, redemption or release.</p></content></subsection><subsection eId="section-84-7"><num>(7)</num><content><p>This section has effect subject to Schedule 9 to this Act (which contains provision disallowing certain debits and credits for the purposes of this Chapter and making assumptions about how an authorised accounting method is to be applied in certain cases).</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-84-1"><num>(1)</num><intro><p>The credits and debits to be brought into account in the case of any company in respect of its loan relationships shall be the sums which, in accordance with an authorised accounting method and when taken together, fairly represent, for the accounting period in question—</p></intro><level class="para1" eId="section-84-1-a"><num>(a)</num><content><p>all profits, gains and losses of the company, including those of a capital nature, which (disregarding interest and any charges or expenses) arise to the company from its loan relationships and related transactions; and</p></content></level><level class="para1" eId="section-84-1-b"><num>(b)</num><content><p>all interest under the company’s loan relationship and all charges and expenses incurred by the company under or for the purposes of its loan relationships and related transactions.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-84-1-a"><num>(a)</num><content><p>all profits, gains and losses of the company, including those of a capital nature, which (disregarding interest and any charges or expenses) arise to the company from its loan relationships and related transactions; and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-84-1-b"><num>(b)</num><content><p>all interest under the company’s loan relationship and all charges and expenses incurred by the company under or for the purposes of its loan relationships and related transactions.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-84-2"><num>(2)</num><intro><p>The reference in subsection (1) above to the profits, gains and losses arising to a company—</p></intro><level class="para1" eId="section-84-2-a"><num>(a)</num><content><p>does not include a reference to any amounts required to be transferred to the company’s share premium account; but</p></content></level><level class="para1" eId="section-84-2-b"><num>(b)</num><content><p>does include a reference to any profits, gains or losses which, in accordance with normal accountancy practice, are carried to or sustained by any other reserve maintained by the company.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-84-2-a"><num>(a)</num><content><p>does not include a reference to any amounts required to be transferred to the company’s share premium account; but</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-84-2-b"><num>(b)</num><content><p>does include a reference to any profits, gains or losses which, in accordance with normal accountancy practice, are carried to or sustained by any other reserve maintained by the company.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-84-3"><num>(3)</num><intro><p>The reference in subsection (1)(b) above to charges and expenses incurred for the purposes of a company’s loan relationships and related transactions does not include a reference to any charges or expenses other than those incurred directly—</p></intro><level class="para1" eId="section-84-3-a"><num>(a)</num><content><p>in bringing any of those relationships into existence;</p></content></level><level class="para1" eId="section-84-3-b"><num>(b)</num><content><p>in entering into or giving effect to any of those transactions;</p></content></level><level class="para1" eId="section-84-3-c"><num>(c)</num><content><p>in making payments under any of those relationships or in pursuance of any of those transactions; or</p></content></level><level class="para1" eId="section-84-3-d"><num>(d)</num><content><p>in taking steps for ensuring the receipt of payments under any of those relationships or in accordance with any of those transactions.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-84-3-a"><num>(a)</num><content><p>in bringing any of those relationships into existence;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-84-3-b"><num>(b)</num><content><p>in entering into or giving effect to any of those transactions;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-84-3-c"><num>(c)</num><content><p>in making payments under any of those relationships or in pursuance of any of those transactions; or</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-84-3-d"><num>(d)</num><content><p>in taking steps for ensuring the receipt of payments under any of those relationships or in accordance with any of those transactions.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-84-4"><num>(4)</num><intro><p>Where—</p></intro><level class="para1" eId="section-84-4-a"><num>(a)</num><intro><p>any charges or expenses are incurred by a company for purposes connected—</p></intro><level class="para2" eId="section-84-4-a-i"><num>(i)</num><content><p>with entering into a loan relationship or related transaction, or</p></content></level><level class="para2" eId="section-84-4-a-ii"><num>(ii)</num><content><p>with giving effect to any obligation that might arise under a loan relationship or related transaction,</p></content></level></level><level class="para1" eId="section-84-4-b"><num>(b)</num><content><p>at the time when the charges or expenses are incurred, the relationship or transaction is one into which the company may enter but has not entered, and</p></content></level><level class="para1" eId="section-84-4-c"><num>(c)</num><content><p>if that relationship or transaction had been entered into by that company, the charges or expenses would be charges or expenses incurred as mentioned in subsection (3) above,</p></content></level><wrapUp><p>those charges or expenses shall be treated for the purposes of this Chapter as charges or expenses in relation to which debits may be brought into account in accordance with subsection (1)(b) above to the same extent as if the relationship or transaction had been entered into.</p></wrapUp></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-84-4-a"><num>(a)</num><intro><p>any charges or expenses are incurred by a company for purposes connected—</p></intro><level class="para2" eId="section-84-4-a-i"><num>(i)</num><content><p>with entering into a loan relationship or related transaction, or</p></content></level><level class="para2" eId="section-84-4-a-ii"><num>(ii)</num><content><p>with giving effect to any obligation that might arise under a loan relationship or related transaction,</p></content></level></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-84-4-a-i"><num>(i)</num><content><p>with entering into a loan relationship or related transaction, or</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-84-4-a-ii"><num>(ii)</num><content><p>with giving effect to any obligation that might arise under a loan relationship or related transaction,</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-84-4-b"><num>(b)</num><content><p>at the time when the charges or expenses are incurred, the relationship or transaction is one into which the company may enter but has not entered, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-84-4-c"><num>(c)</num><content><p>if that relationship or transaction had been entered into by that company, the charges or expenses would be charges or expenses incurred as mentioned in subsection (3) above,</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-84-5"><num>(5)</num><content><p>In this section “related transaction”, in relation to a loan relationship, means any disposal or acquisition (in whole or in part) of rights or liabilities under that relationship.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-84-6"><num>(6)</num><content><p>The cases where there shall be taken for the purposes of this section to be a disposal and acquisition of rights or liabilities under a loan relationship shall include those where such rights or liabilities are transferred or extinguished by any sale, gift, exchange, surrender, redemption or release.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-84-7"><num>(7)</num><content><p>This section has effect subject to Schedule 9 to this Act (which contains provision disallowing certain debits and credits for the purposes of this Chapter and making assumptions about how an authorised accounting method is to be applied in certain cases).</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-85"><num>85</num><heading>Authorised accounting methods</heading><subsection eId="section-85-1"><num>(1)</num><intro><p>Subject to the following provisions of this Chapter, the alternative accounting methods that are authorised for the purposes of this Chapter are—</p></intro><level class="para1" eId="section-85-1-a"><num>(a)</num><content><p>an accruals basis of accounting; and</p></content></level><level class="para1" eId="section-85-1-b"><num>(b)</num><content><p>a mark to market basis of accounting under which any loan relationship to which that basis is applied is brought into account in each accounting period at a fair value.</p></content></level></subsection><subsection eId="section-85-2"><num>(2)</num><intro><p>An accounting method applied in any case shall be treated as authorised for the purposes of this Chapter only if—</p></intro><level class="para1" eId="section-85-2-a"><num>(a)</num><content><p>it conforms (subject to paragraphs (b) and (c) below) to normal accountancy practice, as followed in cases where such practice allows the use of that method;</p></content></level><level class="para1" eId="section-85-2-b"><num>(b)</num><content><p>it contains proper provision for allocating payments under a loan relationship to accounting periods; and</p></content></level><level class="para1" eId="section-85-2-c"><num>(c)</num><content><p>where it is an accruals basis of accounting, it does not contain any provision (other than provision comprised in authorised arrangements for bad debt) that gives debits by reference to the valuation at different times of any asset representing a loan relationship.</p></content></level></subsection><subsection eId="section-85-3"><num>(3)</num><intro><p>In the case of an accruals basis of accounting, proper provision for allocating payments under a loan relationship to accounting periods is provision which—</p></intro><level class="para1" eId="section-85-3-a"><num>(a)</num><content><p>allocates payments to the period to which they relate, without regard to the periods in which they are made or received or in which they become due and payable;</p></content></level><level class="para1" eId="section-85-3-b"><num>(b)</num><content><p>includes provision which, where payments relate to two or more periods, apportions them on a just and reasonable basis between the different periods;</p></content></level><level class="para1" eId="section-85-3-c"><num>(c)</num><content><p>assumes, subject to authorised arrangements for bad debt, that, so far as any company in the position of a creditor is concerned, every amount payable under the relationship will be paid in full as it becomes due;</p></content></level><level class="para1" eId="section-85-3-d"><num>(d)</num><content><p>secures the making of the adjustments required in the case of the relationship by authorised arrangements for bad debt; and</p></content></level><level class="para1" eId="section-85-3-e"><num>(e)</num><content><p>provides, subject to authorised arrangements for bad debt and for writing off government investments, that, where there is a release of any liability under the relationship, the appropriate amount in respect of the release is credited to the debtor in the accounting period in which the release takes place.</p></content></level></subsection><subsection eId="section-85-4"><num>(4)</num><content><p>In the case of a mark to market basis of accounting, proper provision for allocating payments under a loan relationship to accounting periods is provision which allocates payments to the accounting period in which they become due and payable.</p></content></subsection><subsection eId="section-85-5"><num>(5)</num><intro><p>In this section—</p></intro><level class="para1" eId="section-85-5-a"><num>(a)</num><content><p>the references to authorised arrangements for bad debt are references to accounting arrangements under which debits and credits are brought into account in conformity with the provisions of paragraph 5 of Schedule 9 to this Act; and</p></content></level><level class="para1" eId="section-85-5-b"><num>(b)</num><content><p>the reference to authorised arrangements for writing off government investments is a reference to accounting arrangements that give effect to paragraph 7 of that Schedule.</p></content></level></subsection><subsection eId="section-85-6"><num>(6)</num><intro><p>In this section “fair value”, in relation to any loan relationship of a company, means the amount which, at the time as at which the value falls to be determined, is the amount that the company would obtain from or, as the case may be, would have to pay to an independent person for—</p></intro><level class="para1" eId="section-85-6-a"><num>(a)</num><content><p>the transfer of all the company’s rights under the relationship in respect of amounts which at that time are not yet due and payable; and</p></content></level><level class="para1" eId="section-85-6-b"><num>(b)</num><content><p>the release of all the company’s liabilities under the relationship in respect of amounts which at that time are not yet due and payable.</p></content></level></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-85-1"><num>(1)</num><intro><p>Subject to the following provisions of this Chapter, the alternative accounting methods that are authorised for the purposes of this Chapter are—</p></intro><level class="para1" eId="section-85-1-a"><num>(a)</num><content><p>an accruals basis of accounting; and</p></content></level><level class="para1" eId="section-85-1-b"><num>(b)</num><content><p>a mark to market basis of accounting under which any loan relationship to which that basis is applied is brought into account in each accounting period at a fair value.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-85-1-a"><num>(a)</num><content><p>an accruals basis of accounting; and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-85-1-b"><num>(b)</num><content><p>a mark to market basis of accounting under which any loan relationship to which that basis is applied is brought into account in each accounting period at a fair value.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-85-2"><num>(2)</num><intro><p>An accounting method applied in any case shall be treated as authorised for the purposes of this Chapter only if—</p></intro><level class="para1" eId="section-85-2-a"><num>(a)</num><content><p>it conforms (subject to paragraphs (b) and (c) below) to normal accountancy practice, as followed in cases where such practice allows the use of that method;</p></content></level><level class="para1" eId="section-85-2-b"><num>(b)</num><content><p>it contains proper provision for allocating payments under a loan relationship to accounting periods; and</p></content></level><level class="para1" eId="section-85-2-c"><num>(c)</num><content><p>where it is an accruals basis of accounting, it does not contain any provision (other than provision comprised in authorised arrangements for bad debt) that gives debits by reference to the valuation at different times of any asset representing a loan relationship.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-85-2-a"><num>(a)</num><content><p>it conforms (subject to paragraphs (b) and (c) below) to normal accountancy practice, as followed in cases where such practice allows the use of that method;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-85-2-b"><num>(b)</num><content><p>it contains proper provision for allocating payments under a loan relationship to accounting periods; and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-85-2-c"><num>(c)</num><content><p>where it is an accruals basis of accounting, it does not contain any provision (other than provision comprised in authorised arrangements for bad debt) that gives debits by reference to the valuation at different times of any asset representing a loan relationship.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-85-3"><num>(3)</num><intro><p>In the case of an accruals basis of accounting, proper provision for allocating payments under a loan relationship to accounting periods is provision which—</p></intro><level class="para1" eId="section-85-3-a"><num>(a)</num><content><p>allocates payments to the period to which they relate, without regard to the periods in which they are made or received or in which they become due and payable;</p></content></level><level class="para1" eId="section-85-3-b"><num>(b)</num><content><p>includes provision which, where payments relate to two or more periods, apportions them on a just and reasonable basis between the different periods;</p></content></level><level class="para1" eId="section-85-3-c"><num>(c)</num><content><p>assumes, subject to authorised arrangements for bad debt, that, so far as any company in the position of a creditor is concerned, every amount payable under the relationship will be paid in full as it becomes due;</p></content></level><level class="para1" eId="section-85-3-d"><num>(d)</num><content><p>secures the making of the adjustments required in the case of the relationship by authorised arrangements for bad debt; and</p></content></level><level class="para1" eId="section-85-3-e"><num>(e)</num><content><p>provides, subject to authorised arrangements for bad debt and for writing off government investments, that, where there is a release of any liability under the relationship, the appropriate amount in respect of the release is credited to the debtor in the accounting period in which the release takes place.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-85-3-a"><num>(a)</num><content><p>allocates payments to the period to which they relate, without regard to the periods in which they are made or received or in which they become due and payable;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-85-3-b"><num>(b)</num><content><p>includes provision which, where payments relate to two or more periods, apportions them on a just and reasonable basis between the different periods;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-85-3-c"><num>(c)</num><content><p>assumes, subject to authorised arrangements for bad debt, that, so far as any company in the position of a creditor is concerned, every amount payable under the relationship will be paid in full as it becomes due;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-85-3-d"><num>(d)</num><content><p>secures the making of the adjustments required in the case of the relationship by authorised arrangements for bad debt; and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-85-3-e"><num>(e)</num><content><p>provides, subject to authorised arrangements for bad debt and for writing off government investments, that, where there is a release of any liability under the relationship, the appropriate amount in respect of the release is credited to the debtor in the accounting period in which the release takes place.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-85-4"><num>(4)</num><content><p>In the case of a mark to market basis of accounting, proper provision for allocating payments under a loan relationship to accounting periods is provision which allocates payments to the accounting period in which they become due and payable.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-85-5"><num>(5)</num><intro><p>In this section—</p></intro><level class="para1" eId="section-85-5-a"><num>(a)</num><content><p>the references to authorised arrangements for bad debt are references to accounting arrangements under which debits and credits are brought into account in conformity with the provisions of paragraph 5 of Schedule 9 to this Act; and</p></content></level><level class="para1" eId="section-85-5-b"><num>(b)</num><content><p>the reference to authorised arrangements for writing off government investments is a reference to accounting arrangements that give effect to paragraph 7 of that Schedule.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-85-5-a"><num>(a)</num><content><p>the references to authorised arrangements for bad debt are references to accounting arrangements under which debits and credits are brought into account in conformity with the provisions of paragraph 5 of Schedule 9 to this Act; and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-85-5-b"><num>(b)</num><content><p>the reference to authorised arrangements for writing off government investments is a reference to accounting arrangements that give effect to paragraph 7 of that Schedule.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-85-6"><num>(6)</num><intro><p>In this section “fair value”, in relation to any loan relationship of a company, means the amount which, at the time as at which the value falls to be determined, is the amount that the company would obtain from or, as the case may be, would have to pay to an independent person for—</p></intro><level class="para1" eId="section-85-6-a"><num>(a)</num><content><p>the transfer of all the company’s rights under the relationship in respect of amounts which at that time are not yet due and payable; and</p></content></level><level class="para1" eId="section-85-6-b"><num>(b)</num><content><p>the release of all the company’s liabilities under the relationship in respect of amounts which at that time are not yet due and payable.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-85-6-a"><num>(a)</num><content><p>the transfer of all the company’s rights under the relationship in respect of amounts which at that time are not yet due and payable; and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-85-6-b"><num>(b)</num><content><p>the release of all the company’s liabilities under the relationship in respect of amounts which at that time are not yet due and payable.</p></content></level>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-86"><num>86</num><heading>Application of accounting methods</heading><subsection eId="section-86-1"><num>(1)</num><content><p>This section has effect, subject to the following provisions of this Chapter, for the determination of which of the alternative authorised accounting methods that are available by virtue of section 85 above is to be used as respects the loan relationships of a company.</p></content></subsection><subsection eId="section-86-2"><num>(2)</num><content><p>Different methods may be used as respects different relationships or, as respects the same relationship, for different accounting periods or for different parts of the same accounting period.</p></content></subsection><subsection eId="section-86-3"><num>(3)</num><intro><p>If a basis of accounting which is or equates with an authorised accounting method is used as respects any loan relationship of a company in a company’s statutory accounts, then the method which is to be used for the purposes of this Chapter as respects that relationship for the accounting period, or part of a period, for which that basis is used in those accounts shall be—</p></intro><level class="para1" eId="section-86-3-a"><num>(a)</num><content><p>where the basis used in those accounts is an authorised accounting method, that method; and</p></content></level><level class="para1" eId="section-86-3-b"><num>(b)</num><content><p>where it is not, the authorised accounting method with which it equates.</p></content></level></subsection><subsection eId="section-86-4"><num>(4)</num><content><p>For any period or part of a period for which the authorised accounting method to be used as respects a loan relationship of a company is not determined under subsection (3) above, an authorised accruals basis of accounting shall be used for the purposes of this Chapter as respects that loan relationship.</p></content></subsection><subsection eId="section-86-5"><num>(5)</num><intro><p>For the purposes of this section (but subject to subsection (6) below)—</p></intro><level class="para1" eId="section-86-5-a"><num>(a)</num><content><p>a basis of accounting equates with an authorised accruals basis of accounting if it purports to allocate payments under a loan relationship to accounting periods according to when they are taken to accrue; and</p></content></level><level class="para1" eId="section-86-5-b"><num>(b)</num><intro><p>a basis of accounting equates with an authorised mark to market basis of accounting if (without equating with an authorised accruals basis of accounting) it purports in respect of a loan relationship—</p></intro><level class="para2" eId="section-86-5-b-i"><num>(i)</num><content><p>to produce credits or debits computed by reference to the determination, as at different times in an accounting period, of a fair value; and</p></content></level><level class="para2" eId="section-86-5-b-ii"><num>(ii)</num><content><p>to produce credits or debits relating to payments under that relationship according to when they become due and payable.</p></content></level></level></subsection><subsection eId="section-86-6"><num>(6)</num><intro><p>An accounting method which purports to make any such allocation of payments under a loan relationship as is mentioned in subsection (5)(a) above shall be taken for the purposes of this section to equate with an authorised mark to market basis of accounting (rather than with an authorised accruals basis of accounting) if—</p></intro><level class="para1" eId="section-86-6-a"><num>(a)</num><content><p>it purports to bring that relationship into account in each accounting period at a value which would be a fair value if the valuation were made on the basis that interest under the relationship were to be disregarded to the extent that it has already accrued; and</p></content></level><level class="para1" eId="section-86-6-b"><num>(b)</num><content><p>the credits and debits produced in the case of that relationship by that method (when it is properly applied) correspond, for all practical purposes, to the credits and debits produced in the case of that relationship, and for the same accounting period, by an authorised mark to market basis of accounting.</p></content></level></subsection><subsection eId="section-86-7"><num>(7)</num><content><p>In this section “fair value” has the same meaning as in section 85 above.</p></content></subsection><subsection eId="section-86-8"><num>(8)</num><intro><p>In this section “statutory accounts”, in relation to a company, means—</p></intro><level class="para1" eId="section-86-8-a"><num>(a)</num><content><p>any accounts relating to that company that are drawn up in accordance with any requirements of the <noteRef href="#m00054" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Companies Act 1985 or the <noteRef href="#m00055" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Companies (Northern Ireland) Order 1986 that apply in relation to that company;</p></content></level><level class="para1" eId="section-86-8-b"><num>(b)</num><content><p>any accounts relating to that company that are drawn up in accordance with any requirements of regulations under section 70 of the <noteRef href="#m00056" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Friendly Societies Act 1992 that apply in relation to that company;</p></content></level><level class="para1" eId="section-86-8-c"><num>(c)</num><content><p>any accounts relating to that company which are accounts to which Part I of Schedule 21C to the <noteRef href="#m00057" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Companies Act 1985 or Part I of Schedule 21D to that Act (companies with UK branches) applies;</p></content></level><level class="para1" eId="section-86-8-d"><num>(d)</num><intro><p>in the case of a company which—</p></intro><level class="para2" eId="section-86-8-d-i"><num>(i)</num><content><p>is not subject to any such requirements as are mentioned in paragraphs (a) or (b) above, and</p></content></level><level class="para2" eId="section-86-8-d-ii"><num>(ii)</num><content><p>is a company in whose case there are no accounts for the period in question that fall within paragraph (c) above,</p></content></level><wrapUp><p>any accounts relating to the company drawn up in accordance with requirements imposed in relation to that company under the law of its home State; and</p></wrapUp></level><level class="para1" eId="section-86-8-e"><num>(e)</num><intro><p>in the case of a company which—</p></intro><level class="para2" eId="section-86-8-e-i"><num>(i)</num><content><p>is not subject to any such requirements as are mentioned in paragraphs (a), (b) or (d) above, and</p></content></level><level class="para2" eId="section-86-8-e-ii"><num>(ii)</num><content><p>is a company in whose case there are no accounts for the period in question that fall within paragraph (c) above,</p></content></level><wrapUp><p>the accounts relating to the company that most closely correspond to the accounts which, in the case of a company formed and registered under the Companies Act 1985, are required under that Act.</p></wrapUp></level></subsection><subsection eId="section-86-9"><num>(9)</num><content><p>For the purposes of subsection (8) above the home State of a company is the country or territory under whose law the company is incorporated.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-86-1"><num>(1)</num><content><p>This section has effect, subject to the following provisions of this Chapter, for the determination of which of the alternative authorised accounting methods that are available by virtue of section 85 above is to be used as respects the loan relationships of a company.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-86-2"><num>(2)</num><content><p>Different methods may be used as respects different relationships or, as respects the same relationship, for different accounting periods or for different parts of the same accounting period.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-86-3"><num>(3)</num><intro><p>If a basis of accounting which is or equates with an authorised accounting method is used as respects any loan relationship of a company in a company’s statutory accounts, then the method which is to be used for the purposes of this Chapter as respects that relationship for the accounting period, or part of a period, for which that basis is used in those accounts shall be—</p></intro><level class="para1" eId="section-86-3-a"><num>(a)</num><content><p>where the basis used in those accounts is an authorised accounting method, that method; and</p></content></level><level class="para1" eId="section-86-3-b"><num>(b)</num><content><p>where it is not, the authorised accounting method with which it equates.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-86-3-a"><num>(a)</num><content><p>where the basis used in those accounts is an authorised accounting method, that method; and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-86-3-b"><num>(b)</num><content><p>where it is not, the authorised accounting method with which it equates.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-86-4"><num>(4)</num><content><p>For any period or part of a period for which the authorised accounting method to be used as respects a loan relationship of a company is not determined under subsection (3) above, an authorised accruals basis of accounting shall be used for the purposes of this Chapter as respects that loan relationship.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-86-5"><num>(5)</num><intro><p>For the purposes of this section (but subject to subsection (6) below)—</p></intro><level class="para1" eId="section-86-5-a"><num>(a)</num><content><p>a basis of accounting equates with an authorised accruals basis of accounting if it purports to allocate payments under a loan relationship to accounting periods according to when they are taken to accrue; and</p></content></level><level class="para1" eId="section-86-5-b"><num>(b)</num><intro><p>a basis of accounting equates with an authorised mark to market basis of accounting if (without equating with an authorised accruals basis of accounting) it purports in respect of a loan relationship—</p></intro><level class="para2" eId="section-86-5-b-i"><num>(i)</num><content><p>to produce credits or debits computed by reference to the determination, as at different times in an accounting period, of a fair value; and</p></content></level><level class="para2" eId="section-86-5-b-ii"><num>(ii)</num><content><p>to produce credits or debits relating to payments under that relationship according to when they become due and payable.</p></content></level></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-86-5-a"><num>(a)</num><content><p>a basis of accounting equates with an authorised accruals basis of accounting if it purports to allocate payments under a loan relationship to accounting periods according to when they are taken to accrue; and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-86-5-b"><num>(b)</num><intro><p>a basis of accounting equates with an authorised mark to market basis of accounting if (without equating with an authorised accruals basis of accounting) it purports in respect of a loan relationship—</p></intro><level class="para2" eId="section-86-5-b-i"><num>(i)</num><content><p>to produce credits or debits computed by reference to the determination, as at different times in an accounting period, of a fair value; and</p></content></level><level class="para2" eId="section-86-5-b-ii"><num>(ii)</num><content><p>to produce credits or debits relating to payments under that relationship according to when they become due and payable.</p></content></level></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-86-5-b-i"><num>(i)</num><content><p>to produce credits or debits computed by reference to the determination, as at different times in an accounting period, of a fair value; and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-86-5-b-ii"><num>(ii)</num><content><p>to produce credits or debits relating to payments under that relationship according to when they become due and payable.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-86-6"><num>(6)</num><intro><p>An accounting method which purports to make any such allocation of payments under a loan relationship as is mentioned in subsection (5)(a) above shall be taken for the purposes of this section to equate with an authorised mark to market basis of accounting (rather than with an authorised accruals basis of accounting) if—</p></intro><level class="para1" eId="section-86-6-a"><num>(a)</num><content><p>it purports to bring that relationship into account in each accounting period at a value which would be a fair value if the valuation were made on the basis that interest under the relationship were to be disregarded to the extent that it has already accrued; and</p></content></level><level class="para1" eId="section-86-6-b"><num>(b)</num><content><p>the credits and debits produced in the case of that relationship by that method (when it is properly applied) correspond, for all practical purposes, to the credits and debits produced in the case of that relationship, and for the same accounting period, by an authorised mark to market basis of accounting.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-86-6-a"><num>(a)</num><content><p>it purports to bring that relationship into account in each accounting period at a value which would be a fair value if the valuation were made on the basis that interest under the relationship were to be disregarded to the extent that it has already accrued; and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-86-6-b"><num>(b)</num><content><p>the credits and debits produced in the case of that relationship by that method (when it is properly applied) correspond, for all practical purposes, to the credits and debits produced in the case of that relationship, and for the same accounting period, by an authorised mark to market basis of accounting.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-86-7"><num>(7)</num><content><p>In this section “fair value” has the same meaning as in section 85 above.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-86-8"><num>(8)</num><intro><p>In this section “statutory accounts”, in relation to a company, means—</p></intro><level class="para1" eId="section-86-8-a"><num>(a)</num><content><p>any accounts relating to that company that are drawn up in accordance with any requirements of the <noteRef href="#m00054" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Companies Act 1985 or the <noteRef href="#m00055" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Companies (Northern Ireland) Order 1986 that apply in relation to that company;</p></content></level><level class="para1" eId="section-86-8-b"><num>(b)</num><content><p>any accounts relating to that company that are drawn up in accordance with any requirements of regulations under section 70 of the <noteRef href="#m00056" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Friendly Societies Act 1992 that apply in relation to that company;</p></content></level><level class="para1" eId="section-86-8-c"><num>(c)</num><content><p>any accounts relating to that company which are accounts to which Part I of Schedule 21C to the <noteRef href="#m00057" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Companies Act 1985 or Part I of Schedule 21D to that Act (companies with UK branches) applies;</p></content></level><level class="para1" eId="section-86-8-d"><num>(d)</num><intro><p>in the case of a company which—</p></intro><level class="para2" eId="section-86-8-d-i"><num>(i)</num><content><p>is not subject to any such requirements as are mentioned in paragraphs (a) or (b) above, and</p></content></level><level class="para2" eId="section-86-8-d-ii"><num>(ii)</num><content><p>is a company in whose case there are no accounts for the period in question that fall within paragraph (c) above,</p></content></level><wrapUp><p>any accounts relating to the company drawn up in accordance with requirements imposed in relation to that company under the law of its home State; and</p></wrapUp></level><level class="para1" eId="section-86-8-e"><num>(e)</num><intro><p>in the case of a company which—</p></intro><level class="para2" eId="section-86-8-e-i"><num>(i)</num><content><p>is not subject to any such requirements as are mentioned in paragraphs (a), (b) or (d) above, and</p></content></level><level class="para2" eId="section-86-8-e-ii"><num>(ii)</num><content><p>is a company in whose case there are no accounts for the period in question that fall within paragraph (c) above,</p></content></level><wrapUp><p>the accounts relating to the company that most closely correspond to the accounts which, in the case of a company formed and registered under the Companies Act 1985, are required under that Act.</p></wrapUp></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-86-8-a"><num>(a)</num><content><p>any accounts relating to that company that are drawn up in accordance with any requirements of the <noteRef href="#m00054" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Companies Act 1985 or the <noteRef href="#m00055" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Companies (Northern Ireland) Order 1986 that apply in relation to that company;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-86-8-b"><num>(b)</num><content><p>any accounts relating to that company that are drawn up in accordance with any requirements of regulations under section 70 of the <noteRef href="#m00056" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Friendly Societies Act 1992 that apply in relation to that company;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-86-8-c"><num>(c)</num><content><p>any accounts relating to that company which are accounts to which Part I of Schedule 21C to the <noteRef href="#m00057" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Companies Act 1985 or Part I of Schedule 21D to that Act (companies with UK branches) applies;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-86-8-d"><num>(d)</num><intro><p>in the case of a company which—</p></intro><level class="para2" eId="section-86-8-d-i"><num>(i)</num><content><p>is not subject to any such requirements as are mentioned in paragraphs (a) or (b) above, and</p></content></level><level class="para2" eId="section-86-8-d-ii"><num>(ii)</num><content><p>is a company in whose case there are no accounts for the period in question that fall within paragraph (c) above,</p></content></level><wrapUp><p>any accounts relating to the company drawn up in accordance with requirements imposed in relation to that company under the law of its home State; and</p></wrapUp></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-86-8-d-i"><num>(i)</num><content><p>is not subject to any such requirements as are mentioned in paragraphs (a) or (b) above, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-86-8-d-ii"><num>(ii)</num><content><p>is a company in whose case there are no accounts for the period in question that fall within paragraph (c) above,</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-86-8-e"><num>(e)</num><intro><p>in the case of a company which—</p></intro><level class="para2" eId="section-86-8-e-i"><num>(i)</num><content><p>is not subject to any such requirements as are mentioned in paragraphs (a), (b) or (d) above, and</p></content></level><level class="para2" eId="section-86-8-e-ii"><num>(ii)</num><content><p>is a company in whose case there are no accounts for the period in question that fall within paragraph (c) above,</p></content></level><wrapUp><p>the accounts relating to the company that most closely correspond to the accounts which, in the case of a company formed and registered under the Companies Act 1985, are required under that Act.</p></wrapUp></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-86-8-e-i"><num>(i)</num><content><p>is not subject to any such requirements as are mentioned in paragraphs (a), (b) or (d) above, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-86-8-e-ii"><num>(ii)</num><content><p>is a company in whose case there are no accounts for the period in question that fall within paragraph (c) above,</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-86-9"><num>(9)</num><content><p>For the purposes of subsection (8) above the home State of a company is the country or territory under whose law the company is incorporated.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-87"><num>87</num><heading>Accounting method where parties have a connection</heading><subsection eId="section-87-1"><num>(1)</num><intro><p>This section applies in the case of a loan relationship of a company where for any accounting period there is a connection between the company and—</p></intro><level class="para1" eId="section-87-1-a"><num>(a)</num><content><p>in the case of a debtor relationship of the company, a person standing in the position of a creditor as respects the debt in question; or</p></content></level><level class="para1" eId="section-87-1-b"><num>(b)</num><content><p>in the case of a creditor relationship of the company, a person standing in the position of a debtor as respects that debt.</p></content></level></subsection><subsection eId="section-87-2"><num>(2)</num><content><p>The only accounting method authorised for the purposes of this Chapter for use by the company as respects the loan relationship shall be an authorised accruals basis of accounting.</p></content></subsection><subsection eId="section-87-3"><num>(3)</num><intro><p>For the purposes of this section there is a connection between a company and another person for an accounting period if (subject to subsection (4) and section 88 below)—</p></intro><level class="para1" eId="section-87-3-a"><num>(a)</num><content><p>the other person is a company and there is a time in that period, or in the two years before the beginning of that period, when one of the companies has had control of the other;</p></content></level><level class="para1" eId="section-87-3-b"><num>(b)</num><content><p>the other person is a company and there is a time in that period, or in those two years, when both the companies have been under the control of the same person; or</p></content></level><level class="para1" eId="section-87-3-c"><num>(c)</num><content><p>there is a time in that accounting period, or in those two years, when the company was a close company and the other person was a participator in that company or the associate of a person who was such a participator at that time.</p></content></level></subsection><subsection eId="section-87-4"><num>(4)</num><content><p>Two companies which have at any time been under the control of the same person shall not, by virtue of that fact, be taken for the purposes of this section to be companies between whom there is a connection if the person was the Crown, a Minister of the Crown, a government department, a Northern Ireland department, a foreign sovereign power or an international organisation.</p></content></subsection><subsection eId="section-87-5"><num>(5)</num><content><p>The references in subsection (1) above to a person who stands in the position of a creditor or debtor as respects a loan relationship include references to a person who indirectly stands in that position by reference to a series of loan relationships.</p></content></subsection><subsection eId="section-87-6"><num>(6)</num><content><p>Subsections (2) to (6) of section 416 of the Taxes Act 1988 (meaning of “control”) shall apply for the purposes of this section as they apply for the purposes of Part XI of that Act.</p></content></subsection><subsection eId="section-87-7"><num>(7)</num><content><p>Subject to subsection (8) below, in this section “participator” and “associate” have the meanings given for the purposes of Part XI of the Taxes Act 1988 by section 417 of that Act.</p></content></subsection><subsection eId="section-87-8"><num>(8)</num><content><p>A person shall not for the purposes of this section be regarded as a participator in relation to a company by reason only that he is a loan creditor of the company.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-87-1"><num>(1)</num><intro><p>This section applies in the case of a loan relationship of a company where for any accounting period there is a connection between the company and—</p></intro><level class="para1" eId="section-87-1-a"><num>(a)</num><content><p>in the case of a debtor relationship of the company, a person standing in the position of a creditor as respects the debt in question; or</p></content></level><level class="para1" eId="section-87-1-b"><num>(b)</num><content><p>in the case of a creditor relationship of the company, a person standing in the position of a debtor as respects that debt.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-87-1-a"><num>(a)</num><content><p>in the case of a debtor relationship of the company, a person standing in the position of a creditor as respects the debt in question; or</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-87-1-b"><num>(b)</num><content><p>in the case of a creditor relationship of the company, a person standing in the position of a debtor as respects that debt.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-87-2"><num>(2)</num><content><p>The only accounting method authorised for the purposes of this Chapter for use by the company as respects the loan relationship shall be an authorised accruals basis of accounting.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-87-3"><num>(3)</num><intro><p>For the purposes of this section there is a connection between a company and another person for an accounting period if (subject to subsection (4) and section 88 below)—</p></intro><level class="para1" eId="section-87-3-a"><num>(a)</num><content><p>the other person is a company and there is a time in that period, or in the two years before the beginning of that period, when one of the companies has had control of the other;</p></content></level><level class="para1" eId="section-87-3-b"><num>(b)</num><content><p>the other person is a company and there is a time in that period, or in those two years, when both the companies have been under the control of the same person; or</p></content></level><level class="para1" eId="section-87-3-c"><num>(c)</num><content><p>there is a time in that accounting period, or in those two years, when the company was a close company and the other person was a participator in that company or the associate of a person who was such a participator at that time.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-87-3-a"><num>(a)</num><content><p>the other person is a company and there is a time in that period, or in the two years before the beginning of that period, when one of the companies has had control of the other;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-87-3-b"><num>(b)</num><content><p>the other person is a company and there is a time in that period, or in those two years, when both the companies have been under the control of the same person; or</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-87-3-c"><num>(c)</num><content><p>there is a time in that accounting period, or in those two years, when the company was a close company and the other person was a participator in that company or the associate of a person who was such a participator at that time.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-87-4"><num>(4)</num><content><p>Two companies which have at any time been under the control of the same person shall not, by virtue of that fact, be taken for the purposes of this section to be companies between whom there is a connection if the person was the Crown, a Minister of the Crown, a government department, a Northern Ireland department, a foreign sovereign power or an international organisation.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-87-5"><num>(5)</num><content><p>The references in subsection (1) above to a person who stands in the position of a creditor or debtor as respects a loan relationship include references to a person who indirectly stands in that position by reference to a series of loan relationships.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-87-6"><num>(6)</num><content><p>Subsections (2) to (6) of section 416 of the Taxes Act 1988 (meaning of “control”) shall apply for the purposes of this section as they apply for the purposes of Part XI of that Act.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-87-7"><num>(7)</num><content><p>Subject to subsection (8) below, in this section “participator” and “associate” have the meanings given for the purposes of Part XI of the Taxes Act 1988 by section 417 of that Act.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-87-8"><num>(8)</num><content><p>A person shall not for the purposes of this section be regarded as a participator in relation to a company by reason only that he is a loan creditor of the company.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-88"><num>88</num><heading>Exemption from section 87 in certain cases</heading><subsection eId="section-88-1"><num>(1)</num><content><p>Subject to subsection (5) below, where a creditor relationship of a company is one to which that company is a party in any accounting period in exempt circumstances, any connection for that accounting period between the company and a person who stands in the position of a debtor as respects the debt shall be disregarded for the purposes of section 87 above.</p></content></subsection><subsection eId="section-88-2"><num>(2)</num><intro><p>A company having a creditor relationship in any accounting period shall, for that period, be taken for the purposes of this section to be a party to that relationship in exempt circumstances if—</p></intro><level class="para1" eId="section-88-2-a"><num>(a)</num><content><p>the company, in the course of carrying on any activities forming an integral part of a trade carried on by that company in that period, disposes of or acquires assets representing creditor relationships;</p></content></level><level class="para1" eId="section-88-2-b"><num>(b)</num><content><p>that period is one for which the company uses an authorised mark to market basis of accounting as respects all the creditor relationships represented by assets acquired in the course of those activities;</p></content></level><level class="para1" eId="section-88-2-c"><num>(c)</num><content><p>the asset representing the creditor relationship in question was acquired in the course of those activities;</p></content></level><level class="para1" eId="section-88-2-d"><num>(d)</num><intro><p>that asset is either—</p></intro><level class="para2" eId="section-88-2-d-i"><num>(i)</num><content><p>listed on a recognised stock exchange at the end of that period; or</p></content></level><level class="para2" eId="section-88-2-d-ii"><num>(ii)</num><content><p>a security the redemption of which must occur within twelve months of its issue;</p></content></level></level><level class="para1" eId="section-88-2-e"><num>(e)</num><content><p>there is a time in that period when assets of the same kind as the asset representing the loan relationship in question are in the beneficial ownership of persons other than the company; and</p></content></level><level class="para1" eId="section-88-2-f"><num>(f)</num><content><p>there is not more than three months, in aggregate, in that accounting period during which the equivalent of 30 per cent. or more of the assets of that kind is in the beneficial ownership of connected persons.</p></content></level></subsection><subsection eId="section-88-3"><num>(3)</num><intro><p>An insurance company carrying on basic life assurance and general annuity business and having a creditor relationship in any accounting period shall, for that period, be taken for the purposes of this section to be a party to that relationship in exempt circumstances if—</p></intro><level class="para1" eId="section-88-3-a"><num>(a)</num><content><p>assets of the company representing any of its creditor relationships are linked for that period to its basic life assurance and general annuity business;</p></content></level><level class="para1" eId="section-88-3-b"><num>(b)</num><content><p>that period is one for which the company uses an authorised mark to market basis of accounting as respects all the creditor relationships of the company represented by assets that are so linked;</p></content></level><level class="para1" eId="section-88-3-c"><num>(c)</num><content><p>the asset representing the creditor relationship in question is so linked;</p></content></level><level class="para1" eId="section-88-3-d"><num>(d)</num><intro><p>that asset is either—</p></intro><level class="para2" eId="section-88-3-d-i"><num>(i)</num><content><p>listed on a recognised stock exchange at the end of that period; or</p></content></level><level class="para2" eId="section-88-3-d-ii"><num>(ii)</num><content><p>a security the redemption of which must occur within twelve months of its issue;</p></content></level></level><level class="para1" eId="section-88-3-e"><num>(e)</num><content><p>there is a time in that period when assets of the same kind as the asset representing the creditor relationship in question are in the beneficial ownership of persons other than the company; and</p></content></level><level class="para1" eId="section-88-3-f"><num>(f)</num><content><p>there is not more than three months, in aggregate, in that accounting period during which the equivalent of 30 per cent. or more of the assets of that kind is in the beneficial ownership of connected persons.</p></content></level></subsection><subsection eId="section-88-4"><num>(4)</num><intro><p>For the purposes of subsections (2) and (3) above—</p></intro><level class="para1" eId="section-88-4-a"><num>(a)</num><content><p>assets shall be taken to be of the same kind where they are treated as being of the same kind by the practice of any recognised stock exchange, or would be so treated if dealt with on such a stock exchange; and</p></content></level><level class="para1" eId="section-88-4-b"><num>(b)</num><intro><p>a connected person has the beneficial ownership of an asset wherever there is, or (apart from this section) would be, a connection (within the meaning of section 87 above) between—</p></intro><level class="para2" eId="section-88-4-b-i"><num>(i)</num><content><p>the person who has the beneficial ownership of the asset, and</p></content></level><level class="para2" eId="section-88-4-b-ii"><num>(ii)</num><content><p>a person who stands in the position of a debtor as respects the money debt by reference to which any loan relationship represented by that asset subsists.</p></content></level></level></subsection><subsection eId="section-88-5"><num>(5)</num><intro><p>Where for any accounting period—</p></intro><level class="para1" eId="section-88-5-a"><num>(a)</num><content><p>subsection (1) above has effect in the case of a creditor relationship of a company, and</p></content></level><level class="para1" eId="section-88-5-b"><num>(b)</num><content><p>the person who stands in the position of a debtor as respects the debt in question is also a company,</p></content></level><wrapUp><p>that subsection shall not apply for determining, for the purposes of so much of section 87 above as relates to the corresponding debtor relationship, whether there is a connection between the two companies.</p></wrapUp></subsection><subsection eId="section-88-6"><num>(6)</num><content><p>Subsection (5) of section 87 above shall apply for the purposes of this section as it applies for the purposes of that section.</p></content></subsection><subsection eId="section-88-7"><num>(7)</num><content><p>In this section “basic life assurance and general annuity business” and “insurance company” have the same meanings as in Chapter I of Part XII of the Taxes Act 1988, and section 432ZA of that Act (linked assets) shall apply for the purposes of this section as it applies for the purposes of that Chapter.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-88-1"><num>(1)</num><content><p>Subject to subsection (5) below, where a creditor relationship of a company is one to which that company is a party in any accounting period in exempt circumstances, any connection for that accounting period between the company and a person who stands in the position of a debtor as respects the debt shall be disregarded for the purposes of section 87 above.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-88-2"><num>(2)</num><intro><p>A company having a creditor relationship in any accounting period shall, for that period, be taken for the purposes of this section to be a party to that relationship in exempt circumstances if—</p></intro><level class="para1" eId="section-88-2-a"><num>(a)</num><content><p>the company, in the course of carrying on any activities forming an integral part of a trade carried on by that company in that period, disposes of or acquires assets representing creditor relationships;</p></content></level><level class="para1" eId="section-88-2-b"><num>(b)</num><content><p>that period is one for which the company uses an authorised mark to market basis of accounting as respects all the creditor relationships represented by assets acquired in the course of those activities;</p></content></level><level class="para1" eId="section-88-2-c"><num>(c)</num><content><p>the asset representing the creditor relationship in question was acquired in the course of those activities;</p></content></level><level class="para1" eId="section-88-2-d"><num>(d)</num><intro><p>that asset is either—</p></intro><level class="para2" eId="section-88-2-d-i"><num>(i)</num><content><p>listed on a recognised stock exchange at the end of that period; or</p></content></level><level class="para2" eId="section-88-2-d-ii"><num>(ii)</num><content><p>a security the redemption of which must occur within twelve months of its issue;</p></content></level></level><level class="para1" eId="section-88-2-e"><num>(e)</num><content><p>there is a time in that period when assets of the same kind as the asset representing the loan relationship in question are in the beneficial ownership of persons other than the company; and</p></content></level><level class="para1" eId="section-88-2-f"><num>(f)</num><content><p>there is not more than three months, in aggregate, in that accounting period during which the equivalent of 30 per cent. or more of the assets of that kind is in the beneficial ownership of connected persons.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-88-2-a"><num>(a)</num><content><p>the company, in the course of carrying on any activities forming an integral part of a trade carried on by that company in that period, disposes of or acquires assets representing creditor relationships;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-88-2-b"><num>(b)</num><content><p>that period is one for which the company uses an authorised mark to market basis of accounting as respects all the creditor relationships represented by assets acquired in the course of those activities;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-88-2-c"><num>(c)</num><content><p>the asset representing the creditor relationship in question was acquired in the course of those activities;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-88-2-d"><num>(d)</num><intro><p>that asset is either—</p></intro><level class="para2" eId="section-88-2-d-i"><num>(i)</num><content><p>listed on a recognised stock exchange at the end of that period; or</p></content></level><level class="para2" eId="section-88-2-d-ii"><num>(ii)</num><content><p>a security the redemption of which must occur within twelve months of its issue;</p></content></level></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-88-2-d-i"><num>(i)</num><content><p>listed on a recognised stock exchange at the end of that period; or</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-88-2-d-ii"><num>(ii)</num><content><p>a security the redemption of which must occur within twelve months of its issue;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-88-2-e"><num>(e)</num><content><p>there is a time in that period when assets of the same kind as the asset representing the loan relationship in question are in the beneficial ownership of persons other than the company; and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-88-2-f"><num>(f)</num><content><p>there is not more than three months, in aggregate, in that accounting period during which the equivalent of 30 per cent. or more of the assets of that kind is in the beneficial ownership of connected persons.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-88-3"><num>(3)</num><intro><p>An insurance company carrying on basic life assurance and general annuity business and having a creditor relationship in any accounting period shall, for that period, be taken for the purposes of this section to be a party to that relationship in exempt circumstances if—</p></intro><level class="para1" eId="section-88-3-a"><num>(a)</num><content><p>assets of the company representing any of its creditor relationships are linked for that period to its basic life assurance and general annuity business;</p></content></level><level class="para1" eId="section-88-3-b"><num>(b)</num><content><p>that period is one for which the company uses an authorised mark to market basis of accounting as respects all the creditor relationships of the company represented by assets that are so linked;</p></content></level><level class="para1" eId="section-88-3-c"><num>(c)</num><content><p>the asset representing the creditor relationship in question is so linked;</p></content></level><level class="para1" eId="section-88-3-d"><num>(d)</num><intro><p>that asset is either—</p></intro><level class="para2" eId="section-88-3-d-i"><num>(i)</num><content><p>listed on a recognised stock exchange at the end of that period; or</p></content></level><level class="para2" eId="section-88-3-d-ii"><num>(ii)</num><content><p>a security the redemption of which must occur within twelve months of its issue;</p></content></level></level><level class="para1" eId="section-88-3-e"><num>(e)</num><content><p>there is a time in that period when assets of the same kind as the asset representing the creditor relationship in question are in the beneficial ownership of persons other than the company; and</p></content></level><level class="para1" eId="section-88-3-f"><num>(f)</num><content><p>there is not more than three months, in aggregate, in that accounting period during which the equivalent of 30 per cent. or more of the assets of that kind is in the beneficial ownership of connected persons.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-88-3-a"><num>(a)</num><content><p>assets of the company representing any of its creditor relationships are linked for that period to its basic life assurance and general annuity business;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-88-3-b"><num>(b)</num><content><p>that period is one for which the company uses an authorised mark to market basis of accounting as respects all the creditor relationships of the company represented by assets that are so linked;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-88-3-c"><num>(c)</num><content><p>the asset representing the creditor relationship in question is so linked;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-88-3-d"><num>(d)</num><intro><p>that asset is either—</p></intro><level class="para2" eId="section-88-3-d-i"><num>(i)</num><content><p>listed on a recognised stock exchange at the end of that period; or</p></content></level><level class="para2" eId="section-88-3-d-ii"><num>(ii)</num><content><p>a security the redemption of which must occur within twelve months of its issue;</p></content></level></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-88-3-d-i"><num>(i)</num><content><p>listed on a recognised stock exchange at the end of that period; or</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-88-3-d-ii"><num>(ii)</num><content><p>a security the redemption of which must occur within twelve months of its issue;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-88-3-e"><num>(e)</num><content><p>there is a time in that period when assets of the same kind as the asset representing the creditor relationship in question are in the beneficial ownership of persons other than the company; and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-88-3-f"><num>(f)</num><content><p>there is not more than three months, in aggregate, in that accounting period during which the equivalent of 30 per cent. or more of the assets of that kind is in the beneficial ownership of connected persons.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-88-4"><num>(4)</num><intro><p>For the purposes of subsections (2) and (3) above—</p></intro><level class="para1" eId="section-88-4-a"><num>(a)</num><content><p>assets shall be taken to be of the same kind where they are treated as being of the same kind by the practice of any recognised stock exchange, or would be so treated if dealt with on such a stock exchange; and</p></content></level><level class="para1" eId="section-88-4-b"><num>(b)</num><intro><p>a connected person has the beneficial ownership of an asset wherever there is, or (apart from this section) would be, a connection (within the meaning of section 87 above) between—</p></intro><level class="para2" eId="section-88-4-b-i"><num>(i)</num><content><p>the person who has the beneficial ownership of the asset, and</p></content></level><level class="para2" eId="section-88-4-b-ii"><num>(ii)</num><content><p>a person who stands in the position of a debtor as respects the money debt by reference to which any loan relationship represented by that asset subsists.</p></content></level></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-88-4-a"><num>(a)</num><content><p>assets shall be taken to be of the same kind where they are treated as being of the same kind by the practice of any recognised stock exchange, or would be so treated if dealt with on such a stock exchange; and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-88-4-b"><num>(b)</num><intro><p>a connected person has the beneficial ownership of an asset wherever there is, or (apart from this section) would be, a connection (within the meaning of section 87 above) between—</p></intro><level class="para2" eId="section-88-4-b-i"><num>(i)</num><content><p>the person who has the beneficial ownership of the asset, and</p></content></level><level class="para2" eId="section-88-4-b-ii"><num>(ii)</num><content><p>a person who stands in the position of a debtor as respects the money debt by reference to which any loan relationship represented by that asset subsists.</p></content></level></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-88-4-b-i"><num>(i)</num><content><p>the person who has the beneficial ownership of the asset, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-88-4-b-ii"><num>(ii)</num><content><p>a person who stands in the position of a debtor as respects the money debt by reference to which any loan relationship represented by that asset subsists.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-88-5"><num>(5)</num><intro><p>Where for any accounting period—</p></intro><level class="para1" eId="section-88-5-a"><num>(a)</num><content><p>subsection (1) above has effect in the case of a creditor relationship of a company, and</p></content></level><level class="para1" eId="section-88-5-b"><num>(b)</num><content><p>the person who stands in the position of a debtor as respects the debt in question is also a company,</p></content></level><wrapUp><p>that subsection shall not apply for determining, for the purposes of so much of section 87 above as relates to the corresponding debtor relationship, whether there is a connection between the two companies.</p></wrapUp></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-88-5-a"><num>(a)</num><content><p>subsection (1) above has effect in the case of a creditor relationship of a company, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-88-5-b"><num>(b)</num><content><p>the person who stands in the position of a debtor as respects the debt in question is also a company,</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-88-6"><num>(6)</num><content><p>Subsection (5) of section 87 above shall apply for the purposes of this section as it applies for the purposes of that section.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-88-7"><num>(7)</num><content><p>In this section “basic life assurance and general annuity business” and “insurance company” have the same meanings as in Chapter I of Part XII of the Taxes Act 1988, and section 432ZA of that Act (linked assets) shall apply for the purposes of this section as it applies for the purposes of that Chapter.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-89"><num>89</num><heading>Inconsistent application of accounting methods</heading><subsection eId="section-89-1"><num>(1)</num><content><p>Where there is any inconsistency or other material difference between the way in which any authorised accounting method is applied as respects the same loan relationship in successive accounting periods, a balancing credit or balancing debit shall be brought into account in the second of those periods (“the second period”).</p></content></subsection><subsection eId="section-89-2"><num>(2)</num><intro><p>The amount of the balancing credit or debit shall be computed as respects the relationship in question by—</p></intro><level class="para1" eId="section-89-2-a"><num>(a)</num><content><p>taking the amount given by subsection (3) below and the amount given by subsection (4) below; and</p></content></level><level class="para1" eId="section-89-2-b"><num>(b)</num><content><p>then aggregating those amounts (treating any debit as a negative amount) to produce a net credit or net debit.</p></content></level></subsection><subsection eId="section-89-3"><num>(3)</num><intro><p>The amount given by this subsection is whichever of the following is applicable—</p></intro><level class="para1" eId="section-89-3-a"><num>(a)</num><intro><p>a debit equal to the amount (if any) by which the first of the following amounts exceeds the second, that is to say—</p></intro><level class="para2" eId="section-89-3-a-i"><num>(i)</num><content><p>the aggregate of the credits actually brought into account for all previous periods in which the accounting method was used; and</p></content></level><level class="para2" eId="section-89-3-a-ii"><num>(ii)</num><content><p>the aggregate of the credits that would have been brought into account if that method had been applied in those periods in the same way as it was applied in the second period;</p></content></level></level><level class="para1" eId="section-89-3-b"><num>(b)</num><content><p>a credit equal to the amount (if any) by which the second aggregate mentioned in paragraph (a) above exceeds the first; or</p></content></level><level class="para1" eId="section-89-3-c"><num>(c)</num><content><p>if both those aggregates are the same, nil.</p></content></level></subsection><subsection eId="section-89-4"><num>(4)</num><intro><p>The amount given by this subsection is whichever of the following is applicable—</p></intro><level class="para1" eId="section-89-4-a"><num>(a)</num><intro><p>a credit equal to the amount (if any) by which the first of the following amounts exceeds the second, that is to say—</p></intro><level class="para2" eId="section-89-4-a-i"><num>(i)</num><content><p>the aggregate of the debits actually brought into account for all previous periods in which the accounting method was used; and</p></content></level><level class="para2" eId="section-89-4-a-ii"><num>(ii)</num><content><p>the aggregate of the debits that would have been brought into account if that method had been applied in those periods in the same way as it was applied in the second period;</p></content></level></level><level class="para1" eId="section-89-4-b"><num>(b)</num><content><p>a debit equal to the amount (if any) by which the second aggregate mentioned in paragraph (a) above exceeds the first; or</p></content></level><level class="para1" eId="section-89-4-c"><num>(c)</num><content><p>if both those aggregates are the same, nil.</p></content></level></subsection><subsection eId="section-89-5"><num>(5)</num><content><p>In this section “previous period” means any accounting period before the second period.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-89-1"><num>(1)</num><content><p>Where there is any inconsistency or other material difference between the way in which any authorised accounting method is applied as respects the same loan relationship in successive accounting periods, a balancing credit or balancing debit shall be brought into account in the second of those periods (“the second period”).</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-89-2"><num>(2)</num><intro><p>The amount of the balancing credit or debit shall be computed as respects the relationship in question by—</p></intro><level class="para1" eId="section-89-2-a"><num>(a)</num><content><p>taking the amount given by subsection (3) below and the amount given by subsection (4) below; and</p></content></level><level class="para1" eId="section-89-2-b"><num>(b)</num><content><p>then aggregating those amounts (treating any debit as a negative amount) to produce a net credit or net debit.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-89-2-a"><num>(a)</num><content><p>taking the amount given by subsection (3) below and the amount given by subsection (4) below; and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-89-2-b"><num>(b)</num><content><p>then aggregating those amounts (treating any debit as a negative amount) to produce a net credit or net debit.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-89-3"><num>(3)</num><intro><p>The amount given by this subsection is whichever of the following is applicable—</p></intro><level class="para1" eId="section-89-3-a"><num>(a)</num><intro><p>a debit equal to the amount (if any) by which the first of the following amounts exceeds the second, that is to say—</p></intro><level class="para2" eId="section-89-3-a-i"><num>(i)</num><content><p>the aggregate of the credits actually brought into account for all previous periods in which the accounting method was used; and</p></content></level><level class="para2" eId="section-89-3-a-ii"><num>(ii)</num><content><p>the aggregate of the credits that would have been brought into account if that method had been applied in those periods in the same way as it was applied in the second period;</p></content></level></level><level class="para1" eId="section-89-3-b"><num>(b)</num><content><p>a credit equal to the amount (if any) by which the second aggregate mentioned in paragraph (a) above exceeds the first; or</p></content></level><level class="para1" eId="section-89-3-c"><num>(c)</num><content><p>if both those aggregates are the same, nil.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-89-3-a"><num>(a)</num><intro><p>a debit equal to the amount (if any) by which the first of the following amounts exceeds the second, that is to say—</p></intro><level class="para2" eId="section-89-3-a-i"><num>(i)</num><content><p>the aggregate of the credits actually brought into account for all previous periods in which the accounting method was used; and</p></content></level><level class="para2" eId="section-89-3-a-ii"><num>(ii)</num><content><p>the aggregate of the credits that would have been brought into account if that method had been applied in those periods in the same way as it was applied in the second period;</p></content></level></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-89-3-a-i"><num>(i)</num><content><p>the aggregate of the credits actually brought into account for all previous periods in which the accounting method was used; and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-89-3-a-ii"><num>(ii)</num><content><p>the aggregate of the credits that would have been brought into account if that method had been applied in those periods in the same way as it was applied in the second period;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-89-3-b"><num>(b)</num><content><p>a credit equal to the amount (if any) by which the second aggregate mentioned in paragraph (a) above exceeds the first; or</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-89-3-c"><num>(c)</num><content><p>if both those aggregates are the same, nil.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-89-4"><num>(4)</num><intro><p>The amount given by this subsection is whichever of the following is applicable—</p></intro><level class="para1" eId="section-89-4-a"><num>(a)</num><intro><p>a credit equal to the amount (if any) by which the first of the following amounts exceeds the second, that is to say—</p></intro><level class="para2" eId="section-89-4-a-i"><num>(i)</num><content><p>the aggregate of the debits actually brought into account for all previous periods in which the accounting method was used; and</p></content></level><level class="para2" eId="section-89-4-a-ii"><num>(ii)</num><content><p>the aggregate of the debits that would have been brought into account if that method had been applied in those periods in the same way as it was applied in the second period;</p></content></level></level><level class="para1" eId="section-89-4-b"><num>(b)</num><content><p>a debit equal to the amount (if any) by which the second aggregate mentioned in paragraph (a) above exceeds the first; or</p></content></level><level class="para1" eId="section-89-4-c"><num>(c)</num><content><p>if both those aggregates are the same, nil.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-89-4-a"><num>(a)</num><intro><p>a credit equal to the amount (if any) by which the first of the following amounts exceeds the second, that is to say—</p></intro><level class="para2" eId="section-89-4-a-i"><num>(i)</num><content><p>the aggregate of the debits actually brought into account for all previous periods in which the accounting method was used; and</p></content></level><level class="para2" eId="section-89-4-a-ii"><num>(ii)</num><content><p>the aggregate of the debits that would have been brought into account if that method had been applied in those periods in the same way as it was applied in the second period;</p></content></level></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-89-4-a-i"><num>(i)</num><content><p>the aggregate of the debits actually brought into account for all previous periods in which the accounting method was used; and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-89-4-a-ii"><num>(ii)</num><content><p>the aggregate of the debits that would have been brought into account if that method had been applied in those periods in the same way as it was applied in the second period;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-89-4-b"><num>(b)</num><content><p>a debit equal to the amount (if any) by which the second aggregate mentioned in paragraph (a) above exceeds the first; or</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-89-4-c"><num>(c)</num><content><p>if both those aggregates are the same, nil.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-89-5"><num>(5)</num><content><p>In this section “previous period” means any accounting period before the second period.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-90"><num>90</num><heading>Changes of accounting method</heading><subsection eId="section-90-1"><num>(1)</num><content><p>This section applies where different authorised accounting methods are used for the purposes of this Chapter as respects the same loan relationship for different parts of the same accounting period or for successive accounting periods.</p></content></subsection><subsection eId="section-90-2"><num>(2)</num><intro><p>Where, in the case of any loan relationship, the use of any authorised accounting method is superseded in the course of any accounting period by the use of another—</p></intro><level class="para1" eId="section-90-2-a"><num>(a)</num><content><p>the assumptions specified in subsection (4) below shall be made;</p></content></level><level class="para1" eId="section-90-2-b"><num>(b)</num><content><p>each method shall be applied on those assumptions as respects the part of the period for which it is used; and</p></content></level><level class="para1" eId="section-90-2-c"><num>(c)</num><content><p>the credits and debits given by the application of those methods on those assumptions shall be brought into account in the accounting period in which the change of method takes effect.</p></content></level></subsection><subsection eId="section-90-3"><num>(3)</num><intro><p>Where, in the case of any loan relationship, the use of any authorised accounting method is superseded as from the beginning of an accounting period by the use of another—</p></intro><level class="para1" eId="section-90-3-a"><num>(a)</num><intro><p>a net credit or debit shall be computed (treating any debit used in the computation as a negative amount) by—</p></intro><level class="para2" eId="section-90-3-a-i"><num>(i)</num><content><p>aggregating the credits and debits which, on the assumptions specified in subsection (4) below, would have been given in respect of that relationship for the successive accounting periods by the use for each period of the accounting method actually used for that period;</p></content></level><level class="para2" eId="section-90-3-a-ii"><num>(ii)</num><content><p>aggregating the credits and debits so given without the making of those assumptions; and</p></content></level><level class="para2" eId="section-90-3-a-iii"><num>(iii)</num><content><p>subtracting the second aggregate from the first;</p></content></level><wrapUp><p>and</p></wrapUp></level><level class="para1" eId="section-90-3-b"><num>(b)</num><content><p>the net credit or debit shall be brought into account for the purposes of this Chapter in the accounting period as from the beginning of which the change of method takes effect.</p></content></level></subsection><subsection eId="section-90-4"><num>(4)</num><intro><p>The assumptions mentioned in subsections (2) and (3) above are—</p></intro><level class="para1" eId="section-90-4-a"><num>(a)</num><content><p>that the company ceased to be a party to the relationship immediately before the end of the period, or part of a period, for which the superseded method is used;</p></content></level><level class="para1" eId="section-90-4-b"><num>(b)</num><content><p>that the company again became a party to that relationship as from the beginning of the period or, as the case may be, part of a period for which the other authorised accounting method is used;</p></content></level><level class="para1" eId="section-90-4-c"><num>(c)</num><content><p>that the relationship to which the company is deemed to have become a party is separate and distinct from the one to which it is deemed to have ceased to be a party;</p></content></level><level class="para1" eId="section-90-4-d"><num>(d)</num><content><p>that the amount payable under the transaction comprised in each of the assumptions specified in paragraphs (a) and (b) above was equal to the fair value of the relationship; and</p></content></level><level class="para1" eId="section-90-4-e"><num>(e)</num><content><p>so far as relevant, that that amount became due at the time when the company is deemed to have ceased to be a party to the relationship or, as the case may be, to have again become a party to it.</p></content></level></subsection><subsection eId="section-90-5"><num>(5)</num><intro><p>Where—</p></intro><level class="para1" eId="section-90-5-a"><num>(a)</num><content><p>a mark to market basis of accounting is superseded by an accruals basis of accounting in the case of any loan relationship, and</p></content></level><level class="para1" eId="section-90-5-b"><num>(b)</num><content><p>the amount which would have accrued in respect of that relationship in the period or part of a period for which the accruals basis of accounting is used falls to be determined for the purposes of this section in accordance with the assumptions mentioned in subsection (4) above,</p></content></level><wrapUp><p>that amount shall be taken for those purposes to be equal to the amount resulting from the subtraction of the amount given by subsection (6)(a) below from the amount given by subsection (6)(b) below.</p></wrapUp></subsection><subsection eId="section-90-6"><num>(6)</num><intro><p>Those amounts are—</p></intro><level class="para1" eId="section-90-6-a"><num>(a)</num><content><p>the amount which by virtue of the assumptions mentioned in subsection (4) above is given as an opening value for the period or part of a period; and</p></content></level><level class="para1" eId="section-90-6-b"><num>(b)</num><content><p>the amount equal to whatever, in the computation in accordance with an authorised accruals basis of accounting of the amount accruing in that period or part of a period, would have been taken to be the closing value applicable as at the end of that period or part of a period if such a basis of accounting had always been used as respects the relationship.</p></content></level></subsection><subsection eId="section-90-7"><num>(7)</num><content><p>In this section “fair value” has the same meaning as in section 85 above.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-90-1"><num>(1)</num><content><p>This section applies where different authorised accounting methods are used for the purposes of this Chapter as respects the same loan relationship for different parts of the same accounting period or for successive accounting periods.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-90-2"><num>(2)</num><intro><p>Where, in the case of any loan relationship, the use of any authorised accounting method is superseded in the course of any accounting period by the use of another—</p></intro><level class="para1" eId="section-90-2-a"><num>(a)</num><content><p>the assumptions specified in subsection (4) below shall be made;</p></content></level><level class="para1" eId="section-90-2-b"><num>(b)</num><content><p>each method shall be applied on those assumptions as respects the part of the period for which it is used; and</p></content></level><level class="para1" eId="section-90-2-c"><num>(c)</num><content><p>the credits and debits given by the application of those methods on those assumptions shall be brought into account in the accounting period in which the change of method takes effect.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-90-2-a"><num>(a)</num><content><p>the assumptions specified in subsection (4) below shall be made;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-90-2-b"><num>(b)</num><content><p>each method shall be applied on those assumptions as respects the part of the period for which it is used; and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-90-2-c"><num>(c)</num><content><p>the credits and debits given by the application of those methods on those assumptions shall be brought into account in the accounting period in which the change of method takes effect.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-90-3"><num>(3)</num><intro><p>Where, in the case of any loan relationship, the use of any authorised accounting method is superseded as from the beginning of an accounting period by the use of another—</p></intro><level class="para1" eId="section-90-3-a"><num>(a)</num><intro><p>a net credit or debit shall be computed (treating any debit used in the computation as a negative amount) by—</p></intro><level class="para2" eId="section-90-3-a-i"><num>(i)</num><content><p>aggregating the credits and debits which, on the assumptions specified in subsection (4) below, would have been given in respect of that relationship for the successive accounting periods by the use for each period of the accounting method actually used for that period;</p></content></level><level class="para2" eId="section-90-3-a-ii"><num>(ii)</num><content><p>aggregating the credits and debits so given without the making of those assumptions; and</p></content></level><level class="para2" eId="section-90-3-a-iii"><num>(iii)</num><content><p>subtracting the second aggregate from the first;</p></content></level><wrapUp><p>and</p></wrapUp></level><level class="para1" eId="section-90-3-b"><num>(b)</num><content><p>the net credit or debit shall be brought into account for the purposes of this Chapter in the accounting period as from the beginning of which the change of method takes effect.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-90-3-a"><num>(a)</num><intro><p>a net credit or debit shall be computed (treating any debit used in the computation as a negative amount) by—</p></intro><level class="para2" eId="section-90-3-a-i"><num>(i)</num><content><p>aggregating the credits and debits which, on the assumptions specified in subsection (4) below, would have been given in respect of that relationship for the successive accounting periods by the use for each period of the accounting method actually used for that period;</p></content></level><level class="para2" eId="section-90-3-a-ii"><num>(ii)</num><content><p>aggregating the credits and debits so given without the making of those assumptions; and</p></content></level><level class="para2" eId="section-90-3-a-iii"><num>(iii)</num><content><p>subtracting the second aggregate from the first;</p></content></level><wrapUp><p>and</p></wrapUp></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-90-3-a-i"><num>(i)</num><content><p>aggregating the credits and debits which, on the assumptions specified in subsection (4) below, would have been given in respect of that relationship for the successive accounting periods by the use for each period of the accounting method actually used for that period;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-90-3-a-ii"><num>(ii)</num><content><p>aggregating the credits and debits so given without the making of those assumptions; and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-90-3-a-iii"><num>(iii)</num><content><p>subtracting the second aggregate from the first;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-90-3-b"><num>(b)</num><content><p>the net credit or debit shall be brought into account for the purposes of this Chapter in the accounting period as from the beginning of which the change of method takes effect.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-90-4"><num>(4)</num><intro><p>The assumptions mentioned in subsections (2) and (3) above are—</p></intro><level class="para1" eId="section-90-4-a"><num>(a)</num><content><p>that the company ceased to be a party to the relationship immediately before the end of the period, or part of a period, for which the superseded method is used;</p></content></level><level class="para1" eId="section-90-4-b"><num>(b)</num><content><p>that the company again became a party to that relationship as from the beginning of the period or, as the case may be, part of a period for which the other authorised accounting method is used;</p></content></level><level class="para1" eId="section-90-4-c"><num>(c)</num><content><p>that the relationship to which the company is deemed to have become a party is separate and distinct from the one to which it is deemed to have ceased to be a party;</p></content></level><level class="para1" eId="section-90-4-d"><num>(d)</num><content><p>that the amount payable under the transaction comprised in each of the assumptions specified in paragraphs (a) and (b) above was equal to the fair value of the relationship; and</p></content></level><level class="para1" eId="section-90-4-e"><num>(e)</num><content><p>so far as relevant, that that amount became due at the time when the company is deemed to have ceased to be a party to the relationship or, as the case may be, to have again become a party to it.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-90-4-a"><num>(a)</num><content><p>that the company ceased to be a party to the relationship immediately before the end of the period, or part of a period, for which the superseded method is used;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-90-4-b"><num>(b)</num><content><p>that the company again became a party to that relationship as from the beginning of the period or, as the case may be, part of a period for which the other authorised accounting method is used;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-90-4-c"><num>(c)</num><content><p>that the relationship to which the company is deemed to have become a party is separate and distinct from the one to which it is deemed to have ceased to be a party;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-90-4-d"><num>(d)</num><content><p>that the amount payable under the transaction comprised in each of the assumptions specified in paragraphs (a) and (b) above was equal to the fair value of the relationship; and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-90-4-e"><num>(e)</num><content><p>so far as relevant, that that amount became due at the time when the company is deemed to have ceased to be a party to the relationship or, as the case may be, to have again become a party to it.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-90-5"><num>(5)</num><intro><p>Where—</p></intro><level class="para1" eId="section-90-5-a"><num>(a)</num><content><p>a mark to market basis of accounting is superseded by an accruals basis of accounting in the case of any loan relationship, and</p></content></level><level class="para1" eId="section-90-5-b"><num>(b)</num><content><p>the amount which would have accrued in respect of that relationship in the period or part of a period for which the accruals basis of accounting is used falls to be determined for the purposes of this section in accordance with the assumptions mentioned in subsection (4) above,</p></content></level><wrapUp><p>that amount shall be taken for those purposes to be equal to the amount resulting from the subtraction of the amount given by subsection (6)(a) below from the amount given by subsection (6)(b) below.</p></wrapUp></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-90-5-a"><num>(a)</num><content><p>a mark to market basis of accounting is superseded by an accruals basis of accounting in the case of any loan relationship, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-90-5-b"><num>(b)</num><content><p>the amount which would have accrued in respect of that relationship in the period or part of a period for which the accruals basis of accounting is used falls to be determined for the purposes of this section in accordance with the assumptions mentioned in subsection (4) above,</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-90-6"><num>(6)</num><intro><p>Those amounts are—</p></intro><level class="para1" eId="section-90-6-a"><num>(a)</num><content><p>the amount which by virtue of the assumptions mentioned in subsection (4) above is given as an opening value for the period or part of a period; and</p></content></level><level class="para1" eId="section-90-6-b"><num>(b)</num><content><p>the amount equal to whatever, in the computation in accordance with an authorised accruals basis of accounting of the amount accruing in that period or part of a period, would have been taken to be the closing value applicable as at the end of that period or part of a period if such a basis of accounting had always been used as respects the relationship.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-90-6-a"><num>(a)</num><content><p>the amount which by virtue of the assumptions mentioned in subsection (4) above is given as an opening value for the period or part of a period; and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-90-6-b"><num>(b)</num><content><p>the amount equal to whatever, in the computation in accordance with an authorised accruals basis of accounting of the amount accruing in that period or part of a period, would have been taken to be the closing value applicable as at the end of that period or part of a period if such a basis of accounting had always been used as respects the relationship.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-90-7"><num>(7)</num><content><p>In this section “fair value” has the same meaning as in section 85 above.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-91"><num>91</num><heading>Payments subject to deduction of tax</heading><subsection eId="section-91-1"><num>(1)</num><intro><p>This section applies where—</p></intro><level class="para1" eId="section-91-1-a"><num>(a)</num><content><p>any company receives a payment of interest on which it bears income tax by deduction; and</p></content></level><level class="para1" eId="section-91-1-b"><num>(b)</num><content><p>in the case of that company, a credit relating to that interest has been brought into account for the purposes of this Chapter for an accounting period ending more than two years before the receipt of the payment.</p></content></level></subsection><subsection eId="section-91-2"><num>(2)</num><content><p>On a claim made by the company to an officer of the Board, section 7(2) or, as the case may be, 11(3) of the Taxes Act 1988 (deducted income tax to be set against liability to corporation tax) shall have effect in relation to the income tax on the payment as if the interest had fallen to be taken into account for the purposes of corporation tax in the accounting period in which the payment of that interest is received.</p></content></subsection><subsection eId="section-91-3"><num>(3)</num><content><p>In determining for the purposes of this section which accounting period is the accounting period for which a credit relating to interest paid subsequently was brought into account, every payment of interest to a company under a loan relationship of that company shall be assumed to be a payment in discharge of the earliest outstanding liability to that company in respect of interest payable under the relationship.</p></content></subsection><subsection eId="section-91-4"><num>(4)</num><intro><p>For the purposes of this section, the earliest outstanding liability to interest payable under a loan relationship of a company shall be identified, in relation to any payment of such interest, according to the authorised accounting method most recently used as respects that relationship, so that—</p></intro><level class="para1" eId="section-91-4-a"><num>(a)</num><content><p>if that method is an authorised accruals basis of accounting, it shall be determined by reference to the time when the interest accrued; and</p></content></level><level class="para1" eId="section-91-4-b"><num>(b)</num><content><p>if that method is an authorised mark to market basis of accounting, it shall be determined by reference to the time when the interest became due and payable.</p></content></level></subsection><subsection eId="section-91-5"><num>(5)</num><content><p>In subsection (4) above the reference, in relation to a payment of interest made to a company in any accounting period, to the authorised accounting method most recently used as respects that relationship is a reference to the authorised accounting method which, in the case of that company, has been used as respects that relationship for the accounting period which, when the payment is made, is the most recent for which amounts in respect of that relationship have been brought into account for the purposes of this Chapter.</p></content></subsection><subsection eId="section-91-6"><num>(6)</num><intro><p>A claim under this section shall not be made in respect of any payment of interest at any time after the later of the following, that is to say—</p></intro><level class="para1" eId="section-91-6-a"><num>(a)</num><content><p>the time two years after the end of the accounting period in which the payment is received; and</p></content></level><level class="para1" eId="section-91-6-b"><num>(b)</num><content><p>the time six years after the end of the accounting period for which the credit in respect of the interest was brought into account for the purposes of this Chapter.</p></content></level></subsection><subsection eId="section-91-7"><num>(7)</num><intro><p>Where—</p></intro><level class="para1" eId="section-91-7-a"><num>(a)</num><content><p>there is a payment of interest to a company under a loan relationship of that company, and</p></content></level><level class="para1" eId="section-91-7-b"><num>(b)</num><content><p>the company is prevented by virtue of subsection (6) above from making any claim under this section in respect of that payment,</p></content></level><wrapUp><p>the company shall not be entitled to make any claim under paragraph 5 of Schedule 16 to the Taxes Act 1988 (set off of income tax borne against income tax payable) in respect of that payment.</p></wrapUp></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-91-1"><num>(1)</num><intro><p>This section applies where—</p></intro><level class="para1" eId="section-91-1-a"><num>(a)</num><content><p>any company receives a payment of interest on which it bears income tax by deduction; and</p></content></level><level class="para1" eId="section-91-1-b"><num>(b)</num><content><p>in the case of that company, a credit relating to that interest has been brought into account for the purposes of this Chapter for an accounting period ending more than two years before the receipt of the payment.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-91-1-a"><num>(a)</num><content><p>any company receives a payment of interest on which it bears income tax by deduction; and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-91-1-b"><num>(b)</num><content><p>in the case of that company, a credit relating to that interest has been brought into account for the purposes of this Chapter for an accounting period ending more than two years before the receipt of the payment.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-91-2"><num>(2)</num><content><p>On a claim made by the company to an officer of the Board, section 7(2) or, as the case may be, 11(3) of the Taxes Act 1988 (deducted income tax to be set against liability to corporation tax) shall have effect in relation to the income tax on the payment as if the interest had fallen to be taken into account for the purposes of corporation tax in the accounting period in which the payment of that interest is received.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-91-3"><num>(3)</num><content><p>In determining for the purposes of this section which accounting period is the accounting period for which a credit relating to interest paid subsequently was brought into account, every payment of interest to a company under a loan relationship of that company shall be assumed to be a payment in discharge of the earliest outstanding liability to that company in respect of interest payable under the relationship.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-91-4"><num>(4)</num><intro><p>For the purposes of this section, the earliest outstanding liability to interest payable under a loan relationship of a company shall be identified, in relation to any payment of such interest, according to the authorised accounting method most recently used as respects that relationship, so that—</p></intro><level class="para1" eId="section-91-4-a"><num>(a)</num><content><p>if that method is an authorised accruals basis of accounting, it shall be determined by reference to the time when the interest accrued; and</p></content></level><level class="para1" eId="section-91-4-b"><num>(b)</num><content><p>if that method is an authorised mark to market basis of accounting, it shall be determined by reference to the time when the interest became due and payable.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-91-4-a"><num>(a)</num><content><p>if that method is an authorised accruals basis of accounting, it shall be determined by reference to the time when the interest accrued; and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-91-4-b"><num>(b)</num><content><p>if that method is an authorised mark to market basis of accounting, it shall be determined by reference to the time when the interest became due and payable.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-91-5"><num>(5)</num><content><p>In subsection (4) above the reference, in relation to a payment of interest made to a company in any accounting period, to the authorised accounting method most recently used as respects that relationship is a reference to the authorised accounting method which, in the case of that company, has been used as respects that relationship for the accounting period which, when the payment is made, is the most recent for which amounts in respect of that relationship have been brought into account for the purposes of this Chapter.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-91-6"><num>(6)</num><intro><p>A claim under this section shall not be made in respect of any payment of interest at any time after the later of the following, that is to say—</p></intro><level class="para1" eId="section-91-6-a"><num>(a)</num><content><p>the time two years after the end of the accounting period in which the payment is received; and</p></content></level><level class="para1" eId="section-91-6-b"><num>(b)</num><content><p>the time six years after the end of the accounting period for which the credit in respect of the interest was brought into account for the purposes of this Chapter.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-91-6-a"><num>(a)</num><content><p>the time two years after the end of the accounting period in which the payment is received; and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-91-6-b"><num>(b)</num><content><p>the time six years after the end of the accounting period for which the credit in respect of the interest was brought into account for the purposes of this Chapter.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-91-7"><num>(7)</num><intro><p>Where—</p></intro><level class="para1" eId="section-91-7-a"><num>(a)</num><content><p>there is a payment of interest to a company under a loan relationship of that company, and</p></content></level><level class="para1" eId="section-91-7-b"><num>(b)</num><content><p>the company is prevented by virtue of subsection (6) above from making any claim under this section in respect of that payment,</p></content></level><wrapUp><p>the company shall not be entitled to make any claim under paragraph 5 of Schedule 16 to the Taxes Act 1988 (set off of income tax borne against income tax payable) in respect of that payment.</p></wrapUp></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-91-7-a"><num>(a)</num><content><p>there is a payment of interest to a company under a loan relationship of that company, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-91-7-b"><num>(b)</num><content><p>the company is prevented by virtue of subsection (6) above from making any claim under this section in respect of that payment,</p></content></level>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="part-IV-chapter-II-crossheading-special-cases"><heading>Special cases</heading><section eId="section-92"><num>92</num><heading>Convertible securities etc</heading><subsection eId="section-92-1"><num>(1)</num><intro><p>This section applies to an asset if—</p></intro><level class="para1" eId="section-92-1-a"><num>(a)</num><content><p>the asset represents a creditor relationship of a company;</p></content></level><level class="para1" eId="section-92-1-b"><num>(b)</num><content><p>the rights attached to the asset include provision by virtue of which the company is or may become entitled to acquire (whether by conversion or exchange or otherwise) any shares in a company;</p></content></level><level class="para1" eId="section-92-1-c"><num>(c)</num><content><p>the extent to which shares may be acquired under that provision is not determined using a cash value which is specified in that provision or which is or will be ascertainable by reference to the terms of that provision;</p></content></level><level class="para1" eId="section-92-1-d"><num>(d)</num><content><p>the asset is not a relevant discounted security within the meaning of Schedule 13 to this Act;</p></content></level><level class="para1" eId="section-92-1-e"><num>(e)</num><content><p>at the time when the asset came into existence there was a more than negligible likelihood that the right to acquire shares in a company would in due course be exercised to a significant extent; and</p></content></level><level class="para1" eId="section-92-1-f"><num>(f)</num><content><p>the asset is not one the disposal of which by the company would fall to be treated as a disposal in the course of activities forming an integral part of a trade carried on by the company.</p></content></level></subsection><subsection eId="section-92-2"><num>(2)</num><content><p>The amounts falling for any accounting period to be brought into account for the purposes of this Chapter in respect of a creditor relationship represented by an asset to which this section applies shall be confined to amounts relating to interest.</p></content></subsection><subsection eId="section-92-3"><num>(3)</num><content><p>Only an authorised accruals basis of accounting shall be used for ascertaining those amounts.</p></content></subsection><subsection eId="section-92-4"><num>(4)</num><content><p>Amounts shall be brought into account in computing the profits of the company for the purposes of corporation tax as if the <noteRef href="#m00058" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxation of Chargeable Gains Act 1992 had effect in relation to any asset to which this section applies as it has effect in relation to an asset that does not represent a loan relationship.</p></content></subsection><subsection eId="section-92-5"><num>(5)</num><intro><p>For the purposes of that Act the amount or value of the consideration for any disposal or acquisition of the asset shall be treated as adjusted so as to exclude so much of it as, on a just and reasonable apportionment, relates to any interest which—</p></intro><level class="para1" eId="section-92-5-a"><num>(a)</num><content><p>falls to be brought into account under subsections (2) and (3) above as accruing to any company at any time; and</p></content></level><level class="para1" eId="section-92-5-b"><num>(b)</num><content><p>in consequence of, or of the terms of, the disposal or acquisition, is not paid or payable to the company to which it is treated for the purposes of this Chapter as accruing.</p></content></level></subsection><subsection eId="section-92-6"><num>(6)</num><intro><p>In subsection (5) above the references to a disposal, in relation to an asset, are references to anything which—</p></intro><level class="para1" eId="section-92-6-a"><num>(a)</num><content><p>is a disposal of that asset (within the meaning of the Taxation of Chargeable Gains Act 1992); or</p></content></level><level class="para1" eId="section-92-6-b"><num>(b)</num><content><p>would be such a disposal but for section 127 or 116(10) of that Act (reorganisations etc.);</p></content></level><wrapUp><p>and the references to the acquisition of an asset shall be construed accordingly.</p></wrapUp></subsection></section><section eId="section-93"><num>93</num><heading>Relationships linked to the value of chargeable assets</heading><subsection eId="section-93-1"><num>(1)</num><content><p>This section applies in the case of any loan relationship of a company that is linked to the value of chargeable assets unless it is one the disposal of which by the company would fall to be treated as a disposal in the course of activities forming an integral part of a trade carried on by the company.</p></content></subsection><subsection eId="section-93-2"><num>(2)</num><content><p>The amounts falling for any accounting period to be brought into account for the purposes of this Chapter in respect of the relationship shall be confined to amounts relating to interest.</p></content></subsection><subsection eId="section-93-3"><num>(3)</num><content><p>Only an authorised accruals basis of accounting shall be used for ascertaining those amounts.</p></content></subsection><subsection eId="section-93-4"><num>(4)</num><content><p>Amounts shall be brought into account in computing the profits of the company for the purposes of corporation tax as if the <noteRef href="#m00059" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxation of Chargeable Gains Act 1992 had effect in relation to the asset representing the relationship as it has effect in relation to an asset that does not represent a loan relationship.</p></content></subsection><subsection eId="section-93-5"><num>(5)</num><intro><p>For the purposes of that Act the amount or value of the consideration for any disposal or acquisition of the asset shall be treated as adjusted so as to exclude so much of it as, on a just and reasonable apportionment, relates to any interest which—</p></intro><level class="para1" eId="section-93-5-a"><num>(a)</num><content><p>falls to be brought into account under subsections (2) and (3) above as accruing to any company at any time; and</p></content></level><level class="para1" eId="section-93-5-b"><num>(b)</num><content><p>in consequence of, or of the terms of, the disposal or acquisition, is not paid or payable to the company to which it is treated for the purposes of this Chapter as accruing.</p></content></level></subsection><subsection eId="section-93-6"><num>(6)</num><content><p>For the purposes of this section a loan relationship is linked to the value of chargeable assets if, in pursuance of any provision having effect for the purposes of that relationship, the amount that must be paid to discharge the money debt (whether on redemption of a security issued in relation to that debt or otherwise) is equal to the amount determined by applying a relevant percentage change in the value of chargeable assets to the amount falling for the purposes of this Chapter to be regarded as the amount of the original loan from which the money debt arises.</p></content></subsection><subsection eId="section-93-7"><num>(7)</num><content><p>In subsection (6) above the reference to a relevant percentage change in the value of chargeable assets is a reference to the amount of the percentage change (if any) over the relevant period in the value of chargeable assets of any particular description or in any index of the value of any such assets.</p></content></subsection><subsection eId="section-93-8"><num>(8)</num><intro><p>In subsection (7) above “the relevant period” means—</p></intro><level class="para1" eId="section-93-8-a"><num>(a)</num><content><p>the period between the time of the original loan and the discharge of the money debt; or</p></content></level><level class="para1" eId="section-93-8-b"><num>(b)</num><content><p>any other period in which almost all of that period is comprised and which differs from that period exclusively for purposes connected with giving effect to a valuation in relation to rights or liabilities under the loan relationship.</p></content></level></subsection><subsection eId="section-93-9"><num>(9)</num><intro><p>If—</p></intro><level class="para1" eId="section-93-9-a"><num>(a)</num><content><p>there is a provision which, in the case of any loan relationship, falls within subsection (6) above,</p></content></level><level class="para1" eId="section-93-9-b"><num>(b)</num><content><p>that provision is made subject to any other provision applying to the determination of the amount payable to discharge the money debt,</p></content></level><level class="para1" eId="section-93-9-c"><num>(c)</num><content><p>that other provision is to the effect only that the amount so payable must not be less than a specified percentage of the amount falling for the purposes of this Chapter to be regarded as the amount of the original loan, and</p></content></level><level class="para1" eId="section-93-9-d"><num>(d)</num><content><p>the specified percentage is not more than 10 per cent.,</p></content></level><wrapUp><p>that other provision shall be disregarded in determining for the purposes of this section whether the relationship is linked to the value of chargeable assets.</p></wrapUp></subsection><subsection eId="section-93-10"><num>(10)</num><content><p>For the purposes of this section an asset is a chargeable asset, in relation to a loan relationship of a company, if any gain accruing on the disposal of the asset by the company on or after 1st April 1996 would, on the assumptions specified in subsection (11) below, be a chargeable gain for the purposes of the <noteRef href="#m00060" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxation of Chargeable Gains Act 1992.</p></content></subsection><subsection eId="section-93-11"><num>(11)</num><intro><p>Those assumptions are—</p></intro><level class="para1" eId="section-93-11-a"><num>(a)</num><content><p>where it is not otherwise the case, that the asset is an asset of the company;</p></content></level><level class="para1" eId="section-93-11-b"><num>(b)</num><content><p>that the asset is not one the disposal of which by the company would fall to be treated for the purposes of corporation tax as a disposal in the course of a trade carried on by the company; and</p></content></level><level class="para1" eId="section-93-11-c"><num>(c)</num><content><p>that chargeable gains that might accrue under section 116(10) of that Act (postponed charges) are to be disregarded.</p></content></level></subsection><subsection eId="section-93-12"><num>(12)</num><intro><p>In subsection (5) above references to a disposal, in relation to an asset, are references to anything which—</p></intro><level class="para1" eId="section-93-12-a"><num>(a)</num><content><p>is a disposal of that asset (within the meaning of the Taxation of Chargeable Gains Act 1992); or</p></content></level><level class="para1" eId="section-93-12-b"><num>(b)</num><content><p>would be such a disposal but for section 127 or 116(10) of that Act (reorganisations etc.);</p></content></level><wrapUp><p>and the references to the acquisition of an asset shall be construed accordingly.</p></wrapUp></subsection><subsection eId="section-93-13"><num>(13)</num><intro><p>For the purposes of this section neither—</p></intro><level class="para1" eId="section-93-13-a"><num>(a)</num><content><p>the retail prices index, nor</p></content></level><level class="para1" eId="section-93-13-b"><num>(b)</num><content><p>any similar general index of prices published by the government of any territory or by the agent of any such government,</p></content></level><wrapUp><p>shall be taken to be an index of the value of chargeable assets.</p></wrapUp></subsection></section><section eId="section-94"><num>94</num><heading>Indexed gilt-edged securities</heading><subsection eId="section-94-1"><num>(1)</num><content><p>In the case of any loan relationship represented by an index-linked gilt-edged security, the adjustment for which this section provides shall be made in computing the credits and debits which fall, for any accounting period, to be brought into account for the purposes of this Chapter in respect of that relationship as non-trading credits or non-trading debits.</p></content></subsection><subsection eId="section-94-2"><num>(2)</num><intro><p>The adjustment shall be made wherever—</p></intro><level class="para1" eId="section-94-2-a"><num>(a)</num><content><p>the authorised accounting method applied as respects the index-linked gilt-edged security gives credits or debits by reference to the value of the security at two different times, and</p></content></level><level class="para1" eId="section-94-2-b"><num>(b)</num><content><p>there is any change in the retail prices index between those times.</p></content></level></subsection><subsection eId="section-94-3"><num>(3)</num><content><p>Subject to subsection (4) below, the adjustment is such an adjustment of the amount which would otherwise be taken for the purposes of that accounting method to be the value of the security at the earlier time (“the opening value”) as results in the amount in fact so taken being equal to the opening value increased or, as the case may be, reduced by the same percentage as the percentage increase or reduction in the retail prices index between the earlier and the later time.</p></content></subsection><subsection eId="section-94-4"><num>(4)</num><intro><p>The Treasury may, in relation to any description of index-linked gilt-edged securities, by order provide that—</p></intro><level class="para1" eId="section-94-4-a"><num>(a)</num><content><p>there are to be no adjustments under this section; or</p></content></level><level class="para1" eId="section-94-4-b"><num>(b)</num><content><p>that an adjustment specified in the order (instead of the adjustment specified in subsection (3) above) is to be the adjustment for which this section provides.</p></content></level></subsection><subsection eId="section-94-5"><num>(5)</num><intro><p>An order under subsection (4) above—</p></intro><level class="para1" eId="section-94-5-a"><num>(a)</num><content><p>shall not have effect in relation to any gilt-edged security issued before the making of the order; but</p></content></level><level class="para1" eId="section-94-5-b"><num>(b)</num><content><p>may make different provision for different descriptions of securities.</p></content></level></subsection><subsection eId="section-94-6"><num>(6)</num><intro><p>For the purposes of this section the percentage increase or reduction in the retail prices index between any two times shall be determined by reference to the difference between—</p></intro><level class="para1" eId="section-94-6-a"><num>(a)</num><content><p>that index for the month in which the earlier time falls; and</p></content></level><level class="para1" eId="section-94-6-b"><num>(b)</num><content><p>that index for the month in which the later time falls.</p></content></level></subsection><subsection eId="section-94-7"><num>(7)</num><content><p>In this section “index-linked gilt-edged securities” means any gilt-edged securities the amounts of the payments under which are determined wholly or partly by reference to the retail prices index.</p></content></subsection></section><section eId="section-95"><num>95</num><heading>Gilt strips</heading><subsection eId="section-95-1"><num>(1)</num><content><p>This section has effect for the purposes of the application of an authorised accruals basis of accounting as respects a loan relationship represented by a gilt-edged security or a strip of a gilt-edged security.</p></content></subsection><subsection eId="section-95-2"><num>(2)</num><intro><p>Where a gilt-edged security is exchanged by any person for strips of that security—</p></intro><level class="para1" eId="section-95-2-a"><num>(a)</num><content><p>the security shall be deemed to have been redeemed at the time of the exchange by the payment to that person of its market value; and</p></content></level><level class="para1" eId="section-95-2-b"><num>(b)</num><content><p>that person shall be deemed to have acquired each strip for the amount which bears the same proportion to that market value as is borne by the market value of the strip to the aggregate of the market values of all the strips received in exchange for the security.</p></content></level></subsection><subsection eId="section-95-3"><num>(3)</num><intro><p>Where strips of a gilt-edged security are consolidated into a single gilt-edged security by being exchanged by any person for that security—</p></intro><level class="para1" eId="section-95-3-a"><num>(a)</num><content><p>each of the strips shall be deemed to have been redeemed at the time of the exchange by the payment to that person of the amount equal to its market value; and</p></content></level><level class="para1" eId="section-95-3-b"><num>(b)</num><content><p>that person shall be deemed to have acquired the security received in the exchange for the amount equal to the aggregate of the market values of the strips given in exchange for the security.</p></content></level></subsection><subsection eId="section-95-4"><num>(4)</num><content><p>References in this section to the market value of a security given or received in exchange for another are references to its market value at the time of the exchange.</p></content></subsection><subsection eId="section-95-5"><num>(5)</num><content><p>Without prejudice to the generality of any power conferred by section 202 below, the Treasury may by regulations make provision for the purposes of this section as to the manner of determining the market value at any time of any gilt-edged security (including any strip).</p></content></subsection><subsection eId="section-95-6"><num>(6)</num><intro><p>Regulations under subsection (5) above may—</p></intro><level class="para1" eId="section-95-6-a"><num>(a)</num><content><p>make different provision for different cases; and</p></content></level><level class="para1" eId="section-95-6-b"><num>(b)</num><content><p>contain such incidental, supplemental, consequential and transitional provision as the Treasury may think fit.</p></content></level></subsection><subsection eId="section-95-7"><num>(7)</num><content><p>In this section “strip” means anything which, within the meaning of section 47 of the <noteRef href="#m00061" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1942, is a strip of a gilt-edged security.</p></content></subsection></section><section eId="section-96"><num>96</num><heading>Special rules for certain other gilts</heading><subsection eId="section-96-1"><num>(1)</num><intro><p>This section applies as respects any loan relationship of a company if—</p></intro><level class="para1" eId="section-96-1-a"><num>(a)</num><intro><p>it is represented by a security of any of the following descriptions—</p></intro><level class="para2" eId="section-96-1-a-i"><num>(i)</num><content><p>3½% Funding Stock 1999-2004; or</p></content></level><level class="para2" eId="section-96-1-a-ii"><num>(ii)</num><content><p>5½% Treasury Stock 2008-2012;</p></content></level><wrapUp><p>and</p></wrapUp></level><level class="para1" eId="section-96-1-b"><num>(b)</num><content><p>it is one to which the company is a party otherwise than in the course of activities that form an integral part of a trade carried on by the company.</p></content></level></subsection><subsection eId="section-96-2"><num>(2)</num><content><p>The amounts falling for any accounting period to be brought into account for the purposes of this Chapter in respect of a loan relationship to which this section applies shall be confined to amounts relating to interest.</p></content></subsection><subsection eId="section-96-3"><num>(3)</num><content><p>Only an authorised accruals basis of accounting shall be used for ascertaining those amounts.</p></content></subsection></section><section eId="section-97"><num>97</num><heading>Manufactured interest</heading><subsection eId="section-97-1"><num>(1)</num><intro><p>This section applies where—</p></intro><level class="para1" eId="section-97-1-a"><num>(a)</num><content><p>any amount (“manufactured interest”) is payable by or on behalf of, or to, any company under any contract or arrangements relating to the transfer of an asset representing a loan relationship; and</p></content></level><level class="para1" eId="section-97-1-b"><num>(b)</num><content><p>that amount is, or (when paid) will fall to be treated as, representative of interest under that relationship (“the real interest”).</p></content></level></subsection><subsection eId="section-97-2"><num>(2)</num><intro><p>In relation to that company the manufactured interest shall be treated for the purposes of this Chapter—</p></intro><level class="para1" eId="section-97-2-a"><num>(a)</num><content><p>as if it were interest under a loan relationship to which the company is a party; and</p></content></level><level class="para1" eId="section-97-2-b"><num>(b)</num><content><p>where that company is the company to which the manufactured interest is payable, as if that relationship were the one under which the real interest is payable.</p></content></level></subsection><subsection eId="section-97-3"><num>(3)</num><intro><p>Any question whether debits or credits falling to be brought into account in the case of any company by virtue of this section—</p></intro><level class="para1" eId="section-97-3-a"><num>(a)</num><content><p>are to be brought into account under section 82(2) above, or</p></content></level><level class="para1" eId="section-97-3-b"><num>(b)</num><content><p>are to be treated as non-trading debits or non-trading credits,</p></content></level><wrapUp><p>shall be determined according to the extent (if any) to which the manufactured interest is paid for the purposes of a trade carried on by the company or is received in the course of activities forming an integral part of such a trade.</p></wrapUp></subsection><subsection eId="section-97-4"><num>(4)</num><content><p>Where section 737A(5) of the Taxes Act 1988 (deemed manufactured payments) has effect in relation to a transaction relating to an asset representing a loan relationship so as, for the purposes of section 737 of, or Schedule 23A to, that Act, to deem there to have been a payment representative of interest under that relationship, this section shall apply as it would have applied if such a representative payment had in fact been made.</p></content></subsection><subsection eId="section-97-5"><num>(5)</num><content><p>This section does not apply where the manufactured interest is treated by virtue of paragraph 5(2)(c) or (4)(c) of Schedule 23A to the Taxes Act 1988 (manufactured interest passing through the market) as not being income of the person who receives it.</p></content></subsection></section><section eId="section-98"><num>98</num><heading>Collective investment schemes</heading><content><p>The provisions of this Chapter have effect subject to the provisions of Schedule 10 to this Act (which makes special provision in relation to certain collective investment schemes).</p></content></section><section eId="section-99"><num>99</num><heading>Insurance companies</heading><content><p>The preceding provisions of this Chapter have effect subject to Schedule 11 to this Act (which makes special provision in relation to certain insurance companies and in relation to corporate members of Lloyd's).</p></content></section></hcontainer>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-92"><num>92</num><heading>Convertible securities etc</heading><subsection eId="section-92-1"><num>(1)</num><intro><p>This section applies to an asset if—</p></intro><level class="para1" eId="section-92-1-a"><num>(a)</num><content><p>the asset represents a creditor relationship of a company;</p></content></level><level class="para1" eId="section-92-1-b"><num>(b)</num><content><p>the rights attached to the asset include provision by virtue of which the company is or may become entitled to acquire (whether by conversion or exchange or otherwise) any shares in a company;</p></content></level><level class="para1" eId="section-92-1-c"><num>(c)</num><content><p>the extent to which shares may be acquired under that provision is not determined using a cash value which is specified in that provision or which is or will be ascertainable by reference to the terms of that provision;</p></content></level><level class="para1" eId="section-92-1-d"><num>(d)</num><content><p>the asset is not a relevant discounted security within the meaning of Schedule 13 to this Act;</p></content></level><level class="para1" eId="section-92-1-e"><num>(e)</num><content><p>at the time when the asset came into existence there was a more than negligible likelihood that the right to acquire shares in a company would in due course be exercised to a significant extent; and</p></content></level><level class="para1" eId="section-92-1-f"><num>(f)</num><content><p>the asset is not one the disposal of which by the company would fall to be treated as a disposal in the course of activities forming an integral part of a trade carried on by the company.</p></content></level></subsection><subsection eId="section-92-2"><num>(2)</num><content><p>The amounts falling for any accounting period to be brought into account for the purposes of this Chapter in respect of a creditor relationship represented by an asset to which this section applies shall be confined to amounts relating to interest.</p></content></subsection><subsection eId="section-92-3"><num>(3)</num><content><p>Only an authorised accruals basis of accounting shall be used for ascertaining those amounts.</p></content></subsection><subsection eId="section-92-4"><num>(4)</num><content><p>Amounts shall be brought into account in computing the profits of the company for the purposes of corporation tax as if the <noteRef href="#m00058" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxation of Chargeable Gains Act 1992 had effect in relation to any asset to which this section applies as it has effect in relation to an asset that does not represent a loan relationship.</p></content></subsection><subsection eId="section-92-5"><num>(5)</num><intro><p>For the purposes of that Act the amount or value of the consideration for any disposal or acquisition of the asset shall be treated as adjusted so as to exclude so much of it as, on a just and reasonable apportionment, relates to any interest which—</p></intro><level class="para1" eId="section-92-5-a"><num>(a)</num><content><p>falls to be brought into account under subsections (2) and (3) above as accruing to any company at any time; and</p></content></level><level class="para1" eId="section-92-5-b"><num>(b)</num><content><p>in consequence of, or of the terms of, the disposal or acquisition, is not paid or payable to the company to which it is treated for the purposes of this Chapter as accruing.</p></content></level></subsection><subsection eId="section-92-6"><num>(6)</num><intro><p>In subsection (5) above the references to a disposal, in relation to an asset, are references to anything which—</p></intro><level class="para1" eId="section-92-6-a"><num>(a)</num><content><p>is a disposal of that asset (within the meaning of the Taxation of Chargeable Gains Act 1992); or</p></content></level><level class="para1" eId="section-92-6-b"><num>(b)</num><content><p>would be such a disposal but for section 127 or 116(10) of that Act (reorganisations etc.);</p></content></level><wrapUp><p>and the references to the acquisition of an asset shall be construed accordingly.</p></wrapUp></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-92-1"><num>(1)</num><intro><p>This section applies to an asset if—</p></intro><level class="para1" eId="section-92-1-a"><num>(a)</num><content><p>the asset represents a creditor relationship of a company;</p></content></level><level class="para1" eId="section-92-1-b"><num>(b)</num><content><p>the rights attached to the asset include provision by virtue of which the company is or may become entitled to acquire (whether by conversion or exchange or otherwise) any shares in a company;</p></content></level><level class="para1" eId="section-92-1-c"><num>(c)</num><content><p>the extent to which shares may be acquired under that provision is not determined using a cash value which is specified in that provision or which is or will be ascertainable by reference to the terms of that provision;</p></content></level><level class="para1" eId="section-92-1-d"><num>(d)</num><content><p>the asset is not a relevant discounted security within the meaning of Schedule 13 to this Act;</p></content></level><level class="para1" eId="section-92-1-e"><num>(e)</num><content><p>at the time when the asset came into existence there was a more than negligible likelihood that the right to acquire shares in a company would in due course be exercised to a significant extent; and</p></content></level><level class="para1" eId="section-92-1-f"><num>(f)</num><content><p>the asset is not one the disposal of which by the company would fall to be treated as a disposal in the course of activities forming an integral part of a trade carried on by the company.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-92-1-a"><num>(a)</num><content><p>the asset represents a creditor relationship of a company;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-92-1-b"><num>(b)</num><content><p>the rights attached to the asset include provision by virtue of which the company is or may become entitled to acquire (whether by conversion or exchange or otherwise) any shares in a company;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-92-1-c"><num>(c)</num><content><p>the extent to which shares may be acquired under that provision is not determined using a cash value which is specified in that provision or which is or will be ascertainable by reference to the terms of that provision;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-92-1-d"><num>(d)</num><content><p>the asset is not a relevant discounted security within the meaning of Schedule 13 to this Act;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-92-1-e"><num>(e)</num><content><p>at the time when the asset came into existence there was a more than negligible likelihood that the right to acquire shares in a company would in due course be exercised to a significant extent; and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-92-1-f"><num>(f)</num><content><p>the asset is not one the disposal of which by the company would fall to be treated as a disposal in the course of activities forming an integral part of a trade carried on by the company.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-92-2"><num>(2)</num><content><p>The amounts falling for any accounting period to be brought into account for the purposes of this Chapter in respect of a creditor relationship represented by an asset to which this section applies shall be confined to amounts relating to interest.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-92-3"><num>(3)</num><content><p>Only an authorised accruals basis of accounting shall be used for ascertaining those amounts.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-92-4"><num>(4)</num><content><p>Amounts shall be brought into account in computing the profits of the company for the purposes of corporation tax as if the <noteRef href="#m00058" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxation of Chargeable Gains Act 1992 had effect in relation to any asset to which this section applies as it has effect in relation to an asset that does not represent a loan relationship.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-92-5"><num>(5)</num><intro><p>For the purposes of that Act the amount or value of the consideration for any disposal or acquisition of the asset shall be treated as adjusted so as to exclude so much of it as, on a just and reasonable apportionment, relates to any interest which—</p></intro><level class="para1" eId="section-92-5-a"><num>(a)</num><content><p>falls to be brought into account under subsections (2) and (3) above as accruing to any company at any time; and</p></content></level><level class="para1" eId="section-92-5-b"><num>(b)</num><content><p>in consequence of, or of the terms of, the disposal or acquisition, is not paid or payable to the company to which it is treated for the purposes of this Chapter as accruing.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-92-5-a"><num>(a)</num><content><p>falls to be brought into account under subsections (2) and (3) above as accruing to any company at any time; and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-92-5-b"><num>(b)</num><content><p>in consequence of, or of the terms of, the disposal or acquisition, is not paid or payable to the company to which it is treated for the purposes of this Chapter as accruing.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-92-6"><num>(6)</num><intro><p>In subsection (5) above the references to a disposal, in relation to an asset, are references to anything which—</p></intro><level class="para1" eId="section-92-6-a"><num>(a)</num><content><p>is a disposal of that asset (within the meaning of the Taxation of Chargeable Gains Act 1992); or</p></content></level><level class="para1" eId="section-92-6-b"><num>(b)</num><content><p>would be such a disposal but for section 127 or 116(10) of that Act (reorganisations etc.);</p></content></level><wrapUp><p>and the references to the acquisition of an asset shall be construed accordingly.</p></wrapUp></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-92-6-a"><num>(a)</num><content><p>is a disposal of that asset (within the meaning of the Taxation of Chargeable Gains Act 1992); or</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-92-6-b"><num>(b)</num><content><p>would be such a disposal but for section 127 or 116(10) of that Act (reorganisations etc.);</p></content></level>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-93"><num>93</num><heading>Relationships linked to the value of chargeable assets</heading><subsection eId="section-93-1"><num>(1)</num><content><p>This section applies in the case of any loan relationship of a company that is linked to the value of chargeable assets unless it is one the disposal of which by the company would fall to be treated as a disposal in the course of activities forming an integral part of a trade carried on by the company.</p></content></subsection><subsection eId="section-93-2"><num>(2)</num><content><p>The amounts falling for any accounting period to be brought into account for the purposes of this Chapter in respect of the relationship shall be confined to amounts relating to interest.</p></content></subsection><subsection eId="section-93-3"><num>(3)</num><content><p>Only an authorised accruals basis of accounting shall be used for ascertaining those amounts.</p></content></subsection><subsection eId="section-93-4"><num>(4)</num><content><p>Amounts shall be brought into account in computing the profits of the company for the purposes of corporation tax as if the <noteRef href="#m00059" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxation of Chargeable Gains Act 1992 had effect in relation to the asset representing the relationship as it has effect in relation to an asset that does not represent a loan relationship.</p></content></subsection><subsection eId="section-93-5"><num>(5)</num><intro><p>For the purposes of that Act the amount or value of the consideration for any disposal or acquisition of the asset shall be treated as adjusted so as to exclude so much of it as, on a just and reasonable apportionment, relates to any interest which—</p></intro><level class="para1" eId="section-93-5-a"><num>(a)</num><content><p>falls to be brought into account under subsections (2) and (3) above as accruing to any company at any time; and</p></content></level><level class="para1" eId="section-93-5-b"><num>(b)</num><content><p>in consequence of, or of the terms of, the disposal or acquisition, is not paid or payable to the company to which it is treated for the purposes of this Chapter as accruing.</p></content></level></subsection><subsection eId="section-93-6"><num>(6)</num><content><p>For the purposes of this section a loan relationship is linked to the value of chargeable assets if, in pursuance of any provision having effect for the purposes of that relationship, the amount that must be paid to discharge the money debt (whether on redemption of a security issued in relation to that debt or otherwise) is equal to the amount determined by applying a relevant percentage change in the value of chargeable assets to the amount falling for the purposes of this Chapter to be regarded as the amount of the original loan from which the money debt arises.</p></content></subsection><subsection eId="section-93-7"><num>(7)</num><content><p>In subsection (6) above the reference to a relevant percentage change in the value of chargeable assets is a reference to the amount of the percentage change (if any) over the relevant period in the value of chargeable assets of any particular description or in any index of the value of any such assets.</p></content></subsection><subsection eId="section-93-8"><num>(8)</num><intro><p>In subsection (7) above “the relevant period” means—</p></intro><level class="para1" eId="section-93-8-a"><num>(a)</num><content><p>the period between the time of the original loan and the discharge of the money debt; or</p></content></level><level class="para1" eId="section-93-8-b"><num>(b)</num><content><p>any other period in which almost all of that period is comprised and which differs from that period exclusively for purposes connected with giving effect to a valuation in relation to rights or liabilities under the loan relationship.</p></content></level></subsection><subsection eId="section-93-9"><num>(9)</num><intro><p>If—</p></intro><level class="para1" eId="section-93-9-a"><num>(a)</num><content><p>there is a provision which, in the case of any loan relationship, falls within subsection (6) above,</p></content></level><level class="para1" eId="section-93-9-b"><num>(b)</num><content><p>that provision is made subject to any other provision applying to the determination of the amount payable to discharge the money debt,</p></content></level><level class="para1" eId="section-93-9-c"><num>(c)</num><content><p>that other provision is to the effect only that the amount so payable must not be less than a specified percentage of the amount falling for the purposes of this Chapter to be regarded as the amount of the original loan, and</p></content></level><level class="para1" eId="section-93-9-d"><num>(d)</num><content><p>the specified percentage is not more than 10 per cent.,</p></content></level><wrapUp><p>that other provision shall be disregarded in determining for the purposes of this section whether the relationship is linked to the value of chargeable assets.</p></wrapUp></subsection><subsection eId="section-93-10"><num>(10)</num><content><p>For the purposes of this section an asset is a chargeable asset, in relation to a loan relationship of a company, if any gain accruing on the disposal of the asset by the company on or after 1st April 1996 would, on the assumptions specified in subsection (11) below, be a chargeable gain for the purposes of the <noteRef href="#m00060" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxation of Chargeable Gains Act 1992.</p></content></subsection><subsection eId="section-93-11"><num>(11)</num><intro><p>Those assumptions are—</p></intro><level class="para1" eId="section-93-11-a"><num>(a)</num><content><p>where it is not otherwise the case, that the asset is an asset of the company;</p></content></level><level class="para1" eId="section-93-11-b"><num>(b)</num><content><p>that the asset is not one the disposal of which by the company would fall to be treated for the purposes of corporation tax as a disposal in the course of a trade carried on by the company; and</p></content></level><level class="para1" eId="section-93-11-c"><num>(c)</num><content><p>that chargeable gains that might accrue under section 116(10) of that Act (postponed charges) are to be disregarded.</p></content></level></subsection><subsection eId="section-93-12"><num>(12)</num><intro><p>In subsection (5) above references to a disposal, in relation to an asset, are references to anything which—</p></intro><level class="para1" eId="section-93-12-a"><num>(a)</num><content><p>is a disposal of that asset (within the meaning of the Taxation of Chargeable Gains Act 1992); or</p></content></level><level class="para1" eId="section-93-12-b"><num>(b)</num><content><p>would be such a disposal but for section 127 or 116(10) of that Act (reorganisations etc.);</p></content></level><wrapUp><p>and the references to the acquisition of an asset shall be construed accordingly.</p></wrapUp></subsection><subsection eId="section-93-13"><num>(13)</num><intro><p>For the purposes of this section neither—</p></intro><level class="para1" eId="section-93-13-a"><num>(a)</num><content><p>the retail prices index, nor</p></content></level><level class="para1" eId="section-93-13-b"><num>(b)</num><content><p>any similar general index of prices published by the government of any territory or by the agent of any such government,</p></content></level><wrapUp><p>shall be taken to be an index of the value of chargeable assets.</p></wrapUp></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-93-1"><num>(1)</num><content><p>This section applies in the case of any loan relationship of a company that is linked to the value of chargeable assets unless it is one the disposal of which by the company would fall to be treated as a disposal in the course of activities forming an integral part of a trade carried on by the company.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-93-2"><num>(2)</num><content><p>The amounts falling for any accounting period to be brought into account for the purposes of this Chapter in respect of the relationship shall be confined to amounts relating to interest.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-93-3"><num>(3)</num><content><p>Only an authorised accruals basis of accounting shall be used for ascertaining those amounts.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-93-4"><num>(4)</num><content><p>Amounts shall be brought into account in computing the profits of the company for the purposes of corporation tax as if the <noteRef href="#m00059" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxation of Chargeable Gains Act 1992 had effect in relation to the asset representing the relationship as it has effect in relation to an asset that does not represent a loan relationship.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-93-5"><num>(5)</num><intro><p>For the purposes of that Act the amount or value of the consideration for any disposal or acquisition of the asset shall be treated as adjusted so as to exclude so much of it as, on a just and reasonable apportionment, relates to any interest which—</p></intro><level class="para1" eId="section-93-5-a"><num>(a)</num><content><p>falls to be brought into account under subsections (2) and (3) above as accruing to any company at any time; and</p></content></level><level class="para1" eId="section-93-5-b"><num>(b)</num><content><p>in consequence of, or of the terms of, the disposal or acquisition, is not paid or payable to the company to which it is treated for the purposes of this Chapter as accruing.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-93-5-a"><num>(a)</num><content><p>falls to be brought into account under subsections (2) and (3) above as accruing to any company at any time; and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-93-5-b"><num>(b)</num><content><p>in consequence of, or of the terms of, the disposal or acquisition, is not paid or payable to the company to which it is treated for the purposes of this Chapter as accruing.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-93-6"><num>(6)</num><content><p>For the purposes of this section a loan relationship is linked to the value of chargeable assets if, in pursuance of any provision having effect for the purposes of that relationship, the amount that must be paid to discharge the money debt (whether on redemption of a security issued in relation to that debt or otherwise) is equal to the amount determined by applying a relevant percentage change in the value of chargeable assets to the amount falling for the purposes of this Chapter to be regarded as the amount of the original loan from which the money debt arises.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-93-7"><num>(7)</num><content><p>In subsection (6) above the reference to a relevant percentage change in the value of chargeable assets is a reference to the amount of the percentage change (if any) over the relevant period in the value of chargeable assets of any particular description or in any index of the value of any such assets.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-93-8"><num>(8)</num><intro><p>In subsection (7) above “the relevant period” means—</p></intro><level class="para1" eId="section-93-8-a"><num>(a)</num><content><p>the period between the time of the original loan and the discharge of the money debt; or</p></content></level><level class="para1" eId="section-93-8-b"><num>(b)</num><content><p>any other period in which almost all of that period is comprised and which differs from that period exclusively for purposes connected with giving effect to a valuation in relation to rights or liabilities under the loan relationship.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-93-8-a"><num>(a)</num><content><p>the period between the time of the original loan and the discharge of the money debt; or</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-93-8-b"><num>(b)</num><content><p>any other period in which almost all of that period is comprised and which differs from that period exclusively for purposes connected with giving effect to a valuation in relation to rights or liabilities under the loan relationship.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-93-9"><num>(9)</num><intro><p>If—</p></intro><level class="para1" eId="section-93-9-a"><num>(a)</num><content><p>there is a provision which, in the case of any loan relationship, falls within subsection (6) above,</p></content></level><level class="para1" eId="section-93-9-b"><num>(b)</num><content><p>that provision is made subject to any other provision applying to the determination of the amount payable to discharge the money debt,</p></content></level><level class="para1" eId="section-93-9-c"><num>(c)</num><content><p>that other provision is to the effect only that the amount so payable must not be less than a specified percentage of the amount falling for the purposes of this Chapter to be regarded as the amount of the original loan, and</p></content></level><level class="para1" eId="section-93-9-d"><num>(d)</num><content><p>the specified percentage is not more than 10 per cent.,</p></content></level><wrapUp><p>that other provision shall be disregarded in determining for the purposes of this section whether the relationship is linked to the value of chargeable assets.</p></wrapUp></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-93-9-a"><num>(a)</num><content><p>there is a provision which, in the case of any loan relationship, falls within subsection (6) above,</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-93-9-b"><num>(b)</num><content><p>that provision is made subject to any other provision applying to the determination of the amount payable to discharge the money debt,</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-93-9-c"><num>(c)</num><content><p>that other provision is to the effect only that the amount so payable must not be less than a specified percentage of the amount falling for the purposes of this Chapter to be regarded as the amount of the original loan, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-93-9-d"><num>(d)</num><content><p>the specified percentage is not more than 10 per cent.,</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-93-10"><num>(10)</num><content><p>For the purposes of this section an asset is a chargeable asset, in relation to a loan relationship of a company, if any gain accruing on the disposal of the asset by the company on or after 1st April 1996 would, on the assumptions specified in subsection (11) below, be a chargeable gain for the purposes of the <noteRef href="#m00060" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxation of Chargeable Gains Act 1992.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-93-11"><num>(11)</num><intro><p>Those assumptions are—</p></intro><level class="para1" eId="section-93-11-a"><num>(a)</num><content><p>where it is not otherwise the case, that the asset is an asset of the company;</p></content></level><level class="para1" eId="section-93-11-b"><num>(b)</num><content><p>that the asset is not one the disposal of which by the company would fall to be treated for the purposes of corporation tax as a disposal in the course of a trade carried on by the company; and</p></content></level><level class="para1" eId="section-93-11-c"><num>(c)</num><content><p>that chargeable gains that might accrue under section 116(10) of that Act (postponed charges) are to be disregarded.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-93-11-a"><num>(a)</num><content><p>where it is not otherwise the case, that the asset is an asset of the company;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-93-11-b"><num>(b)</num><content><p>that the asset is not one the disposal of which by the company would fall to be treated for the purposes of corporation tax as a disposal in the course of a trade carried on by the company; and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-93-11-c"><num>(c)</num><content><p>that chargeable gains that might accrue under section 116(10) of that Act (postponed charges) are to be disregarded.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-93-12"><num>(12)</num><intro><p>In subsection (5) above references to a disposal, in relation to an asset, are references to anything which—</p></intro><level class="para1" eId="section-93-12-a"><num>(a)</num><content><p>is a disposal of that asset (within the meaning of the Taxation of Chargeable Gains Act 1992); or</p></content></level><level class="para1" eId="section-93-12-b"><num>(b)</num><content><p>would be such a disposal but for section 127 or 116(10) of that Act (reorganisations etc.);</p></content></level><wrapUp><p>and the references to the acquisition of an asset shall be construed accordingly.</p></wrapUp></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-93-12-a"><num>(a)</num><content><p>is a disposal of that asset (within the meaning of the Taxation of Chargeable Gains Act 1992); or</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-93-12-b"><num>(b)</num><content><p>would be such a disposal but for section 127 or 116(10) of that Act (reorganisations etc.);</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-93-13"><num>(13)</num><intro><p>For the purposes of this section neither—</p></intro><level class="para1" eId="section-93-13-a"><num>(a)</num><content><p>the retail prices index, nor</p></content></level><level class="para1" eId="section-93-13-b"><num>(b)</num><content><p>any similar general index of prices published by the government of any territory or by the agent of any such government,</p></content></level><wrapUp><p>shall be taken to be an index of the value of chargeable assets.</p></wrapUp></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-93-13-a"><num>(a)</num><content><p>the retail prices index, nor</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-93-13-b"><num>(b)</num><content><p>any similar general index of prices published by the government of any territory or by the agent of any such government,</p></content></level>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-94"><num>94</num><heading>Indexed gilt-edged securities</heading><subsection eId="section-94-1"><num>(1)</num><content><p>In the case of any loan relationship represented by an index-linked gilt-edged security, the adjustment for which this section provides shall be made in computing the credits and debits which fall, for any accounting period, to be brought into account for the purposes of this Chapter in respect of that relationship as non-trading credits or non-trading debits.</p></content></subsection><subsection eId="section-94-2"><num>(2)</num><intro><p>The adjustment shall be made wherever—</p></intro><level class="para1" eId="section-94-2-a"><num>(a)</num><content><p>the authorised accounting method applied as respects the index-linked gilt-edged security gives credits or debits by reference to the value of the security at two different times, and</p></content></level><level class="para1" eId="section-94-2-b"><num>(b)</num><content><p>there is any change in the retail prices index between those times.</p></content></level></subsection><subsection eId="section-94-3"><num>(3)</num><content><p>Subject to subsection (4) below, the adjustment is such an adjustment of the amount which would otherwise be taken for the purposes of that accounting method to be the value of the security at the earlier time (“the opening value”) as results in the amount in fact so taken being equal to the opening value increased or, as the case may be, reduced by the same percentage as the percentage increase or reduction in the retail prices index between the earlier and the later time.</p></content></subsection><subsection eId="section-94-4"><num>(4)</num><intro><p>The Treasury may, in relation to any description of index-linked gilt-edged securities, by order provide that—</p></intro><level class="para1" eId="section-94-4-a"><num>(a)</num><content><p>there are to be no adjustments under this section; or</p></content></level><level class="para1" eId="section-94-4-b"><num>(b)</num><content><p>that an adjustment specified in the order (instead of the adjustment specified in subsection (3) above) is to be the adjustment for which this section provides.</p></content></level></subsection><subsection eId="section-94-5"><num>(5)</num><intro><p>An order under subsection (4) above—</p></intro><level class="para1" eId="section-94-5-a"><num>(a)</num><content><p>shall not have effect in relation to any gilt-edged security issued before the making of the order; but</p></content></level><level class="para1" eId="section-94-5-b"><num>(b)</num><content><p>may make different provision for different descriptions of securities.</p></content></level></subsection><subsection eId="section-94-6"><num>(6)</num><intro><p>For the purposes of this section the percentage increase or reduction in the retail prices index between any two times shall be determined by reference to the difference between—</p></intro><level class="para1" eId="section-94-6-a"><num>(a)</num><content><p>that index for the month in which the earlier time falls; and</p></content></level><level class="para1" eId="section-94-6-b"><num>(b)</num><content><p>that index for the month in which the later time falls.</p></content></level></subsection><subsection eId="section-94-7"><num>(7)</num><content><p>In this section “index-linked gilt-edged securities” means any gilt-edged securities the amounts of the payments under which are determined wholly or partly by reference to the retail prices index.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-94-1"><num>(1)</num><content><p>In the case of any loan relationship represented by an index-linked gilt-edged security, the adjustment for which this section provides shall be made in computing the credits and debits which fall, for any accounting period, to be brought into account for the purposes of this Chapter in respect of that relationship as non-trading credits or non-trading debits.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-94-2"><num>(2)</num><intro><p>The adjustment shall be made wherever—</p></intro><level class="para1" eId="section-94-2-a"><num>(a)</num><content><p>the authorised accounting method applied as respects the index-linked gilt-edged security gives credits or debits by reference to the value of the security at two different times, and</p></content></level><level class="para1" eId="section-94-2-b"><num>(b)</num><content><p>there is any change in the retail prices index between those times.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-94-2-a"><num>(a)</num><content><p>the authorised accounting method applied as respects the index-linked gilt-edged security gives credits or debits by reference to the value of the security at two different times, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-94-2-b"><num>(b)</num><content><p>there is any change in the retail prices index between those times.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-94-3"><num>(3)</num><content><p>Subject to subsection (4) below, the adjustment is such an adjustment of the amount which would otherwise be taken for the purposes of that accounting method to be the value of the security at the earlier time (“the opening value”) as results in the amount in fact so taken being equal to the opening value increased or, as the case may be, reduced by the same percentage as the percentage increase or reduction in the retail prices index between the earlier and the later time.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-94-4"><num>(4)</num><intro><p>The Treasury may, in relation to any description of index-linked gilt-edged securities, by order provide that—</p></intro><level class="para1" eId="section-94-4-a"><num>(a)</num><content><p>there are to be no adjustments under this section; or</p></content></level><level class="para1" eId="section-94-4-b"><num>(b)</num><content><p>that an adjustment specified in the order (instead of the adjustment specified in subsection (3) above) is to be the adjustment for which this section provides.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-94-4-a"><num>(a)</num><content><p>there are to be no adjustments under this section; or</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-94-4-b"><num>(b)</num><content><p>that an adjustment specified in the order (instead of the adjustment specified in subsection (3) above) is to be the adjustment for which this section provides.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-94-5"><num>(5)</num><intro><p>An order under subsection (4) above—</p></intro><level class="para1" eId="section-94-5-a"><num>(a)</num><content><p>shall not have effect in relation to any gilt-edged security issued before the making of the order; but</p></content></level><level class="para1" eId="section-94-5-b"><num>(b)</num><content><p>may make different provision for different descriptions of securities.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-94-5-a"><num>(a)</num><content><p>shall not have effect in relation to any gilt-edged security issued before the making of the order; but</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-94-5-b"><num>(b)</num><content><p>may make different provision for different descriptions of securities.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-94-6"><num>(6)</num><intro><p>For the purposes of this section the percentage increase or reduction in the retail prices index between any two times shall be determined by reference to the difference between—</p></intro><level class="para1" eId="section-94-6-a"><num>(a)</num><content><p>that index for the month in which the earlier time falls; and</p></content></level><level class="para1" eId="section-94-6-b"><num>(b)</num><content><p>that index for the month in which the later time falls.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-94-6-a"><num>(a)</num><content><p>that index for the month in which the earlier time falls; and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-94-6-b"><num>(b)</num><content><p>that index for the month in which the later time falls.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-94-7"><num>(7)</num><content><p>In this section “index-linked gilt-edged securities” means any gilt-edged securities the amounts of the payments under which are determined wholly or partly by reference to the retail prices index.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-95"><num>95</num><heading>Gilt strips</heading><subsection eId="section-95-1"><num>(1)</num><content><p>This section has effect for the purposes of the application of an authorised accruals basis of accounting as respects a loan relationship represented by a gilt-edged security or a strip of a gilt-edged security.</p></content></subsection><subsection eId="section-95-2"><num>(2)</num><intro><p>Where a gilt-edged security is exchanged by any person for strips of that security—</p></intro><level class="para1" eId="section-95-2-a"><num>(a)</num><content><p>the security shall be deemed to have been redeemed at the time of the exchange by the payment to that person of its market value; and</p></content></level><level class="para1" eId="section-95-2-b"><num>(b)</num><content><p>that person shall be deemed to have acquired each strip for the amount which bears the same proportion to that market value as is borne by the market value of the strip to the aggregate of the market values of all the strips received in exchange for the security.</p></content></level></subsection><subsection eId="section-95-3"><num>(3)</num><intro><p>Where strips of a gilt-edged security are consolidated into a single gilt-edged security by being exchanged by any person for that security—</p></intro><level class="para1" eId="section-95-3-a"><num>(a)</num><content><p>each of the strips shall be deemed to have been redeemed at the time of the exchange by the payment to that person of the amount equal to its market value; and</p></content></level><level class="para1" eId="section-95-3-b"><num>(b)</num><content><p>that person shall be deemed to have acquired the security received in the exchange for the amount equal to the aggregate of the market values of the strips given in exchange for the security.</p></content></level></subsection><subsection eId="section-95-4"><num>(4)</num><content><p>References in this section to the market value of a security given or received in exchange for another are references to its market value at the time of the exchange.</p></content></subsection><subsection eId="section-95-5"><num>(5)</num><content><p>Without prejudice to the generality of any power conferred by section 202 below, the Treasury may by regulations make provision for the purposes of this section as to the manner of determining the market value at any time of any gilt-edged security (including any strip).</p></content></subsection><subsection eId="section-95-6"><num>(6)</num><intro><p>Regulations under subsection (5) above may—</p></intro><level class="para1" eId="section-95-6-a"><num>(a)</num><content><p>make different provision for different cases; and</p></content></level><level class="para1" eId="section-95-6-b"><num>(b)</num><content><p>contain such incidental, supplemental, consequential and transitional provision as the Treasury may think fit.</p></content></level></subsection><subsection eId="section-95-7"><num>(7)</num><content><p>In this section “strip” means anything which, within the meaning of section 47 of the <noteRef href="#m00061" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1942, is a strip of a gilt-edged security.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-95-1"><num>(1)</num><content><p>This section has effect for the purposes of the application of an authorised accruals basis of accounting as respects a loan relationship represented by a gilt-edged security or a strip of a gilt-edged security.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-95-2"><num>(2)</num><intro><p>Where a gilt-edged security is exchanged by any person for strips of that security—</p></intro><level class="para1" eId="section-95-2-a"><num>(a)</num><content><p>the security shall be deemed to have been redeemed at the time of the exchange by the payment to that person of its market value; and</p></content></level><level class="para1" eId="section-95-2-b"><num>(b)</num><content><p>that person shall be deemed to have acquired each strip for the amount which bears the same proportion to that market value as is borne by the market value of the strip to the aggregate of the market values of all the strips received in exchange for the security.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-95-2-a"><num>(a)</num><content><p>the security shall be deemed to have been redeemed at the time of the exchange by the payment to that person of its market value; and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-95-2-b"><num>(b)</num><content><p>that person shall be deemed to have acquired each strip for the amount which bears the same proportion to that market value as is borne by the market value of the strip to the aggregate of the market values of all the strips received in exchange for the security.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-95-3"><num>(3)</num><intro><p>Where strips of a gilt-edged security are consolidated into a single gilt-edged security by being exchanged by any person for that security—</p></intro><level class="para1" eId="section-95-3-a"><num>(a)</num><content><p>each of the strips shall be deemed to have been redeemed at the time of the exchange by the payment to that person of the amount equal to its market value; and</p></content></level><level class="para1" eId="section-95-3-b"><num>(b)</num><content><p>that person shall be deemed to have acquired the security received in the exchange for the amount equal to the aggregate of the market values of the strips given in exchange for the security.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-95-3-a"><num>(a)</num><content><p>each of the strips shall be deemed to have been redeemed at the time of the exchange by the payment to that person of the amount equal to its market value; and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-95-3-b"><num>(b)</num><content><p>that person shall be deemed to have acquired the security received in the exchange for the amount equal to the aggregate of the market values of the strips given in exchange for the security.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-95-4"><num>(4)</num><content><p>References in this section to the market value of a security given or received in exchange for another are references to its market value at the time of the exchange.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-95-5"><num>(5)</num><content><p>Without prejudice to the generality of any power conferred by section 202 below, the Treasury may by regulations make provision for the purposes of this section as to the manner of determining the market value at any time of any gilt-edged security (including any strip).</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-95-6"><num>(6)</num><intro><p>Regulations under subsection (5) above may—</p></intro><level class="para1" eId="section-95-6-a"><num>(a)</num><content><p>make different provision for different cases; and</p></content></level><level class="para1" eId="section-95-6-b"><num>(b)</num><content><p>contain such incidental, supplemental, consequential and transitional provision as the Treasury may think fit.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-95-6-a"><num>(a)</num><content><p>make different provision for different cases; and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-95-6-b"><num>(b)</num><content><p>contain such incidental, supplemental, consequential and transitional provision as the Treasury may think fit.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-95-7"><num>(7)</num><content><p>In this section “strip” means anything which, within the meaning of section 47 of the <noteRef href="#m00061" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1942, is a strip of a gilt-edged security.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-96"><num>96</num><heading>Special rules for certain other gilts</heading><subsection eId="section-96-1"><num>(1)</num><intro><p>This section applies as respects any loan relationship of a company if—</p></intro><level class="para1" eId="section-96-1-a"><num>(a)</num><intro><p>it is represented by a security of any of the following descriptions—</p></intro><level class="para2" eId="section-96-1-a-i"><num>(i)</num><content><p>3½% Funding Stock 1999-2004; or</p></content></level><level class="para2" eId="section-96-1-a-ii"><num>(ii)</num><content><p>5½% Treasury Stock 2008-2012;</p></content></level><wrapUp><p>and</p></wrapUp></level><level class="para1" eId="section-96-1-b"><num>(b)</num><content><p>it is one to which the company is a party otherwise than in the course of activities that form an integral part of a trade carried on by the company.</p></content></level></subsection><subsection eId="section-96-2"><num>(2)</num><content><p>The amounts falling for any accounting period to be brought into account for the purposes of this Chapter in respect of a loan relationship to which this section applies shall be confined to amounts relating to interest.</p></content></subsection><subsection eId="section-96-3"><num>(3)</num><content><p>Only an authorised accruals basis of accounting shall be used for ascertaining those amounts.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-96-1"><num>(1)</num><intro><p>This section applies as respects any loan relationship of a company if—</p></intro><level class="para1" eId="section-96-1-a"><num>(a)</num><intro><p>it is represented by a security of any of the following descriptions—</p></intro><level class="para2" eId="section-96-1-a-i"><num>(i)</num><content><p>3½% Funding Stock 1999-2004; or</p></content></level><level class="para2" eId="section-96-1-a-ii"><num>(ii)</num><content><p>5½% Treasury Stock 2008-2012;</p></content></level><wrapUp><p>and</p></wrapUp></level><level class="para1" eId="section-96-1-b"><num>(b)</num><content><p>it is one to which the company is a party otherwise than in the course of activities that form an integral part of a trade carried on by the company.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-96-1-a"><num>(a)</num><intro><p>it is represented by a security of any of the following descriptions—</p></intro><level class="para2" eId="section-96-1-a-i"><num>(i)</num><content><p>3½% Funding Stock 1999-2004; or</p></content></level><level class="para2" eId="section-96-1-a-ii"><num>(ii)</num><content><p>5½% Treasury Stock 2008-2012;</p></content></level><wrapUp><p>and</p></wrapUp></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-96-1-a-i"><num>(i)</num><content><p>3½% Funding Stock 1999-2004; or</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-96-1-a-ii"><num>(ii)</num><content><p>5½% Treasury Stock 2008-2012;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-96-1-b"><num>(b)</num><content><p>it is one to which the company is a party otherwise than in the course of activities that form an integral part of a trade carried on by the company.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-96-2"><num>(2)</num><content><p>The amounts falling for any accounting period to be brought into account for the purposes of this Chapter in respect of a loan relationship to which this section applies shall be confined to amounts relating to interest.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-96-3"><num>(3)</num><content><p>Only an authorised accruals basis of accounting shall be used for ascertaining those amounts.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-97"><num>97</num><heading>Manufactured interest</heading><subsection eId="section-97-1"><num>(1)</num><intro><p>This section applies where—</p></intro><level class="para1" eId="section-97-1-a"><num>(a)</num><content><p>any amount (“manufactured interest”) is payable by or on behalf of, or to, any company under any contract or arrangements relating to the transfer of an asset representing a loan relationship; and</p></content></level><level class="para1" eId="section-97-1-b"><num>(b)</num><content><p>that amount is, or (when paid) will fall to be treated as, representative of interest under that relationship (“the real interest”).</p></content></level></subsection><subsection eId="section-97-2"><num>(2)</num><intro><p>In relation to that company the manufactured interest shall be treated for the purposes of this Chapter—</p></intro><level class="para1" eId="section-97-2-a"><num>(a)</num><content><p>as if it were interest under a loan relationship to which the company is a party; and</p></content></level><level class="para1" eId="section-97-2-b"><num>(b)</num><content><p>where that company is the company to which the manufactured interest is payable, as if that relationship were the one under which the real interest is payable.</p></content></level></subsection><subsection eId="section-97-3"><num>(3)</num><intro><p>Any question whether debits or credits falling to be brought into account in the case of any company by virtue of this section—</p></intro><level class="para1" eId="section-97-3-a"><num>(a)</num><content><p>are to be brought into account under section 82(2) above, or</p></content></level><level class="para1" eId="section-97-3-b"><num>(b)</num><content><p>are to be treated as non-trading debits or non-trading credits,</p></content></level><wrapUp><p>shall be determined according to the extent (if any) to which the manufactured interest is paid for the purposes of a trade carried on by the company or is received in the course of activities forming an integral part of such a trade.</p></wrapUp></subsection><subsection eId="section-97-4"><num>(4)</num><content><p>Where section 737A(5) of the Taxes Act 1988 (deemed manufactured payments) has effect in relation to a transaction relating to an asset representing a loan relationship so as, for the purposes of section 737 of, or Schedule 23A to, that Act, to deem there to have been a payment representative of interest under that relationship, this section shall apply as it would have applied if such a representative payment had in fact been made.</p></content></subsection><subsection eId="section-97-5"><num>(5)</num><content><p>This section does not apply where the manufactured interest is treated by virtue of paragraph 5(2)(c) or (4)(c) of Schedule 23A to the Taxes Act 1988 (manufactured interest passing through the market) as not being income of the person who receives it.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-97-1"><num>(1)</num><intro><p>This section applies where—</p></intro><level class="para1" eId="section-97-1-a"><num>(a)</num><content><p>any amount (“manufactured interest”) is payable by or on behalf of, or to, any company under any contract or arrangements relating to the transfer of an asset representing a loan relationship; and</p></content></level><level class="para1" eId="section-97-1-b"><num>(b)</num><content><p>that amount is, or (when paid) will fall to be treated as, representative of interest under that relationship (“the real interest”).</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-97-1-a"><num>(a)</num><content><p>any amount (“manufactured interest”) is payable by or on behalf of, or to, any company under any contract or arrangements relating to the transfer of an asset representing a loan relationship; and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-97-1-b"><num>(b)</num><content><p>that amount is, or (when paid) will fall to be treated as, representative of interest under that relationship (“the real interest”).</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-97-2"><num>(2)</num><intro><p>In relation to that company the manufactured interest shall be treated for the purposes of this Chapter—</p></intro><level class="para1" eId="section-97-2-a"><num>(a)</num><content><p>as if it were interest under a loan relationship to which the company is a party; and</p></content></level><level class="para1" eId="section-97-2-b"><num>(b)</num><content><p>where that company is the company to which the manufactured interest is payable, as if that relationship were the one under which the real interest is payable.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-97-2-a"><num>(a)</num><content><p>as if it were interest under a loan relationship to which the company is a party; and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-97-2-b"><num>(b)</num><content><p>where that company is the company to which the manufactured interest is payable, as if that relationship were the one under which the real interest is payable.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-97-3"><num>(3)</num><intro><p>Any question whether debits or credits falling to be brought into account in the case of any company by virtue of this section—</p></intro><level class="para1" eId="section-97-3-a"><num>(a)</num><content><p>are to be brought into account under section 82(2) above, or</p></content></level><level class="para1" eId="section-97-3-b"><num>(b)</num><content><p>are to be treated as non-trading debits or non-trading credits,</p></content></level><wrapUp><p>shall be determined according to the extent (if any) to which the manufactured interest is paid for the purposes of a trade carried on by the company or is received in the course of activities forming an integral part of such a trade.</p></wrapUp></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-97-3-a"><num>(a)</num><content><p>are to be brought into account under section 82(2) above, or</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-97-3-b"><num>(b)</num><content><p>are to be treated as non-trading debits or non-trading credits,</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-97-4"><num>(4)</num><content><p>Where section 737A(5) of the Taxes Act 1988 (deemed manufactured payments) has effect in relation to a transaction relating to an asset representing a loan relationship so as, for the purposes of section 737 of, or Schedule 23A to, that Act, to deem there to have been a payment representative of interest under that relationship, this section shall apply as it would have applied if such a representative payment had in fact been made.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-97-5"><num>(5)</num><content><p>This section does not apply where the manufactured interest is treated by virtue of paragraph 5(2)(c) or (4)(c) of Schedule 23A to the Taxes Act 1988 (manufactured interest passing through the market) as not being income of the person who receives it.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-98"><num>98</num><heading>Collective investment schemes</heading><content><p>The provisions of this Chapter have effect subject to the provisions of Schedule 10 to this Act (which makes special provision in relation to certain collective investment schemes).</p></content></section>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-99"><num>99</num><heading>Insurance companies</heading><content><p>The preceding provisions of this Chapter have effect subject to Schedule 11 to this Act (which makes special provision in relation to certain insurance companies and in relation to corporate members of Lloyd's).</p></content></section>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="part-IV-chapter-II-crossheading-miscellaneous-other-provisions"><heading>Miscellaneous other provisions</heading><section eId="section-100"><num>100</num><heading>Interest on judgments, imputed interest, etc</heading><subsection eId="section-100-1"><num>(1)</num><intro><p>This Chapter shall have effect in accordance with subsection (2) below where—</p></intro><level class="para1" eId="section-100-1-a"><num>(a)</num><content><p>interest on a money debt is payable to or by any company;</p></content></level><level class="para1" eId="section-100-1-b"><num>(b)</num><content><p>that debt is one as respects which it stands, or has stood, in the position of a creditor or debtor; and</p></content></level><level class="para1" eId="section-100-1-c"><num>(c)</num><content><p>that debt did not arise from a loan relationship.</p></content></level></subsection><subsection eId="section-100-2"><num>(2)</num><intro><p>It shall be assumed for the purposes of this Chapter—</p></intro><level class="para1" eId="section-100-2-a"><num>(a)</num><content><p>that the interest is interest payable under a loan relationship to which the company is a party; but</p></content></level><level class="para1" eId="section-100-2-b"><num>(b)</num><content><p>that the only credits or debits to be brought into account for those purposes in respect of that relationship are those relating to the interest.</p></content></level></subsection><subsection eId="section-100-3"><num>(3)</num><intro><p>References in this section to interest payable on a money debt include references to any amount which, in pursuance of sections 770 to 772 of the Taxes Act 1988 (transactions at an undervalue or overvalue), as those sections have effect by virtue of section 773(4) of that Act, falls to be treated in pursuance of those sections as—</p></intro><level class="para1" eId="section-100-3-a"><num>(a)</num><content><p>interest on a money debt; or</p></content></level><level class="para1" eId="section-100-3-b"><num>(b)</num><content><p>interest on an amount which is treated as a money debt.</p></content></level></subsection><subsection eId="section-100-4"><num>(4)</num><intro><p>Any question whether debits or credits falling to be brought into account in accordance with this section in relation to any company—</p></intro><level class="para1" eId="section-100-4-a"><num>(a)</num><content><p>are to be brought into account under section 82(2) above, or</p></content></level><level class="para1" eId="section-100-4-b"><num>(b)</num><content><p>are to be treated as non-trading debits or non-trading credits,</p></content></level><wrapUp><p>shall be determined according to the extent (if any) to which the interest in question is paid for the purposes of a trade carried on by the company or is received in the course of activities forming an integral part of such a trade, or (in the case of deemed interest) would be deemed to be so paid or received.</p></wrapUp></subsection><subsection eId="section-100-5"><num>(5)</num><content><p>This section has effect subject to the provisions of Schedules 9 and 11 to this Act.</p></content></subsection></section><section eId="section-101"><num>101</num><heading>Financial instruments</heading><subsection eId="section-101-1"><num>(1)</num><intro><p>Chapter II of Part IV of the <noteRef href="#m00062" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1994 (provisions relating to certain financial instruments) shall not apply to any profit or loss which, in accordance with that Chapter, accrues to a company for any accounting period on a qualifying contract by virtue of which the company is a party to any loan relationship if—</p></intro><level class="para1" eId="section-101-1-a"><num>(a)</num><content><p>an amount representing that profit or loss, or</p></content></level><level class="para1" eId="section-101-1-b"><num>(b)</num><content><p>an amount representing the profit or loss accruing to that company on that contract,</p></content></level><wrapUp><p>is brought into account for that period for the purposes of this Chapter.</p></wrapUp></subsection><subsection eId="section-101-2"><num>(2)</num><content><p><mod>After section 147 of that Act (qualifying contracts) there shall be inserted the following section—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>147A</num><heading>Debt contracts and options to be qualifying contracts</heading><subsection><num>(1)</num><content><p>For the purposes of this Chapter a debt contract or option is a qualifying contract as regards a qualifying company if the company becomes entitled to rights, or subject to duties, under the contract or option at any time on or after 1st April 1996.</p></content></subsection><subsection><num>(2)</num><content><p>For the purposes of this Chapter a qualifying company which is entitled to rights, or subject to duties, under a debt contract or option both immediately before and on 1st April 1996 shall be deemed to have become entitled or subject to those rights or duties on that date.</p></content></subsection><subsection><num>(3)</num><content><p>This section has effect subject to paragraph 25 of Schedule 15 to the Finance Act 1996 (transitional provisions).</p></content></subsection></section></quotedStructure></mod></p></content></subsection><subsection eId="section-101-3"><num>(3)</num><content><p>After section 150 of that Act (qualifying contracts) there shall be inserted the section set out in Schedule 12 to this Act (which defines debt contracts and options by reference to contracts and options conferring rights and duties to participate in loan relationships).</p></content></subsection><subsection eId="section-101-4"><num>(4)</num><content><p>In section 151 of that Act (provisions that may be included in contracts and options), for the words “or a currency contract or option,”, in each place where they occur, there shall be substituted “a currency contract or option or a debt contract or option”.</p></content></subsection><subsection eId="section-101-5"><num>(5)</num><content><p>In section 152(1) of that Act (disregard of provisions for relatively small payments in contracts and options), after “150” there shall be inserted “or 150A”.</p></content></subsection><subsection eId="section-101-6"><num>(6)</num><content><p><mod>In section 153(1) of that Act (qualifying payments), for the word “and” at the end of paragraph (c) there shall be substituted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(ca)</num><content><p>in relation to a qualifying contract which is a debt contract, a payment falling within section 150A(5) or (6) above; and</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection></section><section eId="section-102"><num>102</num><heading>Discounted securities: income tax provisions</heading><content><p>Schedule 13 to this Act (which, in connection with the provisions of this Chapter relating to corporation tax, makes provision for income tax purposes about discounted securities) shall have effect.</p></content></section></hcontainer>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-100"><num>100</num><heading>Interest on judgments, imputed interest, etc</heading><subsection eId="section-100-1"><num>(1)</num><intro><p>This Chapter shall have effect in accordance with subsection (2) below where—</p></intro><level class="para1" eId="section-100-1-a"><num>(a)</num><content><p>interest on a money debt is payable to or by any company;</p></content></level><level class="para1" eId="section-100-1-b"><num>(b)</num><content><p>that debt is one as respects which it stands, or has stood, in the position of a creditor or debtor; and</p></content></level><level class="para1" eId="section-100-1-c"><num>(c)</num><content><p>that debt did not arise from a loan relationship.</p></content></level></subsection><subsection eId="section-100-2"><num>(2)</num><intro><p>It shall be assumed for the purposes of this Chapter—</p></intro><level class="para1" eId="section-100-2-a"><num>(a)</num><content><p>that the interest is interest payable under a loan relationship to which the company is a party; but</p></content></level><level class="para1" eId="section-100-2-b"><num>(b)</num><content><p>that the only credits or debits to be brought into account for those purposes in respect of that relationship are those relating to the interest.</p></content></level></subsection><subsection eId="section-100-3"><num>(3)</num><intro><p>References in this section to interest payable on a money debt include references to any amount which, in pursuance of sections 770 to 772 of the Taxes Act 1988 (transactions at an undervalue or overvalue), as those sections have effect by virtue of section 773(4) of that Act, falls to be treated in pursuance of those sections as—</p></intro><level class="para1" eId="section-100-3-a"><num>(a)</num><content><p>interest on a money debt; or</p></content></level><level class="para1" eId="section-100-3-b"><num>(b)</num><content><p>interest on an amount which is treated as a money debt.</p></content></level></subsection><subsection eId="section-100-4"><num>(4)</num><intro><p>Any question whether debits or credits falling to be brought into account in accordance with this section in relation to any company—</p></intro><level class="para1" eId="section-100-4-a"><num>(a)</num><content><p>are to be brought into account under section 82(2) above, or</p></content></level><level class="para1" eId="section-100-4-b"><num>(b)</num><content><p>are to be treated as non-trading debits or non-trading credits,</p></content></level><wrapUp><p>shall be determined according to the extent (if any) to which the interest in question is paid for the purposes of a trade carried on by the company or is received in the course of activities forming an integral part of such a trade, or (in the case of deemed interest) would be deemed to be so paid or received.</p></wrapUp></subsection><subsection eId="section-100-5"><num>(5)</num><content><p>This section has effect subject to the provisions of Schedules 9 and 11 to this Act.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-100-1"><num>(1)</num><intro><p>This Chapter shall have effect in accordance with subsection (2) below where—</p></intro><level class="para1" eId="section-100-1-a"><num>(a)</num><content><p>interest on a money debt is payable to or by any company;</p></content></level><level class="para1" eId="section-100-1-b"><num>(b)</num><content><p>that debt is one as respects which it stands, or has stood, in the position of a creditor or debtor; and</p></content></level><level class="para1" eId="section-100-1-c"><num>(c)</num><content><p>that debt did not arise from a loan relationship.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-100-1-a"><num>(a)</num><content><p>interest on a money debt is payable to or by any company;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-100-1-b"><num>(b)</num><content><p>that debt is one as respects which it stands, or has stood, in the position of a creditor or debtor; and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-100-1-c"><num>(c)</num><content><p>that debt did not arise from a loan relationship.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-100-2"><num>(2)</num><intro><p>It shall be assumed for the purposes of this Chapter—</p></intro><level class="para1" eId="section-100-2-a"><num>(a)</num><content><p>that the interest is interest payable under a loan relationship to which the company is a party; but</p></content></level><level class="para1" eId="section-100-2-b"><num>(b)</num><content><p>that the only credits or debits to be brought into account for those purposes in respect of that relationship are those relating to the interest.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-100-2-a"><num>(a)</num><content><p>that the interest is interest payable under a loan relationship to which the company is a party; but</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-100-2-b"><num>(b)</num><content><p>that the only credits or debits to be brought into account for those purposes in respect of that relationship are those relating to the interest.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-100-3"><num>(3)</num><intro><p>References in this section to interest payable on a money debt include references to any amount which, in pursuance of sections 770 to 772 of the Taxes Act 1988 (transactions at an undervalue or overvalue), as those sections have effect by virtue of section 773(4) of that Act, falls to be treated in pursuance of those sections as—</p></intro><level class="para1" eId="section-100-3-a"><num>(a)</num><content><p>interest on a money debt; or</p></content></level><level class="para1" eId="section-100-3-b"><num>(b)</num><content><p>interest on an amount which is treated as a money debt.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-100-3-a"><num>(a)</num><content><p>interest on a money debt; or</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-100-3-b"><num>(b)</num><content><p>interest on an amount which is treated as a money debt.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-100-4"><num>(4)</num><intro><p>Any question whether debits or credits falling to be brought into account in accordance with this section in relation to any company—</p></intro><level class="para1" eId="section-100-4-a"><num>(a)</num><content><p>are to be brought into account under section 82(2) above, or</p></content></level><level class="para1" eId="section-100-4-b"><num>(b)</num><content><p>are to be treated as non-trading debits or non-trading credits,</p></content></level><wrapUp><p>shall be determined according to the extent (if any) to which the interest in question is paid for the purposes of a trade carried on by the company or is received in the course of activities forming an integral part of such a trade, or (in the case of deemed interest) would be deemed to be so paid or received.</p></wrapUp></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-100-4-a"><num>(a)</num><content><p>are to be brought into account under section 82(2) above, or</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-100-4-b"><num>(b)</num><content><p>are to be treated as non-trading debits or non-trading credits,</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-100-5"><num>(5)</num><content><p>This section has effect subject to the provisions of Schedules 9 and 11 to this Act.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-101"><num>101</num><heading>Financial instruments</heading><subsection eId="section-101-1"><num>(1)</num><intro><p>Chapter II of Part IV of the <noteRef href="#m00062" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1994 (provisions relating to certain financial instruments) shall not apply to any profit or loss which, in accordance with that Chapter, accrues to a company for any accounting period on a qualifying contract by virtue of which the company is a party to any loan relationship if—</p></intro><level class="para1" eId="section-101-1-a"><num>(a)</num><content><p>an amount representing that profit or loss, or</p></content></level><level class="para1" eId="section-101-1-b"><num>(b)</num><content><p>an amount representing the profit or loss accruing to that company on that contract,</p></content></level><wrapUp><p>is brought into account for that period for the purposes of this Chapter.</p></wrapUp></subsection><subsection eId="section-101-2"><num>(2)</num><content><p><mod>After section 147 of that Act (qualifying contracts) there shall be inserted the following section—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>147A</num><heading>Debt contracts and options to be qualifying contracts</heading><subsection><num>(1)</num><content><p>For the purposes of this Chapter a debt contract or option is a qualifying contract as regards a qualifying company if the company becomes entitled to rights, or subject to duties, under the contract or option at any time on or after 1st April 1996.</p></content></subsection><subsection><num>(2)</num><content><p>For the purposes of this Chapter a qualifying company which is entitled to rights, or subject to duties, under a debt contract or option both immediately before and on 1st April 1996 shall be deemed to have become entitled or subject to those rights or duties on that date.</p></content></subsection><subsection><num>(3)</num><content><p>This section has effect subject to paragraph 25 of Schedule 15 to the Finance Act 1996 (transitional provisions).</p></content></subsection></section></quotedStructure></mod></p></content></subsection><subsection eId="section-101-3"><num>(3)</num><content><p>After section 150 of that Act (qualifying contracts) there shall be inserted the section set out in Schedule 12 to this Act (which defines debt contracts and options by reference to contracts and options conferring rights and duties to participate in loan relationships).</p></content></subsection><subsection eId="section-101-4"><num>(4)</num><content><p>In section 151 of that Act (provisions that may be included in contracts and options), for the words “or a currency contract or option,”, in each place where they occur, there shall be substituted “a currency contract or option or a debt contract or option”.</p></content></subsection><subsection eId="section-101-5"><num>(5)</num><content><p>In section 152(1) of that Act (disregard of provisions for relatively small payments in contracts and options), after “150” there shall be inserted “or 150A”.</p></content></subsection><subsection eId="section-101-6"><num>(6)</num><content><p><mod>In section 153(1) of that Act (qualifying payments), for the word “and” at the end of paragraph (c) there shall be substituted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(ca)</num><content><p>in relation to a qualifying contract which is a debt contract, a payment falling within section 150A(5) or (6) above; and</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-101-1"><num>(1)</num><intro><p>Chapter II of Part IV of the <noteRef href="#m00062" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1994 (provisions relating to certain financial instruments) shall not apply to any profit or loss which, in accordance with that Chapter, accrues to a company for any accounting period on a qualifying contract by virtue of which the company is a party to any loan relationship if—</p></intro><level class="para1" eId="section-101-1-a"><num>(a)</num><content><p>an amount representing that profit or loss, or</p></content></level><level class="para1" eId="section-101-1-b"><num>(b)</num><content><p>an amount representing the profit or loss accruing to that company on that contract,</p></content></level><wrapUp><p>is brought into account for that period for the purposes of this Chapter.</p></wrapUp></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-101-1-a"><num>(a)</num><content><p>an amount representing that profit or loss, or</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-101-1-b"><num>(b)</num><content><p>an amount representing the profit or loss accruing to that company on that contract,</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-101-2"><num>(2)</num><content><p><mod>After section 147 of that Act (qualifying contracts) there shall be inserted the following section—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>147A</num><heading>Debt contracts and options to be qualifying contracts</heading><subsection><num>(1)</num><content><p>For the purposes of this Chapter a debt contract or option is a qualifying contract as regards a qualifying company if the company becomes entitled to rights, or subject to duties, under the contract or option at any time on or after 1st April 1996.</p></content></subsection><subsection><num>(2)</num><content><p>For the purposes of this Chapter a qualifying company which is entitled to rights, or subject to duties, under a debt contract or option both immediately before and on 1st April 1996 shall be deemed to have become entitled or subject to those rights or duties on that date.</p></content></subsection><subsection><num>(3)</num><content><p>This section has effect subject to paragraph 25 of Schedule 15 to the Finance Act 1996 (transitional provisions).</p></content></subsection></section></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-101-3"><num>(3)</num><content><p>After section 150 of that Act (qualifying contracts) there shall be inserted the section set out in Schedule 12 to this Act (which defines debt contracts and options by reference to contracts and options conferring rights and duties to participate in loan relationships).</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-101-4"><num>(4)</num><content><p>In section 151 of that Act (provisions that may be included in contracts and options), for the words “or a currency contract or option,”, in each place where they occur, there shall be substituted “a currency contract or option or a debt contract or option”.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-101-5"><num>(5)</num><content><p>In section 152(1) of that Act (disregard of provisions for relatively small payments in contracts and options), after “150” there shall be inserted “or 150A”.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-101-6"><num>(6)</num><content><p><mod>In section 153(1) of that Act (qualifying payments), for the word “and” at the end of paragraph (c) there shall be substituted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(ca)</num><content><p>in relation to a qualifying contract which is a debt contract, a payment falling within section 150A(5) or (6) above; and</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-102"><num>102</num><heading>Discounted securities: income tax provisions</heading><content><p>Schedule 13 to this Act (which, in connection with the provisions of this Chapter relating to corporation tax, makes provision for income tax purposes about discounted securities) shall have effect.</p></content></section>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="part-IV-chapter-II-crossheading-supplemental"><heading>Supplemental</heading><section eId="section-103"><num>103</num><heading>Interpretation of Chapter</heading><subsection eId="section-103-1"><num>(1)</num><intro><p>In this Chapter—</p></intro><hcontainer name="definition"><content><p>“authorised accounting method”, “authorised accruals basis of accounting” and “authorised mark to market basis of accounting” shall be construed in accordance with section 85 above;</p></content></hcontainer><hcontainer name="definition"><content><p>“creditor relationship”, in relation to a company, means any loan relationship of that company in the case of which it stands in the position of a creditor as respects the debt in question;</p></content></hcontainer><hcontainer name="definition"><content><p>“debt” includes a debt the amount of which falls to be ascertained by reference to matters which vary from time to time;</p></content></hcontainer><hcontainer name="definition"><content><p>“debtor relationship”, in relation to a company, means any loan relationship of that company in the case of which it stands in the position of a debtor as respects the debt in question;</p></content></hcontainer><hcontainer name="definition"><intro><p>“gilt-edged securities” means any securities which—</p></intro><level class="para1"><num>(a)</num><content><p>are gilt-edged securities for the purposes of the <noteRef href="#m00063" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxation of Chargeable Gains Act 1992; or</p></content></level><level class="para1"><num>(b)</num><content><p>will be such securities on the making of any order under paragraph 1 of Schedule 9 to that Act the making of which is anticipated in the prospectus under which they are issued;</p></content></level></hcontainer><hcontainer name="definition"><content><p>“an independent person” means a knowledgeable and willing party dealing at arm’s length;</p></content></hcontainer><hcontainer name="definition"><content><p>“international organisation” means an organisation of which two or more sovereign powers, or the governments of two or more sovereign powers, are members;</p></content></hcontainer><hcontainer name="definition"><content><p>“loan” includes any advance of money, and cognate expressions shall be construed accordingly;</p></content></hcontainer><hcontainer name="definition"><content><p>“money” shall be construed in accordance with section 81(6) above and subsection (5) below;</p></content></hcontainer><hcontainer name="definition"><content><p>“money debt” shall be construed in accordance with section 81(2) above;</p></content></hcontainer><hcontainer name="definition"><content><p>“non-trading credit” and “non-trading debit” shall be construed in accordance with section 82(3) above;</p></content></hcontainer><hcontainer name="definition"><content><p>“retail prices index” has the same meaning as it has, by virtue of section 833(2) of the Taxes Act 1988, in the Income Tax Acts;</p></content></hcontainer><hcontainer name="definition"><content><p>“share”, in relation to a company, means any share in the company under which an entitlement to receive distributions may arise.</p></content></hcontainer></subsection><subsection eId="section-103-2"><num>(2)</num><content><p>For the purposes of this Chapter a company shall be taken to be a party to a creditor relationship for the purposes of a trade carried on by that company only if it is a party to that relationship in the course of activities forming an integral part of that trade.</p></content></subsection><subsection eId="section-103-3"><num>(3)</num><intro><p>For the purposes of this Chapter, and of so much of any other enactment as contains provision by reference to which amounts fall to be brought into account for the purposes of this Chapter, activities carried on by a company in the course of—</p></intro><level class="para1" eId="section-103-3-a"><num>(a)</num><content><p>any mutual trading, or</p></content></level><level class="para1" eId="section-103-3-b"><num>(b)</num><content><p>any mutual insurance or other mutual business which is not life assurance business (within the meaning of Chapter I of Part XII of the Taxes Act 1988),</p></content></level><wrapUp><p>shall be deemed not to constitute the whole or any part of a trade.</p></wrapUp></subsection><subsection eId="section-103-4"><num>(4)</num><content><p>If, in any proceedings, any question arises whether a person is an international organisation for the purposes of any provision of this Chapter, a certificate issued by or under the authority of the Secretary of State stating any fact relevant to that question shall be conclusive evidence of that fact.</p></content></subsection><subsection eId="section-103-5"><num>(5)</num><content><p>For the purposes of this Chapter the European currency unit (as for the time being defined in Council Regulation No. 3180/78/EEC or in any Community instrument replacing it) shall be taken to be a currency other than sterling.</p></content></subsection></section><section eId="section-104"><num>104</num><heading>Minor and consequential amendments</heading><content><p>Schedule 14 to this Act (which, for the purposes of both corporation tax and income tax, makes certain minor and consequential amendments in connection with the provisions of this Chapter) shall have effect.</p></content></section><section eId="section-105"><num>105</num><heading>Commencement and transitional provisions</heading><subsection eId="section-105-1"><num>(1)</num><intro><p>Subject to Schedule 15 to this Act, this Chapter has effect—</p></intro><level class="para1" eId="section-105-1-a"><num>(a)</num><content><p>for the purposes of corporation tax, in relation to accounting periods ending after 31st March 1996; and</p></content></level><level class="para1" eId="section-105-1-b"><num>(b)</num><content><p>so far as it makes provision for the purposes of income tax, in relation to the year 1996-97 and subsequent years of assessment.</p></content></level></subsection><subsection eId="section-105-2"><num>(2)</num><content><p>Schedule 15 to this Act (which contains transitional provisions and savings in connection with the coming into force of this Chapter) shall have effect.</p></content></subsection></section></hcontainer>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-103"><num>103</num><heading>Interpretation of Chapter</heading><subsection eId="section-103-1"><num>(1)</num><intro><p>In this Chapter—</p></intro><hcontainer name="definition"><content><p>“authorised accounting method”, “authorised accruals basis of accounting” and “authorised mark to market basis of accounting” shall be construed in accordance with section 85 above;</p></content></hcontainer><hcontainer name="definition"><content><p>“creditor relationship”, in relation to a company, means any loan relationship of that company in the case of which it stands in the position of a creditor as respects the debt in question;</p></content></hcontainer><hcontainer name="definition"><content><p>“debt” includes a debt the amount of which falls to be ascertained by reference to matters which vary from time to time;</p></content></hcontainer><hcontainer name="definition"><content><p>“debtor relationship”, in relation to a company, means any loan relationship of that company in the case of which it stands in the position of a debtor as respects the debt in question;</p></content></hcontainer><hcontainer name="definition"><intro><p>“gilt-edged securities” means any securities which—</p></intro><level class="para1"><num>(a)</num><content><p>are gilt-edged securities for the purposes of the <noteRef href="#m00063" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxation of Chargeable Gains Act 1992; or</p></content></level><level class="para1"><num>(b)</num><content><p>will be such securities on the making of any order under paragraph 1 of Schedule 9 to that Act the making of which is anticipated in the prospectus under which they are issued;</p></content></level></hcontainer><hcontainer name="definition"><content><p>“an independent person” means a knowledgeable and willing party dealing at arm’s length;</p></content></hcontainer><hcontainer name="definition"><content><p>“international organisation” means an organisation of which two or more sovereign powers, or the governments of two or more sovereign powers, are members;</p></content></hcontainer><hcontainer name="definition"><content><p>“loan” includes any advance of money, and cognate expressions shall be construed accordingly;</p></content></hcontainer><hcontainer name="definition"><content><p>“money” shall be construed in accordance with section 81(6) above and subsection (5) below;</p></content></hcontainer><hcontainer name="definition"><content><p>“money debt” shall be construed in accordance with section 81(2) above;</p></content></hcontainer><hcontainer name="definition"><content><p>“non-trading credit” and “non-trading debit” shall be construed in accordance with section 82(3) above;</p></content></hcontainer><hcontainer name="definition"><content><p>“retail prices index” has the same meaning as it has, by virtue of section 833(2) of the Taxes Act 1988, in the Income Tax Acts;</p></content></hcontainer><hcontainer name="definition"><content><p>“share”, in relation to a company, means any share in the company under which an entitlement to receive distributions may arise.</p></content></hcontainer></subsection><subsection eId="section-103-2"><num>(2)</num><content><p>For the purposes of this Chapter a company shall be taken to be a party to a creditor relationship for the purposes of a trade carried on by that company only if it is a party to that relationship in the course of activities forming an integral part of that trade.</p></content></subsection><subsection eId="section-103-3"><num>(3)</num><intro><p>For the purposes of this Chapter, and of so much of any other enactment as contains provision by reference to which amounts fall to be brought into account for the purposes of this Chapter, activities carried on by a company in the course of—</p></intro><level class="para1" eId="section-103-3-a"><num>(a)</num><content><p>any mutual trading, or</p></content></level><level class="para1" eId="section-103-3-b"><num>(b)</num><content><p>any mutual insurance or other mutual business which is not life assurance business (within the meaning of Chapter I of Part XII of the Taxes Act 1988),</p></content></level><wrapUp><p>shall be deemed not to constitute the whole or any part of a trade.</p></wrapUp></subsection><subsection eId="section-103-4"><num>(4)</num><content><p>If, in any proceedings, any question arises whether a person is an international organisation for the purposes of any provision of this Chapter, a certificate issued by or under the authority of the Secretary of State stating any fact relevant to that question shall be conclusive evidence of that fact.</p></content></subsection><subsection eId="section-103-5"><num>(5)</num><content><p>For the purposes of this Chapter the European currency unit (as for the time being defined in Council Regulation No. 3180/78/EEC or in any Community instrument replacing it) shall be taken to be a currency other than sterling.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-103-1"><num>(1)</num><intro><p>In this Chapter—</p></intro><hcontainer name="definition"><content><p>“authorised accounting method”, “authorised accruals basis of accounting” and “authorised mark to market basis of accounting” shall be construed in accordance with section 85 above;</p></content></hcontainer><hcontainer name="definition"><content><p>“creditor relationship”, in relation to a company, means any loan relationship of that company in the case of which it stands in the position of a creditor as respects the debt in question;</p></content></hcontainer><hcontainer name="definition"><content><p>“debt” includes a debt the amount of which falls to be ascertained by reference to matters which vary from time to time;</p></content></hcontainer><hcontainer name="definition"><content><p>“debtor relationship”, in relation to a company, means any loan relationship of that company in the case of which it stands in the position of a debtor as respects the debt in question;</p></content></hcontainer><hcontainer name="definition"><intro><p>“gilt-edged securities” means any securities which—</p></intro><level class="para1"><num>(a)</num><content><p>are gilt-edged securities for the purposes of the <noteRef href="#m00063" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxation of Chargeable Gains Act 1992; or</p></content></level><level class="para1"><num>(b)</num><content><p>will be such securities on the making of any order under paragraph 1 of Schedule 9 to that Act the making of which is anticipated in the prospectus under which they are issued;</p></content></level></hcontainer><hcontainer name="definition"><content><p>“an independent person” means a knowledgeable and willing party dealing at arm’s length;</p></content></hcontainer><hcontainer name="definition"><content><p>“international organisation” means an organisation of which two or more sovereign powers, or the governments of two or more sovereign powers, are members;</p></content></hcontainer><hcontainer name="definition"><content><p>“loan” includes any advance of money, and cognate expressions shall be construed accordingly;</p></content></hcontainer><hcontainer name="definition"><content><p>“money” shall be construed in accordance with section 81(6) above and subsection (5) below;</p></content></hcontainer><hcontainer name="definition"><content><p>“money debt” shall be construed in accordance with section 81(2) above;</p></content></hcontainer><hcontainer name="definition"><content><p>“non-trading credit” and “non-trading debit” shall be construed in accordance with section 82(3) above;</p></content></hcontainer><hcontainer name="definition"><content><p>“retail prices index” has the same meaning as it has, by virtue of section 833(2) of the Taxes Act 1988, in the Income Tax Acts;</p></content></hcontainer><hcontainer name="definition"><content><p>“share”, in relation to a company, means any share in the company under which an entitlement to receive distributions may arise.</p></content></hcontainer></subsection>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="definition"><content><p>“money” shall be construed in accordance with section 81(6) above and subsection (5) below;</p></content></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="definition"><content><p>“money debt” shall be construed in accordance with section 81(2) above;</p></content></hcontainer>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-181-1"><num>(1)</num><content><p>In subsection (1) of section 196 of the <noteRef href="#m00133" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxation of Chargeable Gains Act 1992 (interpretation of sections 194 and 195), for “licence” there shall be substituted “UK licence”.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-181-2"><num>(2)</num><content><p><mod>After subsection (1) of section 196 of that Act there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1A)</num><intro><p>For the purposes of section 194 a licence other than a UK licence relates to an undeveloped area at any time if, at that time—</p></intro><level class="para1"><num>(a)</num><content><p>no development has actually taken place in any part of the licensed area; and</p></content></level><level class="para1"><num>(b)</num><intro><p>no condition for the carrying out of development anywhere in that area has been satisfied—</p></intro><level class="para2"><num>(i)</num><content><p>by the grant of any consent by the authorities of a country or territory exercising jurisdiction in relation to the area; or</p></content></level><level class="para2"><num>(ii)</num><content><p>by the approval or service on the licensee, by any such authorities, of any programme of development.</p></content></level></level></subsection></quotedStructure><inline name="appendText">;</inline></mod></p></content></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1"><num>(b)</num><content><p>will be such securities on the making of any order under paragraph 1 of Schedule 9 to that Act the making of which is anticipated in the prospectus under which they are issued;</p></content></level>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="definition"><content><p>“debtor relationship”, in relation to a company, means any loan relationship of that company in the case of which it stands in the position of a debtor as respects the debt in question;</p></content></hcontainer>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-103-2"><num>(2)</num><content><p>For the purposes of this Chapter a company shall be taken to be a party to a creditor relationship for the purposes of a trade carried on by that company only if it is a party to that relationship in the course of activities forming an integral part of that trade.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-103-3"><num>(3)</num><intro><p>For the purposes of this Chapter, and of so much of any other enactment as contains provision by reference to which amounts fall to be brought into account for the purposes of this Chapter, activities carried on by a company in the course of—</p></intro><level class="para1" eId="section-103-3-a"><num>(a)</num><content><p>any mutual trading, or</p></content></level><level class="para1" eId="section-103-3-b"><num>(b)</num><content><p>any mutual insurance or other mutual business which is not life assurance business (within the meaning of Chapter I of Part XII of the Taxes Act 1988),</p></content></level><wrapUp><p>shall be deemed not to constitute the whole or any part of a trade.</p></wrapUp></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-103-3-a"><num>(a)</num><content><p>any mutual trading, or</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-103-3-b"><num>(b)</num><content><p>any mutual insurance or other mutual business which is not life assurance business (within the meaning of Chapter I of Part XII of the Taxes Act 1988),</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-103-4"><num>(4)</num><content><p>If, in any proceedings, any question arises whether a person is an international organisation for the purposes of any provision of this Chapter, a certificate issued by or under the authority of the Secretary of State stating any fact relevant to that question shall be conclusive evidence of that fact.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-103-5"><num>(5)</num><content><p>For the purposes of this Chapter the European currency unit (as for the time being defined in Council Regulation No. 3180/78/EEC or in any Community instrument replacing it) shall be taken to be a currency other than sterling.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-104"><num>104</num><heading>Minor and consequential amendments</heading><content><p>Schedule 14 to this Act (which, for the purposes of both corporation tax and income tax, makes certain minor and consequential amendments in connection with the provisions of this Chapter) shall have effect.</p></content></section>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-105"><num>105</num><heading>Commencement and transitional provisions</heading><subsection eId="section-105-1"><num>(1)</num><intro><p>Subject to Schedule 15 to this Act, this Chapter has effect—</p></intro><level class="para1" eId="section-105-1-a"><num>(a)</num><content><p>for the purposes of corporation tax, in relation to accounting periods ending after 31st March 1996; and</p></content></level><level class="para1" eId="section-105-1-b"><num>(b)</num><content><p>so far as it makes provision for the purposes of income tax, in relation to the year 1996-97 and subsequent years of assessment.</p></content></level></subsection><subsection eId="section-105-2"><num>(2)</num><content><p>Schedule 15 to this Act (which contains transitional provisions and savings in connection with the coming into force of this Chapter) shall have effect.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-105-1"><num>(1)</num><intro><p>Subject to Schedule 15 to this Act, this Chapter has effect—</p></intro><level class="para1" eId="section-105-1-a"><num>(a)</num><content><p>for the purposes of corporation tax, in relation to accounting periods ending after 31st March 1996; and</p></content></level><level class="para1" eId="section-105-1-b"><num>(b)</num><content><p>so far as it makes provision for the purposes of income tax, in relation to the year 1996-97 and subsequent years of assessment.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-105-1-a"><num>(a)</num><content><p>for the purposes of corporation tax, in relation to accounting periods ending after 31st March 1996; and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-105-1-b"><num>(b)</num><content><p>so far as it makes provision for the purposes of income tax, in relation to the year 1996-97 and subsequent years of assessment.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-105-2"><num>(2)</num><content><p>Schedule 15 to this Act (which contains transitional provisions and savings in connection with the coming into force of this Chapter) shall have effect.</p></content></subsection>
<chapter xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="part-IV-chapter-III"><num>Chapter III</num><heading>Provisions relating to the Schedule E charge</heading><section eId="section-106"><num>106</num><heading>Living accommodation provided for employees</heading><subsection eId="section-106-1"><num>(1)</num><content><p>In subsection (1) of section 145 of the Taxes Act 1988 (living accommodation provided for employees), the words “and is not otherwise made the subject of any charge to him by way of income tax” shall be omitted.</p></content></subsection><subsection eId="section-106-2"><num>(2)</num><content><p><mod>After section 146 of that Act there shall be inserted the following section—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>146A</num><heading>Priority of rules applying to living accommodation</heading><subsection><num>(1)</num><content><p>This section applies where, within the meaning of section 145, living accommodation is provided in any period for any person by reason of his employment.</p></content></subsection><subsection><num>(2)</num><content><p>The question whether the employee is to be treated under section 145 or 146 as in receipt of emoluments in respect of the provision of the accommodation shall be determined before any other question whether there is an amount falling to be treated in respect of the provision of that accommodation as emoluments.</p></content></subsection><subsection><num>(3)</num><content><p>Tax under Schedule E in respect of the provision of the accommodation shall be chargeable on the employee otherwise than in pursuance of sections 145 and 146 to the extent only that the amount on which it is chargeable by virtue of those sections is exceeded by the amount on which it would be chargeable apart from those sections.</p></content></subsection></section></quotedStructure></mod></p></content></subsection><subsection eId="section-106-3"><num>(3)</num><content><p>This section applies for the year 1996-97 and subsequent years of assessment.</p></content></subsection></section><section eId="section-107"><num>107</num><heading>Beneficial loans</heading><subsection eId="section-107-1"><num>(1)</num><content><p><mod>For section 160(1B) of the Taxes Act 1988 (aggregation of loans) there shall be substituted the following subsections—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1B)</num><intro><p>Where, in relation to any year—</p></intro><level class="para1"><num>(a)</num><content><p>there are loans between the same lender and borrower which are aggregable with each other,</p></content></level><level class="para1"><num>(b)</num><content><p>the lender elects, by notice given to the inspector, for aggregation to apply in the case of that borrower, and</p></content></level><level class="para1"><num>(c)</num><content><p>that notice is given before the end of the period of 92 days after the end of that year,</p></content></level><wrapUp><p>all the loans between that lender and that borrower which are aggregable with each other shall be treated for the purposes of subsections (1) and (1A) above and Part II of Schedule 7 as a single loan.</p></wrapUp></subsection><subsection><num>(1BA)</num><intro><p>For the purposes of subsection (1B) above loans are aggregable with each other for any year where—</p></intro><level class="para1"><num>(a)</num><content><p>in the case of each of the loans, there is a time in that year, while the loan is outstanding as to any amount, when the lender is a close company and the borrower a director of that company;</p></content></level><level class="para1"><num>(b)</num><content><p>the benefit of each of the loans is obtained by reason of the borrower’s employment;</p></content></level><level class="para1"><num>(c)</num><content><p>in the case of each of the loans, there is no time in that year when a rate of interest is applied to the loan which is equal to or more than whatever is the official rate at that time;</p></content></level><level class="para1"><num>(d)</num><content><p>the loans are loans made in the same currency; and</p></content></level><level class="para1"><num>(e)</num><content><p>none of the loans is a qualifying loan.</p></content></level></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-107-2"><num>(2)</num><intro><p>In paragraph 5 of Schedule 7 to that Act (alternative method of calculation)—</p></intro><level class="para1" eId="section-107-2-a"><num>(a)</num><content><p>in sub-paragraph (1)(a), for the words from “for the purpose” to “appeal)” there shall be substituted “at a time allowed by sub-paragraph (2) below”; and</p></content></level><level class="para1" eId="section-107-2-b"><num>(b)</num><content><p>in sub-paragraph (1)(b), for “within the time allowed by sub-paragraph (2) below” there shall be substituted “at such a time”.</p></content></level></subsection><subsection eId="section-107-3"><num>(3)</num><content><p><mod>For sub-paragraph (2) of that paragraph there shall be substituted the following sub-paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><subparagraph><num>(2)</num><content><p>A notice containing a requirement or election for the purposes of sub-paragraph (1) above is allowed to be given at any time before the end of the period of 12 months beginning with the 31st January next following the relevant year.</p></content></subparagraph></quotedStructure></mod></p></content></subsection><subsection eId="section-107-4"><num>(4)</num><content><p>This section has effect for the year 1996-97 and subsequent years of assessment and applies to loans whenever made.</p></content></subsection></section><section eId="section-108"><num>108</num><heading>Incidental benefits for holders of certain offices etc</heading><subsection eId="section-108-1"><num>(1)</num><content><p><mod>After section 200 of the Taxes Act 1988 (expenses of Members of Parliament) there shall be inserted the following section—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>200AA</num><heading>Incidental benefits for holders of certain offices etc</heading><subsection><num>(1)</num><intro><p>A person holding any of the offices mentioned in subsection (2) below shall not be charged to tax under Schedule E in respect of—</p></intro><level class="para1"><num>(a)</num><content><p>any transport or subsistence provided or made available by or on behalf of the Crown to the office-holder or any member of his family or household; or</p></content></level><level class="para1"><num>(b)</num><content><p>the payment or reimbursement by or on behalf of the Crown of any expenses incurred in connection with the provision of transport or subsistence to the office-holder or any member of his family or household.</p></content></level></subsection><subsection><num>(2)</num><intro><p>Those offices are—</p></intro><level class="para1"><num>(a)</num><content><p>any office in Her Majesty’s Government in the United Kingdom, and</p></content></level><level class="para1"><num>(b)</num><content><p>any other office which is one of the offices and positions in respect of which salaries are payable under section 1 of the <noteRef href="#m00064" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Ministerial and other Salaries Act 1975 (whether or not the person holding it is a person to whom a salary is paid or payable under the Act).</p></content></level></subsection><subsection><num>(3)</num><content><p>Nothing in this section shall prevent a person from being chargeable to tax under Schedule E in respect of the benefit of a mobile telephone (within the meaning of section 159A).</p></content></subsection><subsection><num>(4)</num><content><p>References in this section to a member of the family or household of an office-holder shall be construed in accordance with section 168(4).</p></content></subsection><subsection><num>(5)</num><intro><p>References in this section to the provision of transport to any person include references to the following—</p></intro><level class="para1"><num>(a)</num><content><p>the provision or making available to that person of any car (whether with or without a driver);</p></content></level><level class="para1"><num>(b)</num><content><p>the provision of any fuel for a car provided or made available to that person;</p></content></level><level class="para1"><num>(c)</num><content><p>the provision of any other benefit in connection with a car provided or made available to that person.</p></content></level></subsection><subsection><num>(6)</num><intro><p>In this section—</p></intro><hcontainer name="definition"><content><p>“car” means any mechanically propelled road vehicle; and</p></content></hcontainer><hcontainer name="definition"><content><p>“subsistence” includes food and drink and temporary living accommodation.</p></content></hcontainer></subsection></section></quotedStructure></mod></p></content></subsection><subsection eId="section-108-2"><num>(2)</num><content><p>This section has effect for the year 1996–97 and subsequent years of assessment.</p></content></subsection></section><section eId="section-109"><num>109</num><heading>Charitable donations: payroll deduction schemes</heading><subsection eId="section-109-1"><num>(1)</num><content><p>In section 202(7) of the Taxes Act 1988 (which limits to £900 the deductions attracting relief), for “£900” there shall be substituted “£1,200”.</p></content></subsection><subsection eId="section-109-2"><num>(2)</num><content><p>This section has effect for the year 1996-97 and subsequent years of assessment.</p></content></subsection></section><section eId="section-110"><num>110</num><heading>PAYE settlement agreements</heading><content><p><mod>After section 206 of the Taxes Act 1988 there shall be inserted the following section—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>206A</num><heading>PAYE settlement agreements</heading><subsection><num>(1)</num><content><p>PAYE regulations may make provision falling within subsection (2) below about the sums which, as sums in respect of income tax under Schedule E on emoluments of a person’s employees, are to be the sums for which the employer is to be accountable to the Board from time to time.</p></content></subsection><subsection><num>(2)</num><content><p>That provision is provision under which the accountability of the employer, and the sums for which he is to be accountable, are to be determined, to such extent as may be prescribed, in accordance with an agreement between the Board and the employer (“a PAYE settlement agreement”), instead of under PAYE regulations made otherwise than by virtue of this section.</p></content></subsection><subsection><num>(3)</num><intro><p>PAYE regulations may provide for a PAYE settlement agreement to allow sums for which an employer is to be accountable to the Board in accordance with the agreement—</p></intro><level class="para1"><num>(a)</num><content><p>to be computed, in cases where there are two or more persons holding employments to which the agreement relates, by reference to a number of those persons all taken together;</p></content></level><level class="para1"><num>(b)</num><intro><p>to include sums representing income tax on an estimated amount taken, in accordance with the agreement, to be the aggregate of the cash equivalents and other amounts chargeable to tax in respect of—</p></intro><level class="para2"><num>(i)</num><content><p>taxable benefits provided or made available by reason of the employments to which the agreement relates; and</p></content></level><level class="para2"><num>(ii)</num><content><p>expenses paid to the persons holding those employments;</p></content></level><wrapUp><p>and</p></wrapUp></level><level class="para1"><num>(c)</num><content><p>to be computed in a manner under which the sums for which the employer is accountable do not necessarily represent an amount of income tax payable in respect of income which (apart from the regulations) is assessable under Schedule E on persons holding employments to which the agreement relates.</p></content></level></subsection><subsection><num>(4)</num><intro><p>PAYE regulations may provide—</p></intro><level class="para1"><num>(a)</num><content><p>for an employer who is accountable to the Board under a PAYE settlement agreement for any sum to be so accountable without that sum, or any other sum, being treated for any prescribed purpose as tax deducted from emoluments;</p></content></level><level class="para1"><num>(b)</num><content><p>for an employee to have no right to be treated as having paid tax in respect of sums for which his employer is accountable under such an agreement;</p></content></level><level class="para1"><num>(c)</num><intro><p>for an employee to be treated, except—</p></intro><level class="para2"><num>(i)</num><content><p>for the purposes of the obligations imposed on his employer by such an agreement, and</p></content></level><level class="para2"><num>(ii)</num><content><p>to such further extent as may be prescribed,</p></content></level><wrapUp><p>as relieved from any prescribed obligations of his under the Income Tax Acts in respect of emoluments from an employment to which the agreement relates; and</p></wrapUp></level><level class="para1"><num>(d)</num><content><p>for such emoluments to be treated as excluded from the employee’s income for such further purposes of the Income Tax Acts, and to such extent, as may be prescribed.</p></content></level></subsection><subsection><num>(5)</num><content><p>For the purposes of any PAYE regulations made by virtue of this section it shall be immaterial that any agreement to which they relate was entered into before the coming into force of the regulations.</p></content></subsection><subsection><num>(6)</num><intro><p>PAYE regulations made by virtue of this section may—</p></intro><level class="para1"><num>(a)</num><content><p>make different provision for different cases; and</p></content></level><level class="para1"><num>(b)</num><content><p>contain such incidental, supplemental, consequential and transitional provision as the Board may think fit.</p></content></level></subsection><subsection><num>(7)</num><intro><p>Without prejudice to the generality of subsection (6) above, the transitional provision that may be made by virtue of that subsection includes transitional provision for any year of assessment which—</p></intro><level class="para1"><num>(a)</num><content><p>for the purposes of the regulations, treats sums accounted for in that year before the coming into force of the regulations as accounted for in accordance with an agreement as respects which the regulations have effect after they come into force; and</p></content></level><level class="para1"><num>(b)</num><content><p>provides, by reference to any provision made by virtue of paragraph (a) above, for income arising in that year before the coming into force of the regulations to be treated as income in relation to which modifications of the Income Tax Acts contained in the regulations apply.</p></content></level></subsection><subsection><num>(8)</num><content><p>Without prejudice to the generality of subsection (6) above, any power of the Board to make PAYE regulations with respect to sums falling to be accounted for under such regulations shall include power to make the corresponding provision with respect to sums falling, by virtue of this section, to be accounted for in accordance with a PAYE settlement agreement.</p></content></subsection><subsection><num>(9)</num><intro><p>In this section—</p></intro><hcontainer name="definition"><content><p>“employment” means any office or employment the emoluments from which are (or, apart from any regulations made by virtue of this section, would be) assessable to tax under Schedule E, and cognate expressions shall be construed accordingly;</p></content></hcontainer><hcontainer name="definition"><content><p>“PAYE regulations” means regulations under section 203;</p></content></hcontainer><hcontainer name="definition"><content><p>“prescribed” means prescribed by PAYE regulations;</p></content></hcontainer><hcontainer name="definition"><content><p>“taxable benefit”, in relation to an employee, means any benefit provided or made available, otherwise than in the form of a payment of money, to the employee or to a person who is, for the purposes of Chapter II of this Part, a member of his family or household;</p></content></hcontainer><wrapUp><p>and references in this section to a time before the coming into force of any regulations include references to a time before the commencement of section 110 of the Finance Act 1996 (by virtue of which this section was inserted in this Act).</p></wrapUp></subsection></section></quotedStructure></mod></p></content></section></chapter>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-106"><num>106</num><heading>Living accommodation provided for employees</heading><subsection eId="section-106-1"><num>(1)</num><content><p>In subsection (1) of section 145 of the Taxes Act 1988 (living accommodation provided for employees), the words “and is not otherwise made the subject of any charge to him by way of income tax” shall be omitted.</p></content></subsection><subsection eId="section-106-2"><num>(2)</num><content><p><mod>After section 146 of that Act there shall be inserted the following section—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>146A</num><heading>Priority of rules applying to living accommodation</heading><subsection><num>(1)</num><content><p>This section applies where, within the meaning of section 145, living accommodation is provided in any period for any person by reason of his employment.</p></content></subsection><subsection><num>(2)</num><content><p>The question whether the employee is to be treated under section 145 or 146 as in receipt of emoluments in respect of the provision of the accommodation shall be determined before any other question whether there is an amount falling to be treated in respect of the provision of that accommodation as emoluments.</p></content></subsection><subsection><num>(3)</num><content><p>Tax under Schedule E in respect of the provision of the accommodation shall be chargeable on the employee otherwise than in pursuance of sections 145 and 146 to the extent only that the amount on which it is chargeable by virtue of those sections is exceeded by the amount on which it would be chargeable apart from those sections.</p></content></subsection></section></quotedStructure></mod></p></content></subsection><subsection eId="section-106-3"><num>(3)</num><content><p>This section applies for the year 1996-97 and subsequent years of assessment.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-106-1"><num>(1)</num><content><p>In subsection (1) of section 145 of the Taxes Act 1988 (living accommodation provided for employees), the words “and is not otherwise made the subject of any charge to him by way of income tax” shall be omitted.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-106-2"><num>(2)</num><content><p><mod>After section 146 of that Act there shall be inserted the following section—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>146A</num><heading>Priority of rules applying to living accommodation</heading><subsection><num>(1)</num><content><p>This section applies where, within the meaning of section 145, living accommodation is provided in any period for any person by reason of his employment.</p></content></subsection><subsection><num>(2)</num><content><p>The question whether the employee is to be treated under section 145 or 146 as in receipt of emoluments in respect of the provision of the accommodation shall be determined before any other question whether there is an amount falling to be treated in respect of the provision of that accommodation as emoluments.</p></content></subsection><subsection><num>(3)</num><content><p>Tax under Schedule E in respect of the provision of the accommodation shall be chargeable on the employee otherwise than in pursuance of sections 145 and 146 to the extent only that the amount on which it is chargeable by virtue of those sections is exceeded by the amount on which it would be chargeable apart from those sections.</p></content></subsection></section></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-106-3"><num>(3)</num><content><p>This section applies for the year 1996-97 and subsequent years of assessment.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-107"><num>107</num><heading>Beneficial loans</heading><subsection eId="section-107-1"><num>(1)</num><content><p><mod>For section 160(1B) of the Taxes Act 1988 (aggregation of loans) there shall be substituted the following subsections—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1B)</num><intro><p>Where, in relation to any year—</p></intro><level class="para1"><num>(a)</num><content><p>there are loans between the same lender and borrower which are aggregable with each other,</p></content></level><level class="para1"><num>(b)</num><content><p>the lender elects, by notice given to the inspector, for aggregation to apply in the case of that borrower, and</p></content></level><level class="para1"><num>(c)</num><content><p>that notice is given before the end of the period of 92 days after the end of that year,</p></content></level><wrapUp><p>all the loans between that lender and that borrower which are aggregable with each other shall be treated for the purposes of subsections (1) and (1A) above and Part II of Schedule 7 as a single loan.</p></wrapUp></subsection><subsection><num>(1BA)</num><intro><p>For the purposes of subsection (1B) above loans are aggregable with each other for any year where—</p></intro><level class="para1"><num>(a)</num><content><p>in the case of each of the loans, there is a time in that year, while the loan is outstanding as to any amount, when the lender is a close company and the borrower a director of that company;</p></content></level><level class="para1"><num>(b)</num><content><p>the benefit of each of the loans is obtained by reason of the borrower’s employment;</p></content></level><level class="para1"><num>(c)</num><content><p>in the case of each of the loans, there is no time in that year when a rate of interest is applied to the loan which is equal to or more than whatever is the official rate at that time;</p></content></level><level class="para1"><num>(d)</num><content><p>the loans are loans made in the same currency; and</p></content></level><level class="para1"><num>(e)</num><content><p>none of the loans is a qualifying loan.</p></content></level></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-107-2"><num>(2)</num><intro><p>In paragraph 5 of Schedule 7 to that Act (alternative method of calculation)—</p></intro><level class="para1" eId="section-107-2-a"><num>(a)</num><content><p>in sub-paragraph (1)(a), for the words from “for the purpose” to “appeal)” there shall be substituted “at a time allowed by sub-paragraph (2) below”; and</p></content></level><level class="para1" eId="section-107-2-b"><num>(b)</num><content><p>in sub-paragraph (1)(b), for “within the time allowed by sub-paragraph (2) below” there shall be substituted “at such a time”.</p></content></level></subsection><subsection eId="section-107-3"><num>(3)</num><content><p><mod>For sub-paragraph (2) of that paragraph there shall be substituted the following sub-paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><subparagraph><num>(2)</num><content><p>A notice containing a requirement or election for the purposes of sub-paragraph (1) above is allowed to be given at any time before the end of the period of 12 months beginning with the 31st January next following the relevant year.</p></content></subparagraph></quotedStructure></mod></p></content></subsection><subsection eId="section-107-4"><num>(4)</num><content><p>This section has effect for the year 1996-97 and subsequent years of assessment and applies to loans whenever made.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-107-1"><num>(1)</num><content><p><mod>For section 160(1B) of the Taxes Act 1988 (aggregation of loans) there shall be substituted the following subsections—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1B)</num><intro><p>Where, in relation to any year—</p></intro><level class="para1"><num>(a)</num><content><p>there are loans between the same lender and borrower which are aggregable with each other,</p></content></level><level class="para1"><num>(b)</num><content><p>the lender elects, by notice given to the inspector, for aggregation to apply in the case of that borrower, and</p></content></level><level class="para1"><num>(c)</num><content><p>that notice is given before the end of the period of 92 days after the end of that year,</p></content></level><wrapUp><p>all the loans between that lender and that borrower which are aggregable with each other shall be treated for the purposes of subsections (1) and (1A) above and Part II of Schedule 7 as a single loan.</p></wrapUp></subsection><subsection><num>(1BA)</num><intro><p>For the purposes of subsection (1B) above loans are aggregable with each other for any year where—</p></intro><level class="para1"><num>(a)</num><content><p>in the case of each of the loans, there is a time in that year, while the loan is outstanding as to any amount, when the lender is a close company and the borrower a director of that company;</p></content></level><level class="para1"><num>(b)</num><content><p>the benefit of each of the loans is obtained by reason of the borrower’s employment;</p></content></level><level class="para1"><num>(c)</num><content><p>in the case of each of the loans, there is no time in that year when a rate of interest is applied to the loan which is equal to or more than whatever is the official rate at that time;</p></content></level><level class="para1"><num>(d)</num><content><p>the loans are loans made in the same currency; and</p></content></level><level class="para1"><num>(e)</num><content><p>none of the loans is a qualifying loan.</p></content></level></subsection></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-107-2"><num>(2)</num><intro><p>In paragraph 5 of Schedule 7 to that Act (alternative method of calculation)—</p></intro><level class="para1" eId="section-107-2-a"><num>(a)</num><content><p>in sub-paragraph (1)(a), for the words from “for the purpose” to “appeal)” there shall be substituted “at a time allowed by sub-paragraph (2) below”; and</p></content></level><level class="para1" eId="section-107-2-b"><num>(b)</num><content><p>in sub-paragraph (1)(b), for “within the time allowed by sub-paragraph (2) below” there shall be substituted “at such a time”.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-107-2-a"><num>(a)</num><content><p>in sub-paragraph (1)(a), for the words from “for the purpose” to “appeal)” there shall be substituted “at a time allowed by sub-paragraph (2) below”; and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-107-2-b"><num>(b)</num><content><p>in sub-paragraph (1)(b), for “within the time allowed by sub-paragraph (2) below” there shall be substituted “at such a time”.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-107-3"><num>(3)</num><content><p><mod>For sub-paragraph (2) of that paragraph there shall be substituted the following sub-paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><subparagraph><num>(2)</num><content><p>A notice containing a requirement or election for the purposes of sub-paragraph (1) above is allowed to be given at any time before the end of the period of 12 months beginning with the 31st January next following the relevant year.</p></content></subparagraph></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-107-4"><num>(4)</num><content><p>This section has effect for the year 1996-97 and subsequent years of assessment and applies to loans whenever made.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-108"><num>108</num><heading>Incidental benefits for holders of certain offices etc</heading><subsection eId="section-108-1"><num>(1)</num><content><p><mod>After section 200 of the Taxes Act 1988 (expenses of Members of Parliament) there shall be inserted the following section—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>200AA</num><heading>Incidental benefits for holders of certain offices etc</heading><subsection><num>(1)</num><intro><p>A person holding any of the offices mentioned in subsection (2) below shall not be charged to tax under Schedule E in respect of—</p></intro><level class="para1"><num>(a)</num><content><p>any transport or subsistence provided or made available by or on behalf of the Crown to the office-holder or any member of his family or household; or</p></content></level><level class="para1"><num>(b)</num><content><p>the payment or reimbursement by or on behalf of the Crown of any expenses incurred in connection with the provision of transport or subsistence to the office-holder or any member of his family or household.</p></content></level></subsection><subsection><num>(2)</num><intro><p>Those offices are—</p></intro><level class="para1"><num>(a)</num><content><p>any office in Her Majesty’s Government in the United Kingdom, and</p></content></level><level class="para1"><num>(b)</num><content><p>any other office which is one of the offices and positions in respect of which salaries are payable under section 1 of the <noteRef href="#m00064" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Ministerial and other Salaries Act 1975 (whether or not the person holding it is a person to whom a salary is paid or payable under the Act).</p></content></level></subsection><subsection><num>(3)</num><content><p>Nothing in this section shall prevent a person from being chargeable to tax under Schedule E in respect of the benefit of a mobile telephone (within the meaning of section 159A).</p></content></subsection><subsection><num>(4)</num><content><p>References in this section to a member of the family or household of an office-holder shall be construed in accordance with section 168(4).</p></content></subsection><subsection><num>(5)</num><intro><p>References in this section to the provision of transport to any person include references to the following—</p></intro><level class="para1"><num>(a)</num><content><p>the provision or making available to that person of any car (whether with or without a driver);</p></content></level><level class="para1"><num>(b)</num><content><p>the provision of any fuel for a car provided or made available to that person;</p></content></level><level class="para1"><num>(c)</num><content><p>the provision of any other benefit in connection with a car provided or made available to that person.</p></content></level></subsection><subsection><num>(6)</num><intro><p>In this section—</p></intro><hcontainer name="definition"><content><p>“car” means any mechanically propelled road vehicle; and</p></content></hcontainer><hcontainer name="definition"><content><p>“subsistence” includes food and drink and temporary living accommodation.</p></content></hcontainer></subsection></section></quotedStructure></mod></p></content></subsection><subsection eId="section-108-2"><num>(2)</num><content><p>This section has effect for the year 1996–97 and subsequent years of assessment.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-108-1"><num>(1)</num><content><p><mod>After section 200 of the Taxes Act 1988 (expenses of Members of Parliament) there shall be inserted the following section—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>200AA</num><heading>Incidental benefits for holders of certain offices etc</heading><subsection><num>(1)</num><intro><p>A person holding any of the offices mentioned in subsection (2) below shall not be charged to tax under Schedule E in respect of—</p></intro><level class="para1"><num>(a)</num><content><p>any transport or subsistence provided or made available by or on behalf of the Crown to the office-holder or any member of his family or household; or</p></content></level><level class="para1"><num>(b)</num><content><p>the payment or reimbursement by or on behalf of the Crown of any expenses incurred in connection with the provision of transport or subsistence to the office-holder or any member of his family or household.</p></content></level></subsection><subsection><num>(2)</num><intro><p>Those offices are—</p></intro><level class="para1"><num>(a)</num><content><p>any office in Her Majesty’s Government in the United Kingdom, and</p></content></level><level class="para1"><num>(b)</num><content><p>any other office which is one of the offices and positions in respect of which salaries are payable under section 1 of the <noteRef href="#m00064" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Ministerial and other Salaries Act 1975 (whether or not the person holding it is a person to whom a salary is paid or payable under the Act).</p></content></level></subsection><subsection><num>(3)</num><content><p>Nothing in this section shall prevent a person from being chargeable to tax under Schedule E in respect of the benefit of a mobile telephone (within the meaning of section 159A).</p></content></subsection><subsection><num>(4)</num><content><p>References in this section to a member of the family or household of an office-holder shall be construed in accordance with section 168(4).</p></content></subsection><subsection><num>(5)</num><intro><p>References in this section to the provision of transport to any person include references to the following—</p></intro><level class="para1"><num>(a)</num><content><p>the provision or making available to that person of any car (whether with or without a driver);</p></content></level><level class="para1"><num>(b)</num><content><p>the provision of any fuel for a car provided or made available to that person;</p></content></level><level class="para1"><num>(c)</num><content><p>the provision of any other benefit in connection with a car provided or made available to that person.</p></content></level></subsection><subsection><num>(6)</num><intro><p>In this section—</p></intro><hcontainer name="definition"><content><p>“car” means any mechanically propelled road vehicle; and</p></content></hcontainer><hcontainer name="definition"><content><p>“subsistence” includes food and drink and temporary living accommodation.</p></content></hcontainer></subsection></section></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-108-2"><num>(2)</num><content><p>This section has effect for the year 1996–97 and subsequent years of assessment.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-109"><num>109</num><heading>Charitable donations: payroll deduction schemes</heading><subsection eId="section-109-1"><num>(1)</num><content><p>In section 202(7) of the Taxes Act 1988 (which limits to £900 the deductions attracting relief), for “£900” there shall be substituted “£1,200”.</p></content></subsection><subsection eId="section-109-2"><num>(2)</num><content><p>This section has effect for the year 1996-97 and subsequent years of assessment.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-109-1"><num>(1)</num><content><p>In section 202(7) of the Taxes Act 1988 (which limits to £900 the deductions attracting relief), for “£900” there shall be substituted “£1,200”.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-109-2"><num>(2)</num><content><p>This section has effect for the year 1996-97 and subsequent years of assessment.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-110"><num>110</num><heading>PAYE settlement agreements</heading><content><p><mod>After section 206 of the Taxes Act 1988 there shall be inserted the following section—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>206A</num><heading>PAYE settlement agreements</heading><subsection><num>(1)</num><content><p>PAYE regulations may make provision falling within subsection (2) below about the sums which, as sums in respect of income tax under Schedule E on emoluments of a person’s employees, are to be the sums for which the employer is to be accountable to the Board from time to time.</p></content></subsection><subsection><num>(2)</num><content><p>That provision is provision under which the accountability of the employer, and the sums for which he is to be accountable, are to be determined, to such extent as may be prescribed, in accordance with an agreement between the Board and the employer (“a PAYE settlement agreement”), instead of under PAYE regulations made otherwise than by virtue of this section.</p></content></subsection><subsection><num>(3)</num><intro><p>PAYE regulations may provide for a PAYE settlement agreement to allow sums for which an employer is to be accountable to the Board in accordance with the agreement—</p></intro><level class="para1"><num>(a)</num><content><p>to be computed, in cases where there are two or more persons holding employments to which the agreement relates, by reference to a number of those persons all taken together;</p></content></level><level class="para1"><num>(b)</num><intro><p>to include sums representing income tax on an estimated amount taken, in accordance with the agreement, to be the aggregate of the cash equivalents and other amounts chargeable to tax in respect of—</p></intro><level class="para2"><num>(i)</num><content><p>taxable benefits provided or made available by reason of the employments to which the agreement relates; and</p></content></level><level class="para2"><num>(ii)</num><content><p>expenses paid to the persons holding those employments;</p></content></level><wrapUp><p>and</p></wrapUp></level><level class="para1"><num>(c)</num><content><p>to be computed in a manner under which the sums for which the employer is accountable do not necessarily represent an amount of income tax payable in respect of income which (apart from the regulations) is assessable under Schedule E on persons holding employments to which the agreement relates.</p></content></level></subsection><subsection><num>(4)</num><intro><p>PAYE regulations may provide—</p></intro><level class="para1"><num>(a)</num><content><p>for an employer who is accountable to the Board under a PAYE settlement agreement for any sum to be so accountable without that sum, or any other sum, being treated for any prescribed purpose as tax deducted from emoluments;</p></content></level><level class="para1"><num>(b)</num><content><p>for an employee to have no right to be treated as having paid tax in respect of sums for which his employer is accountable under such an agreement;</p></content></level><level class="para1"><num>(c)</num><intro><p>for an employee to be treated, except—</p></intro><level class="para2"><num>(i)</num><content><p>for the purposes of the obligations imposed on his employer by such an agreement, and</p></content></level><level class="para2"><num>(ii)</num><content><p>to such further extent as may be prescribed,</p></content></level><wrapUp><p>as relieved from any prescribed obligations of his under the Income Tax Acts in respect of emoluments from an employment to which the agreement relates; and</p></wrapUp></level><level class="para1"><num>(d)</num><content><p>for such emoluments to be treated as excluded from the employee’s income for such further purposes of the Income Tax Acts, and to such extent, as may be prescribed.</p></content></level></subsection><subsection><num>(5)</num><content><p>For the purposes of any PAYE regulations made by virtue of this section it shall be immaterial that any agreement to which they relate was entered into before the coming into force of the regulations.</p></content></subsection><subsection><num>(6)</num><intro><p>PAYE regulations made by virtue of this section may—</p></intro><level class="para1"><num>(a)</num><content><p>make different provision for different cases; and</p></content></level><level class="para1"><num>(b)</num><content><p>contain such incidental, supplemental, consequential and transitional provision as the Board may think fit.</p></content></level></subsection><subsection><num>(7)</num><intro><p>Without prejudice to the generality of subsection (6) above, the transitional provision that may be made by virtue of that subsection includes transitional provision for any year of assessment which—</p></intro><level class="para1"><num>(a)</num><content><p>for the purposes of the regulations, treats sums accounted for in that year before the coming into force of the regulations as accounted for in accordance with an agreement as respects which the regulations have effect after they come into force; and</p></content></level><level class="para1"><num>(b)</num><content><p>provides, by reference to any provision made by virtue of paragraph (a) above, for income arising in that year before the coming into force of the regulations to be treated as income in relation to which modifications of the Income Tax Acts contained in the regulations apply.</p></content></level></subsection><subsection><num>(8)</num><content><p>Without prejudice to the generality of subsection (6) above, any power of the Board to make PAYE regulations with respect to sums falling to be accounted for under such regulations shall include power to make the corresponding provision with respect to sums falling, by virtue of this section, to be accounted for in accordance with a PAYE settlement agreement.</p></content></subsection><subsection><num>(9)</num><intro><p>In this section—</p></intro><hcontainer name="definition"><content><p>“employment” means any office or employment the emoluments from which are (or, apart from any regulations made by virtue of this section, would be) assessable to tax under Schedule E, and cognate expressions shall be construed accordingly;</p></content></hcontainer><hcontainer name="definition"><content><p>“PAYE regulations” means regulations under section 203;</p></content></hcontainer><hcontainer name="definition"><content><p>“prescribed” means prescribed by PAYE regulations;</p></content></hcontainer><hcontainer name="definition"><content><p>“taxable benefit”, in relation to an employee, means any benefit provided or made available, otherwise than in the form of a payment of money, to the employee or to a person who is, for the purposes of Chapter II of this Part, a member of his family or household;</p></content></hcontainer><wrapUp><p>and references in this section to a time before the coming into force of any regulations include references to a time before the commencement of section 110 of the Finance Act 1996 (by virtue of which this section was inserted in this Act).</p></wrapUp></subsection></section></quotedStructure></mod></p></content></section>
<chapter xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" eId="part-IV-chapter-IV"><num>Chapter IV</num><heading>Share Options, Profit Sharing and Employee Share Ownership</heading><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-IV-chapter-IV-crossheading-share-options"><heading>Share options</heading><section eId="section-111"><num>111</num><heading>Amount or value of consideration for option</heading><subsection eId="section-111-1"><num>(1)</num><content><p>Section 149A of the <noteRef href="#m00065" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxation of Chargeable Gains Act 1992 (consideration for grant of option under approved share option schemes not to be deemed to be equal to market value of option) shall be amended as follows.</p></content></subsection><subsection eId="section-111-2"><num>(2)</num><content><p>In subsection (1)(b) (restriction to approved share option schemes) for “as mentioned in section 185(1) of the Taxes Act (approved share option schemes)” there shall be substituted “by an individual by reason of his office or employment as a director or employee of that or any other body corporate”.</p></content></subsection><subsection eId="section-111-3"><num>(3)</num><content><p>In subsection (2) (grantor to be treated as if the amount or value of the consideration was its actual amount or value) for “The grantor of the option” there shall be substituted “Both the grantor of the option and the person to whom the option is granted”.</p></content></subsection><subsection eId="section-111-4"><num>(4)</num><content><p>Subsection (4) (section not to affect treatment under that Act of person to whom option granted) shall cease to have effect.</p></content></subsection><subsection eId="section-111-5"><num>(5)</num><content><p>For the side-note to that section there shall be substituted “Share option schemes.”</p></content></subsection><subsection eId="section-111-6"><num>(6)</num><content><p>This section has effect in relation to any right to acquire shares in a body corporate obtained on or after 28th November 1995 by an individual by reason of his office or employment as a director or employee of a body corporate.</p></content></subsection></section><section eId="section-112"><num>112</num><heading>Release and replacement</heading><subsection eId="section-112-1"><num>(1)</num><content><p><mod>After section 237 of the <noteRef href="#m00066" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxation of Chargeable Gains Act 1992 there shall be inserted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>237A</num><heading>Share option schemes: release and replacement of options</heading><subsection><num>(1)</num><content><p>This section applies in any case where a right to acquire shares in a body corporate (“the old right”) which was obtained by an individual by reason of his office or employment as a director or employee of that or any other body corporate is released in whole or in part for a consideration which consists of or includes the grant to that individual of another right (“the new right”) to acquire shares in that or any other body corporate.</p></content></subsection><subsection><num>(2)</num><intro><p>As respects the person to whom the new right is granted—</p></intro><level class="para1"><num>(a)</num><content><p>without prejudice to subsection (1) above, the new right shall not be regarded for the purposes of capital gains tax as consideration for the release of the old right;</p></content></level><level class="para1"><num>(b)</num><content><p>the amount or value of the consideration given by him or on his behalf for the acquisition of the new right shall be taken for the purposes of section 38(1) to be the amount or value of the consideration given by him or on his behalf for the old right; and</p></content></level><level class="para1"><num>(c)</num><content><p>any consideration paid for the acquisition of the new right shall be taken to be expenditure falling within section 38(1)(b).</p></content></level></subsection><subsection><num>(3)</num><content><p>As respects the grantor of the new right, in determining for the purposes of this Act the amount or value of the consideration received for the new right, the release of the old right shall be disregarded.</p></content></subsection></section></quotedStructure></mod></p></content></subsection><subsection eId="section-112-2"><num>(2)</num><content><p>Section 238(4) of that Act (which provides that the release of an option under an approved share option scheme in exchange for another option, in connection with a company take-over, is not to involve a disposal, and which is superseded by subsection (1) above) shall cease to have effect.</p></content></subsection><subsection eId="section-112-3"><num>(3)</num><content><p>This section has effect in relation to transactions effected on or after 28th November 1995.</p></content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-IV-chapter-IV-crossheading-savingsrelated-share-option-schemes"><heading>Savings-related share option schemes</heading><section eId="section-113"><num>113</num><heading>Exercise of rights by employees of non-participating companies</heading><subsection eId="section-113-1"><num>(1)</num><content><p><mod>In paragraph 21 of Schedule 9 to the Taxes Act 1988 (provisions which an approved savings-related share option scheme may make with respect to the exercise of rights under the scheme) in sub-paragraph (1), the word “and” immediately preceding paragraph (e) shall be omitted and after that paragraph there shall be inserted <quotedText startQuote="“">and</quotedText><quotedStructure endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><level class="para1"><num>(f)</num><intro><p>if, at the bonus date, a person who has obtained rights under the scheme holds an office or employment in a company which is not a participating company but which is—</p></intro><level class="para2"><num>(i)</num><content><p>an associated company of the grantor, or</p></content></level><level class="para2"><num>(ii)</num><content><p>a company of which the grantor has control,</p></content></level><wrapUp><p>those rights may be exercised within six months of that date.</p></wrapUp></level></quotedStructure></mod></p></content></subsection><subsection eId="section-113-2"><num>(2)</num><content><p><mod>After sub-paragraph (3) of that paragraph there shall be inserted—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><subparagraph><num>(4)</num><content><p>Where a scheme approved before the date of the passing of the Finance Act 1996 is altered before 5th May 1998 so as to include such a provision as is specified in sub-paragraph (1)(f) above, the scheme may apply the provision to rights obtained under the scheme before the alteration takes effect, whether the bonus date in relation to the rights occurred before or after the passing of that Act; and where the provision is applied to such rights by virtue of this sub-paragraph, its application to such rights shall not itself be regarded as the acquisition of a right for the purposes of this Schedule.</p><p>This sub-paragraph has effect subject to paragraph 4 above.</p></content></subparagraph></quotedStructure></mod></p></content></subsection><subsection eId="section-113-3"><num>(3)</num><content><p>In paragraph 26(3) of that Schedule (only directors or employees of grantor or participating company to be eligible to participate, except as provided by paragraph 19 or pursuant to such a provision as is referred to in paragraph 21(1)(e)) after “21(1)(e)” there shall be inserted “or (f)”.</p></content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-IV-chapter-IV-crossheading-other-share-option-schemes"><heading>Other share option schemes</heading><section eId="section-114"><num>114</num><heading>Requirements to be satisfied by approved schemes</heading><subsection eId="section-114-1"><num>(1)</num><content><p>Part IV of Schedule 9 to the Taxes Act 1988 (requirements applicable to approved share option schemes which are not savings-related) shall be amended in accordance with subsections (2) and (3) below.</p></content></subsection><subsection eId="section-114-2"><num>(2)</num><intro><p>In paragraph 28 (scheme must impose limit on aggregate market value of shares which may be acquired in pursuance of rights obtained under the scheme or certain related schemes)—</p></intro><level class="para1" eId="section-114-2-a"><num>(a)</num><content><p>in sub-paragraph (1) (aggregate market value of shares not to exceed the appropriate limit) for “the appropriate limit” there shall be substituted “£30,000”; and</p></content></level><level class="para1" eId="section-114-2-b"><num>(b)</num><content><p>sub-paragraphs (2) and (4) (meaning of the appropriate limit and, for the purposes of that definition, the relevant emoluments) shall cease to have effect.</p></content></level></subsection><subsection eId="section-114-3"><num>(3)</num><content><p><mod>In paragraph 29 (price at which shares may be acquired to be stated and to be not manifestly less than the market value, or, in certain circumstances, 85 per cent. of the market value, of shares of the same class) for sub-paragraphs (1) to (6) there shall be substituted—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><subparagraph><num>(1)</num><intro><p>The price at which scheme shares may be acquired by the exercise of a right obtained under the scheme—</p></intro><level class="para1"><num>(a)</num><content><p>must be stated at the time the right is obtained, and</p></content></level><level class="para1"><num>(b)</num><content><p>must not be manifestly less than the market value of shares of the same class at that time or, if the Board and the grantor agree in writing, at such earlier time or times as may be provided in the agreement.</p></content></level></subparagraph></quotedStructure></mod></p></content></subsection><subsection eId="section-114-4"><num>(4)</num><content><p>Section 185 of the Taxes Act 1988 (approved share option schemes) shall be amended in accordance with subsections (5) to (7) below.</p></content></subsection><subsection eId="section-114-5"><num>(5)</num><content><p>In subsection (2), for “Subject to subsections (6) to (6B) below” there shall be substituted “Subject to subsection (6) below”.</p></content></subsection><subsection eId="section-114-6"><num>(6)</num><content><p><mod>For subsections (6) to (6B) there shall be substituted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(6)</num><intro><p>Where, in the case of a right obtained by a person under a scheme which is not a savings-related share option scheme, the aggregate of—</p></intro><level class="para1"><num>(a)</num><content><p>the amount or value of any consideration given by him for obtaining the right, and</p></content></level><level class="para1"><num>(b)</num><content><p>the price at which he may acquire the shares by exercising the right,</p></content></level><wrapUp><p>is less than the market value, at the time he obtains the right, of the same quantity of issued shares of the same class, he shall be chargeable to tax under Schedule E for the year of assessment in which he obtains the right on the amount of the difference; and the amount so chargeable shall be treated as earned income, whether or not it would otherwise fall to be so treated.</p></wrapUp></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-114-7"><num>(7)</num><content><p>In subsections (7) and (8) for “(6A)” there shall be substituted “(6)”.</p></content></subsection><subsection eId="section-114-8"><num>(8)</num><content><p><mod>In section 120 of the <noteRef href="#m00067" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxation of Chargeable Gains Act 1992 (increase in expenditure by reference to tax charged in relation to shares etc) in subsection (6) (which defines the applicable provision) for paragraph (b) (which refers to subsection (6A) of section 185 of the Taxes Act 1988) there shall be substituted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(b)</num><content><p>subsection (6A) of that section (as that subsection has effect in relation to rights obtained before the day on which the Finance Act 1996 was passed), or</p></content></level><level class="para1"><num>(c)</num><content><p>subsection (6) of that section (as that subsection has effect in relation to rights obtained on or after that day).</p></content></level></quotedStructure></mod></p></content></subsection><subsection eId="section-114-9"><num>(9)</num><content><p>Schedule 16 to this Act, which makes provision with respect to share option schemes approved before the day on which this Act is passed, shall have effect.</p></content></subsection><subsection eId="section-114-10"><num>(10)</num><content><p>Subsections (3) to (7) above have effect in relation to rights obtained on or after the day on which this Act is passed.</p></content></subsection></section><section eId="section-115"><num>115</num><heading>Transitional provisions</heading><subsection eId="section-115-1"><num>(1)</num><intro><p>If, during the period—</p></intro><level class="para1" eId="section-115-1-a"><num>(a)</num><content><p>beginning with 17th July 1995, and</p></content></level><level class="para1" eId="section-115-1-b"><num>(b)</num><content><p>ending with the day preceding the passing of this Act,</p></content></level><wrapUp><p>any rights have been obtained by a person under an approved share option scheme in circumstances falling within subsection (2) below, the rights shall be treated for the purposes of sections 185 to 187 of, and Schedule 9 to, the Taxes Act 1988 as being rights obtained otherwise than in accordance with the provisions of an approved share option scheme.</p></wrapUp></subsection><subsection eId="section-115-2"><num>(2)</num><content><p>The circumstances mentioned in subsection (1) above are circumstances such that, on the assumptions in subsection (3) below, there would, by virtue of paragraph 28 or 29 of Schedule 9 to the Taxes Act 1988 (limit on what may be obtained and requirements with respect to price), have been, with respect to the operation of the scheme, a contravention of any of the relevant requirements or of the scheme itself.</p></content></subsection><subsection eId="section-115-3"><num>(3)</num><intro><p>The assumptions mentioned in subsection (2) above are—</p></intro><level class="para1" eId="section-115-3-a"><num>(a)</num><content><p>that the amendments made by subsection (2) of section 114 above had effect at all times on and after 17th July 1995;</p></content></level><level class="para1" eId="section-115-3-b"><num>(b)</num><content><p>that the amendments made by subsections (3) to (7) of that section had effect in relation to rights obtained at any time on or after that date; and</p></content></level><level class="para1" eId="section-115-3-c"><num>(c)</num><content><p>that the provisions of paragraphs 1(1) and 2 to 5 of Schedule 16 to this Act had effect at all times on and after 17th July 1995, but with the substitution for references to the day on which this Act is passed of references to that date.</p></content></level></subsection><subsection eId="section-115-4"><num>(4)</num><intro><p>For the purposes of this section, rights obtained by a person on or after 17th July 1995 shall be treated as having been obtained by him before that date if—</p></intro><level class="para1" eId="section-115-4-a"><num>(a)</num><content><p>the scheme in question is one approved before that date;</p></content></level><level class="para1" eId="section-115-4-b"><num>(b)</num><content><p>an offer of the rights or an invitation to apply for them was made in writing to that person before that date; and</p></content></level><level class="para1" eId="section-115-4-c"><num>(c)</num><content><p>he obtained the rights within the period of thirty days beginning with the day on which the offer or invitation was made.</p></content></level></subsection><subsection eId="section-115-5"><num>(5)</num><intro><p>In this section—</p></intro><hcontainer name="definition"><content><p>“approved share option scheme” means an approved share option scheme, within the meaning of section 185 of the Taxes Act 1988, other than a savings-related share option scheme;</p></content></hcontainer><hcontainer name="definition"><content><p>“relevant requirements” has the meaning given in paragraph 1(1) of Schedule 9 to the Taxes Act 1988;</p></content></hcontainer><hcontainer name="definition"><content><p>“savings-related share option scheme” has the meaning given by Schedule 9 to the Taxes Act 1988.</p></content></hcontainer></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-IV-chapter-IV-crossheading-profit-sharing-schemes"><heading>Profit sharing schemes</heading><section eId="section-116"><num>116</num><heading>The release date</heading><subsection eId="section-116-1"><num>(1)</num><content><p>In section 187(2) of the Taxes Act 1988 (interpretation of sections 185 and 186 of, and Schedules 9 and 10 to, that Act) in the definition of “release date” (the fifth anniversary of the date on which shares were appropriated to a participant in a profit sharing scheme) for “fifth” there shall be substituted “third”.</p></content></subsection><subsection eId="section-116-2"><num>(2)</num><content><p>The amendment made by subsection (1) above shall have effect in relation to shares of a participant in a profit sharing scheme if the third anniversary of the appropriation of the shares to the participant occurs on or after the day on which this Act is passed.</p></content></subsection><subsection eId="section-116-3"><num>(3)</num><content><p>If the third anniversary of the appropriation of any shares to a participant in a profit sharing scheme has occurred, but the fifth anniversary of their appropriation to him has not occurred, before the passing of this Act, then, in the application of sections 186 and 187 of, and Schedules 9 and 10 to, the Taxes Act 1988 in relation to those shares, the release date shall be the day on which this Act is passed.</p></content></subsection></section><section eId="section-117"><num>117</num><heading>The appropriate percentage</heading><subsection eId="section-117-1"><num>(1)</num><content><p><mod>In Schedule 10 to the Taxes Act 1988 (further provisions relating to profit sharing schemes) for paragraph 3 (the appropriate percentage) there shall be substituted—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><paragraph class="schProv1"><num>3</num><subparagraph><num>(1)</num><content><p>For the purposes of any of the relevant provisions charging an individual to income tax under Schedule E by reason of the occurrence of an event relating to any of his shares, the “appropriate percentage” in relation to those shares is 100 per cent., unless sub-paragraph (2) below applies.</p></content></subparagraph><subparagraph><num>(2)</num><intro><p>Where the individual—</p></intro><level class="para1"><num>(a)</num><content><p>ceases to be a director or employee of the grantor or, in the case of a group scheme, a participating company as mentioned in paragraph 2(a) above, or</p></content></level><level class="para1"><num>(b)</num><content><p>reaches the relevant age,</p></content></level><wrapUp><p>before the event occurs, the “appropriate percentage” is 50 per cent., unless paragraph 6(4) below applies.</p></wrapUp></subparagraph></paragraph></quotedStructure></mod></p></content></subsection><subsection eId="section-117-2"><num>(2)</num><content><p>In section 187(8) of that Act (determination of certain values and percentages where shares are appropriated to a participant at different times) paragraph (b) (which relates to the appropriate percentage), and the word “and” immediately preceding it, shall cease to have effect.</p></content></subsection><subsection eId="section-117-3"><num>(3)</num><content><p>Subsections (1) and (2) above have effect in relation to the occurrence, on or after the day on which this Act is passed, of events by reason of whose occurrence any provision of section 186 or 187 of, or Schedule 9 or 10 to, the Taxes Act 1988 charges an individual to income tax under Schedule E.</p></content></subsection></section><section eId="section-118"><num>118</num><heading>The appropriate allowance</heading><subsection eId="section-118-1"><num>(1)</num><intro><p>In section 186(12) of the Taxes Act 1988 (determination of the appropriate allowance for the purposes of the charge to tax on capital receipts by a participant in an approved profit sharing scheme)—</p></intro><level class="para1" eId="section-118-1-a"><num>(a)</num><content><p>for “£100” there shall be substituted “£60”; and</p></content></level><level class="para1" eId="section-118-1-b"><num>(b)</num><content><p>for “five years” there shall be substituted “three years”.</p></content></level></subsection><subsection eId="section-118-2"><num>(2)</num><content><p>Subsection (1) above has effect for the year 1997-98 and subsequent years of assessment.</p></content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-IV-chapter-IV-crossheading-employee-share-ownership-trusts"><heading>Employee share ownership trusts</heading><section eId="section-119"><num>119</num><heading>Removal of requirement for at least one year’s service</heading><subsection eId="section-119-1"><num>(1)</num><content><p>In Schedule 5 to the <noteRef href="#m00068" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1989 (employee share ownership trusts) in paragraph 4(5)(a) (for a trust to be a qualifying ESOT, its beneficiaries must have been employees or directors of the company for at least one year) the words “not less than one year and” shall cease to have effect.</p></content></subsection><subsection eId="section-119-2"><num>(2)</num><content><p>This section applies to trusts established on or after the day on which this Act is passed.</p></content></subsection></section><section eId="section-120"><num>120</num><heading>Grant and exercise of share options</heading><subsection eId="section-120-1"><num>(1)</num><content><p><mod>In Schedule 5 to the <noteRef href="#m00069" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1989 (employee share ownership trusts), in paragraph 4 (the trust deed must contain provision as to the beneficiaries) after sub-paragraph (2) there shall be inserted—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><subparagraph><num>(2A)</num><intro><p>The trust deed may provide that a person is a beneficiary at a given time if at that time he is eligible to participate in a savings-related share option scheme within the meaning of Schedule 9 to the Taxes Act 1988—</p></intro><level class="para1"><num>(a)</num><content><p>which was established by a company within the founding company’s group, and</p></content></level><level class="para1"><num>(b)</num><content><p>which is approved under that Schedule.</p></content></level></subparagraph><subparagraph><num>(2B)</num><content><p>Where a trust deed contains a rule conforming with sub-paragraph (2A) above it must provide that the only powers and duties which the trustees may exercise in relation to persons who are beneficiaries by virtue only of that rule are those which may be exercised in accordance with the provisions of a scheme such as is mentioned in that sub-paragraph.</p></content></subparagraph></quotedStructure></mod></p></content></subsection><subsection eId="section-120-2"><num>(2)</num><content><p>In consequence of the amendment made by subsection (1) above, section 69 of, and Schedule 5 to, the <noteRef href="#m00070" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1989 (which respectively make provision about chargeable events in relation to the trustees of qualifying employee share ownership trusts and the requirements to be satisfied by such trusts) shall be amended in accordance with the following provisions of this section.</p></content></subsection><subsection eId="section-120-3"><num>(3)</num><intro><p>In subsection (4) of that section (meaning of “qualifying terms” for the purposes of the provision that the transfer of securities to beneficiaries is a chargeable event if it is not on qualifying terms)—</p></intro><level class="para1" eId="section-120-3-a"><num>(a)</num><content><p>in paragraph (a) (securities which are transferred at the same time must be transferred on similar terms) after “time” there shall be inserted “other than those transferred on a transfer such as is mentioned in subsection (4ZA) below”;</p></content></level><level class="para1" eId="section-120-3-b"><num>(b)</num><content><p>in paragraph (b) (securities must have been offered to all the persons who are beneficiaries), after “trust deed” there shall be inserted “by virtue of a rule which conforms with paragraph 4(2), (3) or (4) of Schedule 5 to this Act”; and</p></content></level><level class="para1" eId="section-120-3-c"><num>(c)</num><content><p>in paragraph (c) (securities must be transferred to all such beneficiaries who have accepted the offer) for “beneficiaries” there shall be substituted “persons”.</p></content></level></subsection><subsection eId="section-120-4"><num>(4)</num><content><p><mod>After subsection (4) of that section there shall be inserted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(4ZA)</num><intro><p>For the purposes of subsection (1)(b) above a transfer of securities is also made on qualifying terms if—</p></intro><level class="para1"><num>(a)</num><content><p>it is made to a person exercising a right to acquire shares, and</p></content></level><level class="para1"><num>(b)</num><intro><p>that right was obtained in accordance with the provisions of a savings-related share option scheme within the meaning of Schedule 9 to the Taxes Act 1988—</p></intro><level class="para2"><num>(i)</num><content><p>which was established by, or by a company controlled by, the company which established the trust, and</p></content></level><level class="para2"><num>(ii)</num><content><p>which is approved under that Schedule, and</p></content></level></level><level class="para1"><num>(c)</num><content><p>that right is being exercised in accordance with the provisions of that scheme, and</p></content></level><level class="para1"><num>(d)</num><content><p>the consideration for the transfer is payable to the trustees.</p></content></level></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-120-5"><num>(5)</num><content><p>In sub-paragraph (4) of paragraph 4 of that Schedule (trust deed may provide for charity to be beneficiary if there are no beneficiaries falling within a rule conforming with sub-paragraph (2) or (3)) after “sub-paragraph (2)” there shall be inserted “, (2A)”.</p></content></subsection><subsection eId="section-120-6"><num>(6)</num><content><p>In sub-paragraph (7) of that paragraph (trust deed must not provide for a person to be a beneficiary unless he falls within a rule conforming with sub-paragraph (2), (3) or (4)) after “sub-paragraph (2)” there shall be inserted “, (2A)”.</p></content></subsection><subsection eId="section-120-7"><num>(7)</num><content><p>In sub-paragraph (8) of that paragraph (trust deed must provide that person with material interest in founding company cannot be a beneficiary) after “at a particular time (the relevant time)” there shall be inserted “by virtue of a rule which conforms with sub-paragraph (2), (3) or (4) above”.</p></content></subsection><subsection eId="section-120-8"><num>(8)</num><content><p><mod>In paragraph 5(2) of that Schedule (trust deed must be so expressed that it is apparent that the general functions of the trustees are as mentioned in paragraphs (a) to (e)) after paragraph (c) there shall be inserted—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><level class="para1"><num>(cc)</num><content><p>to grant rights to acquire shares to persons who are beneficiaries under the terms of the trust deed;</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-120-9"><num>(9)</num><intro><p>In paragraph 9 of that Schedule (trust deed must provide that transfers of securities to beneficiaries must be on qualifying terms and within the qualifying period) in sub-paragraph (2) (meaning of qualifying terms)—</p></intro><level class="para1" eId="section-120-9-a"><num>(a)</num><content><p>in paragraph (a) (securities which are transferred at the same time must be transferred on similar terms) after “time” there shall be inserted “other than those transferred on a transfer such as is mentioned in sub-paragraph (2ZA) below”;</p></content></level><level class="para1" eId="section-120-9-b"><num>(b)</num><content><p>in paragraph (b) (securities must have been offered to all the persons who are beneficiaries) after “trust deed” there shall be inserted “by virtue of a rule which conforms with paragraph 4(2), (3) or (4) above”; and</p></content></level><level class="para1" eId="section-120-9-c"><num>(c)</num><content><p>in paragraph (c) (securities must be transferred to all such beneficiaries who have accepted the offer) for “beneficiaries” there shall be substituted “persons”.</p></content></level></subsection><subsection eId="section-120-10"><num>(10)</num><content><p><mod>After sub-paragraph (2) of that paragraph there shall be inserted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(2ZA)</num><intro><p>For the purposes of sub-paragraph (1) above a transfer of securities is also made on qualifying terms if—</p></intro><level class="para1"><num>(a)</num><content><p>it is made to a person exercising a right to acquire shares, and</p></content></level><level class="para1"><num>(b)</num><intro><p>that right was obtained in accordance with the provisions of a savings-related share option scheme within the meaning of Schedule 9 to the Taxes Act 1988—</p></intro><level class="para2"><num>(i)</num><content><p>which was established by, or by a company controlled by, the founding company, and</p></content></level><level class="para2"><num>(ii)</num><content><p>which is approved under that Schedule, and</p></content></level></level><level class="para1"><num>(c)</num><content><p>that right is being exercised in accordance with the provisions of that scheme, and</p></content></level><level class="para1"><num>(d)</num><content><p>the consideration for the transfer is payable to the trustees.</p></content></level></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-120-11"><num>(11)</num><intro><p>In paragraph 10 of that Schedule (trust deed must not contain features not essential or reasonably incidental to purposes mentioned in that paragraph)—</p></intro><level class="para1" eId="section-120-11-a"><num>(a)</num><content><p>after “acquiring sums and securities,” there shall be inserted “granting rights to acquire shares to persons who are eligible to participate in savings-related share option schemes approved under Schedule 9 to the Taxes Act 1988, transferring shares to such persons,”; and</p></content></level><level class="para1" eId="section-120-11-b"><num>(b)</num><content><p>for “Schedule 9 to the Taxes Act 1988” there shall be substituted “that Schedule”.</p></content></level></subsection><subsection eId="section-120-12"><num>(12)</num><content><p>This section has effect in relation to trusts established on or after the day on which this Act is passed.</p></content></subsection></section></hcontainer></chapter>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="part-IV-chapter-IV-crossheading-share-options"><heading>Share options</heading><section eId="section-111"><num>111</num><heading>Amount or value of consideration for option</heading><subsection eId="section-111-1"><num>(1)</num><content><p>Section 149A of the <noteRef href="#m00065" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxation of Chargeable Gains Act 1992 (consideration for grant of option under approved share option schemes not to be deemed to be equal to market value of option) shall be amended as follows.</p></content></subsection><subsection eId="section-111-2"><num>(2)</num><content><p>In subsection (1)(b) (restriction to approved share option schemes) for “as mentioned in section 185(1) of the Taxes Act (approved share option schemes)” there shall be substituted “by an individual by reason of his office or employment as a director or employee of that or any other body corporate”.</p></content></subsection><subsection eId="section-111-3"><num>(3)</num><content><p>In subsection (2) (grantor to be treated as if the amount or value of the consideration was its actual amount or value) for “The grantor of the option” there shall be substituted “Both the grantor of the option and the person to whom the option is granted”.</p></content></subsection><subsection eId="section-111-4"><num>(4)</num><content><p>Subsection (4) (section not to affect treatment under that Act of person to whom option granted) shall cease to have effect.</p></content></subsection><subsection eId="section-111-5"><num>(5)</num><content><p>For the side-note to that section there shall be substituted “Share option schemes.”</p></content></subsection><subsection eId="section-111-6"><num>(6)</num><content><p>This section has effect in relation to any right to acquire shares in a body corporate obtained on or after 28th November 1995 by an individual by reason of his office or employment as a director or employee of a body corporate.</p></content></subsection></section><section eId="section-112"><num>112</num><heading>Release and replacement</heading><subsection eId="section-112-1"><num>(1)</num><content><p><mod>After section 237 of the <noteRef href="#m00066" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxation of Chargeable Gains Act 1992 there shall be inserted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>237A</num><heading>Share option schemes: release and replacement of options</heading><subsection><num>(1)</num><content><p>This section applies in any case where a right to acquire shares in a body corporate (“the old right”) which was obtained by an individual by reason of his office or employment as a director or employee of that or any other body corporate is released in whole or in part for a consideration which consists of or includes the grant to that individual of another right (“the new right”) to acquire shares in that or any other body corporate.</p></content></subsection><subsection><num>(2)</num><intro><p>As respects the person to whom the new right is granted—</p></intro><level class="para1"><num>(a)</num><content><p>without prejudice to subsection (1) above, the new right shall not be regarded for the purposes of capital gains tax as consideration for the release of the old right;</p></content></level><level class="para1"><num>(b)</num><content><p>the amount or value of the consideration given by him or on his behalf for the acquisition of the new right shall be taken for the purposes of section 38(1) to be the amount or value of the consideration given by him or on his behalf for the old right; and</p></content></level><level class="para1"><num>(c)</num><content><p>any consideration paid for the acquisition of the new right shall be taken to be expenditure falling within section 38(1)(b).</p></content></level></subsection><subsection><num>(3)</num><content><p>As respects the grantor of the new right, in determining for the purposes of this Act the amount or value of the consideration received for the new right, the release of the old right shall be disregarded.</p></content></subsection></section></quotedStructure></mod></p></content></subsection><subsection eId="section-112-2"><num>(2)</num><content><p>Section 238(4) of that Act (which provides that the release of an option under an approved share option scheme in exchange for another option, in connection with a company take-over, is not to involve a disposal, and which is superseded by subsection (1) above) shall cease to have effect.</p></content></subsection><subsection eId="section-112-3"><num>(3)</num><content><p>This section has effect in relation to transactions effected on or after 28th November 1995.</p></content></subsection></section></hcontainer>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-111"><num>111</num><heading>Amount or value of consideration for option</heading><subsection eId="section-111-1"><num>(1)</num><content><p>Section 149A of the <noteRef href="#m00065" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxation of Chargeable Gains Act 1992 (consideration for grant of option under approved share option schemes not to be deemed to be equal to market value of option) shall be amended as follows.</p></content></subsection><subsection eId="section-111-2"><num>(2)</num><content><p>In subsection (1)(b) (restriction to approved share option schemes) for “as mentioned in section 185(1) of the Taxes Act (approved share option schemes)” there shall be substituted “by an individual by reason of his office or employment as a director or employee of that or any other body corporate”.</p></content></subsection><subsection eId="section-111-3"><num>(3)</num><content><p>In subsection (2) (grantor to be treated as if the amount or value of the consideration was its actual amount or value) for “The grantor of the option” there shall be substituted “Both the grantor of the option and the person to whom the option is granted”.</p></content></subsection><subsection eId="section-111-4"><num>(4)</num><content><p>Subsection (4) (section not to affect treatment under that Act of person to whom option granted) shall cease to have effect.</p></content></subsection><subsection eId="section-111-5"><num>(5)</num><content><p>For the side-note to that section there shall be substituted “Share option schemes.”</p></content></subsection><subsection eId="section-111-6"><num>(6)</num><content><p>This section has effect in relation to any right to acquire shares in a body corporate obtained on or after 28th November 1995 by an individual by reason of his office or employment as a director or employee of a body corporate.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-111-1"><num>(1)</num><content><p>Section 149A of the <noteRef href="#m00065" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxation of Chargeable Gains Act 1992 (consideration for grant of option under approved share option schemes not to be deemed to be equal to market value of option) shall be amended as follows.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-111-2"><num>(2)</num><content><p>In subsection (1)(b) (restriction to approved share option schemes) for “as mentioned in section 185(1) of the Taxes Act (approved share option schemes)” there shall be substituted “by an individual by reason of his office or employment as a director or employee of that or any other body corporate”.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-111-3"><num>(3)</num><content><p>In subsection (2) (grantor to be treated as if the amount or value of the consideration was its actual amount or value) for “The grantor of the option” there shall be substituted “Both the grantor of the option and the person to whom the option is granted”.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-111-4"><num>(4)</num><content><p>Subsection (4) (section not to affect treatment under that Act of person to whom option granted) shall cease to have effect.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-111-5"><num>(5)</num><content><p>For the side-note to that section there shall be substituted “Share option schemes.”</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-111-6"><num>(6)</num><content><p>This section has effect in relation to any right to acquire shares in a body corporate obtained on or after 28th November 1995 by an individual by reason of his office or employment as a director or employee of a body corporate.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-112"><num>112</num><heading>Release and replacement</heading><subsection eId="section-112-1"><num>(1)</num><content><p><mod>After section 237 of the <noteRef href="#m00066" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxation of Chargeable Gains Act 1992 there shall be inserted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>237A</num><heading>Share option schemes: release and replacement of options</heading><subsection><num>(1)</num><content><p>This section applies in any case where a right to acquire shares in a body corporate (“the old right”) which was obtained by an individual by reason of his office or employment as a director or employee of that or any other body corporate is released in whole or in part for a consideration which consists of or includes the grant to that individual of another right (“the new right”) to acquire shares in that or any other body corporate.</p></content></subsection><subsection><num>(2)</num><intro><p>As respects the person to whom the new right is granted—</p></intro><level class="para1"><num>(a)</num><content><p>without prejudice to subsection (1) above, the new right shall not be regarded for the purposes of capital gains tax as consideration for the release of the old right;</p></content></level><level class="para1"><num>(b)</num><content><p>the amount or value of the consideration given by him or on his behalf for the acquisition of the new right shall be taken for the purposes of section 38(1) to be the amount or value of the consideration given by him or on his behalf for the old right; and</p></content></level><level class="para1"><num>(c)</num><content><p>any consideration paid for the acquisition of the new right shall be taken to be expenditure falling within section 38(1)(b).</p></content></level></subsection><subsection><num>(3)</num><content><p>As respects the grantor of the new right, in determining for the purposes of this Act the amount or value of the consideration received for the new right, the release of the old right shall be disregarded.</p></content></subsection></section></quotedStructure></mod></p></content></subsection><subsection eId="section-112-2"><num>(2)</num><content><p>Section 238(4) of that Act (which provides that the release of an option under an approved share option scheme in exchange for another option, in connection with a company take-over, is not to involve a disposal, and which is superseded by subsection (1) above) shall cease to have effect.</p></content></subsection><subsection eId="section-112-3"><num>(3)</num><content><p>This section has effect in relation to transactions effected on or after 28th November 1995.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-112-1"><num>(1)</num><content><p><mod>After section 237 of the <noteRef href="#m00066" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxation of Chargeable Gains Act 1992 there shall be inserted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>237A</num><heading>Share option schemes: release and replacement of options</heading><subsection><num>(1)</num><content><p>This section applies in any case where a right to acquire shares in a body corporate (“the old right”) which was obtained by an individual by reason of his office or employment as a director or employee of that or any other body corporate is released in whole or in part for a consideration which consists of or includes the grant to that individual of another right (“the new right”) to acquire shares in that or any other body corporate.</p></content></subsection><subsection><num>(2)</num><intro><p>As respects the person to whom the new right is granted—</p></intro><level class="para1"><num>(a)</num><content><p>without prejudice to subsection (1) above, the new right shall not be regarded for the purposes of capital gains tax as consideration for the release of the old right;</p></content></level><level class="para1"><num>(b)</num><content><p>the amount or value of the consideration given by him or on his behalf for the acquisition of the new right shall be taken for the purposes of section 38(1) to be the amount or value of the consideration given by him or on his behalf for the old right; and</p></content></level><level class="para1"><num>(c)</num><content><p>any consideration paid for the acquisition of the new right shall be taken to be expenditure falling within section 38(1)(b).</p></content></level></subsection><subsection><num>(3)</num><content><p>As respects the grantor of the new right, in determining for the purposes of this Act the amount or value of the consideration received for the new right, the release of the old right shall be disregarded.</p></content></subsection></section></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-112-2"><num>(2)</num><content><p>Section 238(4) of that Act (which provides that the release of an option under an approved share option scheme in exchange for another option, in connection with a company take-over, is not to involve a disposal, and which is superseded by subsection (1) above) shall cease to have effect.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-112-3"><num>(3)</num><content><p>This section has effect in relation to transactions effected on or after 28th November 1995.</p></content></subsection>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="part-IV-chapter-IV-crossheading-savingsrelated-share-option-schemes"><heading>Savings-related share option schemes</heading><section eId="section-113"><num>113</num><heading>Exercise of rights by employees of non-participating companies</heading><subsection eId="section-113-1"><num>(1)</num><content><p><mod>In paragraph 21 of Schedule 9 to the Taxes Act 1988 (provisions which an approved savings-related share option scheme may make with respect to the exercise of rights under the scheme) in sub-paragraph (1), the word “and” immediately preceding paragraph (e) shall be omitted and after that paragraph there shall be inserted <quotedText startQuote="“">and</quotedText><quotedStructure endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><level class="para1"><num>(f)</num><intro><p>if, at the bonus date, a person who has obtained rights under the scheme holds an office or employment in a company which is not a participating company but which is—</p></intro><level class="para2"><num>(i)</num><content><p>an associated company of the grantor, or</p></content></level><level class="para2"><num>(ii)</num><content><p>a company of which the grantor has control,</p></content></level><wrapUp><p>those rights may be exercised within six months of that date.</p></wrapUp></level></quotedStructure></mod></p></content></subsection><subsection eId="section-113-2"><num>(2)</num><content><p><mod>After sub-paragraph (3) of that paragraph there shall be inserted—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><subparagraph><num>(4)</num><content><p>Where a scheme approved before the date of the passing of the Finance Act 1996 is altered before 5th May 1998 so as to include such a provision as is specified in sub-paragraph (1)(f) above, the scheme may apply the provision to rights obtained under the scheme before the alteration takes effect, whether the bonus date in relation to the rights occurred before or after the passing of that Act; and where the provision is applied to such rights by virtue of this sub-paragraph, its application to such rights shall not itself be regarded as the acquisition of a right for the purposes of this Schedule.</p><p>This sub-paragraph has effect subject to paragraph 4 above.</p></content></subparagraph></quotedStructure></mod></p></content></subsection><subsection eId="section-113-3"><num>(3)</num><content><p>In paragraph 26(3) of that Schedule (only directors or employees of grantor or participating company to be eligible to participate, except as provided by paragraph 19 or pursuant to such a provision as is referred to in paragraph 21(1)(e)) after “21(1)(e)” there shall be inserted “or (f)”.</p></content></subsection></section></hcontainer>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-113"><num>113</num><heading>Exercise of rights by employees of non-participating companies</heading><subsection eId="section-113-1"><num>(1)</num><content><p><mod>In paragraph 21 of Schedule 9 to the Taxes Act 1988 (provisions which an approved savings-related share option scheme may make with respect to the exercise of rights under the scheme) in sub-paragraph (1), the word “and” immediately preceding paragraph (e) shall be omitted and after that paragraph there shall be inserted <quotedText startQuote="“">and</quotedText><quotedStructure endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><level class="para1"><num>(f)</num><intro><p>if, at the bonus date, a person who has obtained rights under the scheme holds an office or employment in a company which is not a participating company but which is—</p></intro><level class="para2"><num>(i)</num><content><p>an associated company of the grantor, or</p></content></level><level class="para2"><num>(ii)</num><content><p>a company of which the grantor has control,</p></content></level><wrapUp><p>those rights may be exercised within six months of that date.</p></wrapUp></level></quotedStructure></mod></p></content></subsection><subsection eId="section-113-2"><num>(2)</num><content><p><mod>After sub-paragraph (3) of that paragraph there shall be inserted—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><subparagraph><num>(4)</num><content><p>Where a scheme approved before the date of the passing of the Finance Act 1996 is altered before 5th May 1998 so as to include such a provision as is specified in sub-paragraph (1)(f) above, the scheme may apply the provision to rights obtained under the scheme before the alteration takes effect, whether the bonus date in relation to the rights occurred before or after the passing of that Act; and where the provision is applied to such rights by virtue of this sub-paragraph, its application to such rights shall not itself be regarded as the acquisition of a right for the purposes of this Schedule.</p><p>This sub-paragraph has effect subject to paragraph 4 above.</p></content></subparagraph></quotedStructure></mod></p></content></subsection><subsection eId="section-113-3"><num>(3)</num><content><p>In paragraph 26(3) of that Schedule (only directors or employees of grantor or participating company to be eligible to participate, except as provided by paragraph 19 or pursuant to such a provision as is referred to in paragraph 21(1)(e)) after “21(1)(e)” there shall be inserted “or (f)”.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-113-1"><num>(1)</num><content><p><mod>In paragraph 21 of Schedule 9 to the Taxes Act 1988 (provisions which an approved savings-related share option scheme may make with respect to the exercise of rights under the scheme) in sub-paragraph (1), the word “and” immediately preceding paragraph (e) shall be omitted and after that paragraph there shall be inserted <quotedText startQuote="“">and</quotedText><quotedStructure endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><level class="para1"><num>(f)</num><intro><p>if, at the bonus date, a person who has obtained rights under the scheme holds an office or employment in a company which is not a participating company but which is—</p></intro><level class="para2"><num>(i)</num><content><p>an associated company of the grantor, or</p></content></level><level class="para2"><num>(ii)</num><content><p>a company of which the grantor has control,</p></content></level><wrapUp><p>those rights may be exercised within six months of that date.</p></wrapUp></level></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-113-2"><num>(2)</num><content><p><mod>After sub-paragraph (3) of that paragraph there shall be inserted—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><subparagraph><num>(4)</num><content><p>Where a scheme approved before the date of the passing of the Finance Act 1996 is altered before 5th May 1998 so as to include such a provision as is specified in sub-paragraph (1)(f) above, the scheme may apply the provision to rights obtained under the scheme before the alteration takes effect, whether the bonus date in relation to the rights occurred before or after the passing of that Act; and where the provision is applied to such rights by virtue of this sub-paragraph, its application to such rights shall not itself be regarded as the acquisition of a right for the purposes of this Schedule.</p><p>This sub-paragraph has effect subject to paragraph 4 above.</p></content></subparagraph></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-113-3"><num>(3)</num><content><p>In paragraph 26(3) of that Schedule (only directors or employees of grantor or participating company to be eligible to participate, except as provided by paragraph 19 or pursuant to such a provision as is referred to in paragraph 21(1)(e)) after “21(1)(e)” there shall be inserted “or (f)”.</p></content></subsection>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="part-IV-chapter-IV-crossheading-other-share-option-schemes"><heading>Other share option schemes</heading><section eId="section-114"><num>114</num><heading>Requirements to be satisfied by approved schemes</heading><subsection eId="section-114-1"><num>(1)</num><content><p>Part IV of Schedule 9 to the Taxes Act 1988 (requirements applicable to approved share option schemes which are not savings-related) shall be amended in accordance with subsections (2) and (3) below.</p></content></subsection><subsection eId="section-114-2"><num>(2)</num><intro><p>In paragraph 28 (scheme must impose limit on aggregate market value of shares which may be acquired in pursuance of rights obtained under the scheme or certain related schemes)—</p></intro><level class="para1" eId="section-114-2-a"><num>(a)</num><content><p>in sub-paragraph (1) (aggregate market value of shares not to exceed the appropriate limit) for “the appropriate limit” there shall be substituted “£30,000”; and</p></content></level><level class="para1" eId="section-114-2-b"><num>(b)</num><content><p>sub-paragraphs (2) and (4) (meaning of the appropriate limit and, for the purposes of that definition, the relevant emoluments) shall cease to have effect.</p></content></level></subsection><subsection eId="section-114-3"><num>(3)</num><content><p><mod>In paragraph 29 (price at which shares may be acquired to be stated and to be not manifestly less than the market value, or, in certain circumstances, 85 per cent. of the market value, of shares of the same class) for sub-paragraphs (1) to (6) there shall be substituted—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><subparagraph><num>(1)</num><intro><p>The price at which scheme shares may be acquired by the exercise of a right obtained under the scheme—</p></intro><level class="para1"><num>(a)</num><content><p>must be stated at the time the right is obtained, and</p></content></level><level class="para1"><num>(b)</num><content><p>must not be manifestly less than the market value of shares of the same class at that time or, if the Board and the grantor agree in writing, at such earlier time or times as may be provided in the agreement.</p></content></level></subparagraph></quotedStructure></mod></p></content></subsection><subsection eId="section-114-4"><num>(4)</num><content><p>Section 185 of the Taxes Act 1988 (approved share option schemes) shall be amended in accordance with subsections (5) to (7) below.</p></content></subsection><subsection eId="section-114-5"><num>(5)</num><content><p>In subsection (2), for “Subject to subsections (6) to (6B) below” there shall be substituted “Subject to subsection (6) below”.</p></content></subsection><subsection eId="section-114-6"><num>(6)</num><content><p><mod>For subsections (6) to (6B) there shall be substituted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(6)</num><intro><p>Where, in the case of a right obtained by a person under a scheme which is not a savings-related share option scheme, the aggregate of—</p></intro><level class="para1"><num>(a)</num><content><p>the amount or value of any consideration given by him for obtaining the right, and</p></content></level><level class="para1"><num>(b)</num><content><p>the price at which he may acquire the shares by exercising the right,</p></content></level><wrapUp><p>is less than the market value, at the time he obtains the right, of the same quantity of issued shares of the same class, he shall be chargeable to tax under Schedule E for the year of assessment in which he obtains the right on the amount of the difference; and the amount so chargeable shall be treated as earned income, whether or not it would otherwise fall to be so treated.</p></wrapUp></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-114-7"><num>(7)</num><content><p>In subsections (7) and (8) for “(6A)” there shall be substituted “(6)”.</p></content></subsection><subsection eId="section-114-8"><num>(8)</num><content><p><mod>In section 120 of the <noteRef href="#m00067" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxation of Chargeable Gains Act 1992 (increase in expenditure by reference to tax charged in relation to shares etc) in subsection (6) (which defines the applicable provision) for paragraph (b) (which refers to subsection (6A) of section 185 of the Taxes Act 1988) there shall be substituted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(b)</num><content><p>subsection (6A) of that section (as that subsection has effect in relation to rights obtained before the day on which the Finance Act 1996 was passed), or</p></content></level><level class="para1"><num>(c)</num><content><p>subsection (6) of that section (as that subsection has effect in relation to rights obtained on or after that day).</p></content></level></quotedStructure></mod></p></content></subsection><subsection eId="section-114-9"><num>(9)</num><content><p>Schedule 16 to this Act, which makes provision with respect to share option schemes approved before the day on which this Act is passed, shall have effect.</p></content></subsection><subsection eId="section-114-10"><num>(10)</num><content><p>Subsections (3) to (7) above have effect in relation to rights obtained on or after the day on which this Act is passed.</p></content></subsection></section><section eId="section-115"><num>115</num><heading>Transitional provisions</heading><subsection eId="section-115-1"><num>(1)</num><intro><p>If, during the period—</p></intro><level class="para1" eId="section-115-1-a"><num>(a)</num><content><p>beginning with 17th July 1995, and</p></content></level><level class="para1" eId="section-115-1-b"><num>(b)</num><content><p>ending with the day preceding the passing of this Act,</p></content></level><wrapUp><p>any rights have been obtained by a person under an approved share option scheme in circumstances falling within subsection (2) below, the rights shall be treated for the purposes of sections 185 to 187 of, and Schedule 9 to, the Taxes Act 1988 as being rights obtained otherwise than in accordance with the provisions of an approved share option scheme.</p></wrapUp></subsection><subsection eId="section-115-2"><num>(2)</num><content><p>The circumstances mentioned in subsection (1) above are circumstances such that, on the assumptions in subsection (3) below, there would, by virtue of paragraph 28 or 29 of Schedule 9 to the Taxes Act 1988 (limit on what may be obtained and requirements with respect to price), have been, with respect to the operation of the scheme, a contravention of any of the relevant requirements or of the scheme itself.</p></content></subsection><subsection eId="section-115-3"><num>(3)</num><intro><p>The assumptions mentioned in subsection (2) above are—</p></intro><level class="para1" eId="section-115-3-a"><num>(a)</num><content><p>that the amendments made by subsection (2) of section 114 above had effect at all times on and after 17th July 1995;</p></content></level><level class="para1" eId="section-115-3-b"><num>(b)</num><content><p>that the amendments made by subsections (3) to (7) of that section had effect in relation to rights obtained at any time on or after that date; and</p></content></level><level class="para1" eId="section-115-3-c"><num>(c)</num><content><p>that the provisions of paragraphs 1(1) and 2 to 5 of Schedule 16 to this Act had effect at all times on and after 17th July 1995, but with the substitution for references to the day on which this Act is passed of references to that date.</p></content></level></subsection><subsection eId="section-115-4"><num>(4)</num><intro><p>For the purposes of this section, rights obtained by a person on or after 17th July 1995 shall be treated as having been obtained by him before that date if—</p></intro><level class="para1" eId="section-115-4-a"><num>(a)</num><content><p>the scheme in question is one approved before that date;</p></content></level><level class="para1" eId="section-115-4-b"><num>(b)</num><content><p>an offer of the rights or an invitation to apply for them was made in writing to that person before that date; and</p></content></level><level class="para1" eId="section-115-4-c"><num>(c)</num><content><p>he obtained the rights within the period of thirty days beginning with the day on which the offer or invitation was made.</p></content></level></subsection><subsection eId="section-115-5"><num>(5)</num><intro><p>In this section—</p></intro><hcontainer name="definition"><content><p>“approved share option scheme” means an approved share option scheme, within the meaning of section 185 of the Taxes Act 1988, other than a savings-related share option scheme;</p></content></hcontainer><hcontainer name="definition"><content><p>“relevant requirements” has the meaning given in paragraph 1(1) of Schedule 9 to the Taxes Act 1988;</p></content></hcontainer><hcontainer name="definition"><content><p>“savings-related share option scheme” has the meaning given by Schedule 9 to the Taxes Act 1988.</p></content></hcontainer></subsection></section></hcontainer>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-114"><num>114</num><heading>Requirements to be satisfied by approved schemes</heading><subsection eId="section-114-1"><num>(1)</num><content><p>Part IV of Schedule 9 to the Taxes Act 1988 (requirements applicable to approved share option schemes which are not savings-related) shall be amended in accordance with subsections (2) and (3) below.</p></content></subsection><subsection eId="section-114-2"><num>(2)</num><intro><p>In paragraph 28 (scheme must impose limit on aggregate market value of shares which may be acquired in pursuance of rights obtained under the scheme or certain related schemes)—</p></intro><level class="para1" eId="section-114-2-a"><num>(a)</num><content><p>in sub-paragraph (1) (aggregate market value of shares not to exceed the appropriate limit) for “the appropriate limit” there shall be substituted “£30,000”; and</p></content></level><level class="para1" eId="section-114-2-b"><num>(b)</num><content><p>sub-paragraphs (2) and (4) (meaning of the appropriate limit and, for the purposes of that definition, the relevant emoluments) shall cease to have effect.</p></content></level></subsection><subsection eId="section-114-3"><num>(3)</num><content><p><mod>In paragraph 29 (price at which shares may be acquired to be stated and to be not manifestly less than the market value, or, in certain circumstances, 85 per cent. of the market value, of shares of the same class) for sub-paragraphs (1) to (6) there shall be substituted—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><subparagraph><num>(1)</num><intro><p>The price at which scheme shares may be acquired by the exercise of a right obtained under the scheme—</p></intro><level class="para1"><num>(a)</num><content><p>must be stated at the time the right is obtained, and</p></content></level><level class="para1"><num>(b)</num><content><p>must not be manifestly less than the market value of shares of the same class at that time or, if the Board and the grantor agree in writing, at such earlier time or times as may be provided in the agreement.</p></content></level></subparagraph></quotedStructure></mod></p></content></subsection><subsection eId="section-114-4"><num>(4)</num><content><p>Section 185 of the Taxes Act 1988 (approved share option schemes) shall be amended in accordance with subsections (5) to (7) below.</p></content></subsection><subsection eId="section-114-5"><num>(5)</num><content><p>In subsection (2), for “Subject to subsections (6) to (6B) below” there shall be substituted “Subject to subsection (6) below”.</p></content></subsection><subsection eId="section-114-6"><num>(6)</num><content><p><mod>For subsections (6) to (6B) there shall be substituted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(6)</num><intro><p>Where, in the case of a right obtained by a person under a scheme which is not a savings-related share option scheme, the aggregate of—</p></intro><level class="para1"><num>(a)</num><content><p>the amount or value of any consideration given by him for obtaining the right, and</p></content></level><level class="para1"><num>(b)</num><content><p>the price at which he may acquire the shares by exercising the right,</p></content></level><wrapUp><p>is less than the market value, at the time he obtains the right, of the same quantity of issued shares of the same class, he shall be chargeable to tax under Schedule E for the year of assessment in which he obtains the right on the amount of the difference; and the amount so chargeable shall be treated as earned income, whether or not it would otherwise fall to be so treated.</p></wrapUp></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-114-7"><num>(7)</num><content><p>In subsections (7) and (8) for “(6A)” there shall be substituted “(6)”.</p></content></subsection><subsection eId="section-114-8"><num>(8)</num><content><p><mod>In section 120 of the <noteRef href="#m00067" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxation of Chargeable Gains Act 1992 (increase in expenditure by reference to tax charged in relation to shares etc) in subsection (6) (which defines the applicable provision) for paragraph (b) (which refers to subsection (6A) of section 185 of the Taxes Act 1988) there shall be substituted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(b)</num><content><p>subsection (6A) of that section (as that subsection has effect in relation to rights obtained before the day on which the Finance Act 1996 was passed), or</p></content></level><level class="para1"><num>(c)</num><content><p>subsection (6) of that section (as that subsection has effect in relation to rights obtained on or after that day).</p></content></level></quotedStructure></mod></p></content></subsection><subsection eId="section-114-9"><num>(9)</num><content><p>Schedule 16 to this Act, which makes provision with respect to share option schemes approved before the day on which this Act is passed, shall have effect.</p></content></subsection><subsection eId="section-114-10"><num>(10)</num><content><p>Subsections (3) to (7) above have effect in relation to rights obtained on or after the day on which this Act is passed.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-114-1"><num>(1)</num><content><p>Part IV of Schedule 9 to the Taxes Act 1988 (requirements applicable to approved share option schemes which are not savings-related) shall be amended in accordance with subsections (2) and (3) below.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-114-2"><num>(2)</num><intro><p>In paragraph 28 (scheme must impose limit on aggregate market value of shares which may be acquired in pursuance of rights obtained under the scheme or certain related schemes)—</p></intro><level class="para1" eId="section-114-2-a"><num>(a)</num><content><p>in sub-paragraph (1) (aggregate market value of shares not to exceed the appropriate limit) for “the appropriate limit” there shall be substituted “£30,000”; and</p></content></level><level class="para1" eId="section-114-2-b"><num>(b)</num><content><p>sub-paragraphs (2) and (4) (meaning of the appropriate limit and, for the purposes of that definition, the relevant emoluments) shall cease to have effect.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-114-2-a"><num>(a)</num><content><p>in sub-paragraph (1) (aggregate market value of shares not to exceed the appropriate limit) for “the appropriate limit” there shall be substituted “£30,000”; and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-114-2-b"><num>(b)</num><content><p>sub-paragraphs (2) and (4) (meaning of the appropriate limit and, for the purposes of that definition, the relevant emoluments) shall cease to have effect.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-114-3"><num>(3)</num><content><p><mod>In paragraph 29 (price at which shares may be acquired to be stated and to be not manifestly less than the market value, or, in certain circumstances, 85 per cent. of the market value, of shares of the same class) for sub-paragraphs (1) to (6) there shall be substituted—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><subparagraph><num>(1)</num><intro><p>The price at which scheme shares may be acquired by the exercise of a right obtained under the scheme—</p></intro><level class="para1"><num>(a)</num><content><p>must be stated at the time the right is obtained, and</p></content></level><level class="para1"><num>(b)</num><content><p>must not be manifestly less than the market value of shares of the same class at that time or, if the Board and the grantor agree in writing, at such earlier time or times as may be provided in the agreement.</p></content></level></subparagraph></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-114-4"><num>(4)</num><content><p>Section 185 of the Taxes Act 1988 (approved share option schemes) shall be amended in accordance with subsections (5) to (7) below.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-114-5"><num>(5)</num><content><p>In subsection (2), for “Subject to subsections (6) to (6B) below” there shall be substituted “Subject to subsection (6) below”.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-114-6"><num>(6)</num><content><p><mod>For subsections (6) to (6B) there shall be substituted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(6)</num><intro><p>Where, in the case of a right obtained by a person under a scheme which is not a savings-related share option scheme, the aggregate of—</p></intro><level class="para1"><num>(a)</num><content><p>the amount or value of any consideration given by him for obtaining the right, and</p></content></level><level class="para1"><num>(b)</num><content><p>the price at which he may acquire the shares by exercising the right,</p></content></level><wrapUp><p>is less than the market value, at the time he obtains the right, of the same quantity of issued shares of the same class, he shall be chargeable to tax under Schedule E for the year of assessment in which he obtains the right on the amount of the difference; and the amount so chargeable shall be treated as earned income, whether or not it would otherwise fall to be so treated.</p></wrapUp></subsection></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-114-7"><num>(7)</num><content><p>In subsections (7) and (8) for “(6A)” there shall be substituted “(6)”.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-114-8"><num>(8)</num><content><p><mod>In section 120 of the <noteRef href="#m00067" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxation of Chargeable Gains Act 1992 (increase in expenditure by reference to tax charged in relation to shares etc) in subsection (6) (which defines the applicable provision) for paragraph (b) (which refers to subsection (6A) of section 185 of the Taxes Act 1988) there shall be substituted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(b)</num><content><p>subsection (6A) of that section (as that subsection has effect in relation to rights obtained before the day on which the Finance Act 1996 was passed), or</p></content></level><level class="para1"><num>(c)</num><content><p>subsection (6) of that section (as that subsection has effect in relation to rights obtained on or after that day).</p></content></level></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-114-9"><num>(9)</num><content><p>Schedule 16 to this Act, which makes provision with respect to share option schemes approved before the day on which this Act is passed, shall have effect.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-114-10"><num>(10)</num><content><p>Subsections (3) to (7) above have effect in relation to rights obtained on or after the day on which this Act is passed.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-115"><num>115</num><heading>Transitional provisions</heading><subsection eId="section-115-1"><num>(1)</num><intro><p>If, during the period—</p></intro><level class="para1" eId="section-115-1-a"><num>(a)</num><content><p>beginning with 17th July 1995, and</p></content></level><level class="para1" eId="section-115-1-b"><num>(b)</num><content><p>ending with the day preceding the passing of this Act,</p></content></level><wrapUp><p>any rights have been obtained by a person under an approved share option scheme in circumstances falling within subsection (2) below, the rights shall be treated for the purposes of sections 185 to 187 of, and Schedule 9 to, the Taxes Act 1988 as being rights obtained otherwise than in accordance with the provisions of an approved share option scheme.</p></wrapUp></subsection><subsection eId="section-115-2"><num>(2)</num><content><p>The circumstances mentioned in subsection (1) above are circumstances such that, on the assumptions in subsection (3) below, there would, by virtue of paragraph 28 or 29 of Schedule 9 to the Taxes Act 1988 (limit on what may be obtained and requirements with respect to price), have been, with respect to the operation of the scheme, a contravention of any of the relevant requirements or of the scheme itself.</p></content></subsection><subsection eId="section-115-3"><num>(3)</num><intro><p>The assumptions mentioned in subsection (2) above are—</p></intro><level class="para1" eId="section-115-3-a"><num>(a)</num><content><p>that the amendments made by subsection (2) of section 114 above had effect at all times on and after 17th July 1995;</p></content></level><level class="para1" eId="section-115-3-b"><num>(b)</num><content><p>that the amendments made by subsections (3) to (7) of that section had effect in relation to rights obtained at any time on or after that date; and</p></content></level><level class="para1" eId="section-115-3-c"><num>(c)</num><content><p>that the provisions of paragraphs 1(1) and 2 to 5 of Schedule 16 to this Act had effect at all times on and after 17th July 1995, but with the substitution for references to the day on which this Act is passed of references to that date.</p></content></level></subsection><subsection eId="section-115-4"><num>(4)</num><intro><p>For the purposes of this section, rights obtained by a person on or after 17th July 1995 shall be treated as having been obtained by him before that date if—</p></intro><level class="para1" eId="section-115-4-a"><num>(a)</num><content><p>the scheme in question is one approved before that date;</p></content></level><level class="para1" eId="section-115-4-b"><num>(b)</num><content><p>an offer of the rights or an invitation to apply for them was made in writing to that person before that date; and</p></content></level><level class="para1" eId="section-115-4-c"><num>(c)</num><content><p>he obtained the rights within the period of thirty days beginning with the day on which the offer or invitation was made.</p></content></level></subsection><subsection eId="section-115-5"><num>(5)</num><intro><p>In this section—</p></intro><hcontainer name="definition"><content><p>“approved share option scheme” means an approved share option scheme, within the meaning of section 185 of the Taxes Act 1988, other than a savings-related share option scheme;</p></content></hcontainer><hcontainer name="definition"><content><p>“relevant requirements” has the meaning given in paragraph 1(1) of Schedule 9 to the Taxes Act 1988;</p></content></hcontainer><hcontainer name="definition"><content><p>“savings-related share option scheme” has the meaning given by Schedule 9 to the Taxes Act 1988.</p></content></hcontainer></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-115-1"><num>(1)</num><intro><p>If, during the period—</p></intro><level class="para1" eId="section-115-1-a"><num>(a)</num><content><p>beginning with 17th July 1995, and</p></content></level><level class="para1" eId="section-115-1-b"><num>(b)</num><content><p>ending with the day preceding the passing of this Act,</p></content></level><wrapUp><p>any rights have been obtained by a person under an approved share option scheme in circumstances falling within subsection (2) below, the rights shall be treated for the purposes of sections 185 to 187 of, and Schedule 9 to, the Taxes Act 1988 as being rights obtained otherwise than in accordance with the provisions of an approved share option scheme.</p></wrapUp></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-115-1-a"><num>(a)</num><content><p>beginning with 17th July 1995, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-115-1-b"><num>(b)</num><content><p>ending with the day preceding the passing of this Act,</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-115-2"><num>(2)</num><content><p>The circumstances mentioned in subsection (1) above are circumstances such that, on the assumptions in subsection (3) below, there would, by virtue of paragraph 28 or 29 of Schedule 9 to the Taxes Act 1988 (limit on what may be obtained and requirements with respect to price), have been, with respect to the operation of the scheme, a contravention of any of the relevant requirements or of the scheme itself.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-115-3"><num>(3)</num><intro><p>The assumptions mentioned in subsection (2) above are—</p></intro><level class="para1" eId="section-115-3-a"><num>(a)</num><content><p>that the amendments made by subsection (2) of section 114 above had effect at all times on and after 17th July 1995;</p></content></level><level class="para1" eId="section-115-3-b"><num>(b)</num><content><p>that the amendments made by subsections (3) to (7) of that section had effect in relation to rights obtained at any time on or after that date; and</p></content></level><level class="para1" eId="section-115-3-c"><num>(c)</num><content><p>that the provisions of paragraphs 1(1) and 2 to 5 of Schedule 16 to this Act had effect at all times on and after 17th July 1995, but with the substitution for references to the day on which this Act is passed of references to that date.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-115-3-a"><num>(a)</num><content><p>that the amendments made by subsection (2) of section 114 above had effect at all times on and after 17th July 1995;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-115-3-b"><num>(b)</num><content><p>that the amendments made by subsections (3) to (7) of that section had effect in relation to rights obtained at any time on or after that date; and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-115-3-c"><num>(c)</num><content><p>that the provisions of paragraphs 1(1) and 2 to 5 of Schedule 16 to this Act had effect at all times on and after 17th July 1995, but with the substitution for references to the day on which this Act is passed of references to that date.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-115-4"><num>(4)</num><intro><p>For the purposes of this section, rights obtained by a person on or after 17th July 1995 shall be treated as having been obtained by him before that date if—</p></intro><level class="para1" eId="section-115-4-a"><num>(a)</num><content><p>the scheme in question is one approved before that date;</p></content></level><level class="para1" eId="section-115-4-b"><num>(b)</num><content><p>an offer of the rights or an invitation to apply for them was made in writing to that person before that date; and</p></content></level><level class="para1" eId="section-115-4-c"><num>(c)</num><content><p>he obtained the rights within the period of thirty days beginning with the day on which the offer or invitation was made.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-115-4-a"><num>(a)</num><content><p>the scheme in question is one approved before that date;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-115-4-b"><num>(b)</num><content><p>an offer of the rights or an invitation to apply for them was made in writing to that person before that date; and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-115-4-c"><num>(c)</num><content><p>he obtained the rights within the period of thirty days beginning with the day on which the offer or invitation was made.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-115-5"><num>(5)</num><intro><p>In this section—</p></intro><hcontainer name="definition"><content><p>“approved share option scheme” means an approved share option scheme, within the meaning of section 185 of the Taxes Act 1988, other than a savings-related share option scheme;</p></content></hcontainer><hcontainer name="definition"><content><p>“relevant requirements” has the meaning given in paragraph 1(1) of Schedule 9 to the Taxes Act 1988;</p></content></hcontainer><hcontainer name="definition"><content><p>“savings-related share option scheme” has the meaning given by Schedule 9 to the Taxes Act 1988.</p></content></hcontainer></subsection>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="definition"><content><p>“approved share option scheme” means an approved share option scheme, within the meaning of section 185 of the Taxes Act 1988, other than a savings-related share option scheme;</p></content></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="part-IV-chapter-IV-crossheading-profit-sharing-schemes"><heading>Profit sharing schemes</heading><section eId="section-116"><num>116</num><heading>The release date</heading><subsection eId="section-116-1"><num>(1)</num><content><p>In section 187(2) of the Taxes Act 1988 (interpretation of sections 185 and 186 of, and Schedules 9 and 10 to, that Act) in the definition of “release date” (the fifth anniversary of the date on which shares were appropriated to a participant in a profit sharing scheme) for “fifth” there shall be substituted “third”.</p></content></subsection><subsection eId="section-116-2"><num>(2)</num><content><p>The amendment made by subsection (1) above shall have effect in relation to shares of a participant in a profit sharing scheme if the third anniversary of the appropriation of the shares to the participant occurs on or after the day on which this Act is passed.</p></content></subsection><subsection eId="section-116-3"><num>(3)</num><content><p>If the third anniversary of the appropriation of any shares to a participant in a profit sharing scheme has occurred, but the fifth anniversary of their appropriation to him has not occurred, before the passing of this Act, then, in the application of sections 186 and 187 of, and Schedules 9 and 10 to, the Taxes Act 1988 in relation to those shares, the release date shall be the day on which this Act is passed.</p></content></subsection></section><section eId="section-117"><num>117</num><heading>The appropriate percentage</heading><subsection eId="section-117-1"><num>(1)</num><content><p><mod>In Schedule 10 to the Taxes Act 1988 (further provisions relating to profit sharing schemes) for paragraph 3 (the appropriate percentage) there shall be substituted—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><paragraph class="schProv1"><num>3</num><subparagraph><num>(1)</num><content><p>For the purposes of any of the relevant provisions charging an individual to income tax under Schedule E by reason of the occurrence of an event relating to any of his shares, the “appropriate percentage” in relation to those shares is 100 per cent., unless sub-paragraph (2) below applies.</p></content></subparagraph><subparagraph><num>(2)</num><intro><p>Where the individual—</p></intro><level class="para1"><num>(a)</num><content><p>ceases to be a director or employee of the grantor or, in the case of a group scheme, a participating company as mentioned in paragraph 2(a) above, or</p></content></level><level class="para1"><num>(b)</num><content><p>reaches the relevant age,</p></content></level><wrapUp><p>before the event occurs, the “appropriate percentage” is 50 per cent., unless paragraph 6(4) below applies.</p></wrapUp></subparagraph></paragraph></quotedStructure></mod></p></content></subsection><subsection eId="section-117-2"><num>(2)</num><content><p>In section 187(8) of that Act (determination of certain values and percentages where shares are appropriated to a participant at different times) paragraph (b) (which relates to the appropriate percentage), and the word “and” immediately preceding it, shall cease to have effect.</p></content></subsection><subsection eId="section-117-3"><num>(3)</num><content><p>Subsections (1) and (2) above have effect in relation to the occurrence, on or after the day on which this Act is passed, of events by reason of whose occurrence any provision of section 186 or 187 of, or Schedule 9 or 10 to, the Taxes Act 1988 charges an individual to income tax under Schedule E.</p></content></subsection></section><section eId="section-118"><num>118</num><heading>The appropriate allowance</heading><subsection eId="section-118-1"><num>(1)</num><intro><p>In section 186(12) of the Taxes Act 1988 (determination of the appropriate allowance for the purposes of the charge to tax on capital receipts by a participant in an approved profit sharing scheme)—</p></intro><level class="para1" eId="section-118-1-a"><num>(a)</num><content><p>for “£100” there shall be substituted “£60”; and</p></content></level><level class="para1" eId="section-118-1-b"><num>(b)</num><content><p>for “five years” there shall be substituted “three years”.</p></content></level></subsection><subsection eId="section-118-2"><num>(2)</num><content><p>Subsection (1) above has effect for the year 1997-98 and subsequent years of assessment.</p></content></subsection></section></hcontainer>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-116"><num>116</num><heading>The release date</heading><subsection eId="section-116-1"><num>(1)</num><content><p>In section 187(2) of the Taxes Act 1988 (interpretation of sections 185 and 186 of, and Schedules 9 and 10 to, that Act) in the definition of “release date” (the fifth anniversary of the date on which shares were appropriated to a participant in a profit sharing scheme) for “fifth” there shall be substituted “third”.</p></content></subsection><subsection eId="section-116-2"><num>(2)</num><content><p>The amendment made by subsection (1) above shall have effect in relation to shares of a participant in a profit sharing scheme if the third anniversary of the appropriation of the shares to the participant occurs on or after the day on which this Act is passed.</p></content></subsection><subsection eId="section-116-3"><num>(3)</num><content><p>If the third anniversary of the appropriation of any shares to a participant in a profit sharing scheme has occurred, but the fifth anniversary of their appropriation to him has not occurred, before the passing of this Act, then, in the application of sections 186 and 187 of, and Schedules 9 and 10 to, the Taxes Act 1988 in relation to those shares, the release date shall be the day on which this Act is passed.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-116-1"><num>(1)</num><content><p>In section 187(2) of the Taxes Act 1988 (interpretation of sections 185 and 186 of, and Schedules 9 and 10 to, that Act) in the definition of “release date” (the fifth anniversary of the date on which shares were appropriated to a participant in a profit sharing scheme) for “fifth” there shall be substituted “third”.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-116-2"><num>(2)</num><content><p>The amendment made by subsection (1) above shall have effect in relation to shares of a participant in a profit sharing scheme if the third anniversary of the appropriation of the shares to the participant occurs on or after the day on which this Act is passed.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-116-3"><num>(3)</num><content><p>If the third anniversary of the appropriation of any shares to a participant in a profit sharing scheme has occurred, but the fifth anniversary of their appropriation to him has not occurred, before the passing of this Act, then, in the application of sections 186 and 187 of, and Schedules 9 and 10 to, the Taxes Act 1988 in relation to those shares, the release date shall be the day on which this Act is passed.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-117"><num>117</num><heading>The appropriate percentage</heading><subsection eId="section-117-1"><num>(1)</num><content><p><mod>In Schedule 10 to the Taxes Act 1988 (further provisions relating to profit sharing schemes) for paragraph 3 (the appropriate percentage) there shall be substituted—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><paragraph class="schProv1"><num>3</num><subparagraph><num>(1)</num><content><p>For the purposes of any of the relevant provisions charging an individual to income tax under Schedule E by reason of the occurrence of an event relating to any of his shares, the “appropriate percentage” in relation to those shares is 100 per cent., unless sub-paragraph (2) below applies.</p></content></subparagraph><subparagraph><num>(2)</num><intro><p>Where the individual—</p></intro><level class="para1"><num>(a)</num><content><p>ceases to be a director or employee of the grantor or, in the case of a group scheme, a participating company as mentioned in paragraph 2(a) above, or</p></content></level><level class="para1"><num>(b)</num><content><p>reaches the relevant age,</p></content></level><wrapUp><p>before the event occurs, the “appropriate percentage” is 50 per cent., unless paragraph 6(4) below applies.</p></wrapUp></subparagraph></paragraph></quotedStructure></mod></p></content></subsection><subsection eId="section-117-2"><num>(2)</num><content><p>In section 187(8) of that Act (determination of certain values and percentages where shares are appropriated to a participant at different times) paragraph (b) (which relates to the appropriate percentage), and the word “and” immediately preceding it, shall cease to have effect.</p></content></subsection><subsection eId="section-117-3"><num>(3)</num><content><p>Subsections (1) and (2) above have effect in relation to the occurrence, on or after the day on which this Act is passed, of events by reason of whose occurrence any provision of section 186 or 187 of, or Schedule 9 or 10 to, the Taxes Act 1988 charges an individual to income tax under Schedule E.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-117-1"><num>(1)</num><content><p><mod>In Schedule 10 to the Taxes Act 1988 (further provisions relating to profit sharing schemes) for paragraph 3 (the appropriate percentage) there shall be substituted—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><paragraph class="schProv1"><num>3</num><subparagraph><num>(1)</num><content><p>For the purposes of any of the relevant provisions charging an individual to income tax under Schedule E by reason of the occurrence of an event relating to any of his shares, the “appropriate percentage” in relation to those shares is 100 per cent., unless sub-paragraph (2) below applies.</p></content></subparagraph><subparagraph><num>(2)</num><intro><p>Where the individual—</p></intro><level class="para1"><num>(a)</num><content><p>ceases to be a director or employee of the grantor or, in the case of a group scheme, a participating company as mentioned in paragraph 2(a) above, or</p></content></level><level class="para1"><num>(b)</num><content><p>reaches the relevant age,</p></content></level><wrapUp><p>before the event occurs, the “appropriate percentage” is 50 per cent., unless paragraph 6(4) below applies.</p></wrapUp></subparagraph></paragraph></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-117-2"><num>(2)</num><content><p>In section 187(8) of that Act (determination of certain values and percentages where shares are appropriated to a participant at different times) paragraph (b) (which relates to the appropriate percentage), and the word “and” immediately preceding it, shall cease to have effect.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-117-3"><num>(3)</num><content><p>Subsections (1) and (2) above have effect in relation to the occurrence, on or after the day on which this Act is passed, of events by reason of whose occurrence any provision of section 186 or 187 of, or Schedule 9 or 10 to, the Taxes Act 1988 charges an individual to income tax under Schedule E.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-118"><num>118</num><heading>The appropriate allowance</heading><subsection eId="section-118-1"><num>(1)</num><intro><p>In section 186(12) of the Taxes Act 1988 (determination of the appropriate allowance for the purposes of the charge to tax on capital receipts by a participant in an approved profit sharing scheme)—</p></intro><level class="para1" eId="section-118-1-a"><num>(a)</num><content><p>for “£100” there shall be substituted “£60”; and</p></content></level><level class="para1" eId="section-118-1-b"><num>(b)</num><content><p>for “five years” there shall be substituted “three years”.</p></content></level></subsection><subsection eId="section-118-2"><num>(2)</num><content><p>Subsection (1) above has effect for the year 1997-98 and subsequent years of assessment.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-118-1"><num>(1)</num><intro><p>In section 186(12) of the Taxes Act 1988 (determination of the appropriate allowance for the purposes of the charge to tax on capital receipts by a participant in an approved profit sharing scheme)—</p></intro><level class="para1" eId="section-118-1-a"><num>(a)</num><content><p>for “£100” there shall be substituted “£60”; and</p></content></level><level class="para1" eId="section-118-1-b"><num>(b)</num><content><p>for “five years” there shall be substituted “three years”.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-118-1-a"><num>(a)</num><content><p>for “£100” there shall be substituted “£60”; and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-118-1-b"><num>(b)</num><content><p>for “five years” there shall be substituted “three years”.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-118-2"><num>(2)</num><content><p>Subsection (1) above has effect for the year 1997-98 and subsequent years of assessment.</p></content></subsection>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="part-IV-chapter-IV-crossheading-employee-share-ownership-trusts"><heading>Employee share ownership trusts</heading><section eId="section-119"><num>119</num><heading>Removal of requirement for at least one year’s service</heading><subsection eId="section-119-1"><num>(1)</num><content><p>In Schedule 5 to the <noteRef href="#m00068" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1989 (employee share ownership trusts) in paragraph 4(5)(a) (for a trust to be a qualifying ESOT, its beneficiaries must have been employees or directors of the company for at least one year) the words “not less than one year and” shall cease to have effect.</p></content></subsection><subsection eId="section-119-2"><num>(2)</num><content><p>This section applies to trusts established on or after the day on which this Act is passed.</p></content></subsection></section><section eId="section-120"><num>120</num><heading>Grant and exercise of share options</heading><subsection eId="section-120-1"><num>(1)</num><content><p><mod>In Schedule 5 to the <noteRef href="#m00069" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1989 (employee share ownership trusts), in paragraph 4 (the trust deed must contain provision as to the beneficiaries) after sub-paragraph (2) there shall be inserted—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><subparagraph><num>(2A)</num><intro><p>The trust deed may provide that a person is a beneficiary at a given time if at that time he is eligible to participate in a savings-related share option scheme within the meaning of Schedule 9 to the Taxes Act 1988—</p></intro><level class="para1"><num>(a)</num><content><p>which was established by a company within the founding company’s group, and</p></content></level><level class="para1"><num>(b)</num><content><p>which is approved under that Schedule.</p></content></level></subparagraph><subparagraph><num>(2B)</num><content><p>Where a trust deed contains a rule conforming with sub-paragraph (2A) above it must provide that the only powers and duties which the trustees may exercise in relation to persons who are beneficiaries by virtue only of that rule are those which may be exercised in accordance with the provisions of a scheme such as is mentioned in that sub-paragraph.</p></content></subparagraph></quotedStructure></mod></p></content></subsection><subsection eId="section-120-2"><num>(2)</num><content><p>In consequence of the amendment made by subsection (1) above, section 69 of, and Schedule 5 to, the <noteRef href="#m00070" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1989 (which respectively make provision about chargeable events in relation to the trustees of qualifying employee share ownership trusts and the requirements to be satisfied by such trusts) shall be amended in accordance with the following provisions of this section.</p></content></subsection><subsection eId="section-120-3"><num>(3)</num><intro><p>In subsection (4) of that section (meaning of “qualifying terms” for the purposes of the provision that the transfer of securities to beneficiaries is a chargeable event if it is not on qualifying terms)—</p></intro><level class="para1" eId="section-120-3-a"><num>(a)</num><content><p>in paragraph (a) (securities which are transferred at the same time must be transferred on similar terms) after “time” there shall be inserted “other than those transferred on a transfer such as is mentioned in subsection (4ZA) below”;</p></content></level><level class="para1" eId="section-120-3-b"><num>(b)</num><content><p>in paragraph (b) (securities must have been offered to all the persons who are beneficiaries), after “trust deed” there shall be inserted “by virtue of a rule which conforms with paragraph 4(2), (3) or (4) of Schedule 5 to this Act”; and</p></content></level><level class="para1" eId="section-120-3-c"><num>(c)</num><content><p>in paragraph (c) (securities must be transferred to all such beneficiaries who have accepted the offer) for “beneficiaries” there shall be substituted “persons”.</p></content></level></subsection><subsection eId="section-120-4"><num>(4)</num><content><p><mod>After subsection (4) of that section there shall be inserted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(4ZA)</num><intro><p>For the purposes of subsection (1)(b) above a transfer of securities is also made on qualifying terms if—</p></intro><level class="para1"><num>(a)</num><content><p>it is made to a person exercising a right to acquire shares, and</p></content></level><level class="para1"><num>(b)</num><intro><p>that right was obtained in accordance with the provisions of a savings-related share option scheme within the meaning of Schedule 9 to the Taxes Act 1988—</p></intro><level class="para2"><num>(i)</num><content><p>which was established by, or by a company controlled by, the company which established the trust, and</p></content></level><level class="para2"><num>(ii)</num><content><p>which is approved under that Schedule, and</p></content></level></level><level class="para1"><num>(c)</num><content><p>that right is being exercised in accordance with the provisions of that scheme, and</p></content></level><level class="para1"><num>(d)</num><content><p>the consideration for the transfer is payable to the trustees.</p></content></level></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-120-5"><num>(5)</num><content><p>In sub-paragraph (4) of paragraph 4 of that Schedule (trust deed may provide for charity to be beneficiary if there are no beneficiaries falling within a rule conforming with sub-paragraph (2) or (3)) after “sub-paragraph (2)” there shall be inserted “, (2A)”.</p></content></subsection><subsection eId="section-120-6"><num>(6)</num><content><p>In sub-paragraph (7) of that paragraph (trust deed must not provide for a person to be a beneficiary unless he falls within a rule conforming with sub-paragraph (2), (3) or (4)) after “sub-paragraph (2)” there shall be inserted “, (2A)”.</p></content></subsection><subsection eId="section-120-7"><num>(7)</num><content><p>In sub-paragraph (8) of that paragraph (trust deed must provide that person with material interest in founding company cannot be a beneficiary) after “at a particular time (the relevant time)” there shall be inserted “by virtue of a rule which conforms with sub-paragraph (2), (3) or (4) above”.</p></content></subsection><subsection eId="section-120-8"><num>(8)</num><content><p><mod>In paragraph 5(2) of that Schedule (trust deed must be so expressed that it is apparent that the general functions of the trustees are as mentioned in paragraphs (a) to (e)) after paragraph (c) there shall be inserted—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><level class="para1"><num>(cc)</num><content><p>to grant rights to acquire shares to persons who are beneficiaries under the terms of the trust deed;</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-120-9"><num>(9)</num><intro><p>In paragraph 9 of that Schedule (trust deed must provide that transfers of securities to beneficiaries must be on qualifying terms and within the qualifying period) in sub-paragraph (2) (meaning of qualifying terms)—</p></intro><level class="para1" eId="section-120-9-a"><num>(a)</num><content><p>in paragraph (a) (securities which are transferred at the same time must be transferred on similar terms) after “time” there shall be inserted “other than those transferred on a transfer such as is mentioned in sub-paragraph (2ZA) below”;</p></content></level><level class="para1" eId="section-120-9-b"><num>(b)</num><content><p>in paragraph (b) (securities must have been offered to all the persons who are beneficiaries) after “trust deed” there shall be inserted “by virtue of a rule which conforms with paragraph 4(2), (3) or (4) above”; and</p></content></level><level class="para1" eId="section-120-9-c"><num>(c)</num><content><p>in paragraph (c) (securities must be transferred to all such beneficiaries who have accepted the offer) for “beneficiaries” there shall be substituted “persons”.</p></content></level></subsection><subsection eId="section-120-10"><num>(10)</num><content><p><mod>After sub-paragraph (2) of that paragraph there shall be inserted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(2ZA)</num><intro><p>For the purposes of sub-paragraph (1) above a transfer of securities is also made on qualifying terms if—</p></intro><level class="para1"><num>(a)</num><content><p>it is made to a person exercising a right to acquire shares, and</p></content></level><level class="para1"><num>(b)</num><intro><p>that right was obtained in accordance with the provisions of a savings-related share option scheme within the meaning of Schedule 9 to the Taxes Act 1988—</p></intro><level class="para2"><num>(i)</num><content><p>which was established by, or by a company controlled by, the founding company, and</p></content></level><level class="para2"><num>(ii)</num><content><p>which is approved under that Schedule, and</p></content></level></level><level class="para1"><num>(c)</num><content><p>that right is being exercised in accordance with the provisions of that scheme, and</p></content></level><level class="para1"><num>(d)</num><content><p>the consideration for the transfer is payable to the trustees.</p></content></level></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-120-11"><num>(11)</num><intro><p>In paragraph 10 of that Schedule (trust deed must not contain features not essential or reasonably incidental to purposes mentioned in that paragraph)—</p></intro><level class="para1" eId="section-120-11-a"><num>(a)</num><content><p>after “acquiring sums and securities,” there shall be inserted “granting rights to acquire shares to persons who are eligible to participate in savings-related share option schemes approved under Schedule 9 to the Taxes Act 1988, transferring shares to such persons,”; and</p></content></level><level class="para1" eId="section-120-11-b"><num>(b)</num><content><p>for “Schedule 9 to the Taxes Act 1988” there shall be substituted “that Schedule”.</p></content></level></subsection><subsection eId="section-120-12"><num>(12)</num><content><p>This section has effect in relation to trusts established on or after the day on which this Act is passed.</p></content></subsection></section></hcontainer>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-119"><num>119</num><heading>Removal of requirement for at least one year’s service</heading><subsection eId="section-119-1"><num>(1)</num><content><p>In Schedule 5 to the <noteRef href="#m00068" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1989 (employee share ownership trusts) in paragraph 4(5)(a) (for a trust to be a qualifying ESOT, its beneficiaries must have been employees or directors of the company for at least one year) the words “not less than one year and” shall cease to have effect.</p></content></subsection><subsection eId="section-119-2"><num>(2)</num><content><p>This section applies to trusts established on or after the day on which this Act is passed.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-119-1"><num>(1)</num><content><p>In Schedule 5 to the <noteRef href="#m00068" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1989 (employee share ownership trusts) in paragraph 4(5)(a) (for a trust to be a qualifying ESOT, its beneficiaries must have been employees or directors of the company for at least one year) the words “not less than one year and” shall cease to have effect.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-119-2"><num>(2)</num><content><p>This section applies to trusts established on or after the day on which this Act is passed.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-120"><num>120</num><heading>Grant and exercise of share options</heading><subsection eId="section-120-1"><num>(1)</num><content><p><mod>In Schedule 5 to the <noteRef href="#m00069" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1989 (employee share ownership trusts), in paragraph 4 (the trust deed must contain provision as to the beneficiaries) after sub-paragraph (2) there shall be inserted—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><subparagraph><num>(2A)</num><intro><p>The trust deed may provide that a person is a beneficiary at a given time if at that time he is eligible to participate in a savings-related share option scheme within the meaning of Schedule 9 to the Taxes Act 1988—</p></intro><level class="para1"><num>(a)</num><content><p>which was established by a company within the founding company’s group, and</p></content></level><level class="para1"><num>(b)</num><content><p>which is approved under that Schedule.</p></content></level></subparagraph><subparagraph><num>(2B)</num><content><p>Where a trust deed contains a rule conforming with sub-paragraph (2A) above it must provide that the only powers and duties which the trustees may exercise in relation to persons who are beneficiaries by virtue only of that rule are those which may be exercised in accordance with the provisions of a scheme such as is mentioned in that sub-paragraph.</p></content></subparagraph></quotedStructure></mod></p></content></subsection><subsection eId="section-120-2"><num>(2)</num><content><p>In consequence of the amendment made by subsection (1) above, section 69 of, and Schedule 5 to, the <noteRef href="#m00070" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1989 (which respectively make provision about chargeable events in relation to the trustees of qualifying employee share ownership trusts and the requirements to be satisfied by such trusts) shall be amended in accordance with the following provisions of this section.</p></content></subsection><subsection eId="section-120-3"><num>(3)</num><intro><p>In subsection (4) of that section (meaning of “qualifying terms” for the purposes of the provision that the transfer of securities to beneficiaries is a chargeable event if it is not on qualifying terms)—</p></intro><level class="para1" eId="section-120-3-a"><num>(a)</num><content><p>in paragraph (a) (securities which are transferred at the same time must be transferred on similar terms) after “time” there shall be inserted “other than those transferred on a transfer such as is mentioned in subsection (4ZA) below”;</p></content></level><level class="para1" eId="section-120-3-b"><num>(b)</num><content><p>in paragraph (b) (securities must have been offered to all the persons who are beneficiaries), after “trust deed” there shall be inserted “by virtue of a rule which conforms with paragraph 4(2), (3) or (4) of Schedule 5 to this Act”; and</p></content></level><level class="para1" eId="section-120-3-c"><num>(c)</num><content><p>in paragraph (c) (securities must be transferred to all such beneficiaries who have accepted the offer) for “beneficiaries” there shall be substituted “persons”.</p></content></level></subsection><subsection eId="section-120-4"><num>(4)</num><content><p><mod>After subsection (4) of that section there shall be inserted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(4ZA)</num><intro><p>For the purposes of subsection (1)(b) above a transfer of securities is also made on qualifying terms if—</p></intro><level class="para1"><num>(a)</num><content><p>it is made to a person exercising a right to acquire shares, and</p></content></level><level class="para1"><num>(b)</num><intro><p>that right was obtained in accordance with the provisions of a savings-related share option scheme within the meaning of Schedule 9 to the Taxes Act 1988—</p></intro><level class="para2"><num>(i)</num><content><p>which was established by, or by a company controlled by, the company which established the trust, and</p></content></level><level class="para2"><num>(ii)</num><content><p>which is approved under that Schedule, and</p></content></level></level><level class="para1"><num>(c)</num><content><p>that right is being exercised in accordance with the provisions of that scheme, and</p></content></level><level class="para1"><num>(d)</num><content><p>the consideration for the transfer is payable to the trustees.</p></content></level></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-120-5"><num>(5)</num><content><p>In sub-paragraph (4) of paragraph 4 of that Schedule (trust deed may provide for charity to be beneficiary if there are no beneficiaries falling within a rule conforming with sub-paragraph (2) or (3)) after “sub-paragraph (2)” there shall be inserted “, (2A)”.</p></content></subsection><subsection eId="section-120-6"><num>(6)</num><content><p>In sub-paragraph (7) of that paragraph (trust deed must not provide for a person to be a beneficiary unless he falls within a rule conforming with sub-paragraph (2), (3) or (4)) after “sub-paragraph (2)” there shall be inserted “, (2A)”.</p></content></subsection><subsection eId="section-120-7"><num>(7)</num><content><p>In sub-paragraph (8) of that paragraph (trust deed must provide that person with material interest in founding company cannot be a beneficiary) after “at a particular time (the relevant time)” there shall be inserted “by virtue of a rule which conforms with sub-paragraph (2), (3) or (4) above”.</p></content></subsection><subsection eId="section-120-8"><num>(8)</num><content><p><mod>In paragraph 5(2) of that Schedule (trust deed must be so expressed that it is apparent that the general functions of the trustees are as mentioned in paragraphs (a) to (e)) after paragraph (c) there shall be inserted—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><level class="para1"><num>(cc)</num><content><p>to grant rights to acquire shares to persons who are beneficiaries under the terms of the trust deed;</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-120-9"><num>(9)</num><intro><p>In paragraph 9 of that Schedule (trust deed must provide that transfers of securities to beneficiaries must be on qualifying terms and within the qualifying period) in sub-paragraph (2) (meaning of qualifying terms)—</p></intro><level class="para1" eId="section-120-9-a"><num>(a)</num><content><p>in paragraph (a) (securities which are transferred at the same time must be transferred on similar terms) after “time” there shall be inserted “other than those transferred on a transfer such as is mentioned in sub-paragraph (2ZA) below”;</p></content></level><level class="para1" eId="section-120-9-b"><num>(b)</num><content><p>in paragraph (b) (securities must have been offered to all the persons who are beneficiaries) after “trust deed” there shall be inserted “by virtue of a rule which conforms with paragraph 4(2), (3) or (4) above”; and</p></content></level><level class="para1" eId="section-120-9-c"><num>(c)</num><content><p>in paragraph (c) (securities must be transferred to all such beneficiaries who have accepted the offer) for “beneficiaries” there shall be substituted “persons”.</p></content></level></subsection><subsection eId="section-120-10"><num>(10)</num><content><p><mod>After sub-paragraph (2) of that paragraph there shall be inserted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(2ZA)</num><intro><p>For the purposes of sub-paragraph (1) above a transfer of securities is also made on qualifying terms if—</p></intro><level class="para1"><num>(a)</num><content><p>it is made to a person exercising a right to acquire shares, and</p></content></level><level class="para1"><num>(b)</num><intro><p>that right was obtained in accordance with the provisions of a savings-related share option scheme within the meaning of Schedule 9 to the Taxes Act 1988—</p></intro><level class="para2"><num>(i)</num><content><p>which was established by, or by a company controlled by, the founding company, and</p></content></level><level class="para2"><num>(ii)</num><content><p>which is approved under that Schedule, and</p></content></level></level><level class="para1"><num>(c)</num><content><p>that right is being exercised in accordance with the provisions of that scheme, and</p></content></level><level class="para1"><num>(d)</num><content><p>the consideration for the transfer is payable to the trustees.</p></content></level></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-120-11"><num>(11)</num><intro><p>In paragraph 10 of that Schedule (trust deed must not contain features not essential or reasonably incidental to purposes mentioned in that paragraph)—</p></intro><level class="para1" eId="section-120-11-a"><num>(a)</num><content><p>after “acquiring sums and securities,” there shall be inserted “granting rights to acquire shares to persons who are eligible to participate in savings-related share option schemes approved under Schedule 9 to the Taxes Act 1988, transferring shares to such persons,”; and</p></content></level><level class="para1" eId="section-120-11-b"><num>(b)</num><content><p>for “Schedule 9 to the Taxes Act 1988” there shall be substituted “that Schedule”.</p></content></level></subsection><subsection eId="section-120-12"><num>(12)</num><content><p>This section has effect in relation to trusts established on or after the day on which this Act is passed.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-120-1"><num>(1)</num><content><p><mod>In Schedule 5 to the <noteRef href="#m00069" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1989 (employee share ownership trusts), in paragraph 4 (the trust deed must contain provision as to the beneficiaries) after sub-paragraph (2) there shall be inserted—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><subparagraph><num>(2A)</num><intro><p>The trust deed may provide that a person is a beneficiary at a given time if at that time he is eligible to participate in a savings-related share option scheme within the meaning of Schedule 9 to the Taxes Act 1988—</p></intro><level class="para1"><num>(a)</num><content><p>which was established by a company within the founding company’s group, and</p></content></level><level class="para1"><num>(b)</num><content><p>which is approved under that Schedule.</p></content></level></subparagraph><subparagraph><num>(2B)</num><content><p>Where a trust deed contains a rule conforming with sub-paragraph (2A) above it must provide that the only powers and duties which the trustees may exercise in relation to persons who are beneficiaries by virtue only of that rule are those which may be exercised in accordance with the provisions of a scheme such as is mentioned in that sub-paragraph.</p></content></subparagraph></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-120-2"><num>(2)</num><content><p>In consequence of the amendment made by subsection (1) above, section 69 of, and Schedule 5 to, the <noteRef href="#m00070" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1989 (which respectively make provision about chargeable events in relation to the trustees of qualifying employee share ownership trusts and the requirements to be satisfied by such trusts) shall be amended in accordance with the following provisions of this section.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-120-3"><num>(3)</num><intro><p>In subsection (4) of that section (meaning of “qualifying terms” for the purposes of the provision that the transfer of securities to beneficiaries is a chargeable event if it is not on qualifying terms)—</p></intro><level class="para1" eId="section-120-3-a"><num>(a)</num><content><p>in paragraph (a) (securities which are transferred at the same time must be transferred on similar terms) after “time” there shall be inserted “other than those transferred on a transfer such as is mentioned in subsection (4ZA) below”;</p></content></level><level class="para1" eId="section-120-3-b"><num>(b)</num><content><p>in paragraph (b) (securities must have been offered to all the persons who are beneficiaries), after “trust deed” there shall be inserted “by virtue of a rule which conforms with paragraph 4(2), (3) or (4) of Schedule 5 to this Act”; and</p></content></level><level class="para1" eId="section-120-3-c"><num>(c)</num><content><p>in paragraph (c) (securities must be transferred to all such beneficiaries who have accepted the offer) for “beneficiaries” there shall be substituted “persons”.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-120-3-a"><num>(a)</num><content><p>in paragraph (a) (securities which are transferred at the same time must be transferred on similar terms) after “time” there shall be inserted “other than those transferred on a transfer such as is mentioned in subsection (4ZA) below”;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-120-3-b"><num>(b)</num><content><p>in paragraph (b) (securities must have been offered to all the persons who are beneficiaries), after “trust deed” there shall be inserted “by virtue of a rule which conforms with paragraph 4(2), (3) or (4) of Schedule 5 to this Act”; and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-120-3-c"><num>(c)</num><content><p>in paragraph (c) (securities must be transferred to all such beneficiaries who have accepted the offer) for “beneficiaries” there shall be substituted “persons”.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-120-4"><num>(4)</num><content><p><mod>After subsection (4) of that section there shall be inserted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(4ZA)</num><intro><p>For the purposes of subsection (1)(b) above a transfer of securities is also made on qualifying terms if—</p></intro><level class="para1"><num>(a)</num><content><p>it is made to a person exercising a right to acquire shares, and</p></content></level><level class="para1"><num>(b)</num><intro><p>that right was obtained in accordance with the provisions of a savings-related share option scheme within the meaning of Schedule 9 to the Taxes Act 1988—</p></intro><level class="para2"><num>(i)</num><content><p>which was established by, or by a company controlled by, the company which established the trust, and</p></content></level><level class="para2"><num>(ii)</num><content><p>which is approved under that Schedule, and</p></content></level></level><level class="para1"><num>(c)</num><content><p>that right is being exercised in accordance with the provisions of that scheme, and</p></content></level><level class="para1"><num>(d)</num><content><p>the consideration for the transfer is payable to the trustees.</p></content></level></subsection></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-120-5"><num>(5)</num><content><p>In sub-paragraph (4) of paragraph 4 of that Schedule (trust deed may provide for charity to be beneficiary if there are no beneficiaries falling within a rule conforming with sub-paragraph (2) or (3)) after “sub-paragraph (2)” there shall be inserted “, (2A)”.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-120-6"><num>(6)</num><content><p>In sub-paragraph (7) of that paragraph (trust deed must not provide for a person to be a beneficiary unless he falls within a rule conforming with sub-paragraph (2), (3) or (4)) after “sub-paragraph (2)” there shall be inserted “, (2A)”.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-120-7"><num>(7)</num><content><p>In sub-paragraph (8) of that paragraph (trust deed must provide that person with material interest in founding company cannot be a beneficiary) after “at a particular time (the relevant time)” there shall be inserted “by virtue of a rule which conforms with sub-paragraph (2), (3) or (4) above”.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-120-8"><num>(8)</num><content><p><mod>In paragraph 5(2) of that Schedule (trust deed must be so expressed that it is apparent that the general functions of the trustees are as mentioned in paragraphs (a) to (e)) after paragraph (c) there shall be inserted—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><level class="para1"><num>(cc)</num><content><p>to grant rights to acquire shares to persons who are beneficiaries under the terms of the trust deed;</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-120-9"><num>(9)</num><intro><p>In paragraph 9 of that Schedule (trust deed must provide that transfers of securities to beneficiaries must be on qualifying terms and within the qualifying period) in sub-paragraph (2) (meaning of qualifying terms)—</p></intro><level class="para1" eId="section-120-9-a"><num>(a)</num><content><p>in paragraph (a) (securities which are transferred at the same time must be transferred on similar terms) after “time” there shall be inserted “other than those transferred on a transfer such as is mentioned in sub-paragraph (2ZA) below”;</p></content></level><level class="para1" eId="section-120-9-b"><num>(b)</num><content><p>in paragraph (b) (securities must have been offered to all the persons who are beneficiaries) after “trust deed” there shall be inserted “by virtue of a rule which conforms with paragraph 4(2), (3) or (4) above”; and</p></content></level><level class="para1" eId="section-120-9-c"><num>(c)</num><content><p>in paragraph (c) (securities must be transferred to all such beneficiaries who have accepted the offer) for “beneficiaries” there shall be substituted “persons”.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-120-9-a"><num>(a)</num><content><p>in paragraph (a) (securities which are transferred at the same time must be transferred on similar terms) after “time” there shall be inserted “other than those transferred on a transfer such as is mentioned in sub-paragraph (2ZA) below”;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-120-9-b"><num>(b)</num><content><p>in paragraph (b) (securities must have been offered to all the persons who are beneficiaries) after “trust deed” there shall be inserted “by virtue of a rule which conforms with paragraph 4(2), (3) or (4) above”; and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-120-9-c"><num>(c)</num><content><p>in paragraph (c) (securities must be transferred to all such beneficiaries who have accepted the offer) for “beneficiaries” there shall be substituted “persons”.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-120-10"><num>(10)</num><content><p><mod>After sub-paragraph (2) of that paragraph there shall be inserted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(2ZA)</num><intro><p>For the purposes of sub-paragraph (1) above a transfer of securities is also made on qualifying terms if—</p></intro><level class="para1"><num>(a)</num><content><p>it is made to a person exercising a right to acquire shares, and</p></content></level><level class="para1"><num>(b)</num><intro><p>that right was obtained in accordance with the provisions of a savings-related share option scheme within the meaning of Schedule 9 to the Taxes Act 1988—</p></intro><level class="para2"><num>(i)</num><content><p>which was established by, or by a company controlled by, the founding company, and</p></content></level><level class="para2"><num>(ii)</num><content><p>which is approved under that Schedule, and</p></content></level></level><level class="para1"><num>(c)</num><content><p>that right is being exercised in accordance with the provisions of that scheme, and</p></content></level><level class="para1"><num>(d)</num><content><p>the consideration for the transfer is payable to the trustees.</p></content></level></subsection></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-120-11"><num>(11)</num><intro><p>In paragraph 10 of that Schedule (trust deed must not contain features not essential or reasonably incidental to purposes mentioned in that paragraph)—</p></intro><level class="para1" eId="section-120-11-a"><num>(a)</num><content><p>after “acquiring sums and securities,” there shall be inserted “granting rights to acquire shares to persons who are eligible to participate in savings-related share option schemes approved under Schedule 9 to the Taxes Act 1988, transferring shares to such persons,”; and</p></content></level><level class="para1" eId="section-120-11-b"><num>(b)</num><content><p>for “Schedule 9 to the Taxes Act 1988” there shall be substituted “that Schedule”.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-120-11-a"><num>(a)</num><content><p>after “acquiring sums and securities,” there shall be inserted “granting rights to acquire shares to persons who are eligible to participate in savings-related share option schemes approved under Schedule 9 to the Taxes Act 1988, transferring shares to such persons,”; and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-120-11-b"><num>(b)</num><content><p>for “Schedule 9 to the Taxes Act 1988” there shall be substituted “that Schedule”.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-120-12"><num>(12)</num><content><p>This section has effect in relation to trusts established on or after the day on which this Act is passed.</p></content></subsection>
<chapter xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" eId="part-IV-chapter-V"><num>Chapter V</num><heading>Self Assessment, General Management etc.</heading><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-IV-chapter-V-crossheading-general"><heading>General</heading><section eId="section-121"><num>121</num><heading>Returns and self assessment</heading><subsection eId="section-121-1"><num>(1)</num><content><p>In subsection (1) of section 8 of the <noteRef href="#m00071" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxes Management Act 1970 (personal return), and in subsection (1) of section 8A of that Act (trustee’s return), after the words “year of assessment,” there shall be inserted the words “and the amount payable by him by way of income tax for that year,”.</p></content></subsection><subsection eId="section-121-2"><num>(2)</num><content><p>In subsection (1A) of each of those sections, the words from “and the amounts referred to” to the end shall cease to have effect.</p></content></subsection><subsection eId="section-121-3"><num>(3)</num><content><p><mod>After that subsection of each of those sections there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1AA)</num><intro><p>For the purposes of subsection (1) above—</p></intro><level class="para1"><num>(a)</num><content><p>the amounts in which a person is chargeable to income tax and capital gains tax are net amounts, that is to say, amounts which take into account any relief or allowance a claim for which is included in the return; and</p></content></level><level class="para1"><num>(b)</num><content><p>the amount payable by a person by way of income tax is the difference between the amount in which he is chargeable to income tax and the aggregate amount of any income tax deducted at source and any tax credits to which section 231 of the principal Act applies.</p></content></level></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-121-4"><num>(4)</num><content><p><mod>For subsection (1) of section 9 of that Act (returns to include self-assessment) there shall be substituted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1)</num><intro><p>Subject to subsection (2) below, every return under section 8 or 8A of this Act shall include a self-assessment, that is to say—</p></intro><level class="para1"><num>(a)</num><content><p>an assessment of the amounts in which, on the basis of the information contained in the return and taking into account any relief or allowance a claim for which is included in the return, the person making the return is chargeable to income tax and capital gains tax for the year of assessment; and</p></content></level><level class="para1"><num>(b)</num><content><p>an assessment of the amount payable by him by way of income tax, that is to say, the difference between the amount in which he is assessed to income tax under paragraph (a) above and the aggregate amount of any income tax deducted at source and any tax credits to which section 231 of the principal Act applies.</p></content></level></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-121-5"><num>(5)</num><content><p>In subsection (1)(b) of section 11AA of that Act (return of profits to include self-assessment), for the words “, allowance or repayment of tax” there shall be substituted the words “or allowance”.</p></content></subsection><subsection eId="section-121-6"><num>(6)</num><content><p>In subsection (1)(a) of section 12AA of that Act (partnership return), after the words “so chargeable” there shall be inserted the words “and the amount payable by way of income tax by each such partner”.</p></content></subsection><subsection eId="section-121-7"><num>(7)</num><content><p><mod>For subsection (1A) of that section there shall be substituted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1A)</num><intro><p>For the purposes of subsection (1) above—</p></intro><level class="para1"><num>(a)</num><content><p>the amount in which a partner is chargeable to income tax or corporation tax is a net amount, that is to say, an amount which takes into account any relief or allowance for which a claim is made; and</p></content></level><level class="para1"><num>(b)</num><content><p>the amount payable by a partner by way of income tax is the difference between the amount in which he is chargeable to income tax and the aggregate amount of any income tax deducted at source and any tax credits to which section 231 of the principal Act applies.</p></content></level></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-121-8"><num>(8)</num><intro><p>This section and sections 122, 123, 125 to 127 and 141 below—</p></intro><level class="para1" eId="section-121-8-a"><num>(a)</num><content><p>so far as they relate to income tax and capital gains tax, have effect as respects the year 1996-97 and subsequent years of assessment, and</p></content></level><level class="para1" eId="section-121-8-b"><num>(b)</num><content><p>so far as they relate to corporation tax, have effect as respects accounting periods ending on or after the appointed day for the purposes of Chapter III of Part IV of the <noteRef href="#m00072" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1994.</p></content></level></subsection></section><section eId="section-122"><num>122</num><heading>Notional tax deductions and payments</heading><subsection eId="section-122-1"><num>(1)</num><content><p>At the end of subsection (1) of section 9 of the <noteRef href="#m00073" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxes Management Act 1970 (as substituted by section 121(4) above) there shall be inserted the words “but nothing in this subsection shall enable a self-assessment to show as repayable any income tax treated as deducted or paid by virtue of section 233(1), 246D(1), 249(4), 421(1), 547(5) or 599A(5) of the principal Act.”</p></content></subsection><subsection eId="section-122-2"><num>(2)</num><content><p>At the end of subsection (1) of section 59B of that Act (payment of income tax and capital gains tax) there shall be inserted the words “but nothing in this subsection shall require the repayment of any income tax treated as deducted or paid by virtue of section 233(1), 246D(1), 249(4), 421(1), 547(5) or 599A(5) of the principal Act.”</p></content></subsection><subsection eId="section-122-3"><num>(3)</num><content><p><mod>In subsection (1) of section 233 of the Taxes Act 1988 (taxation of certain recipients of distributions), for paragraphs (a) and (b) there shall be substituted the following paragraphs—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><level class="para1"><num>(a)</num><content><p>that person shall be treated as having paid income tax at the lower rate on the amount or value of the distribution;</p></content></level><level class="para1"><num>(b)</num><content><p>no repayment shall be made of any income tax treated by virtue of paragraph (a) above as having been paid;</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-122-4"><num>(4)</num><intro><p>In paragraph (a) of subsection (1A) of that section—</p></intro><level class="para1" eId="section-122-4-a"><num>(a)</num><content><p><mod>for sub-paragraph (i) there shall be substituted the following sub-paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><level class="para2"><num>(i)</num><content><p>income on which that person falls to be treated as having paid income tax at the lower rate by virtue of paragraph (a) of subsection (1) above, or</p></content></level></quotedStructure><inline name="appendText">; and</inline></mod></p></content></level><level class="para1" eId="section-122-4-b"><num>(b)</num><content><p>for the words “that assessment” there shall be substituted the words “that subsection”.</p></content></level></subsection><subsection eId="section-122-5"><num>(5)</num><intro><p>In the following enactments, namely—</p></intro><level class="para1" eId="section-122-5-a"><num>(a)</num><content><p>subsection (2)(a) of section 246D of that Act (individuals etc.); and</p></content></level><level class="para1" eId="section-122-5-b"><num>(b)</num><content><p>subsection (4)(a) of section 249 of that Act (stock dividends treated as income),</p></content></level><wrapUp><p>for the words from “no assessment” to “on it” there shall be substituted the words “the individual shall be treated as having paid income tax at the lower rate on that income”.</p></wrapUp></subsection><subsection eId="section-122-6"><num>(6)</num><content><p>In subsection (1)(b) of section 421 of that Act (taxation of borrower when loan released), for the words “no assessment shall be made on him in respect of” there shall be substituted the words “he shall not be liable to pay”.</p></content></subsection><subsection eId="section-122-7"><num>(7)</num><intro><p>The following shall cease to have effect, namely—</p></intro><level class="para1" eId="section-122-7-a"><num>(a)</num><content><p>in subsection (5)(a) of section 547 of that Act (method of charging to tax), the words from “no assessment” to “but”;</p></content></level><level class="para1" eId="section-122-7-b"><num>(b)</num><content><p>in subsection (6) of section 599A of that Act (charge to tax: payments out of surplus funds), the words from “subject” to “and”; and</p></content></level><level class="para1" eId="section-122-7-c"><num>(c)</num><content><p>subsection (7) of that section.</p></content></level></subsection></section><section eId="section-123"><num>123</num><heading>Liability of partners</heading><subsection eId="section-123-1"><num>(1)</num><content><p>In subsection (2) of section 12AA of the <noteRef href="#m00074" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxes Management Act 1970 (partnership return) after the words “with the notice” there shall be inserted the words “or a successor of his”.</p></content></subsection><subsection eId="section-123-2"><num>(2)</num><content><p>In subsection (3) of that section after the words “the partner” there shall be inserted the words “or a successor of his”.</p></content></subsection><subsection eId="section-123-3"><num>(3)</num><content><p>In subsection (7)(a) of that section, the words “any part of” shall cease to have effect.</p></content></subsection><subsection eId="section-123-4"><num>(4)</num><content><p><mod>At the end of that section there shall be inserted the following subsections—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(11)</num><intro><p>In this Act “successor”, in relation to a person who is required to make and deliver, or has made and delivered, a return in pursuance of a notice under subsection (2) or (3) above, but is no longer available, means—</p></intro><level class="para1"><num>(a)</num><content><p>where a partner is for the time being nominated for the purposes of this subsection by a majority of the relevant partners, that partner; and</p></content></level><level class="para1"><num>(b)</num><intro><p>where no partner is for the time being so nominated, such partner as—</p></intro><level class="para2"><num>(i)</num><content><p>in the case of a notice under subsection (2) above, is identified in accordance with rules given with that notice; or</p></content></level><level class="para2"><num>(ii)</num><content><p>in the case of a notice under subsection (3) above, is nominated for the purposes of this subsection by an officer of the Board;</p></content></level><wrapUp><p>and “predecessor” and “successor”, in relation to a person so nominated or identified, shall be construed accordingly.</p></wrapUp></level></subsection><subsection><num>(12)</num><content><p>For the purposes of subsection (11) above a nomination under paragraph (a) of that subsection, and a revocation of such a nomination, shall not have effect in relation to any time before notice of the nomination or revocation is given to an officer of the Board.</p></content></subsection><subsection><num>(13)</num><content><p>In this section “relevant partner” means a person who was a partner at any time during the period for which the return was made or is required, or the personal representatives of such a person.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-123-5"><num>(5)</num><intro><p>In subsection (1) of section 12AB of that Act (partnership return to include partnership statement)—</p></intro><level class="para1" eId="section-123-5-a"><num>(a)</num><content><p>in paragraph (a), for the words “each period of account ending within the period in respect of which the return is made” there shall be substituted the words “the period in respect of which the return is made and each period of account ending within that period”;</p></content></level><level class="para1" eId="section-123-5-b"><num>(b)</num><content><p>in sub-paragraph (i) of that paragraph, for the words “that period” there shall be substituted the words “the period in question”;</p></content></level><level class="para1" eId="section-123-5-c"><num>(c)</num><content><p><mod>after that sub-paragraph there shall be inserted the following sub-paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para2"><num>(ia)</num><content><p>the amount of the consideration which, on that basis, has accrued to the partnership in respect of each disposal of partnership property during that period,</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p><p>and</p></content></level><level class="para1" eId="section-123-5-d"><num>(d)</num><content><p>in paragraph (b), after the words “such period” there shall be inserted the words “as is mentioned in paragraph (a) above” and after the word “loss,” there shall be inserted the word “consideration,”.</p></content></level></subsection><subsection eId="section-123-6"><num>(6)</num><intro><p>In subsection (2) of that section—</p></intro><level class="para1" eId="section-123-6-a"><num>(a)</num><content><p>in paragraph (a) after the words “to that person” there shall be inserted the words “or a successor”; and</p></content></level><level class="para1" eId="section-123-6-b"><num>(b)</num><content><p>in paragraph (b) for the words from “partnership statement” to “he” there shall be substituted the words “or a predecessor’s partnership statement as to give effect to any amendments to the return in which it is included which he or a predecessor”.</p></content></level></subsection><subsection eId="section-123-7"><num>(7)</num><intro><p>In section 12AC of that Act (power to enquire into partnership return)—</p></intro><level class="para1" eId="section-123-7-a"><num>(a)</num><content><p>in subsection (1)(b), after the word “person” there shall be inserted the words “or a successor of that person”; and</p></content></level><level class="para1" eId="section-123-7-b"><num>(b)</num><content><p>subsection (6) (which is superseded by subsection (4) above) shall cease to have effect.</p></content></level></subsection><subsection eId="section-123-8"><num>(8)</num><content><p>In subsection (1)(b) of section 93A of that Act (failure to make partnership return), after the word “he” there shall be inserted the words “or a successor of his”.</p></content></subsection><subsection eId="section-123-9"><num>(9)</num><content><p>In subsections (3) and (4) of that section, after the words “the representative partner” there shall be inserted the words “or a successor of his”.</p></content></subsection><subsection eId="section-123-10"><num>(10)</num><intro><p>In subsection (6) of that section—</p></intro><level class="para1" eId="section-123-10-a"><num>(a)</num><content><p>after the words “the representative partner” there shall be inserted the words “or a successor of his”; and</p></content></level><level class="para1" eId="section-123-10-b"><num>(b)</num><content><p>after the words “that partner”, in both places where they occur, there shall be inserted the words “or successor”.</p></content></level></subsection><subsection eId="section-123-11"><num>(11)</num><content><p>In subsection (7) of that section, for the words “the representative partner had a reasonable excuse for not delivering the return” there shall be substituted the words “the person for the time being required to deliver the return (whether the representative partner or a successor of his) had a reasonable excuse for not delivering it”.</p></content></subsection><subsection eId="section-123-12"><num>(12)</num><content><p>In subsection (1)(a)(ii) of section 95A of that Act (incorrect partnership return or accounts), for the words “such a return” there shall be substituted the words “a return of such a kind”.</p></content></subsection><subsection eId="section-123-13"><num>(13)</num><intro><p>In subsection (3) of that section—</p></intro><level class="para1" eId="section-123-13-a"><num>(a)</num><content><p>after the words “the representative partner” there shall be inserted the words “or a successor of his”; and</p></content></level><level class="para1" eId="section-123-13-b"><num>(b)</num><content><p>after the words “that partner”, in both places where they occur, there shall be inserted the words “or successor”.</p></content></level></subsection><subsection eId="section-123-14"><num>(14)</num><content><p><mod>In subsection (1) of section 118 of that Act (interpretation), for the definition of “successor” there shall be substituted the following definition—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><p>“successor”, in relation to a person who is required to make and deliver, or has made and delivered, a return under section 12AA of this Act, and “predecessor” and “successor”, in relation to the successor of such a person, shall be construed in accordance with section 12AA(11) of this Act;</p></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection></section><section eId="section-124"><num>124</num><heading>Retention of original records</heading><subsection eId="section-124-1"><num>(1)</num><intro><p>The <noteRef href="#m00075" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxes Management Act 1970, as it has effect—</p></intro><level class="para1" eId="section-124-1-a"><num>(a)</num><content><p>for the purposes of income tax and capital gains tax, as respects the year 1996-97 and subsequent years of assessment, and</p></content></level><level class="para1" eId="section-124-1-b"><num>(b)</num><content><p>for the purposes of corporation tax, as respects accounting periods ending on or after the day appointed under section 199 of the <noteRef href="#m00076" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1994 for the purposes of Chapter III of Part IV of that Act (self-assessment management provisions),</p></content></level><wrapUp><p>shall be amended in accordance with the following provisions of this section.</p></wrapUp></subsection><subsection eId="section-124-2"><num>(2)</num><content><p>In section 12B (records to be kept for purposes of returns) in subsection (4) (which permits the duty to preserve records to be discharged by the preservation of the information contained in them, and provides for the admissibility in evidence of copy documents) at the beginning there shall be inserted the words “Except in the case of records falling within subsection (4A) below,”.</p></content></subsection><subsection eId="section-124-3"><num>(3)</num><content><p><mod>After that subsection there shall be inserted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(4A)</num><intro><p>The records which fall within this subsection are—</p></intro><level class="para1"><num>(a)</num><intro><p>any statement in writing such as is mentioned in—</p></intro><level class="para2"><num>(i)</num><content><p>subsection (1) of section 234 of the principal Act (amount of qualifying distribution and tax credit), or</p></content></level><level class="para2"><num>(ii)</num><content><p>subsection (1) of section 352 of that Act (gross amount, tax deducted, and actual amount paid, in certain cases where payments are made under deduction of tax),</p></content></level><wrapUp><p>which is furnished by the company or person there mentioned, whether after the making of a request or otherwise;</p></wrapUp></level><level class="para1"><num>(b)</num><content><p>any certificate or other record (however described) which is required by regulations under section 566(1) of the principal Act to be given to a sub-contractor (within the meaning of Chapter IV of Part XIII of that Act) on the making of a payment to which section 559 of that Act (deductions on account of tax) applies;</p></content></level><level class="para1"><num>(c)</num><intro><p>any such record as may be requisite for making a correct and complete claim in respect of, or otherwise requisite for making a correct and complete return so far as relating to, an amount of tax—</p></intro><level class="para2"><num>(i)</num><content><p>which has been paid under the laws of a territory outside the United Kingdom, or</p></content></level><level class="para2"><num>(ii)</num><content><p>which would have been payable under the law of such a territory but for a relief to which section 788(5) of the principal Act (relief for promoting development and relief contemplated by double taxation arrangements) applies.</p></content></level></level></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-124-4"><num>(4)</num><content><p>In subsection (5) of that section (penalty for failure to comply with section 12B(1) or (2A)) for “Subject to subsection (5A)” there shall be substituted “Subject to subsections (5A) and (5B)”.</p></content></subsection><subsection eId="section-124-5"><num>(5)</num><content><p><mod>After subsection (5A) of that section there shall be inserted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(5B)</num><intro><p>Subsection (5) above also does not apply where—</p></intro><level class="para1"><num>(a)</num><content><p>the records which the person fails to keep or preserve are records falling within paragraph (a) of subsection (4A) above; and</p></content></level><level class="para1"><num>(b)</num><content><p>an officer of the Board is satisfied that any facts which he reasonably requires to be proved, and which would have been proved by the records, are proved by other documentary evidence furnished to him.</p></content></level></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-124-6"><num>(6)</num><content><p>In Schedule 1A (claims etc not included in returns) in paragraph 2A (keeping and preserving of records) in sub-paragraph (3) (which makes corresponding provision to section 12B(4)) at the beginning there shall be inserted “Except in the case of records falling within section 12B(4A) of this Act,”.</p></content></subsection><subsection eId="section-124-7"><num>(7)</num><content><p>In sub-paragraph (4) of that paragraph (penalty for failure to comply with paragraph 2A(1)) at the beginning there shall be inserted “Subject to sub-paragraph (5) below,”.</p></content></subsection><subsection eId="section-124-8"><num>(8)</num><content><p><mod>After that sub-paragraph there shall be inserted—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><subparagraph><num>(5)</num><intro><p>Sub-paragraph (4) above does not apply where—</p></intro><level class="para1"><num>(a)</num><content><p>the records which the person fails to keep or preserve are records falling within paragraph (a) of section 12B(4A) of this Act; and</p></content></level><level class="para1"><num>(b)</num><content><p>an officer of the Board is satisfied that any facts which he reasonably requires to be proved, and which would have been proved by the records, are proved by other documentary evidence furnished to him.</p></content></level></subparagraph></quotedStructure></mod></p></content></subsection><subsection eId="section-124-9"><num>(9)</num><intro><p>The amendments made by this section shall not have effect in relation to—</p></intro><level class="para1" eId="section-124-9-a"><num>(a)</num><content><p>any time before this Act is passed, or</p></content></level><level class="para1" eId="section-124-9-b"><num>(b)</num><content><p>any records which a person fails to preserve before this Act is passed.</p></content></level></subsection></section><section eId="section-125"><num>125</num><heading>Determination of tax where no return delivered</heading><subsection eId="section-125-1"><num>(1)</num><content><p><mod>For subsection (1) of section 28C of the <noteRef href="#m00077" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxes Management Act 1970 (determination of tax where no return delivered) there shall be substituted the following subsections—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1)</num><intro><p>This section applies where—</p></intro><level class="para1"><num>(a)</num><content><p>a notice has been given to any person under section 8 or 8A of this Act (the relevant section), and</p></content></level><level class="para1"><num>(b)</num><content><p>the required return is not delivered on or before the filing date.</p></content></level></subsection><subsection><num>(1A)</num><intro><p>An officer of the Board may make a determination of the following amounts, to the best of his information and belief, namely—</p></intro><level class="para1"><num>(a)</num><content><p>the amounts in which the person who should have made the return is chargeable to income tax and capital gains tax for the year of assessment; and</p></content></level><level class="para1"><num>(b)</num><content><p>the amount which is payable by him by way of income tax for that year;</p></content></level><wrapUp><p>and subsection (1AA) of section 8 or, as the case may be, section 8A of this Act applies for the purposes of this subsection as it applies for the purposes of subsection (1) of that section.</p></wrapUp></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-125-2"><num>(2)</num><content><p>In subsection (3) of that section the words “or 11AA” shall cease to have effect.</p></content></subsection><subsection eId="section-125-3"><num>(3)</num><content><p>In subsection (6) of that section for the words “, section 8A(1A) or, as the case may be, section 11(4)” there shall be substituted the words “or, as the case may be, section 8A(1A)”.</p></content></subsection><subsection eId="section-125-4"><num>(4)</num><content><p><mod>After subsection (5) of section 59B of that Act (payment of income tax and capital gains tax) there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(5A)</num><content><p>Where a determination under section 28C of this Act which has effect as a person’s self-assessment is superseded by his self-assessment under section 9 of this Act, any amount of tax which is payable or repayable by virtue of the supersession shall be payable or (as the case may be) repayable on or before the day given by subsection (3) or (4) above.</p></content></subsection></quotedStructure></mod></p></content></subsection></section><section eId="section-126"><num>126</num><heading>PAYE regulations</heading><subsection eId="section-126-1"><num>(1)</num><content><p><mod>After subsection (9) of section 59A of the Taxes Management Act 1970 (payments on account of income tax) there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(10)</num><content><p>Regulations under section 203 of the principal Act (PAYE) may provide that, for the purpose of determining the amount of any such excess as is mentioned in subsection (1) above, any necessary adjustments in respect of matters prescribed by the regulations shall be made to the amount of tax deducted at source under that section.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-126-2"><num>(2)</num><content><p><mod>After subsection (7) of section 59B of that Act (payment of income tax and capital gains tax) there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(8)</num><content><p>Regulations under section 203 of the principal Act (PAYE) may provide that, for the purpose of determining the amount of the difference mentioned in subsection (1) above, any necessary adjustments in respect of matters prescribed by the regulations shall be made to the amount of tax deducted at source under that section.</p></content></subsection></quotedStructure></mod></p></content></subsection></section><section eId="section-127"><num>127</num><heading>Repayment postponed pending completion of enquiries</heading><content><p><mod>After subsection (4) of section 59B of the <noteRef href="#m00078" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxes Management Act 1970 (payment of income tax and capital gains tax) there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(4A)</num><intro><p>Where in the case of a repayment the return on the basis of which the person’s self-assessment was made under section 9 of this Act is enquired into by an officer of the Board—</p></intro><level class="para1"><num>(a)</num><content><p>nothing in subsection (3) or (4) above shall require the repayment to be made before the day on which, by virtue of section 28A(5) of this Act, the officer’s enquiries are treated as completed; but</p></content></level><level class="para1"><num>(b)</num><content><p>the officer may at any time before that day make the repayment, on a provisional basis, to such extent as he thinks fit.</p></content></level></subsection></quotedStructure></mod></p></content></section><section eId="section-128"><num>128</num><heading>Claims for reliefs involving two or more years</heading><subsection eId="section-128-1"><num>(1)</num><intro><p>In section 42 of the Taxes Management Act 1970 (procedure for making claims etc.)—</p></intro><level class="para1" eId="section-128-1-a"><num>(a)</num><content><p>subsections (3A) and (3B) (which are superseded by subsection (2) below) shall cease to have effect;</p></content></level><level class="para1" eId="section-128-1-b"><num>(b)</num><content><p>in subsection (7)(a), the words “534, 535, 537A, 538” shall cease to have effect; and</p></content></level><level class="para1" eId="section-128-1-c"><num>(c)</num><content><p><mod>after subsection (11) there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(11A)</num><content><p>Schedule 1B to this Act shall have effect as respects certain claims for relief involving two or more years of assessment.</p></content></subsection></quotedStructure></mod></p></content></level></subsection><subsection eId="section-128-2"><num>(2)</num><content><p>After Schedule 1A to that Act there shall be inserted, as Schedule 1B, the provisions set out in Schedule 17 to this Act (claims for reliefs involving two or more years).</p></content></subsection><subsection eId="section-128-3"><num>(3)</num><content><p><mod>For subsection (9) of section 96 of the Taxes Act 1988 (relief for fluctuating profits of farming etc.) there shall be substituted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(9)</num><intro><p>Where a person makes a claim under this section, any claim by him for relief under any other provision of the Income Tax Acts for either of the two years of assessment—</p></intro><level class="para1"><num>(a)</num><content><p>shall not be out of time if made before the end of the period during which the claim under this section is capable of being revoked; and</p></content></level><level class="para1"><num>(b)</num><content><p>if already made, may be amended or revoked before the end of that period;</p></content></level><wrapUp><p>and, in relation to a claim made by being included in a return, any reference in this subsection to amending or revoking the claim is a reference to amending the return by amending or, as the case may be, omitting the claim.</p></wrapUp></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-128-4"><num>(4)</num><intro><p>In section 108 of that Act (election for carry-back)—</p></intro><level class="para1" eId="section-128-4-a"><num>(a)</num><content><p>for the words “the inspector within two years after” there shall be substituted the words “an officer of the Board within one year from the 31st January next following”; and</p></content></level><level class="para1" eId="section-128-4-b"><num>(b)</num><content><p>the words from “and, in any such case” to the end shall cease to have effect.</p></content></level></subsection><subsection eId="section-128-5"><num>(5)</num><content><p><mod>For subsection (5) of section 534 of that Act (relief for copyright payments) there shall be substituted the following subsections—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(5)</num><intro><p>A claim under this section with respect to any payment to which it applies by virtue only of subsection (4)(b) above—</p></intro><level class="para1"><num>(a)</num><content><p>shall have effect as a claim with respect to all qualifying payments, that is to say, all such payments in respect of the copyright in the same work which are receivable by the claimant, whether before or after the claim; and</p></content></level><level class="para1"><num>(b)</num><content><p>where qualifying payments are so receivable in two or more years of assessment, shall be treated for the purposes of the Management Act as if it were two or more separate claims, each in respect of the qualifying payments receivable in one of those years.</p></content></level></subsection><subsection><num>(5A)</num><intro><p>A claim under this section may be made at any time within one year from the 31st January next following—</p></intro><level class="para1"><num>(a)</num><content><p>in the case of such a claim as is mentioned in subsection (5) above, the latest year of assessment in which a qualifying payment is receivable; and</p></content></level><level class="para1"><num>(b)</num><content><p>in the case of any other claim, the year of assessment in which the payment in question is receivable.</p></content></level></subsection><subsection><num>(5B)</num><content><p>For the purposes of subsections (5) and (5A) above, a payment shall be regarded as receivable in the year of assessment in computing the amount of the profits or gains of which it would, but for this section, be included.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-128-6"><num>(6)</num><content><p><mod>After subsection (6) of that section there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(6A)</num><intro><p>In the case of persons carrying on a trade, profession or business in partnership, no claim may be made under any of the following provisions, namely—</p></intro><level class="para1"><num>(a)</num><content><p>this section and section 535;</p></content></level><level class="para1"><num>(b)</num><content><p>section 537 as it has effect in relation to this section and section 535; and</p></content></level><level class="para1"><num>(c)</num><content><p>section 537A and section 538,</p></content></level><wrapUp><p>in respect of any payment or sum receivable on or after 6th April 1996; and nothing in any of those provisions shall be construed as applying to profits chargeable to corporation tax.</p></wrapUp></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-128-7"><num>(7)</num><intro><p>In section 535 of that Act (relief where copyright sold after ten years or more), the following shall cease to have effect, namely—</p></intro><level class="para1" eId="section-128-7-a"><num>(a)</num><content><p>in subsection (4), the words “Subject to subsection (5) below”;</p></content></level><level class="para1" eId="section-128-7-b"><num>(b)</num><content><p>subsections (5) and (7); and</p></content></level><level class="para1" eId="section-128-7-c"><num>(c)</num><content><p>in subsection (6), the words from “unless the author” to the end.</p></content></level></subsection><subsection eId="section-128-8"><num>(8)</num><content><p><mod>After subsection (8) of that section there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(8A)</num><content><p>No claim for relief made under subsection (1) above shall be allowed unless it is made within one year from the 31st January next following the year of assessment in which the payment is receivable; and for the purposes of this subsection a payment shall be regarded as receivable in the year of assessment in computing the amount of the profits or gains of which it would, but for this section, be included.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-128-9"><num>(9)</num><content><p><mod>For subsection (5) of section 537A of that Act (relief for payments in respect of designs) there shall be substituted the following subsections—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(5)</num><intro><p>A claim under this section with respect to any payment to which it applies by virtue only of subsection (4)(b) above—</p></intro><level class="para1"><num>(a)</num><content><p>shall have effect as a claim with respect to all qualifying payments, that is to say, all such payments in respect of rights in the design in question which are receivable by the claimant, whether before or after the claim; and</p></content></level><level class="para1"><num>(b)</num><content><p>where qualifying payments are so receivable in two or more years of assessment, shall be treated for the purposes of the Management Act as if it were two or more separate claims, each in respect of the qualifying payments receivable in one of those years.</p></content></level></subsection><subsection><num>(5A)</num><intro><p>A claim under this section may be made at any time within one year from the 31st January next following—</p></intro><level class="para1"><num>(a)</num><content><p>in the case of such a claim as is mentioned in subsection (5) above, the latest year of assessment in which a qualifying payment is receivable; and</p></content></level><level class="para1"><num>(b)</num><content><p>in the case of any other claim, the year of assessment in which the payment in question is receivable.</p></content></level></subsection><subsection><num>(5B)</num><content><p>For the purposes of subsections (5) and (5A) above, a payment shall be regarded as receivable in the year of assessment in computing the amount of the profits or gains of which it would, but for this section, be included.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-128-10"><num>(10)</num><content><p><mod>After subsection (3) of section 538 of that Act (relief for painters, sculptors and other artists) there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(4)</num><content><p>No claim for relief made under subsection (1) above shall be allowed unless it is made within one year from the 31st January next following the year of assessment in which the payment is receivable; and for the purposes of this subsection a payment shall be regarded as receivable in the year of assessment in computing the amount of the profits or gains of which it would, but for this section, be included.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-128-11"><num>(11)</num><content><p>This section (except subsections (1)(b) and (6) above) and Schedule 17 to this Act have effect as respects claims made (or deemed to be made) in relation to the year 1996-97 or later years of assessment.</p></content></subsection><subsection eId="section-128-12"><num>(12)</num><content><p>Subsection (1)(b) above has effect as respects claims made in relation to the year 1997-98 or later years of assessment.</p></content></subsection></section><section eId="section-129"><num>129</num><heading>Claims for medical insurance and vocational training relief</heading><subsection eId="section-129-1"><num>(1)</num><intro><p>Nothing in section 42 of the <noteRef href="#m00079" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxes Management Act 1970 (procedure for making claims etc.), or Schedule 1A to that Act (claims etc. not included in returns), shall apply in relation to—</p></intro><level class="para1" eId="section-129-1-a"><num>(a)</num><content><p>any claim under subsection (6)(b) of section 54 (medical insurance relief) of the <noteRef href="#m00080" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1989 (“the 1989 Act”); or</p></content></level><level class="para1" eId="section-129-1-b"><num>(b)</num><content><p>any claim under subsection (5)(b) of section 32 (vocational training relief) of the <noteRef href="#m00081" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1991 (“the 1991 Act”).</p></content></level></subsection><subsection eId="section-129-2"><num>(2)</num><content><p>In section 54(6)(b) of the 1989 Act and section 32(5)(b) of the 1991 Act, after the words “on making a claim” there shall be inserted the words “in accordance with regulations”.</p></content></subsection><subsection eId="section-129-3"><num>(3)</num><content><p><mod>In section 57(1) of the 1989 Act (medical insurance relief: supplementary), after paragraph (a) there shall be inserted the following paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(aa)</num><content><p>make provision for and with respect to appeals against a decision of an officer of the Board or the Board with respect to a claim under section 54(6)(b) above;</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-129-4"><num>(4)</num><content><p><mod>In section 33(1) of the 1991 Act (vocational training relief: supplementary), after paragraph (a) there shall be inserted the following paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(aa)</num><content><p>make provision for and with respect to appeals against a decision of an officer of the Board or the Board with respect to a claim under section 32(5)(b) above;</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-129-5"><num>(5)</num><content><p>Subsection (1)(a) above shall not apply in relation to claims made before the coming into force of regulations made by virtue of section 57(1)(aa) of the 1989 Act.</p></content></subsection><subsection eId="section-129-6"><num>(6)</num><content><p>Subsection (1)(b) above shall not apply in relation to claims made before the coming into force of regulations made by virtue of section 33(1)(aa) of the 1991 Act.</p></content></subsection></section><section eId="section-130"><num>130</num><heading>Procedure for giving notices</heading><subsection eId="section-130-1"><num>(1)</num><intro><p>Section 42 of, and Schedule 1A to, the Taxes Management Act 1970, as they have effect—</p></intro><level class="para1" eId="section-130-1-a"><num>(a)</num><content><p>for the purposes of income tax and capital gains tax, as respects the year 1996-97 and subsequent years of assessment, and</p></content></level><level class="para1" eId="section-130-1-b"><num>(b)</num><content><p>for the purposes of corporation tax, as respects accounting periods ending on or after the day appointed under section 199 of the <noteRef href="#m00082" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1994 for the purposes of Chapter III of Part IV of that Act (self-assessment management provisions),</p></content></level><wrapUp><p>shall be amended in accordance with the following provisions of this section.</p></wrapUp></subsection><subsection eId="section-130-2"><num>(2)</num><intro><p>In subsection (7) of section 42 (which contains a list of provisions, claims under which must be made in accordance with subsection (6)) the following words shall cease to have effect, that is to say—</p></intro><level class="para1" eId="section-130-2-a"><num>(a)</num><content><p>in paragraph (a), “62A,” and “401,”; and</p></content></level><level class="para1" eId="section-130-2-b"><num>(b)</num><content><p>in paragraph (c), “30,”, “33,”, “48, 49,” and “124A,”.</p></content></level></subsection><subsection eId="section-130-3"><num>(3)</num><content><p>In subsection (10) of that section (section 42 to apply in relation to elections and notices as it applies in relation to claims) the words “and notices” shall cease to have effect.</p></content></subsection><subsection eId="section-130-4"><num>(4)</num><content><p>In subsection (11) of that section (Schedule 1A to apply as respects any claim, election or notice made otherwise than in a return under section 8 etc) for the words “, election or notice” there shall be substituted “or election”.</p></content></subsection><subsection eId="section-130-5"><num>(5)</num><content><p>In paragraph 1 of Schedule 1A (claims etc. not included in returns), in the definition of “claim”, for the words “means a claim, election or notice” there shall be substituted “means a claim or election”.</p></content></subsection></section><section eId="section-131"><num>131</num><heading>Interest on overdue tax</heading><subsection eId="section-131-1"><num>(1)</num><content><p><mod>Section 110 of the <noteRef href="#m00083" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1995 (interest on overdue tax) shall be deemed to have been enacted with the insertion after subsection (3) of the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(4)</num><content><p>So far as it relates to partnerships whose trades, professions or businesses were set up and commenced before 6th April 1994, subsection (1) above has effect as respects the year 1997-98 and subsequent years of assessment.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-131-2"><num>(2)</num><content><p>In subsection (3) of section 86 of the <noteRef href="#m00084" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxes Management Act 1970 (which was substituted by the said section 110), for the words “section 93” there shall be substituted the words “section 92”.</p></content></subsection><subsection eId="section-131-3"><num>(3)</num><content><p>In Schedule 19 to the <noteRef href="#m00085" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1994, paragraph 23 (which is superseded by the said section 110) shall cease to have effect.</p></content></subsection></section><section eId="section-132"><num>132</num><heading>Overdue tax and excessive payments by the Board</heading><content><p>Schedule 18 to this Act (which amends enactments relating to overdue tax or excessive payments by the Board) shall have effect.</p></content></section><section eId="section-133"><num>133</num><heading>Claims and enquiries</heading><content><p>Schedule 19 to this Act (which, for purposes connected with self-assessment, further amends provisions relating to claims and enquiries) shall have effect.</p></content></section><section eId="section-134"><num>134</num><heading>Discretions exercisable by the Board etc</heading><subsection eId="section-134-1"><num>(1)</num><content><p>Schedule 20 to this Act (which in connection with self-assessment modifies enactments by virtue of which a decision or other action affecting an assessment may be or is required to be taken by the Board, or one of their officers, before the making of the assessment) shall have effect.</p></content></subsection><subsection eId="section-134-2"><num>(2)</num><intro><p>Subject to subsection (3) below, the amendments made by that Schedule shall have effect—</p></intro><level class="para1" eId="section-134-2-a"><num>(a)</num><content><p>for the purposes of income tax and capital gains tax, as respects the year 1996-97 and subsequent years of assessment; and</p></content></level><level class="para1" eId="section-134-2-b"><num>(b)</num><content><p>for the purposes of corporation tax, as respects accounting periods ending on or after the day appointed under section 199 of the Finance Act 1994 for the purposes of Chapter III of Part IV of that Act (self-assessment management provisions).</p></content></level></subsection><subsection eId="section-134-3"><num>(3)</num><content><p>Paragraphs 22 and 23 of that Schedule shall have effect in relation to shares issued on or after 6th April 1996.</p></content></subsection></section><section eId="section-135"><num>135</num><heading>Time limits for claims etc</heading><subsection eId="section-135-1"><num>(1)</num><content><p>Schedule 21 to this Act (which in connection with self-assessment modifies enactments which impose time limits on the making of claims, elections, adjustments and assessments and the giving of notices, and enactments which provide for the giving of notice to the inspector) shall have effect.</p></content></subsection><subsection eId="section-135-2"><num>(2)</num><intro><p>Subject to subsections (3) to (5) below, the amendments made by that Schedule shall have effect—</p></intro><level class="para1" eId="section-135-2-a"><num>(a)</num><content><p>for the purposes of income tax and capital gains tax, as respects the year 1996-97 and subsequent years of assessment; and</p></content></level><level class="para1" eId="section-135-2-b"><num>(b)</num><content><p>for the purposes of corporation tax, as respects accounting periods ending on or after the day appointed under section 199 of the <noteRef href="#m00086" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1994 for the purposes of Chapter III of Part IV of that Act (self-assessment management provisions).</p></content></level></subsection><subsection eId="section-135-3"><num>(3)</num><content><p>The amendments made to the <noteRef href="#m00087" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Capital Allowances Act 1990 and the Finance Act 1994 by that Schedule, in their application to trades, professions or vocations set up and commenced before 6th April 1994, shall (so far as relating to income tax) have effect as respects the year 1997-98 and subsequent years of assessment.</p></content></subsection><subsection eId="section-135-4"><num>(4)</num><intro><p>The Capital Allowances Act 1990, as it has effect for the year 1996-97 in relation to trades, professions or vocations set up and commenced before 6th April 1994, shall (so far as relating to income tax) have effect as respects that year with the following modifications, that is to say, as if—</p></intro><level class="para1" eId="section-135-4-a"><num>(a)</num><content><p>in sections 25(3)(c), 30(1), 31(3) and 33(1) and (4), for “two years after the end of” there were substituted “the first anniversary of the 31st January next following”;</p></content></level><level class="para1" eId="section-135-4-b"><num>(b)</num><content><p>in section 37(2)(c), for “more than two years after the end of the chargeable period or its basis period” there were substituted “later than the first anniversary of the 31st January next following the year of assessment in which ends the basis period”;</p></content></level><level class="para1" eId="section-135-4-c"><num>(c)</num><content><p>in section 53(2), for “before the expiry of the period of two years beginning at the end of” there were substituted “on or before the first anniversary of the 31st January next following”;</p></content></level><level class="para1" eId="section-135-4-d"><num>(d)</num><content><p>in section 68(5), for “two years after the end of that period” there were substituted “the first anniversary of the 31st January next following the year of assessment in which the relevant period ends”;</p></content></level><level class="para1" eId="section-135-4-e"><num>(e)</num><content><p>in section 68(9A)(b), for “two years after the end of” there were substituted “the first anniversary of the 31st January next following the year of assessment in which ends”;</p></content></level><level class="para1" eId="section-135-4-f"><num>(f)</num><content><p>in section 129(2), for “not more than two years after the end of” there were substituted “on or before the first anniversary of the 31st January next following”;</p></content></level><level class="para1" eId="section-135-4-g"><num>(g)</num><content><p>in section 141(3), for “the inspector not later than two years after the end of” there were substituted “an officer of the Board on or before the first anniversary of the 31st January next following”.</p></content></level></subsection><subsection eId="section-135-5"><num>(5)</num><content><p>Section 118 of the <noteRef href="#m00088" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1994, as it has effect for the year 1996-97 in relation to trades, professions or vocations set up and commenced before 6th April 1994, shall (so far as relating to income tax) have effect as respects that year as if, in subsection (3), for “two years after the end of” there were substituted “the first anniversary of the 31st January next following”.</p></content></subsection></section><section eId="section-136"><num>136</num><heading>Appeals</heading><content><p>Schedule 22 to this Act (which makes provision, in connection with self-assessment, about appeals) shall have effect.</p></content></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-IV-chapter-V-crossheading-companies"><heading>Companies</heading><section eId="section-137"><num>137</num><heading>Schedules 13 and 16 to the Taxes Act 1988</heading><subsection eId="section-137-1"><num>(1)</num><content><p>Schedule 23 to this Act shall have effect.</p></content></subsection><subsection eId="section-137-2"><num>(2)</num><content><p>The amendments made by that Schedule shall have effect as respects return periods ending on or after the appointed day for the purposes of Chapter III of Part IV of the <noteRef href="#m00089" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1994.</p></content></subsection><subsection eId="section-137-3"><num>(3)</num><intro><p>In subsection (2) above “return period” means—</p></intro><level class="para1" eId="section-137-3-a"><num>(a)</num><content><p>so far as relating to Schedule 13 to the Taxes Act 1988, a period for which a return is required to be made under paragraph 1 of that Schedule; and</p></content></level><level class="para1" eId="section-137-3-b"><num>(b)</num><content><p>so far as relating to Schedule 16 to that Act, a period for which a return is required to be made under paragraph 2 of that Schedule.</p></content></level></subsection></section><section eId="section-138"><num>138</num><heading>Accounting periods</heading><content><p>Schedule 24 to this Act (which makes provision, in connection with self-assessment, in relation to accounting periods) shall have effect.</p></content></section><section eId="section-139"><num>139</num><heading>Surrenders of advance corporation tax</heading><content><p>Schedule 25 to this Act (which makes provision, in connection with self-assessment, about surrenders of advance corporation tax) shall have effect.</p></content></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-IV-chapter-V-crossheading-chargeable-gains"><heading>Chargeable gains</heading><section eId="section-140"><num>140</num><heading>Transfer of company’s assets to investment trust</heading><subsection eId="section-140-1"><num>(1)</num><content><p><mod>In section 101 of the <noteRef href="#m00090" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxation of Chargeable Gains Act 1992 (transfer of company’s assets to investment trust) after subsection (1) there shall be inserted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1A)</num><content><p>Any chargeable gain or allowable loss which, apart from this subsection, would accrue to the company on the sale referred to in subsection (1) above shall be treated as accruing to the company immediately before the end of the last accounting period to end before the beginning of the accounting period mentioned in that subsection.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-140-2"><num>(2)</num><content><p>This section shall have effect as respects accounting periods ending on or after the day appointed under section 199 of the <noteRef href="#m00091" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1994 for the purposes of Chapter III of Part IV of that Act (self-assessment management provisions).</p></content></subsection></section><section eId="section-141"><num>141</num><heading>Roll-over relief</heading><subsection eId="section-141-1"><num>(1)</num><intro><p>In subsection (4) of section 152 of the Taxation of Chargeable Gains Act 1992 (roll-over relief)—</p></intro><level class="para1" eId="section-141-1-a"><num>(a)</num><content><p>after the word “making” there shall be inserted the words “or amending”; and</p></content></level><level class="para1" eId="section-141-1-b"><num>(b)</num><content><p>after the word “assessments”, in the second place where it occurs, there shall be inserted the words “or amendments”.</p></content></level></subsection><subsection eId="section-141-2"><num>(2)</num><content><p><mod>After section 153 of that Act there shall be inserted the following section—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>153A</num><heading>Provisional application of sections 152 and 153</heading><subsection><num>(1)</num><intro><p>This section applies where a person carrying on a trade who for a consideration disposes of, or of his interest in, any assets (“the old assets”) declares, in his return for the chargeable period in which the disposal takes place—</p></intro><level class="para1"><num>(a)</num><content><p>that the whole or any specified part of the consideration will be applied in the acquisition of, or of an interest in, other assets (“the new assets”) which on the acquisition will be taken into use, and used only, for the purposes of the trade;</p></content></level><level class="para1"><num>(b)</num><content><p>that the acquisition will take place as mentioned in subsection (3) of section 152; and</p></content></level><level class="para1"><num>(c)</num><content><p>that the new assets will be within the classes listed in section 155.</p></content></level></subsection><subsection><num>(2)</num><content><p>Until the declaration ceases to have effect, section 152 or, as the case may be, section 153 shall apply as if the acquisition had taken place and the person had made a claim under that section.</p></content></subsection><subsection><num>(3)</num><intro><p>The declaration shall cease to have effect as follows—</p></intro><level class="para1"><num>(a)</num><content><p>if and to the extent that it is withdrawn before the relevant day, or is superseded before that day by a valid claim made under section 152 or 153, on the day on which it is so withdrawn or superseded; and</p></content></level><level class="para1"><num>(b)</num><content><p>if and to the extent that it is not so withdrawn or superseded, on the relevant day.</p></content></level></subsection><subsection><num>(4)</num><intro><p>On the declaration ceasing to have effect in whole or in part, all necessary adjustments—</p></intro><level class="para1"><num>(a)</num><content><p>shall be made by making or amending assessments or by repayment or discharge of tax; and</p></content></level><level class="para1"><num>(b)</num><content><p>shall be so made notwithstanding any limitation on the time within which assessments or amendments may be made.</p></content></level></subsection><subsection><num>(5)</num><intro><p>In this section “the relevant day” means—</p></intro><level class="para1"><num>(a)</num><content><p>in relation to capital gains tax, the third anniversary of the 31st January next following the year of assessment in which the disposal of, or of the interest in, the old assets took place;</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to corporation tax, the fourth anniversary of the last day of the accounting period in which that disposal took place.</p></content></level></subsection><subsection><num>(6)</num><content><p>Subsections (6), (8), (10) and (11) of section 152 shall apply for the purposes of this section as they apply for the purposes of that section.</p></content></subsection></section></quotedStructure></mod></p></content></subsection><subsection eId="section-141-3"><num>(3)</num><intro><p>In section 175 of that Act (replacement of business assets by members of a group)—</p></intro><level class="para1" eId="section-141-3-a"><num>(a)</num><content><p>in subsections (2A) and (2B), after the words “Section 152” there shall be inserted the words “or 153”; and</p></content></level><level class="para1" eId="section-141-3-b"><num>(b)</num><content><p>in subsection (2C), for the words “Section 152 shall not” there shall be substituted the words “Neither section 152 nor section 153 shall”.</p></content></level></subsection><subsection eId="section-141-4"><num>(4)</num><content><p>In section 246 of that Act (time of disposal or acquisition), the words from “or, if earlier” to the end shall cease to have effect.</p></content></subsection><subsection eId="section-141-5"><num>(5)</num><content><p>In subsection (5)(b) of section 247 of that Act (roll-over relief on compulsory acquisition), for the words “subsection (3)” there shall be substituted the words “subsections (3) and (4)”.</p></content></subsection><subsection eId="section-141-6"><num>(6)</num><content><p><mod>After that section there shall be inserted the following section—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>247A</num><heading>Provisional application of section 247</heading><subsection><num>(1)</num><intro><p>This section applies where a person who disposes of land (“the old land”) to an authority exercising or having compulsory powers declares, in his return for the chargeable period in which the disposal takes place—</p></intro><level class="para1"><num>(a)</num><content><p>that the whole or any specified part of the consideration for the disposal will be applied in the acquisition of other land (“the new land”);</p></content></level><level class="para1"><num>(b)</num><content><p>that the acquisition will take place as mentioned in subsection (3) of section 152; and</p></content></level><level class="para1"><num>(c)</num><content><p>that the new land will not be land excluded from section 247(1)(c) by section 248.</p></content></level></subsection><subsection><num>(2)</num><content><p>Until the declaration ceases to have effect, section 247 shall apply as if the acquisition had taken place and the person had made a claim under that section.</p></content></subsection><subsection><num>(3)</num><content><p>For the purposes of this section, subsections (3) to (5) of section 153A shall apply as if the reference to section 152 or 153 were a reference to section 247 and the reference to the old assets were a reference to the old land.</p></content></subsection><subsection><num>(4)</num><content><p>In this section “land” and “authority exercising or having compulsory powers” have the same meaning as in section 247.</p></content></subsection></section></quotedStructure></mod></p></content></subsection></section><section eId="section-142"><num>142</num><heading>Premiums for leases</heading><subsection eId="section-142-1"><num>(1)</num><content><p>Paragraph 3 of Schedule 8 to the <noteRef href="#m00092" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxation of Chargeable Gains Act 1992 (premiums for leases) shall be amended as follows.</p></content></subsection><subsection eId="section-142-2"><num>(2)</num><content><p><mod>In sub-paragraph (2), for the words “for the period” to the end there shall be substituted the words <quotedText startQuote="“">, being a premium which—</quotedText><quotedStructure endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><level class="para1"><num>(a)</num><content><p>is due when the sum is payable by the tenant; and</p></content></level><level class="para1"><num>(b)</num><content><p>where the sum is payable in lieu of rent, is in respect of the period in relation to which the sum is payable.</p></content></level></quotedStructure></mod></p></content></subsection><subsection eId="section-142-3"><num>(3)</num><content><p><mod>In sub-paragraph (3), for the words “for the period” to the end there shall be substituted the words <quotedText startQuote="“">, being a premium which—</quotedText><quotedStructure endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><level class="para1"><num>(a)</num><content><p>is due when the sum is payable by the tenant; and</p></content></level><level class="para1"><num>(b)</num><content><p>is in respect of the period from the time when the variation or waiver takes effect to the time when it ceases to have effect.</p></content></level></quotedStructure></mod></p></content></subsection><subsection eId="section-142-4"><num>(4)</num><content><p><mod>For sub-paragraphs (4) to (6) there shall be substituted the following sub-paragraphs—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><subparagraph><num>(4)</num><intro><p>Where under sub-paragraph (2) or (3) above a premium is deemed to have been received by the landlord, that shall not be the occasion of any recomputation of the gain accruing on the receipt of any other premium, and the premium shall be regarded—</p></intro><level class="para1"><num>(a)</num><content><p>in the case of a premium deemed to have been received for the surrender of a lease, as consideration for a separate transaction which is effected when the premium is deemed to be due and consists of the disposal by the landlord of his interest in the lease; and</p></content></level><level class="para1"><num>(b)</num><content><p>in any other case, as consideration for a separate transaction which is effected when the premium is deemed to be due and consists of a further part disposal of the freehold or other asset out of which the lease is granted.</p></content></level></subparagraph><subparagraph><num>(5)</num><intro><p>If under sub-paragraph (2) or (3) above a premium is deemed to have been received by the landlord, otherwise than as consideration for the surrender of the lease, and the landlord is a tenant under a lease the duration of which does not exceed 50 years, this Schedule shall apply—</p></intro><level class="para1"><num>(a)</num><content><p>as if an amount equal to the amount of that premium deemed to have been received had been given by way of consideration for the grant of the part of the sublease covered by the period in respect of which the premium is deemed to have been paid; and</p></content></level><level class="para1"><num>(b)</num><content><p>as if that consideration were expenditure incurred by the sublessee and attributable to that part of the sublease under section 38(1)(b).</p></content></level></subparagraph></quotedStructure></mod></p></content></subsection><subsection eId="section-142-5"><num>(5)</num><content><p>This section has effect as respects sums payable on or after 6th April 1996.</p></content></subsection></section></hcontainer></chapter>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="part-IV-chapter-V-crossheading-general"><heading>General</heading><section eId="section-121"><num>121</num><heading>Returns and self assessment</heading><subsection eId="section-121-1"><num>(1)</num><content><p>In subsection (1) of section 8 of the <noteRef href="#m00071" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxes Management Act 1970 (personal return), and in subsection (1) of section 8A of that Act (trustee’s return), after the words “year of assessment,” there shall be inserted the words “and the amount payable by him by way of income tax for that year,”.</p></content></subsection><subsection eId="section-121-2"><num>(2)</num><content><p>In subsection (1A) of each of those sections, the words from “and the amounts referred to” to the end shall cease to have effect.</p></content></subsection><subsection eId="section-121-3"><num>(3)</num><content><p><mod>After that subsection of each of those sections there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1AA)</num><intro><p>For the purposes of subsection (1) above—</p></intro><level class="para1"><num>(a)</num><content><p>the amounts in which a person is chargeable to income tax and capital gains tax are net amounts, that is to say, amounts which take into account any relief or allowance a claim for which is included in the return; and</p></content></level><level class="para1"><num>(b)</num><content><p>the amount payable by a person by way of income tax is the difference between the amount in which he is chargeable to income tax and the aggregate amount of any income tax deducted at source and any tax credits to which section 231 of the principal Act applies.</p></content></level></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-121-4"><num>(4)</num><content><p><mod>For subsection (1) of section 9 of that Act (returns to include self-assessment) there shall be substituted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1)</num><intro><p>Subject to subsection (2) below, every return under section 8 or 8A of this Act shall include a self-assessment, that is to say—</p></intro><level class="para1"><num>(a)</num><content><p>an assessment of the amounts in which, on the basis of the information contained in the return and taking into account any relief or allowance a claim for which is included in the return, the person making the return is chargeable to income tax and capital gains tax for the year of assessment; and</p></content></level><level class="para1"><num>(b)</num><content><p>an assessment of the amount payable by him by way of income tax, that is to say, the difference between the amount in which he is assessed to income tax under paragraph (a) above and the aggregate amount of any income tax deducted at source and any tax credits to which section 231 of the principal Act applies.</p></content></level></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-121-5"><num>(5)</num><content><p>In subsection (1)(b) of section 11AA of that Act (return of profits to include self-assessment), for the words “, allowance or repayment of tax” there shall be substituted the words “or allowance”.</p></content></subsection><subsection eId="section-121-6"><num>(6)</num><content><p>In subsection (1)(a) of section 12AA of that Act (partnership return), after the words “so chargeable” there shall be inserted the words “and the amount payable by way of income tax by each such partner”.</p></content></subsection><subsection eId="section-121-7"><num>(7)</num><content><p><mod>For subsection (1A) of that section there shall be substituted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1A)</num><intro><p>For the purposes of subsection (1) above—</p></intro><level class="para1"><num>(a)</num><content><p>the amount in which a partner is chargeable to income tax or corporation tax is a net amount, that is to say, an amount which takes into account any relief or allowance for which a claim is made; and</p></content></level><level class="para1"><num>(b)</num><content><p>the amount payable by a partner by way of income tax is the difference between the amount in which he is chargeable to income tax and the aggregate amount of any income tax deducted at source and any tax credits to which section 231 of the principal Act applies.</p></content></level></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-121-8"><num>(8)</num><intro><p>This section and sections 122, 123, 125 to 127 and 141 below—</p></intro><level class="para1" eId="section-121-8-a"><num>(a)</num><content><p>so far as they relate to income tax and capital gains tax, have effect as respects the year 1996-97 and subsequent years of assessment, and</p></content></level><level class="para1" eId="section-121-8-b"><num>(b)</num><content><p>so far as they relate to corporation tax, have effect as respects accounting periods ending on or after the appointed day for the purposes of Chapter III of Part IV of the <noteRef href="#m00072" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1994.</p></content></level></subsection></section><section eId="section-122"><num>122</num><heading>Notional tax deductions and payments</heading><subsection eId="section-122-1"><num>(1)</num><content><p>At the end of subsection (1) of section 9 of the <noteRef href="#m00073" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxes Management Act 1970 (as substituted by section 121(4) above) there shall be inserted the words “but nothing in this subsection shall enable a self-assessment to show as repayable any income tax treated as deducted or paid by virtue of section 233(1), 246D(1), 249(4), 421(1), 547(5) or 599A(5) of the principal Act.”</p></content></subsection><subsection eId="section-122-2"><num>(2)</num><content><p>At the end of subsection (1) of section 59B of that Act (payment of income tax and capital gains tax) there shall be inserted the words “but nothing in this subsection shall require the repayment of any income tax treated as deducted or paid by virtue of section 233(1), 246D(1), 249(4), 421(1), 547(5) or 599A(5) of the principal Act.”</p></content></subsection><subsection eId="section-122-3"><num>(3)</num><content><p><mod>In subsection (1) of section 233 of the Taxes Act 1988 (taxation of certain recipients of distributions), for paragraphs (a) and (b) there shall be substituted the following paragraphs—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><level class="para1"><num>(a)</num><content><p>that person shall be treated as having paid income tax at the lower rate on the amount or value of the distribution;</p></content></level><level class="para1"><num>(b)</num><content><p>no repayment shall be made of any income tax treated by virtue of paragraph (a) above as having been paid;</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-122-4"><num>(4)</num><intro><p>In paragraph (a) of subsection (1A) of that section—</p></intro><level class="para1" eId="section-122-4-a"><num>(a)</num><content><p><mod>for sub-paragraph (i) there shall be substituted the following sub-paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><level class="para2"><num>(i)</num><content><p>income on which that person falls to be treated as having paid income tax at the lower rate by virtue of paragraph (a) of subsection (1) above, or</p></content></level></quotedStructure><inline name="appendText">; and</inline></mod></p></content></level><level class="para1" eId="section-122-4-b"><num>(b)</num><content><p>for the words “that assessment” there shall be substituted the words “that subsection”.</p></content></level></subsection><subsection eId="section-122-5"><num>(5)</num><intro><p>In the following enactments, namely—</p></intro><level class="para1" eId="section-122-5-a"><num>(a)</num><content><p>subsection (2)(a) of section 246D of that Act (individuals etc.); and</p></content></level><level class="para1" eId="section-122-5-b"><num>(b)</num><content><p>subsection (4)(a) of section 249 of that Act (stock dividends treated as income),</p></content></level><wrapUp><p>for the words from “no assessment” to “on it” there shall be substituted the words “the individual shall be treated as having paid income tax at the lower rate on that income”.</p></wrapUp></subsection><subsection eId="section-122-6"><num>(6)</num><content><p>In subsection (1)(b) of section 421 of that Act (taxation of borrower when loan released), for the words “no assessment shall be made on him in respect of” there shall be substituted the words “he shall not be liable to pay”.</p></content></subsection><subsection eId="section-122-7"><num>(7)</num><intro><p>The following shall cease to have effect, namely—</p></intro><level class="para1" eId="section-122-7-a"><num>(a)</num><content><p>in subsection (5)(a) of section 547 of that Act (method of charging to tax), the words from “no assessment” to “but”;</p></content></level><level class="para1" eId="section-122-7-b"><num>(b)</num><content><p>in subsection (6) of section 599A of that Act (charge to tax: payments out of surplus funds), the words from “subject” to “and”; and</p></content></level><level class="para1" eId="section-122-7-c"><num>(c)</num><content><p>subsection (7) of that section.</p></content></level></subsection></section><section eId="section-123"><num>123</num><heading>Liability of partners</heading><subsection eId="section-123-1"><num>(1)</num><content><p>In subsection (2) of section 12AA of the <noteRef href="#m00074" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxes Management Act 1970 (partnership return) after the words “with the notice” there shall be inserted the words “or a successor of his”.</p></content></subsection><subsection eId="section-123-2"><num>(2)</num><content><p>In subsection (3) of that section after the words “the partner” there shall be inserted the words “or a successor of his”.</p></content></subsection><subsection eId="section-123-3"><num>(3)</num><content><p>In subsection (7)(a) of that section, the words “any part of” shall cease to have effect.</p></content></subsection><subsection eId="section-123-4"><num>(4)</num><content><p><mod>At the end of that section there shall be inserted the following subsections—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(11)</num><intro><p>In this Act “successor”, in relation to a person who is required to make and deliver, or has made and delivered, a return in pursuance of a notice under subsection (2) or (3) above, but is no longer available, means—</p></intro><level class="para1"><num>(a)</num><content><p>where a partner is for the time being nominated for the purposes of this subsection by a majority of the relevant partners, that partner; and</p></content></level><level class="para1"><num>(b)</num><intro><p>where no partner is for the time being so nominated, such partner as—</p></intro><level class="para2"><num>(i)</num><content><p>in the case of a notice under subsection (2) above, is identified in accordance with rules given with that notice; or</p></content></level><level class="para2"><num>(ii)</num><content><p>in the case of a notice under subsection (3) above, is nominated for the purposes of this subsection by an officer of the Board;</p></content></level><wrapUp><p>and “predecessor” and “successor”, in relation to a person so nominated or identified, shall be construed accordingly.</p></wrapUp></level></subsection><subsection><num>(12)</num><content><p>For the purposes of subsection (11) above a nomination under paragraph (a) of that subsection, and a revocation of such a nomination, shall not have effect in relation to any time before notice of the nomination or revocation is given to an officer of the Board.</p></content></subsection><subsection><num>(13)</num><content><p>In this section “relevant partner” means a person who was a partner at any time during the period for which the return was made or is required, or the personal representatives of such a person.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-123-5"><num>(5)</num><intro><p>In subsection (1) of section 12AB of that Act (partnership return to include partnership statement)—</p></intro><level class="para1" eId="section-123-5-a"><num>(a)</num><content><p>in paragraph (a), for the words “each period of account ending within the period in respect of which the return is made” there shall be substituted the words “the period in respect of which the return is made and each period of account ending within that period”;</p></content></level><level class="para1" eId="section-123-5-b"><num>(b)</num><content><p>in sub-paragraph (i) of that paragraph, for the words “that period” there shall be substituted the words “the period in question”;</p></content></level><level class="para1" eId="section-123-5-c"><num>(c)</num><content><p><mod>after that sub-paragraph there shall be inserted the following sub-paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para2"><num>(ia)</num><content><p>the amount of the consideration which, on that basis, has accrued to the partnership in respect of each disposal of partnership property during that period,</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p><p>and</p></content></level><level class="para1" eId="section-123-5-d"><num>(d)</num><content><p>in paragraph (b), after the words “such period” there shall be inserted the words “as is mentioned in paragraph (a) above” and after the word “loss,” there shall be inserted the word “consideration,”.</p></content></level></subsection><subsection eId="section-123-6"><num>(6)</num><intro><p>In subsection (2) of that section—</p></intro><level class="para1" eId="section-123-6-a"><num>(a)</num><content><p>in paragraph (a) after the words “to that person” there shall be inserted the words “or a successor”; and</p></content></level><level class="para1" eId="section-123-6-b"><num>(b)</num><content><p>in paragraph (b) for the words from “partnership statement” to “he” there shall be substituted the words “or a predecessor’s partnership statement as to give effect to any amendments to the return in which it is included which he or a predecessor”.</p></content></level></subsection><subsection eId="section-123-7"><num>(7)</num><intro><p>In section 12AC of that Act (power to enquire into partnership return)—</p></intro><level class="para1" eId="section-123-7-a"><num>(a)</num><content><p>in subsection (1)(b), after the word “person” there shall be inserted the words “or a successor of that person”; and</p></content></level><level class="para1" eId="section-123-7-b"><num>(b)</num><content><p>subsection (6) (which is superseded by subsection (4) above) shall cease to have effect.</p></content></level></subsection><subsection eId="section-123-8"><num>(8)</num><content><p>In subsection (1)(b) of section 93A of that Act (failure to make partnership return), after the word “he” there shall be inserted the words “or a successor of his”.</p></content></subsection><subsection eId="section-123-9"><num>(9)</num><content><p>In subsections (3) and (4) of that section, after the words “the representative partner” there shall be inserted the words “or a successor of his”.</p></content></subsection><subsection eId="section-123-10"><num>(10)</num><intro><p>In subsection (6) of that section—</p></intro><level class="para1" eId="section-123-10-a"><num>(a)</num><content><p>after the words “the representative partner” there shall be inserted the words “or a successor of his”; and</p></content></level><level class="para1" eId="section-123-10-b"><num>(b)</num><content><p>after the words “that partner”, in both places where they occur, there shall be inserted the words “or successor”.</p></content></level></subsection><subsection eId="section-123-11"><num>(11)</num><content><p>In subsection (7) of that section, for the words “the representative partner had a reasonable excuse for not delivering the return” there shall be substituted the words “the person for the time being required to deliver the return (whether the representative partner or a successor of his) had a reasonable excuse for not delivering it”.</p></content></subsection><subsection eId="section-123-12"><num>(12)</num><content><p>In subsection (1)(a)(ii) of section 95A of that Act (incorrect partnership return or accounts), for the words “such a return” there shall be substituted the words “a return of such a kind”.</p></content></subsection><subsection eId="section-123-13"><num>(13)</num><intro><p>In subsection (3) of that section—</p></intro><level class="para1" eId="section-123-13-a"><num>(a)</num><content><p>after the words “the representative partner” there shall be inserted the words “or a successor of his”; and</p></content></level><level class="para1" eId="section-123-13-b"><num>(b)</num><content><p>after the words “that partner”, in both places where they occur, there shall be inserted the words “or successor”.</p></content></level></subsection><subsection eId="section-123-14"><num>(14)</num><content><p><mod>In subsection (1) of section 118 of that Act (interpretation), for the definition of “successor” there shall be substituted the following definition—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><p>“successor”, in relation to a person who is required to make and deliver, or has made and delivered, a return under section 12AA of this Act, and “predecessor” and “successor”, in relation to the successor of such a person, shall be construed in accordance with section 12AA(11) of this Act;</p></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection></section><section eId="section-124"><num>124</num><heading>Retention of original records</heading><subsection eId="section-124-1"><num>(1)</num><intro><p>The <noteRef href="#m00075" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxes Management Act 1970, as it has effect—</p></intro><level class="para1" eId="section-124-1-a"><num>(a)</num><content><p>for the purposes of income tax and capital gains tax, as respects the year 1996-97 and subsequent years of assessment, and</p></content></level><level class="para1" eId="section-124-1-b"><num>(b)</num><content><p>for the purposes of corporation tax, as respects accounting periods ending on or after the day appointed under section 199 of the <noteRef href="#m00076" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1994 for the purposes of Chapter III of Part IV of that Act (self-assessment management provisions),</p></content></level><wrapUp><p>shall be amended in accordance with the following provisions of this section.</p></wrapUp></subsection><subsection eId="section-124-2"><num>(2)</num><content><p>In section 12B (records to be kept for purposes of returns) in subsection (4) (which permits the duty to preserve records to be discharged by the preservation of the information contained in them, and provides for the admissibility in evidence of copy documents) at the beginning there shall be inserted the words “Except in the case of records falling within subsection (4A) below,”.</p></content></subsection><subsection eId="section-124-3"><num>(3)</num><content><p><mod>After that subsection there shall be inserted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(4A)</num><intro><p>The records which fall within this subsection are—</p></intro><level class="para1"><num>(a)</num><intro><p>any statement in writing such as is mentioned in—</p></intro><level class="para2"><num>(i)</num><content><p>subsection (1) of section 234 of the principal Act (amount of qualifying distribution and tax credit), or</p></content></level><level class="para2"><num>(ii)</num><content><p>subsection (1) of section 352 of that Act (gross amount, tax deducted, and actual amount paid, in certain cases where payments are made under deduction of tax),</p></content></level><wrapUp><p>which is furnished by the company or person there mentioned, whether after the making of a request or otherwise;</p></wrapUp></level><level class="para1"><num>(b)</num><content><p>any certificate or other record (however described) which is required by regulations under section 566(1) of the principal Act to be given to a sub-contractor (within the meaning of Chapter IV of Part XIII of that Act) on the making of a payment to which section 559 of that Act (deductions on account of tax) applies;</p></content></level><level class="para1"><num>(c)</num><intro><p>any such record as may be requisite for making a correct and complete claim in respect of, or otherwise requisite for making a correct and complete return so far as relating to, an amount of tax—</p></intro><level class="para2"><num>(i)</num><content><p>which has been paid under the laws of a territory outside the United Kingdom, or</p></content></level><level class="para2"><num>(ii)</num><content><p>which would have been payable under the law of such a territory but for a relief to which section 788(5) of the principal Act (relief for promoting development and relief contemplated by double taxation arrangements) applies.</p></content></level></level></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-124-4"><num>(4)</num><content><p>In subsection (5) of that section (penalty for failure to comply with section 12B(1) or (2A)) for “Subject to subsection (5A)” there shall be substituted “Subject to subsections (5A) and (5B)”.</p></content></subsection><subsection eId="section-124-5"><num>(5)</num><content><p><mod>After subsection (5A) of that section there shall be inserted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(5B)</num><intro><p>Subsection (5) above also does not apply where—</p></intro><level class="para1"><num>(a)</num><content><p>the records which the person fails to keep or preserve are records falling within paragraph (a) of subsection (4A) above; and</p></content></level><level class="para1"><num>(b)</num><content><p>an officer of the Board is satisfied that any facts which he reasonably requires to be proved, and which would have been proved by the records, are proved by other documentary evidence furnished to him.</p></content></level></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-124-6"><num>(6)</num><content><p>In Schedule 1A (claims etc not included in returns) in paragraph 2A (keeping and preserving of records) in sub-paragraph (3) (which makes corresponding provision to section 12B(4)) at the beginning there shall be inserted “Except in the case of records falling within section 12B(4A) of this Act,”.</p></content></subsection><subsection eId="section-124-7"><num>(7)</num><content><p>In sub-paragraph (4) of that paragraph (penalty for failure to comply with paragraph 2A(1)) at the beginning there shall be inserted “Subject to sub-paragraph (5) below,”.</p></content></subsection><subsection eId="section-124-8"><num>(8)</num><content><p><mod>After that sub-paragraph there shall be inserted—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><subparagraph><num>(5)</num><intro><p>Sub-paragraph (4) above does not apply where—</p></intro><level class="para1"><num>(a)</num><content><p>the records which the person fails to keep or preserve are records falling within paragraph (a) of section 12B(4A) of this Act; and</p></content></level><level class="para1"><num>(b)</num><content><p>an officer of the Board is satisfied that any facts which he reasonably requires to be proved, and which would have been proved by the records, are proved by other documentary evidence furnished to him.</p></content></level></subparagraph></quotedStructure></mod></p></content></subsection><subsection eId="section-124-9"><num>(9)</num><intro><p>The amendments made by this section shall not have effect in relation to—</p></intro><level class="para1" eId="section-124-9-a"><num>(a)</num><content><p>any time before this Act is passed, or</p></content></level><level class="para1" eId="section-124-9-b"><num>(b)</num><content><p>any records which a person fails to preserve before this Act is passed.</p></content></level></subsection></section><section eId="section-125"><num>125</num><heading>Determination of tax where no return delivered</heading><subsection eId="section-125-1"><num>(1)</num><content><p><mod>For subsection (1) of section 28C of the <noteRef href="#m00077" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxes Management Act 1970 (determination of tax where no return delivered) there shall be substituted the following subsections—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1)</num><intro><p>This section applies where—</p></intro><level class="para1"><num>(a)</num><content><p>a notice has been given to any person under section 8 or 8A of this Act (the relevant section), and</p></content></level><level class="para1"><num>(b)</num><content><p>the required return is not delivered on or before the filing date.</p></content></level></subsection><subsection><num>(1A)</num><intro><p>An officer of the Board may make a determination of the following amounts, to the best of his information and belief, namely—</p></intro><level class="para1"><num>(a)</num><content><p>the amounts in which the person who should have made the return is chargeable to income tax and capital gains tax for the year of assessment; and</p></content></level><level class="para1"><num>(b)</num><content><p>the amount which is payable by him by way of income tax for that year;</p></content></level><wrapUp><p>and subsection (1AA) of section 8 or, as the case may be, section 8A of this Act applies for the purposes of this subsection as it applies for the purposes of subsection (1) of that section.</p></wrapUp></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-125-2"><num>(2)</num><content><p>In subsection (3) of that section the words “or 11AA” shall cease to have effect.</p></content></subsection><subsection eId="section-125-3"><num>(3)</num><content><p>In subsection (6) of that section for the words “, section 8A(1A) or, as the case may be, section 11(4)” there shall be substituted the words “or, as the case may be, section 8A(1A)”.</p></content></subsection><subsection eId="section-125-4"><num>(4)</num><content><p><mod>After subsection (5) of section 59B of that Act (payment of income tax and capital gains tax) there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(5A)</num><content><p>Where a determination under section 28C of this Act which has effect as a person’s self-assessment is superseded by his self-assessment under section 9 of this Act, any amount of tax which is payable or repayable by virtue of the supersession shall be payable or (as the case may be) repayable on or before the day given by subsection (3) or (4) above.</p></content></subsection></quotedStructure></mod></p></content></subsection></section><section eId="section-126"><num>126</num><heading>PAYE regulations</heading><subsection eId="section-126-1"><num>(1)</num><content><p><mod>After subsection (9) of section 59A of the Taxes Management Act 1970 (payments on account of income tax) there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(10)</num><content><p>Regulations under section 203 of the principal Act (PAYE) may provide that, for the purpose of determining the amount of any such excess as is mentioned in subsection (1) above, any necessary adjustments in respect of matters prescribed by the regulations shall be made to the amount of tax deducted at source under that section.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-126-2"><num>(2)</num><content><p><mod>After subsection (7) of section 59B of that Act (payment of income tax and capital gains tax) there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(8)</num><content><p>Regulations under section 203 of the principal Act (PAYE) may provide that, for the purpose of determining the amount of the difference mentioned in subsection (1) above, any necessary adjustments in respect of matters prescribed by the regulations shall be made to the amount of tax deducted at source under that section.</p></content></subsection></quotedStructure></mod></p></content></subsection></section><section eId="section-127"><num>127</num><heading>Repayment postponed pending completion of enquiries</heading><content><p><mod>After subsection (4) of section 59B of the <noteRef href="#m00078" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxes Management Act 1970 (payment of income tax and capital gains tax) there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(4A)</num><intro><p>Where in the case of a repayment the return on the basis of which the person’s self-assessment was made under section 9 of this Act is enquired into by an officer of the Board—</p></intro><level class="para1"><num>(a)</num><content><p>nothing in subsection (3) or (4) above shall require the repayment to be made before the day on which, by virtue of section 28A(5) of this Act, the officer’s enquiries are treated as completed; but</p></content></level><level class="para1"><num>(b)</num><content><p>the officer may at any time before that day make the repayment, on a provisional basis, to such extent as he thinks fit.</p></content></level></subsection></quotedStructure></mod></p></content></section><section eId="section-128"><num>128</num><heading>Claims for reliefs involving two or more years</heading><subsection eId="section-128-1"><num>(1)</num><intro><p>In section 42 of the Taxes Management Act 1970 (procedure for making claims etc.)—</p></intro><level class="para1" eId="section-128-1-a"><num>(a)</num><content><p>subsections (3A) and (3B) (which are superseded by subsection (2) below) shall cease to have effect;</p></content></level><level class="para1" eId="section-128-1-b"><num>(b)</num><content><p>in subsection (7)(a), the words “534, 535, 537A, 538” shall cease to have effect; and</p></content></level><level class="para1" eId="section-128-1-c"><num>(c)</num><content><p><mod>after subsection (11) there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(11A)</num><content><p>Schedule 1B to this Act shall have effect as respects certain claims for relief involving two or more years of assessment.</p></content></subsection></quotedStructure></mod></p></content></level></subsection><subsection eId="section-128-2"><num>(2)</num><content><p>After Schedule 1A to that Act there shall be inserted, as Schedule 1B, the provisions set out in Schedule 17 to this Act (claims for reliefs involving two or more years).</p></content></subsection><subsection eId="section-128-3"><num>(3)</num><content><p><mod>For subsection (9) of section 96 of the Taxes Act 1988 (relief for fluctuating profits of farming etc.) there shall be substituted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(9)</num><intro><p>Where a person makes a claim under this section, any claim by him for relief under any other provision of the Income Tax Acts for either of the two years of assessment—</p></intro><level class="para1"><num>(a)</num><content><p>shall not be out of time if made before the end of the period during which the claim under this section is capable of being revoked; and</p></content></level><level class="para1"><num>(b)</num><content><p>if already made, may be amended or revoked before the end of that period;</p></content></level><wrapUp><p>and, in relation to a claim made by being included in a return, any reference in this subsection to amending or revoking the claim is a reference to amending the return by amending or, as the case may be, omitting the claim.</p></wrapUp></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-128-4"><num>(4)</num><intro><p>In section 108 of that Act (election for carry-back)—</p></intro><level class="para1" eId="section-128-4-a"><num>(a)</num><content><p>for the words “the inspector within two years after” there shall be substituted the words “an officer of the Board within one year from the 31st January next following”; and</p></content></level><level class="para1" eId="section-128-4-b"><num>(b)</num><content><p>the words from “and, in any such case” to the end shall cease to have effect.</p></content></level></subsection><subsection eId="section-128-5"><num>(5)</num><content><p><mod>For subsection (5) of section 534 of that Act (relief for copyright payments) there shall be substituted the following subsections—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(5)</num><intro><p>A claim under this section with respect to any payment to which it applies by virtue only of subsection (4)(b) above—</p></intro><level class="para1"><num>(a)</num><content><p>shall have effect as a claim with respect to all qualifying payments, that is to say, all such payments in respect of the copyright in the same work which are receivable by the claimant, whether before or after the claim; and</p></content></level><level class="para1"><num>(b)</num><content><p>where qualifying payments are so receivable in two or more years of assessment, shall be treated for the purposes of the Management Act as if it were two or more separate claims, each in respect of the qualifying payments receivable in one of those years.</p></content></level></subsection><subsection><num>(5A)</num><intro><p>A claim under this section may be made at any time within one year from the 31st January next following—</p></intro><level class="para1"><num>(a)</num><content><p>in the case of such a claim as is mentioned in subsection (5) above, the latest year of assessment in which a qualifying payment is receivable; and</p></content></level><level class="para1"><num>(b)</num><content><p>in the case of any other claim, the year of assessment in which the payment in question is receivable.</p></content></level></subsection><subsection><num>(5B)</num><content><p>For the purposes of subsections (5) and (5A) above, a payment shall be regarded as receivable in the year of assessment in computing the amount of the profits or gains of which it would, but for this section, be included.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-128-6"><num>(6)</num><content><p><mod>After subsection (6) of that section there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(6A)</num><intro><p>In the case of persons carrying on a trade, profession or business in partnership, no claim may be made under any of the following provisions, namely—</p></intro><level class="para1"><num>(a)</num><content><p>this section and section 535;</p></content></level><level class="para1"><num>(b)</num><content><p>section 537 as it has effect in relation to this section and section 535; and</p></content></level><level class="para1"><num>(c)</num><content><p>section 537A and section 538,</p></content></level><wrapUp><p>in respect of any payment or sum receivable on or after 6th April 1996; and nothing in any of those provisions shall be construed as applying to profits chargeable to corporation tax.</p></wrapUp></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-128-7"><num>(7)</num><intro><p>In section 535 of that Act (relief where copyright sold after ten years or more), the following shall cease to have effect, namely—</p></intro><level class="para1" eId="section-128-7-a"><num>(a)</num><content><p>in subsection (4), the words “Subject to subsection (5) below”;</p></content></level><level class="para1" eId="section-128-7-b"><num>(b)</num><content><p>subsections (5) and (7); and</p></content></level><level class="para1" eId="section-128-7-c"><num>(c)</num><content><p>in subsection (6), the words from “unless the author” to the end.</p></content></level></subsection><subsection eId="section-128-8"><num>(8)</num><content><p><mod>After subsection (8) of that section there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(8A)</num><content><p>No claim for relief made under subsection (1) above shall be allowed unless it is made within one year from the 31st January next following the year of assessment in which the payment is receivable; and for the purposes of this subsection a payment shall be regarded as receivable in the year of assessment in computing the amount of the profits or gains of which it would, but for this section, be included.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-128-9"><num>(9)</num><content><p><mod>For subsection (5) of section 537A of that Act (relief for payments in respect of designs) there shall be substituted the following subsections—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(5)</num><intro><p>A claim under this section with respect to any payment to which it applies by virtue only of subsection (4)(b) above—</p></intro><level class="para1"><num>(a)</num><content><p>shall have effect as a claim with respect to all qualifying payments, that is to say, all such payments in respect of rights in the design in question which are receivable by the claimant, whether before or after the claim; and</p></content></level><level class="para1"><num>(b)</num><content><p>where qualifying payments are so receivable in two or more years of assessment, shall be treated for the purposes of the Management Act as if it were two or more separate claims, each in respect of the qualifying payments receivable in one of those years.</p></content></level></subsection><subsection><num>(5A)</num><intro><p>A claim under this section may be made at any time within one year from the 31st January next following—</p></intro><level class="para1"><num>(a)</num><content><p>in the case of such a claim as is mentioned in subsection (5) above, the latest year of assessment in which a qualifying payment is receivable; and</p></content></level><level class="para1"><num>(b)</num><content><p>in the case of any other claim, the year of assessment in which the payment in question is receivable.</p></content></level></subsection><subsection><num>(5B)</num><content><p>For the purposes of subsections (5) and (5A) above, a payment shall be regarded as receivable in the year of assessment in computing the amount of the profits or gains of which it would, but for this section, be included.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-128-10"><num>(10)</num><content><p><mod>After subsection (3) of section 538 of that Act (relief for painters, sculptors and other artists) there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(4)</num><content><p>No claim for relief made under subsection (1) above shall be allowed unless it is made within one year from the 31st January next following the year of assessment in which the payment is receivable; and for the purposes of this subsection a payment shall be regarded as receivable in the year of assessment in computing the amount of the profits or gains of which it would, but for this section, be included.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-128-11"><num>(11)</num><content><p>This section (except subsections (1)(b) and (6) above) and Schedule 17 to this Act have effect as respects claims made (or deemed to be made) in relation to the year 1996-97 or later years of assessment.</p></content></subsection><subsection eId="section-128-12"><num>(12)</num><content><p>Subsection (1)(b) above has effect as respects claims made in relation to the year 1997-98 or later years of assessment.</p></content></subsection></section><section eId="section-129"><num>129</num><heading>Claims for medical insurance and vocational training relief</heading><subsection eId="section-129-1"><num>(1)</num><intro><p>Nothing in section 42 of the <noteRef href="#m00079" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxes Management Act 1970 (procedure for making claims etc.), or Schedule 1A to that Act (claims etc. not included in returns), shall apply in relation to—</p></intro><level class="para1" eId="section-129-1-a"><num>(a)</num><content><p>any claim under subsection (6)(b) of section 54 (medical insurance relief) of the <noteRef href="#m00080" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1989 (“the 1989 Act”); or</p></content></level><level class="para1" eId="section-129-1-b"><num>(b)</num><content><p>any claim under subsection (5)(b) of section 32 (vocational training relief) of the <noteRef href="#m00081" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1991 (“the 1991 Act”).</p></content></level></subsection><subsection eId="section-129-2"><num>(2)</num><content><p>In section 54(6)(b) of the 1989 Act and section 32(5)(b) of the 1991 Act, after the words “on making a claim” there shall be inserted the words “in accordance with regulations”.</p></content></subsection><subsection eId="section-129-3"><num>(3)</num><content><p><mod>In section 57(1) of the 1989 Act (medical insurance relief: supplementary), after paragraph (a) there shall be inserted the following paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(aa)</num><content><p>make provision for and with respect to appeals against a decision of an officer of the Board or the Board with respect to a claim under section 54(6)(b) above;</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-129-4"><num>(4)</num><content><p><mod>In section 33(1) of the 1991 Act (vocational training relief: supplementary), after paragraph (a) there shall be inserted the following paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(aa)</num><content><p>make provision for and with respect to appeals against a decision of an officer of the Board or the Board with respect to a claim under section 32(5)(b) above;</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-129-5"><num>(5)</num><content><p>Subsection (1)(a) above shall not apply in relation to claims made before the coming into force of regulations made by virtue of section 57(1)(aa) of the 1989 Act.</p></content></subsection><subsection eId="section-129-6"><num>(6)</num><content><p>Subsection (1)(b) above shall not apply in relation to claims made before the coming into force of regulations made by virtue of section 33(1)(aa) of the 1991 Act.</p></content></subsection></section><section eId="section-130"><num>130</num><heading>Procedure for giving notices</heading><subsection eId="section-130-1"><num>(1)</num><intro><p>Section 42 of, and Schedule 1A to, the Taxes Management Act 1970, as they have effect—</p></intro><level class="para1" eId="section-130-1-a"><num>(a)</num><content><p>for the purposes of income tax and capital gains tax, as respects the year 1996-97 and subsequent years of assessment, and</p></content></level><level class="para1" eId="section-130-1-b"><num>(b)</num><content><p>for the purposes of corporation tax, as respects accounting periods ending on or after the day appointed under section 199 of the <noteRef href="#m00082" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1994 for the purposes of Chapter III of Part IV of that Act (self-assessment management provisions),</p></content></level><wrapUp><p>shall be amended in accordance with the following provisions of this section.</p></wrapUp></subsection><subsection eId="section-130-2"><num>(2)</num><intro><p>In subsection (7) of section 42 (which contains a list of provisions, claims under which must be made in accordance with subsection (6)) the following words shall cease to have effect, that is to say—</p></intro><level class="para1" eId="section-130-2-a"><num>(a)</num><content><p>in paragraph (a), “62A,” and “401,”; and</p></content></level><level class="para1" eId="section-130-2-b"><num>(b)</num><content><p>in paragraph (c), “30,”, “33,”, “48, 49,” and “124A,”.</p></content></level></subsection><subsection eId="section-130-3"><num>(3)</num><content><p>In subsection (10) of that section (section 42 to apply in relation to elections and notices as it applies in relation to claims) the words “and notices” shall cease to have effect.</p></content></subsection><subsection eId="section-130-4"><num>(4)</num><content><p>In subsection (11) of that section (Schedule 1A to apply as respects any claim, election or notice made otherwise than in a return under section 8 etc) for the words “, election or notice” there shall be substituted “or election”.</p></content></subsection><subsection eId="section-130-5"><num>(5)</num><content><p>In paragraph 1 of Schedule 1A (claims etc. not included in returns), in the definition of “claim”, for the words “means a claim, election or notice” there shall be substituted “means a claim or election”.</p></content></subsection></section><section eId="section-131"><num>131</num><heading>Interest on overdue tax</heading><subsection eId="section-131-1"><num>(1)</num><content><p><mod>Section 110 of the <noteRef href="#m00083" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1995 (interest on overdue tax) shall be deemed to have been enacted with the insertion after subsection (3) of the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(4)</num><content><p>So far as it relates to partnerships whose trades, professions or businesses were set up and commenced before 6th April 1994, subsection (1) above has effect as respects the year 1997-98 and subsequent years of assessment.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-131-2"><num>(2)</num><content><p>In subsection (3) of section 86 of the <noteRef href="#m00084" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxes Management Act 1970 (which was substituted by the said section 110), for the words “section 93” there shall be substituted the words “section 92”.</p></content></subsection><subsection eId="section-131-3"><num>(3)</num><content><p>In Schedule 19 to the <noteRef href="#m00085" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1994, paragraph 23 (which is superseded by the said section 110) shall cease to have effect.</p></content></subsection></section><section eId="section-132"><num>132</num><heading>Overdue tax and excessive payments by the Board</heading><content><p>Schedule 18 to this Act (which amends enactments relating to overdue tax or excessive payments by the Board) shall have effect.</p></content></section><section eId="section-133"><num>133</num><heading>Claims and enquiries</heading><content><p>Schedule 19 to this Act (which, for purposes connected with self-assessment, further amends provisions relating to claims and enquiries) shall have effect.</p></content></section><section eId="section-134"><num>134</num><heading>Discretions exercisable by the Board etc</heading><subsection eId="section-134-1"><num>(1)</num><content><p>Schedule 20 to this Act (which in connection with self-assessment modifies enactments by virtue of which a decision or other action affecting an assessment may be or is required to be taken by the Board, or one of their officers, before the making of the assessment) shall have effect.</p></content></subsection><subsection eId="section-134-2"><num>(2)</num><intro><p>Subject to subsection (3) below, the amendments made by that Schedule shall have effect—</p></intro><level class="para1" eId="section-134-2-a"><num>(a)</num><content><p>for the purposes of income tax and capital gains tax, as respects the year 1996-97 and subsequent years of assessment; and</p></content></level><level class="para1" eId="section-134-2-b"><num>(b)</num><content><p>for the purposes of corporation tax, as respects accounting periods ending on or after the day appointed under section 199 of the Finance Act 1994 for the purposes of Chapter III of Part IV of that Act (self-assessment management provisions).</p></content></level></subsection><subsection eId="section-134-3"><num>(3)</num><content><p>Paragraphs 22 and 23 of that Schedule shall have effect in relation to shares issued on or after 6th April 1996.</p></content></subsection></section><section eId="section-135"><num>135</num><heading>Time limits for claims etc</heading><subsection eId="section-135-1"><num>(1)</num><content><p>Schedule 21 to this Act (which in connection with self-assessment modifies enactments which impose time limits on the making of claims, elections, adjustments and assessments and the giving of notices, and enactments which provide for the giving of notice to the inspector) shall have effect.</p></content></subsection><subsection eId="section-135-2"><num>(2)</num><intro><p>Subject to subsections (3) to (5) below, the amendments made by that Schedule shall have effect—</p></intro><level class="para1" eId="section-135-2-a"><num>(a)</num><content><p>for the purposes of income tax and capital gains tax, as respects the year 1996-97 and subsequent years of assessment; and</p></content></level><level class="para1" eId="section-135-2-b"><num>(b)</num><content><p>for the purposes of corporation tax, as respects accounting periods ending on or after the day appointed under section 199 of the <noteRef href="#m00086" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1994 for the purposes of Chapter III of Part IV of that Act (self-assessment management provisions).</p></content></level></subsection><subsection eId="section-135-3"><num>(3)</num><content><p>The amendments made to the <noteRef href="#m00087" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Capital Allowances Act 1990 and the Finance Act 1994 by that Schedule, in their application to trades, professions or vocations set up and commenced before 6th April 1994, shall (so far as relating to income tax) have effect as respects the year 1997-98 and subsequent years of assessment.</p></content></subsection><subsection eId="section-135-4"><num>(4)</num><intro><p>The Capital Allowances Act 1990, as it has effect for the year 1996-97 in relation to trades, professions or vocations set up and commenced before 6th April 1994, shall (so far as relating to income tax) have effect as respects that year with the following modifications, that is to say, as if—</p></intro><level class="para1" eId="section-135-4-a"><num>(a)</num><content><p>in sections 25(3)(c), 30(1), 31(3) and 33(1) and (4), for “two years after the end of” there were substituted “the first anniversary of the 31st January next following”;</p></content></level><level class="para1" eId="section-135-4-b"><num>(b)</num><content><p>in section 37(2)(c), for “more than two years after the end of the chargeable period or its basis period” there were substituted “later than the first anniversary of the 31st January next following the year of assessment in which ends the basis period”;</p></content></level><level class="para1" eId="section-135-4-c"><num>(c)</num><content><p>in section 53(2), for “before the expiry of the period of two years beginning at the end of” there were substituted “on or before the first anniversary of the 31st January next following”;</p></content></level><level class="para1" eId="section-135-4-d"><num>(d)</num><content><p>in section 68(5), for “two years after the end of that period” there were substituted “the first anniversary of the 31st January next following the year of assessment in which the relevant period ends”;</p></content></level><level class="para1" eId="section-135-4-e"><num>(e)</num><content><p>in section 68(9A)(b), for “two years after the end of” there were substituted “the first anniversary of the 31st January next following the year of assessment in which ends”;</p></content></level><level class="para1" eId="section-135-4-f"><num>(f)</num><content><p>in section 129(2), for “not more than two years after the end of” there were substituted “on or before the first anniversary of the 31st January next following”;</p></content></level><level class="para1" eId="section-135-4-g"><num>(g)</num><content><p>in section 141(3), for “the inspector not later than two years after the end of” there were substituted “an officer of the Board on or before the first anniversary of the 31st January next following”.</p></content></level></subsection><subsection eId="section-135-5"><num>(5)</num><content><p>Section 118 of the <noteRef href="#m00088" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1994, as it has effect for the year 1996-97 in relation to trades, professions or vocations set up and commenced before 6th April 1994, shall (so far as relating to income tax) have effect as respects that year as if, in subsection (3), for “two years after the end of” there were substituted “the first anniversary of the 31st January next following”.</p></content></subsection></section><section eId="section-136"><num>136</num><heading>Appeals</heading><content><p>Schedule 22 to this Act (which makes provision, in connection with self-assessment, about appeals) shall have effect.</p></content></section></hcontainer>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-121"><num>121</num><heading>Returns and self assessment</heading><subsection eId="section-121-1"><num>(1)</num><content><p>In subsection (1) of section 8 of the <noteRef href="#m00071" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxes Management Act 1970 (personal return), and in subsection (1) of section 8A of that Act (trustee’s return), after the words “year of assessment,” there shall be inserted the words “and the amount payable by him by way of income tax for that year,”.</p></content></subsection><subsection eId="section-121-2"><num>(2)</num><content><p>In subsection (1A) of each of those sections, the words from “and the amounts referred to” to the end shall cease to have effect.</p></content></subsection><subsection eId="section-121-3"><num>(3)</num><content><p><mod>After that subsection of each of those sections there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1AA)</num><intro><p>For the purposes of subsection (1) above—</p></intro><level class="para1"><num>(a)</num><content><p>the amounts in which a person is chargeable to income tax and capital gains tax are net amounts, that is to say, amounts which take into account any relief or allowance a claim for which is included in the return; and</p></content></level><level class="para1"><num>(b)</num><content><p>the amount payable by a person by way of income tax is the difference between the amount in which he is chargeable to income tax and the aggregate amount of any income tax deducted at source and any tax credits to which section 231 of the principal Act applies.</p></content></level></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-121-4"><num>(4)</num><content><p><mod>For subsection (1) of section 9 of that Act (returns to include self-assessment) there shall be substituted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1)</num><intro><p>Subject to subsection (2) below, every return under section 8 or 8A of this Act shall include a self-assessment, that is to say—</p></intro><level class="para1"><num>(a)</num><content><p>an assessment of the amounts in which, on the basis of the information contained in the return and taking into account any relief or allowance a claim for which is included in the return, the person making the return is chargeable to income tax and capital gains tax for the year of assessment; and</p></content></level><level class="para1"><num>(b)</num><content><p>an assessment of the amount payable by him by way of income tax, that is to say, the difference between the amount in which he is assessed to income tax under paragraph (a) above and the aggregate amount of any income tax deducted at source and any tax credits to which section 231 of the principal Act applies.</p></content></level></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-121-5"><num>(5)</num><content><p>In subsection (1)(b) of section 11AA of that Act (return of profits to include self-assessment), for the words “, allowance or repayment of tax” there shall be substituted the words “or allowance”.</p></content></subsection><subsection eId="section-121-6"><num>(6)</num><content><p>In subsection (1)(a) of section 12AA of that Act (partnership return), after the words “so chargeable” there shall be inserted the words “and the amount payable by way of income tax by each such partner”.</p></content></subsection><subsection eId="section-121-7"><num>(7)</num><content><p><mod>For subsection (1A) of that section there shall be substituted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1A)</num><intro><p>For the purposes of subsection (1) above—</p></intro><level class="para1"><num>(a)</num><content><p>the amount in which a partner is chargeable to income tax or corporation tax is a net amount, that is to say, an amount which takes into account any relief or allowance for which a claim is made; and</p></content></level><level class="para1"><num>(b)</num><content><p>the amount payable by a partner by way of income tax is the difference between the amount in which he is chargeable to income tax and the aggregate amount of any income tax deducted at source and any tax credits to which section 231 of the principal Act applies.</p></content></level></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-121-8"><num>(8)</num><intro><p>This section and sections 122, 123, 125 to 127 and 141 below—</p></intro><level class="para1" eId="section-121-8-a"><num>(a)</num><content><p>so far as they relate to income tax and capital gains tax, have effect as respects the year 1996-97 and subsequent years of assessment, and</p></content></level><level class="para1" eId="section-121-8-b"><num>(b)</num><content><p>so far as they relate to corporation tax, have effect as respects accounting periods ending on or after the appointed day for the purposes of Chapter III of Part IV of the <noteRef href="#m00072" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1994.</p></content></level></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-121-1"><num>(1)</num><content><p>In subsection (1) of section 8 of the <noteRef href="#m00071" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxes Management Act 1970 (personal return), and in subsection (1) of section 8A of that Act (trustee’s return), after the words “year of assessment,” there shall be inserted the words “and the amount payable by him by way of income tax for that year,”.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-121-2"><num>(2)</num><content><p>In subsection (1A) of each of those sections, the words from “and the amounts referred to” to the end shall cease to have effect.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-121-3"><num>(3)</num><content><p><mod>After that subsection of each of those sections there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1AA)</num><intro><p>For the purposes of subsection (1) above—</p></intro><level class="para1"><num>(a)</num><content><p>the amounts in which a person is chargeable to income tax and capital gains tax are net amounts, that is to say, amounts which take into account any relief or allowance a claim for which is included in the return; and</p></content></level><level class="para1"><num>(b)</num><content><p>the amount payable by a person by way of income tax is the difference between the amount in which he is chargeable to income tax and the aggregate amount of any income tax deducted at source and any tax credits to which section 231 of the principal Act applies.</p></content></level></subsection></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-121-4"><num>(4)</num><content><p><mod>For subsection (1) of section 9 of that Act (returns to include self-assessment) there shall be substituted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1)</num><intro><p>Subject to subsection (2) below, every return under section 8 or 8A of this Act shall include a self-assessment, that is to say—</p></intro><level class="para1"><num>(a)</num><content><p>an assessment of the amounts in which, on the basis of the information contained in the return and taking into account any relief or allowance a claim for which is included in the return, the person making the return is chargeable to income tax and capital gains tax for the year of assessment; and</p></content></level><level class="para1"><num>(b)</num><content><p>an assessment of the amount payable by him by way of income tax, that is to say, the difference between the amount in which he is assessed to income tax under paragraph (a) above and the aggregate amount of any income tax deducted at source and any tax credits to which section 231 of the principal Act applies.</p></content></level></subsection></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-121-5"><num>(5)</num><content><p>In subsection (1)(b) of section 11AA of that Act (return of profits to include self-assessment), for the words “, allowance or repayment of tax” there shall be substituted the words “or allowance”.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-121-6"><num>(6)</num><content><p>In subsection (1)(a) of section 12AA of that Act (partnership return), after the words “so chargeable” there shall be inserted the words “and the amount payable by way of income tax by each such partner”.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-121-7"><num>(7)</num><content><p><mod>For subsection (1A) of that section there shall be substituted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1A)</num><intro><p>For the purposes of subsection (1) above—</p></intro><level class="para1"><num>(a)</num><content><p>the amount in which a partner is chargeable to income tax or corporation tax is a net amount, that is to say, an amount which takes into account any relief or allowance for which a claim is made; and</p></content></level><level class="para1"><num>(b)</num><content><p>the amount payable by a partner by way of income tax is the difference between the amount in which he is chargeable to income tax and the aggregate amount of any income tax deducted at source and any tax credits to which section 231 of the principal Act applies.</p></content></level></subsection></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-121-8"><num>(8)</num><intro><p>This section and sections 122, 123, 125 to 127 and 141 below—</p></intro><level class="para1" eId="section-121-8-a"><num>(a)</num><content><p>so far as they relate to income tax and capital gains tax, have effect as respects the year 1996-97 and subsequent years of assessment, and</p></content></level><level class="para1" eId="section-121-8-b"><num>(b)</num><content><p>so far as they relate to corporation tax, have effect as respects accounting periods ending on or after the appointed day for the purposes of Chapter III of Part IV of the <noteRef href="#m00072" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1994.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-121-8-a"><num>(a)</num><content><p>so far as they relate to income tax and capital gains tax, have effect as respects the year 1996-97 and subsequent years of assessment, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-121-8-b"><num>(b)</num><content><p>so far as they relate to corporation tax, have effect as respects accounting periods ending on or after the appointed day for the purposes of Chapter III of Part IV of the <noteRef href="#m00072" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1994.</p></content></level>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-122"><num>122</num><heading>Notional tax deductions and payments</heading><subsection eId="section-122-1"><num>(1)</num><content><p>At the end of subsection (1) of section 9 of the <noteRef href="#m00073" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxes Management Act 1970 (as substituted by section 121(4) above) there shall be inserted the words “but nothing in this subsection shall enable a self-assessment to show as repayable any income tax treated as deducted or paid by virtue of section 233(1), 246D(1), 249(4), 421(1), 547(5) or 599A(5) of the principal Act.”</p></content></subsection><subsection eId="section-122-2"><num>(2)</num><content><p>At the end of subsection (1) of section 59B of that Act (payment of income tax and capital gains tax) there shall be inserted the words “but nothing in this subsection shall require the repayment of any income tax treated as deducted or paid by virtue of section 233(1), 246D(1), 249(4), 421(1), 547(5) or 599A(5) of the principal Act.”</p></content></subsection><subsection eId="section-122-3"><num>(3)</num><content><p><mod>In subsection (1) of section 233 of the Taxes Act 1988 (taxation of certain recipients of distributions), for paragraphs (a) and (b) there shall be substituted the following paragraphs—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><level class="para1"><num>(a)</num><content><p>that person shall be treated as having paid income tax at the lower rate on the amount or value of the distribution;</p></content></level><level class="para1"><num>(b)</num><content><p>no repayment shall be made of any income tax treated by virtue of paragraph (a) above as having been paid;</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-122-4"><num>(4)</num><intro><p>In paragraph (a) of subsection (1A) of that section—</p></intro><level class="para1" eId="section-122-4-a"><num>(a)</num><content><p><mod>for sub-paragraph (i) there shall be substituted the following sub-paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><level class="para2"><num>(i)</num><content><p>income on which that person falls to be treated as having paid income tax at the lower rate by virtue of paragraph (a) of subsection (1) above, or</p></content></level></quotedStructure><inline name="appendText">; and</inline></mod></p></content></level><level class="para1" eId="section-122-4-b"><num>(b)</num><content><p>for the words “that assessment” there shall be substituted the words “that subsection”.</p></content></level></subsection><subsection eId="section-122-5"><num>(5)</num><intro><p>In the following enactments, namely—</p></intro><level class="para1" eId="section-122-5-a"><num>(a)</num><content><p>subsection (2)(a) of section 246D of that Act (individuals etc.); and</p></content></level><level class="para1" eId="section-122-5-b"><num>(b)</num><content><p>subsection (4)(a) of section 249 of that Act (stock dividends treated as income),</p></content></level><wrapUp><p>for the words from “no assessment” to “on it” there shall be substituted the words “the individual shall be treated as having paid income tax at the lower rate on that income”.</p></wrapUp></subsection><subsection eId="section-122-6"><num>(6)</num><content><p>In subsection (1)(b) of section 421 of that Act (taxation of borrower when loan released), for the words “no assessment shall be made on him in respect of” there shall be substituted the words “he shall not be liable to pay”.</p></content></subsection><subsection eId="section-122-7"><num>(7)</num><intro><p>The following shall cease to have effect, namely—</p></intro><level class="para1" eId="section-122-7-a"><num>(a)</num><content><p>in subsection (5)(a) of section 547 of that Act (method of charging to tax), the words from “no assessment” to “but”;</p></content></level><level class="para1" eId="section-122-7-b"><num>(b)</num><content><p>in subsection (6) of section 599A of that Act (charge to tax: payments out of surplus funds), the words from “subject” to “and”; and</p></content></level><level class="para1" eId="section-122-7-c"><num>(c)</num><content><p>subsection (7) of that section.</p></content></level></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-122-1"><num>(1)</num><content><p>At the end of subsection (1) of section 9 of the <noteRef href="#m00073" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxes Management Act 1970 (as substituted by section 121(4) above) there shall be inserted the words “but nothing in this subsection shall enable a self-assessment to show as repayable any income tax treated as deducted or paid by virtue of section 233(1), 246D(1), 249(4), 421(1), 547(5) or 599A(5) of the principal Act.”</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-122-2"><num>(2)</num><content><p>At the end of subsection (1) of section 59B of that Act (payment of income tax and capital gains tax) there shall be inserted the words “but nothing in this subsection shall require the repayment of any income tax treated as deducted or paid by virtue of section 233(1), 246D(1), 249(4), 421(1), 547(5) or 599A(5) of the principal Act.”</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-122-3"><num>(3)</num><content><p><mod>In subsection (1) of section 233 of the Taxes Act 1988 (taxation of certain recipients of distributions), for paragraphs (a) and (b) there shall be substituted the following paragraphs—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><level class="para1"><num>(a)</num><content><p>that person shall be treated as having paid income tax at the lower rate on the amount or value of the distribution;</p></content></level><level class="para1"><num>(b)</num><content><p>no repayment shall be made of any income tax treated by virtue of paragraph (a) above as having been paid;</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-122-4"><num>(4)</num><intro><p>In paragraph (a) of subsection (1A) of that section—</p></intro><level class="para1" eId="section-122-4-a"><num>(a)</num><content><p><mod>for sub-paragraph (i) there shall be substituted the following sub-paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><level class="para2"><num>(i)</num><content><p>income on which that person falls to be treated as having paid income tax at the lower rate by virtue of paragraph (a) of subsection (1) above, or</p></content></level></quotedStructure><inline name="appendText">; and</inline></mod></p></content></level><level class="para1" eId="section-122-4-b"><num>(b)</num><content><p>for the words “that assessment” there shall be substituted the words “that subsection”.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-122-4-a"><num>(a)</num><content><p><mod>for sub-paragraph (i) there shall be substituted the following sub-paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><level class="para2"><num>(i)</num><content><p>income on which that person falls to be treated as having paid income tax at the lower rate by virtue of paragraph (a) of subsection (1) above, or</p></content></level></quotedStructure><inline name="appendText">; and</inline></mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-122-4-b"><num>(b)</num><content><p>for the words “that assessment” there shall be substituted the words “that subsection”.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-122-5"><num>(5)</num><intro><p>In the following enactments, namely—</p></intro><level class="para1" eId="section-122-5-a"><num>(a)</num><content><p>subsection (2)(a) of section 246D of that Act (individuals etc.); and</p></content></level><level class="para1" eId="section-122-5-b"><num>(b)</num><content><p>subsection (4)(a) of section 249 of that Act (stock dividends treated as income),</p></content></level><wrapUp><p>for the words from “no assessment” to “on it” there shall be substituted the words “the individual shall be treated as having paid income tax at the lower rate on that income”.</p></wrapUp></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-122-5-a"><num>(a)</num><content><p>subsection (2)(a) of section 246D of that Act (individuals etc.); and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-122-5-b"><num>(b)</num><content><p>subsection (4)(a) of section 249 of that Act (stock dividends treated as income),</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-122-6"><num>(6)</num><content><p>In subsection (1)(b) of section 421 of that Act (taxation of borrower when loan released), for the words “no assessment shall be made on him in respect of” there shall be substituted the words “he shall not be liable to pay”.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-122-7"><num>(7)</num><intro><p>The following shall cease to have effect, namely—</p></intro><level class="para1" eId="section-122-7-a"><num>(a)</num><content><p>in subsection (5)(a) of section 547 of that Act (method of charging to tax), the words from “no assessment” to “but”;</p></content></level><level class="para1" eId="section-122-7-b"><num>(b)</num><content><p>in subsection (6) of section 599A of that Act (charge to tax: payments out of surplus funds), the words from “subject” to “and”; and</p></content></level><level class="para1" eId="section-122-7-c"><num>(c)</num><content><p>subsection (7) of that section.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-122-7-a"><num>(a)</num><content><p>in subsection (5)(a) of section 547 of that Act (method of charging to tax), the words from “no assessment” to “but”;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-122-7-b"><num>(b)</num><content><p>in subsection (6) of section 599A of that Act (charge to tax: payments out of surplus funds), the words from “subject” to “and”; and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-122-7-c"><num>(c)</num><content><p>subsection (7) of that section.</p></content></level>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-123"><num>123</num><heading>Liability of partners</heading><subsection eId="section-123-1"><num>(1)</num><content><p>In subsection (2) of section 12AA of the <noteRef href="#m00074" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxes Management Act 1970 (partnership return) after the words “with the notice” there shall be inserted the words “or a successor of his”.</p></content></subsection><subsection eId="section-123-2"><num>(2)</num><content><p>In subsection (3) of that section after the words “the partner” there shall be inserted the words “or a successor of his”.</p></content></subsection><subsection eId="section-123-3"><num>(3)</num><content><p>In subsection (7)(a) of that section, the words “any part of” shall cease to have effect.</p></content></subsection><subsection eId="section-123-4"><num>(4)</num><content><p><mod>At the end of that section there shall be inserted the following subsections—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(11)</num><intro><p>In this Act “successor”, in relation to a person who is required to make and deliver, or has made and delivered, a return in pursuance of a notice under subsection (2) or (3) above, but is no longer available, means—</p></intro><level class="para1"><num>(a)</num><content><p>where a partner is for the time being nominated for the purposes of this subsection by a majority of the relevant partners, that partner; and</p></content></level><level class="para1"><num>(b)</num><intro><p>where no partner is for the time being so nominated, such partner as—</p></intro><level class="para2"><num>(i)</num><content><p>in the case of a notice under subsection (2) above, is identified in accordance with rules given with that notice; or</p></content></level><level class="para2"><num>(ii)</num><content><p>in the case of a notice under subsection (3) above, is nominated for the purposes of this subsection by an officer of the Board;</p></content></level><wrapUp><p>and “predecessor” and “successor”, in relation to a person so nominated or identified, shall be construed accordingly.</p></wrapUp></level></subsection><subsection><num>(12)</num><content><p>For the purposes of subsection (11) above a nomination under paragraph (a) of that subsection, and a revocation of such a nomination, shall not have effect in relation to any time before notice of the nomination or revocation is given to an officer of the Board.</p></content></subsection><subsection><num>(13)</num><content><p>In this section “relevant partner” means a person who was a partner at any time during the period for which the return was made or is required, or the personal representatives of such a person.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-123-5"><num>(5)</num><intro><p>In subsection (1) of section 12AB of that Act (partnership return to include partnership statement)—</p></intro><level class="para1" eId="section-123-5-a"><num>(a)</num><content><p>in paragraph (a), for the words “each period of account ending within the period in respect of which the return is made” there shall be substituted the words “the period in respect of which the return is made and each period of account ending within that period”;</p></content></level><level class="para1" eId="section-123-5-b"><num>(b)</num><content><p>in sub-paragraph (i) of that paragraph, for the words “that period” there shall be substituted the words “the period in question”;</p></content></level><level class="para1" eId="section-123-5-c"><num>(c)</num><content><p><mod>after that sub-paragraph there shall be inserted the following sub-paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para2"><num>(ia)</num><content><p>the amount of the consideration which, on that basis, has accrued to the partnership in respect of each disposal of partnership property during that period,</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p><p>and</p></content></level><level class="para1" eId="section-123-5-d"><num>(d)</num><content><p>in paragraph (b), after the words “such period” there shall be inserted the words “as is mentioned in paragraph (a) above” and after the word “loss,” there shall be inserted the word “consideration,”.</p></content></level></subsection><subsection eId="section-123-6"><num>(6)</num><intro><p>In subsection (2) of that section—</p></intro><level class="para1" eId="section-123-6-a"><num>(a)</num><content><p>in paragraph (a) after the words “to that person” there shall be inserted the words “or a successor”; and</p></content></level><level class="para1" eId="section-123-6-b"><num>(b)</num><content><p>in paragraph (b) for the words from “partnership statement” to “he” there shall be substituted the words “or a predecessor’s partnership statement as to give effect to any amendments to the return in which it is included which he or a predecessor”.</p></content></level></subsection><subsection eId="section-123-7"><num>(7)</num><intro><p>In section 12AC of that Act (power to enquire into partnership return)—</p></intro><level class="para1" eId="section-123-7-a"><num>(a)</num><content><p>in subsection (1)(b), after the word “person” there shall be inserted the words “or a successor of that person”; and</p></content></level><level class="para1" eId="section-123-7-b"><num>(b)</num><content><p>subsection (6) (which is superseded by subsection (4) above) shall cease to have effect.</p></content></level></subsection><subsection eId="section-123-8"><num>(8)</num><content><p>In subsection (1)(b) of section 93A of that Act (failure to make partnership return), after the word “he” there shall be inserted the words “or a successor of his”.</p></content></subsection><subsection eId="section-123-9"><num>(9)</num><content><p>In subsections (3) and (4) of that section, after the words “the representative partner” there shall be inserted the words “or a successor of his”.</p></content></subsection><subsection eId="section-123-10"><num>(10)</num><intro><p>In subsection (6) of that section—</p></intro><level class="para1" eId="section-123-10-a"><num>(a)</num><content><p>after the words “the representative partner” there shall be inserted the words “or a successor of his”; and</p></content></level><level class="para1" eId="section-123-10-b"><num>(b)</num><content><p>after the words “that partner”, in both places where they occur, there shall be inserted the words “or successor”.</p></content></level></subsection><subsection eId="section-123-11"><num>(11)</num><content><p>In subsection (7) of that section, for the words “the representative partner had a reasonable excuse for not delivering the return” there shall be substituted the words “the person for the time being required to deliver the return (whether the representative partner or a successor of his) had a reasonable excuse for not delivering it”.</p></content></subsection><subsection eId="section-123-12"><num>(12)</num><content><p>In subsection (1)(a)(ii) of section 95A of that Act (incorrect partnership return or accounts), for the words “such a return” there shall be substituted the words “a return of such a kind”.</p></content></subsection><subsection eId="section-123-13"><num>(13)</num><intro><p>In subsection (3) of that section—</p></intro><level class="para1" eId="section-123-13-a"><num>(a)</num><content><p>after the words “the representative partner” there shall be inserted the words “or a successor of his”; and</p></content></level><level class="para1" eId="section-123-13-b"><num>(b)</num><content><p>after the words “that partner”, in both places where they occur, there shall be inserted the words “or successor”.</p></content></level></subsection><subsection eId="section-123-14"><num>(14)</num><content><p><mod>In subsection (1) of section 118 of that Act (interpretation), for the definition of “successor” there shall be substituted the following definition—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><p>“successor”, in relation to a person who is required to make and deliver, or has made and delivered, a return under section 12AA of this Act, and “predecessor” and “successor”, in relation to the successor of such a person, shall be construed in accordance with section 12AA(11) of this Act;</p></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-123-1"><num>(1)</num><content><p>In subsection (2) of section 12AA of the <noteRef href="#m00074" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxes Management Act 1970 (partnership return) after the words “with the notice” there shall be inserted the words “or a successor of his”.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-123-2"><num>(2)</num><content><p>In subsection (3) of that section after the words “the partner” there shall be inserted the words “or a successor of his”.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-123-3"><num>(3)</num><content><p>In subsection (7)(a) of that section, the words “any part of” shall cease to have effect.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-123-4"><num>(4)</num><content><p><mod>At the end of that section there shall be inserted the following subsections—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(11)</num><intro><p>In this Act “successor”, in relation to a person who is required to make and deliver, or has made and delivered, a return in pursuance of a notice under subsection (2) or (3) above, but is no longer available, means—</p></intro><level class="para1"><num>(a)</num><content><p>where a partner is for the time being nominated for the purposes of this subsection by a majority of the relevant partners, that partner; and</p></content></level><level class="para1"><num>(b)</num><intro><p>where no partner is for the time being so nominated, such partner as—</p></intro><level class="para2"><num>(i)</num><content><p>in the case of a notice under subsection (2) above, is identified in accordance with rules given with that notice; or</p></content></level><level class="para2"><num>(ii)</num><content><p>in the case of a notice under subsection (3) above, is nominated for the purposes of this subsection by an officer of the Board;</p></content></level><wrapUp><p>and “predecessor” and “successor”, in relation to a person so nominated or identified, shall be construed accordingly.</p></wrapUp></level></subsection><subsection><num>(12)</num><content><p>For the purposes of subsection (11) above a nomination under paragraph (a) of that subsection, and a revocation of such a nomination, shall not have effect in relation to any time before notice of the nomination or revocation is given to an officer of the Board.</p></content></subsection><subsection><num>(13)</num><content><p>In this section “relevant partner” means a person who was a partner at any time during the period for which the return was made or is required, or the personal representatives of such a person.</p></content></subsection></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-123-5"><num>(5)</num><intro><p>In subsection (1) of section 12AB of that Act (partnership return to include partnership statement)—</p></intro><level class="para1" eId="section-123-5-a"><num>(a)</num><content><p>in paragraph (a), for the words “each period of account ending within the period in respect of which the return is made” there shall be substituted the words “the period in respect of which the return is made and each period of account ending within that period”;</p></content></level><level class="para1" eId="section-123-5-b"><num>(b)</num><content><p>in sub-paragraph (i) of that paragraph, for the words “that period” there shall be substituted the words “the period in question”;</p></content></level><level class="para1" eId="section-123-5-c"><num>(c)</num><content><p><mod>after that sub-paragraph there shall be inserted the following sub-paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para2"><num>(ia)</num><content><p>the amount of the consideration which, on that basis, has accrued to the partnership in respect of each disposal of partnership property during that period,</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p><p>and</p></content></level><level class="para1" eId="section-123-5-d"><num>(d)</num><content><p>in paragraph (b), after the words “such period” there shall be inserted the words “as is mentioned in paragraph (a) above” and after the word “loss,” there shall be inserted the word “consideration,”.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-123-5-a"><num>(a)</num><content><p>in paragraph (a), for the words “each period of account ending within the period in respect of which the return is made” there shall be substituted the words “the period in respect of which the return is made and each period of account ending within that period”;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-123-5-b"><num>(b)</num><content><p>in sub-paragraph (i) of that paragraph, for the words “that period” there shall be substituted the words “the period in question”;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-123-5-c"><num>(c)</num><content><p><mod>after that sub-paragraph there shall be inserted the following sub-paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para2"><num>(ia)</num><content><p>the amount of the consideration which, on that basis, has accrued to the partnership in respect of each disposal of partnership property during that period,</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p><p>and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-123-5-d"><num>(d)</num><content><p>in paragraph (b), after the words “such period” there shall be inserted the words “as is mentioned in paragraph (a) above” and after the word “loss,” there shall be inserted the word “consideration,”.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-123-6"><num>(6)</num><intro><p>In subsection (2) of that section—</p></intro><level class="para1" eId="section-123-6-a"><num>(a)</num><content><p>in paragraph (a) after the words “to that person” there shall be inserted the words “or a successor”; and</p></content></level><level class="para1" eId="section-123-6-b"><num>(b)</num><content><p>in paragraph (b) for the words from “partnership statement” to “he” there shall be substituted the words “or a predecessor’s partnership statement as to give effect to any amendments to the return in which it is included which he or a predecessor”.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-123-6-a"><num>(a)</num><content><p>in paragraph (a) after the words “to that person” there shall be inserted the words “or a successor”; and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-123-6-b"><num>(b)</num><content><p>in paragraph (b) for the words from “partnership statement” to “he” there shall be substituted the words “or a predecessor’s partnership statement as to give effect to any amendments to the return in which it is included which he or a predecessor”.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-123-7"><num>(7)</num><intro><p>In section 12AC of that Act (power to enquire into partnership return)—</p></intro><level class="para1" eId="section-123-7-a"><num>(a)</num><content><p>in subsection (1)(b), after the word “person” there shall be inserted the words “or a successor of that person”; and</p></content></level><level class="para1" eId="section-123-7-b"><num>(b)</num><content><p>subsection (6) (which is superseded by subsection (4) above) shall cease to have effect.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-123-7-a"><num>(a)</num><content><p>in subsection (1)(b), after the word “person” there shall be inserted the words “or a successor of that person”; and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-123-7-b"><num>(b)</num><content><p>subsection (6) (which is superseded by subsection (4) above) shall cease to have effect.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-123-8"><num>(8)</num><content><p>In subsection (1)(b) of section 93A of that Act (failure to make partnership return), after the word “he” there shall be inserted the words “or a successor of his”.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-123-9"><num>(9)</num><content><p>In subsections (3) and (4) of that section, after the words “the representative partner” there shall be inserted the words “or a successor of his”.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-123-10"><num>(10)</num><intro><p>In subsection (6) of that section—</p></intro><level class="para1" eId="section-123-10-a"><num>(a)</num><content><p>after the words “the representative partner” there shall be inserted the words “or a successor of his”; and</p></content></level><level class="para1" eId="section-123-10-b"><num>(b)</num><content><p>after the words “that partner”, in both places where they occur, there shall be inserted the words “or successor”.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-123-10-a"><num>(a)</num><content><p>after the words “the representative partner” there shall be inserted the words “or a successor of his”; and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-123-10-b"><num>(b)</num><content><p>after the words “that partner”, in both places where they occur, there shall be inserted the words “or successor”.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-123-11"><num>(11)</num><content><p>In subsection (7) of that section, for the words “the representative partner had a reasonable excuse for not delivering the return” there shall be substituted the words “the person for the time being required to deliver the return (whether the representative partner or a successor of his) had a reasonable excuse for not delivering it”.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-123-12"><num>(12)</num><content><p>In subsection (1)(a)(ii) of section 95A of that Act (incorrect partnership return or accounts), for the words “such a return” there shall be substituted the words “a return of such a kind”.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-123-13"><num>(13)</num><intro><p>In subsection (3) of that section—</p></intro><level class="para1" eId="section-123-13-a"><num>(a)</num><content><p>after the words “the representative partner” there shall be inserted the words “or a successor of his”; and</p></content></level><level class="para1" eId="section-123-13-b"><num>(b)</num><content><p>after the words “that partner”, in both places where they occur, there shall be inserted the words “or successor”.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-123-13-a"><num>(a)</num><content><p>after the words “the representative partner” there shall be inserted the words “or a successor of his”; and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-123-13-b"><num>(b)</num><content><p>after the words “that partner”, in both places where they occur, there shall be inserted the words “or successor”.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-123-14"><num>(14)</num><content><p><mod>In subsection (1) of section 118 of that Act (interpretation), for the definition of “successor” there shall be substituted the following definition—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><p>“successor”, in relation to a person who is required to make and deliver, or has made and delivered, a return under section 12AA of this Act, and “predecessor” and “successor”, in relation to the successor of such a person, shall be construed in accordance with section 12AA(11) of this Act;</p></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-124"><num>124</num><heading>Retention of original records</heading><subsection eId="section-124-1"><num>(1)</num><intro><p>The <noteRef href="#m00075" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxes Management Act 1970, as it has effect—</p></intro><level class="para1" eId="section-124-1-a"><num>(a)</num><content><p>for the purposes of income tax and capital gains tax, as respects the year 1996-97 and subsequent years of assessment, and</p></content></level><level class="para1" eId="section-124-1-b"><num>(b)</num><content><p>for the purposes of corporation tax, as respects accounting periods ending on or after the day appointed under section 199 of the <noteRef href="#m00076" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1994 for the purposes of Chapter III of Part IV of that Act (self-assessment management provisions),</p></content></level><wrapUp><p>shall be amended in accordance with the following provisions of this section.</p></wrapUp></subsection><subsection eId="section-124-2"><num>(2)</num><content><p>In section 12B (records to be kept for purposes of returns) in subsection (4) (which permits the duty to preserve records to be discharged by the preservation of the information contained in them, and provides for the admissibility in evidence of copy documents) at the beginning there shall be inserted the words “Except in the case of records falling within subsection (4A) below,”.</p></content></subsection><subsection eId="section-124-3"><num>(3)</num><content><p><mod>After that subsection there shall be inserted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(4A)</num><intro><p>The records which fall within this subsection are—</p></intro><level class="para1"><num>(a)</num><intro><p>any statement in writing such as is mentioned in—</p></intro><level class="para2"><num>(i)</num><content><p>subsection (1) of section 234 of the principal Act (amount of qualifying distribution and tax credit), or</p></content></level><level class="para2"><num>(ii)</num><content><p>subsection (1) of section 352 of that Act (gross amount, tax deducted, and actual amount paid, in certain cases where payments are made under deduction of tax),</p></content></level><wrapUp><p>which is furnished by the company or person there mentioned, whether after the making of a request or otherwise;</p></wrapUp></level><level class="para1"><num>(b)</num><content><p>any certificate or other record (however described) which is required by regulations under section 566(1) of the principal Act to be given to a sub-contractor (within the meaning of Chapter IV of Part XIII of that Act) on the making of a payment to which section 559 of that Act (deductions on account of tax) applies;</p></content></level><level class="para1"><num>(c)</num><intro><p>any such record as may be requisite for making a correct and complete claim in respect of, or otherwise requisite for making a correct and complete return so far as relating to, an amount of tax—</p></intro><level class="para2"><num>(i)</num><content><p>which has been paid under the laws of a territory outside the United Kingdom, or</p></content></level><level class="para2"><num>(ii)</num><content><p>which would have been payable under the law of such a territory but for a relief to which section 788(5) of the principal Act (relief for promoting development and relief contemplated by double taxation arrangements) applies.</p></content></level></level></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-124-4"><num>(4)</num><content><p>In subsection (5) of that section (penalty for failure to comply with section 12B(1) or (2A)) for “Subject to subsection (5A)” there shall be substituted “Subject to subsections (5A) and (5B)”.</p></content></subsection><subsection eId="section-124-5"><num>(5)</num><content><p><mod>After subsection (5A) of that section there shall be inserted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(5B)</num><intro><p>Subsection (5) above also does not apply where—</p></intro><level class="para1"><num>(a)</num><content><p>the records which the person fails to keep or preserve are records falling within paragraph (a) of subsection (4A) above; and</p></content></level><level class="para1"><num>(b)</num><content><p>an officer of the Board is satisfied that any facts which he reasonably requires to be proved, and which would have been proved by the records, are proved by other documentary evidence furnished to him.</p></content></level></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-124-6"><num>(6)</num><content><p>In Schedule 1A (claims etc not included in returns) in paragraph 2A (keeping and preserving of records) in sub-paragraph (3) (which makes corresponding provision to section 12B(4)) at the beginning there shall be inserted “Except in the case of records falling within section 12B(4A) of this Act,”.</p></content></subsection><subsection eId="section-124-7"><num>(7)</num><content><p>In sub-paragraph (4) of that paragraph (penalty for failure to comply with paragraph 2A(1)) at the beginning there shall be inserted “Subject to sub-paragraph (5) below,”.</p></content></subsection><subsection eId="section-124-8"><num>(8)</num><content><p><mod>After that sub-paragraph there shall be inserted—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><subparagraph><num>(5)</num><intro><p>Sub-paragraph (4) above does not apply where—</p></intro><level class="para1"><num>(a)</num><content><p>the records which the person fails to keep or preserve are records falling within paragraph (a) of section 12B(4A) of this Act; and</p></content></level><level class="para1"><num>(b)</num><content><p>an officer of the Board is satisfied that any facts which he reasonably requires to be proved, and which would have been proved by the records, are proved by other documentary evidence furnished to him.</p></content></level></subparagraph></quotedStructure></mod></p></content></subsection><subsection eId="section-124-9"><num>(9)</num><intro><p>The amendments made by this section shall not have effect in relation to—</p></intro><level class="para1" eId="section-124-9-a"><num>(a)</num><content><p>any time before this Act is passed, or</p></content></level><level class="para1" eId="section-124-9-b"><num>(b)</num><content><p>any records which a person fails to preserve before this Act is passed.</p></content></level></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-124-1"><num>(1)</num><intro><p>The <noteRef href="#m00075" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxes Management Act 1970, as it has effect—</p></intro><level class="para1" eId="section-124-1-a"><num>(a)</num><content><p>for the purposes of income tax and capital gains tax, as respects the year 1996-97 and subsequent years of assessment, and</p></content></level><level class="para1" eId="section-124-1-b"><num>(b)</num><content><p>for the purposes of corporation tax, as respects accounting periods ending on or after the day appointed under section 199 of the <noteRef href="#m00076" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1994 for the purposes of Chapter III of Part IV of that Act (self-assessment management provisions),</p></content></level><wrapUp><p>shall be amended in accordance with the following provisions of this section.</p></wrapUp></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-124-1-a"><num>(a)</num><content><p>for the purposes of income tax and capital gains tax, as respects the year 1996-97 and subsequent years of assessment, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-124-1-b"><num>(b)</num><content><p>for the purposes of corporation tax, as respects accounting periods ending on or after the day appointed under section 199 of the <noteRef href="#m00076" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1994 for the purposes of Chapter III of Part IV of that Act (self-assessment management provisions),</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-124-2"><num>(2)</num><content><p>In section 12B (records to be kept for purposes of returns) in subsection (4) (which permits the duty to preserve records to be discharged by the preservation of the information contained in them, and provides for the admissibility in evidence of copy documents) at the beginning there shall be inserted the words “Except in the case of records falling within subsection (4A) below,”.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-124-3"><num>(3)</num><content><p><mod>After that subsection there shall be inserted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(4A)</num><intro><p>The records which fall within this subsection are—</p></intro><level class="para1"><num>(a)</num><intro><p>any statement in writing such as is mentioned in—</p></intro><level class="para2"><num>(i)</num><content><p>subsection (1) of section 234 of the principal Act (amount of qualifying distribution and tax credit), or</p></content></level><level class="para2"><num>(ii)</num><content><p>subsection (1) of section 352 of that Act (gross amount, tax deducted, and actual amount paid, in certain cases where payments are made under deduction of tax),</p></content></level><wrapUp><p>which is furnished by the company or person there mentioned, whether after the making of a request or otherwise;</p></wrapUp></level><level class="para1"><num>(b)</num><content><p>any certificate or other record (however described) which is required by regulations under section 566(1) of the principal Act to be given to a sub-contractor (within the meaning of Chapter IV of Part XIII of that Act) on the making of a payment to which section 559 of that Act (deductions on account of tax) applies;</p></content></level><level class="para1"><num>(c)</num><intro><p>any such record as may be requisite for making a correct and complete claim in respect of, or otherwise requisite for making a correct and complete return so far as relating to, an amount of tax—</p></intro><level class="para2"><num>(i)</num><content><p>which has been paid under the laws of a territory outside the United Kingdom, or</p></content></level><level class="para2"><num>(ii)</num><content><p>which would have been payable under the law of such a territory but for a relief to which section 788(5) of the principal Act (relief for promoting development and relief contemplated by double taxation arrangements) applies.</p></content></level></level></subsection></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-124-4"><num>(4)</num><content><p>In subsection (5) of that section (penalty for failure to comply with section 12B(1) or (2A)) for “Subject to subsection (5A)” there shall be substituted “Subject to subsections (5A) and (5B)”.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-124-5"><num>(5)</num><content><p><mod>After subsection (5A) of that section there shall be inserted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(5B)</num><intro><p>Subsection (5) above also does not apply where—</p></intro><level class="para1"><num>(a)</num><content><p>the records which the person fails to keep or preserve are records falling within paragraph (a) of subsection (4A) above; and</p></content></level><level class="para1"><num>(b)</num><content><p>an officer of the Board is satisfied that any facts which he reasonably requires to be proved, and which would have been proved by the records, are proved by other documentary evidence furnished to him.</p></content></level></subsection></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-124-6"><num>(6)</num><content><p>In Schedule 1A (claims etc not included in returns) in paragraph 2A (keeping and preserving of records) in sub-paragraph (3) (which makes corresponding provision to section 12B(4)) at the beginning there shall be inserted “Except in the case of records falling within section 12B(4A) of this Act,”.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-124-7"><num>(7)</num><content><p>In sub-paragraph (4) of that paragraph (penalty for failure to comply with paragraph 2A(1)) at the beginning there shall be inserted “Subject to sub-paragraph (5) below,”.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-124-8"><num>(8)</num><content><p><mod>After that sub-paragraph there shall be inserted—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><subparagraph><num>(5)</num><intro><p>Sub-paragraph (4) above does not apply where—</p></intro><level class="para1"><num>(a)</num><content><p>the records which the person fails to keep or preserve are records falling within paragraph (a) of section 12B(4A) of this Act; and</p></content></level><level class="para1"><num>(b)</num><content><p>an officer of the Board is satisfied that any facts which he reasonably requires to be proved, and which would have been proved by the records, are proved by other documentary evidence furnished to him.</p></content></level></subparagraph></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-124-9"><num>(9)</num><intro><p>The amendments made by this section shall not have effect in relation to—</p></intro><level class="para1" eId="section-124-9-a"><num>(a)</num><content><p>any time before this Act is passed, or</p></content></level><level class="para1" eId="section-124-9-b"><num>(b)</num><content><p>any records which a person fails to preserve before this Act is passed.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-124-9-a"><num>(a)</num><content><p>any time before this Act is passed, or</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-124-9-b"><num>(b)</num><content><p>any records which a person fails to preserve before this Act is passed.</p></content></level>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-125"><num>125</num><heading>Determination of tax where no return delivered</heading><subsection eId="section-125-1"><num>(1)</num><content><p><mod>For subsection (1) of section 28C of the <noteRef href="#m00077" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxes Management Act 1970 (determination of tax where no return delivered) there shall be substituted the following subsections—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1)</num><intro><p>This section applies where—</p></intro><level class="para1"><num>(a)</num><content><p>a notice has been given to any person under section 8 or 8A of this Act (the relevant section), and</p></content></level><level class="para1"><num>(b)</num><content><p>the required return is not delivered on or before the filing date.</p></content></level></subsection><subsection><num>(1A)</num><intro><p>An officer of the Board may make a determination of the following amounts, to the best of his information and belief, namely—</p></intro><level class="para1"><num>(a)</num><content><p>the amounts in which the person who should have made the return is chargeable to income tax and capital gains tax for the year of assessment; and</p></content></level><level class="para1"><num>(b)</num><content><p>the amount which is payable by him by way of income tax for that year;</p></content></level><wrapUp><p>and subsection (1AA) of section 8 or, as the case may be, section 8A of this Act applies for the purposes of this subsection as it applies for the purposes of subsection (1) of that section.</p></wrapUp></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-125-2"><num>(2)</num><content><p>In subsection (3) of that section the words “or 11AA” shall cease to have effect.</p></content></subsection><subsection eId="section-125-3"><num>(3)</num><content><p>In subsection (6) of that section for the words “, section 8A(1A) or, as the case may be, section 11(4)” there shall be substituted the words “or, as the case may be, section 8A(1A)”.</p></content></subsection><subsection eId="section-125-4"><num>(4)</num><content><p><mod>After subsection (5) of section 59B of that Act (payment of income tax and capital gains tax) there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(5A)</num><content><p>Where a determination under section 28C of this Act which has effect as a person’s self-assessment is superseded by his self-assessment under section 9 of this Act, any amount of tax which is payable or repayable by virtue of the supersession shall be payable or (as the case may be) repayable on or before the day given by subsection (3) or (4) above.</p></content></subsection></quotedStructure></mod></p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-125-1"><num>(1)</num><content><p><mod>For subsection (1) of section 28C of the <noteRef href="#m00077" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxes Management Act 1970 (determination of tax where no return delivered) there shall be substituted the following subsections—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1)</num><intro><p>This section applies where—</p></intro><level class="para1"><num>(a)</num><content><p>a notice has been given to any person under section 8 or 8A of this Act (the relevant section), and</p></content></level><level class="para1"><num>(b)</num><content><p>the required return is not delivered on or before the filing date.</p></content></level></subsection><subsection><num>(1A)</num><intro><p>An officer of the Board may make a determination of the following amounts, to the best of his information and belief, namely—</p></intro><level class="para1"><num>(a)</num><content><p>the amounts in which the person who should have made the return is chargeable to income tax and capital gains tax for the year of assessment; and</p></content></level><level class="para1"><num>(b)</num><content><p>the amount which is payable by him by way of income tax for that year;</p></content></level><wrapUp><p>and subsection (1AA) of section 8 or, as the case may be, section 8A of this Act applies for the purposes of this subsection as it applies for the purposes of subsection (1) of that section.</p></wrapUp></subsection></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-125-2"><num>(2)</num><content><p>In subsection (3) of that section the words “or 11AA” shall cease to have effect.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-125-3"><num>(3)</num><content><p>In subsection (6) of that section for the words “, section 8A(1A) or, as the case may be, section 11(4)” there shall be substituted the words “or, as the case may be, section 8A(1A)”.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-125-4"><num>(4)</num><content><p><mod>After subsection (5) of section 59B of that Act (payment of income tax and capital gains tax) there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(5A)</num><content><p>Where a determination under section 28C of this Act which has effect as a person’s self-assessment is superseded by his self-assessment under section 9 of this Act, any amount of tax which is payable or repayable by virtue of the supersession shall be payable or (as the case may be) repayable on or before the day given by subsection (3) or (4) above.</p></content></subsection></quotedStructure></mod></p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-126"><num>126</num><heading>PAYE regulations</heading><subsection eId="section-126-1"><num>(1)</num><content><p><mod>After subsection (9) of section 59A of the Taxes Management Act 1970 (payments on account of income tax) there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(10)</num><content><p>Regulations under section 203 of the principal Act (PAYE) may provide that, for the purpose of determining the amount of any such excess as is mentioned in subsection (1) above, any necessary adjustments in respect of matters prescribed by the regulations shall be made to the amount of tax deducted at source under that section.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-126-2"><num>(2)</num><content><p><mod>After subsection (7) of section 59B of that Act (payment of income tax and capital gains tax) there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(8)</num><content><p>Regulations under section 203 of the principal Act (PAYE) may provide that, for the purpose of determining the amount of the difference mentioned in subsection (1) above, any necessary adjustments in respect of matters prescribed by the regulations shall be made to the amount of tax deducted at source under that section.</p></content></subsection></quotedStructure></mod></p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-126-1"><num>(1)</num><content><p><mod>After subsection (9) of section 59A of the Taxes Management Act 1970 (payments on account of income tax) there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(10)</num><content><p>Regulations under section 203 of the principal Act (PAYE) may provide that, for the purpose of determining the amount of any such excess as is mentioned in subsection (1) above, any necessary adjustments in respect of matters prescribed by the regulations shall be made to the amount of tax deducted at source under that section.</p></content></subsection></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-126-2"><num>(2)</num><content><p><mod>After subsection (7) of section 59B of that Act (payment of income tax and capital gains tax) there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(8)</num><content><p>Regulations under section 203 of the principal Act (PAYE) may provide that, for the purpose of determining the amount of the difference mentioned in subsection (1) above, any necessary adjustments in respect of matters prescribed by the regulations shall be made to the amount of tax deducted at source under that section.</p></content></subsection></quotedStructure></mod></p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-127"><num>127</num><heading>Repayment postponed pending completion of enquiries</heading><content><p><mod>After subsection (4) of section 59B of the <noteRef href="#m00078" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxes Management Act 1970 (payment of income tax and capital gains tax) there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(4A)</num><intro><p>Where in the case of a repayment the return on the basis of which the person’s self-assessment was made under section 9 of this Act is enquired into by an officer of the Board—</p></intro><level class="para1"><num>(a)</num><content><p>nothing in subsection (3) or (4) above shall require the repayment to be made before the day on which, by virtue of section 28A(5) of this Act, the officer’s enquiries are treated as completed; but</p></content></level><level class="para1"><num>(b)</num><content><p>the officer may at any time before that day make the repayment, on a provisional basis, to such extent as he thinks fit.</p></content></level></subsection></quotedStructure></mod></p></content></section>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-128"><num>128</num><heading>Claims for reliefs involving two or more years</heading><subsection eId="section-128-1"><num>(1)</num><intro><p>In section 42 of the Taxes Management Act 1970 (procedure for making claims etc.)—</p></intro><level class="para1" eId="section-128-1-a"><num>(a)</num><content><p>subsections (3A) and (3B) (which are superseded by subsection (2) below) shall cease to have effect;</p></content></level><level class="para1" eId="section-128-1-b"><num>(b)</num><content><p>in subsection (7)(a), the words “534, 535, 537A, 538” shall cease to have effect; and</p></content></level><level class="para1" eId="section-128-1-c"><num>(c)</num><content><p><mod>after subsection (11) there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(11A)</num><content><p>Schedule 1B to this Act shall have effect as respects certain claims for relief involving two or more years of assessment.</p></content></subsection></quotedStructure></mod></p></content></level></subsection><subsection eId="section-128-2"><num>(2)</num><content><p>After Schedule 1A to that Act there shall be inserted, as Schedule 1B, the provisions set out in Schedule 17 to this Act (claims for reliefs involving two or more years).</p></content></subsection><subsection eId="section-128-3"><num>(3)</num><content><p><mod>For subsection (9) of section 96 of the Taxes Act 1988 (relief for fluctuating profits of farming etc.) there shall be substituted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(9)</num><intro><p>Where a person makes a claim under this section, any claim by him for relief under any other provision of the Income Tax Acts for either of the two years of assessment—</p></intro><level class="para1"><num>(a)</num><content><p>shall not be out of time if made before the end of the period during which the claim under this section is capable of being revoked; and</p></content></level><level class="para1"><num>(b)</num><content><p>if already made, may be amended or revoked before the end of that period;</p></content></level><wrapUp><p>and, in relation to a claim made by being included in a return, any reference in this subsection to amending or revoking the claim is a reference to amending the return by amending or, as the case may be, omitting the claim.</p></wrapUp></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-128-4"><num>(4)</num><intro><p>In section 108 of that Act (election for carry-back)—</p></intro><level class="para1" eId="section-128-4-a"><num>(a)</num><content><p>for the words “the inspector within two years after” there shall be substituted the words “an officer of the Board within one year from the 31st January next following”; and</p></content></level><level class="para1" eId="section-128-4-b"><num>(b)</num><content><p>the words from “and, in any such case” to the end shall cease to have effect.</p></content></level></subsection><subsection eId="section-128-5"><num>(5)</num><content><p><mod>For subsection (5) of section 534 of that Act (relief for copyright payments) there shall be substituted the following subsections—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(5)</num><intro><p>A claim under this section with respect to any payment to which it applies by virtue only of subsection (4)(b) above—</p></intro><level class="para1"><num>(a)</num><content><p>shall have effect as a claim with respect to all qualifying payments, that is to say, all such payments in respect of the copyright in the same work which are receivable by the claimant, whether before or after the claim; and</p></content></level><level class="para1"><num>(b)</num><content><p>where qualifying payments are so receivable in two or more years of assessment, shall be treated for the purposes of the Management Act as if it were two or more separate claims, each in respect of the qualifying payments receivable in one of those years.</p></content></level></subsection><subsection><num>(5A)</num><intro><p>A claim under this section may be made at any time within one year from the 31st January next following—</p></intro><level class="para1"><num>(a)</num><content><p>in the case of such a claim as is mentioned in subsection (5) above, the latest year of assessment in which a qualifying payment is receivable; and</p></content></level><level class="para1"><num>(b)</num><content><p>in the case of any other claim, the year of assessment in which the payment in question is receivable.</p></content></level></subsection><subsection><num>(5B)</num><content><p>For the purposes of subsections (5) and (5A) above, a payment shall be regarded as receivable in the year of assessment in computing the amount of the profits or gains of which it would, but for this section, be included.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-128-6"><num>(6)</num><content><p><mod>After subsection (6) of that section there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(6A)</num><intro><p>In the case of persons carrying on a trade, profession or business in partnership, no claim may be made under any of the following provisions, namely—</p></intro><level class="para1"><num>(a)</num><content><p>this section and section 535;</p></content></level><level class="para1"><num>(b)</num><content><p>section 537 as it has effect in relation to this section and section 535; and</p></content></level><level class="para1"><num>(c)</num><content><p>section 537A and section 538,</p></content></level><wrapUp><p>in respect of any payment or sum receivable on or after 6th April 1996; and nothing in any of those provisions shall be construed as applying to profits chargeable to corporation tax.</p></wrapUp></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-128-7"><num>(7)</num><intro><p>In section 535 of that Act (relief where copyright sold after ten years or more), the following shall cease to have effect, namely—</p></intro><level class="para1" eId="section-128-7-a"><num>(a)</num><content><p>in subsection (4), the words “Subject to subsection (5) below”;</p></content></level><level class="para1" eId="section-128-7-b"><num>(b)</num><content><p>subsections (5) and (7); and</p></content></level><level class="para1" eId="section-128-7-c"><num>(c)</num><content><p>in subsection (6), the words from “unless the author” to the end.</p></content></level></subsection><subsection eId="section-128-8"><num>(8)</num><content><p><mod>After subsection (8) of that section there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(8A)</num><content><p>No claim for relief made under subsection (1) above shall be allowed unless it is made within one year from the 31st January next following the year of assessment in which the payment is receivable; and for the purposes of this subsection a payment shall be regarded as receivable in the year of assessment in computing the amount of the profits or gains of which it would, but for this section, be included.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-128-9"><num>(9)</num><content><p><mod>For subsection (5) of section 537A of that Act (relief for payments in respect of designs) there shall be substituted the following subsections—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(5)</num><intro><p>A claim under this section with respect to any payment to which it applies by virtue only of subsection (4)(b) above—</p></intro><level class="para1"><num>(a)</num><content><p>shall have effect as a claim with respect to all qualifying payments, that is to say, all such payments in respect of rights in the design in question which are receivable by the claimant, whether before or after the claim; and</p></content></level><level class="para1"><num>(b)</num><content><p>where qualifying payments are so receivable in two or more years of assessment, shall be treated for the purposes of the Management Act as if it were two or more separate claims, each in respect of the qualifying payments receivable in one of those years.</p></content></level></subsection><subsection><num>(5A)</num><intro><p>A claim under this section may be made at any time within one year from the 31st January next following—</p></intro><level class="para1"><num>(a)</num><content><p>in the case of such a claim as is mentioned in subsection (5) above, the latest year of assessment in which a qualifying payment is receivable; and</p></content></level><level class="para1"><num>(b)</num><content><p>in the case of any other claim, the year of assessment in which the payment in question is receivable.</p></content></level></subsection><subsection><num>(5B)</num><content><p>For the purposes of subsections (5) and (5A) above, a payment shall be regarded as receivable in the year of assessment in computing the amount of the profits or gains of which it would, but for this section, be included.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-128-10"><num>(10)</num><content><p><mod>After subsection (3) of section 538 of that Act (relief for painters, sculptors and other artists) there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(4)</num><content><p>No claim for relief made under subsection (1) above shall be allowed unless it is made within one year from the 31st January next following the year of assessment in which the payment is receivable; and for the purposes of this subsection a payment shall be regarded as receivable in the year of assessment in computing the amount of the profits or gains of which it would, but for this section, be included.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-128-11"><num>(11)</num><content><p>This section (except subsections (1)(b) and (6) above) and Schedule 17 to this Act have effect as respects claims made (or deemed to be made) in relation to the year 1996-97 or later years of assessment.</p></content></subsection><subsection eId="section-128-12"><num>(12)</num><content><p>Subsection (1)(b) above has effect as respects claims made in relation to the year 1997-98 or later years of assessment.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-128-1"><num>(1)</num><intro><p>In section 42 of the Taxes Management Act 1970 (procedure for making claims etc.)—</p></intro><level class="para1" eId="section-128-1-a"><num>(a)</num><content><p>subsections (3A) and (3B) (which are superseded by subsection (2) below) shall cease to have effect;</p></content></level><level class="para1" eId="section-128-1-b"><num>(b)</num><content><p>in subsection (7)(a), the words “534, 535, 537A, 538” shall cease to have effect; and</p></content></level><level class="para1" eId="section-128-1-c"><num>(c)</num><content><p><mod>after subsection (11) there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(11A)</num><content><p>Schedule 1B to this Act shall have effect as respects certain claims for relief involving two or more years of assessment.</p></content></subsection></quotedStructure></mod></p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-128-1-a"><num>(a)</num><content><p>subsections (3A) and (3B) (which are superseded by subsection (2) below) shall cease to have effect;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-128-1-b"><num>(b)</num><content><p>in subsection (7)(a), the words “534, 535, 537A, 538” shall cease to have effect; and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-128-1-c"><num>(c)</num><content><p><mod>after subsection (11) there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(11A)</num><content><p>Schedule 1B to this Act shall have effect as respects certain claims for relief involving two or more years of assessment.</p></content></subsection></quotedStructure></mod></p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-128-2"><num>(2)</num><content><p>After Schedule 1A to that Act there shall be inserted, as Schedule 1B, the provisions set out in Schedule 17 to this Act (claims for reliefs involving two or more years).</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-128-3"><num>(3)</num><content><p><mod>For subsection (9) of section 96 of the Taxes Act 1988 (relief for fluctuating profits of farming etc.) there shall be substituted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(9)</num><intro><p>Where a person makes a claim under this section, any claim by him for relief under any other provision of the Income Tax Acts for either of the two years of assessment—</p></intro><level class="para1"><num>(a)</num><content><p>shall not be out of time if made before the end of the period during which the claim under this section is capable of being revoked; and</p></content></level><level class="para1"><num>(b)</num><content><p>if already made, may be amended or revoked before the end of that period;</p></content></level><wrapUp><p>and, in relation to a claim made by being included in a return, any reference in this subsection to amending or revoking the claim is a reference to amending the return by amending or, as the case may be, omitting the claim.</p></wrapUp></subsection></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-128-4"><num>(4)</num><intro><p>In section 108 of that Act (election for carry-back)—</p></intro><level class="para1" eId="section-128-4-a"><num>(a)</num><content><p>for the words “the inspector within two years after” there shall be substituted the words “an officer of the Board within one year from the 31st January next following”; and</p></content></level><level class="para1" eId="section-128-4-b"><num>(b)</num><content><p>the words from “and, in any such case” to the end shall cease to have effect.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-128-4-a"><num>(a)</num><content><p>for the words “the inspector within two years after” there shall be substituted the words “an officer of the Board within one year from the 31st January next following”; and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-128-4-b"><num>(b)</num><content><p>the words from “and, in any such case” to the end shall cease to have effect.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-128-5"><num>(5)</num><content><p><mod>For subsection (5) of section 534 of that Act (relief for copyright payments) there shall be substituted the following subsections—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(5)</num><intro><p>A claim under this section with respect to any payment to which it applies by virtue only of subsection (4)(b) above—</p></intro><level class="para1"><num>(a)</num><content><p>shall have effect as a claim with respect to all qualifying payments, that is to say, all such payments in respect of the copyright in the same work which are receivable by the claimant, whether before or after the claim; and</p></content></level><level class="para1"><num>(b)</num><content><p>where qualifying payments are so receivable in two or more years of assessment, shall be treated for the purposes of the Management Act as if it were two or more separate claims, each in respect of the qualifying payments receivable in one of those years.</p></content></level></subsection><subsection><num>(5A)</num><intro><p>A claim under this section may be made at any time within one year from the 31st January next following—</p></intro><level class="para1"><num>(a)</num><content><p>in the case of such a claim as is mentioned in subsection (5) above, the latest year of assessment in which a qualifying payment is receivable; and</p></content></level><level class="para1"><num>(b)</num><content><p>in the case of any other claim, the year of assessment in which the payment in question is receivable.</p></content></level></subsection><subsection><num>(5B)</num><content><p>For the purposes of subsections (5) and (5A) above, a payment shall be regarded as receivable in the year of assessment in computing the amount of the profits or gains of which it would, but for this section, be included.</p></content></subsection></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-128-6"><num>(6)</num><content><p><mod>After subsection (6) of that section there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(6A)</num><intro><p>In the case of persons carrying on a trade, profession or business in partnership, no claim may be made under any of the following provisions, namely—</p></intro><level class="para1"><num>(a)</num><content><p>this section and section 535;</p></content></level><level class="para1"><num>(b)</num><content><p>section 537 as it has effect in relation to this section and section 535; and</p></content></level><level class="para1"><num>(c)</num><content><p>section 537A and section 538,</p></content></level><wrapUp><p>in respect of any payment or sum receivable on or after 6th April 1996; and nothing in any of those provisions shall be construed as applying to profits chargeable to corporation tax.</p></wrapUp></subsection></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-128-7"><num>(7)</num><intro><p>In section 535 of that Act (relief where copyright sold after ten years or more), the following shall cease to have effect, namely—</p></intro><level class="para1" eId="section-128-7-a"><num>(a)</num><content><p>in subsection (4), the words “Subject to subsection (5) below”;</p></content></level><level class="para1" eId="section-128-7-b"><num>(b)</num><content><p>subsections (5) and (7); and</p></content></level><level class="para1" eId="section-128-7-c"><num>(c)</num><content><p>in subsection (6), the words from “unless the author” to the end.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-128-7-a"><num>(a)</num><content><p>in subsection (4), the words “Subject to subsection (5) below”;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-128-7-b"><num>(b)</num><content><p>subsections (5) and (7); and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-128-7-c"><num>(c)</num><content><p>in subsection (6), the words from “unless the author” to the end.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-128-8"><num>(8)</num><content><p><mod>After subsection (8) of that section there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(8A)</num><content><p>No claim for relief made under subsection (1) above shall be allowed unless it is made within one year from the 31st January next following the year of assessment in which the payment is receivable; and for the purposes of this subsection a payment shall be regarded as receivable in the year of assessment in computing the amount of the profits or gains of which it would, but for this section, be included.</p></content></subsection></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-128-9"><num>(9)</num><content><p><mod>For subsection (5) of section 537A of that Act (relief for payments in respect of designs) there shall be substituted the following subsections—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(5)</num><intro><p>A claim under this section with respect to any payment to which it applies by virtue only of subsection (4)(b) above—</p></intro><level class="para1"><num>(a)</num><content><p>shall have effect as a claim with respect to all qualifying payments, that is to say, all such payments in respect of rights in the design in question which are receivable by the claimant, whether before or after the claim; and</p></content></level><level class="para1"><num>(b)</num><content><p>where qualifying payments are so receivable in two or more years of assessment, shall be treated for the purposes of the Management Act as if it were two or more separate claims, each in respect of the qualifying payments receivable in one of those years.</p></content></level></subsection><subsection><num>(5A)</num><intro><p>A claim under this section may be made at any time within one year from the 31st January next following—</p></intro><level class="para1"><num>(a)</num><content><p>in the case of such a claim as is mentioned in subsection (5) above, the latest year of assessment in which a qualifying payment is receivable; and</p></content></level><level class="para1"><num>(b)</num><content><p>in the case of any other claim, the year of assessment in which the payment in question is receivable.</p></content></level></subsection><subsection><num>(5B)</num><content><p>For the purposes of subsections (5) and (5A) above, a payment shall be regarded as receivable in the year of assessment in computing the amount of the profits or gains of which it would, but for this section, be included.</p></content></subsection></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-128-10"><num>(10)</num><content><p><mod>After subsection (3) of section 538 of that Act (relief for painters, sculptors and other artists) there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(4)</num><content><p>No claim for relief made under subsection (1) above shall be allowed unless it is made within one year from the 31st January next following the year of assessment in which the payment is receivable; and for the purposes of this subsection a payment shall be regarded as receivable in the year of assessment in computing the amount of the profits or gains of which it would, but for this section, be included.</p></content></subsection></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-128-11"><num>(11)</num><content><p>This section (except subsections (1)(b) and (6) above) and Schedule 17 to this Act have effect as respects claims made (or deemed to be made) in relation to the year 1996-97 or later years of assessment.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-128-12"><num>(12)</num><content><p>Subsection (1)(b) above has effect as respects claims made in relation to the year 1997-98 or later years of assessment.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-129"><num>129</num><heading>Claims for medical insurance and vocational training relief</heading><subsection eId="section-129-1"><num>(1)</num><intro><p>Nothing in section 42 of the <noteRef href="#m00079" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxes Management Act 1970 (procedure for making claims etc.), or Schedule 1A to that Act (claims etc. not included in returns), shall apply in relation to—</p></intro><level class="para1" eId="section-129-1-a"><num>(a)</num><content><p>any claim under subsection (6)(b) of section 54 (medical insurance relief) of the <noteRef href="#m00080" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1989 (“the 1989 Act”); or</p></content></level><level class="para1" eId="section-129-1-b"><num>(b)</num><content><p>any claim under subsection (5)(b) of section 32 (vocational training relief) of the <noteRef href="#m00081" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1991 (“the 1991 Act”).</p></content></level></subsection><subsection eId="section-129-2"><num>(2)</num><content><p>In section 54(6)(b) of the 1989 Act and section 32(5)(b) of the 1991 Act, after the words “on making a claim” there shall be inserted the words “in accordance with regulations”.</p></content></subsection><subsection eId="section-129-3"><num>(3)</num><content><p><mod>In section 57(1) of the 1989 Act (medical insurance relief: supplementary), after paragraph (a) there shall be inserted the following paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(aa)</num><content><p>make provision for and with respect to appeals against a decision of an officer of the Board or the Board with respect to a claim under section 54(6)(b) above;</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-129-4"><num>(4)</num><content><p><mod>In section 33(1) of the 1991 Act (vocational training relief: supplementary), after paragraph (a) there shall be inserted the following paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(aa)</num><content><p>make provision for and with respect to appeals against a decision of an officer of the Board or the Board with respect to a claim under section 32(5)(b) above;</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-129-5"><num>(5)</num><content><p>Subsection (1)(a) above shall not apply in relation to claims made before the coming into force of regulations made by virtue of section 57(1)(aa) of the 1989 Act.</p></content></subsection><subsection eId="section-129-6"><num>(6)</num><content><p>Subsection (1)(b) above shall not apply in relation to claims made before the coming into force of regulations made by virtue of section 33(1)(aa) of the 1991 Act.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-129-1"><num>(1)</num><intro><p>Nothing in section 42 of the <noteRef href="#m00079" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxes Management Act 1970 (procedure for making claims etc.), or Schedule 1A to that Act (claims etc. not included in returns), shall apply in relation to—</p></intro><level class="para1" eId="section-129-1-a"><num>(a)</num><content><p>any claim under subsection (6)(b) of section 54 (medical insurance relief) of the <noteRef href="#m00080" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1989 (“the 1989 Act”); or</p></content></level><level class="para1" eId="section-129-1-b"><num>(b)</num><content><p>any claim under subsection (5)(b) of section 32 (vocational training relief) of the <noteRef href="#m00081" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1991 (“the 1991 Act”).</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-129-1-a"><num>(a)</num><content><p>any claim under subsection (6)(b) of section 54 (medical insurance relief) of the <noteRef href="#m00080" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1989 (“the 1989 Act”); or</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-129-1-b"><num>(b)</num><content><p>any claim under subsection (5)(b) of section 32 (vocational training relief) of the <noteRef href="#m00081" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1991 (“the 1991 Act”).</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-129-2"><num>(2)</num><content><p>In section 54(6)(b) of the 1989 Act and section 32(5)(b) of the 1991 Act, after the words “on making a claim” there shall be inserted the words “in accordance with regulations”.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-129-3"><num>(3)</num><content><p><mod>In section 57(1) of the 1989 Act (medical insurance relief: supplementary), after paragraph (a) there shall be inserted the following paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(aa)</num><content><p>make provision for and with respect to appeals against a decision of an officer of the Board or the Board with respect to a claim under section 54(6)(b) above;</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-129-4"><num>(4)</num><content><p><mod>In section 33(1) of the 1991 Act (vocational training relief: supplementary), after paragraph (a) there shall be inserted the following paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(aa)</num><content><p>make provision for and with respect to appeals against a decision of an officer of the Board or the Board with respect to a claim under section 32(5)(b) above;</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-129-5"><num>(5)</num><content><p>Subsection (1)(a) above shall not apply in relation to claims made before the coming into force of regulations made by virtue of section 57(1)(aa) of the 1989 Act.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-129-6"><num>(6)</num><content><p>Subsection (1)(b) above shall not apply in relation to claims made before the coming into force of regulations made by virtue of section 33(1)(aa) of the 1991 Act.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-130"><num>130</num><heading>Procedure for giving notices</heading><subsection eId="section-130-1"><num>(1)</num><intro><p>Section 42 of, and Schedule 1A to, the Taxes Management Act 1970, as they have effect—</p></intro><level class="para1" eId="section-130-1-a"><num>(a)</num><content><p>for the purposes of income tax and capital gains tax, as respects the year 1996-97 and subsequent years of assessment, and</p></content></level><level class="para1" eId="section-130-1-b"><num>(b)</num><content><p>for the purposes of corporation tax, as respects accounting periods ending on or after the day appointed under section 199 of the <noteRef href="#m00082" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1994 for the purposes of Chapter III of Part IV of that Act (self-assessment management provisions),</p></content></level><wrapUp><p>shall be amended in accordance with the following provisions of this section.</p></wrapUp></subsection><subsection eId="section-130-2"><num>(2)</num><intro><p>In subsection (7) of section 42 (which contains a list of provisions, claims under which must be made in accordance with subsection (6)) the following words shall cease to have effect, that is to say—</p></intro><level class="para1" eId="section-130-2-a"><num>(a)</num><content><p>in paragraph (a), “62A,” and “401,”; and</p></content></level><level class="para1" eId="section-130-2-b"><num>(b)</num><content><p>in paragraph (c), “30,”, “33,”, “48, 49,” and “124A,”.</p></content></level></subsection><subsection eId="section-130-3"><num>(3)</num><content><p>In subsection (10) of that section (section 42 to apply in relation to elections and notices as it applies in relation to claims) the words “and notices” shall cease to have effect.</p></content></subsection><subsection eId="section-130-4"><num>(4)</num><content><p>In subsection (11) of that section (Schedule 1A to apply as respects any claim, election or notice made otherwise than in a return under section 8 etc) for the words “, election or notice” there shall be substituted “or election”.</p></content></subsection><subsection eId="section-130-5"><num>(5)</num><content><p>In paragraph 1 of Schedule 1A (claims etc. not included in returns), in the definition of “claim”, for the words “means a claim, election or notice” there shall be substituted “means a claim or election”.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-130-1"><num>(1)</num><intro><p>Section 42 of, and Schedule 1A to, the Taxes Management Act 1970, as they have effect—</p></intro><level class="para1" eId="section-130-1-a"><num>(a)</num><content><p>for the purposes of income tax and capital gains tax, as respects the year 1996-97 and subsequent years of assessment, and</p></content></level><level class="para1" eId="section-130-1-b"><num>(b)</num><content><p>for the purposes of corporation tax, as respects accounting periods ending on or after the day appointed under section 199 of the <noteRef href="#m00082" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1994 for the purposes of Chapter III of Part IV of that Act (self-assessment management provisions),</p></content></level><wrapUp><p>shall be amended in accordance with the following provisions of this section.</p></wrapUp></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-130-1-a"><num>(a)</num><content><p>for the purposes of income tax and capital gains tax, as respects the year 1996-97 and subsequent years of assessment, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-130-1-b"><num>(b)</num><content><p>for the purposes of corporation tax, as respects accounting periods ending on or after the day appointed under section 199 of the <noteRef href="#m00082" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1994 for the purposes of Chapter III of Part IV of that Act (self-assessment management provisions),</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-130-2"><num>(2)</num><intro><p>In subsection (7) of section 42 (which contains a list of provisions, claims under which must be made in accordance with subsection (6)) the following words shall cease to have effect, that is to say—</p></intro><level class="para1" eId="section-130-2-a"><num>(a)</num><content><p>in paragraph (a), “62A,” and “401,”; and</p></content></level><level class="para1" eId="section-130-2-b"><num>(b)</num><content><p>in paragraph (c), “30,”, “33,”, “48, 49,” and “124A,”.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-130-2-a"><num>(a)</num><content><p>in paragraph (a), “62A,” and “401,”; and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-130-2-b"><num>(b)</num><content><p>in paragraph (c), “30,”, “33,”, “48, 49,” and “124A,”.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-130-3"><num>(3)</num><content><p>In subsection (10) of that section (section 42 to apply in relation to elections and notices as it applies in relation to claims) the words “and notices” shall cease to have effect.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-130-4"><num>(4)</num><content><p>In subsection (11) of that section (Schedule 1A to apply as respects any claim, election or notice made otherwise than in a return under section 8 etc) for the words “, election or notice” there shall be substituted “or election”.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-130-5"><num>(5)</num><content><p>In paragraph 1 of Schedule 1A (claims etc. not included in returns), in the definition of “claim”, for the words “means a claim, election or notice” there shall be substituted “means a claim or election”.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-131"><num>131</num><heading>Interest on overdue tax</heading><subsection eId="section-131-1"><num>(1)</num><content><p><mod>Section 110 of the <noteRef href="#m00083" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1995 (interest on overdue tax) shall be deemed to have been enacted with the insertion after subsection (3) of the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(4)</num><content><p>So far as it relates to partnerships whose trades, professions or businesses were set up and commenced before 6th April 1994, subsection (1) above has effect as respects the year 1997-98 and subsequent years of assessment.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-131-2"><num>(2)</num><content><p>In subsection (3) of section 86 of the <noteRef href="#m00084" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxes Management Act 1970 (which was substituted by the said section 110), for the words “section 93” there shall be substituted the words “section 92”.</p></content></subsection><subsection eId="section-131-3"><num>(3)</num><content><p>In Schedule 19 to the <noteRef href="#m00085" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1994, paragraph 23 (which is superseded by the said section 110) shall cease to have effect.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-131-1"><num>(1)</num><content><p><mod>Section 110 of the <noteRef href="#m00083" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1995 (interest on overdue tax) shall be deemed to have been enacted with the insertion after subsection (3) of the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(4)</num><content><p>So far as it relates to partnerships whose trades, professions or businesses were set up and commenced before 6th April 1994, subsection (1) above has effect as respects the year 1997-98 and subsequent years of assessment.</p></content></subsection></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-131-2"><num>(2)</num><content><p>In subsection (3) of section 86 of the <noteRef href="#m00084" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxes Management Act 1970 (which was substituted by the said section 110), for the words “section 93” there shall be substituted the words “section 92”.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-131-3"><num>(3)</num><content><p>In Schedule 19 to the <noteRef href="#m00085" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1994, paragraph 23 (which is superseded by the said section 110) shall cease to have effect.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-132"><num>132</num><heading>Overdue tax and excessive payments by the Board</heading><content><p>Schedule 18 to this Act (which amends enactments relating to overdue tax or excessive payments by the Board) shall have effect.</p></content></section>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-133"><num>133</num><heading>Claims and enquiries</heading><content><p>Schedule 19 to this Act (which, for purposes connected with self-assessment, further amends provisions relating to claims and enquiries) shall have effect.</p></content></section>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-134"><num>134</num><heading>Discretions exercisable by the Board etc</heading><subsection eId="section-134-1"><num>(1)</num><content><p>Schedule 20 to this Act (which in connection with self-assessment modifies enactments by virtue of which a decision or other action affecting an assessment may be or is required to be taken by the Board, or one of their officers, before the making of the assessment) shall have effect.</p></content></subsection><subsection eId="section-134-2"><num>(2)</num><intro><p>Subject to subsection (3) below, the amendments made by that Schedule shall have effect—</p></intro><level class="para1" eId="section-134-2-a"><num>(a)</num><content><p>for the purposes of income tax and capital gains tax, as respects the year 1996-97 and subsequent years of assessment; and</p></content></level><level class="para1" eId="section-134-2-b"><num>(b)</num><content><p>for the purposes of corporation tax, as respects accounting periods ending on or after the day appointed under section 199 of the Finance Act 1994 for the purposes of Chapter III of Part IV of that Act (self-assessment management provisions).</p></content></level></subsection><subsection eId="section-134-3"><num>(3)</num><content><p>Paragraphs 22 and 23 of that Schedule shall have effect in relation to shares issued on or after 6th April 1996.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-134-1"><num>(1)</num><content><p>Schedule 20 to this Act (which in connection with self-assessment modifies enactments by virtue of which a decision or other action affecting an assessment may be or is required to be taken by the Board, or one of their officers, before the making of the assessment) shall have effect.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-134-2"><num>(2)</num><intro><p>Subject to subsection (3) below, the amendments made by that Schedule shall have effect—</p></intro><level class="para1" eId="section-134-2-a"><num>(a)</num><content><p>for the purposes of income tax and capital gains tax, as respects the year 1996-97 and subsequent years of assessment; and</p></content></level><level class="para1" eId="section-134-2-b"><num>(b)</num><content><p>for the purposes of corporation tax, as respects accounting periods ending on or after the day appointed under section 199 of the Finance Act 1994 for the purposes of Chapter III of Part IV of that Act (self-assessment management provisions).</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-134-2-a"><num>(a)</num><content><p>for the purposes of income tax and capital gains tax, as respects the year 1996-97 and subsequent years of assessment; and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-134-2-b"><num>(b)</num><content><p>for the purposes of corporation tax, as respects accounting periods ending on or after the day appointed under section 199 of the Finance Act 1994 for the purposes of Chapter III of Part IV of that Act (self-assessment management provisions).</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-134-3"><num>(3)</num><content><p>Paragraphs 22 and 23 of that Schedule shall have effect in relation to shares issued on or after 6th April 1996.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-135"><num>135</num><heading>Time limits for claims etc</heading><subsection eId="section-135-1"><num>(1)</num><content><p>Schedule 21 to this Act (which in connection with self-assessment modifies enactments which impose time limits on the making of claims, elections, adjustments and assessments and the giving of notices, and enactments which provide for the giving of notice to the inspector) shall have effect.</p></content></subsection><subsection eId="section-135-2"><num>(2)</num><intro><p>Subject to subsections (3) to (5) below, the amendments made by that Schedule shall have effect—</p></intro><level class="para1" eId="section-135-2-a"><num>(a)</num><content><p>for the purposes of income tax and capital gains tax, as respects the year 1996-97 and subsequent years of assessment; and</p></content></level><level class="para1" eId="section-135-2-b"><num>(b)</num><content><p>for the purposes of corporation tax, as respects accounting periods ending on or after the day appointed under section 199 of the <noteRef href="#m00086" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1994 for the purposes of Chapter III of Part IV of that Act (self-assessment management provisions).</p></content></level></subsection><subsection eId="section-135-3"><num>(3)</num><content><p>The amendments made to the <noteRef href="#m00087" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Capital Allowances Act 1990 and the Finance Act 1994 by that Schedule, in their application to trades, professions or vocations set up and commenced before 6th April 1994, shall (so far as relating to income tax) have effect as respects the year 1997-98 and subsequent years of assessment.</p></content></subsection><subsection eId="section-135-4"><num>(4)</num><intro><p>The Capital Allowances Act 1990, as it has effect for the year 1996-97 in relation to trades, professions or vocations set up and commenced before 6th April 1994, shall (so far as relating to income tax) have effect as respects that year with the following modifications, that is to say, as if—</p></intro><level class="para1" eId="section-135-4-a"><num>(a)</num><content><p>in sections 25(3)(c), 30(1), 31(3) and 33(1) and (4), for “two years after the end of” there were substituted “the first anniversary of the 31st January next following”;</p></content></level><level class="para1" eId="section-135-4-b"><num>(b)</num><content><p>in section 37(2)(c), for “more than two years after the end of the chargeable period or its basis period” there were substituted “later than the first anniversary of the 31st January next following the year of assessment in which ends the basis period”;</p></content></level><level class="para1" eId="section-135-4-c"><num>(c)</num><content><p>in section 53(2), for “before the expiry of the period of two years beginning at the end of” there were substituted “on or before the first anniversary of the 31st January next following”;</p></content></level><level class="para1" eId="section-135-4-d"><num>(d)</num><content><p>in section 68(5), for “two years after the end of that period” there were substituted “the first anniversary of the 31st January next following the year of assessment in which the relevant period ends”;</p></content></level><level class="para1" eId="section-135-4-e"><num>(e)</num><content><p>in section 68(9A)(b), for “two years after the end of” there were substituted “the first anniversary of the 31st January next following the year of assessment in which ends”;</p></content></level><level class="para1" eId="section-135-4-f"><num>(f)</num><content><p>in section 129(2), for “not more than two years after the end of” there were substituted “on or before the first anniversary of the 31st January next following”;</p></content></level><level class="para1" eId="section-135-4-g"><num>(g)</num><content><p>in section 141(3), for “the inspector not later than two years after the end of” there were substituted “an officer of the Board on or before the first anniversary of the 31st January next following”.</p></content></level></subsection><subsection eId="section-135-5"><num>(5)</num><content><p>Section 118 of the <noteRef href="#m00088" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1994, as it has effect for the year 1996-97 in relation to trades, professions or vocations set up and commenced before 6th April 1994, shall (so far as relating to income tax) have effect as respects that year as if, in subsection (3), for “two years after the end of” there were substituted “the first anniversary of the 31st January next following”.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-135-1"><num>(1)</num><content><p>Schedule 21 to this Act (which in connection with self-assessment modifies enactments which impose time limits on the making of claims, elections, adjustments and assessments and the giving of notices, and enactments which provide for the giving of notice to the inspector) shall have effect.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-135-2"><num>(2)</num><intro><p>Subject to subsections (3) to (5) below, the amendments made by that Schedule shall have effect—</p></intro><level class="para1" eId="section-135-2-a"><num>(a)</num><content><p>for the purposes of income tax and capital gains tax, as respects the year 1996-97 and subsequent years of assessment; and</p></content></level><level class="para1" eId="section-135-2-b"><num>(b)</num><content><p>for the purposes of corporation tax, as respects accounting periods ending on or after the day appointed under section 199 of the <noteRef href="#m00086" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1994 for the purposes of Chapter III of Part IV of that Act (self-assessment management provisions).</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-135-2-a"><num>(a)</num><content><p>for the purposes of income tax and capital gains tax, as respects the year 1996-97 and subsequent years of assessment; and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-135-2-b"><num>(b)</num><content><p>for the purposes of corporation tax, as respects accounting periods ending on or after the day appointed under section 199 of the <noteRef href="#m00086" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1994 for the purposes of Chapter III of Part IV of that Act (self-assessment management provisions).</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-135-3"><num>(3)</num><content><p>The amendments made to the <noteRef href="#m00087" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Capital Allowances Act 1990 and the Finance Act 1994 by that Schedule, in their application to trades, professions or vocations set up and commenced before 6th April 1994, shall (so far as relating to income tax) have effect as respects the year 1997-98 and subsequent years of assessment.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-135-4"><num>(4)</num><intro><p>The Capital Allowances Act 1990, as it has effect for the year 1996-97 in relation to trades, professions or vocations set up and commenced before 6th April 1994, shall (so far as relating to income tax) have effect as respects that year with the following modifications, that is to say, as if—</p></intro><level class="para1" eId="section-135-4-a"><num>(a)</num><content><p>in sections 25(3)(c), 30(1), 31(3) and 33(1) and (4), for “two years after the end of” there were substituted “the first anniversary of the 31st January next following”;</p></content></level><level class="para1" eId="section-135-4-b"><num>(b)</num><content><p>in section 37(2)(c), for “more than two years after the end of the chargeable period or its basis period” there were substituted “later than the first anniversary of the 31st January next following the year of assessment in which ends the basis period”;</p></content></level><level class="para1" eId="section-135-4-c"><num>(c)</num><content><p>in section 53(2), for “before the expiry of the period of two years beginning at the end of” there were substituted “on or before the first anniversary of the 31st January next following”;</p></content></level><level class="para1" eId="section-135-4-d"><num>(d)</num><content><p>in section 68(5), for “two years after the end of that period” there were substituted “the first anniversary of the 31st January next following the year of assessment in which the relevant period ends”;</p></content></level><level class="para1" eId="section-135-4-e"><num>(e)</num><content><p>in section 68(9A)(b), for “two years after the end of” there were substituted “the first anniversary of the 31st January next following the year of assessment in which ends”;</p></content></level><level class="para1" eId="section-135-4-f"><num>(f)</num><content><p>in section 129(2), for “not more than two years after the end of” there were substituted “on or before the first anniversary of the 31st January next following”;</p></content></level><level class="para1" eId="section-135-4-g"><num>(g)</num><content><p>in section 141(3), for “the inspector not later than two years after the end of” there were substituted “an officer of the Board on or before the first anniversary of the 31st January next following”.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-135-4-a"><num>(a)</num><content><p>in sections 25(3)(c), 30(1), 31(3) and 33(1) and (4), for “two years after the end of” there were substituted “the first anniversary of the 31st January next following”;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-135-4-b"><num>(b)</num><content><p>in section 37(2)(c), for “more than two years after the end of the chargeable period or its basis period” there were substituted “later than the first anniversary of the 31st January next following the year of assessment in which ends the basis period”;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-135-4-c"><num>(c)</num><content><p>in section 53(2), for “before the expiry of the period of two years beginning at the end of” there were substituted “on or before the first anniversary of the 31st January next following”;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-135-4-d"><num>(d)</num><content><p>in section 68(5), for “two years after the end of that period” there were substituted “the first anniversary of the 31st January next following the year of assessment in which the relevant period ends”;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-135-4-e"><num>(e)</num><content><p>in section 68(9A)(b), for “two years after the end of” there were substituted “the first anniversary of the 31st January next following the year of assessment in which ends”;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-135-4-f"><num>(f)</num><content><p>in section 129(2), for “not more than two years after the end of” there were substituted “on or before the first anniversary of the 31st January next following”;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-135-4-g"><num>(g)</num><content><p>in section 141(3), for “the inspector not later than two years after the end of” there were substituted “an officer of the Board on or before the first anniversary of the 31st January next following”.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-135-5"><num>(5)</num><content><p>Section 118 of the <noteRef href="#m00088" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1994, as it has effect for the year 1996-97 in relation to trades, professions or vocations set up and commenced before 6th April 1994, shall (so far as relating to income tax) have effect as respects that year as if, in subsection (3), for “two years after the end of” there were substituted “the first anniversary of the 31st January next following”.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-136"><num>136</num><heading>Appeals</heading><content><p>Schedule 22 to this Act (which makes provision, in connection with self-assessment, about appeals) shall have effect.</p></content></section>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="part-IV-chapter-V-crossheading-companies"><heading>Companies</heading><section eId="section-137"><num>137</num><heading>Schedules 13 and 16 to the Taxes Act 1988</heading><subsection eId="section-137-1"><num>(1)</num><content><p>Schedule 23 to this Act shall have effect.</p></content></subsection><subsection eId="section-137-2"><num>(2)</num><content><p>The amendments made by that Schedule shall have effect as respects return periods ending on or after the appointed day for the purposes of Chapter III of Part IV of the <noteRef href="#m00089" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1994.</p></content></subsection><subsection eId="section-137-3"><num>(3)</num><intro><p>In subsection (2) above “return period” means—</p></intro><level class="para1" eId="section-137-3-a"><num>(a)</num><content><p>so far as relating to Schedule 13 to the Taxes Act 1988, a period for which a return is required to be made under paragraph 1 of that Schedule; and</p></content></level><level class="para1" eId="section-137-3-b"><num>(b)</num><content><p>so far as relating to Schedule 16 to that Act, a period for which a return is required to be made under paragraph 2 of that Schedule.</p></content></level></subsection></section><section eId="section-138"><num>138</num><heading>Accounting periods</heading><content><p>Schedule 24 to this Act (which makes provision, in connection with self-assessment, in relation to accounting periods) shall have effect.</p></content></section><section eId="section-139"><num>139</num><heading>Surrenders of advance corporation tax</heading><content><p>Schedule 25 to this Act (which makes provision, in connection with self-assessment, about surrenders of advance corporation tax) shall have effect.</p></content></section></hcontainer>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-137"><num>137</num><heading>Schedules 13 and 16 to the Taxes Act 1988</heading><subsection eId="section-137-1"><num>(1)</num><content><p>Schedule 23 to this Act shall have effect.</p></content></subsection><subsection eId="section-137-2"><num>(2)</num><content><p>The amendments made by that Schedule shall have effect as respects return periods ending on or after the appointed day for the purposes of Chapter III of Part IV of the <noteRef href="#m00089" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1994.</p></content></subsection><subsection eId="section-137-3"><num>(3)</num><intro><p>In subsection (2) above “return period” means—</p></intro><level class="para1" eId="section-137-3-a"><num>(a)</num><content><p>so far as relating to Schedule 13 to the Taxes Act 1988, a period for which a return is required to be made under paragraph 1 of that Schedule; and</p></content></level><level class="para1" eId="section-137-3-b"><num>(b)</num><content><p>so far as relating to Schedule 16 to that Act, a period for which a return is required to be made under paragraph 2 of that Schedule.</p></content></level></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-137-1"><num>(1)</num><content><p>Schedule 23 to this Act shall have effect.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-137-2"><num>(2)</num><content><p>The amendments made by that Schedule shall have effect as respects return periods ending on or after the appointed day for the purposes of Chapter III of Part IV of the <noteRef href="#m00089" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1994.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-137-3"><num>(3)</num><intro><p>In subsection (2) above “return period” means—</p></intro><level class="para1" eId="section-137-3-a"><num>(a)</num><content><p>so far as relating to Schedule 13 to the Taxes Act 1988, a period for which a return is required to be made under paragraph 1 of that Schedule; and</p></content></level><level class="para1" eId="section-137-3-b"><num>(b)</num><content><p>so far as relating to Schedule 16 to that Act, a period for which a return is required to be made under paragraph 2 of that Schedule.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-137-3-a"><num>(a)</num><content><p>so far as relating to Schedule 13 to the Taxes Act 1988, a period for which a return is required to be made under paragraph 1 of that Schedule; and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-137-3-b"><num>(b)</num><content><p>so far as relating to Schedule 16 to that Act, a period for which a return is required to be made under paragraph 2 of that Schedule.</p></content></level>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-138"><num>138</num><heading>Accounting periods</heading><content><p>Schedule 24 to this Act (which makes provision, in connection with self-assessment, in relation to accounting periods) shall have effect.</p></content></section>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-139"><num>139</num><heading>Surrenders of advance corporation tax</heading><content><p>Schedule 25 to this Act (which makes provision, in connection with self-assessment, about surrenders of advance corporation tax) shall have effect.</p></content></section>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="part-IV-chapter-V-crossheading-chargeable-gains"><heading>Chargeable gains</heading><section eId="section-140"><num>140</num><heading>Transfer of company’s assets to investment trust</heading><subsection eId="section-140-1"><num>(1)</num><content><p><mod>In section 101 of the <noteRef href="#m00090" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxation of Chargeable Gains Act 1992 (transfer of company’s assets to investment trust) after subsection (1) there shall be inserted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1A)</num><content><p>Any chargeable gain or allowable loss which, apart from this subsection, would accrue to the company on the sale referred to in subsection (1) above shall be treated as accruing to the company immediately before the end of the last accounting period to end before the beginning of the accounting period mentioned in that subsection.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-140-2"><num>(2)</num><content><p>This section shall have effect as respects accounting periods ending on or after the day appointed under section 199 of the <noteRef href="#m00091" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1994 for the purposes of Chapter III of Part IV of that Act (self-assessment management provisions).</p></content></subsection></section><section eId="section-141"><num>141</num><heading>Roll-over relief</heading><subsection eId="section-141-1"><num>(1)</num><intro><p>In subsection (4) of section 152 of the Taxation of Chargeable Gains Act 1992 (roll-over relief)—</p></intro><level class="para1" eId="section-141-1-a"><num>(a)</num><content><p>after the word “making” there shall be inserted the words “or amending”; and</p></content></level><level class="para1" eId="section-141-1-b"><num>(b)</num><content><p>after the word “assessments”, in the second place where it occurs, there shall be inserted the words “or amendments”.</p></content></level></subsection><subsection eId="section-141-2"><num>(2)</num><content><p><mod>After section 153 of that Act there shall be inserted the following section—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>153A</num><heading>Provisional application of sections 152 and 153</heading><subsection><num>(1)</num><intro><p>This section applies where a person carrying on a trade who for a consideration disposes of, or of his interest in, any assets (“the old assets”) declares, in his return for the chargeable period in which the disposal takes place—</p></intro><level class="para1"><num>(a)</num><content><p>that the whole or any specified part of the consideration will be applied in the acquisition of, or of an interest in, other assets (“the new assets”) which on the acquisition will be taken into use, and used only, for the purposes of the trade;</p></content></level><level class="para1"><num>(b)</num><content><p>that the acquisition will take place as mentioned in subsection (3) of section 152; and</p></content></level><level class="para1"><num>(c)</num><content><p>that the new assets will be within the classes listed in section 155.</p></content></level></subsection><subsection><num>(2)</num><content><p>Until the declaration ceases to have effect, section 152 or, as the case may be, section 153 shall apply as if the acquisition had taken place and the person had made a claim under that section.</p></content></subsection><subsection><num>(3)</num><intro><p>The declaration shall cease to have effect as follows—</p></intro><level class="para1"><num>(a)</num><content><p>if and to the extent that it is withdrawn before the relevant day, or is superseded before that day by a valid claim made under section 152 or 153, on the day on which it is so withdrawn or superseded; and</p></content></level><level class="para1"><num>(b)</num><content><p>if and to the extent that it is not so withdrawn or superseded, on the relevant day.</p></content></level></subsection><subsection><num>(4)</num><intro><p>On the declaration ceasing to have effect in whole or in part, all necessary adjustments—</p></intro><level class="para1"><num>(a)</num><content><p>shall be made by making or amending assessments or by repayment or discharge of tax; and</p></content></level><level class="para1"><num>(b)</num><content><p>shall be so made notwithstanding any limitation on the time within which assessments or amendments may be made.</p></content></level></subsection><subsection><num>(5)</num><intro><p>In this section “the relevant day” means—</p></intro><level class="para1"><num>(a)</num><content><p>in relation to capital gains tax, the third anniversary of the 31st January next following the year of assessment in which the disposal of, or of the interest in, the old assets took place;</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to corporation tax, the fourth anniversary of the last day of the accounting period in which that disposal took place.</p></content></level></subsection><subsection><num>(6)</num><content><p>Subsections (6), (8), (10) and (11) of section 152 shall apply for the purposes of this section as they apply for the purposes of that section.</p></content></subsection></section></quotedStructure></mod></p></content></subsection><subsection eId="section-141-3"><num>(3)</num><intro><p>In section 175 of that Act (replacement of business assets by members of a group)—</p></intro><level class="para1" eId="section-141-3-a"><num>(a)</num><content><p>in subsections (2A) and (2B), after the words “Section 152” there shall be inserted the words “or 153”; and</p></content></level><level class="para1" eId="section-141-3-b"><num>(b)</num><content><p>in subsection (2C), for the words “Section 152 shall not” there shall be substituted the words “Neither section 152 nor section 153 shall”.</p></content></level></subsection><subsection eId="section-141-4"><num>(4)</num><content><p>In section 246 of that Act (time of disposal or acquisition), the words from “or, if earlier” to the end shall cease to have effect.</p></content></subsection><subsection eId="section-141-5"><num>(5)</num><content><p>In subsection (5)(b) of section 247 of that Act (roll-over relief on compulsory acquisition), for the words “subsection (3)” there shall be substituted the words “subsections (3) and (4)”.</p></content></subsection><subsection eId="section-141-6"><num>(6)</num><content><p><mod>After that section there shall be inserted the following section—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>247A</num><heading>Provisional application of section 247</heading><subsection><num>(1)</num><intro><p>This section applies where a person who disposes of land (“the old land”) to an authority exercising or having compulsory powers declares, in his return for the chargeable period in which the disposal takes place—</p></intro><level class="para1"><num>(a)</num><content><p>that the whole or any specified part of the consideration for the disposal will be applied in the acquisition of other land (“the new land”);</p></content></level><level class="para1"><num>(b)</num><content><p>that the acquisition will take place as mentioned in subsection (3) of section 152; and</p></content></level><level class="para1"><num>(c)</num><content><p>that the new land will not be land excluded from section 247(1)(c) by section 248.</p></content></level></subsection><subsection><num>(2)</num><content><p>Until the declaration ceases to have effect, section 247 shall apply as if the acquisition had taken place and the person had made a claim under that section.</p></content></subsection><subsection><num>(3)</num><content><p>For the purposes of this section, subsections (3) to (5) of section 153A shall apply as if the reference to section 152 or 153 were a reference to section 247 and the reference to the old assets were a reference to the old land.</p></content></subsection><subsection><num>(4)</num><content><p>In this section “land” and “authority exercising or having compulsory powers” have the same meaning as in section 247.</p></content></subsection></section></quotedStructure></mod></p></content></subsection></section><section eId="section-142"><num>142</num><heading>Premiums for leases</heading><subsection eId="section-142-1"><num>(1)</num><content><p>Paragraph 3 of Schedule 8 to the <noteRef href="#m00092" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxation of Chargeable Gains Act 1992 (premiums for leases) shall be amended as follows.</p></content></subsection><subsection eId="section-142-2"><num>(2)</num><content><p><mod>In sub-paragraph (2), for the words “for the period” to the end there shall be substituted the words <quotedText startQuote="“">, being a premium which—</quotedText><quotedStructure endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><level class="para1"><num>(a)</num><content><p>is due when the sum is payable by the tenant; and</p></content></level><level class="para1"><num>(b)</num><content><p>where the sum is payable in lieu of rent, is in respect of the period in relation to which the sum is payable.</p></content></level></quotedStructure></mod></p></content></subsection><subsection eId="section-142-3"><num>(3)</num><content><p><mod>In sub-paragraph (3), for the words “for the period” to the end there shall be substituted the words <quotedText startQuote="“">, being a premium which—</quotedText><quotedStructure endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><level class="para1"><num>(a)</num><content><p>is due when the sum is payable by the tenant; and</p></content></level><level class="para1"><num>(b)</num><content><p>is in respect of the period from the time when the variation or waiver takes effect to the time when it ceases to have effect.</p></content></level></quotedStructure></mod></p></content></subsection><subsection eId="section-142-4"><num>(4)</num><content><p><mod>For sub-paragraphs (4) to (6) there shall be substituted the following sub-paragraphs—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><subparagraph><num>(4)</num><intro><p>Where under sub-paragraph (2) or (3) above a premium is deemed to have been received by the landlord, that shall not be the occasion of any recomputation of the gain accruing on the receipt of any other premium, and the premium shall be regarded—</p></intro><level class="para1"><num>(a)</num><content><p>in the case of a premium deemed to have been received for the surrender of a lease, as consideration for a separate transaction which is effected when the premium is deemed to be due and consists of the disposal by the landlord of his interest in the lease; and</p></content></level><level class="para1"><num>(b)</num><content><p>in any other case, as consideration for a separate transaction which is effected when the premium is deemed to be due and consists of a further part disposal of the freehold or other asset out of which the lease is granted.</p></content></level></subparagraph><subparagraph><num>(5)</num><intro><p>If under sub-paragraph (2) or (3) above a premium is deemed to have been received by the landlord, otherwise than as consideration for the surrender of the lease, and the landlord is a tenant under a lease the duration of which does not exceed 50 years, this Schedule shall apply—</p></intro><level class="para1"><num>(a)</num><content><p>as if an amount equal to the amount of that premium deemed to have been received had been given by way of consideration for the grant of the part of the sublease covered by the period in respect of which the premium is deemed to have been paid; and</p></content></level><level class="para1"><num>(b)</num><content><p>as if that consideration were expenditure incurred by the sublessee and attributable to that part of the sublease under section 38(1)(b).</p></content></level></subparagraph></quotedStructure></mod></p></content></subsection><subsection eId="section-142-5"><num>(5)</num><content><p>This section has effect as respects sums payable on or after 6th April 1996.</p></content></subsection></section></hcontainer>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-140"><num>140</num><heading>Transfer of company’s assets to investment trust</heading><subsection eId="section-140-1"><num>(1)</num><content><p><mod>In section 101 of the <noteRef href="#m00090" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxation of Chargeable Gains Act 1992 (transfer of company’s assets to investment trust) after subsection (1) there shall be inserted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1A)</num><content><p>Any chargeable gain or allowable loss which, apart from this subsection, would accrue to the company on the sale referred to in subsection (1) above shall be treated as accruing to the company immediately before the end of the last accounting period to end before the beginning of the accounting period mentioned in that subsection.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-140-2"><num>(2)</num><content><p>This section shall have effect as respects accounting periods ending on or after the day appointed under section 199 of the <noteRef href="#m00091" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1994 for the purposes of Chapter III of Part IV of that Act (self-assessment management provisions).</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-140-1"><num>(1)</num><content><p><mod>In section 101 of the <noteRef href="#m00090" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxation of Chargeable Gains Act 1992 (transfer of company’s assets to investment trust) after subsection (1) there shall be inserted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1A)</num><content><p>Any chargeable gain or allowable loss which, apart from this subsection, would accrue to the company on the sale referred to in subsection (1) above shall be treated as accruing to the company immediately before the end of the last accounting period to end before the beginning of the accounting period mentioned in that subsection.</p></content></subsection></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-140-2"><num>(2)</num><content><p>This section shall have effect as respects accounting periods ending on or after the day appointed under section 199 of the <noteRef href="#m00091" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1994 for the purposes of Chapter III of Part IV of that Act (self-assessment management provisions).</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-141"><num>141</num><heading>Roll-over relief</heading><subsection eId="section-141-1"><num>(1)</num><intro><p>In subsection (4) of section 152 of the Taxation of Chargeable Gains Act 1992 (roll-over relief)—</p></intro><level class="para1" eId="section-141-1-a"><num>(a)</num><content><p>after the word “making” there shall be inserted the words “or amending”; and</p></content></level><level class="para1" eId="section-141-1-b"><num>(b)</num><content><p>after the word “assessments”, in the second place where it occurs, there shall be inserted the words “or amendments”.</p></content></level></subsection><subsection eId="section-141-2"><num>(2)</num><content><p><mod>After section 153 of that Act there shall be inserted the following section—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>153A</num><heading>Provisional application of sections 152 and 153</heading><subsection><num>(1)</num><intro><p>This section applies where a person carrying on a trade who for a consideration disposes of, or of his interest in, any assets (“the old assets”) declares, in his return for the chargeable period in which the disposal takes place—</p></intro><level class="para1"><num>(a)</num><content><p>that the whole or any specified part of the consideration will be applied in the acquisition of, or of an interest in, other assets (“the new assets”) which on the acquisition will be taken into use, and used only, for the purposes of the trade;</p></content></level><level class="para1"><num>(b)</num><content><p>that the acquisition will take place as mentioned in subsection (3) of section 152; and</p></content></level><level class="para1"><num>(c)</num><content><p>that the new assets will be within the classes listed in section 155.</p></content></level></subsection><subsection><num>(2)</num><content><p>Until the declaration ceases to have effect, section 152 or, as the case may be, section 153 shall apply as if the acquisition had taken place and the person had made a claim under that section.</p></content></subsection><subsection><num>(3)</num><intro><p>The declaration shall cease to have effect as follows—</p></intro><level class="para1"><num>(a)</num><content><p>if and to the extent that it is withdrawn before the relevant day, or is superseded before that day by a valid claim made under section 152 or 153, on the day on which it is so withdrawn or superseded; and</p></content></level><level class="para1"><num>(b)</num><content><p>if and to the extent that it is not so withdrawn or superseded, on the relevant day.</p></content></level></subsection><subsection><num>(4)</num><intro><p>On the declaration ceasing to have effect in whole or in part, all necessary adjustments—</p></intro><level class="para1"><num>(a)</num><content><p>shall be made by making or amending assessments or by repayment or discharge of tax; and</p></content></level><level class="para1"><num>(b)</num><content><p>shall be so made notwithstanding any limitation on the time within which assessments or amendments may be made.</p></content></level></subsection><subsection><num>(5)</num><intro><p>In this section “the relevant day” means—</p></intro><level class="para1"><num>(a)</num><content><p>in relation to capital gains tax, the third anniversary of the 31st January next following the year of assessment in which the disposal of, or of the interest in, the old assets took place;</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to corporation tax, the fourth anniversary of the last day of the accounting period in which that disposal took place.</p></content></level></subsection><subsection><num>(6)</num><content><p>Subsections (6), (8), (10) and (11) of section 152 shall apply for the purposes of this section as they apply for the purposes of that section.</p></content></subsection></section></quotedStructure></mod></p></content></subsection><subsection eId="section-141-3"><num>(3)</num><intro><p>In section 175 of that Act (replacement of business assets by members of a group)—</p></intro><level class="para1" eId="section-141-3-a"><num>(a)</num><content><p>in subsections (2A) and (2B), after the words “Section 152” there shall be inserted the words “or 153”; and</p></content></level><level class="para1" eId="section-141-3-b"><num>(b)</num><content><p>in subsection (2C), for the words “Section 152 shall not” there shall be substituted the words “Neither section 152 nor section 153 shall”.</p></content></level></subsection><subsection eId="section-141-4"><num>(4)</num><content><p>In section 246 of that Act (time of disposal or acquisition), the words from “or, if earlier” to the end shall cease to have effect.</p></content></subsection><subsection eId="section-141-5"><num>(5)</num><content><p>In subsection (5)(b) of section 247 of that Act (roll-over relief on compulsory acquisition), for the words “subsection (3)” there shall be substituted the words “subsections (3) and (4)”.</p></content></subsection><subsection eId="section-141-6"><num>(6)</num><content><p><mod>After that section there shall be inserted the following section—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>247A</num><heading>Provisional application of section 247</heading><subsection><num>(1)</num><intro><p>This section applies where a person who disposes of land (“the old land”) to an authority exercising or having compulsory powers declares, in his return for the chargeable period in which the disposal takes place—</p></intro><level class="para1"><num>(a)</num><content><p>that the whole or any specified part of the consideration for the disposal will be applied in the acquisition of other land (“the new land”);</p></content></level><level class="para1"><num>(b)</num><content><p>that the acquisition will take place as mentioned in subsection (3) of section 152; and</p></content></level><level class="para1"><num>(c)</num><content><p>that the new land will not be land excluded from section 247(1)(c) by section 248.</p></content></level></subsection><subsection><num>(2)</num><content><p>Until the declaration ceases to have effect, section 247 shall apply as if the acquisition had taken place and the person had made a claim under that section.</p></content></subsection><subsection><num>(3)</num><content><p>For the purposes of this section, subsections (3) to (5) of section 153A shall apply as if the reference to section 152 or 153 were a reference to section 247 and the reference to the old assets were a reference to the old land.</p></content></subsection><subsection><num>(4)</num><content><p>In this section “land” and “authority exercising or having compulsory powers” have the same meaning as in section 247.</p></content></subsection></section></quotedStructure></mod></p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-141-1"><num>(1)</num><intro><p>In subsection (4) of section 152 of the Taxation of Chargeable Gains Act 1992 (roll-over relief)—</p></intro><level class="para1" eId="section-141-1-a"><num>(a)</num><content><p>after the word “making” there shall be inserted the words “or amending”; and</p></content></level><level class="para1" eId="section-141-1-b"><num>(b)</num><content><p>after the word “assessments”, in the second place where it occurs, there shall be inserted the words “or amendments”.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-141-1-a"><num>(a)</num><content><p>after the word “making” there shall be inserted the words “or amending”; and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-141-1-b"><num>(b)</num><content><p>after the word “assessments”, in the second place where it occurs, there shall be inserted the words “or amendments”.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-141-2"><num>(2)</num><content><p><mod>After section 153 of that Act there shall be inserted the following section—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>153A</num><heading>Provisional application of sections 152 and 153</heading><subsection><num>(1)</num><intro><p>This section applies where a person carrying on a trade who for a consideration disposes of, or of his interest in, any assets (“the old assets”) declares, in his return for the chargeable period in which the disposal takes place—</p></intro><level class="para1"><num>(a)</num><content><p>that the whole or any specified part of the consideration will be applied in the acquisition of, or of an interest in, other assets (“the new assets”) which on the acquisition will be taken into use, and used only, for the purposes of the trade;</p></content></level><level class="para1"><num>(b)</num><content><p>that the acquisition will take place as mentioned in subsection (3) of section 152; and</p></content></level><level class="para1"><num>(c)</num><content><p>that the new assets will be within the classes listed in section 155.</p></content></level></subsection><subsection><num>(2)</num><content><p>Until the declaration ceases to have effect, section 152 or, as the case may be, section 153 shall apply as if the acquisition had taken place and the person had made a claim under that section.</p></content></subsection><subsection><num>(3)</num><intro><p>The declaration shall cease to have effect as follows—</p></intro><level class="para1"><num>(a)</num><content><p>if and to the extent that it is withdrawn before the relevant day, or is superseded before that day by a valid claim made under section 152 or 153, on the day on which it is so withdrawn or superseded; and</p></content></level><level class="para1"><num>(b)</num><content><p>if and to the extent that it is not so withdrawn or superseded, on the relevant day.</p></content></level></subsection><subsection><num>(4)</num><intro><p>On the declaration ceasing to have effect in whole or in part, all necessary adjustments—</p></intro><level class="para1"><num>(a)</num><content><p>shall be made by making or amending assessments or by repayment or discharge of tax; and</p></content></level><level class="para1"><num>(b)</num><content><p>shall be so made notwithstanding any limitation on the time within which assessments or amendments may be made.</p></content></level></subsection><subsection><num>(5)</num><intro><p>In this section “the relevant day” means—</p></intro><level class="para1"><num>(a)</num><content><p>in relation to capital gains tax, the third anniversary of the 31st January next following the year of assessment in which the disposal of, or of the interest in, the old assets took place;</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to corporation tax, the fourth anniversary of the last day of the accounting period in which that disposal took place.</p></content></level></subsection><subsection><num>(6)</num><content><p>Subsections (6), (8), (10) and (11) of section 152 shall apply for the purposes of this section as they apply for the purposes of that section.</p></content></subsection></section></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-141-3"><num>(3)</num><intro><p>In section 175 of that Act (replacement of business assets by members of a group)—</p></intro><level class="para1" eId="section-141-3-a"><num>(a)</num><content><p>in subsections (2A) and (2B), after the words “Section 152” there shall be inserted the words “or 153”; and</p></content></level><level class="para1" eId="section-141-3-b"><num>(b)</num><content><p>in subsection (2C), for the words “Section 152 shall not” there shall be substituted the words “Neither section 152 nor section 153 shall”.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-141-3-a"><num>(a)</num><content><p>in subsections (2A) and (2B), after the words “Section 152” there shall be inserted the words “or 153”; and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-141-3-b"><num>(b)</num><content><p>in subsection (2C), for the words “Section 152 shall not” there shall be substituted the words “Neither section 152 nor section 153 shall”.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-141-4"><num>(4)</num><content><p>In section 246 of that Act (time of disposal or acquisition), the words from “or, if earlier” to the end shall cease to have effect.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-141-5"><num>(5)</num><content><p>In subsection (5)(b) of section 247 of that Act (roll-over relief on compulsory acquisition), for the words “subsection (3)” there shall be substituted the words “subsections (3) and (4)”.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-141-6"><num>(6)</num><content><p><mod>After that section there shall be inserted the following section—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>247A</num><heading>Provisional application of section 247</heading><subsection><num>(1)</num><intro><p>This section applies where a person who disposes of land (“the old land”) to an authority exercising or having compulsory powers declares, in his return for the chargeable period in which the disposal takes place—</p></intro><level class="para1"><num>(a)</num><content><p>that the whole or any specified part of the consideration for the disposal will be applied in the acquisition of other land (“the new land”);</p></content></level><level class="para1"><num>(b)</num><content><p>that the acquisition will take place as mentioned in subsection (3) of section 152; and</p></content></level><level class="para1"><num>(c)</num><content><p>that the new land will not be land excluded from section 247(1)(c) by section 248.</p></content></level></subsection><subsection><num>(2)</num><content><p>Until the declaration ceases to have effect, section 247 shall apply as if the acquisition had taken place and the person had made a claim under that section.</p></content></subsection><subsection><num>(3)</num><content><p>For the purposes of this section, subsections (3) to (5) of section 153A shall apply as if the reference to section 152 or 153 were a reference to section 247 and the reference to the old assets were a reference to the old land.</p></content></subsection><subsection><num>(4)</num><content><p>In this section “land” and “authority exercising or having compulsory powers” have the same meaning as in section 247.</p></content></subsection></section></quotedStructure></mod></p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-142"><num>142</num><heading>Premiums for leases</heading><subsection eId="section-142-1"><num>(1)</num><content><p>Paragraph 3 of Schedule 8 to the <noteRef href="#m00092" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxation of Chargeable Gains Act 1992 (premiums for leases) shall be amended as follows.</p></content></subsection><subsection eId="section-142-2"><num>(2)</num><content><p><mod>In sub-paragraph (2), for the words “for the period” to the end there shall be substituted the words <quotedText startQuote="“">, being a premium which—</quotedText><quotedStructure endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><level class="para1"><num>(a)</num><content><p>is due when the sum is payable by the tenant; and</p></content></level><level class="para1"><num>(b)</num><content><p>where the sum is payable in lieu of rent, is in respect of the period in relation to which the sum is payable.</p></content></level></quotedStructure></mod></p></content></subsection><subsection eId="section-142-3"><num>(3)</num><content><p><mod>In sub-paragraph (3), for the words “for the period” to the end there shall be substituted the words <quotedText startQuote="“">, being a premium which—</quotedText><quotedStructure endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><level class="para1"><num>(a)</num><content><p>is due when the sum is payable by the tenant; and</p></content></level><level class="para1"><num>(b)</num><content><p>is in respect of the period from the time when the variation or waiver takes effect to the time when it ceases to have effect.</p></content></level></quotedStructure></mod></p></content></subsection><subsection eId="section-142-4"><num>(4)</num><content><p><mod>For sub-paragraphs (4) to (6) there shall be substituted the following sub-paragraphs—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><subparagraph><num>(4)</num><intro><p>Where under sub-paragraph (2) or (3) above a premium is deemed to have been received by the landlord, that shall not be the occasion of any recomputation of the gain accruing on the receipt of any other premium, and the premium shall be regarded—</p></intro><level class="para1"><num>(a)</num><content><p>in the case of a premium deemed to have been received for the surrender of a lease, as consideration for a separate transaction which is effected when the premium is deemed to be due and consists of the disposal by the landlord of his interest in the lease; and</p></content></level><level class="para1"><num>(b)</num><content><p>in any other case, as consideration for a separate transaction which is effected when the premium is deemed to be due and consists of a further part disposal of the freehold or other asset out of which the lease is granted.</p></content></level></subparagraph><subparagraph><num>(5)</num><intro><p>If under sub-paragraph (2) or (3) above a premium is deemed to have been received by the landlord, otherwise than as consideration for the surrender of the lease, and the landlord is a tenant under a lease the duration of which does not exceed 50 years, this Schedule shall apply—</p></intro><level class="para1"><num>(a)</num><content><p>as if an amount equal to the amount of that premium deemed to have been received had been given by way of consideration for the grant of the part of the sublease covered by the period in respect of which the premium is deemed to have been paid; and</p></content></level><level class="para1"><num>(b)</num><content><p>as if that consideration were expenditure incurred by the sublessee and attributable to that part of the sublease under section 38(1)(b).</p></content></level></subparagraph></quotedStructure></mod></p></content></subsection><subsection eId="section-142-5"><num>(5)</num><content><p>This section has effect as respects sums payable on or after 6th April 1996.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-142-1"><num>(1)</num><content><p>Paragraph 3 of Schedule 8 to the <noteRef href="#m00092" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxation of Chargeable Gains Act 1992 (premiums for leases) shall be amended as follows.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-142-2"><num>(2)</num><content><p><mod>In sub-paragraph (2), for the words “for the period” to the end there shall be substituted the words <quotedText startQuote="“">, being a premium which—</quotedText><quotedStructure endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><level class="para1"><num>(a)</num><content><p>is due when the sum is payable by the tenant; and</p></content></level><level class="para1"><num>(b)</num><content><p>where the sum is payable in lieu of rent, is in respect of the period in relation to which the sum is payable.</p></content></level></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-142-3"><num>(3)</num><content><p><mod>In sub-paragraph (3), for the words “for the period” to the end there shall be substituted the words <quotedText startQuote="“">, being a premium which—</quotedText><quotedStructure endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><level class="para1"><num>(a)</num><content><p>is due when the sum is payable by the tenant; and</p></content></level><level class="para1"><num>(b)</num><content><p>is in respect of the period from the time when the variation or waiver takes effect to the time when it ceases to have effect.</p></content></level></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-142-4"><num>(4)</num><content><p><mod>For sub-paragraphs (4) to (6) there shall be substituted the following sub-paragraphs—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><subparagraph><num>(4)</num><intro><p>Where under sub-paragraph (2) or (3) above a premium is deemed to have been received by the landlord, that shall not be the occasion of any recomputation of the gain accruing on the receipt of any other premium, and the premium shall be regarded—</p></intro><level class="para1"><num>(a)</num><content><p>in the case of a premium deemed to have been received for the surrender of a lease, as consideration for a separate transaction which is effected when the premium is deemed to be due and consists of the disposal by the landlord of his interest in the lease; and</p></content></level><level class="para1"><num>(b)</num><content><p>in any other case, as consideration for a separate transaction which is effected when the premium is deemed to be due and consists of a further part disposal of the freehold or other asset out of which the lease is granted.</p></content></level></subparagraph><subparagraph><num>(5)</num><intro><p>If under sub-paragraph (2) or (3) above a premium is deemed to have been received by the landlord, otherwise than as consideration for the surrender of the lease, and the landlord is a tenant under a lease the duration of which does not exceed 50 years, this Schedule shall apply—</p></intro><level class="para1"><num>(a)</num><content><p>as if an amount equal to the amount of that premium deemed to have been received had been given by way of consideration for the grant of the part of the sublease covered by the period in respect of which the premium is deemed to have been paid; and</p></content></level><level class="para1"><num>(b)</num><content><p>as if that consideration were expenditure incurred by the sublessee and attributable to that part of the sublease under section 38(1)(b).</p></content></level></subparagraph></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-142-5"><num>(5)</num><content><p>This section has effect as respects sums payable on or after 6th April 1996.</p></content></subsection>
<chapter xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" eId="part-IV-chapter-VI"><num>Chapter VI</num><heading>Miscellaneous provisions</heading><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-IV-chapter-VI-crossheading-reliefs"><heading>Reliefs</heading><section eId="section-143"><num>143</num><heading>Annual payments under certain insurance policies</heading><subsection eId="section-143-1"><num>(1)</num><content><p><mod>After section 580 of the Taxes Act 1988 there shall be inserted the following sections—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>580A</num><heading>Relief from tax on annual payments under certain insurance policies</heading><subsection><num>(1)</num><intro><p>This section applies (subject to subsection (7)(b) below) in the case of any such annual payment under an insurance policy as—</p></intro><level class="para1"><num>(a)</num><content><p>apart from this section, would be brought into charge under Case III of Schedule D; or</p></content></level><level class="para1"><num>(b)</num><content><p>is equivalent to a description of payment brought into charge under Case III of that Schedule but (apart from this section) would be brought into charge under Case V of that Schedule.</p></content></level></subsection><subsection><num>(2)</num><intro><p>Subject to the following provisions of this section, the annual payment shall be exempt from income tax if—</p></intro><level class="para1"><num>(a)</num><content><p>it constitutes a benefit provided under so much of an insurance policy as provides insurance against a qualifying risk;</p></content></level><level class="para1"><num>(b)</num><content><p>the provisions of the policy by which insurance is provided against that risk are self-contained (within the meaning of section 580B);</p></content></level><level class="para1"><num>(c)</num><content><p>the only annual payments relating to that risk for which provision is made by that policy are payments in respect of a period throughout which the relevant conditions of payment are satisfied; and</p></content></level><level class="para1"><num>(d)</num><content><p>at all times while the policy has contained provisions relating to that risk, those provisions have been of a qualifying type.</p></content></level></subsection><subsection><num>(3)</num><intro><p>For the purposes of this section and section 580B a qualifying risk is any risk falling within either of the following descriptions, that is to say—</p></intro><level class="para1"><num>(a)</num><content><p>a risk that the insured will (or will in any specified way) become subject to, or to any deterioration in a condition resulting from, any physical or mental illness, disability, infirmity or defect;</p></content></level><level class="para1"><num>(b)</num><content><p>a risk that circumstances will arise as a result of which the insured will cease to be employed or will cease to carry on any trade, profession or vocation carried on by him.</p></content></level></subsection><subsection><num>(4)</num><intro><p>For the purposes of this section the relevant conditions of payment are satisfied in relation to payments under an insurance policy for so long as any of the following continues, that is to say—</p></intro><level class="para1"><num>(a)</num><content><p>an illness, disability, infirmity or defect which is insured against by the relevant part of the policy, and any related period of convalescence or rehabilitation;</p></content></level><level class="para1"><num>(b)</num><content><p>any period during which the insured is, in circumstances insured against by the relevant part of the policy, either unemployed or not carrying on a trade, profession or vocation;</p></content></level><level class="para1"><num>(c)</num><content><p>any period during which the income of the insured (apart from any benefits under the policy) is less, in circumstances so insured against, than it would have been if those circumstances had not arisen; or</p></content></level><level class="para1"><num>(d)</num><content><p>any period immediately following the end, as a result of the death of the insured, of any period falling within any of paragraphs (a) to (c) above;</p></content></level><wrapUp><p>and in this subsection “the relevant part of the policy” means so much of it as relates to insurance against one or more risks mentioned in subsection (3) above.</p></wrapUp></subsection><subsection><num>(5)</num><content><p>For the purposes of subsection (2)(d) above provisions relating to a qualifying risk are of a qualifying type if they are of such a description that their inclusion in any policy of insurance containing provisions relating only to a comparable risk would (apart from any reinsurance) involve the possibility for the insurer that a significant loss might be sustained on the amounts payable by way of premiums in respect of the risk, taken together with any return on the investment of those amounts.</p></content></subsection><subsection><num>(6)</num><intro><p>An annual payment shall not be exempt from income tax under this section if it is paid in accordance with a contract the whole or any part of any premiums under which have qualified for relief for the purposes of income tax by being deductible either—</p></intro><level class="para1"><num>(a)</num><content><p>in the computation of the insured’s income from any source; or</p></content></level><level class="para1"><num>(b)</num><content><p>from the insured’s income.</p></content></level></subsection><subsection><num>(7)</num><intro><p>Where a person takes out any insurance policy wholly or partly for the benefit of another and that other person pays or contributes to the payment of the premiums under that policy, then to the extent only that the benefits under the policy are attributable, on a just and reasonable apportionment, to the payments or contributions made by that other person—</p></intro><level class="para1"><num>(a)</num><content><p>that other person shall be treated for the purposes of this section and section 580B as the insured in relation to that policy;</p></content></level><level class="para1"><num>(b)</num><content><p>this section shall have effect in relation to those benefits, so far as comprised in payments to that other person or his spouse, as if the reference in subsection (1)(a) above to Case III of Schedule D included a reference to Schedule E; and</p></content></level><level class="para1"><num>(c)</num><content><p>subsection (6) above shall have effect as if the references to the premiums under the policy were references only to the payments or contributions made by that other person in respect of the premiums.</p></content></level></subsection><subsection><num>(8)</num><intro><p>Where—</p></intro><level class="para1"><num>(a)</num><content><p>payments are made to or in respect of any person (“the beneficiary”) under any insurance policy (“the individual policy”),</p></content></level><level class="para1"><num>(b)</num><content><p>the rights under the individual policy in accordance with which the payments are made superseded, with effect from the time when another policy ((“the employer’s policy”) ceased to apply to that person, any rights conferred under that other policy,</p></content></level><level class="para1"><num>(c)</num><content><p>the employer’s policy is or was a policy entered into wholly or partly for the benefit of persons holding office or employment under any person (“the employer”) against risks falling within subsection (3)(a) above,</p></content></level><level class="para1"><num>(d)</num><content><p>the individual policy is one entered into in pursuance of, or in accordance with, any provisions contained in the employer’s policy, and</p></content></level><level class="para1"><num>(e)</num><content><p>the beneficiary has ceased to hold office or employment under the employer as a consequence of the occurrence of anything insured against by so much of the employer’s policy as related to risks falling within subsection (3)(a) above,</p></content></level><wrapUp><p>this section shall have effect as if the employer’s policy and the individual policy were one policy.</p></wrapUp></subsection><subsection><num>(9)</num><intro><p>In the preceding provisions of this section references to the insured, in relation to any insurance policy, include references to—</p></intro><level class="para1"><num>(a)</num><content><p>the insured’s spouse; and</p></content></level><level class="para1"><num>(b)</num><content><p>in the case of a policy entered into wholly or partly for purposes connected with the meeting of liabilities arising from an actual or proposed transaction identified in the policy, any person on whom any of those liabilities will fall jointly with the insured or his spouse.</p></content></level></subsection><subsection><num>(10)</num><content><p>References in this section and section 580B to insurance against a risk include references to any insurance for the provision (otherwise than by way of indemnity) of any benefits against that risk, and references to what is insured against by a policy shall be construed accordingly.</p></content></subsection></section><section><num>580B</num><heading>Meaning of “self-contained”
for the purposes of s.580A</heading><subsection><num>(1)</num><content><p>For the purposes of section 580A the provisions of an insurance policy by which insurance is provided against a qualifying risk are self-contained unless subsection (2) or (3) below applies to the provisions of that policy so far as they relate to that risk; but, in determining whether either of those subsections so applies, regard shall be had to all the persons for whose benefit insurance is provided by that policy against that risk.</p></content></subsection><subsection><num>(2)</num><intro><p>This subsection applies to the provisions of an insurance policy so far as they relate to a qualifying risk if—</p></intro><level class="para1"><num>(a)</num><content><p>that insurance policy contains provision for the payment of benefits other than those relating to that risk;</p></content></level><level class="para1"><num>(b)</num><content><p>the terms of the policy so far as they relate to that risk, or the manner in which effect is given to those terms, would have been significantly different if the only benefits under the policy had been those relating to that risk; and</p></content></level><level class="para1"><num>(c)</num><content><p>that difference is not one relating exclusively to the fact that the amount of benefits receivable by or in respect of any person under the policy is applied for reducing the amount of other benefits payable to or in respect of that person under the policy.</p></content></level></subsection><subsection><num>(3)</num><intro><p>This subsection applies to the provisions of an insurance policy (“the relevant policy”) so far as they relate to a qualifying risk if—</p></intro><level class="para1"><num>(a)</num><content><p>the insured under that policy is, or has been, the insured under one or more other policies;</p></content></level><level class="para1"><num>(b)</num><content><p>that other policy, or each of those other policies, is in force or has been in force at a time when the relevant policy was in force or at the time immediately before the relevant policy was entered into;</p></content></level><level class="para1"><num>(c)</num><content><p>the terms of the relevant policy so far as relating to that risk, or the manner in which effect is given to those terms, would have been significantly different if the other policy or policies had not been entered into; and</p></content></level><level class="para1"><num>(d)</num><content><p>that difference is not one relating exclusively to the fact that the amount of benefits receivable by or in respect of any person under the other policy, or any of the other policies, is applied for reducing the amount of benefits payable to or in respect of that person under the relevant policy.</p></content></level></subsection><subsection><num>(4)</num><content><p>In subsections (2)(b) and (3)(c) above the references to the terms of a policy so far as they relate to a risk include references to the terms fixing any amount payable by way of premium or otherwise in respect of insurance against that risk.</p></content></subsection></section></quotedStructure></mod></p></content></subsection><subsection eId="section-143-2"><num>(2)</num><intro><p>This section has effect for the year 1996-97 and subsequent years of assessment in relation to—</p></intro><level class="para1" eId="section-143-2-a"><num>(a)</num><content><p>any payment which under the policy in question falls to be paid at any time on or after 6th April 1996; and</p></content></level><level class="para1" eId="section-143-2-b"><num>(b)</num><content><p>any payment not falling within paragraph (a) above in relation to which the conditions mentioned in subsection (3)(a) and (b) below are satisfied.</p></content></level></subsection><subsection eId="section-143-3"><num>(3)</num><intro><p>This section shall also be deemed to have had effect for earlier years of assessment in relation to any payment in relation to which the following conditions are satisfied, that is to say—</p></intro><level class="para1" eId="section-143-3-a"><num>(a)</num><content><p>the payment was made under a policy in relation to which the requirements of subsection (4) below were fulfilled; and</p></content></level><level class="para1" eId="section-143-3-b"><num>(b)</num><content><p>the policy in question provided for the right to annual payments under the policy to cease when all the liabilities in question were discharged.</p></content></level></subsection><subsection eId="section-143-4"><num>(4)</num><intro><p>The requirements of this subsection are fulfilled in relation to any policy if—</p></intro><level class="para1" eId="section-143-4-a"><num>(a)</num><content><p>the only or main purpose of the insurance under the policy was to secure that the insured would be able to meet (in whole or in part) liabilities that would or might arise from any transaction;</p></content></level><level class="para1" eId="section-143-4-b"><num>(b)</num><content><p>the policy expressly identified the transaction or, as the case may be, all the transactions (whether actual or proposed) by reference to which the insurance was taken out; and</p></content></level><level class="para1" eId="section-143-4-c"><num>(c)</num><content><p>none of the transactions which would or might give rise to the liabilities mentioned in paragraph (a) above could be one entered into after any of the circumstances insured against arose.</p></content></level></subsection><subsection eId="section-143-5"><num>(5)</num><content><p>In subsection (4) above “transaction” includes any arrangements for the provision of credit or for the supply of services to residential premises.</p></content></subsection></section><section eId="section-144"><num>144</num><heading>Vocational training</heading><subsection eId="section-144-1"><num>(1)</num><content><p>Section 32 of the <noteRef href="#m00093" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1991 (vocational training relief) shall be amended in accordance with the following provisions of this section.</p></content></subsection><subsection eId="section-144-2"><num>(2)</num><content><p><mod>In subsection (1) (application of section) for paragraph (ca) (individual has attained school leaving age etc at time of paying for the course) there shall be substituted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(ca)</num><intro><p>at the time the payment is made, the individual—</p></intro><level class="para2"><num>(i)</num><content><p>in a case where the qualifying course of vocational training is such a course by virtue only of paragraph (b) of subsection (10) below, has attained the age of thirty, or</p></content></level><level class="para2"><num>(ii)</num><content><p>in any other case, has attained school-leaving age and, if under the age of nineteen, is not a person who is being provided with full-time education at a school,</p></content></level></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-144-3"><num>(3)</num><content><p><mod>For subsection (10) (meaning of “qualifying course of vocational training”) there shall be substituted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(10)</num><intro><p>In this section “qualifying course of vocational training” means—</p></intro><level class="para1"><num>(a)</num><intro><p>any programme of activity capable of counting towards a qualification—</p></intro><level class="para2"><num>(i)</num><content><p>accredited as a National Vocational Qualification by the National Council for Vocational Qualifications; or</p></content></level><level class="para2"><num>(ii)</num><content><p>accredited as a Scottish Vocational Qualification by the Scottish Vocational Education Council; or</p></content></level></level><level class="para1"><num>(b)</num><intro><p>any course of training which—</p></intro><level class="para2"><num>(i)</num><content><p>satisfies the conditions set out in the paragraphs of section 589(1) of the Taxes Act 1988 (qualifying courses of training etc),</p></content></level><level class="para2"><num>(ii)</num><content><p>requires participation on a full-time or substantially full-time basis, and</p></content></level><level class="para2"><num>(iii)</num><content><p>extends for a period which consists of or includes four consecutive weeks,</p></content></level><wrapUp><p>but treating any time devoted to study in connection with the course as time devoted to the practical application of skills or knowledge.</p></wrapUp></level></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-144-4"><num>(4)</num><content><p>This section applies to payments made on or after 6th May 1996.</p></content></subsection></section><section eId="section-145"><num>145</num><heading>Personal reliefs for non-resident EEA nationals</heading><subsection eId="section-145-1"><num>(1)</num><content><p>In section 278(2)(a) of the Taxes Act 1988 (exclusion of non-residents from entitlement to personal reliefs not to apply to Commonwealth citizens or citizens of the Republic of Ireland), for “a citizen of the Republic of Ireland” there shall be substituted “an EEA national”.</p></content></subsection><subsection eId="section-145-2"><num>(2)</num><content><p><mod>After subsection (8) of that section (claims to be made to the Board) there shall be added the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(9)</num><content><p>In this section “EEA national” means a national of any State, other than the United Kingdom, which is a Contracting Party to the Agreement on the European Economic Area signed at Oporto on 2nd May 1992, as adjusted by the Protocol signed at Brussels on 17th March 1993.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-145-3"><num>(3)</num><content><p>This section has effect for the year 1996-97 and subsequent years of assessment.</p></content></subsection></section><section eId="section-146"><num>146</num><heading>Exemptions for charities</heading><subsection eId="section-146-1"><num>(1)</num><content><p>Section 505(1) of the Taxes Act 1988 (exemptions for charities) shall be amended as follows.</p></content></subsection><subsection eId="section-146-2"><num>(2)</num><content><p><mod>For paragraph (a) (rents etc.) there shall be substituted the following paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(a)</num><intro><p>exemption from tax under Schedules A and D in respect of any profits or gains arising in respect of rents or other receipts from an estate, interest or right in or over any land (whether situated in the United Kingdom or elsewhere) to the extent that the profits or gains—</p></intro><level class="para2"><num>(i)</num><content><p>arise in respect of rents or receipts from an estate, interest or right vested in any person for charitable purposes; and</p></content></level><level class="para2"><num>(ii)</num><content><p>are applied to charitable purposes only;</p></content></level></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-146-3"><num>(3)</num><content><p><mod>For sub-paragraph (ii) of paragraph (c) (yearly interest and annual payments) there shall be substituted the following sub-paragraphs—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para2"><num>(ii)</num><content><p>from tax under Case III of Schedule D,</p></content></level><level class="para2"><num>(iia)</num><content><p>from tax under Case IV or V of Schedule D in respect of income equivalent to income chargeable under Case III of that Schedule but arising from securities or other possessions outside the United Kingdom,</p></content></level><level class="para2"><num>(iib)</num><content><p>from tax under Case V of Schedule D in respect of income consisting in any such dividend or other distribution of a company not resident in the United Kingdom as would be chargeable to tax under Schedule F if the company were so resident, and</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-146-4"><num>(4)</num><content><p>In paragraph (e) (trading profits), after “by a charity” there shall be inserted “(whether in the United Kingdom or elsewhere)”.</p></content></subsection><subsection eId="section-146-5"><num>(5)</num><intro><p>This section has effect—</p></intro><level class="para1" eId="section-146-5-a"><num>(a)</num><content><p>for the purposes of income tax, for the year 1996-97 and subsequent years of assessment; and</p></content></level><level class="para1" eId="section-146-5-b"><num>(b)</num><content><p>for the purposes of corporation tax, in relation to accounting periods ending after 31st March 1996.</p></content></level></subsection></section><section eId="section-147"><num>147</num><heading>Withdrawal of relief for Class 4 contributions</heading><subsection eId="section-147-1"><num>(1)</num><content><p>In section 617 of the Taxes Act 1988 (social security benefits and contributions), subsection (5) (relief for Class 4 contributions) shall cease to have effect.</p></content></subsection><subsection eId="section-147-2"><num>(2)</num><intro><p>In consequence of the provision made by subsection (1) above, in paragraph 3(2) of Schedule 2 to—</p></intro><level class="para1" eId="section-147-2-a"><num>(a)</num><content><p>the <noteRef href="#m00094" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Social Security Contributions and Benefits Act 1992, and</p></content></level><level class="para1" eId="section-147-2-b"><num>(b)</num><content><p>the <noteRef href="#m00095" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Social Security Contributions and Benefits (Northern Ireland) Act 1992,</p></content></level><wrapUp><p>the words “(e) section 617(5) (relief for Class 4 contributions);” shall be omitted.</p></wrapUp></subsection><subsection eId="section-147-3"><num>(3)</num><content><p>This section shall have effect in relation to the year 1996-97 and subsequent years of assessment.</p></content></subsection></section><section eId="section-148"><num>148</num><heading>Mis-sold personal pensions etc</heading><subsection eId="section-148-1"><num>(1)</num><content><p>Income tax shall not be chargeable on any payment falling within subsection (3) or (5) below.</p></content></subsection><subsection eId="section-148-2"><num>(2)</num><content><p>Receipt of a payment falling within subsection (3) below shall not be regarded for the purposes of capital gains tax as the disposal of an asset.</p></content></subsection><subsection eId="section-148-3"><num>(3)</num><intro><p>A payment falls within this subsection if it is a capital sum by way of compensation for loss suffered, or reasonably likely to be suffered, by a person in a case where that person, or some other person, acting in reliance on bad investment advice at least some of which was given during the period beginning with 29th April 1988 and ending with 30th June 1994,—</p></intro><level class="para1" eId="section-148-3-a"><num>(a)</num><content><p>has, while eligible, or reasonably likely to become eligible, to be a member of an occupational pension scheme, instead become a member of a personal pension scheme or entered into a retirement annuity contract;</p></content></level><level class="para1" eId="section-148-3-b"><num>(b)</num><content><p>has ceased to be a member of, or to pay contributions to, an occupational pension scheme and has instead become a member of a personal pension scheme or entered into a retirement annuity contract;</p></content></level><level class="para1" eId="section-148-3-c"><num>(c)</num><content><p>has transferred to a personal pension scheme accrued rights of his under an occupational pension scheme; or</p></content></level><level class="para1" eId="section-148-3-d"><num>(d)</num><content><p>has ceased to be a member of an occupational pension scheme and has instead (by virtue of such a provision as is mentioned in section 591(2)(g) of the Taxes Act 1988) entered into arrangements for securing relevant benefits by means of an annuity contract.</p></content></level></subsection><subsection eId="section-148-4"><num>(4)</num><content><p>A payment chargeable to income tax apart from subsection (1) above may nevertheless be regarded as a capital sum for the purpose of determining whether it falls within subsection (3) above.</p></content></subsection><subsection eId="section-148-5"><num>(5)</num><intro><p>A payment falls within this subsection if and to the extent that it is a payment of interest, on the whole or any part of a capital sum such as is mentioned in subsection (3) above, for a period ending on or before the earliest date on which a determination (whether or not subsequently varied on an appeal or in any other proceedings) of the amount of the particular capital sum in question is made, whether by agreement or by a decision of—</p></intro><level class="para1" eId="section-148-5-a"><num>(a)</num><content><p>a court, tribunal or commissioner,</p></content></level><level class="para1" eId="section-148-5-b"><num>(b)</num><content><p>an arbitrator or (in Scotland) arbiter, or</p></content></level><level class="para1" eId="section-148-5-c"><num>(c)</num><content><p>any other person appointed for the purpose.</p></content></level></subsection><subsection eId="section-148-6"><num>(6)</num><intro><p>In this section—</p></intro><hcontainer name="definition"><intro><p>“bad investment advice” means investment advice in respect of which an action against the person who gave it has been, or may be, brought—</p></intro><level class="para1"><num>(a)</num><content><p>in or for negligence;</p></content></level><level class="para1"><num>(b)</num><content><p>for breach of contract;</p></content></level><level class="para1"><num>(c)</num><content><p>by reason of a breach of a fiduciary obligation; or</p></content></level><level class="para1"><num>(d)</num><content><p>by reason of a contravention which is actionable under section 62 of the <noteRef href="#m00096" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Financial Services Act 1986;</p></content></level></hcontainer><hcontainer name="definition"><content><p>“investment advice” means advice such as is mentioned in paragraph 15 of Schedule 1 to the <noteRef href="#m00097" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Financial Services Act 1986;</p></content></hcontainer><hcontainer name="definition"><intro><p>“occupational pension scheme” means—</p></intro><level class="para1"><num>(a)</num><content><p>a scheme approved, or being considered for approval, under Chapter I of Part XIV of the Taxes Act 1988 (retirement benefit schemes);</p></content></level><level class="para1"><num>(b)</num><content><p>a relevant statutory scheme, as defined in section 611A(1) of that Act; or</p></content></level><level class="para1"><num>(c)</num><content><p>a fund to which section 608 of that Act applies (superannuation funds approved before 6th April 1980 etc);</p></content></level></hcontainer><hcontainer name="definition"><content><p>“personal pension scheme” has the meaning given by section 630(1) of the Taxes Act 1988;</p></content></hcontainer><hcontainer name="definition"><content><p>“relevant benefits” has the meaning given by section 612(1) of the Taxes Act 1988;</p></content></hcontainer><hcontainer name="definition"><content><p>“retirement annuity contract” means a contract made before 1st July 1988 and approved by the Board under or by virtue of any provision of Chapter III of Part XIV of the Taxes Act 1988.</p></content></hcontainer></subsection><subsection eId="section-148-7"><num>(7)</num><content><p>This section shall have effect, and be taken always to have had effect, in relation to any payment falling within subsection (3) or (5) above, whether made before or after the passing of this Act.</p></content></subsection></section><section eId="section-149"><num>149</num><heading>Annual payments in residuary cases</heading><subsection eId="section-149-1"><num>(1)</num><intro><p>Section 347A of the Taxes Act 1988 (annual payments not a charge on the income of a payer) shall apply to any payment made on or after 6th April 1996—</p></intro><level class="para1" eId="section-149-1-a"><num>(a)</num><content><p>in pursuance of any obligation which falls within section 36(4)(a) of the <noteRef href="#m00098" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1988 (existing obligations under certain court orders), and</p></content></level><level class="para1" eId="section-149-1-b"><num>(b)</num><content><p>for the benefit, maintenance or education of a person (whether or not the person to whom the payment is made) who attained the age of 21 before 6th April 1994,</p></content></level><wrapUp><p>as if that obligation were not an existing obligation within the definition contained in section 36(4) of the Finance Act 1988.</p></wrapUp></subsection><subsection eId="section-149-2"><num>(2)</num><content><p>Subsection (1) above does not apply to any payment to which section 38 of the Finance Act 1988 (treatment of certain maintenance payments under existing obligations) applies.</p></content></subsection></section><section eId="section-150"><num>150</num><heading>Income tax exemption for periodical payments of damages and compensation for personal injury</heading><subsection eId="section-150-1"><num>(1)</num><content><p>The sections set out in Schedule 26 to this Act shall be inserted after section 329 of the <noteRef href="#m00099" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxes Act 1988.</p></content></subsection><subsection eId="section-150-2"><num>(2)</num><content><p>The first of those sections supersedes sections 329A and 329B inserted by the Finance Act 1995 and applies to payments received after the passing of this Act irrespective of when the agreement or order referred to in that section was made or took effect.</p></content></subsection><subsection eId="section-150-3"><num>(3)</num><content><p>Subsections (1) and (2) of the second of those sections supersede section 329C inserted by the <noteRef href="#m00100" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Criminal Injuries Compensation Act 1995 and apply to payments received after the passing of that Act.</p></content></subsection><subsection eId="section-150-4"><num>(4)</num><content><p>The repeal of sections 329A and 329B does not affect the operation of those sections in relation to payments received before the passing of this Act.</p></content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-IV-chapter-VI-crossheading-taxation-of-benefits"><heading>Taxation of benefits</heading><section eId="section-151"><num>151</num><heading>Benefits under pilot schemes</heading><subsection eId="section-151-1"><num>(1)</num><intro><p>The Treasury may by order make provision for the Income Tax Acts to have effect in relation to any amount of benefit payable by virtue of a Government pilot scheme as if it was, as they think fit, either—</p></intro><level class="para1" eId="section-151-1-a"><num>(a)</num><content><p>wholly or partly exempt from income tax and, accordingly, to be disregarded in computing the amount of any receipts brought into account for income tax purposes; or</p></content></level><level class="para1" eId="section-151-1-b"><num>(b)</num><content><p>to the extent specified in the order, to be brought into account for the purposes of income tax as income of a description so specified or as a receipt of a description so specified.</p></content></level></subsection><subsection eId="section-151-2"><num>(2)</num><content><p>The Treasury may by order provide for any amount of benefit payable by virtue of a Government pilot scheme to be left out of account, to the extent specified in the order, in the determination for the purposes of section 153 of the <noteRef href="#m00101" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Capital Allowances Act 1990 (subsidies etc.) of how far any expenditure has been or is to be met directly or indirectly by the Crown or by an authority or person other than the person actually incurring it.</p></content></subsection><subsection eId="section-151-3"><num>(3)</num><intro><p>In this section “Government pilot scheme” means any arrangements (whether or not contained in a scheme) which—</p></intro><level class="para1" eId="section-151-3-a"><num>(a)</num><content><p>are made, under any enactment or otherwise, by the Secretary of State or any Northern Ireland department;</p></content></level><level class="para1" eId="section-151-3-b"><num>(b)</num><intro><p>make provision for or about the payment of amounts of benefit either—</p></intro><level class="para2" eId="section-151-3-b-i"><num>(i)</num><content><p>for purposes that are similar to those for which any social security or comparable benefit is payable; or</p></content></level><level class="para2" eId="section-151-3-b-ii"><num>(ii)</num><content><p>for purposes connected with the carrying out of any functions of the Secretary of State or any such department in relation to employment or training for employment;</p></content></level></level><level class="para1" eId="section-151-3-c"><num>(c)</num><content><p>are arrangements relating to a temporary experimental period; and</p></content></level><level class="para1" eId="section-151-3-d"><num>(d)</num><content><p>are made wholly or partly for the purpose of facilitating a decision as to whether, or to what extent, it is desirable for provision to be made on a permanent basis for or in relation to any benefit.</p></content></level></subsection><subsection eId="section-151-4"><num>(4)</num><content><p>In subsection (3)(b) above the reference to making provision for or about the payment of amounts of benefit for purposes that are similar to those for which any social security or comparable benefit is payable shall include a reference to making provision by virtue of which there is a modification of the conditions of entitlement to, or the conditions for the payment of, an existing social security or comparable benefit.</p></content></subsection><subsection eId="section-151-5"><num>(5)</num><intro><p>An order under this section may—</p></intro><level class="para1" eId="section-151-5-a"><num>(a)</num><content><p>make different provision for different cases, and</p></content></level><level class="para1" eId="section-151-5-b"><num>(b)</num><content><p>contain such incidental, supplemental, consequential and transitional provision (including provision modifying provision made by or under the Income Tax Acts) as the Treasury may think fit.</p></content></level></subsection><subsection eId="section-151-6"><num>(6)</num><content><p>In this section “benefit” includes any allowance, grant or other amount the whole or any part of which is payable directly or indirectly out of public funds.</p></content></subsection><subsection eId="section-151-7"><num>(7)</num><intro><p>The power to make an order under this section—</p></intro><level class="para1" eId="section-151-7-a"><num>(a)</num><content><p>shall be exercisable for the year 1996-97 and subsequent years of assessment; and</p></content></level><level class="para1" eId="section-151-7-b"><num>(b)</num><content><p>so far as exercisable for the year 1996-97, shall be exercisable in relation to benefits, allowances and other amounts paid at times on or after 6th April 1996 but before the making of the order.</p></content></level></subsection><subsection eId="section-151-8"><num>(8)</num><content><p>The Treasury shall not make an order under this section containing any such provision as is mentioned in subsection (1)(b) above unless a draft of the order has been laid before, and approved by a resolution of, the House of Commons.</p></content></subsection></section><section eId="section-152"><num>152</num><heading>Jobfinder’s grant</heading><subsection eId="section-152-1"><num>(1)</num><content><p>The Income Tax Acts shall have effect, and be deemed always to have had effect, as if jobfinder’s grant were exempt from income tax and, accordingly, were to be disregarded in computing the amount of any receipts brought into account for income tax purposes.</p></content></subsection><subsection eId="section-152-2"><num>(2)</num><content><p>In this section “jobfinder’s grant” means grant paid under that name by virtue of arrangements made in pursuance of section 2 of the <noteRef href="#m00102" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Employment and Training Act 1973 or section 1 of the <noteRef href="#m00103" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Employment and Training Act (Northern Ireland) 1950 (arrangements for assisting persons to select, train for, obtain or retain employment).</p></content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-IV-chapter-VI-crossheading-investments"><heading>Investments</heading><section eId="section-153"><num>153</num><heading>Foreign income dividends</heading><content><p>Schedule 27 to this Act (which makes provision relating to foreign income dividends) shall have effect.</p></content></section><section eId="section-154"><num>154</num><heading>FOTRA securities</heading><subsection eId="section-154-1"><num>(1)</num><content><p>The modifications which, under section 60 of the <noteRef href="#m00104" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1940, may be made for the purposes of any issue of securities to the conditions about tax exemption specified in section 22 of the <noteRef href="#m00105" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance (No. 2) Act 1931 shall include a modification by virtue of which the tax exemption contained in any condition of the issue applies, as respects capital, irrespective of where the person with the beneficial ownership of the securities is domiciled.</p></content></subsection><subsection eId="section-154-2"><num>(2)</num><content><p>Subject to subsections (3) to (5) below, nothing in the Tax Acts shall impose any charge to tax on any person in respect of so much of any profits or gains arising from a FOTRA security, or from any loan relationship represented by a FOTRA security, as is expressed to be exempt from tax in the tax exemption condition applying to that security.</p></content></subsection><subsection eId="section-154-3"><num>(3)</num><content><p>Exemption from tax shall not be conferred by virtue of subsection (2) above in relation to any security unless the requirements imposed as respects that exemption by the conditions with which the security is issued (including any requirement as to the making of a claim) are complied with.</p></content></subsection><subsection eId="section-154-4"><num>(4)</num><content><p>The tax exemption condition of a FOTRA security shall not be taken to confer any exemption from any charge to tax imposed by virtue of the provisions of Chapter IA of Part XV or Chapter III of Part XVII of the Taxes Act 1988 (anti-avoidance provisions for residents etc.)</p></content></subsection><subsection eId="section-154-5"><num>(5)</num><content><p>Nothing in this section shall entitle any person to any repayment of tax which he has not claimed within the time limit which would be applicable under the Tax Acts (apart from this section) to a claim for the repayment of that tax.</p></content></subsection><subsection eId="section-154-6"><num>(6)</num><intro><p>A person with the beneficial ownership of a FOTRA security who would, by virtue of this section, be exempt from tax in respect of some or all of the profits and gains arising from that security, or from any loan relationship represented by it, shall not be entitled for the purposes of income tax or corporation tax to bring into account any amount—</p></intro><level class="para1" eId="section-154-6-a"><num>(a)</num><content><p>in respect of changes in the value of that security;</p></content></level><level class="para1" eId="section-154-6-b"><num>(b)</num><content><p>as expenses or disbursements incurred in, or in connection with, the holding of the security or any transaction relating to the security; or</p></content></level><level class="para1" eId="section-154-6-c"><num>(c)</num><content><p>as a debit given, in respect of any loan relationship represented by that security, by any provision of Chapter II of this Part of this Act in respect of such a relationship.</p></content></level></subsection><subsection eId="section-154-7"><num>(7)</num><content><p>Schedule 28 to this Act (which contains amendments consequential on the provisions of this section) shall have effect.</p></content></subsection><subsection eId="section-154-8"><num>(8)</num><intro><p>References in this section to a FOTRA security are references to—</p></intro><level class="para1" eId="section-154-8-a"><num>(a)</num><content><p>any security issued with such a condition about exemption from taxation as is authorised in relation to its issue by virtue of section 22 of the <noteRef href="#m00106" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance (No. 2) Act 1931; or</p></content></level><level class="para1" eId="section-154-8-b"><num>(b)</num><content><p>any 3½% War Loan 1952 Or After which was issued with a condition authorised by virtue of section 47 of the <noteRef href="#m00107" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance (No. 2) Act 1915;</p></content></level><wrapUp><p>and references, in relation to such a security, to the tax exemption condition shall be construed accordingly.</p></wrapUp></subsection><subsection eId="section-154-9"><num>(9)</num><intro><p>This section and Schedule 28 to this Act shall have effect—</p></intro><level class="para1" eId="section-154-9-a"><num>(a)</num><content><p>for the purposes of income tax, for the year 1996-97 and subsequent years of assessment; and</p></content></level><level class="para1" eId="section-154-9-b"><num>(b)</num><content><p>for the purposes of corporation tax, for accounting periods ending after 31st March 1996.</p></content></level></subsection></section><section eId="section-155"><num>155</num><heading>Directions for payment without deduction of tax</heading><content><p><mod>After section 51 of the Taxes Act 1988 there shall be inserted the following section—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>51AA</num><heading>Commencement of direction under section 50 or 51</heading><content><p>A direction under section 50 or 51 that any security shall be deemed to have been issued subject to the condition that the interest thereon shall be paid without deduction of tax may provide that the direction is to have effect in relation only to payments of interest made on or after such date as may be specified in the direction.</p></content></section></quotedStructure></mod></p></content></section><section eId="section-156"><num>156</num><heading>Paying and collecting agents etc</heading><content><p>Schedule 29 to this Act (which amends the rules relating to paying and collecting agents) shall have effect.</p></content></section><section eId="section-157"><num>157</num><heading>Stock lending fees</heading><subsection eId="section-157-1"><num>(1)</num><content><p><mod>After section 129A of the Taxes Act 1988 (interest on cash collateral paid in connection with stock lending arrangements) there shall be inserted the following section—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>129B</num><heading>Stock lending fees</heading><subsection><num>(1)</num><content><p>The income which, as income deriving from investments of a description specified in any of the relevant provisions, is eligible for relief from tax by virtue of that provision shall be taken to include any relevant stock lending fee.</p></content></subsection><subsection><num>(2)</num><content><p>For the purposes of this section the relevant provisions are sections 592(2), 608(2)(a), 613(4), 614(3), 620(6) and 643(2).</p></content></subsection><subsection><num>(3)</num><content><p>In this section “relevant stock lending fee”, in relation to investments of any description, means any amount, in the nature of a fee, which is payable in connection with an approved stock lending arrangement relating to investments which, but for any transfer under the arrangement, would be investments of that description.</p></content></subsection><subsection><num>(4)</num><content><p>In this section “approved stock lending arrangement” has the same meaning as in Schedule 5A.</p></content></subsection></section></quotedStructure></mod></p></content></subsection><subsection eId="section-157-2"><num>(2)</num><content><p>This section has effect in relation to any arrangements entered into on or after 2nd January 1996.</p></content></subsection></section><section eId="section-158"><num>158</num><heading>Transfers on death under the accrued income scheme</heading><subsection eId="section-158-1"><num>(1)</num><content><p><mod>In section 710(5) of the Taxes Act 1988 (meaning of “transfer” in sections 711 to 728), after “or otherwise” there shall be inserted <quotedText startQuote="“">, but—</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(a)</num><content><p>does not include the vesting of securities in a person’s personal representatives on his death; and</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-158-2"><num>(2)</num><content><p>Subsection (1) of section 721 of that Act (transfer of securities on death) shall cease to have effect.</p></content></subsection><subsection eId="section-158-3"><num>(3)</num><content><p><mod>For subsection (2) of that section (transfers by personal representatives to legatees) there shall be substituted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(2)</num><intro><p>Where—</p></intro><level class="para1"><num>(a)</num><content><p>an individual who is entitled to securities dies, and</p></content></level><level class="para1"><num>(b)</num><content><p>in the interest period in which the individual died, the securities are transferred by his personal representatives to a legatee,</p></content></level><wrapUp><p>section 713 shall not apply to the transfer.</p></wrapUp></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-158-4"><num>(4)</num><content><p>Subsection (4) of that section (interest period treated as ending with death) shall cease to have effect.</p></content></subsection><subsection eId="section-158-5"><num>(5)</num><content><p>This section has effect as respects deaths on or after 6th April 1996.</p></content></subsection></section><section eId="section-159"><num>159</num><heading>Manufactured payments, repos, etc</heading><subsection eId="section-159-1"><num>(1)</num><content><p>Sections 729, 737A(2)(b) and 786(4) of the Taxes Act 1988 (provisions applying to sale and repurchase agreements) shall cease to have effect except in relation to cases where the initial agreement to sell or transfer the securities or other property was made before the appointed day.</p></content></subsection><subsection eId="section-159-2"><num>(2)</num><intro><p>In section 737 of that Act—</p></intro><level class="para1" eId="section-159-2-a"><num>(a)</num><content><p>in subsection (5) (manufactured dividends paid to UK residents by non-residents), for the words from “a person resident in the United Kingdom” to “the United Kingdom recipient shall” there shall be substituted “a United Kingdom recipient, that recipient shall”; and</p></content></level><level class="para1" eId="section-159-2-b"><num>(b)</num><content><p><mod>after that subsection there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(5AAA)</num><intro><p>For the purposes of subsection (5) above a person who receives a manufactured dividend is a United Kingdom recipient if—</p></intro><level class="para1"><num>(a)</num><content><p>he is resident in the United Kingdom; or</p></content></level><level class="para1"><num>(b)</num><content><p>he is not so resident but receives that dividend for the purposes of a trade carried on through a branch or agency in the United Kingdom.</p></content></level></subsection></quotedStructure></mod></p></content></level></subsection><subsection eId="section-159-3"><num>(3)</num><content><p><mod>In section 737C of that Act (deemed manufactured payments), the following subsection shall be inserted after subsection (11A) in relation to cases where the initial agreement to sell the securities is made on or after the appointed day, that is to say—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(11B)</num><intro><p>The preceding provisions of this section shall have effect in cases where paragraph 2, 3 or 4 of Schedule 23A would apply by virtue of section 737A(5) but for paragraph 5 of that Schedule as they have effect in a case where the paragraph in question is not disapplied by paragraph 5; and where—</p></intro><level class="para1"><num>(a)</num><content><p>the gross amount of the deemed manufactured interest, or</p></content></level><level class="para1"><num>(b)</num><content><p>the gross amount of the deemed manufactured overseas dividend,</p></content></level><wrapUp><p>falls to be calculated in such a case under subsection (8) or (11) above, it shall be so calculated by reference to the provisions of paragraph 3 or 4 of Schedule 23A that would have applied but for paragraph 5 of that Schedule.</p></wrapUp></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-159-4"><num>(4)</num><content><p>In sub-paragraph (3) of paragraph 4 of Schedule 23A to that Act (manufactured overseas dividends paid to UK residents by non-residents), for the words from “a person resident in the United Kingdom” to “the United Kingdom recipient shall” there shall be substituted “a United Kingdom recipient, that recipient shall”.</p></content></subsection><subsection eId="section-159-5"><num>(5)</num><content><p><mod>After that sub-paragraph there shall be inserted the following sub-paragraphs—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(3A)</num><intro><p>For the purposes of sub-paragraph (3) above a person who receives a manufactured overseas dividend is a United Kingdom recipient if—</p></intro><level class="para1"><num>(a)</num><content><p>he is resident in the United Kingdom; or</p></content></level><level class="para1"><num>(b)</num><content><p>he is not so resident but receives that dividend for the purposes of a trade carried on through a branch or agency in the United Kingdom.</p></content></level></subsection><subsection><num>(3B)</num><intro><p>Dividend manufacturing regulations may make provision, in relation to cases falling within sub-paragraph (3) above, for the amount of tax required under that sub-paragraph to be taken to be reduced, to such extent and for such purposes as may be determined under the regulations, by reference to amounts of overseas tax charged on, or in respect of—</p></intro><level class="para1"><num>(a)</num><content><p>the making of the manufactured overseas dividend; or</p></content></level><level class="para1"><num>(b)</num><content><p>the overseas dividend of which the manufactured overseas dividend is representative.</p></content></level></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-159-6"><num>(6)</num><content><p><mod>In sub-paragraph (7) of paragraph 4 of that Schedule (regulations for off-setting), for the words from “against” to “and account” in the words after paragraph (b) there shall be substituted “in accordance with the regulations and to the prescribed extent, amounts falling within paragraph (a) of sub-paragraph (7AA) below against the sums falling within paragraph (b) of that sub-paragraph, and to account”; and after that sub-paragraph there shall be inserted the following sub-paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><subparagraph><num>(7AA)</num><intro><p>Those amounts and sums are—</p></intro><level class="para1"><num>(a)</num><content><p>amounts of overseas tax in respect of overseas dividends received by him in that chargeable period, amounts of overseas tax charged on, or in respect of, the making of manufactured overseas dividends so received by him and amounts deducted under sub-paragraph (2) above from any such manufactured overseas dividends; and</p></content></level><level class="para1"><num>(b)</num><content><p>the sums due from him on account of the amounts deducted by him under sub-paragraph (2) above from the manufactured overseas dividends paid by him in that chargeable period.</p></content></level></subparagraph></quotedStructure></mod></p></content></subsection><subsection eId="section-159-7"><num>(7)</num><intro><p>In sub-paragraph (1) of paragraph 8 of that Schedule (power to modify provisions of Schedule)—</p></intro><level class="para1" eId="section-159-7-a"><num>(a)</num><content><p><mod>before the “or” at the end of paragraph (a) there shall be inserted—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><level class="para1"><num>(aa)</num><content><p>such persons who receive, or become entitled to receive, manufactured dividends, manufactured interest or manufactured overseas dividends as may be prescribed,</p></content></level></quotedStructure></mod></p><p>and</p></content></level><level class="para1" eId="section-159-7-b"><num>(b)</num><content><p>in the words after paragraph (b), for “paragraph 2, 3 or 4 above” there shall be substituted “paragraphs 2 to 5 above”.</p></content></level></subsection><subsection eId="section-159-8"><num>(8)</num><content><p><mod>After sub-paragraph (1) of paragraph 8 of that Schedule there shall be inserted the following sub-paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><subparagraph><num>(1A)</num><intro><p>Dividend manufacturing regulations may provide, in relation to prescribed cases where a person makes or receives the payment of any amount representative of an overseas dividend, or is treated for any purposes of this Schedule or such regulations as a person making or receiving such a payment—</p></intro><level class="para1"><num>(a)</num><content><p>for any entitlement of that person to claim relief under Part XVIII to be extinguished or reduced to such extent as may be found under the regulations; and</p></content></level><level class="para1"><num>(b)</num><content><p>for the adjustment, by reference to any provision having effect under the law of a territory outside the United Kingdom, of any amount falling to be taken, for any prescribed purposes of the Tax Acts or the 1992 Act, to be the amount paid or payable by or to any person in respect of any sale, repurchase or other transfer of the overseas securities to which the payment relates.</p></content></level></subparagraph></quotedStructure></mod></p></content></subsection><subsection eId="section-159-9"><num>(9)</num><intro><p>Subsections (2), (4) and (5) above have effect—</p></intro><level class="para1" eId="section-159-9-a"><num>(a)</num><content><p>for the purposes of corporation tax, in relation to accounting periods ending after 31st March 1996; and</p></content></level><level class="para1" eId="section-159-9-b"><num>(b)</num><content><p>for the purposes of income tax, in relation to the year 1996-97 and subsequent years of assessment.</p></content></level></subsection><subsection eId="section-159-10"><num>(10)</num><content><p>In this section “the appointed day” means such day as the Treasury may by order appoint, and different days may be appointed under this subsection for different purposes.</p></content></subsection></section><section eId="section-160"><num>160</num><heading>Investments in housing</heading><content><p>Schedule 30 to this Act (which makes provision conferring relief from corporation tax on companies that invest in housing) shall have effect.</p></content></section><section eId="section-161"><num>161</num><heading>Venture capital trusts: control of companies etc</heading><subsection eId="section-161-1"><num>(1)</num><content><p>Schedule 28B to the Taxes Act 1988 (venture capital trusts: meaning of qualifying holdings) shall have effect, and be deemed always to have had effect, subject to the amendments in subsections (2) and (3) below.</p></content></subsection><subsection eId="section-161-2"><num>(2)</num><intro><p>In paragraph 9 (requirements as to subsidiaries etc. of the relevant company), the following shall be omitted—</p></intro><level class="para1" eId="section-161-2-a"><num>(a)</num><content><p>in sub-paragraph (1), the words “subject to sub-paragraph (2) below”; and</p></content></level><level class="para1" eId="section-161-2-b"><num>(b)</num><content><p>sub-paragraph (2).</p></content></level></subsection><subsection eId="section-161-3"><num>(3)</num><content><p><mod>In paragraph 13 (interpretation), for sub-paragraphs (2) and (3) (“connected” and “control” to be construed in accordance with sections 839 and 416(2) to (6)) there shall be substituted the following sub-paragraphs—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><subparagraph><num>(2)</num><content><p>For the purposes of paragraphs 5(2) and 9 above, the question whether a person controls a company shall be determined in accordance with subsections (2) to (6) of section 416 with the modification given by sub-paragraph (3) below.</p></content></subparagraph><subparagraph><num>(3)</num><intro><p>The modification is that, in determining whether a person controls a company, there shall be disregarded—</p></intro><level class="para1"><num>(a)</num><content><p>his or any other person’s possession of, or entitlement to acquire, relevant fixed-rate preference shares of the company; and</p></content></level><level class="para1"><num>(b)</num><content><p>his or any other person’s possession of, or entitlement to acquire, rights as a loan creditor of the company.</p></content></level></subparagraph><subparagraph><num>(4)</num><content><p>Section 839 shall apply for the purposes of this Schedule, but as if the reference in subsection (8) to section 416 were a reference to subsections (2) to (6) of section 416 with the modification given by sub-paragraph (3) above.</p></content></subparagraph><subparagraph><num>(5)</num><intro><p>For the purposes of sub-paragraph (3) above—</p></intro><level class="para1"><num>(a)</num><content><p>relevant fixed-rate preference shares are fixed-rate preference shares that do not for the time being carry voting rights; and</p></content></level><level class="para1"><num>(b)</num><content><p>“fixed-rate preference shares” has the same meaning as in section 95.</p></content></level></subparagraph></quotedStructure></mod></p></content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-IV-chapter-VI-crossheading-insurance-policies"><heading>Insurance policies</heading><section eId="section-162"><num>162</num><heading>Qualifying life insurance policies: certification</heading><subsection eId="section-162-1"><num>(1)</num><intro><p>Section 55 of the <noteRef href="#m00108" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1995 (removal of certification requirements for qualifying policies with respect to any time on or after 5th May 1996 etc) shall have effect—</p></intro><level class="para1" eId="section-162-1-a"><num>(a)</num><content><p>with the substitution for “5th May 1996”, wherever occurring, of “the appointed date”; and</p></content></level><level class="para1" eId="section-162-1-b"><num>(b)</num><content><p><mod>with the addition of the following subsection after subsection (8)—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(9)</num><content><p>In this section “the appointed date” means such date as may be specified for the purpose in an order made by the Board.</p></content></subsection></quotedStructure></mod></p></content></level></subsection><subsection eId="section-162-2"><num>(2)</num><content><p>In Schedule 15 to the Taxes Act 1988 (qualifying policies) paragraphs 24(2A) and 25(2) shall have effect with the substitution for “5th May 1996” of “the appointed date for the purposes of section 55 of the Finance Act 1995 (removal of certification requirements)”.</p></content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-IV-chapter-VI-crossheading-insurance-companies"><heading>Insurance companies</heading><section eId="section-163"><num>163</num><heading>Life assurance business losses</heading><content><p>Schedule 31 to this Act, which makes provision about losses arising to insurance companies in the carrying on of life assurance business, shall have effect.</p></content></section><section eId="section-164"><num>164</num><heading>Limits on relief for expenses</heading><subsection eId="section-164-1"><num>(1)</num><content><p><mod>For subsections (2) to (5) of section 76 of the Taxes Act 1988 there shall be substituted the following subsections—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(2)</num><content><p>Where, in the case of any such company, the amount mentioned in paragraph (a) of subsection (2A) below exceeds for any accounting period the amount mentioned in paragraph (b) of that subsection, the amount which by virtue of this section is to be deductible by way of management expenses for that period shall be equal to the basic deduction for that period reduced by the amount of the excess.</p></content></subsection><subsection><num>(2A)</num><intro><p>Those amounts are—</p></intro><level class="para1"><num>(a)</num><content><p>the amount which would be the profits of the company’s life assurance business for that period if computed in accordance with the provisions applicable to Case I of Schedule D and adjusted in respect of losses; and</p></content></level><level class="para1"><num>(b)</num><intro><p>the amount (including any negative amount) produced by deducting the following aggregate amount from the company’s relevant income for that period from its life assurance business, that is to say, the aggregate of—</p></intro><level class="para2"><num>(i)</num><content><p>the basic deduction,</p></content></level><level class="para2"><num>(ii)</num><content><p>any non-trading deficit on the company’s loan relationships which is produced for that period in relation to that business by a separate computation under paragraph 2 of Schedule 11 to the Finance Act 1996,</p></content></level><level class="para2"><num>(iii)</num><content><p>any amount which in pursuance of a claim under paragraph 4(3) of that Schedule is carried back to that period and (in accordance with paragraph 4(5) of that Schedule) applied in reducing profits of the company for that period, and</p></content></level><level class="para2"><num>(iv)</num><content><p>any charges on income for that period so far as they consist in annuities or other annual payments that are referable to the company’s life assurance business and, if they are not annuities, are payable by the company wholly or partly in satisfaction of claims under insurance policies.</p></content></level></level></subsection><subsection><num>(2B)</num><intro><p>For the purposes of subsection (2A) above a company’s relevant income for any accounting period from its life assurance business is the sum of the following—</p></intro><level class="para1"><num>(a)</num><content><p>the income and gains of the company’s life assurance business for that accounting period; and</p></content></level><level class="para1"><num>(b)</num><content><p>the relevant franked investment income of the company for that period so far as it arises from assets held for the purposes of that business and is not included in the income and gains mentioned in paragraph (a) above.</p></content></level></subsection><subsection><num>(2C)</num><intro><p>The adjustment in respect of losses that is to be made for any accounting period under paragraph (a) of subsection (2A) above is a deduction of the amount equal to the unused part of the sum which—</p></intro><level class="para1"><num>(a)</num><content><p>by reference to computations made in respect of the company’s life assurance business in accordance with the provisions applicable to Case I of Schedule D, and</p></content></level><level class="para1"><num>(b)</num><content><p>disregarding section 434A(2),</p></content></level><wrapUp><p>would fall, in the case of the company, to be set off under section 393 against the company’s income for that period.</p></wrapUp></subsection><subsection><num>(2D)</num><content><p>For the purposes of subsection (2C) above, an amount is unused to the extent that it has not been taken into account for any previous accounting period in determining the amount by reference to which the following question was answered, namely, the question whether, and by how much, the amount deductible by virtue of this section by way of management expenses was less than the basic deduction.</p></content></subsection><subsection><num>(5)</num><content><p>Subject to paragraph 4(11) to (13) of Schedule 11 to the Finance Act 1996, where the basic deduction for any period exceeds the amount which for that period is to be deductible by virtue of this section by way of management expenses, the amount to be carried forward by virtue of section 75(3) (including the amount to be so carried forward for the purpose of computing the amount of the basic deduction for any period) shall be increased by the amount of the excess.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-164-2"><num>(2)</num><intro><p>In subsection (8) of that section—</p></intro><level class="para1" eId="section-164-2-a"><num>(a)</num><content><p><mod>after the definition of “authorised person” there shall be inserted the following definition—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><p>“basic deduction”, in relation to an accounting period of an insurance company, means the amount which, by virtue of this section, would be deductible by way of management expenses for that period but for subsection (2) above;</p></quotedStructure></mod></p><p>and</p></content></level><level class="para1" eId="section-164-2-b"><num>(b)</num><content><p><mod>after the definition of “recognised self-regulating organisation” there shall be inserted the following definition—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><p>“relevant franked investment income”, in relation to any insurance company, means any franked investment income of the company in so far as it is not income the tax credits comprised in which may be claimed by the company under section 438(4) or 441A(7);</p></quotedStructure><inline name="appendText">.</inline></mod></p></content></level></subsection><subsection eId="section-164-3"><num>(3)</num><intro><p>In paragraph 5 of Schedule 19AC to the Taxes Act 1988 (modification of section 76)—</p></intro><level class="para1" eId="section-164-3-a"><num>(a)</num><content><p>in sub-paragraph (1), in the subsection (6B) treated as inserted in section 76, for “their” there shall be substituted “its” and the words “and subsections (2) and (3)(b) above” shall be omitted; and</p></content></level><level class="para1" eId="section-164-3-b"><num>(b)</num><content><p><mod>after that sub-paragraph there shall be inserted the following sub-paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><subparagraph><num>(1A)</num><content><p>In section 76 references to franked investment income shall be treated as being references to UK distribution income within the meaning of paragraph 5B of this Schedule.</p></content></subparagraph></quotedStructure></mod></p></content></level></subsection><subsection eId="section-164-4"><num>(4)</num><content><p>In section 56(4) of the Taxes Act 1988 (which contains a reference to the computation required by section 76(2) of that Act), for “by” there shall be substituted “for the purposes of”.</p></content></subsection><subsection eId="section-164-5"><num>(5)</num><content><p>Subject to subsection (6) below, this section has effect in relation to accounting periods beginning on or after 1st January 1996.</p></content></subsection><subsection eId="section-164-6"><num>(6)</num><intro><p>Notwithstanding anything in the previous provisions of this section, section 76 of the Taxes Act 1988 has effect in relation to accounting periods beginning on or after 1st January 1996—</p></intro><level class="para1" eId="section-164-6-a"><num>(a)</num><content><p>as if the reference in subsection (2D) of that section to a previous accounting period included a reference to an accounting period beginning before that date, and</p></content></level><level class="para1" eId="section-164-6-b"><num>(b)</num><intro><p>in relation to such a previous accounting period, as if the references—</p></intro><level class="para2" eId="section-164-6-b-i"><num>(i)</num><content><p>to the amount deductible by virtue of this section, and</p></content></level><level class="para2" eId="section-164-6-b-ii"><num>(ii)</num><content><p>to the basic deduction,</p></content></level><wrapUp><p>were to be construed by reference to whatever provisions had effect in relation to that previous period for purposes corresponding to those of that section as amended by this section.</p></wrapUp></level></subsection></section><section eId="section-165"><num>165</num><heading>Annual payments under insurance policies: deductions</heading><subsection eId="section-165-1"><num>(1)</num><content><p><mod>In section 337 of the Taxes Act 1988 (deductions in computing income), the following subsections shall be inserted after subsection (2)—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(2A)</num><content><p>In computing any profits or losses of a company in accordance with the provisions of this Act applicable to Case I of Schedule D, subsection (2)(b) above shall not prevent the deduction of any annuity or other annual payment which is payable by a company wholly or partly in satisfaction of any claim under an insurance policy in relation to which the company is the insurer.</p></content></subsection><subsection><num>(2B)</num><content><p>The reference in subsection (2A) above to an annuity payable wholly or partly in satisfaction of a claim under an insurance policy shall be taken, in relation to an insurance company (within the meaning of Chapter I of Part XII), to include a reference to every annuity payable by that company; and the references in sections 338(2) and 434B(2) to an annuity paid wholly or partly as mentioned in subsection (2A) above shall be construed accordingly.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-165-2"><num>(2)</num><content><p>In section 338(2) of that Act, in the words after paragraph (b) (payments which are not charges on income), after “corporation tax” there shall be inserted “nor any annuity or other annual payment which (without being so deductible) is paid wholly or partly as mentioned in section 337(2A)”.</p></content></subsection><subsection eId="section-165-3"><num>(3)</num><content><p><mod>In section 434B of that Act (treatment of interest and annuities in the case of insurance companies), subsection (1) shall cease to have effect; and in subsection (2), for the words from the beginning to “mentioned in subsection (1) above” there shall be substituted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(2)</num><content><p>Nothing in section 337(2A) or 338(2) shall be construed as preventing any annuity or other annual payment which is paid wholly or partly as mentioned in section 337(2A)</p></content></subsection></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-165-4"><num>(4)</num><content><p>Subject to subsection (5) below, this section has effect in relation to accounting periods beginning on or after 1st January 1996.</p></content></subsection><subsection eId="section-165-5"><num>(5)</num><content><p>In relation to any accounting period beginning on or after 1st January 1996 but ending before 1st April 1996, this section shall have effect as if any reference in provisions inserted by this section to an annuity payable or paid by an insurance company included a reference to any such interest as was mentioned in section 434B(1) of the Taxes Act 1988 before its repeal by virtue of this section.</p></content></subsection></section><section eId="section-166"><num>166</num><heading>Equalisation reserves</heading><content><p>Schedule 32 to this Act (which makes provision about the tax treatment of equalisation reserves maintained by insurance companies) shall have effect.</p></content></section><section eId="section-167"><num>167</num><heading>Industrial assurance business</heading><subsection eId="section-167-1"><num>(1)</num><content><p>In section 432 of the Taxes Act 1988, subsection (2) (industrial assurance business treated as separate business for the purposes of Chapter I of Part XII) shall cease to have effect.</p></content></subsection><subsection eId="section-167-2"><num>(2)</num><content><p><mod>In section 432A(2) of the Taxes Act 1988, for paragraphs (d) and (e) (different categories of basic life assurance and general annuity business, including and not including industrial assurance business), there shall be substituted the following paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(d)</num><content><p>basic life assurance and general annuity business; and</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-167-3"><num>(3)</num><intro><p>In section 86 of the <noteRef href="#m00109" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1989 (spreading of relief for acquisition expenses)—</p></intro><level class="para1" eId="section-167-3-a"><num>(a)</num><content><p>in subsection (1)(a), for “in respect of industrial life assurance business carried on by the company” there shall be substituted “for persons who collect premiums from house to house”; and</p></content></level><level class="para1" eId="section-167-3-b"><num>(b)</num><content><p>in subsection (2), for “in respect of industrial life assurance business” there shall be substituted “for persons who collect premiums from house to house”.</p></content></level></subsection><subsection eId="section-167-4"><num>(4)</num><content><p>In section 832 of the Taxes Act 1988 (interpretation), in the definition of “industrial assurance business” for “has” there shall be substituted “means any such business carried on before the day appointed for the coming into force of section 167(4) of the Finance Act 1996 as was industrial assurance business within”.</p></content></subsection><subsection eId="section-167-5"><num>(5)</num><content><p>In Schedule 14 to the Taxes Act 1988 (ancillary provisions about relief in respect of life assurance premiums), in paragraph 8, at the beginning of sub-paragraph (4) (policy which is varied so as to increase benefits, etc. to be treated as issued after 13th March 1984) there shall be inserted “Subject to sub-paragraph (8) below,”.</p></content></subsection><subsection eId="section-167-6"><num>(6)</num><content><p><mod>After sub-paragraph (7) of that paragraph there shall be inserted the following sub-paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(8)</num><intro><p>Sub-paragraph (4) above does not apply in the case of a variation so as to increase the benefits secured, if the variation is made—</p></intro><level class="para1"><num>(a)</num><content><p>on or after such day as the Board may by order appoint, and</p></content></level><level class="para1"><num>(b)</num><content><p>in consideration of a change in the method of payment of premiums from collection by a person collecting premiums from house to house to payment by a different method.</p></content></level></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-167-7"><num>(7)</num><intro><p>In Schedule 15 to the Taxes Act 1988 (qualifying policies)—</p></intro><level class="para1" eId="section-167-7-a"><num>(a)</num><content><p>in paragraph 1(6) (calculation of amount included in premiums of whole life and term insurances in respect of their payment otherwise than annually), for “and if the policy is issued in the course of an industrial assurance business,” there shall be substituted “and if the policy provides for payment otherwise than annually without providing for the amount of the premiums if they are paid annually,”; and</p></content></level><level class="para1" eId="section-167-7-b"><num>(b)</num><content><p>in paragraph 2(2) (the equivalent calculation for endowment assurances), for “issued in the course of an industrial assurance business” there shall be substituted “that provides for the payment of premiums otherwise than annually without providing for the amount of the premiums if they are paid annually,”.</p></content></level></subsection><subsection eId="section-167-8"><num>(8)</num><content><p><mod>After paragraph 8 of that Schedule there shall be inserted the following paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><paragraph class="schProv1"><num>8A</num><subparagraph><num>(1)</num><intro><p>Paragraphs 7 and 8 above shall have effect in relation to any policy issued on or after the appointed day as if the references to the issue of a policy in the course of an industrial assurance business were references to the issue of a policy by any company in a case in which—</p></intro><level class="para1"><num>(a)</num><content><p>the company, before that day and in the course of such a business, issued any policy which was a qualifying policy by virtue of either of those paragraphs; and</p></content></level><level class="para1"><num>(b)</num><content><p>the policies which on 28th November 1995 were being offered by the company as available to be issued included policies of the same description as the policy issued on or after the appointed day.</p></content></level></subparagraph><subparagraph><num>(2)</num><content><p>In this paragraph “the appointed day” means such day as the Board may by order appoint.</p></content></subparagraph></paragraph></quotedStructure></mod></p></content></subsection><subsection eId="section-167-9"><num>(9)</num><content><p><mod>In paragraph 18(3) of that Schedule (certain variations of a policy not to affect whether policy is a qualifying policy), after paragraph (b) there shall be inserted <quotedText startQuote="“">or</quotedText><quotedStructure endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><level class="para1"><num>(c)</num><intro><p>any variation so as to increase the benefits secured or reduce the premiums payable which is effected—</p></intro><level class="para2"><num>(i)</num><content><p>on or after such day as the Board may by order appoint, and</p></content></level><level class="para2"><num>(ii)</num><content><p>in consideration of a change in the method of payment of premiums from collection by a person collecting premiums from house to house to payment by a different method.</p></content></level></level></quotedStructure></mod></p></content></subsection><subsection eId="section-167-10"><num>(10)</num><content><p>Subsections (1) to (3) above have effect in relation to accounting periods beginning on or after 1st January 1996.</p></content></subsection><subsection eId="section-167-11"><num>(11)</num><content><p>Subsection (4) above shall come into force on such day as the Board may by order appoint.</p></content></subsection><subsection eId="section-167-12"><num>(12)</num><content><p>Subsection (7) above shall have effect in relation to policies issued on or after such day as the Board may by order appoint.</p></content></subsection></section><section eId="section-168"><num>168</num><heading>Capital redemption business</heading><subsection eId="section-168-1"><num>(1)</num><content><p><mod>For subsection (3) of section 458 of the Taxes Act 1988 (meaning of capital redemption business) there shall be substituted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(3)</num><intro><p>In this section “capital redemption business” means any business in so far as it—</p></intro><level class="para1"><num>(a)</num><content><p>is insurance business for the purposes of the <noteRef href="#m00110" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Insurance Companies Act 1982, but not life assurance business; and</p></content></level><level class="para1"><num>(b)</num><content><p>consists in effecting on the basis of actuarial calculations, and carrying out, contracts under which, in return for one or more fixed payments, a sum or series of sums of a specified amount become payable at a future time or over a period.</p></content></level></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-168-2"><num>(2)</num><content><p>Schedule 33 to this Act (which makes provision for the application of the I minus E basis of charging tax to companies carrying on capital redemption business) shall have effect.</p></content></subsection><subsection eId="section-168-3"><num>(3)</num><content><p><mod>In Chapter I of Part XII of the Taxes Act 1988, after section 458 (capital redemption business) there shall be inserted the following section—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>458A</num><heading>Capital redemption business: power to apply life assurance provisions</heading><subsection><num>(1)</num><content><p>The Treasury may by regulations provide for the life assurance provisions of the Corporation Tax Acts to have effect in relation to companies carrying on capital redemption business as if capital redemption business were, or were a category of, life assurance business.</p></content></subsection><subsection><num>(2)</num><content><p>Regulations under this section may provide that the provisions applied by the regulations are to have effect as respects capital redemption business with such modifications and exceptions as may be provided for in the regulations.</p></content></subsection><subsection><num>(3)</num><intro><p>Regulations under this section may—</p></intro><level class="para1"><num>(a)</num><content><p>make different provision for different cases;</p></content></level><level class="para1"><num>(b)</num><content><p>include such incidental, supplemental, consequential and transitional provision (including provision modifying provisions of the Corporation Tax Acts other than the life assurance provisions) as the Treasury consider appropriate; and</p></content></level><level class="para1"><num>(c)</num><content><p>include retrospective provision.</p></content></level></subsection><subsection><num>(4)</num><intro><p>In this section references to the life assurance provisions of the Corporation Tax Acts are references to the following—</p></intro><level class="para1"><num>(a)</num><content><p>the provisions of this Chapter so far as they relate to life assurance business or companies carrying on such business; and</p></content></level><level class="para1"><num>(b)</num><content><p>any other provisions of the Corporation Tax Acts making separate provision by reference to whether or not the business of a company is or includes life assurance business or any category of insurance business that includes life assurance business.</p></content></level></subsection><subsection><num>(5)</num><content><p>In this section “capital redemption business” has the same meaning as in section 458.</p></content></subsection></section></quotedStructure></mod></p></content></subsection><subsection eId="section-168-4"><num>(4)</num><content><p>In section 539(3) of that Act, in the definition of “capital redemption policy” for “insurance” there shall be substituted “contract”.</p></content></subsection><subsection eId="section-168-5"><num>(5)</num><content><p>In section 553(10) of that Act, in paragraph (a) of the definition of “new offshore capital redemption policy”, for “an insurance” there shall be substituted “a contract”.</p></content></subsection><subsection eId="section-168-6"><num>(6)</num><content><p>Subsection (1) above shall have effect as respects accounting periods ending on or after the day appointed under section 199 of the <noteRef href="#m00111" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1994 for the purposes of Chapter III of Part IV of that Act (self-assessment management provisions), and subsections (4) and (5) above shall have effect as respects contracts effected on or after that day.</p></content></subsection></section><section eId="section-169"><num>169</num><heading>Provisional repayments in connection with pension business</heading><subsection eId="section-169-1"><num>(1)</num><content><p>Schedule 19AB to the Taxes Act 1988 (pension business: payments on account of tax credits and deducted tax) shall be amended in accordance with the provisions of Part I of Schedule 34 to this Act.</p></content></subsection><subsection eId="section-169-2"><num>(2)</num><content><p>Schedule 19AC to the Taxes Act 1988 (modification of that Act in relation to overseas life insurance companies) shall be amended in accordance with the provisions of Part II of Schedule 34 to this Act.</p></content></subsection><subsection eId="section-169-3"><num>(3)</num><content><p>The amendments made by Schedule 34 to this Act shall have effect in relation to provisional repayment periods, within the meaning of Schedule 19AB to the <noteRef href="#m00112" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxes Act 1988, falling in accounting periods ending on or after the day appointed under section 199 of the Finance Act 1994 for the purposes of Chapter III of Part IV of that Act (self-assessment management provisions).</p></content></subsection></section><section eId="section-170"><num>170</num><heading>Time for amending and enquiring into returns</heading><subsection eId="section-170-1"><num>(1)</num><content><p><mod>After section 11AB of the <noteRef href="#m00113" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxes Management Act 1970 there shall be inserted the following sections—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>11AC</num><heading>Modifications of sections 11AA and 11AB in relation to non-annual accounting of general insurance business</heading><subsection><num>(1)</num><content><p>This section applies in any case where a company carrying on insurance business in any period delivers a return for that period under section 11 of this Act which is based wholly or partly on accounts which the company is required or permitted to draw up using the method described in paragraph 52 of Schedule 9A to the <noteRef href="#m00114" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Companies Act 1985 (accounting for general insurance business on a non-annual basis).</p></content></subsection><subsection><num>(2)</num><content><p><mod>Where this section applies, section 11AA(2) of this Act shall have effect as if after paragraph (b) there were added <quotedText startQuote="“">and</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>c1</num><intro><p>where a company has delivered a return which is based wholly or partly on accounts drawn up as mentioned in section 11AC(1) of this Act, then, at any time before the end of the period of twelve months beginning with the date on which any particular technical provision constituted in the case of those accounts as described in paragraph 52 of Schedule 9A to the <noteRef href="#m00115" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Companies Act 1985 is replaced as described in sub-paragraph (4) of that paragraph, the company may by notice to an officer of the Board so amend its self-assessment as to give effect to any amendments to the return—</p></intro><level class="para2"><num>(i)</num><content><p>which arise from the replacement of that technical provision, and</p></content></level><level class="para2"><num>(ii)</num><content><p>which the company has notified to such an officer.</p></content></level></level></quotedStructure></mod></p></content></subsection><subsection><num>(3)</num><intro><p>Where this section applies, section 11AB of this Act shall have effect—</p></intro><level class="para1"><num>(a)</num><content><p>as if in subsection (1)(b) after “subsection (2)(b)” there were inserted “or (c1)”; and</p></content></level><level class="para1"><num>(b)</num><content><p><mod>as if in subsection (2) for the words from “is” to the end of paragraph (b) there were substituted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>a1</num><intro><p>in the case of a return (whenever delivered) which is based wholly or partly on accounts drawn up as mentioned in section 11AC(1) of this Act, is whichever of the following periods ends the later, that is to say—</p></intro><level class="para2"><num>(i)</num><content><p>the period of two years beginning with the date (or, if there is more than one such date, the latest date) on which any technical provision constituted in the case of those accounts as described in paragraph 52 of Schedule 9A to the Companies Act 1985 is replaced as mentioned in sub-paragraph (4) of that paragraph; or</p></content></level><level class="para2"><num>(ii)</num><content><p>the period ending with the quarter day next following the first anniversary of the day on which the return was delivered; and</p></content></level></level><level class="para1"><num>b1</num><intro><p>in the case of an amendment of such a return—</p></intro><level class="para2"><num>(i)</num><content><p>if the amendment is made on or before the filing date, is the period of twelve months beginning with that date; or</p></content></level><level class="para2"><num>(ii)</num><content><p>if the amendment is made after that date, is the period ending with the quarter day next following the first anniversary of the day on which the amendment was made;</p></content></level></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></level></subsection></section><section><num>11AD</num><heading>Modifications of sections 11AA and 11AB for insurance companies with non-annual actuarial investigations</heading><subsection><num>(1)</num><content><p>This section applies in any case where a return under section 11 of this Act is delivered by an insurance company which is permitted by an order under section 68 of the <noteRef href="#m00116" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Insurance Companies Act 1982 to cause investigations to be made into its financial condition less frequently than is required by section 18 of that Act.</p></content></subsection><subsection><num>(2)</num><content><p><mod>Where this section applies, section 11AA(2) of this Act shall have effect as if, after paragraph (b), there were added <quotedText startQuote="“">and</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>c2</num><intro><p>where a company falling within section 11AD(1) of this Act has delivered a return for any period, then, at any time before the end of the period of twelve months beginning with the date as at which the relevant investigation is carried out, that is to say—</p></intro><level class="para2"><num>(i)</num><content><p>if the return is for a period as at the end of which there is carried out an investigation under section 18 of the <noteRef href="#m00117" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Insurance Companies Act 1982 into the financial condition of the company, that investigation, or</p></content></level><level class="para2"><num>(ii)</num><content><p>if the return is not for such a period, the first such investigation to be made into the financial condition of the company as at the end of a subsequent period,</p></content></level><wrapUp><p>the company may by notice to an officer of the Board so amend its self-assessment as to give effect to any amendments to its return which arise from that investigation and which the company has notified to such an officer.</p></wrapUp></level></quotedStructure></mod></p></content></subsection><subsection><num>(3)</num><intro><p>Where this section applies, section 11AB of this Act shall have effect—</p></intro><level class="para1"><num>(a)</num><content><p>as if in subsection (1)(b) after “subsection (2)(b)” there were inserted “or (c2)”; and</p></content></level><level class="para1"><num>(b)</num><content><p><mod>as if in subsection (2) for the words from “is” to the end of paragraph (b) there were substituted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>a2</num><content><p>in the case of a return delivered at any time by a company falling within section 11AD(1) of this Act, is the period of two years beginning with the date as at which the relevant investigation, as defined in section 11AA(2)(c2) of this Act, is carried out; and</p></content></level><level class="para1"><num>b2</num><intro><p>in the case of an amendment of such a return—</p></intro><level class="para2"><num>(i)</num><content><p>if the amendment is made on or before the filing date, is the period of twelve months beginning with that date; or</p></content></level><level class="para2"><num>(ii)</num><content><p>if the amendment is made after that date, is the period ending with the quarter day next following the first anniversary of the day on which the amendment was made;</p></content></level></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></level></subsection></section><section><num>11AE</num><heading>Modifications of sections 11AA and 11AB for friendly societies with non-annual actuarial investigations</heading><subsection><num>(1)</num><content><p>This section applies in any case where a return under section 11 of this Act is delivered by a friendly society which is required by section 47 of the <noteRef href="#m00118" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Friendly Societies Act 1992 to cause an investigation to be made into its financial condition at least once in every period of three years.</p></content></subsection><subsection><num>(2)</num><content><p><mod>Where this section applies, section 11AA(2) of this Act shall have effect as if, after paragraph (b), there were added <quotedText startQuote="“">and</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>c3</num><intro><p>where a friendly society falling within section 11AE(1) of this Act has delivered a return for any period, then, at any time before the end of the period of fifteen months beginning with the date as at which the relevant investigation is carried out, that is to say—</p></intro><level class="para2"><num>(i)</num><content><p>if the return is for a period as at the end of which there is carried out an investigation under section 47 of the <noteRef href="#m00119" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Friendly Societies Act 1992 into the financial condition of the society, that investigation, or</p></content></level><level class="para2"><num>(ii)</num><content><p>if the return is not for such a period, the first such investigation to be made into the financial condition of the society as at the end of a subsequent period,</p></content></level><wrapUp><p>the society may by notice to an officer of the Board so amend its self-assessment as to give effect to any amendments to its return which arise from that investigation and which the society has notified to such an officer.</p></wrapUp></level></quotedStructure></mod></p></content></subsection><subsection><num>(3)</num><intro><p>Where this section applies, section 11AB of this Act shall have effect—</p></intro><level class="para1"><num>(a)</num><content><p>as if in subsection (1)(b) after “subsection (2)(b)” there were inserted “or (c3)”; and</p></content></level><level class="para1"><num>(b)</num><content><p><mod>as if in subsection (2) for the words from “is” to the end of paragraph (b) there were substituted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>a3</num><content><p>in the case of a return delivered at any time by a friendly society falling within section 11AE(1) of this Act, is the period of twenty seven months beginning with the date as at which the relevant investigation, as defined in section 11AA(2)(c3) of this Act, is carried out; and</p></content></level><level class="para1"><num>b3</num><intro><p>in the case of an amendment of such a return—</p></intro><level class="para2"><num>(i)</num><content><p>if the amendment is made on or before the filing date, is the period of twelve months beginning with that date; or</p></content></level><level class="para2"><num>(ii)</num><content><p>if the amendment is made after that date, is the period ending with the quarter day next following the first anniversary of the day on which the amendment was made;</p></content></level></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></level></subsection></section></quotedStructure></mod></p></content></subsection><subsection eId="section-170-2"><num>(2)</num><content><p>The amendment made by subsection (1) above shall have effect as respects accounting periods ending on or after the day appointed under section 199 of the <noteRef href="#m00120" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1994 for the purposes of Chapter III of Part IV of that Act (self-assessment management provisions).</p></content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-IV-chapter-VI-crossheading-friendly-societies"><heading>Friendly societies</heading><section eId="section-171"><num>171</num><heading>Life or endowment business</heading><subsection eId="section-171-1"><num>(1)</num><content><p><mod>In section 466 of the Taxes Act 1988 (interpretation of Chapter II of Part XII) for subsection (1) (meaning of “life or endowment business”) there shall be substituted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1)</num><intro><p>In this Chapter “life or endowment business” means, subject to subsections (1A) and (1B) below,—</p></intro><level class="para1"><num>(a)</num><content><p>any business within Class I, II or III of Head A of Schedule 2 to the <noteRef href="#m00121" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Friendly Societies Act 1992;</p></content></level><level class="para1"><num>(b)</num><content><p>pension business;</p></content></level><level class="para1"><num>(c)</num><content><p>any other life assurance business;</p></content></level><level class="para1"><num>(d)</num><intro><p>any business within Class IV of Head A of that Schedule, if—</p></intro><level class="para2"><num>(i)</num><content><p>the contract is one made before 1st September 1996; or</p></content></level><level class="para2"><num>(ii)</num><content><p>the contract is one made on or after 1st September 1996 and the effecting and carrying out of the contract also constitutes business within Class I, II or III of Head A of that Schedule.</p></content></level></level></subsection><subsection><num>(1A)</num><intro><p>Life or endowment business does not include the issue, in respect of a contract made before 1st September 1996, of a policy affording provision for sickness or other infirmity (whether bodily or mental), unless—</p></intro><level class="para1"><num>(a)</num><content><p>the policy also affords assurance for a gross sum independent of sickness or other infirmity;</p></content></level><level class="para1"><num>(b)</num><content><p>not less than 60 per cent. of the amount of the premiums is attributable to the provision afforded during sickness or other infirmity; and</p></content></level><level class="para1"><num>(c)</num><content><p>there is no bonus or addition which may be declared or accrue upon the assurance of the gross sum.</p></content></level></subsection><subsection><num>(1B)</num><content><p>Life or endowment business does not include the assurance of any annuity the consideration for which consists of sums obtainable on the maturity, or on the surrender, of any other policy of assurance issued by the friendly society, being a policy of assurance forming part of the tax exempt life or endowment business of the friendly society.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-171-2"><num>(2)</num><content><p><mod>In subsection (2) of that section (other definitions) there shall be inserted at the appropriate places—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(a)</num><content><p>“insurance company” shall be construed in accordance with section 431;</p></content></level></quotedStructure><inline name="appendText">; and</inline></mod></p><p><mod><quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(b)</num><content><p>“long term business” shall be construed in accordance with section 431;</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-171-3"><num>(3)</num><content><p><mod>In section 266 of that Act (life assurance premium relief) in subsection (6) (deduction from total income where relief given for part of certain payments to friendly societies) after paragraph (b) there shall be inserted <quotedText startQuote="“">and</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(c)</num><content><p>the insurance or contract is not excluded by subsection (6A) below,</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-171-4"><num>(4)</num><content><p><mod>After that subsection there shall be inserted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(6A)</num><intro><p>For the purposes of subsection (6)(c) above, an insurance or contract is excluded by this subsection if it is made on or after 1st September 1996 and affords provision for sickness or other infirmity (whether bodily or mental), unless—</p></intro><level class="para1"><num>(a)</num><content><p>it also affords assurance for a gross sum independent of sickness or other infirmity;</p></content></level><level class="para1"><num>(b)</num><content><p>not less than 60 per cent. of the amount of the premiums is attributable to the provision afforded during sickness or other infirmity; and</p></content></level><level class="para1"><num>(c)</num><content><p>there is no bonus or addition which may be declared or accrue upon the assurance of the gross sum.</p></content></level></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-171-5"><num>(5)</num><content><p>In section 463(1) of that Act (Corporation Tax Acts to apply to friendly societies' life or endowment business as they apply to insurance companies' mutual life assurance business) after “mutual life assurance business” there shall be inserted “(or other long term business)”.</p></content></subsection><subsection eId="section-171-6"><num>(6)</num><content><p>The amendment made by subsection (5) above shall have effect in relation to accounting periods ending on or after 1st September 1996.</p></content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-IV-chapter-VI-crossheading-personal-pension-schemes"><heading>Personal pension schemes</heading><section eId="section-172"><num>172</num><heading>Return of contributions on or after death of member</heading><subsection eId="section-172-1"><num>(1)</num><content><p>In section 633(1) of the Taxes Act 1988 (Board not to approve a personal pension scheme which makes provision for any benefit other than those specified in paragraphs (a) to (e)) in paragraph (e) (payment on or after the death of a member of a lump sum satisfying the conditions in section 637A) for the words following “a lump sum” there shall be substituted “with respect to which the conditions in section 637A (return of contributions) are satisfied”.</p></content></subsection><subsection eId="section-172-2"><num>(2)</num><content><p><mod>For section 637A of that Act (return of contributions on or after death of member) there shall be substituted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>637A</num><heading>Return of contributions on or after death of member</heading><subsection><num>(1)</num><intro><p>The lump sum payable under the arrangements in question (or, where two or more lump sums are so payable, those lump sums taken together) must represent no more than the return of contributions together with reasonable interest on contributions or bonuses out of profits, after allowing for—</p></intro><level class="para1"><num>(a)</num><content><p>any income withdrawals, and</p></content></level><level class="para1"><num>(b)</num><content><p>any purchases of annuities such as are mentioned in section 636.</p></content></level><wrapUp><p>To the extent that contributions are invested in units under a unit trust scheme, the lump sum (or lump sums) may represent the sale or redemption price of the units.</p></wrapUp></subsection><subsection><num>(2)</num><intro><p>A lump sum must be payable only if, in the case of the arrangements in question,—</p></intro><level class="para1"><num>(a)</num><content><p>no such annuity as is mentioned in section 634 has been purchased by the member;</p></content></level><level class="para1"><num>(b)</num><content><p>no such annuity as is mentioned in section 636 has been purchased in respect of the relevant interest; and</p></content></level><level class="para1"><num>(c)</num><content><p>no election in accordance with subsection (5)(a) of section 636 has been made in respect of the relevant interest.</p></content></level></subsection><subsection><num>(3)</num><intro><p>Where the member’s death occurs after the date which is his pension date in relation to the arrangements in question, a lump sum must not be payable more than two years after the death unless, in the case of that lump sum, the person entitled to such an annuity as is mentioned in section 636 in respect of the relevant interest—</p></intro><level class="para1"><num>(a)</num><content><p>has elected in accordance with section 636A to defer the purchase of an annuity; and</p></content></level><level class="para1"><num>(b)</num><content><p>has died during the period of deferral.</p></content></level></subsection><subsection><num>(4)</num><content><p>In this section “the relevant interest” means the interest, under the arrangements in question, of the person to whom or at whose direction the payment in question is made, except where there are two or more such interests, in which case it means that one of them in respect of which the payment is made.</p></content></subsection><subsection><num>(5)</num><content><p>Where, under the arrangements in question, there is a succession of interests, any reference in subsection (2) or (3) above to the relevant interest includes a reference to any interest (other than that of the member) in relation to which the relevant interest is a successive interest.</p></content></subsection></section></quotedStructure></mod></p></content></subsection><subsection eId="section-172-3"><num>(3)</num><intro><p>This section—</p></intro><level class="para1" eId="section-172-3-a"><num>(a)</num><content><p>has effect in relation to approvals, of schemes or amendments, given under Chapter IV of Part XIV of the Taxes Act 1988 (personal pension schemes) after the passing of this Act; and</p></content></level><level class="para1" eId="section-172-3-b"><num>(b)</num><content><p>does not affect any approval previously given.</p></content></level></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-IV-chapter-VI-crossheading-participators-in-close-companies"><heading>Participators in close companies</heading><section eId="section-173"><num>173</num><heading>Loans to participators etc</heading><subsection eId="section-173-1"><num>(1)</num><content><p>Section 419 of the Taxes Act 1988 (loans to participators etc.) shall be amended in accordance with subsections (2) to (4) below.</p></content></subsection><subsection eId="section-173-2"><num>(2)</num><content><p><mod>For subsection (3) (time when tax becomes due) there shall be substituted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(3)</num><content><p>Tax due by virtue of this section in relation to any loan or advance shall be due and payable on the day following the expiry of nine months from the end of the accounting period in which the loan or advance was made.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-173-3"><num>(3)</num><content><p><mod>After subsection (4) (relief in respect of repayment) there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(4A)</num><content><p>Where the repayment of the whole or any part of a loan or advance occurs on or after the day on which tax by virtue of this section becomes due in relation to that loan or advance, relief in respect of the repayment shall not be given under subsection (4) above at any time before the expiry of nine months from the end of the accounting period in which the repayment occurred.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-173-4"><num>(4)</num><content><p>In subsection (6) (application to loans and advances to certain companies who are participators etc.), the words “and to a company not resident in the United Kingdom” shall be omitted.</p></content></subsection><subsection eId="section-173-5"><num>(5)</num><content><p><mod>In section 826(4) of that Act (interest on repayment of tax by virtue of section 419), for paragraph (a) there shall be substituted the following paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(a)</num><intro><p>the date when the entitlement to relief in respect of the repayment accrued, that is to say—</p></intro><level class="para2"><num>(i)</num><content><p>where the repayment of the loan or advance (or part thereof) occurred on or after the day mentioned in section 419(4A), the date nine months after the end of that accounting period; and</p></content></level><level class="para2"><num>(ii)</num><content><p>in any other case, the date nine months after the end of the accounting period in which the loan or advance was made;</p></content></level><wrapUp><p>or</p></wrapUp></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-173-6"><num>(6)</num><content><p>This section has effect in relation to any loan or advance made in an accounting period ending on or after 31st March 1996.</p></content></subsection></section><section eId="section-174"><num>174</num><heading>Attribution of gains to participators in non-resident companies</heading><subsection eId="section-174-1"><num>(1)</num><content><p>Section 13 of the <noteRef href="#m00122" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxation of Chargeable Gains Act 1992 (attribution of gains to members of non-resident companies) shall be amended in accordance with subsections (2) to (9) below.</p></content></subsection><subsection eId="section-174-2"><num>(2)</num><content><p>In subsection (2) (persons subject to charge on gain to company), for “holds shares” there shall be substituted “is a participator”.</p></content></subsection><subsection eId="section-174-3"><num>(3)</num><content><p><mod>For subsections (3) and (4) (part of gain attributed to person subject to charge) there shall be substituted the following subsections—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(3)</num><content><p>That part shall be equal to the proportion of the gain that corresponds to the extent of the participator’s interest as a participator in the company.</p></content></subsection><subsection><num>(4)</num><content><p>Subsection (2) above shall not apply in the case of any participator in the company to which the gain accrues where the aggregate amount falling under that subsection to be apportioned to him and to persons connected with him does not exceed one twentieth of the gain.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-174-4"><num>(4)</num><content><p><mod>In subsection (5), paragraph (a) (section not to apply where gain distributed within two years) shall be omitted; and after that subsection there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(5A)</num><intro><p>Where—</p></intro><level class="para1"><num>(a)</num><content><p>any amount of capital gains tax is paid by a person in pursuance of subsection (2) above, and</p></content></level><level class="para1"><num>(b)</num><content><p>an amount in respect of the chargeable gain is distributed (either by way of dividend or distribution of capital or on the dissolution of the company) within 2 years from the time when the chargeable gain accrued to the company,</p></content></level><wrapUp><p>that amount of tax (so far as neither reimbursed by the company nor applied as a deduction under subsection (7) below) shall be applied for reducing or extinguishing any liability of that person to income tax in respect of the distribution or (in the case of a distribution falling to be treated as a disposal on which a chargeable gain accrues to that person) to any capital gains tax in respect of the distribution.</p></wrapUp></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-174-5"><num>(5)</num><intro><p>In subsection (7) (deduction of tax paid in computing gain on shares in the company)—</p></intro><level class="para1" eId="section-174-5-a"><num>(a)</num><content><p>for “not reimbursed by the company)” there shall be inserted “neither reimbursed by the company nor applied under subsection (5A) above for reducing any liability to tax)”; and</p></content></level><level class="para1" eId="section-174-5-b"><num>(b)</num><content><p>for “the shares by reference to which the tax was paid” there shall be substituted “any asset representing his interest as a participator in the company.”</p></content></level></subsection><subsection eId="section-174-6"><num>(6)</num><content><p><mod>After subsection (7) there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(7A)</num><intro><p>In ascertaining for the purposes of subsection (5A) or (7) above the amount of capital gains tax or income tax chargeable on any person for any year on or in respect of any chargeable gain or distribution—</p></intro><level class="para1"><num>(a)</num><content><p>any such distribution as is mentioned in subsection (5A)(b) above and falls to be treated as income of that person for that year shall be regarded as forming the highest part of the income on which he is chargeable to tax for the year;</p></content></level><level class="para1"><num>(b)</num><content><p>any gain accruing in that year on the disposal by that person of any asset representing his interest as a participator in the company shall be regarded as forming the highest part of the gains on which he is chargeable to tax for that year;</p></content></level><level class="para1"><num>(c)</num><content><p>where any such distribution as is mentioned in subsection (5A)(b) above falls to be treated as a disposal on which a gain accrues on which that person is so chargeable, that gain shall be regarded as forming the next highest part of the gains on which he is so chargeable, after any gains falling within paragraph (b) above; and</p></content></level><level class="para1"><num>(d)</num><content><p>any gain treated as accruing to that person in that year by virtue of subsection (2) above shall be regarded as the next highest part of the gains on which he is so chargeable, after any gains falling within paragraph (c) above.</p></content></level></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-174-7"><num>(7)</num><intro><p>In subsection (9) (cases where person charged is a company)—</p></intro><level class="para1" eId="section-174-7-a"><num>(a)</num><content><p>for “the person owning any of the shares in the company” there shall be substituted “a person who is a participator in the company”; and</p></content></level><level class="para1" eId="section-174-7-b"><num>(b)</num><content><p>for the words from “to the shares” onwards there shall be substituted “to the participating company’s interest as a participator in the company to which the gain accrues shall be further apportioned among the participators in the participating company according to the extent of their respective interests as participators, and subsection (2) above shall apply to them accordingly in relation to the amounts further apportioned, and so on through any number of companies.”</p></content></level></subsection><subsection eId="section-174-8"><num>(8)</num><content><p>In subsection (10) (application to trustees), for “owning shares in the company” there shall be substituted “who are participators in the company, or in any company amongst the participators in which the gain is apportioned under subsection (9) above,”.</p></content></subsection><subsection eId="section-174-9"><num>(9)</num><content><p><mod>After subsection (11) there shall be inserted the following subsections—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(12)</num><content><p>In this section “participator”, in relation to a company, has the meaning given by section 417(1) of the Taxes Act for the purposes of Part XI of that Act (close companies).</p></content></subsection><subsection><num>(13)</num><intro><p>In this section—</p></intro><level class="para1"><num>(a)</num><content><p>references to a person’s interest as a participator in a company are references to the interest in the company which is represented by all the factors by reference to which he falls to be treated as such a participator; and</p></content></level><level class="para1"><num>(b)</num><content><p>references to the extent of such an interest are references to the proportion of the interests as participators of all the participators in the company (including any who are not resident or ordinarily resident in the United Kingdom) which on a just and reasonable apportionment is represented by that interest.</p></content></level></subsection><subsection><num>(14)</num><intro><p>For the purposes of this section, where—</p></intro><level class="para1"><num>(a)</num><content><p>the interest of any person in a company is wholly or partly represented by an interest which he has under any settlement (“his beneficial interest”), and</p></content></level><level class="para1"><num>(b)</num><content><p>his beneficial interest is the factor, or one of the factors, by reference to which that person would be treated (apart from this subsection) as having an interest as a participator in that company,</p></content></level><wrapUp><p>the interest as a participator in that company which would be that person’s shall be deemed, to the extent that it is represented by his beneficial interest, to be an interest of the trustees of the settlement (and not of that person), and references in this section, in relation to a company, to a participator shall be construed accordingly.</p></wrapUp></subsection><subsection><num>(15)</num><content><p>Any appeal under section 31 of the Management Act involving any question as to the extent for the purposes of this section of a person’s interest as a participator in a company shall be to the Special Commissioners.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-174-10"><num>(10)</num><intro><p>In paragraph 1(3) of Schedule 5 to the <noteRef href="#m00123" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxation of Chargeable Gains Act 1992 (application of section 86 to section 13 gains)—</p></intro><level class="para1" eId="section-174-10-a"><num>(a)</num><content><p>in paragraph (a), for “hold shares in a company which originate” there shall be substituted “are participators in a company in respect of property which originates”;</p></content></level><level class="para1" eId="section-174-10-b"><num>(b)</num><content><p>in paragraph (b), for “the shares” there shall be substituted “so much of their interest as participators as arises from that property”; and</p></content></level><level class="para1" eId="section-174-10-c"><num>(c)</num><content><p><mod>at the end there shall be added—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><p>Subsections (12) and (13) of section 13 shall apply for the purposes of this sub-paragraph as they apply for the purposes of that section.</p></quotedStructure></mod></p></content></level></subsection><subsection eId="section-174-11"><num>(11)</num><content><p>This section applies to gains accruing on or after 28th November 1995.</p></content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-IV-chapter-VI-crossheading-cancellation-of-tax-advantages"><heading>Cancellation of tax advantages</heading><section eId="section-175"><num>175</num><heading>Transactions in certain securities</heading><subsection eId="section-175-1"><num>(1)</num><content><p>In section 704 of the Taxes Act 1988 (which relates to the cancellation of tax advantages and specifies the circumstances mentioned in section 703(1)) in paragraph D(2)(b) (companies which do not satisfy the conditions there specified with respect to their shares or stocks) for “are authorised to be dealt in on the Stock Exchange, and are so dealt in (regularly or from time to time)” there shall be substituted “are listed in the Official List of the Stock Exchange, and are dealt in on the Stock Exchange regularly or from time to time”.</p></content></subsection><subsection eId="section-175-2"><num>(2)</num><content><p>The reference in paragraph D(2)(b) of section 704 of the Taxes Act 1988 to being listed in the Official List of the Stock Exchange and being dealt in on the Stock Exchange regularly or from time to time shall be taken to include a reference to being dealt in on the Unlisted Securities Market regularly or from time to time, but this subsection is subject to subsection (3) below.</p></content></subsection><subsection eId="section-175-3"><num>(3)</num><intro><p>Subsection (2) above—</p></intro><level class="para1" eId="section-175-3-a"><num>(a)</num><content><p>so far as relating to sub-paragraph (2) of paragraph D of section 704 of the Taxes Act 1988 as it applies for the purposes of sub-paragraph (1) of that paragraph or paragraph E of that section, shall not have effect where the relevant transaction takes place after the date on which the Unlisted Securities Market closes;</p></content></level><level class="para1" eId="section-175-3-b"><num>(b)</num><intro><p>so far as relating to paragraph D of that section as it applies for the purposes of section 210(3) or 211(2) of that Act (which relate to bonus issues following, and other matters to be treated or not treated as, repayment of share capital) shall not have effect—</p></intro><level class="para2" eId="section-175-3-b-i"><num>(i)</num><content><p>in the case of section 210(3), in relation to share capital issued after that date; or</p></content></level><level class="para2" eId="section-175-3-b-ii"><num>(ii)</num><content><p>in the case of section 211(2), in relation to distributions made after that date.</p></content></level></level></subsection><subsection eId="section-175-4"><num>(4)</num><intro><p>Except as provided by subsection (3) above, this section—</p></intro><level class="para1" eId="section-175-4-a"><num>(a)</num><content><p>so far as relating to sub-paragraph (2) of paragraph D of section 704 of the Taxes Act 1988 as it applies for the purposes of sub-paragraph (1) of that paragraph or paragraph E of that section, shall have effect where the relevant transaction takes place after the passing of this Act; and</p></content></level><level class="para1" eId="section-175-4-b"><num>(b)</num><intro><p>so far as relating to paragraph D of that section as it applies for the purposes of section 210(3) or 211(2) of that Act, shall have effect—</p></intro><level class="para2" eId="section-175-4-b-i"><num>(i)</num><content><p>in the case of section 210(3), in relation to share capital issued after the passing of this Act; or</p></content></level><level class="para2" eId="section-175-4-b-ii"><num>(ii)</num><content><p>in the case of section 211(2), in relation to distributions made after the passing of this Act.</p></content></level></level></subsection><subsection eId="section-175-5"><num>(5)</num><intro><p>In this section “the relevant transaction” means—</p></intro><level class="para1" eId="section-175-5-a"><num>(a)</num><content><p>the transaction in securities mentioned in paragraph (b) of section 703(1) of the Taxes Act 1988, or</p></content></level><level class="para1" eId="section-175-5-b"><num>(b)</num><content><p>the first of the two or more such transactions mentioned in that paragraph,</p></content></level><wrapUp><p>as the case may be.</p></wrapUp></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-IV-chapter-VI-crossheading-chargeable-gains-reliefs"><heading>Chargeable gains: reliefs</heading><section eId="section-176"><num>176</num><heading>Retirement relief: age limits</heading><subsection eId="section-176-1"><num>(1)</num><content><p>In each of sections 163 and 164 of, and paragraph 5 of Schedule 6 to, the <noteRef href="#m00124" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxation of Chargeable Gains Act 1992 (retirement relief), for “the age of 55”, wherever occurring, there shall be substituted “the age of 50”.</p></content></subsection><subsection eId="section-176-2"><num>(2)</num><content><p>The amendments made by this section shall apply in relation to disposals on or after 28th November 1995.</p></content></subsection></section><section eId="section-177"><num>177</num><heading>Reinvestment relief on disposal of qualifying corporate bond</heading><content><p><mod>Section 164A of the Taxation of Chargeable Gains Act 1992 (re-investment relief) shall have effect, and be deemed always to have had effect, as if the following subsections were inserted after subsection (2)—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(2A)</num><intro><p>Where the chargeable gain referred to in subsection (1)(a) above is one which (apart from this section) would be deemed to accrue by virtue of section 116(10)(b)—</p></intro><level class="para1"><num>(a)</num><content><p>any reduction falling to be made by virtue of subsection (2)(a) above shall be treated as one made in the consideration mentioned in section 116(10)(a), instead of in the consideration for the disposal of the asset disposed of; but</p></content></level><level class="para1"><num>(b)</num><intro><p>if the disposal on which that gain is deemed to accrue is a disposal of only part of the new asset, it shall be assumed, for the purpose only of making a reduction affecting the amount of that gain—</p></intro><level class="para2"><num>(i)</num><content><p>that the disposal is a disposal of the whole of a new asset,</p></content></level><level class="para2"><num>(ii)</num><content><p>that the gain accruing on that disposal relates to an old asset consisting in the corresponding part of what was in fact the old asset, and</p></content></level><level class="para2"><num>(iii)</num><content><p>that the corresponding part of the consideration deemed to be given for what was in fact the old asset is taken to be the consideration by reference to which the amount of that gain is computed;</p></content></level><wrapUp><p>and in this subsection “new asset” and “old asset” have the same meanings as in section 116.</p></wrapUp></level></subsection><subsection><num>(2B)</num><intro><p>Where a chargeable gain accrues in accordance with subsection (12) of section 116, this Chapter shall have effect—</p></intro><level class="para1"><num>(a)</num><content><p>as if that gain were a gain accruing on the disposal of an asset; and</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to that deemed disposal, as if references in this Chapter to the consideration for the disposal were references to the sum of money falling, apart from this Chapter, to be used in computing the gain accruing under that subsection.</p></content></level></subsection></quotedStructure></mod></p></content></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-IV-chapter-VI-crossheading-special-cases"><heading>Special cases</heading><section eId="section-178"><num>178</num><heading>Sub-contractors in the construction industry</heading><subsection eId="section-178-1"><num>(1)</num><content><p><mod>In section 566 of the Taxes Act 1988 (powers to make regulations in connection with the provisions relating to sub-contractors in the construction industry), after subsection (2) there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(2A)</num><intro><p>The Board may by regulations make provision—</p></intro><level class="para1"><num>(a)</num><content><p>for the issue of documents (to be known as “registration cards”) to persons who are parties, as sub-contractors, to any contract relating to construction operations or who are likely to become such parties;</p></content></level><level class="para1"><num>(b)</num><content><p>for a registration card to contain all such information about the person to whom it is issued as may be required, for the purposes of any regulations under this section, by a person making payments under any such contract;</p></content></level><level class="para1"><num>(c)</num><content><p>for a registration card to take such form and to be valid for such period as may be prescribed by the regulations;</p></content></level><level class="para1"><num>(d)</num><content><p>for the renewal, replacement or cancellation of a registration card;</p></content></level><level class="para1"><num>(e)</num><content><p>for requiring the surrender of a registration card in such circumstances as may be specified in the regulations;</p></content></level><level class="para1"><num>(f)</num><content><p>for requiring the production of a registration card to such persons and in such circumstances as may be so specified;</p></content></level><level class="para1"><num>(g)</num><intro><p>for requiring any person who—</p></intro><level class="para2"><num>(i)</num><content><p>makes or is proposing to make payments to which section 559 applies, and</p></content></level><level class="para2"><num>(ii)</num><content><p>is a person to whom a registration card has to be produced under the regulations,</p></content></level><wrapUp><p>to take steps that ensure that it is produced to him and that he has an opportunity of inspecting it for the purpose of checking that it is a valid registration card issued to the person required to produce it.</p></wrapUp></level></subsection><subsection><num>(2B)</num><content><p>A person who fails to comply with an obligation imposed on him by virtue of subsection (2A)(g) above shall be liable to a penalty not exceeding £3,000.</p></content></subsection><subsection><num>(2C)</num><intro><p>Subject to subsection (2D) below, where—</p></intro><level class="para1"><num>(a)</num><content><p>a person who is a party to a contract relating to any construction operations (“the contractor”) makes or is proposing to make payments to which section 559 applies,</p></content></level><level class="para1"><num>(b)</num><content><p>the contractor is required by regulations under this section to make statements about another party to the contract (“the sub-contractor”) in any return, certificate or other document,</p></content></level><level class="para1"><num>(c)</num><content><p>a registration card containing the information to be stated should have been produced, in accordance with any such regulations, to the contractor, and</p></content></level><level class="para1"><num>(d)</num><content><p>the statements made in the return, certificate or other document, so far as relating to matters the information about which should have been obtainable from the card, are inaccurate or incomplete in any material respect,</p></content></level><wrapUp><p>the contractor shall be liable to a penalty not exceeding £3,000.</p></wrapUp></subsection><subsection><num>(2D)</num><intro><p>A person shall not be liable to a penalty under subsection (2C) above if—</p></intro><level class="para1"><num>(a)</num><content><p>a valid registration card issued to the sub-contractor, or a document which the contractor had reasonable grounds for believing to be such a card, was produced to the contractor and inspected by him before the statements in question were made; and</p></content></level><level class="para1"><num>(b)</num><content><p>the contractor took all such steps as were reasonable, in addition to the inspection of that card, for ensuring that the statements were accurate and complete.</p></content></level></subsection><subsection><num>(2E)</num><content><p>A person liable to a penalty under subsection (2C) above shall not, by reason only of the matters in respect of which he is liable to a penalty under that subsection, be liable to any further penalty under section 98 of the Management Act.</p></content></subsection><subsection><num>(2F)</num><content><p>Regulations under this section may make different provision for different cases.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-178-2"><num>(2)</num><content><p><mod>In the second column of the Table in section 98 of the <noteRef href="#m00125" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxes Management Act 1970 (penalties in respect of certain information provisions), for the entry relating to regulations under section 566(1) and (2) of the Taxes Act 1988 there shall be substituted the following entry—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><p>regulations under section 566(1), (2) or (2A);</p></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection></section><section eId="section-179"><num>179</num><heading>Roll-over relief in respect of ships</heading><content><p>Schedule 35 to this Act (which amends sections 33A to 33F of the <noteRef href="#m00126" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Capital Allowances Act 1990) shall have effect.</p></content></section><section eId="section-180"><num>180</num><heading>Scientific research expenditure: oil licences</heading><subsection eId="section-180-1"><num>(1)</num><content><p><mod>The Capital Allowances Act 1990 shall have effect, and be deemed always to have had effect, with the following sections inserted after section 138 (assets ceasing to belong to traders)—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>138A</num><heading>Disposal of oil licences etc</heading><subsection><num>(1)</num><intro><p>For the purposes of section 138 where—</p></intro><level class="para1"><num>(a)</num><content><p>a person (“the transferor”) disposes of any interest in an oil licence to another (“the transferee”), and</p></content></level><level class="para1"><num>(b)</num><content><p>part of the value of that interest is attributable to any allowable exploration expenditure incurred by the transferor,</p></content></level><wrapUp><p>that disposal shall be deemed (subject to section 138B) to be a disposal by which an asset representing the allowable exploration expenditure to which that part of the value is attributable ceases to belong to the transferor.</p></wrapUp></subsection><subsection><num>(2)</num><content><p>Section 138 shall have effect in relation to the disposal of an interest in an oil licence, to the extent that the disposal is treated by virtue of subsection (1) above as a disposal of an asset representing allowable exploration expenditure, as if the disposal value of the asset were an amount equal to such part of the transferee’s expenditure on acquiring the interest as it is just and reasonable to attribute to the part of the value of that interest that is attributable to the allowable exploration expenditure.</p></content></subsection><subsection><num>(3)</num><content><p>In this section and section 138B references to allowable exploration expenditure are references to any allowable scientific research expenditure of a capital nature incurred on mineral exploration and access.</p></content></subsection><subsection><num>(4)</num><intro><p>In this section and section 138B—</p></intro><hcontainer name="definition"><content><p>“foreign oil concession” means any right to search for or win overseas petroleum, being a right conferred or exercisable (whether or not by virtue of a licence) in relation to a particular area;</p></content></hcontainer><hcontainer name="definition"><intro><p>“interest” in relation to an oil licence, includes, where there is an agreement which—</p></intro><level class="para1"><num>(a)</num><content><p>relates to oil from the whole or any part of the area to which the licence applies, and</p></content></level><level class="para1"><num>(b)</num><content><p>was made before the extraction of the oil to which it relates,</p></content></level><wrapUp><p>any entitlement under that agreement to, or to a share of, either that oil or the proceeds of its sale;</p></wrapUp></hcontainer><hcontainer name="definition"><content><p>“mineral exploration and access” has the same meaning as in Part IV;</p></content></hcontainer><hcontainer name="definition"><intro><p>“oil”—</p></intro><level class="para1"><num>(a)</num><content><p>except in relation to a UK licence, means any petroleum; and</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to such a licence, has the same meaning as in Part I of the <noteRef href="#m00127" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Oil Taxation Act 1975;</p></content></level></hcontainer><hcontainer name="definition"><content><p>“oil licence” means any UK licence or foreign oil concession;</p></content></hcontainer><hcontainer name="definition"><content><p>“overseas petroleum” means any petroleum that exists in its natural condition at a place to which neither the <noteRef href="#m00128" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Petroleum (Production) Act 1934 nor the <noteRef href="#m00129" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Petroleum (Production) Act (Northern Ireland) 1964 applies;</p></content></hcontainer><hcontainer name="definition"><content><p>“petroleum” has the <noteRef href="#m00130" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>same meaning as in the Petroleum (Production) Act 1934; and</p></content></hcontainer><hcontainer name="definition"><content><p>“UK licence” means a licence within the meaning of Part I of the Oil Taxation Act 1975.</p></content></hcontainer></subsection></section><section><num>138B</num><heading>Disposal of oil licences: election for alternative tax treatment</heading><subsection><num>(1)</num><intro><p>Subsections (2) and (3) below apply where—</p></intro><level class="para1"><num>(a)</num><content><p>a person (“the transferor”) disposes of any interest in an oil licence to another (“the transferee”) during the transitional period;</p></content></level><level class="para1"><num>(b)</num><content><p>part of the value of the interest is attributable to allowable exploration expenditure incurred by the transferor; and</p></content></level><level class="para1"><num>(c)</num><content><p>an election is made in accordance with this section specifying an amount as the amount to be treated as so attributable.</p></content></level></subsection><subsection><num>(2)</num><intro><p>Section 138 shall have effect in relation to the disposal as if—</p></intro><level class="para1"><num>(a)</num><content><p>the disposal were a disposal by which an asset representing the allowable exploration expenditure ceases to belong to the transferor; and</p></content></level><level class="para1"><num>(b)</num><content><p>the disposal value of that asset were an amount equal to the amount specified in the election.</p></content></level></subsection><subsection><num>(3)</num><intro><p>For the purposes of Part IV, the amount of any expenditure incurred—</p></intro><level class="para1"><num>(a)</num><content><p>by the transferee in acquiring the interest from the transferor, or</p></content></level><level class="para1"><num>(b)</num><content><p>by any person subsequently acquiring the interest (or an interest deriving from the interest),</p></content></level><wrapUp><p>which is taken to be attributable to expenditure incurred, before the disposal to the transferee, on mineral exploration and access shall be the lesser of the amount specified in the election and the amount which, apart from this subsection, would be taken to be so attributable.</p></wrapUp></subsection><subsection><num>(4)</num><intro><p>An election—</p></intro><level class="para1"><num>(a)</num><content><p>shall be made by notice to the Board given by the transferor; and</p></content></level><level class="para1"><num>(b)</num><content><p>subject to subsection (5) below, shall not have effect unless a copy of it is served on the transferee and the transferee consents to it.</p></content></level></subsection><subsection><num>(5)</num><intro><p>If the Special Commissioners are satisfied—</p></intro><level class="para1"><num>(a)</num><content><p>that the disposal was made under or in pursuance of an agreement entered into by the transferor and the transferee on the mutual understanding that a quantified (or quantifiable) part of the value of the interest disposed of was attributable to allowable exploration expenditure, and</p></content></level><level class="para1"><num>(b)</num><content><p>that the part quantified in accordance with that understanding and the amount specified in the election are the same,</p></content></level><wrapUp><p>they may dispense with the need for the transferee to consent to the election.</p></wrapUp></subsection><subsection><num>(6)</num><content><p>Any question falling to be determined by the Special Commissioners under subsection (5) above shall be determined by them in like manner as if it were an appeal; but both the transferor and the transferee shall be entitled to appear and be heard by those Commissioners or to make representations to them in writing.</p></content></subsection><subsection><num>(7)</num><content><p>Subject to subsection (8) below, an election may specify any amount, including a nil amount, as the amount to be treated as mentioned in subsection (1)(c) above.</p></content></subsection><subsection><num>(8)</num><intro><p>Where—</p></intro><level class="para1"><num>(a)</num><content><p>a return has been made for a chargeable period of the transferor, and</p></content></level><level class="para1"><num>(b)</num><content><p>the return includes, at the time when it is made, an amount which, disregarding the provisions of this section, would be treated under section 138 as a trading receipt accruing in that period,</p></content></level><wrapUp><p>the election must not specify an amount less than the amount included in the return unless the Board agrees the lesser amount in question.</p></wrapUp></subsection><subsection><num>(9)</num><intro><p>An election made in accordance with this section—</p></intro><level class="para1"><num>(a)</num><content><p>is irrevocable; and</p></content></level><level class="para1"><num>(b)</num><content><p>shall not be varied after it is made.</p></content></level></subsection><subsection><num>(10)</num><intro><p>For the purposes of this section a disposal is a disposal made during the transitional period if it is one made—</p></intro><level class="para1"><num>(a)</num><content><p>before 13th September 1995; or</p></content></level><level class="para1"><num>(b)</num><content><p>on or after that date in pursuance of any obligation to make the disposal which, immediately before that date, was an unconditional obligation.</p></content></level></subsection><subsection><num>(11)</num><content><p>For the purposes of subsection (10) above, the fact that a third party who is not connected with the transferor or the transferee may, by exercising any right or withholding any permission, prevent the fulfilment of an obligation does not prevent the obligation from being treated as unconditional.</p></content></subsection><subsection><num>(12)</num><content><p>In subsection (11) above the reference to a third party is a reference to any person, body, government or public authority, whether within or outside the United Kingdom; and section 839 of the principal Act (connected persons) applies for the purposes of that subsection.</p></content></subsection><subsection><num>(13)</num><content><p>All such assessments and adjustments of assessments shall be made as may be necessary to give effect to this section.</p></content></subsection></section></quotedStructure></mod></p></content></subsection><subsection eId="section-180-2"><num>(2)</num><content><p>Section 151(1) of the <noteRef href="#m00131" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Capital Allowances Act 1990 (procedure on apportionments under Parts I, III to VI and Part VIII) shall have effect, and be deemed always to have had effect, as if for “VI” there were substituted “VII”.</p></content></subsection><subsection eId="section-180-3"><num>(3)</num><content><p><mod>In section 118 of the Capital Allowances Act 1990 (mineral extraction licences in the case of assets formerly owned by non-traders), the existing provisions shall become subsection (1) of that section and the following subsection shall be inserted after that subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(2)</num><content><p>Section 138A shall have effect for the purposes of subsection (1) above in relation to expenditure on mineral exploration and access as it has effect for the purposes of section 138 in relation to allowable scientific research expenditure of a capital nature.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-180-4"><num>(4)</num><content><p>Subsection (3) above applies in relation to any sale taking place on or after 13th September 1995.</p></content></subsection><subsection eId="section-180-5"><num>(5)</num><content><p>In any case to which enactments re-enacted in the <noteRef href="#m00132" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Capital Allowances Act 1990 apply instead of that Act, this section shall have effect as if it required amendments equivalent to those made by subsections (1) and (2) above to have effect, and be deemed always to have had effect, in relation to those enactments.</p></content></subsection></section><section eId="section-181"><num>181</num><heading>Overseas petroleum</heading><hcontainer name="wrapper2"><subsection eId="section-181-1"><num>(1)</num><content><p>In subsection (1) of section 196 of the <noteRef href="#m00133" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxation of Chargeable Gains Act 1992 (interpretation of sections 194 and 195), for “licence” there shall be substituted “UK licence”.</p></content></subsection><subsection eId="section-181-2"><num>(2)</num><content><p><mod>After subsection (1) of section 196 of that Act there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1A)</num><intro><p>For the purposes of section 194 a licence other than a UK licence relates to an undeveloped area at any time if, at that time—</p></intro><level class="para1"><num>(a)</num><content><p>no development has actually taken place in any part of the licensed area; and</p></content></level><level class="para1"><num>(b)</num><intro><p>no condition for the carrying out of development anywhere in that area has been satisfied—</p></intro><level class="para2"><num>(i)</num><content><p>by the grant of any consent by the authorities of a country or territory exercising jurisdiction in relation to the area; or</p></content></level><level class="para2"><num>(ii)</num><content><p>by the approval or service on the licensee, by any such authorities, of any programme of development.</p></content></level></level></subsection></quotedStructure><inline name="appendText">;</inline></mod></p></content></subsection></hcontainer><hcontainer name="wrapper2"><intro><p>and in subsection (2) of that section for “subsection (1) above” there shall be substituted “subsections (1) and (1A) above”.</p></intro><subsection eId="section-181-3"><num>(3)</num><content><p><mod>For subsection (5) of section 196 of that Act there shall be substituted the following subsections—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(5)</num><intro><p>In sections 194 and 195 and this section—</p></intro><hcontainer name="definition"><content><p>“foreign oil concession” means any right to search for or win overseas petroleum, being a right conferred or exercisable (whether or not by virtue of a licence) in relation to a particular area;</p></content></hcontainer><hcontainer name="definition"><intro><p>“interest” in relation to a licence, includes, where there is an agreement which—</p></intro><level class="para1"><num>(a)</num><content><p>relates to oil from the whole or any part of the licensed area, and</p></content></level><level class="para1"><num>(b)</num><content><p>was made before the extraction of the oil to which it relates,</p></content></level><wrapUp><p>any entitlement under that agreement to, or to a share of, either that oil or the proceeds of its sale;</p></wrapUp></hcontainer><hcontainer name="definition"><content><p>“licence” means any UK licence or foreign oil concession;</p></content></hcontainer><hcontainer name="definition"><intro><p>“licensed area” (subject to subsection (4) above)—</p></intro><level class="para1"><num>(a)</num><content><p>in relation to a UK licence, has the same meaning as in Part I of the <noteRef href="#m00134" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Oil Taxation Act 1975; and</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to a foreign oil concession, means the area to which the concession applies;</p></content></level></hcontainer><hcontainer name="definition"><intro><p>“licensee”—</p></intro><level class="para1"><num>(a)</num><content><p>in relation to a UK licence, has the same meaning as in Part I of the Oil Taxation Act 1975; and</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to a foreign oil concession, means the person with the concession or any person having an interest in it;</p></content></level></hcontainer><hcontainer name="definition"><intro><p>“oil”—</p></intro><level class="para1"><num>(a)</num><content><p>except in relation to a UK licence, means any petroleum (within the meaning of the <noteRef href="#m00135" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Petroleum (Production) Act 1934); and</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to such a licence, has the same meaning as in Part I of the Oil Taxation Act 1975;</p></content></level></hcontainer><hcontainer name="definition"><content><p>“overseas petroleum” means any oil that exists in its natural condition at a place to which neither the <noteRef href="#m00136" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Petroleum (Production) Act 1934 nor the <noteRef href="#m00137" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Petroleum (Production) Act (Northern Ireland) 1964 applies; and</p></content></hcontainer><hcontainer name="definition"><content><p>“UK licence” means a licence within the meaning of Part I of the <noteRef href="#m00138" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Oil Taxation Act 1975.</p></content></hcontainer></subsection><subsection><num>(5A)</num><content><p>References in sections 194 and 195 to a part disposal of a licence shall include references to the disposal of any interest in a licence.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-181-4"><num>(4)</num><content><p>Subsections (1) to (3) above shall have effect in relation to any disposal on or after 13th September 1995 and subsection (3) shall also have effect, and be deemed always to have had effect, for the construction of section 195 of the <noteRef href="#m00139" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxation of Chargeable Gains Act 1992 in its application to disposals before that date.</p></content></subsection><subsection eId="section-181-5"><num>(5)</num><content><p>Where enactments re-enacted in the <noteRef href="#m00140" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxation of Chargeable Gains Act 1992 apply, instead of that Act, in the case of any disposal before 13th September 1995, this section shall have effect as if it required amendments equivalent to those made by subsection (3) above to have effect, and be deemed always to have had effect, for the construction of any enactment corresponding to section 195 of that Act.</p></content></subsection></hcontainer></section><section eId="section-182"><num>182</num><heading>Controlled foreign companies</heading><content><p>Schedule 36 to this Act (which contains amendments of Chapter IV of Part XVII of the Taxes Act 1988) shall have effect in relation to accounting periods of a controlled foreign company, within the meaning of that Chapter, beginning on or after 28th November 1995.</p></content></section></hcontainer></chapter>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="part-IV-chapter-VI-crossheading-reliefs"><heading>Reliefs</heading><section eId="section-143"><num>143</num><heading>Annual payments under certain insurance policies</heading><subsection eId="section-143-1"><num>(1)</num><content><p><mod>After section 580 of the Taxes Act 1988 there shall be inserted the following sections—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>580A</num><heading>Relief from tax on annual payments under certain insurance policies</heading><subsection><num>(1)</num><intro><p>This section applies (subject to subsection (7)(b) below) in the case of any such annual payment under an insurance policy as—</p></intro><level class="para1"><num>(a)</num><content><p>apart from this section, would be brought into charge under Case III of Schedule D; or</p></content></level><level class="para1"><num>(b)</num><content><p>is equivalent to a description of payment brought into charge under Case III of that Schedule but (apart from this section) would be brought into charge under Case V of that Schedule.</p></content></level></subsection><subsection><num>(2)</num><intro><p>Subject to the following provisions of this section, the annual payment shall be exempt from income tax if—</p></intro><level class="para1"><num>(a)</num><content><p>it constitutes a benefit provided under so much of an insurance policy as provides insurance against a qualifying risk;</p></content></level><level class="para1"><num>(b)</num><content><p>the provisions of the policy by which insurance is provided against that risk are self-contained (within the meaning of section 580B);</p></content></level><level class="para1"><num>(c)</num><content><p>the only annual payments relating to that risk for which provision is made by that policy are payments in respect of a period throughout which the relevant conditions of payment are satisfied; and</p></content></level><level class="para1"><num>(d)</num><content><p>at all times while the policy has contained provisions relating to that risk, those provisions have been of a qualifying type.</p></content></level></subsection><subsection><num>(3)</num><intro><p>For the purposes of this section and section 580B a qualifying risk is any risk falling within either of the following descriptions, that is to say—</p></intro><level class="para1"><num>(a)</num><content><p>a risk that the insured will (or will in any specified way) become subject to, or to any deterioration in a condition resulting from, any physical or mental illness, disability, infirmity or defect;</p></content></level><level class="para1"><num>(b)</num><content><p>a risk that circumstances will arise as a result of which the insured will cease to be employed or will cease to carry on any trade, profession or vocation carried on by him.</p></content></level></subsection><subsection><num>(4)</num><intro><p>For the purposes of this section the relevant conditions of payment are satisfied in relation to payments under an insurance policy for so long as any of the following continues, that is to say—</p></intro><level class="para1"><num>(a)</num><content><p>an illness, disability, infirmity or defect which is insured against by the relevant part of the policy, and any related period of convalescence or rehabilitation;</p></content></level><level class="para1"><num>(b)</num><content><p>any period during which the insured is, in circumstances insured against by the relevant part of the policy, either unemployed or not carrying on a trade, profession or vocation;</p></content></level><level class="para1"><num>(c)</num><content><p>any period during which the income of the insured (apart from any benefits under the policy) is less, in circumstances so insured against, than it would have been if those circumstances had not arisen; or</p></content></level><level class="para1"><num>(d)</num><content><p>any period immediately following the end, as a result of the death of the insured, of any period falling within any of paragraphs (a) to (c) above;</p></content></level><wrapUp><p>and in this subsection “the relevant part of the policy” means so much of it as relates to insurance against one or more risks mentioned in subsection (3) above.</p></wrapUp></subsection><subsection><num>(5)</num><content><p>For the purposes of subsection (2)(d) above provisions relating to a qualifying risk are of a qualifying type if they are of such a description that their inclusion in any policy of insurance containing provisions relating only to a comparable risk would (apart from any reinsurance) involve the possibility for the insurer that a significant loss might be sustained on the amounts payable by way of premiums in respect of the risk, taken together with any return on the investment of those amounts.</p></content></subsection><subsection><num>(6)</num><intro><p>An annual payment shall not be exempt from income tax under this section if it is paid in accordance with a contract the whole or any part of any premiums under which have qualified for relief for the purposes of income tax by being deductible either—</p></intro><level class="para1"><num>(a)</num><content><p>in the computation of the insured’s income from any source; or</p></content></level><level class="para1"><num>(b)</num><content><p>from the insured’s income.</p></content></level></subsection><subsection><num>(7)</num><intro><p>Where a person takes out any insurance policy wholly or partly for the benefit of another and that other person pays or contributes to the payment of the premiums under that policy, then to the extent only that the benefits under the policy are attributable, on a just and reasonable apportionment, to the payments or contributions made by that other person—</p></intro><level class="para1"><num>(a)</num><content><p>that other person shall be treated for the purposes of this section and section 580B as the insured in relation to that policy;</p></content></level><level class="para1"><num>(b)</num><content><p>this section shall have effect in relation to those benefits, so far as comprised in payments to that other person or his spouse, as if the reference in subsection (1)(a) above to Case III of Schedule D included a reference to Schedule E; and</p></content></level><level class="para1"><num>(c)</num><content><p>subsection (6) above shall have effect as if the references to the premiums under the policy were references only to the payments or contributions made by that other person in respect of the premiums.</p></content></level></subsection><subsection><num>(8)</num><intro><p>Where—</p></intro><level class="para1"><num>(a)</num><content><p>payments are made to or in respect of any person (“the beneficiary”) under any insurance policy (“the individual policy”),</p></content></level><level class="para1"><num>(b)</num><content><p>the rights under the individual policy in accordance with which the payments are made superseded, with effect from the time when another policy ((“the employer’s policy”) ceased to apply to that person, any rights conferred under that other policy,</p></content></level><level class="para1"><num>(c)</num><content><p>the employer’s policy is or was a policy entered into wholly or partly for the benefit of persons holding office or employment under any person (“the employer”) against risks falling within subsection (3)(a) above,</p></content></level><level class="para1"><num>(d)</num><content><p>the individual policy is one entered into in pursuance of, or in accordance with, any provisions contained in the employer’s policy, and</p></content></level><level class="para1"><num>(e)</num><content><p>the beneficiary has ceased to hold office or employment under the employer as a consequence of the occurrence of anything insured against by so much of the employer’s policy as related to risks falling within subsection (3)(a) above,</p></content></level><wrapUp><p>this section shall have effect as if the employer’s policy and the individual policy were one policy.</p></wrapUp></subsection><subsection><num>(9)</num><intro><p>In the preceding provisions of this section references to the insured, in relation to any insurance policy, include references to—</p></intro><level class="para1"><num>(a)</num><content><p>the insured’s spouse; and</p></content></level><level class="para1"><num>(b)</num><content><p>in the case of a policy entered into wholly or partly for purposes connected with the meeting of liabilities arising from an actual or proposed transaction identified in the policy, any person on whom any of those liabilities will fall jointly with the insured or his spouse.</p></content></level></subsection><subsection><num>(10)</num><content><p>References in this section and section 580B to insurance against a risk include references to any insurance for the provision (otherwise than by way of indemnity) of any benefits against that risk, and references to what is insured against by a policy shall be construed accordingly.</p></content></subsection></section><section><num>580B</num><heading>Meaning of “self-contained”
for the purposes of s.580A</heading><subsection><num>(1)</num><content><p>For the purposes of section 580A the provisions of an insurance policy by which insurance is provided against a qualifying risk are self-contained unless subsection (2) or (3) below applies to the provisions of that policy so far as they relate to that risk; but, in determining whether either of those subsections so applies, regard shall be had to all the persons for whose benefit insurance is provided by that policy against that risk.</p></content></subsection><subsection><num>(2)</num><intro><p>This subsection applies to the provisions of an insurance policy so far as they relate to a qualifying risk if—</p></intro><level class="para1"><num>(a)</num><content><p>that insurance policy contains provision for the payment of benefits other than those relating to that risk;</p></content></level><level class="para1"><num>(b)</num><content><p>the terms of the policy so far as they relate to that risk, or the manner in which effect is given to those terms, would have been significantly different if the only benefits under the policy had been those relating to that risk; and</p></content></level><level class="para1"><num>(c)</num><content><p>that difference is not one relating exclusively to the fact that the amount of benefits receivable by or in respect of any person under the policy is applied for reducing the amount of other benefits payable to or in respect of that person under the policy.</p></content></level></subsection><subsection><num>(3)</num><intro><p>This subsection applies to the provisions of an insurance policy (“the relevant policy”) so far as they relate to a qualifying risk if—</p></intro><level class="para1"><num>(a)</num><content><p>the insured under that policy is, or has been, the insured under one or more other policies;</p></content></level><level class="para1"><num>(b)</num><content><p>that other policy, or each of those other policies, is in force or has been in force at a time when the relevant policy was in force or at the time immediately before the relevant policy was entered into;</p></content></level><level class="para1"><num>(c)</num><content><p>the terms of the relevant policy so far as relating to that risk, or the manner in which effect is given to those terms, would have been significantly different if the other policy or policies had not been entered into; and</p></content></level><level class="para1"><num>(d)</num><content><p>that difference is not one relating exclusively to the fact that the amount of benefits receivable by or in respect of any person under the other policy, or any of the other policies, is applied for reducing the amount of benefits payable to or in respect of that person under the relevant policy.</p></content></level></subsection><subsection><num>(4)</num><content><p>In subsections (2)(b) and (3)(c) above the references to the terms of a policy so far as they relate to a risk include references to the terms fixing any amount payable by way of premium or otherwise in respect of insurance against that risk.</p></content></subsection></section></quotedStructure></mod></p></content></subsection><subsection eId="section-143-2"><num>(2)</num><intro><p>This section has effect for the year 1996-97 and subsequent years of assessment in relation to—</p></intro><level class="para1" eId="section-143-2-a"><num>(a)</num><content><p>any payment which under the policy in question falls to be paid at any time on or after 6th April 1996; and</p></content></level><level class="para1" eId="section-143-2-b"><num>(b)</num><content><p>any payment not falling within paragraph (a) above in relation to which the conditions mentioned in subsection (3)(a) and (b) below are satisfied.</p></content></level></subsection><subsection eId="section-143-3"><num>(3)</num><intro><p>This section shall also be deemed to have had effect for earlier years of assessment in relation to any payment in relation to which the following conditions are satisfied, that is to say—</p></intro><level class="para1" eId="section-143-3-a"><num>(a)</num><content><p>the payment was made under a policy in relation to which the requirements of subsection (4) below were fulfilled; and</p></content></level><level class="para1" eId="section-143-3-b"><num>(b)</num><content><p>the policy in question provided for the right to annual payments under the policy to cease when all the liabilities in question were discharged.</p></content></level></subsection><subsection eId="section-143-4"><num>(4)</num><intro><p>The requirements of this subsection are fulfilled in relation to any policy if—</p></intro><level class="para1" eId="section-143-4-a"><num>(a)</num><content><p>the only or main purpose of the insurance under the policy was to secure that the insured would be able to meet (in whole or in part) liabilities that would or might arise from any transaction;</p></content></level><level class="para1" eId="section-143-4-b"><num>(b)</num><content><p>the policy expressly identified the transaction or, as the case may be, all the transactions (whether actual or proposed) by reference to which the insurance was taken out; and</p></content></level><level class="para1" eId="section-143-4-c"><num>(c)</num><content><p>none of the transactions which would or might give rise to the liabilities mentioned in paragraph (a) above could be one entered into after any of the circumstances insured against arose.</p></content></level></subsection><subsection eId="section-143-5"><num>(5)</num><content><p>In subsection (4) above “transaction” includes any arrangements for the provision of credit or for the supply of services to residential premises.</p></content></subsection></section><section eId="section-144"><num>144</num><heading>Vocational training</heading><subsection eId="section-144-1"><num>(1)</num><content><p>Section 32 of the <noteRef href="#m00093" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1991 (vocational training relief) shall be amended in accordance with the following provisions of this section.</p></content></subsection><subsection eId="section-144-2"><num>(2)</num><content><p><mod>In subsection (1) (application of section) for paragraph (ca) (individual has attained school leaving age etc at time of paying for the course) there shall be substituted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(ca)</num><intro><p>at the time the payment is made, the individual—</p></intro><level class="para2"><num>(i)</num><content><p>in a case where the qualifying course of vocational training is such a course by virtue only of paragraph (b) of subsection (10) below, has attained the age of thirty, or</p></content></level><level class="para2"><num>(ii)</num><content><p>in any other case, has attained school-leaving age and, if under the age of nineteen, is not a person who is being provided with full-time education at a school,</p></content></level></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-144-3"><num>(3)</num><content><p><mod>For subsection (10) (meaning of “qualifying course of vocational training”) there shall be substituted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(10)</num><intro><p>In this section “qualifying course of vocational training” means—</p></intro><level class="para1"><num>(a)</num><intro><p>any programme of activity capable of counting towards a qualification—</p></intro><level class="para2"><num>(i)</num><content><p>accredited as a National Vocational Qualification by the National Council for Vocational Qualifications; or</p></content></level><level class="para2"><num>(ii)</num><content><p>accredited as a Scottish Vocational Qualification by the Scottish Vocational Education Council; or</p></content></level></level><level class="para1"><num>(b)</num><intro><p>any course of training which—</p></intro><level class="para2"><num>(i)</num><content><p>satisfies the conditions set out in the paragraphs of section 589(1) of the Taxes Act 1988 (qualifying courses of training etc),</p></content></level><level class="para2"><num>(ii)</num><content><p>requires participation on a full-time or substantially full-time basis, and</p></content></level><level class="para2"><num>(iii)</num><content><p>extends for a period which consists of or includes four consecutive weeks,</p></content></level><wrapUp><p>but treating any time devoted to study in connection with the course as time devoted to the practical application of skills or knowledge.</p></wrapUp></level></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-144-4"><num>(4)</num><content><p>This section applies to payments made on or after 6th May 1996.</p></content></subsection></section><section eId="section-145"><num>145</num><heading>Personal reliefs for non-resident EEA nationals</heading><subsection eId="section-145-1"><num>(1)</num><content><p>In section 278(2)(a) of the Taxes Act 1988 (exclusion of non-residents from entitlement to personal reliefs not to apply to Commonwealth citizens or citizens of the Republic of Ireland), for “a citizen of the Republic of Ireland” there shall be substituted “an EEA national”.</p></content></subsection><subsection eId="section-145-2"><num>(2)</num><content><p><mod>After subsection (8) of that section (claims to be made to the Board) there shall be added the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(9)</num><content><p>In this section “EEA national” means a national of any State, other than the United Kingdom, which is a Contracting Party to the Agreement on the European Economic Area signed at Oporto on 2nd May 1992, as adjusted by the Protocol signed at Brussels on 17th March 1993.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-145-3"><num>(3)</num><content><p>This section has effect for the year 1996-97 and subsequent years of assessment.</p></content></subsection></section><section eId="section-146"><num>146</num><heading>Exemptions for charities</heading><subsection eId="section-146-1"><num>(1)</num><content><p>Section 505(1) of the Taxes Act 1988 (exemptions for charities) shall be amended as follows.</p></content></subsection><subsection eId="section-146-2"><num>(2)</num><content><p><mod>For paragraph (a) (rents etc.) there shall be substituted the following paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(a)</num><intro><p>exemption from tax under Schedules A and D in respect of any profits or gains arising in respect of rents or other receipts from an estate, interest or right in or over any land (whether situated in the United Kingdom or elsewhere) to the extent that the profits or gains—</p></intro><level class="para2"><num>(i)</num><content><p>arise in respect of rents or receipts from an estate, interest or right vested in any person for charitable purposes; and</p></content></level><level class="para2"><num>(ii)</num><content><p>are applied to charitable purposes only;</p></content></level></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-146-3"><num>(3)</num><content><p><mod>For sub-paragraph (ii) of paragraph (c) (yearly interest and annual payments) there shall be substituted the following sub-paragraphs—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para2"><num>(ii)</num><content><p>from tax under Case III of Schedule D,</p></content></level><level class="para2"><num>(iia)</num><content><p>from tax under Case IV or V of Schedule D in respect of income equivalent to income chargeable under Case III of that Schedule but arising from securities or other possessions outside the United Kingdom,</p></content></level><level class="para2"><num>(iib)</num><content><p>from tax under Case V of Schedule D in respect of income consisting in any such dividend or other distribution of a company not resident in the United Kingdom as would be chargeable to tax under Schedule F if the company were so resident, and</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-146-4"><num>(4)</num><content><p>In paragraph (e) (trading profits), after “by a charity” there shall be inserted “(whether in the United Kingdom or elsewhere)”.</p></content></subsection><subsection eId="section-146-5"><num>(5)</num><intro><p>This section has effect—</p></intro><level class="para1" eId="section-146-5-a"><num>(a)</num><content><p>for the purposes of income tax, for the year 1996-97 and subsequent years of assessment; and</p></content></level><level class="para1" eId="section-146-5-b"><num>(b)</num><content><p>for the purposes of corporation tax, in relation to accounting periods ending after 31st March 1996.</p></content></level></subsection></section><section eId="section-147"><num>147</num><heading>Withdrawal of relief for Class 4 contributions</heading><subsection eId="section-147-1"><num>(1)</num><content><p>In section 617 of the Taxes Act 1988 (social security benefits and contributions), subsection (5) (relief for Class 4 contributions) shall cease to have effect.</p></content></subsection><subsection eId="section-147-2"><num>(2)</num><intro><p>In consequence of the provision made by subsection (1) above, in paragraph 3(2) of Schedule 2 to—</p></intro><level class="para1" eId="section-147-2-a"><num>(a)</num><content><p>the <noteRef href="#m00094" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Social Security Contributions and Benefits Act 1992, and</p></content></level><level class="para1" eId="section-147-2-b"><num>(b)</num><content><p>the <noteRef href="#m00095" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Social Security Contributions and Benefits (Northern Ireland) Act 1992,</p></content></level><wrapUp><p>the words “(e) section 617(5) (relief for Class 4 contributions);” shall be omitted.</p></wrapUp></subsection><subsection eId="section-147-3"><num>(3)</num><content><p>This section shall have effect in relation to the year 1996-97 and subsequent years of assessment.</p></content></subsection></section><section eId="section-148"><num>148</num><heading>Mis-sold personal pensions etc</heading><subsection eId="section-148-1"><num>(1)</num><content><p>Income tax shall not be chargeable on any payment falling within subsection (3) or (5) below.</p></content></subsection><subsection eId="section-148-2"><num>(2)</num><content><p>Receipt of a payment falling within subsection (3) below shall not be regarded for the purposes of capital gains tax as the disposal of an asset.</p></content></subsection><subsection eId="section-148-3"><num>(3)</num><intro><p>A payment falls within this subsection if it is a capital sum by way of compensation for loss suffered, or reasonably likely to be suffered, by a person in a case where that person, or some other person, acting in reliance on bad investment advice at least some of which was given during the period beginning with 29th April 1988 and ending with 30th June 1994,—</p></intro><level class="para1" eId="section-148-3-a"><num>(a)</num><content><p>has, while eligible, or reasonably likely to become eligible, to be a member of an occupational pension scheme, instead become a member of a personal pension scheme or entered into a retirement annuity contract;</p></content></level><level class="para1" eId="section-148-3-b"><num>(b)</num><content><p>has ceased to be a member of, or to pay contributions to, an occupational pension scheme and has instead become a member of a personal pension scheme or entered into a retirement annuity contract;</p></content></level><level class="para1" eId="section-148-3-c"><num>(c)</num><content><p>has transferred to a personal pension scheme accrued rights of his under an occupational pension scheme; or</p></content></level><level class="para1" eId="section-148-3-d"><num>(d)</num><content><p>has ceased to be a member of an occupational pension scheme and has instead (by virtue of such a provision as is mentioned in section 591(2)(g) of the Taxes Act 1988) entered into arrangements for securing relevant benefits by means of an annuity contract.</p></content></level></subsection><subsection eId="section-148-4"><num>(4)</num><content><p>A payment chargeable to income tax apart from subsection (1) above may nevertheless be regarded as a capital sum for the purpose of determining whether it falls within subsection (3) above.</p></content></subsection><subsection eId="section-148-5"><num>(5)</num><intro><p>A payment falls within this subsection if and to the extent that it is a payment of interest, on the whole or any part of a capital sum such as is mentioned in subsection (3) above, for a period ending on or before the earliest date on which a determination (whether or not subsequently varied on an appeal or in any other proceedings) of the amount of the particular capital sum in question is made, whether by agreement or by a decision of—</p></intro><level class="para1" eId="section-148-5-a"><num>(a)</num><content><p>a court, tribunal or commissioner,</p></content></level><level class="para1" eId="section-148-5-b"><num>(b)</num><content><p>an arbitrator or (in Scotland) arbiter, or</p></content></level><level class="para1" eId="section-148-5-c"><num>(c)</num><content><p>any other person appointed for the purpose.</p></content></level></subsection><subsection eId="section-148-6"><num>(6)</num><intro><p>In this section—</p></intro><hcontainer name="definition"><intro><p>“bad investment advice” means investment advice in respect of which an action against the person who gave it has been, or may be, brought—</p></intro><level class="para1"><num>(a)</num><content><p>in or for negligence;</p></content></level><level class="para1"><num>(b)</num><content><p>for breach of contract;</p></content></level><level class="para1"><num>(c)</num><content><p>by reason of a breach of a fiduciary obligation; or</p></content></level><level class="para1"><num>(d)</num><content><p>by reason of a contravention which is actionable under section 62 of the <noteRef href="#m00096" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Financial Services Act 1986;</p></content></level></hcontainer><hcontainer name="definition"><content><p>“investment advice” means advice such as is mentioned in paragraph 15 of Schedule 1 to the <noteRef href="#m00097" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Financial Services Act 1986;</p></content></hcontainer><hcontainer name="definition"><intro><p>“occupational pension scheme” means—</p></intro><level class="para1"><num>(a)</num><content><p>a scheme approved, or being considered for approval, under Chapter I of Part XIV of the Taxes Act 1988 (retirement benefit schemes);</p></content></level><level class="para1"><num>(b)</num><content><p>a relevant statutory scheme, as defined in section 611A(1) of that Act; or</p></content></level><level class="para1"><num>(c)</num><content><p>a fund to which section 608 of that Act applies (superannuation funds approved before 6th April 1980 etc);</p></content></level></hcontainer><hcontainer name="definition"><content><p>“personal pension scheme” has the meaning given by section 630(1) of the Taxes Act 1988;</p></content></hcontainer><hcontainer name="definition"><content><p>“relevant benefits” has the meaning given by section 612(1) of the Taxes Act 1988;</p></content></hcontainer><hcontainer name="definition"><content><p>“retirement annuity contract” means a contract made before 1st July 1988 and approved by the Board under or by virtue of any provision of Chapter III of Part XIV of the Taxes Act 1988.</p></content></hcontainer></subsection><subsection eId="section-148-7"><num>(7)</num><content><p>This section shall have effect, and be taken always to have had effect, in relation to any payment falling within subsection (3) or (5) above, whether made before or after the passing of this Act.</p></content></subsection></section><section eId="section-149"><num>149</num><heading>Annual payments in residuary cases</heading><subsection eId="section-149-1"><num>(1)</num><intro><p>Section 347A of the Taxes Act 1988 (annual payments not a charge on the income of a payer) shall apply to any payment made on or after 6th April 1996—</p></intro><level class="para1" eId="section-149-1-a"><num>(a)</num><content><p>in pursuance of any obligation which falls within section 36(4)(a) of the <noteRef href="#m00098" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1988 (existing obligations under certain court orders), and</p></content></level><level class="para1" eId="section-149-1-b"><num>(b)</num><content><p>for the benefit, maintenance or education of a person (whether or not the person to whom the payment is made) who attained the age of 21 before 6th April 1994,</p></content></level><wrapUp><p>as if that obligation were not an existing obligation within the definition contained in section 36(4) of the Finance Act 1988.</p></wrapUp></subsection><subsection eId="section-149-2"><num>(2)</num><content><p>Subsection (1) above does not apply to any payment to which section 38 of the Finance Act 1988 (treatment of certain maintenance payments under existing obligations) applies.</p></content></subsection></section><section eId="section-150"><num>150</num><heading>Income tax exemption for periodical payments of damages and compensation for personal injury</heading><subsection eId="section-150-1"><num>(1)</num><content><p>The sections set out in Schedule 26 to this Act shall be inserted after section 329 of the <noteRef href="#m00099" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxes Act 1988.</p></content></subsection><subsection eId="section-150-2"><num>(2)</num><content><p>The first of those sections supersedes sections 329A and 329B inserted by the Finance Act 1995 and applies to payments received after the passing of this Act irrespective of when the agreement or order referred to in that section was made or took effect.</p></content></subsection><subsection eId="section-150-3"><num>(3)</num><content><p>Subsections (1) and (2) of the second of those sections supersede section 329C inserted by the <noteRef href="#m00100" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Criminal Injuries Compensation Act 1995 and apply to payments received after the passing of that Act.</p></content></subsection><subsection eId="section-150-4"><num>(4)</num><content><p>The repeal of sections 329A and 329B does not affect the operation of those sections in relation to payments received before the passing of this Act.</p></content></subsection></section></hcontainer>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-143"><num>143</num><heading>Annual payments under certain insurance policies</heading><subsection eId="section-143-1"><num>(1)</num><content><p><mod>After section 580 of the Taxes Act 1988 there shall be inserted the following sections—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>580A</num><heading>Relief from tax on annual payments under certain insurance policies</heading><subsection><num>(1)</num><intro><p>This section applies (subject to subsection (7)(b) below) in the case of any such annual payment under an insurance policy as—</p></intro><level class="para1"><num>(a)</num><content><p>apart from this section, would be brought into charge under Case III of Schedule D; or</p></content></level><level class="para1"><num>(b)</num><content><p>is equivalent to a description of payment brought into charge under Case III of that Schedule but (apart from this section) would be brought into charge under Case V of that Schedule.</p></content></level></subsection><subsection><num>(2)</num><intro><p>Subject to the following provisions of this section, the annual payment shall be exempt from income tax if—</p></intro><level class="para1"><num>(a)</num><content><p>it constitutes a benefit provided under so much of an insurance policy as provides insurance against a qualifying risk;</p></content></level><level class="para1"><num>(b)</num><content><p>the provisions of the policy by which insurance is provided against that risk are self-contained (within the meaning of section 580B);</p></content></level><level class="para1"><num>(c)</num><content><p>the only annual payments relating to that risk for which provision is made by that policy are payments in respect of a period throughout which the relevant conditions of payment are satisfied; and</p></content></level><level class="para1"><num>(d)</num><content><p>at all times while the policy has contained provisions relating to that risk, those provisions have been of a qualifying type.</p></content></level></subsection><subsection><num>(3)</num><intro><p>For the purposes of this section and section 580B a qualifying risk is any risk falling within either of the following descriptions, that is to say—</p></intro><level class="para1"><num>(a)</num><content><p>a risk that the insured will (or will in any specified way) become subject to, or to any deterioration in a condition resulting from, any physical or mental illness, disability, infirmity or defect;</p></content></level><level class="para1"><num>(b)</num><content><p>a risk that circumstances will arise as a result of which the insured will cease to be employed or will cease to carry on any trade, profession or vocation carried on by him.</p></content></level></subsection><subsection><num>(4)</num><intro><p>For the purposes of this section the relevant conditions of payment are satisfied in relation to payments under an insurance policy for so long as any of the following continues, that is to say—</p></intro><level class="para1"><num>(a)</num><content><p>an illness, disability, infirmity or defect which is insured against by the relevant part of the policy, and any related period of convalescence or rehabilitation;</p></content></level><level class="para1"><num>(b)</num><content><p>any period during which the insured is, in circumstances insured against by the relevant part of the policy, either unemployed or not carrying on a trade, profession or vocation;</p></content></level><level class="para1"><num>(c)</num><content><p>any period during which the income of the insured (apart from any benefits under the policy) is less, in circumstances so insured against, than it would have been if those circumstances had not arisen; or</p></content></level><level class="para1"><num>(d)</num><content><p>any period immediately following the end, as a result of the death of the insured, of any period falling within any of paragraphs (a) to (c) above;</p></content></level><wrapUp><p>and in this subsection “the relevant part of the policy” means so much of it as relates to insurance against one or more risks mentioned in subsection (3) above.</p></wrapUp></subsection><subsection><num>(5)</num><content><p>For the purposes of subsection (2)(d) above provisions relating to a qualifying risk are of a qualifying type if they are of such a description that their inclusion in any policy of insurance containing provisions relating only to a comparable risk would (apart from any reinsurance) involve the possibility for the insurer that a significant loss might be sustained on the amounts payable by way of premiums in respect of the risk, taken together with any return on the investment of those amounts.</p></content></subsection><subsection><num>(6)</num><intro><p>An annual payment shall not be exempt from income tax under this section if it is paid in accordance with a contract the whole or any part of any premiums under which have qualified for relief for the purposes of income tax by being deductible either—</p></intro><level class="para1"><num>(a)</num><content><p>in the computation of the insured’s income from any source; or</p></content></level><level class="para1"><num>(b)</num><content><p>from the insured’s income.</p></content></level></subsection><subsection><num>(7)</num><intro><p>Where a person takes out any insurance policy wholly or partly for the benefit of another and that other person pays or contributes to the payment of the premiums under that policy, then to the extent only that the benefits under the policy are attributable, on a just and reasonable apportionment, to the payments or contributions made by that other person—</p></intro><level class="para1"><num>(a)</num><content><p>that other person shall be treated for the purposes of this section and section 580B as the insured in relation to that policy;</p></content></level><level class="para1"><num>(b)</num><content><p>this section shall have effect in relation to those benefits, so far as comprised in payments to that other person or his spouse, as if the reference in subsection (1)(a) above to Case III of Schedule D included a reference to Schedule E; and</p></content></level><level class="para1"><num>(c)</num><content><p>subsection (6) above shall have effect as if the references to the premiums under the policy were references only to the payments or contributions made by that other person in respect of the premiums.</p></content></level></subsection><subsection><num>(8)</num><intro><p>Where—</p></intro><level class="para1"><num>(a)</num><content><p>payments are made to or in respect of any person (“the beneficiary”) under any insurance policy (“the individual policy”),</p></content></level><level class="para1"><num>(b)</num><content><p>the rights under the individual policy in accordance with which the payments are made superseded, with effect from the time when another policy ((“the employer’s policy”) ceased to apply to that person, any rights conferred under that other policy,</p></content></level><level class="para1"><num>(c)</num><content><p>the employer’s policy is or was a policy entered into wholly or partly for the benefit of persons holding office or employment under any person (“the employer”) against risks falling within subsection (3)(a) above,</p></content></level><level class="para1"><num>(d)</num><content><p>the individual policy is one entered into in pursuance of, or in accordance with, any provisions contained in the employer’s policy, and</p></content></level><level class="para1"><num>(e)</num><content><p>the beneficiary has ceased to hold office or employment under the employer as a consequence of the occurrence of anything insured against by so much of the employer’s policy as related to risks falling within subsection (3)(a) above,</p></content></level><wrapUp><p>this section shall have effect as if the employer’s policy and the individual policy were one policy.</p></wrapUp></subsection><subsection><num>(9)</num><intro><p>In the preceding provisions of this section references to the insured, in relation to any insurance policy, include references to—</p></intro><level class="para1"><num>(a)</num><content><p>the insured’s spouse; and</p></content></level><level class="para1"><num>(b)</num><content><p>in the case of a policy entered into wholly or partly for purposes connected with the meeting of liabilities arising from an actual or proposed transaction identified in the policy, any person on whom any of those liabilities will fall jointly with the insured or his spouse.</p></content></level></subsection><subsection><num>(10)</num><content><p>References in this section and section 580B to insurance against a risk include references to any insurance for the provision (otherwise than by way of indemnity) of any benefits against that risk, and references to what is insured against by a policy shall be construed accordingly.</p></content></subsection></section><section><num>580B</num><heading>Meaning of “self-contained”
for the purposes of s.580A</heading><subsection><num>(1)</num><content><p>For the purposes of section 580A the provisions of an insurance policy by which insurance is provided against a qualifying risk are self-contained unless subsection (2) or (3) below applies to the provisions of that policy so far as they relate to that risk; but, in determining whether either of those subsections so applies, regard shall be had to all the persons for whose benefit insurance is provided by that policy against that risk.</p></content></subsection><subsection><num>(2)</num><intro><p>This subsection applies to the provisions of an insurance policy so far as they relate to a qualifying risk if—</p></intro><level class="para1"><num>(a)</num><content><p>that insurance policy contains provision for the payment of benefits other than those relating to that risk;</p></content></level><level class="para1"><num>(b)</num><content><p>the terms of the policy so far as they relate to that risk, or the manner in which effect is given to those terms, would have been significantly different if the only benefits under the policy had been those relating to that risk; and</p></content></level><level class="para1"><num>(c)</num><content><p>that difference is not one relating exclusively to the fact that the amount of benefits receivable by or in respect of any person under the policy is applied for reducing the amount of other benefits payable to or in respect of that person under the policy.</p></content></level></subsection><subsection><num>(3)</num><intro><p>This subsection applies to the provisions of an insurance policy (“the relevant policy”) so far as they relate to a qualifying risk if—</p></intro><level class="para1"><num>(a)</num><content><p>the insured under that policy is, or has been, the insured under one or more other policies;</p></content></level><level class="para1"><num>(b)</num><content><p>that other policy, or each of those other policies, is in force or has been in force at a time when the relevant policy was in force or at the time immediately before the relevant policy was entered into;</p></content></level><level class="para1"><num>(c)</num><content><p>the terms of the relevant policy so far as relating to that risk, or the manner in which effect is given to those terms, would have been significantly different if the other policy or policies had not been entered into; and</p></content></level><level class="para1"><num>(d)</num><content><p>that difference is not one relating exclusively to the fact that the amount of benefits receivable by or in respect of any person under the other policy, or any of the other policies, is applied for reducing the amount of benefits payable to or in respect of that person under the relevant policy.</p></content></level></subsection><subsection><num>(4)</num><content><p>In subsections (2)(b) and (3)(c) above the references to the terms of a policy so far as they relate to a risk include references to the terms fixing any amount payable by way of premium or otherwise in respect of insurance against that risk.</p></content></subsection></section></quotedStructure></mod></p></content></subsection><subsection eId="section-143-2"><num>(2)</num><intro><p>This section has effect for the year 1996-97 and subsequent years of assessment in relation to—</p></intro><level class="para1" eId="section-143-2-a"><num>(a)</num><content><p>any payment which under the policy in question falls to be paid at any time on or after 6th April 1996; and</p></content></level><level class="para1" eId="section-143-2-b"><num>(b)</num><content><p>any payment not falling within paragraph (a) above in relation to which the conditions mentioned in subsection (3)(a) and (b) below are satisfied.</p></content></level></subsection><subsection eId="section-143-3"><num>(3)</num><intro><p>This section shall also be deemed to have had effect for earlier years of assessment in relation to any payment in relation to which the following conditions are satisfied, that is to say—</p></intro><level class="para1" eId="section-143-3-a"><num>(a)</num><content><p>the payment was made under a policy in relation to which the requirements of subsection (4) below were fulfilled; and</p></content></level><level class="para1" eId="section-143-3-b"><num>(b)</num><content><p>the policy in question provided for the right to annual payments under the policy to cease when all the liabilities in question were discharged.</p></content></level></subsection><subsection eId="section-143-4"><num>(4)</num><intro><p>The requirements of this subsection are fulfilled in relation to any policy if—</p></intro><level class="para1" eId="section-143-4-a"><num>(a)</num><content><p>the only or main purpose of the insurance under the policy was to secure that the insured would be able to meet (in whole or in part) liabilities that would or might arise from any transaction;</p></content></level><level class="para1" eId="section-143-4-b"><num>(b)</num><content><p>the policy expressly identified the transaction or, as the case may be, all the transactions (whether actual or proposed) by reference to which the insurance was taken out; and</p></content></level><level class="para1" eId="section-143-4-c"><num>(c)</num><content><p>none of the transactions which would or might give rise to the liabilities mentioned in paragraph (a) above could be one entered into after any of the circumstances insured against arose.</p></content></level></subsection><subsection eId="section-143-5"><num>(5)</num><content><p>In subsection (4) above “transaction” includes any arrangements for the provision of credit or for the supply of services to residential premises.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-143-1"><num>(1)</num><content><p><mod>After section 580 of the Taxes Act 1988 there shall be inserted the following sections—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>580A</num><heading>Relief from tax on annual payments under certain insurance policies</heading><subsection><num>(1)</num><intro><p>This section applies (subject to subsection (7)(b) below) in the case of any such annual payment under an insurance policy as—</p></intro><level class="para1"><num>(a)</num><content><p>apart from this section, would be brought into charge under Case III of Schedule D; or</p></content></level><level class="para1"><num>(b)</num><content><p>is equivalent to a description of payment brought into charge under Case III of that Schedule but (apart from this section) would be brought into charge under Case V of that Schedule.</p></content></level></subsection><subsection><num>(2)</num><intro><p>Subject to the following provisions of this section, the annual payment shall be exempt from income tax if—</p></intro><level class="para1"><num>(a)</num><content><p>it constitutes a benefit provided under so much of an insurance policy as provides insurance against a qualifying risk;</p></content></level><level class="para1"><num>(b)</num><content><p>the provisions of the policy by which insurance is provided against that risk are self-contained (within the meaning of section 580B);</p></content></level><level class="para1"><num>(c)</num><content><p>the only annual payments relating to that risk for which provision is made by that policy are payments in respect of a period throughout which the relevant conditions of payment are satisfied; and</p></content></level><level class="para1"><num>(d)</num><content><p>at all times while the policy has contained provisions relating to that risk, those provisions have been of a qualifying type.</p></content></level></subsection><subsection><num>(3)</num><intro><p>For the purposes of this section and section 580B a qualifying risk is any risk falling within either of the following descriptions, that is to say—</p></intro><level class="para1"><num>(a)</num><content><p>a risk that the insured will (or will in any specified way) become subject to, or to any deterioration in a condition resulting from, any physical or mental illness, disability, infirmity or defect;</p></content></level><level class="para1"><num>(b)</num><content><p>a risk that circumstances will arise as a result of which the insured will cease to be employed or will cease to carry on any trade, profession or vocation carried on by him.</p></content></level></subsection><subsection><num>(4)</num><intro><p>For the purposes of this section the relevant conditions of payment are satisfied in relation to payments under an insurance policy for so long as any of the following continues, that is to say—</p></intro><level class="para1"><num>(a)</num><content><p>an illness, disability, infirmity or defect which is insured against by the relevant part of the policy, and any related period of convalescence or rehabilitation;</p></content></level><level class="para1"><num>(b)</num><content><p>any period during which the insured is, in circumstances insured against by the relevant part of the policy, either unemployed or not carrying on a trade, profession or vocation;</p></content></level><level class="para1"><num>(c)</num><content><p>any period during which the income of the insured (apart from any benefits under the policy) is less, in circumstances so insured against, than it would have been if those circumstances had not arisen; or</p></content></level><level class="para1"><num>(d)</num><content><p>any period immediately following the end, as a result of the death of the insured, of any period falling within any of paragraphs (a) to (c) above;</p></content></level><wrapUp><p>and in this subsection “the relevant part of the policy” means so much of it as relates to insurance against one or more risks mentioned in subsection (3) above.</p></wrapUp></subsection><subsection><num>(5)</num><content><p>For the purposes of subsection (2)(d) above provisions relating to a qualifying risk are of a qualifying type if they are of such a description that their inclusion in any policy of insurance containing provisions relating only to a comparable risk would (apart from any reinsurance) involve the possibility for the insurer that a significant loss might be sustained on the amounts payable by way of premiums in respect of the risk, taken together with any return on the investment of those amounts.</p></content></subsection><subsection><num>(6)</num><intro><p>An annual payment shall not be exempt from income tax under this section if it is paid in accordance with a contract the whole or any part of any premiums under which have qualified for relief for the purposes of income tax by being deductible either—</p></intro><level class="para1"><num>(a)</num><content><p>in the computation of the insured’s income from any source; or</p></content></level><level class="para1"><num>(b)</num><content><p>from the insured’s income.</p></content></level></subsection><subsection><num>(7)</num><intro><p>Where a person takes out any insurance policy wholly or partly for the benefit of another and that other person pays or contributes to the payment of the premiums under that policy, then to the extent only that the benefits under the policy are attributable, on a just and reasonable apportionment, to the payments or contributions made by that other person—</p></intro><level class="para1"><num>(a)</num><content><p>that other person shall be treated for the purposes of this section and section 580B as the insured in relation to that policy;</p></content></level><level class="para1"><num>(b)</num><content><p>this section shall have effect in relation to those benefits, so far as comprised in payments to that other person or his spouse, as if the reference in subsection (1)(a) above to Case III of Schedule D included a reference to Schedule E; and</p></content></level><level class="para1"><num>(c)</num><content><p>subsection (6) above shall have effect as if the references to the premiums under the policy were references only to the payments or contributions made by that other person in respect of the premiums.</p></content></level></subsection><subsection><num>(8)</num><intro><p>Where—</p></intro><level class="para1"><num>(a)</num><content><p>payments are made to or in respect of any person (“the beneficiary”) under any insurance policy (“the individual policy”),</p></content></level><level class="para1"><num>(b)</num><content><p>the rights under the individual policy in accordance with which the payments are made superseded, with effect from the time when another policy ((“the employer’s policy”) ceased to apply to that person, any rights conferred under that other policy,</p></content></level><level class="para1"><num>(c)</num><content><p>the employer’s policy is or was a policy entered into wholly or partly for the benefit of persons holding office or employment under any person (“the employer”) against risks falling within subsection (3)(a) above,</p></content></level><level class="para1"><num>(d)</num><content><p>the individual policy is one entered into in pursuance of, or in accordance with, any provisions contained in the employer’s policy, and</p></content></level><level class="para1"><num>(e)</num><content><p>the beneficiary has ceased to hold office or employment under the employer as a consequence of the occurrence of anything insured against by so much of the employer’s policy as related to risks falling within subsection (3)(a) above,</p></content></level><wrapUp><p>this section shall have effect as if the employer’s policy and the individual policy were one policy.</p></wrapUp></subsection><subsection><num>(9)</num><intro><p>In the preceding provisions of this section references to the insured, in relation to any insurance policy, include references to—</p></intro><level class="para1"><num>(a)</num><content><p>the insured’s spouse; and</p></content></level><level class="para1"><num>(b)</num><content><p>in the case of a policy entered into wholly or partly for purposes connected with the meeting of liabilities arising from an actual or proposed transaction identified in the policy, any person on whom any of those liabilities will fall jointly with the insured or his spouse.</p></content></level></subsection><subsection><num>(10)</num><content><p>References in this section and section 580B to insurance against a risk include references to any insurance for the provision (otherwise than by way of indemnity) of any benefits against that risk, and references to what is insured against by a policy shall be construed accordingly.</p></content></subsection></section><section><num>580B</num><heading>Meaning of “self-contained”
for the purposes of s.580A</heading><subsection><num>(1)</num><content><p>For the purposes of section 580A the provisions of an insurance policy by which insurance is provided against a qualifying risk are self-contained unless subsection (2) or (3) below applies to the provisions of that policy so far as they relate to that risk; but, in determining whether either of those subsections so applies, regard shall be had to all the persons for whose benefit insurance is provided by that policy against that risk.</p></content></subsection><subsection><num>(2)</num><intro><p>This subsection applies to the provisions of an insurance policy so far as they relate to a qualifying risk if—</p></intro><level class="para1"><num>(a)</num><content><p>that insurance policy contains provision for the payment of benefits other than those relating to that risk;</p></content></level><level class="para1"><num>(b)</num><content><p>the terms of the policy so far as they relate to that risk, or the manner in which effect is given to those terms, would have been significantly different if the only benefits under the policy had been those relating to that risk; and</p></content></level><level class="para1"><num>(c)</num><content><p>that difference is not one relating exclusively to the fact that the amount of benefits receivable by or in respect of any person under the policy is applied for reducing the amount of other benefits payable to or in respect of that person under the policy.</p></content></level></subsection><subsection><num>(3)</num><intro><p>This subsection applies to the provisions of an insurance policy (“the relevant policy”) so far as they relate to a qualifying risk if—</p></intro><level class="para1"><num>(a)</num><content><p>the insured under that policy is, or has been, the insured under one or more other policies;</p></content></level><level class="para1"><num>(b)</num><content><p>that other policy, or each of those other policies, is in force or has been in force at a time when the relevant policy was in force or at the time immediately before the relevant policy was entered into;</p></content></level><level class="para1"><num>(c)</num><content><p>the terms of the relevant policy so far as relating to that risk, or the manner in which effect is given to those terms, would have been significantly different if the other policy or policies had not been entered into; and</p></content></level><level class="para1"><num>(d)</num><content><p>that difference is not one relating exclusively to the fact that the amount of benefits receivable by or in respect of any person under the other policy, or any of the other policies, is applied for reducing the amount of benefits payable to or in respect of that person under the relevant policy.</p></content></level></subsection><subsection><num>(4)</num><content><p>In subsections (2)(b) and (3)(c) above the references to the terms of a policy so far as they relate to a risk include references to the terms fixing any amount payable by way of premium or otherwise in respect of insurance against that risk.</p></content></subsection></section></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-143-2"><num>(2)</num><intro><p>This section has effect for the year 1996-97 and subsequent years of assessment in relation to—</p></intro><level class="para1" eId="section-143-2-a"><num>(a)</num><content><p>any payment which under the policy in question falls to be paid at any time on or after 6th April 1996; and</p></content></level><level class="para1" eId="section-143-2-b"><num>(b)</num><content><p>any payment not falling within paragraph (a) above in relation to which the conditions mentioned in subsection (3)(a) and (b) below are satisfied.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-143-2-a"><num>(a)</num><content><p>any payment which under the policy in question falls to be paid at any time on or after 6th April 1996; and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-143-2-b"><num>(b)</num><content><p>any payment not falling within paragraph (a) above in relation to which the conditions mentioned in subsection (3)(a) and (b) below are satisfied.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-143-3"><num>(3)</num><intro><p>This section shall also be deemed to have had effect for earlier years of assessment in relation to any payment in relation to which the following conditions are satisfied, that is to say—</p></intro><level class="para1" eId="section-143-3-a"><num>(a)</num><content><p>the payment was made under a policy in relation to which the requirements of subsection (4) below were fulfilled; and</p></content></level><level class="para1" eId="section-143-3-b"><num>(b)</num><content><p>the policy in question provided for the right to annual payments under the policy to cease when all the liabilities in question were discharged.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-143-3-a"><num>(a)</num><content><p>the payment was made under a policy in relation to which the requirements of subsection (4) below were fulfilled; and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-143-3-b"><num>(b)</num><content><p>the policy in question provided for the right to annual payments under the policy to cease when all the liabilities in question were discharged.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-143-4"><num>(4)</num><intro><p>The requirements of this subsection are fulfilled in relation to any policy if—</p></intro><level class="para1" eId="section-143-4-a"><num>(a)</num><content><p>the only or main purpose of the insurance under the policy was to secure that the insured would be able to meet (in whole or in part) liabilities that would or might arise from any transaction;</p></content></level><level class="para1" eId="section-143-4-b"><num>(b)</num><content><p>the policy expressly identified the transaction or, as the case may be, all the transactions (whether actual or proposed) by reference to which the insurance was taken out; and</p></content></level><level class="para1" eId="section-143-4-c"><num>(c)</num><content><p>none of the transactions which would or might give rise to the liabilities mentioned in paragraph (a) above could be one entered into after any of the circumstances insured against arose.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-143-4-a"><num>(a)</num><content><p>the only or main purpose of the insurance under the policy was to secure that the insured would be able to meet (in whole or in part) liabilities that would or might arise from any transaction;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-143-4-b"><num>(b)</num><content><p>the policy expressly identified the transaction or, as the case may be, all the transactions (whether actual or proposed) by reference to which the insurance was taken out; and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-143-4-c"><num>(c)</num><content><p>none of the transactions which would or might give rise to the liabilities mentioned in paragraph (a) above could be one entered into after any of the circumstances insured against arose.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-143-5"><num>(5)</num><content><p>In subsection (4) above “transaction” includes any arrangements for the provision of credit or for the supply of services to residential premises.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-144"><num>144</num><heading>Vocational training</heading><subsection eId="section-144-1"><num>(1)</num><content><p>Section 32 of the <noteRef href="#m00093" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1991 (vocational training relief) shall be amended in accordance with the following provisions of this section.</p></content></subsection><subsection eId="section-144-2"><num>(2)</num><content><p><mod>In subsection (1) (application of section) for paragraph (ca) (individual has attained school leaving age etc at time of paying for the course) there shall be substituted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(ca)</num><intro><p>at the time the payment is made, the individual—</p></intro><level class="para2"><num>(i)</num><content><p>in a case where the qualifying course of vocational training is such a course by virtue only of paragraph (b) of subsection (10) below, has attained the age of thirty, or</p></content></level><level class="para2"><num>(ii)</num><content><p>in any other case, has attained school-leaving age and, if under the age of nineteen, is not a person who is being provided with full-time education at a school,</p></content></level></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-144-3"><num>(3)</num><content><p><mod>For subsection (10) (meaning of “qualifying course of vocational training”) there shall be substituted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(10)</num><intro><p>In this section “qualifying course of vocational training” means—</p></intro><level class="para1"><num>(a)</num><intro><p>any programme of activity capable of counting towards a qualification—</p></intro><level class="para2"><num>(i)</num><content><p>accredited as a National Vocational Qualification by the National Council for Vocational Qualifications; or</p></content></level><level class="para2"><num>(ii)</num><content><p>accredited as a Scottish Vocational Qualification by the Scottish Vocational Education Council; or</p></content></level></level><level class="para1"><num>(b)</num><intro><p>any course of training which—</p></intro><level class="para2"><num>(i)</num><content><p>satisfies the conditions set out in the paragraphs of section 589(1) of the Taxes Act 1988 (qualifying courses of training etc),</p></content></level><level class="para2"><num>(ii)</num><content><p>requires participation on a full-time or substantially full-time basis, and</p></content></level><level class="para2"><num>(iii)</num><content><p>extends for a period which consists of or includes four consecutive weeks,</p></content></level><wrapUp><p>but treating any time devoted to study in connection with the course as time devoted to the practical application of skills or knowledge.</p></wrapUp></level></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-144-4"><num>(4)</num><content><p>This section applies to payments made on or after 6th May 1996.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-144-1"><num>(1)</num><content><p>Section 32 of the <noteRef href="#m00093" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1991 (vocational training relief) shall be amended in accordance with the following provisions of this section.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-144-2"><num>(2)</num><content><p><mod>In subsection (1) (application of section) for paragraph (ca) (individual has attained school leaving age etc at time of paying for the course) there shall be substituted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(ca)</num><intro><p>at the time the payment is made, the individual—</p></intro><level class="para2"><num>(i)</num><content><p>in a case where the qualifying course of vocational training is such a course by virtue only of paragraph (b) of subsection (10) below, has attained the age of thirty, or</p></content></level><level class="para2"><num>(ii)</num><content><p>in any other case, has attained school-leaving age and, if under the age of nineteen, is not a person who is being provided with full-time education at a school,</p></content></level></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-144-3"><num>(3)</num><content><p><mod>For subsection (10) (meaning of “qualifying course of vocational training”) there shall be substituted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(10)</num><intro><p>In this section “qualifying course of vocational training” means—</p></intro><level class="para1"><num>(a)</num><intro><p>any programme of activity capable of counting towards a qualification—</p></intro><level class="para2"><num>(i)</num><content><p>accredited as a National Vocational Qualification by the National Council for Vocational Qualifications; or</p></content></level><level class="para2"><num>(ii)</num><content><p>accredited as a Scottish Vocational Qualification by the Scottish Vocational Education Council; or</p></content></level></level><level class="para1"><num>(b)</num><intro><p>any course of training which—</p></intro><level class="para2"><num>(i)</num><content><p>satisfies the conditions set out in the paragraphs of section 589(1) of the Taxes Act 1988 (qualifying courses of training etc),</p></content></level><level class="para2"><num>(ii)</num><content><p>requires participation on a full-time or substantially full-time basis, and</p></content></level><level class="para2"><num>(iii)</num><content><p>extends for a period which consists of or includes four consecutive weeks,</p></content></level><wrapUp><p>but treating any time devoted to study in connection with the course as time devoted to the practical application of skills or knowledge.</p></wrapUp></level></subsection></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-144-4"><num>(4)</num><content><p>This section applies to payments made on or after 6th May 1996.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-145"><num>145</num><heading>Personal reliefs for non-resident EEA nationals</heading><subsection eId="section-145-1"><num>(1)</num><content><p>In section 278(2)(a) of the Taxes Act 1988 (exclusion of non-residents from entitlement to personal reliefs not to apply to Commonwealth citizens or citizens of the Republic of Ireland), for “a citizen of the Republic of Ireland” there shall be substituted “an EEA national”.</p></content></subsection><subsection eId="section-145-2"><num>(2)</num><content><p><mod>After subsection (8) of that section (claims to be made to the Board) there shall be added the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(9)</num><content><p>In this section “EEA national” means a national of any State, other than the United Kingdom, which is a Contracting Party to the Agreement on the European Economic Area signed at Oporto on 2nd May 1992, as adjusted by the Protocol signed at Brussels on 17th March 1993.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-145-3"><num>(3)</num><content><p>This section has effect for the year 1996-97 and subsequent years of assessment.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-145-1"><num>(1)</num><content><p>In section 278(2)(a) of the Taxes Act 1988 (exclusion of non-residents from entitlement to personal reliefs not to apply to Commonwealth citizens or citizens of the Republic of Ireland), for “a citizen of the Republic of Ireland” there shall be substituted “an EEA national”.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-145-2"><num>(2)</num><content><p><mod>After subsection (8) of that section (claims to be made to the Board) there shall be added the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(9)</num><content><p>In this section “EEA national” means a national of any State, other than the United Kingdom, which is a Contracting Party to the Agreement on the European Economic Area signed at Oporto on 2nd May 1992, as adjusted by the Protocol signed at Brussels on 17th March 1993.</p></content></subsection></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-145-3"><num>(3)</num><content><p>This section has effect for the year 1996-97 and subsequent years of assessment.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-146"><num>146</num><heading>Exemptions for charities</heading><subsection eId="section-146-1"><num>(1)</num><content><p>Section 505(1) of the Taxes Act 1988 (exemptions for charities) shall be amended as follows.</p></content></subsection><subsection eId="section-146-2"><num>(2)</num><content><p><mod>For paragraph (a) (rents etc.) there shall be substituted the following paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(a)</num><intro><p>exemption from tax under Schedules A and D in respect of any profits or gains arising in respect of rents or other receipts from an estate, interest or right in or over any land (whether situated in the United Kingdom or elsewhere) to the extent that the profits or gains—</p></intro><level class="para2"><num>(i)</num><content><p>arise in respect of rents or receipts from an estate, interest or right vested in any person for charitable purposes; and</p></content></level><level class="para2"><num>(ii)</num><content><p>are applied to charitable purposes only;</p></content></level></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-146-3"><num>(3)</num><content><p><mod>For sub-paragraph (ii) of paragraph (c) (yearly interest and annual payments) there shall be substituted the following sub-paragraphs—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para2"><num>(ii)</num><content><p>from tax under Case III of Schedule D,</p></content></level><level class="para2"><num>(iia)</num><content><p>from tax under Case IV or V of Schedule D in respect of income equivalent to income chargeable under Case III of that Schedule but arising from securities or other possessions outside the United Kingdom,</p></content></level><level class="para2"><num>(iib)</num><content><p>from tax under Case V of Schedule D in respect of income consisting in any such dividend or other distribution of a company not resident in the United Kingdom as would be chargeable to tax under Schedule F if the company were so resident, and</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-146-4"><num>(4)</num><content><p>In paragraph (e) (trading profits), after “by a charity” there shall be inserted “(whether in the United Kingdom or elsewhere)”.</p></content></subsection><subsection eId="section-146-5"><num>(5)</num><intro><p>This section has effect—</p></intro><level class="para1" eId="section-146-5-a"><num>(a)</num><content><p>for the purposes of income tax, for the year 1996-97 and subsequent years of assessment; and</p></content></level><level class="para1" eId="section-146-5-b"><num>(b)</num><content><p>for the purposes of corporation tax, in relation to accounting periods ending after 31st March 1996.</p></content></level></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-146-1"><num>(1)</num><content><p>Section 505(1) of the Taxes Act 1988 (exemptions for charities) shall be amended as follows.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-146-2"><num>(2)</num><content><p><mod>For paragraph (a) (rents etc.) there shall be substituted the following paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(a)</num><intro><p>exemption from tax under Schedules A and D in respect of any profits or gains arising in respect of rents or other receipts from an estate, interest or right in or over any land (whether situated in the United Kingdom or elsewhere) to the extent that the profits or gains—</p></intro><level class="para2"><num>(i)</num><content><p>arise in respect of rents or receipts from an estate, interest or right vested in any person for charitable purposes; and</p></content></level><level class="para2"><num>(ii)</num><content><p>are applied to charitable purposes only;</p></content></level></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-146-3"><num>(3)</num><content><p><mod>For sub-paragraph (ii) of paragraph (c) (yearly interest and annual payments) there shall be substituted the following sub-paragraphs—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para2"><num>(ii)</num><content><p>from tax under Case III of Schedule D,</p></content></level><level class="para2"><num>(iia)</num><content><p>from tax under Case IV or V of Schedule D in respect of income equivalent to income chargeable under Case III of that Schedule but arising from securities or other possessions outside the United Kingdom,</p></content></level><level class="para2"><num>(iib)</num><content><p>from tax under Case V of Schedule D in respect of income consisting in any such dividend or other distribution of a company not resident in the United Kingdom as would be chargeable to tax under Schedule F if the company were so resident, and</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-146-4"><num>(4)</num><content><p>In paragraph (e) (trading profits), after “by a charity” there shall be inserted “(whether in the United Kingdom or elsewhere)”.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-146-5"><num>(5)</num><intro><p>This section has effect—</p></intro><level class="para1" eId="section-146-5-a"><num>(a)</num><content><p>for the purposes of income tax, for the year 1996-97 and subsequent years of assessment; and</p></content></level><level class="para1" eId="section-146-5-b"><num>(b)</num><content><p>for the purposes of corporation tax, in relation to accounting periods ending after 31st March 1996.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-146-5-a"><num>(a)</num><content><p>for the purposes of income tax, for the year 1996-97 and subsequent years of assessment; and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-146-5-b"><num>(b)</num><content><p>for the purposes of corporation tax, in relation to accounting periods ending after 31st March 1996.</p></content></level>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-147"><num>147</num><heading>Withdrawal of relief for Class 4 contributions</heading><subsection eId="section-147-1"><num>(1)</num><content><p>In section 617 of the Taxes Act 1988 (social security benefits and contributions), subsection (5) (relief for Class 4 contributions) shall cease to have effect.</p></content></subsection><subsection eId="section-147-2"><num>(2)</num><intro><p>In consequence of the provision made by subsection (1) above, in paragraph 3(2) of Schedule 2 to—</p></intro><level class="para1" eId="section-147-2-a"><num>(a)</num><content><p>the <noteRef href="#m00094" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Social Security Contributions and Benefits Act 1992, and</p></content></level><level class="para1" eId="section-147-2-b"><num>(b)</num><content><p>the <noteRef href="#m00095" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Social Security Contributions and Benefits (Northern Ireland) Act 1992,</p></content></level><wrapUp><p>the words “(e) section 617(5) (relief for Class 4 contributions);” shall be omitted.</p></wrapUp></subsection><subsection eId="section-147-3"><num>(3)</num><content><p>This section shall have effect in relation to the year 1996-97 and subsequent years of assessment.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-147-1"><num>(1)</num><content><p>In section 617 of the Taxes Act 1988 (social security benefits and contributions), subsection (5) (relief for Class 4 contributions) shall cease to have effect.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-147-2"><num>(2)</num><intro><p>In consequence of the provision made by subsection (1) above, in paragraph 3(2) of Schedule 2 to—</p></intro><level class="para1" eId="section-147-2-a"><num>(a)</num><content><p>the <noteRef href="#m00094" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Social Security Contributions and Benefits Act 1992, and</p></content></level><level class="para1" eId="section-147-2-b"><num>(b)</num><content><p>the <noteRef href="#m00095" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Social Security Contributions and Benefits (Northern Ireland) Act 1992,</p></content></level><wrapUp><p>the words “(e) section 617(5) (relief for Class 4 contributions);” shall be omitted.</p></wrapUp></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-147-2-a"><num>(a)</num><content><p>the <noteRef href="#m00094" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Social Security Contributions and Benefits Act 1992, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-147-2-b"><num>(b)</num><content><p>the <noteRef href="#m00095" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Social Security Contributions and Benefits (Northern Ireland) Act 1992,</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-147-3"><num>(3)</num><content><p>This section shall have effect in relation to the year 1996-97 and subsequent years of assessment.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-148"><num>148</num><heading>Mis-sold personal pensions etc</heading><subsection eId="section-148-1"><num>(1)</num><content><p>Income tax shall not be chargeable on any payment falling within subsection (3) or (5) below.</p></content></subsection><subsection eId="section-148-2"><num>(2)</num><content><p>Receipt of a payment falling within subsection (3) below shall not be regarded for the purposes of capital gains tax as the disposal of an asset.</p></content></subsection><subsection eId="section-148-3"><num>(3)</num><intro><p>A payment falls within this subsection if it is a capital sum by way of compensation for loss suffered, or reasonably likely to be suffered, by a person in a case where that person, or some other person, acting in reliance on bad investment advice at least some of which was given during the period beginning with 29th April 1988 and ending with 30th June 1994,—</p></intro><level class="para1" eId="section-148-3-a"><num>(a)</num><content><p>has, while eligible, or reasonably likely to become eligible, to be a member of an occupational pension scheme, instead become a member of a personal pension scheme or entered into a retirement annuity contract;</p></content></level><level class="para1" eId="section-148-3-b"><num>(b)</num><content><p>has ceased to be a member of, or to pay contributions to, an occupational pension scheme and has instead become a member of a personal pension scheme or entered into a retirement annuity contract;</p></content></level><level class="para1" eId="section-148-3-c"><num>(c)</num><content><p>has transferred to a personal pension scheme accrued rights of his under an occupational pension scheme; or</p></content></level><level class="para1" eId="section-148-3-d"><num>(d)</num><content><p>has ceased to be a member of an occupational pension scheme and has instead (by virtue of such a provision as is mentioned in section 591(2)(g) of the Taxes Act 1988) entered into arrangements for securing relevant benefits by means of an annuity contract.</p></content></level></subsection><subsection eId="section-148-4"><num>(4)</num><content><p>A payment chargeable to income tax apart from subsection (1) above may nevertheless be regarded as a capital sum for the purpose of determining whether it falls within subsection (3) above.</p></content></subsection><subsection eId="section-148-5"><num>(5)</num><intro><p>A payment falls within this subsection if and to the extent that it is a payment of interest, on the whole or any part of a capital sum such as is mentioned in subsection (3) above, for a period ending on or before the earliest date on which a determination (whether or not subsequently varied on an appeal or in any other proceedings) of the amount of the particular capital sum in question is made, whether by agreement or by a decision of—</p></intro><level class="para1" eId="section-148-5-a"><num>(a)</num><content><p>a court, tribunal or commissioner,</p></content></level><level class="para1" eId="section-148-5-b"><num>(b)</num><content><p>an arbitrator or (in Scotland) arbiter, or</p></content></level><level class="para1" eId="section-148-5-c"><num>(c)</num><content><p>any other person appointed for the purpose.</p></content></level></subsection><subsection eId="section-148-6"><num>(6)</num><intro><p>In this section—</p></intro><hcontainer name="definition"><intro><p>“bad investment advice” means investment advice in respect of which an action against the person who gave it has been, or may be, brought—</p></intro><level class="para1"><num>(a)</num><content><p>in or for negligence;</p></content></level><level class="para1"><num>(b)</num><content><p>for breach of contract;</p></content></level><level class="para1"><num>(c)</num><content><p>by reason of a breach of a fiduciary obligation; or</p></content></level><level class="para1"><num>(d)</num><content><p>by reason of a contravention which is actionable under section 62 of the <noteRef href="#m00096" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Financial Services Act 1986;</p></content></level></hcontainer><hcontainer name="definition"><content><p>“investment advice” means advice such as is mentioned in paragraph 15 of Schedule 1 to the <noteRef href="#m00097" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Financial Services Act 1986;</p></content></hcontainer><hcontainer name="definition"><intro><p>“occupational pension scheme” means—</p></intro><level class="para1"><num>(a)</num><content><p>a scheme approved, or being considered for approval, under Chapter I of Part XIV of the Taxes Act 1988 (retirement benefit schemes);</p></content></level><level class="para1"><num>(b)</num><content><p>a relevant statutory scheme, as defined in section 611A(1) of that Act; or</p></content></level><level class="para1"><num>(c)</num><content><p>a fund to which section 608 of that Act applies (superannuation funds approved before 6th April 1980 etc);</p></content></level></hcontainer><hcontainer name="definition"><content><p>“personal pension scheme” has the meaning given by section 630(1) of the Taxes Act 1988;</p></content></hcontainer><hcontainer name="definition"><content><p>“relevant benefits” has the meaning given by section 612(1) of the Taxes Act 1988;</p></content></hcontainer><hcontainer name="definition"><content><p>“retirement annuity contract” means a contract made before 1st July 1988 and approved by the Board under or by virtue of any provision of Chapter III of Part XIV of the Taxes Act 1988.</p></content></hcontainer></subsection><subsection eId="section-148-7"><num>(7)</num><content><p>This section shall have effect, and be taken always to have had effect, in relation to any payment falling within subsection (3) or (5) above, whether made before or after the passing of this Act.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-148-1"><num>(1)</num><content><p>Income tax shall not be chargeable on any payment falling within subsection (3) or (5) below.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-148-2"><num>(2)</num><content><p>Receipt of a payment falling within subsection (3) below shall not be regarded for the purposes of capital gains tax as the disposal of an asset.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-148-3"><num>(3)</num><intro><p>A payment falls within this subsection if it is a capital sum by way of compensation for loss suffered, or reasonably likely to be suffered, by a person in a case where that person, or some other person, acting in reliance on bad investment advice at least some of which was given during the period beginning with 29th April 1988 and ending with 30th June 1994,—</p></intro><level class="para1" eId="section-148-3-a"><num>(a)</num><content><p>has, while eligible, or reasonably likely to become eligible, to be a member of an occupational pension scheme, instead become a member of a personal pension scheme or entered into a retirement annuity contract;</p></content></level><level class="para1" eId="section-148-3-b"><num>(b)</num><content><p>has ceased to be a member of, or to pay contributions to, an occupational pension scheme and has instead become a member of a personal pension scheme or entered into a retirement annuity contract;</p></content></level><level class="para1" eId="section-148-3-c"><num>(c)</num><content><p>has transferred to a personal pension scheme accrued rights of his under an occupational pension scheme; or</p></content></level><level class="para1" eId="section-148-3-d"><num>(d)</num><content><p>has ceased to be a member of an occupational pension scheme and has instead (by virtue of such a provision as is mentioned in section 591(2)(g) of the Taxes Act 1988) entered into arrangements for securing relevant benefits by means of an annuity contract.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-148-3-a"><num>(a)</num><content><p>has, while eligible, or reasonably likely to become eligible, to be a member of an occupational pension scheme, instead become a member of a personal pension scheme or entered into a retirement annuity contract;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-148-3-b"><num>(b)</num><content><p>has ceased to be a member of, or to pay contributions to, an occupational pension scheme and has instead become a member of a personal pension scheme or entered into a retirement annuity contract;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-148-3-c"><num>(c)</num><content><p>has transferred to a personal pension scheme accrued rights of his under an occupational pension scheme; or</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-148-3-d"><num>(d)</num><content><p>has ceased to be a member of an occupational pension scheme and has instead (by virtue of such a provision as is mentioned in section 591(2)(g) of the Taxes Act 1988) entered into arrangements for securing relevant benefits by means of an annuity contract.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-148-4"><num>(4)</num><content><p>A payment chargeable to income tax apart from subsection (1) above may nevertheless be regarded as a capital sum for the purpose of determining whether it falls within subsection (3) above.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-148-5"><num>(5)</num><intro><p>A payment falls within this subsection if and to the extent that it is a payment of interest, on the whole or any part of a capital sum such as is mentioned in subsection (3) above, for a period ending on or before the earliest date on which a determination (whether or not subsequently varied on an appeal or in any other proceedings) of the amount of the particular capital sum in question is made, whether by agreement or by a decision of—</p></intro><level class="para1" eId="section-148-5-a"><num>(a)</num><content><p>a court, tribunal or commissioner,</p></content></level><level class="para1" eId="section-148-5-b"><num>(b)</num><content><p>an arbitrator or (in Scotland) arbiter, or</p></content></level><level class="para1" eId="section-148-5-c"><num>(c)</num><content><p>any other person appointed for the purpose.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-148-5-a"><num>(a)</num><content><p>a court, tribunal or commissioner,</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-148-5-b"><num>(b)</num><content><p>an arbitrator or (in Scotland) arbiter, or</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-148-5-c"><num>(c)</num><content><p>any other person appointed for the purpose.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-148-6"><num>(6)</num><intro><p>In this section—</p></intro><hcontainer name="definition"><intro><p>“bad investment advice” means investment advice in respect of which an action against the person who gave it has been, or may be, brought—</p></intro><level class="para1"><num>(a)</num><content><p>in or for negligence;</p></content></level><level class="para1"><num>(b)</num><content><p>for breach of contract;</p></content></level><level class="para1"><num>(c)</num><content><p>by reason of a breach of a fiduciary obligation; or</p></content></level><level class="para1"><num>(d)</num><content><p>by reason of a contravention which is actionable under section 62 of the <noteRef href="#m00096" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Financial Services Act 1986;</p></content></level></hcontainer><hcontainer name="definition"><content><p>“investment advice” means advice such as is mentioned in paragraph 15 of Schedule 1 to the <noteRef href="#m00097" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Financial Services Act 1986;</p></content></hcontainer><hcontainer name="definition"><intro><p>“occupational pension scheme” means—</p></intro><level class="para1"><num>(a)</num><content><p>a scheme approved, or being considered for approval, under Chapter I of Part XIV of the Taxes Act 1988 (retirement benefit schemes);</p></content></level><level class="para1"><num>(b)</num><content><p>a relevant statutory scheme, as defined in section 611A(1) of that Act; or</p></content></level><level class="para1"><num>(c)</num><content><p>a fund to which section 608 of that Act applies (superannuation funds approved before 6th April 1980 etc);</p></content></level></hcontainer><hcontainer name="definition"><content><p>“personal pension scheme” has the meaning given by section 630(1) of the Taxes Act 1988;</p></content></hcontainer><hcontainer name="definition"><content><p>“relevant benefits” has the meaning given by section 612(1) of the Taxes Act 1988;</p></content></hcontainer><hcontainer name="definition"><content><p>“retirement annuity contract” means a contract made before 1st July 1988 and approved by the Board under or by virtue of any provision of Chapter III of Part XIV of the Taxes Act 1988.</p></content></hcontainer></subsection>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="definition"><intro><p>“occupational pension scheme” means—</p></intro><level class="para1"><num>(a)</num><content><p>a scheme approved, or being considered for approval, under Chapter I of Part XIV of the Taxes Act 1988 (retirement benefit schemes);</p></content></level><level class="para1"><num>(b)</num><content><p>a relevant statutory scheme, as defined in section 611A(1) of that Act; or</p></content></level><level class="para1"><num>(c)</num><content><p>a fund to which section 608 of that Act applies (superannuation funds approved before 6th April 1980 etc);</p></content></level></hcontainer>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1"><num>(a)</num><content><p>a scheme approved, or being considered for approval, under Chapter I of Part XIV of the Taxes Act 1988 (retirement benefit schemes);</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1"><num>(b)</num><content><p>a relevant statutory scheme, as defined in section 611A(1) of that Act; or</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1"><num>(c)</num><content><p>a fund to which section 608 of that Act applies (superannuation funds approved before 6th April 1980 etc);</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-148-7"><num>(7)</num><content><p>This section shall have effect, and be taken always to have had effect, in relation to any payment falling within subsection (3) or (5) above, whether made before or after the passing of this Act.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-149"><num>149</num><heading>Annual payments in residuary cases</heading><subsection eId="section-149-1"><num>(1)</num><intro><p>Section 347A of the Taxes Act 1988 (annual payments not a charge on the income of a payer) shall apply to any payment made on or after 6th April 1996—</p></intro><level class="para1" eId="section-149-1-a"><num>(a)</num><content><p>in pursuance of any obligation which falls within section 36(4)(a) of the <noteRef href="#m00098" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1988 (existing obligations under certain court orders), and</p></content></level><level class="para1" eId="section-149-1-b"><num>(b)</num><content><p>for the benefit, maintenance or education of a person (whether or not the person to whom the payment is made) who attained the age of 21 before 6th April 1994,</p></content></level><wrapUp><p>as if that obligation were not an existing obligation within the definition contained in section 36(4) of the Finance Act 1988.</p></wrapUp></subsection><subsection eId="section-149-2"><num>(2)</num><content><p>Subsection (1) above does not apply to any payment to which section 38 of the Finance Act 1988 (treatment of certain maintenance payments under existing obligations) applies.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-149-1"><num>(1)</num><intro><p>Section 347A of the Taxes Act 1988 (annual payments not a charge on the income of a payer) shall apply to any payment made on or after 6th April 1996—</p></intro><level class="para1" eId="section-149-1-a"><num>(a)</num><content><p>in pursuance of any obligation which falls within section 36(4)(a) of the <noteRef href="#m00098" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1988 (existing obligations under certain court orders), and</p></content></level><level class="para1" eId="section-149-1-b"><num>(b)</num><content><p>for the benefit, maintenance or education of a person (whether or not the person to whom the payment is made) who attained the age of 21 before 6th April 1994,</p></content></level><wrapUp><p>as if that obligation were not an existing obligation within the definition contained in section 36(4) of the Finance Act 1988.</p></wrapUp></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-149-1-a"><num>(a)</num><content><p>in pursuance of any obligation which falls within section 36(4)(a) of the <noteRef href="#m00098" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1988 (existing obligations under certain court orders), and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-149-1-b"><num>(b)</num><content><p>for the benefit, maintenance or education of a person (whether or not the person to whom the payment is made) who attained the age of 21 before 6th April 1994,</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-149-2"><num>(2)</num><content><p>Subsection (1) above does not apply to any payment to which section 38 of the Finance Act 1988 (treatment of certain maintenance payments under existing obligations) applies.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-150"><num>150</num><heading>Income tax exemption for periodical payments of damages and compensation for personal injury</heading><subsection eId="section-150-1"><num>(1)</num><content><p>The sections set out in Schedule 26 to this Act shall be inserted after section 329 of the <noteRef href="#m00099" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxes Act 1988.</p></content></subsection><subsection eId="section-150-2"><num>(2)</num><content><p>The first of those sections supersedes sections 329A and 329B inserted by the Finance Act 1995 and applies to payments received after the passing of this Act irrespective of when the agreement or order referred to in that section was made or took effect.</p></content></subsection><subsection eId="section-150-3"><num>(3)</num><content><p>Subsections (1) and (2) of the second of those sections supersede section 329C inserted by the <noteRef href="#m00100" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Criminal Injuries Compensation Act 1995 and apply to payments received after the passing of that Act.</p></content></subsection><subsection eId="section-150-4"><num>(4)</num><content><p>The repeal of sections 329A and 329B does not affect the operation of those sections in relation to payments received before the passing of this Act.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-150-1"><num>(1)</num><content><p>The sections set out in Schedule 26 to this Act shall be inserted after section 329 of the <noteRef href="#m00099" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxes Act 1988.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-150-2"><num>(2)</num><content><p>The first of those sections supersedes sections 329A and 329B inserted by the Finance Act 1995 and applies to payments received after the passing of this Act irrespective of when the agreement or order referred to in that section was made or took effect.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-150-3"><num>(3)</num><content><p>Subsections (1) and (2) of the second of those sections supersede section 329C inserted by the <noteRef href="#m00100" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Criminal Injuries Compensation Act 1995 and apply to payments received after the passing of that Act.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-150-4"><num>(4)</num><content><p>The repeal of sections 329A and 329B does not affect the operation of those sections in relation to payments received before the passing of this Act.</p></content></subsection>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="part-IV-chapter-VI-crossheading-taxation-of-benefits"><heading>Taxation of benefits</heading><section eId="section-151"><num>151</num><heading>Benefits under pilot schemes</heading><subsection eId="section-151-1"><num>(1)</num><intro><p>The Treasury may by order make provision for the Income Tax Acts to have effect in relation to any amount of benefit payable by virtue of a Government pilot scheme as if it was, as they think fit, either—</p></intro><level class="para1" eId="section-151-1-a"><num>(a)</num><content><p>wholly or partly exempt from income tax and, accordingly, to be disregarded in computing the amount of any receipts brought into account for income tax purposes; or</p></content></level><level class="para1" eId="section-151-1-b"><num>(b)</num><content><p>to the extent specified in the order, to be brought into account for the purposes of income tax as income of a description so specified or as a receipt of a description so specified.</p></content></level></subsection><subsection eId="section-151-2"><num>(2)</num><content><p>The Treasury may by order provide for any amount of benefit payable by virtue of a Government pilot scheme to be left out of account, to the extent specified in the order, in the determination for the purposes of section 153 of the <noteRef href="#m00101" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Capital Allowances Act 1990 (subsidies etc.) of how far any expenditure has been or is to be met directly or indirectly by the Crown or by an authority or person other than the person actually incurring it.</p></content></subsection><subsection eId="section-151-3"><num>(3)</num><intro><p>In this section “Government pilot scheme” means any arrangements (whether or not contained in a scheme) which—</p></intro><level class="para1" eId="section-151-3-a"><num>(a)</num><content><p>are made, under any enactment or otherwise, by the Secretary of State or any Northern Ireland department;</p></content></level><level class="para1" eId="section-151-3-b"><num>(b)</num><intro><p>make provision for or about the payment of amounts of benefit either—</p></intro><level class="para2" eId="section-151-3-b-i"><num>(i)</num><content><p>for purposes that are similar to those for which any social security or comparable benefit is payable; or</p></content></level><level class="para2" eId="section-151-3-b-ii"><num>(ii)</num><content><p>for purposes connected with the carrying out of any functions of the Secretary of State or any such department in relation to employment or training for employment;</p></content></level></level><level class="para1" eId="section-151-3-c"><num>(c)</num><content><p>are arrangements relating to a temporary experimental period; and</p></content></level><level class="para1" eId="section-151-3-d"><num>(d)</num><content><p>are made wholly or partly for the purpose of facilitating a decision as to whether, or to what extent, it is desirable for provision to be made on a permanent basis for or in relation to any benefit.</p></content></level></subsection><subsection eId="section-151-4"><num>(4)</num><content><p>In subsection (3)(b) above the reference to making provision for or about the payment of amounts of benefit for purposes that are similar to those for which any social security or comparable benefit is payable shall include a reference to making provision by virtue of which there is a modification of the conditions of entitlement to, or the conditions for the payment of, an existing social security or comparable benefit.</p></content></subsection><subsection eId="section-151-5"><num>(5)</num><intro><p>An order under this section may—</p></intro><level class="para1" eId="section-151-5-a"><num>(a)</num><content><p>make different provision for different cases, and</p></content></level><level class="para1" eId="section-151-5-b"><num>(b)</num><content><p>contain such incidental, supplemental, consequential and transitional provision (including provision modifying provision made by or under the Income Tax Acts) as the Treasury may think fit.</p></content></level></subsection><subsection eId="section-151-6"><num>(6)</num><content><p>In this section “benefit” includes any allowance, grant or other amount the whole or any part of which is payable directly or indirectly out of public funds.</p></content></subsection><subsection eId="section-151-7"><num>(7)</num><intro><p>The power to make an order under this section—</p></intro><level class="para1" eId="section-151-7-a"><num>(a)</num><content><p>shall be exercisable for the year 1996-97 and subsequent years of assessment; and</p></content></level><level class="para1" eId="section-151-7-b"><num>(b)</num><content><p>so far as exercisable for the year 1996-97, shall be exercisable in relation to benefits, allowances and other amounts paid at times on or after 6th April 1996 but before the making of the order.</p></content></level></subsection><subsection eId="section-151-8"><num>(8)</num><content><p>The Treasury shall not make an order under this section containing any such provision as is mentioned in subsection (1)(b) above unless a draft of the order has been laid before, and approved by a resolution of, the House of Commons.</p></content></subsection></section><section eId="section-152"><num>152</num><heading>Jobfinder’s grant</heading><subsection eId="section-152-1"><num>(1)</num><content><p>The Income Tax Acts shall have effect, and be deemed always to have had effect, as if jobfinder’s grant were exempt from income tax and, accordingly, were to be disregarded in computing the amount of any receipts brought into account for income tax purposes.</p></content></subsection><subsection eId="section-152-2"><num>(2)</num><content><p>In this section “jobfinder’s grant” means grant paid under that name by virtue of arrangements made in pursuance of section 2 of the <noteRef href="#m00102" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Employment and Training Act 1973 or section 1 of the <noteRef href="#m00103" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Employment and Training Act (Northern Ireland) 1950 (arrangements for assisting persons to select, train for, obtain or retain employment).</p></content></subsection></section></hcontainer>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-151"><num>151</num><heading>Benefits under pilot schemes</heading><subsection eId="section-151-1"><num>(1)</num><intro><p>The Treasury may by order make provision for the Income Tax Acts to have effect in relation to any amount of benefit payable by virtue of a Government pilot scheme as if it was, as they think fit, either—</p></intro><level class="para1" eId="section-151-1-a"><num>(a)</num><content><p>wholly or partly exempt from income tax and, accordingly, to be disregarded in computing the amount of any receipts brought into account for income tax purposes; or</p></content></level><level class="para1" eId="section-151-1-b"><num>(b)</num><content><p>to the extent specified in the order, to be brought into account for the purposes of income tax as income of a description so specified or as a receipt of a description so specified.</p></content></level></subsection><subsection eId="section-151-2"><num>(2)</num><content><p>The Treasury may by order provide for any amount of benefit payable by virtue of a Government pilot scheme to be left out of account, to the extent specified in the order, in the determination for the purposes of section 153 of the <noteRef href="#m00101" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Capital Allowances Act 1990 (subsidies etc.) of how far any expenditure has been or is to be met directly or indirectly by the Crown or by an authority or person other than the person actually incurring it.</p></content></subsection><subsection eId="section-151-3"><num>(3)</num><intro><p>In this section “Government pilot scheme” means any arrangements (whether or not contained in a scheme) which—</p></intro><level class="para1" eId="section-151-3-a"><num>(a)</num><content><p>are made, under any enactment or otherwise, by the Secretary of State or any Northern Ireland department;</p></content></level><level class="para1" eId="section-151-3-b"><num>(b)</num><intro><p>make provision for or about the payment of amounts of benefit either—</p></intro><level class="para2" eId="section-151-3-b-i"><num>(i)</num><content><p>for purposes that are similar to those for which any social security or comparable benefit is payable; or</p></content></level><level class="para2" eId="section-151-3-b-ii"><num>(ii)</num><content><p>for purposes connected with the carrying out of any functions of the Secretary of State or any such department in relation to employment or training for employment;</p></content></level></level><level class="para1" eId="section-151-3-c"><num>(c)</num><content><p>are arrangements relating to a temporary experimental period; and</p></content></level><level class="para1" eId="section-151-3-d"><num>(d)</num><content><p>are made wholly or partly for the purpose of facilitating a decision as to whether, or to what extent, it is desirable for provision to be made on a permanent basis for or in relation to any benefit.</p></content></level></subsection><subsection eId="section-151-4"><num>(4)</num><content><p>In subsection (3)(b) above the reference to making provision for or about the payment of amounts of benefit for purposes that are similar to those for which any social security or comparable benefit is payable shall include a reference to making provision by virtue of which there is a modification of the conditions of entitlement to, or the conditions for the payment of, an existing social security or comparable benefit.</p></content></subsection><subsection eId="section-151-5"><num>(5)</num><intro><p>An order under this section may—</p></intro><level class="para1" eId="section-151-5-a"><num>(a)</num><content><p>make different provision for different cases, and</p></content></level><level class="para1" eId="section-151-5-b"><num>(b)</num><content><p>contain such incidental, supplemental, consequential and transitional provision (including provision modifying provision made by or under the Income Tax Acts) as the Treasury may think fit.</p></content></level></subsection><subsection eId="section-151-6"><num>(6)</num><content><p>In this section “benefit” includes any allowance, grant or other amount the whole or any part of which is payable directly or indirectly out of public funds.</p></content></subsection><subsection eId="section-151-7"><num>(7)</num><intro><p>The power to make an order under this section—</p></intro><level class="para1" eId="section-151-7-a"><num>(a)</num><content><p>shall be exercisable for the year 1996-97 and subsequent years of assessment; and</p></content></level><level class="para1" eId="section-151-7-b"><num>(b)</num><content><p>so far as exercisable for the year 1996-97, shall be exercisable in relation to benefits, allowances and other amounts paid at times on or after 6th April 1996 but before the making of the order.</p></content></level></subsection><subsection eId="section-151-8"><num>(8)</num><content><p>The Treasury shall not make an order under this section containing any such provision as is mentioned in subsection (1)(b) above unless a draft of the order has been laid before, and approved by a resolution of, the House of Commons.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-151-1"><num>(1)</num><intro><p>The Treasury may by order make provision for the Income Tax Acts to have effect in relation to any amount of benefit payable by virtue of a Government pilot scheme as if it was, as they think fit, either—</p></intro><level class="para1" eId="section-151-1-a"><num>(a)</num><content><p>wholly or partly exempt from income tax and, accordingly, to be disregarded in computing the amount of any receipts brought into account for income tax purposes; or</p></content></level><level class="para1" eId="section-151-1-b"><num>(b)</num><content><p>to the extent specified in the order, to be brought into account for the purposes of income tax as income of a description so specified or as a receipt of a description so specified.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-151-1-a"><num>(a)</num><content><p>wholly or partly exempt from income tax and, accordingly, to be disregarded in computing the amount of any receipts brought into account for income tax purposes; or</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-151-1-b"><num>(b)</num><content><p>to the extent specified in the order, to be brought into account for the purposes of income tax as income of a description so specified or as a receipt of a description so specified.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-151-2"><num>(2)</num><content><p>The Treasury may by order provide for any amount of benefit payable by virtue of a Government pilot scheme to be left out of account, to the extent specified in the order, in the determination for the purposes of section 153 of the <noteRef href="#m00101" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Capital Allowances Act 1990 (subsidies etc.) of how far any expenditure has been or is to be met directly or indirectly by the Crown or by an authority or person other than the person actually incurring it.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-151-3"><num>(3)</num><intro><p>In this section “Government pilot scheme” means any arrangements (whether or not contained in a scheme) which—</p></intro><level class="para1" eId="section-151-3-a"><num>(a)</num><content><p>are made, under any enactment or otherwise, by the Secretary of State or any Northern Ireland department;</p></content></level><level class="para1" eId="section-151-3-b"><num>(b)</num><intro><p>make provision for or about the payment of amounts of benefit either—</p></intro><level class="para2" eId="section-151-3-b-i"><num>(i)</num><content><p>for purposes that are similar to those for which any social security or comparable benefit is payable; or</p></content></level><level class="para2" eId="section-151-3-b-ii"><num>(ii)</num><content><p>for purposes connected with the carrying out of any functions of the Secretary of State or any such department in relation to employment or training for employment;</p></content></level></level><level class="para1" eId="section-151-3-c"><num>(c)</num><content><p>are arrangements relating to a temporary experimental period; and</p></content></level><level class="para1" eId="section-151-3-d"><num>(d)</num><content><p>are made wholly or partly for the purpose of facilitating a decision as to whether, or to what extent, it is desirable for provision to be made on a permanent basis for or in relation to any benefit.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-151-3-a"><num>(a)</num><content><p>are made, under any enactment or otherwise, by the Secretary of State or any Northern Ireland department;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-151-3-b"><num>(b)</num><intro><p>make provision for or about the payment of amounts of benefit either—</p></intro><level class="para2" eId="section-151-3-b-i"><num>(i)</num><content><p>for purposes that are similar to those for which any social security or comparable benefit is payable; or</p></content></level><level class="para2" eId="section-151-3-b-ii"><num>(ii)</num><content><p>for purposes connected with the carrying out of any functions of the Secretary of State or any such department in relation to employment or training for employment;</p></content></level></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-151-3-b-i"><num>(i)</num><content><p>for purposes that are similar to those for which any social security or comparable benefit is payable; or</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-151-3-b-ii"><num>(ii)</num><content><p>for purposes connected with the carrying out of any functions of the Secretary of State or any such department in relation to employment or training for employment;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-151-3-c"><num>(c)</num><content><p>are arrangements relating to a temporary experimental period; and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-151-3-d"><num>(d)</num><content><p>are made wholly or partly for the purpose of facilitating a decision as to whether, or to what extent, it is desirable for provision to be made on a permanent basis for or in relation to any benefit.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-151-4"><num>(4)</num><content><p>In subsection (3)(b) above the reference to making provision for or about the payment of amounts of benefit for purposes that are similar to those for which any social security or comparable benefit is payable shall include a reference to making provision by virtue of which there is a modification of the conditions of entitlement to, or the conditions for the payment of, an existing social security or comparable benefit.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-151-5"><num>(5)</num><intro><p>An order under this section may—</p></intro><level class="para1" eId="section-151-5-a"><num>(a)</num><content><p>make different provision for different cases, and</p></content></level><level class="para1" eId="section-151-5-b"><num>(b)</num><content><p>contain such incidental, supplemental, consequential and transitional provision (including provision modifying provision made by or under the Income Tax Acts) as the Treasury may think fit.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-151-5-a"><num>(a)</num><content><p>make different provision for different cases, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-151-5-b"><num>(b)</num><content><p>contain such incidental, supplemental, consequential and transitional provision (including provision modifying provision made by or under the Income Tax Acts) as the Treasury may think fit.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-151-6"><num>(6)</num><content><p>In this section “benefit” includes any allowance, grant or other amount the whole or any part of which is payable directly or indirectly out of public funds.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-151-7"><num>(7)</num><intro><p>The power to make an order under this section—</p></intro><level class="para1" eId="section-151-7-a"><num>(a)</num><content><p>shall be exercisable for the year 1996-97 and subsequent years of assessment; and</p></content></level><level class="para1" eId="section-151-7-b"><num>(b)</num><content><p>so far as exercisable for the year 1996-97, shall be exercisable in relation to benefits, allowances and other amounts paid at times on or after 6th April 1996 but before the making of the order.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-151-7-a"><num>(a)</num><content><p>shall be exercisable for the year 1996-97 and subsequent years of assessment; and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-151-7-b"><num>(b)</num><content><p>so far as exercisable for the year 1996-97, shall be exercisable in relation to benefits, allowances and other amounts paid at times on or after 6th April 1996 but before the making of the order.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-151-8"><num>(8)</num><content><p>The Treasury shall not make an order under this section containing any such provision as is mentioned in subsection (1)(b) above unless a draft of the order has been laid before, and approved by a resolution of, the House of Commons.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-152"><num>152</num><heading>Jobfinder’s grant</heading><subsection eId="section-152-1"><num>(1)</num><content><p>The Income Tax Acts shall have effect, and be deemed always to have had effect, as if jobfinder’s grant were exempt from income tax and, accordingly, were to be disregarded in computing the amount of any receipts brought into account for income tax purposes.</p></content></subsection><subsection eId="section-152-2"><num>(2)</num><content><p>In this section “jobfinder’s grant” means grant paid under that name by virtue of arrangements made in pursuance of section 2 of the <noteRef href="#m00102" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Employment and Training Act 1973 or section 1 of the <noteRef href="#m00103" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Employment and Training Act (Northern Ireland) 1950 (arrangements for assisting persons to select, train for, obtain or retain employment).</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-152-1"><num>(1)</num><content><p>The Income Tax Acts shall have effect, and be deemed always to have had effect, as if jobfinder’s grant were exempt from income tax and, accordingly, were to be disregarded in computing the amount of any receipts brought into account for income tax purposes.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-152-2"><num>(2)</num><content><p>In this section “jobfinder’s grant” means grant paid under that name by virtue of arrangements made in pursuance of section 2 of the <noteRef href="#m00102" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Employment and Training Act 1973 or section 1 of the <noteRef href="#m00103" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Employment and Training Act (Northern Ireland) 1950 (arrangements for assisting persons to select, train for, obtain or retain employment).</p></content></subsection>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="part-IV-chapter-VI-crossheading-investments"><heading>Investments</heading><section eId="section-153"><num>153</num><heading>Foreign income dividends</heading><content><p>Schedule 27 to this Act (which makes provision relating to foreign income dividends) shall have effect.</p></content></section><section eId="section-154"><num>154</num><heading>FOTRA securities</heading><subsection eId="section-154-1"><num>(1)</num><content><p>The modifications which, under section 60 of the <noteRef href="#m00104" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1940, may be made for the purposes of any issue of securities to the conditions about tax exemption specified in section 22 of the <noteRef href="#m00105" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance (No. 2) Act 1931 shall include a modification by virtue of which the tax exemption contained in any condition of the issue applies, as respects capital, irrespective of where the person with the beneficial ownership of the securities is domiciled.</p></content></subsection><subsection eId="section-154-2"><num>(2)</num><content><p>Subject to subsections (3) to (5) below, nothing in the Tax Acts shall impose any charge to tax on any person in respect of so much of any profits or gains arising from a FOTRA security, or from any loan relationship represented by a FOTRA security, as is expressed to be exempt from tax in the tax exemption condition applying to that security.</p></content></subsection><subsection eId="section-154-3"><num>(3)</num><content><p>Exemption from tax shall not be conferred by virtue of subsection (2) above in relation to any security unless the requirements imposed as respects that exemption by the conditions with which the security is issued (including any requirement as to the making of a claim) are complied with.</p></content></subsection><subsection eId="section-154-4"><num>(4)</num><content><p>The tax exemption condition of a FOTRA security shall not be taken to confer any exemption from any charge to tax imposed by virtue of the provisions of Chapter IA of Part XV or Chapter III of Part XVII of the Taxes Act 1988 (anti-avoidance provisions for residents etc.)</p></content></subsection><subsection eId="section-154-5"><num>(5)</num><content><p>Nothing in this section shall entitle any person to any repayment of tax which he has not claimed within the time limit which would be applicable under the Tax Acts (apart from this section) to a claim for the repayment of that tax.</p></content></subsection><subsection eId="section-154-6"><num>(6)</num><intro><p>A person with the beneficial ownership of a FOTRA security who would, by virtue of this section, be exempt from tax in respect of some or all of the profits and gains arising from that security, or from any loan relationship represented by it, shall not be entitled for the purposes of income tax or corporation tax to bring into account any amount—</p></intro><level class="para1" eId="section-154-6-a"><num>(a)</num><content><p>in respect of changes in the value of that security;</p></content></level><level class="para1" eId="section-154-6-b"><num>(b)</num><content><p>as expenses or disbursements incurred in, or in connection with, the holding of the security or any transaction relating to the security; or</p></content></level><level class="para1" eId="section-154-6-c"><num>(c)</num><content><p>as a debit given, in respect of any loan relationship represented by that security, by any provision of Chapter II of this Part of this Act in respect of such a relationship.</p></content></level></subsection><subsection eId="section-154-7"><num>(7)</num><content><p>Schedule 28 to this Act (which contains amendments consequential on the provisions of this section) shall have effect.</p></content></subsection><subsection eId="section-154-8"><num>(8)</num><intro><p>References in this section to a FOTRA security are references to—</p></intro><level class="para1" eId="section-154-8-a"><num>(a)</num><content><p>any security issued with such a condition about exemption from taxation as is authorised in relation to its issue by virtue of section 22 of the <noteRef href="#m00106" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance (No. 2) Act 1931; or</p></content></level><level class="para1" eId="section-154-8-b"><num>(b)</num><content><p>any 3½% War Loan 1952 Or After which was issued with a condition authorised by virtue of section 47 of the <noteRef href="#m00107" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance (No. 2) Act 1915;</p></content></level><wrapUp><p>and references, in relation to such a security, to the tax exemption condition shall be construed accordingly.</p></wrapUp></subsection><subsection eId="section-154-9"><num>(9)</num><intro><p>This section and Schedule 28 to this Act shall have effect—</p></intro><level class="para1" eId="section-154-9-a"><num>(a)</num><content><p>for the purposes of income tax, for the year 1996-97 and subsequent years of assessment; and</p></content></level><level class="para1" eId="section-154-9-b"><num>(b)</num><content><p>for the purposes of corporation tax, for accounting periods ending after 31st March 1996.</p></content></level></subsection></section><section eId="section-155"><num>155</num><heading>Directions for payment without deduction of tax</heading><content><p><mod>After section 51 of the Taxes Act 1988 there shall be inserted the following section—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>51AA</num><heading>Commencement of direction under section 50 or 51</heading><content><p>A direction under section 50 or 51 that any security shall be deemed to have been issued subject to the condition that the interest thereon shall be paid without deduction of tax may provide that the direction is to have effect in relation only to payments of interest made on or after such date as may be specified in the direction.</p></content></section></quotedStructure></mod></p></content></section><section eId="section-156"><num>156</num><heading>Paying and collecting agents etc</heading><content><p>Schedule 29 to this Act (which amends the rules relating to paying and collecting agents) shall have effect.</p></content></section><section eId="section-157"><num>157</num><heading>Stock lending fees</heading><subsection eId="section-157-1"><num>(1)</num><content><p><mod>After section 129A of the Taxes Act 1988 (interest on cash collateral paid in connection with stock lending arrangements) there shall be inserted the following section—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>129B</num><heading>Stock lending fees</heading><subsection><num>(1)</num><content><p>The income which, as income deriving from investments of a description specified in any of the relevant provisions, is eligible for relief from tax by virtue of that provision shall be taken to include any relevant stock lending fee.</p></content></subsection><subsection><num>(2)</num><content><p>For the purposes of this section the relevant provisions are sections 592(2), 608(2)(a), 613(4), 614(3), 620(6) and 643(2).</p></content></subsection><subsection><num>(3)</num><content><p>In this section “relevant stock lending fee”, in relation to investments of any description, means any amount, in the nature of a fee, which is payable in connection with an approved stock lending arrangement relating to investments which, but for any transfer under the arrangement, would be investments of that description.</p></content></subsection><subsection><num>(4)</num><content><p>In this section “approved stock lending arrangement” has the same meaning as in Schedule 5A.</p></content></subsection></section></quotedStructure></mod></p></content></subsection><subsection eId="section-157-2"><num>(2)</num><content><p>This section has effect in relation to any arrangements entered into on or after 2nd January 1996.</p></content></subsection></section><section eId="section-158"><num>158</num><heading>Transfers on death under the accrued income scheme</heading><subsection eId="section-158-1"><num>(1)</num><content><p><mod>In section 710(5) of the Taxes Act 1988 (meaning of “transfer” in sections 711 to 728), after “or otherwise” there shall be inserted <quotedText startQuote="“">, but—</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(a)</num><content><p>does not include the vesting of securities in a person’s personal representatives on his death; and</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-158-2"><num>(2)</num><content><p>Subsection (1) of section 721 of that Act (transfer of securities on death) shall cease to have effect.</p></content></subsection><subsection eId="section-158-3"><num>(3)</num><content><p><mod>For subsection (2) of that section (transfers by personal representatives to legatees) there shall be substituted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(2)</num><intro><p>Where—</p></intro><level class="para1"><num>(a)</num><content><p>an individual who is entitled to securities dies, and</p></content></level><level class="para1"><num>(b)</num><content><p>in the interest period in which the individual died, the securities are transferred by his personal representatives to a legatee,</p></content></level><wrapUp><p>section 713 shall not apply to the transfer.</p></wrapUp></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-158-4"><num>(4)</num><content><p>Subsection (4) of that section (interest period treated as ending with death) shall cease to have effect.</p></content></subsection><subsection eId="section-158-5"><num>(5)</num><content><p>This section has effect as respects deaths on or after 6th April 1996.</p></content></subsection></section><section eId="section-159"><num>159</num><heading>Manufactured payments, repos, etc</heading><subsection eId="section-159-1"><num>(1)</num><content><p>Sections 729, 737A(2)(b) and 786(4) of the Taxes Act 1988 (provisions applying to sale and repurchase agreements) shall cease to have effect except in relation to cases where the initial agreement to sell or transfer the securities or other property was made before the appointed day.</p></content></subsection><subsection eId="section-159-2"><num>(2)</num><intro><p>In section 737 of that Act—</p></intro><level class="para1" eId="section-159-2-a"><num>(a)</num><content><p>in subsection (5) (manufactured dividends paid to UK residents by non-residents), for the words from “a person resident in the United Kingdom” to “the United Kingdom recipient shall” there shall be substituted “a United Kingdom recipient, that recipient shall”; and</p></content></level><level class="para1" eId="section-159-2-b"><num>(b)</num><content><p><mod>after that subsection there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(5AAA)</num><intro><p>For the purposes of subsection (5) above a person who receives a manufactured dividend is a United Kingdom recipient if—</p></intro><level class="para1"><num>(a)</num><content><p>he is resident in the United Kingdom; or</p></content></level><level class="para1"><num>(b)</num><content><p>he is not so resident but receives that dividend for the purposes of a trade carried on through a branch or agency in the United Kingdom.</p></content></level></subsection></quotedStructure></mod></p></content></level></subsection><subsection eId="section-159-3"><num>(3)</num><content><p><mod>In section 737C of that Act (deemed manufactured payments), the following subsection shall be inserted after subsection (11A) in relation to cases where the initial agreement to sell the securities is made on or after the appointed day, that is to say—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(11B)</num><intro><p>The preceding provisions of this section shall have effect in cases where paragraph 2, 3 or 4 of Schedule 23A would apply by virtue of section 737A(5) but for paragraph 5 of that Schedule as they have effect in a case where the paragraph in question is not disapplied by paragraph 5; and where—</p></intro><level class="para1"><num>(a)</num><content><p>the gross amount of the deemed manufactured interest, or</p></content></level><level class="para1"><num>(b)</num><content><p>the gross amount of the deemed manufactured overseas dividend,</p></content></level><wrapUp><p>falls to be calculated in such a case under subsection (8) or (11) above, it shall be so calculated by reference to the provisions of paragraph 3 or 4 of Schedule 23A that would have applied but for paragraph 5 of that Schedule.</p></wrapUp></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-159-4"><num>(4)</num><content><p>In sub-paragraph (3) of paragraph 4 of Schedule 23A to that Act (manufactured overseas dividends paid to UK residents by non-residents), for the words from “a person resident in the United Kingdom” to “the United Kingdom recipient shall” there shall be substituted “a United Kingdom recipient, that recipient shall”.</p></content></subsection><subsection eId="section-159-5"><num>(5)</num><content><p><mod>After that sub-paragraph there shall be inserted the following sub-paragraphs—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(3A)</num><intro><p>For the purposes of sub-paragraph (3) above a person who receives a manufactured overseas dividend is a United Kingdom recipient if—</p></intro><level class="para1"><num>(a)</num><content><p>he is resident in the United Kingdom; or</p></content></level><level class="para1"><num>(b)</num><content><p>he is not so resident but receives that dividend for the purposes of a trade carried on through a branch or agency in the United Kingdom.</p></content></level></subsection><subsection><num>(3B)</num><intro><p>Dividend manufacturing regulations may make provision, in relation to cases falling within sub-paragraph (3) above, for the amount of tax required under that sub-paragraph to be taken to be reduced, to such extent and for such purposes as may be determined under the regulations, by reference to amounts of overseas tax charged on, or in respect of—</p></intro><level class="para1"><num>(a)</num><content><p>the making of the manufactured overseas dividend; or</p></content></level><level class="para1"><num>(b)</num><content><p>the overseas dividend of which the manufactured overseas dividend is representative.</p></content></level></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-159-6"><num>(6)</num><content><p><mod>In sub-paragraph (7) of paragraph 4 of that Schedule (regulations for off-setting), for the words from “against” to “and account” in the words after paragraph (b) there shall be substituted “in accordance with the regulations and to the prescribed extent, amounts falling within paragraph (a) of sub-paragraph (7AA) below against the sums falling within paragraph (b) of that sub-paragraph, and to account”; and after that sub-paragraph there shall be inserted the following sub-paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><subparagraph><num>(7AA)</num><intro><p>Those amounts and sums are—</p></intro><level class="para1"><num>(a)</num><content><p>amounts of overseas tax in respect of overseas dividends received by him in that chargeable period, amounts of overseas tax charged on, or in respect of, the making of manufactured overseas dividends so received by him and amounts deducted under sub-paragraph (2) above from any such manufactured overseas dividends; and</p></content></level><level class="para1"><num>(b)</num><content><p>the sums due from him on account of the amounts deducted by him under sub-paragraph (2) above from the manufactured overseas dividends paid by him in that chargeable period.</p></content></level></subparagraph></quotedStructure></mod></p></content></subsection><subsection eId="section-159-7"><num>(7)</num><intro><p>In sub-paragraph (1) of paragraph 8 of that Schedule (power to modify provisions of Schedule)—</p></intro><level class="para1" eId="section-159-7-a"><num>(a)</num><content><p><mod>before the “or” at the end of paragraph (a) there shall be inserted—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><level class="para1"><num>(aa)</num><content><p>such persons who receive, or become entitled to receive, manufactured dividends, manufactured interest or manufactured overseas dividends as may be prescribed,</p></content></level></quotedStructure></mod></p><p>and</p></content></level><level class="para1" eId="section-159-7-b"><num>(b)</num><content><p>in the words after paragraph (b), for “paragraph 2, 3 or 4 above” there shall be substituted “paragraphs 2 to 5 above”.</p></content></level></subsection><subsection eId="section-159-8"><num>(8)</num><content><p><mod>After sub-paragraph (1) of paragraph 8 of that Schedule there shall be inserted the following sub-paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><subparagraph><num>(1A)</num><intro><p>Dividend manufacturing regulations may provide, in relation to prescribed cases where a person makes or receives the payment of any amount representative of an overseas dividend, or is treated for any purposes of this Schedule or such regulations as a person making or receiving such a payment—</p></intro><level class="para1"><num>(a)</num><content><p>for any entitlement of that person to claim relief under Part XVIII to be extinguished or reduced to such extent as may be found under the regulations; and</p></content></level><level class="para1"><num>(b)</num><content><p>for the adjustment, by reference to any provision having effect under the law of a territory outside the United Kingdom, of any amount falling to be taken, for any prescribed purposes of the Tax Acts or the 1992 Act, to be the amount paid or payable by or to any person in respect of any sale, repurchase or other transfer of the overseas securities to which the payment relates.</p></content></level></subparagraph></quotedStructure></mod></p></content></subsection><subsection eId="section-159-9"><num>(9)</num><intro><p>Subsections (2), (4) and (5) above have effect—</p></intro><level class="para1" eId="section-159-9-a"><num>(a)</num><content><p>for the purposes of corporation tax, in relation to accounting periods ending after 31st March 1996; and</p></content></level><level class="para1" eId="section-159-9-b"><num>(b)</num><content><p>for the purposes of income tax, in relation to the year 1996-97 and subsequent years of assessment.</p></content></level></subsection><subsection eId="section-159-10"><num>(10)</num><content><p>In this section “the appointed day” means such day as the Treasury may by order appoint, and different days may be appointed under this subsection for different purposes.</p></content></subsection></section><section eId="section-160"><num>160</num><heading>Investments in housing</heading><content><p>Schedule 30 to this Act (which makes provision conferring relief from corporation tax on companies that invest in housing) shall have effect.</p></content></section><section eId="section-161"><num>161</num><heading>Venture capital trusts: control of companies etc</heading><subsection eId="section-161-1"><num>(1)</num><content><p>Schedule 28B to the Taxes Act 1988 (venture capital trusts: meaning of qualifying holdings) shall have effect, and be deemed always to have had effect, subject to the amendments in subsections (2) and (3) below.</p></content></subsection><subsection eId="section-161-2"><num>(2)</num><intro><p>In paragraph 9 (requirements as to subsidiaries etc. of the relevant company), the following shall be omitted—</p></intro><level class="para1" eId="section-161-2-a"><num>(a)</num><content><p>in sub-paragraph (1), the words “subject to sub-paragraph (2) below”; and</p></content></level><level class="para1" eId="section-161-2-b"><num>(b)</num><content><p>sub-paragraph (2).</p></content></level></subsection><subsection eId="section-161-3"><num>(3)</num><content><p><mod>In paragraph 13 (interpretation), for sub-paragraphs (2) and (3) (“connected” and “control” to be construed in accordance with sections 839 and 416(2) to (6)) there shall be substituted the following sub-paragraphs—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><subparagraph><num>(2)</num><content><p>For the purposes of paragraphs 5(2) and 9 above, the question whether a person controls a company shall be determined in accordance with subsections (2) to (6) of section 416 with the modification given by sub-paragraph (3) below.</p></content></subparagraph><subparagraph><num>(3)</num><intro><p>The modification is that, in determining whether a person controls a company, there shall be disregarded—</p></intro><level class="para1"><num>(a)</num><content><p>his or any other person’s possession of, or entitlement to acquire, relevant fixed-rate preference shares of the company; and</p></content></level><level class="para1"><num>(b)</num><content><p>his or any other person’s possession of, or entitlement to acquire, rights as a loan creditor of the company.</p></content></level></subparagraph><subparagraph><num>(4)</num><content><p>Section 839 shall apply for the purposes of this Schedule, but as if the reference in subsection (8) to section 416 were a reference to subsections (2) to (6) of section 416 with the modification given by sub-paragraph (3) above.</p></content></subparagraph><subparagraph><num>(5)</num><intro><p>For the purposes of sub-paragraph (3) above—</p></intro><level class="para1"><num>(a)</num><content><p>relevant fixed-rate preference shares are fixed-rate preference shares that do not for the time being carry voting rights; and</p></content></level><level class="para1"><num>(b)</num><content><p>“fixed-rate preference shares” has the same meaning as in section 95.</p></content></level></subparagraph></quotedStructure></mod></p></content></subsection></section></hcontainer>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-153"><num>153</num><heading>Foreign income dividends</heading><content><p>Schedule 27 to this Act (which makes provision relating to foreign income dividends) shall have effect.</p></content></section>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-154"><num>154</num><heading>FOTRA securities</heading><subsection eId="section-154-1"><num>(1)</num><content><p>The modifications which, under section 60 of the <noteRef href="#m00104" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1940, may be made for the purposes of any issue of securities to the conditions about tax exemption specified in section 22 of the <noteRef href="#m00105" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance (No. 2) Act 1931 shall include a modification by virtue of which the tax exemption contained in any condition of the issue applies, as respects capital, irrespective of where the person with the beneficial ownership of the securities is domiciled.</p></content></subsection><subsection eId="section-154-2"><num>(2)</num><content><p>Subject to subsections (3) to (5) below, nothing in the Tax Acts shall impose any charge to tax on any person in respect of so much of any profits or gains arising from a FOTRA security, or from any loan relationship represented by a FOTRA security, as is expressed to be exempt from tax in the tax exemption condition applying to that security.</p></content></subsection><subsection eId="section-154-3"><num>(3)</num><content><p>Exemption from tax shall not be conferred by virtue of subsection (2) above in relation to any security unless the requirements imposed as respects that exemption by the conditions with which the security is issued (including any requirement as to the making of a claim) are complied with.</p></content></subsection><subsection eId="section-154-4"><num>(4)</num><content><p>The tax exemption condition of a FOTRA security shall not be taken to confer any exemption from any charge to tax imposed by virtue of the provisions of Chapter IA of Part XV or Chapter III of Part XVII of the Taxes Act 1988 (anti-avoidance provisions for residents etc.)</p></content></subsection><subsection eId="section-154-5"><num>(5)</num><content><p>Nothing in this section shall entitle any person to any repayment of tax which he has not claimed within the time limit which would be applicable under the Tax Acts (apart from this section) to a claim for the repayment of that tax.</p></content></subsection><subsection eId="section-154-6"><num>(6)</num><intro><p>A person with the beneficial ownership of a FOTRA security who would, by virtue of this section, be exempt from tax in respect of some or all of the profits and gains arising from that security, or from any loan relationship represented by it, shall not be entitled for the purposes of income tax or corporation tax to bring into account any amount—</p></intro><level class="para1" eId="section-154-6-a"><num>(a)</num><content><p>in respect of changes in the value of that security;</p></content></level><level class="para1" eId="section-154-6-b"><num>(b)</num><content><p>as expenses or disbursements incurred in, or in connection with, the holding of the security or any transaction relating to the security; or</p></content></level><level class="para1" eId="section-154-6-c"><num>(c)</num><content><p>as a debit given, in respect of any loan relationship represented by that security, by any provision of Chapter II of this Part of this Act in respect of such a relationship.</p></content></level></subsection><subsection eId="section-154-7"><num>(7)</num><content><p>Schedule 28 to this Act (which contains amendments consequential on the provisions of this section) shall have effect.</p></content></subsection><subsection eId="section-154-8"><num>(8)</num><intro><p>References in this section to a FOTRA security are references to—</p></intro><level class="para1" eId="section-154-8-a"><num>(a)</num><content><p>any security issued with such a condition about exemption from taxation as is authorised in relation to its issue by virtue of section 22 of the <noteRef href="#m00106" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance (No. 2) Act 1931; or</p></content></level><level class="para1" eId="section-154-8-b"><num>(b)</num><content><p>any 3½% War Loan 1952 Or After which was issued with a condition authorised by virtue of section 47 of the <noteRef href="#m00107" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance (No. 2) Act 1915;</p></content></level><wrapUp><p>and references, in relation to such a security, to the tax exemption condition shall be construed accordingly.</p></wrapUp></subsection><subsection eId="section-154-9"><num>(9)</num><intro><p>This section and Schedule 28 to this Act shall have effect—</p></intro><level class="para1" eId="section-154-9-a"><num>(a)</num><content><p>for the purposes of income tax, for the year 1996-97 and subsequent years of assessment; and</p></content></level><level class="para1" eId="section-154-9-b"><num>(b)</num><content><p>for the purposes of corporation tax, for accounting periods ending after 31st March 1996.</p></content></level></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-154-1"><num>(1)</num><content><p>The modifications which, under section 60 of the <noteRef href="#m00104" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1940, may be made for the purposes of any issue of securities to the conditions about tax exemption specified in section 22 of the <noteRef href="#m00105" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance (No. 2) Act 1931 shall include a modification by virtue of which the tax exemption contained in any condition of the issue applies, as respects capital, irrespective of where the person with the beneficial ownership of the securities is domiciled.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-154-2"><num>(2)</num><content><p>Subject to subsections (3) to (5) below, nothing in the Tax Acts shall impose any charge to tax on any person in respect of so much of any profits or gains arising from a FOTRA security, or from any loan relationship represented by a FOTRA security, as is expressed to be exempt from tax in the tax exemption condition applying to that security.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-154-3"><num>(3)</num><content><p>Exemption from tax shall not be conferred by virtue of subsection (2) above in relation to any security unless the requirements imposed as respects that exemption by the conditions with which the security is issued (including any requirement as to the making of a claim) are complied with.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-154-4"><num>(4)</num><content><p>The tax exemption condition of a FOTRA security shall not be taken to confer any exemption from any charge to tax imposed by virtue of the provisions of Chapter IA of Part XV or Chapter III of Part XVII of the Taxes Act 1988 (anti-avoidance provisions for residents etc.)</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-154-5"><num>(5)</num><content><p>Nothing in this section shall entitle any person to any repayment of tax which he has not claimed within the time limit which would be applicable under the Tax Acts (apart from this section) to a claim for the repayment of that tax.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-154-6"><num>(6)</num><intro><p>A person with the beneficial ownership of a FOTRA security who would, by virtue of this section, be exempt from tax in respect of some or all of the profits and gains arising from that security, or from any loan relationship represented by it, shall not be entitled for the purposes of income tax or corporation tax to bring into account any amount—</p></intro><level class="para1" eId="section-154-6-a"><num>(a)</num><content><p>in respect of changes in the value of that security;</p></content></level><level class="para1" eId="section-154-6-b"><num>(b)</num><content><p>as expenses or disbursements incurred in, or in connection with, the holding of the security or any transaction relating to the security; or</p></content></level><level class="para1" eId="section-154-6-c"><num>(c)</num><content><p>as a debit given, in respect of any loan relationship represented by that security, by any provision of Chapter II of this Part of this Act in respect of such a relationship.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-154-6-a"><num>(a)</num><content><p>in respect of changes in the value of that security;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-154-6-b"><num>(b)</num><content><p>as expenses or disbursements incurred in, or in connection with, the holding of the security or any transaction relating to the security; or</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-154-6-c"><num>(c)</num><content><p>as a debit given, in respect of any loan relationship represented by that security, by any provision of Chapter II of this Part of this Act in respect of such a relationship.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-154-7"><num>(7)</num><content><p>Schedule 28 to this Act (which contains amendments consequential on the provisions of this section) shall have effect.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-154-8"><num>(8)</num><intro><p>References in this section to a FOTRA security are references to—</p></intro><level class="para1" eId="section-154-8-a"><num>(a)</num><content><p>any security issued with such a condition about exemption from taxation as is authorised in relation to its issue by virtue of section 22 of the <noteRef href="#m00106" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance (No. 2) Act 1931; or</p></content></level><level class="para1" eId="section-154-8-b"><num>(b)</num><content><p>any 3½% War Loan 1952 Or After which was issued with a condition authorised by virtue of section 47 of the <noteRef href="#m00107" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance (No. 2) Act 1915;</p></content></level><wrapUp><p>and references, in relation to such a security, to the tax exemption condition shall be construed accordingly.</p></wrapUp></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-154-8-a"><num>(a)</num><content><p>any security issued with such a condition about exemption from taxation as is authorised in relation to its issue by virtue of section 22 of the <noteRef href="#m00106" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance (No. 2) Act 1931; or</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-154-8-b"><num>(b)</num><content><p>any 3½% War Loan 1952 Or After which was issued with a condition authorised by virtue of section 47 of the <noteRef href="#m00107" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance (No. 2) Act 1915;</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-154-9"><num>(9)</num><intro><p>This section and Schedule 28 to this Act shall have effect—</p></intro><level class="para1" eId="section-154-9-a"><num>(a)</num><content><p>for the purposes of income tax, for the year 1996-97 and subsequent years of assessment; and</p></content></level><level class="para1" eId="section-154-9-b"><num>(b)</num><content><p>for the purposes of corporation tax, for accounting periods ending after 31st March 1996.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-154-9-a"><num>(a)</num><content><p>for the purposes of income tax, for the year 1996-97 and subsequent years of assessment; and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-154-9-b"><num>(b)</num><content><p>for the purposes of corporation tax, for accounting periods ending after 31st March 1996.</p></content></level>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-155"><num>155</num><heading>Directions for payment without deduction of tax</heading><content><p><mod>After section 51 of the Taxes Act 1988 there shall be inserted the following section—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>51AA</num><heading>Commencement of direction under section 50 or 51</heading><content><p>A direction under section 50 or 51 that any security shall be deemed to have been issued subject to the condition that the interest thereon shall be paid without deduction of tax may provide that the direction is to have effect in relation only to payments of interest made on or after such date as may be specified in the direction.</p></content></section></quotedStructure></mod></p></content></section>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-156"><num>156</num><heading>Paying and collecting agents etc</heading><content><p>Schedule 29 to this Act (which amends the rules relating to paying and collecting agents) shall have effect.</p></content></section>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-157"><num>157</num><heading>Stock lending fees</heading><subsection eId="section-157-1"><num>(1)</num><content><p><mod>After section 129A of the Taxes Act 1988 (interest on cash collateral paid in connection with stock lending arrangements) there shall be inserted the following section—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>129B</num><heading>Stock lending fees</heading><subsection><num>(1)</num><content><p>The income which, as income deriving from investments of a description specified in any of the relevant provisions, is eligible for relief from tax by virtue of that provision shall be taken to include any relevant stock lending fee.</p></content></subsection><subsection><num>(2)</num><content><p>For the purposes of this section the relevant provisions are sections 592(2), 608(2)(a), 613(4), 614(3), 620(6) and 643(2).</p></content></subsection><subsection><num>(3)</num><content><p>In this section “relevant stock lending fee”, in relation to investments of any description, means any amount, in the nature of a fee, which is payable in connection with an approved stock lending arrangement relating to investments which, but for any transfer under the arrangement, would be investments of that description.</p></content></subsection><subsection><num>(4)</num><content><p>In this section “approved stock lending arrangement” has the same meaning as in Schedule 5A.</p></content></subsection></section></quotedStructure></mod></p></content></subsection><subsection eId="section-157-2"><num>(2)</num><content><p>This section has effect in relation to any arrangements entered into on or after 2nd January 1996.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-157-1"><num>(1)</num><content><p><mod>After section 129A of the Taxes Act 1988 (interest on cash collateral paid in connection with stock lending arrangements) there shall be inserted the following section—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>129B</num><heading>Stock lending fees</heading><subsection><num>(1)</num><content><p>The income which, as income deriving from investments of a description specified in any of the relevant provisions, is eligible for relief from tax by virtue of that provision shall be taken to include any relevant stock lending fee.</p></content></subsection><subsection><num>(2)</num><content><p>For the purposes of this section the relevant provisions are sections 592(2), 608(2)(a), 613(4), 614(3), 620(6) and 643(2).</p></content></subsection><subsection><num>(3)</num><content><p>In this section “relevant stock lending fee”, in relation to investments of any description, means any amount, in the nature of a fee, which is payable in connection with an approved stock lending arrangement relating to investments which, but for any transfer under the arrangement, would be investments of that description.</p></content></subsection><subsection><num>(4)</num><content><p>In this section “approved stock lending arrangement” has the same meaning as in Schedule 5A.</p></content></subsection></section></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-157-2"><num>(2)</num><content><p>This section has effect in relation to any arrangements entered into on or after 2nd January 1996.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-158"><num>158</num><heading>Transfers on death under the accrued income scheme</heading><subsection eId="section-158-1"><num>(1)</num><content><p><mod>In section 710(5) of the Taxes Act 1988 (meaning of “transfer” in sections 711 to 728), after “or otherwise” there shall be inserted <quotedText startQuote="“">, but—</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(a)</num><content><p>does not include the vesting of securities in a person’s personal representatives on his death; and</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-158-2"><num>(2)</num><content><p>Subsection (1) of section 721 of that Act (transfer of securities on death) shall cease to have effect.</p></content></subsection><subsection eId="section-158-3"><num>(3)</num><content><p><mod>For subsection (2) of that section (transfers by personal representatives to legatees) there shall be substituted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(2)</num><intro><p>Where—</p></intro><level class="para1"><num>(a)</num><content><p>an individual who is entitled to securities dies, and</p></content></level><level class="para1"><num>(b)</num><content><p>in the interest period in which the individual died, the securities are transferred by his personal representatives to a legatee,</p></content></level><wrapUp><p>section 713 shall not apply to the transfer.</p></wrapUp></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-158-4"><num>(4)</num><content><p>Subsection (4) of that section (interest period treated as ending with death) shall cease to have effect.</p></content></subsection><subsection eId="section-158-5"><num>(5)</num><content><p>This section has effect as respects deaths on or after 6th April 1996.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-158-1"><num>(1)</num><content><p><mod>In section 710(5) of the Taxes Act 1988 (meaning of “transfer” in sections 711 to 728), after “or otherwise” there shall be inserted <quotedText startQuote="“">, but—</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(a)</num><content><p>does not include the vesting of securities in a person’s personal representatives on his death; and</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-158-2"><num>(2)</num><content><p>Subsection (1) of section 721 of that Act (transfer of securities on death) shall cease to have effect.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-158-3"><num>(3)</num><content><p><mod>For subsection (2) of that section (transfers by personal representatives to legatees) there shall be substituted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(2)</num><intro><p>Where—</p></intro><level class="para1"><num>(a)</num><content><p>an individual who is entitled to securities dies, and</p></content></level><level class="para1"><num>(b)</num><content><p>in the interest period in which the individual died, the securities are transferred by his personal representatives to a legatee,</p></content></level><wrapUp><p>section 713 shall not apply to the transfer.</p></wrapUp></subsection></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-158-4"><num>(4)</num><content><p>Subsection (4) of that section (interest period treated as ending with death) shall cease to have effect.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-158-5"><num>(5)</num><content><p>This section has effect as respects deaths on or after 6th April 1996.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-159"><num>159</num><heading>Manufactured payments, repos, etc</heading><subsection eId="section-159-1"><num>(1)</num><content><p>Sections 729, 737A(2)(b) and 786(4) of the Taxes Act 1988 (provisions applying to sale and repurchase agreements) shall cease to have effect except in relation to cases where the initial agreement to sell or transfer the securities or other property was made before the appointed day.</p></content></subsection><subsection eId="section-159-2"><num>(2)</num><intro><p>In section 737 of that Act—</p></intro><level class="para1" eId="section-159-2-a"><num>(a)</num><content><p>in subsection (5) (manufactured dividends paid to UK residents by non-residents), for the words from “a person resident in the United Kingdom” to “the United Kingdom recipient shall” there shall be substituted “a United Kingdom recipient, that recipient shall”; and</p></content></level><level class="para1" eId="section-159-2-b"><num>(b)</num><content><p><mod>after that subsection there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(5AAA)</num><intro><p>For the purposes of subsection (5) above a person who receives a manufactured dividend is a United Kingdom recipient if—</p></intro><level class="para1"><num>(a)</num><content><p>he is resident in the United Kingdom; or</p></content></level><level class="para1"><num>(b)</num><content><p>he is not so resident but receives that dividend for the purposes of a trade carried on through a branch or agency in the United Kingdom.</p></content></level></subsection></quotedStructure></mod></p></content></level></subsection><subsection eId="section-159-3"><num>(3)</num><content><p><mod>In section 737C of that Act (deemed manufactured payments), the following subsection shall be inserted after subsection (11A) in relation to cases where the initial agreement to sell the securities is made on or after the appointed day, that is to say—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(11B)</num><intro><p>The preceding provisions of this section shall have effect in cases where paragraph 2, 3 or 4 of Schedule 23A would apply by virtue of section 737A(5) but for paragraph 5 of that Schedule as they have effect in a case where the paragraph in question is not disapplied by paragraph 5; and where—</p></intro><level class="para1"><num>(a)</num><content><p>the gross amount of the deemed manufactured interest, or</p></content></level><level class="para1"><num>(b)</num><content><p>the gross amount of the deemed manufactured overseas dividend,</p></content></level><wrapUp><p>falls to be calculated in such a case under subsection (8) or (11) above, it shall be so calculated by reference to the provisions of paragraph 3 or 4 of Schedule 23A that would have applied but for paragraph 5 of that Schedule.</p></wrapUp></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-159-4"><num>(4)</num><content><p>In sub-paragraph (3) of paragraph 4 of Schedule 23A to that Act (manufactured overseas dividends paid to UK residents by non-residents), for the words from “a person resident in the United Kingdom” to “the United Kingdom recipient shall” there shall be substituted “a United Kingdom recipient, that recipient shall”.</p></content></subsection><subsection eId="section-159-5"><num>(5)</num><content><p><mod>After that sub-paragraph there shall be inserted the following sub-paragraphs—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(3A)</num><intro><p>For the purposes of sub-paragraph (3) above a person who receives a manufactured overseas dividend is a United Kingdom recipient if—</p></intro><level class="para1"><num>(a)</num><content><p>he is resident in the United Kingdom; or</p></content></level><level class="para1"><num>(b)</num><content><p>he is not so resident but receives that dividend for the purposes of a trade carried on through a branch or agency in the United Kingdom.</p></content></level></subsection><subsection><num>(3B)</num><intro><p>Dividend manufacturing regulations may make provision, in relation to cases falling within sub-paragraph (3) above, for the amount of tax required under that sub-paragraph to be taken to be reduced, to such extent and for such purposes as may be determined under the regulations, by reference to amounts of overseas tax charged on, or in respect of—</p></intro><level class="para1"><num>(a)</num><content><p>the making of the manufactured overseas dividend; or</p></content></level><level class="para1"><num>(b)</num><content><p>the overseas dividend of which the manufactured overseas dividend is representative.</p></content></level></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-159-6"><num>(6)</num><content><p><mod>In sub-paragraph (7) of paragraph 4 of that Schedule (regulations for off-setting), for the words from “against” to “and account” in the words after paragraph (b) there shall be substituted “in accordance with the regulations and to the prescribed extent, amounts falling within paragraph (a) of sub-paragraph (7AA) below against the sums falling within paragraph (b) of that sub-paragraph, and to account”; and after that sub-paragraph there shall be inserted the following sub-paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><subparagraph><num>(7AA)</num><intro><p>Those amounts and sums are—</p></intro><level class="para1"><num>(a)</num><content><p>amounts of overseas tax in respect of overseas dividends received by him in that chargeable period, amounts of overseas tax charged on, or in respect of, the making of manufactured overseas dividends so received by him and amounts deducted under sub-paragraph (2) above from any such manufactured overseas dividends; and</p></content></level><level class="para1"><num>(b)</num><content><p>the sums due from him on account of the amounts deducted by him under sub-paragraph (2) above from the manufactured overseas dividends paid by him in that chargeable period.</p></content></level></subparagraph></quotedStructure></mod></p></content></subsection><subsection eId="section-159-7"><num>(7)</num><intro><p>In sub-paragraph (1) of paragraph 8 of that Schedule (power to modify provisions of Schedule)—</p></intro><level class="para1" eId="section-159-7-a"><num>(a)</num><content><p><mod>before the “or” at the end of paragraph (a) there shall be inserted—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><level class="para1"><num>(aa)</num><content><p>such persons who receive, or become entitled to receive, manufactured dividends, manufactured interest or manufactured overseas dividends as may be prescribed,</p></content></level></quotedStructure></mod></p><p>and</p></content></level><level class="para1" eId="section-159-7-b"><num>(b)</num><content><p>in the words after paragraph (b), for “paragraph 2, 3 or 4 above” there shall be substituted “paragraphs 2 to 5 above”.</p></content></level></subsection><subsection eId="section-159-8"><num>(8)</num><content><p><mod>After sub-paragraph (1) of paragraph 8 of that Schedule there shall be inserted the following sub-paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><subparagraph><num>(1A)</num><intro><p>Dividend manufacturing regulations may provide, in relation to prescribed cases where a person makes or receives the payment of any amount representative of an overseas dividend, or is treated for any purposes of this Schedule or such regulations as a person making or receiving such a payment—</p></intro><level class="para1"><num>(a)</num><content><p>for any entitlement of that person to claim relief under Part XVIII to be extinguished or reduced to such extent as may be found under the regulations; and</p></content></level><level class="para1"><num>(b)</num><content><p>for the adjustment, by reference to any provision having effect under the law of a territory outside the United Kingdom, of any amount falling to be taken, for any prescribed purposes of the Tax Acts or the 1992 Act, to be the amount paid or payable by or to any person in respect of any sale, repurchase or other transfer of the overseas securities to which the payment relates.</p></content></level></subparagraph></quotedStructure></mod></p></content></subsection><subsection eId="section-159-9"><num>(9)</num><intro><p>Subsections (2), (4) and (5) above have effect—</p></intro><level class="para1" eId="section-159-9-a"><num>(a)</num><content><p>for the purposes of corporation tax, in relation to accounting periods ending after 31st March 1996; and</p></content></level><level class="para1" eId="section-159-9-b"><num>(b)</num><content><p>for the purposes of income tax, in relation to the year 1996-97 and subsequent years of assessment.</p></content></level></subsection><subsection eId="section-159-10"><num>(10)</num><content><p>In this section “the appointed day” means such day as the Treasury may by order appoint, and different days may be appointed under this subsection for different purposes.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-159-1"><num>(1)</num><content><p>Sections 729, 737A(2)(b) and 786(4) of the Taxes Act 1988 (provisions applying to sale and repurchase agreements) shall cease to have effect except in relation to cases where the initial agreement to sell or transfer the securities or other property was made before the appointed day.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-159-2"><num>(2)</num><intro><p>In section 737 of that Act—</p></intro><level class="para1" eId="section-159-2-a"><num>(a)</num><content><p>in subsection (5) (manufactured dividends paid to UK residents by non-residents), for the words from “a person resident in the United Kingdom” to “the United Kingdom recipient shall” there shall be substituted “a United Kingdom recipient, that recipient shall”; and</p></content></level><level class="para1" eId="section-159-2-b"><num>(b)</num><content><p><mod>after that subsection there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(5AAA)</num><intro><p>For the purposes of subsection (5) above a person who receives a manufactured dividend is a United Kingdom recipient if—</p></intro><level class="para1"><num>(a)</num><content><p>he is resident in the United Kingdom; or</p></content></level><level class="para1"><num>(b)</num><content><p>he is not so resident but receives that dividend for the purposes of a trade carried on through a branch or agency in the United Kingdom.</p></content></level></subsection></quotedStructure></mod></p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-159-2-a"><num>(a)</num><content><p>in subsection (5) (manufactured dividends paid to UK residents by non-residents), for the words from “a person resident in the United Kingdom” to “the United Kingdom recipient shall” there shall be substituted “a United Kingdom recipient, that recipient shall”; and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-159-2-b"><num>(b)</num><content><p><mod>after that subsection there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(5AAA)</num><intro><p>For the purposes of subsection (5) above a person who receives a manufactured dividend is a United Kingdom recipient if—</p></intro><level class="para1"><num>(a)</num><content><p>he is resident in the United Kingdom; or</p></content></level><level class="para1"><num>(b)</num><content><p>he is not so resident but receives that dividend for the purposes of a trade carried on through a branch or agency in the United Kingdom.</p></content></level></subsection></quotedStructure></mod></p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-159-3"><num>(3)</num><content><p><mod>In section 737C of that Act (deemed manufactured payments), the following subsection shall be inserted after subsection (11A) in relation to cases where the initial agreement to sell the securities is made on or after the appointed day, that is to say—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(11B)</num><intro><p>The preceding provisions of this section shall have effect in cases where paragraph 2, 3 or 4 of Schedule 23A would apply by virtue of section 737A(5) but for paragraph 5 of that Schedule as they have effect in a case where the paragraph in question is not disapplied by paragraph 5; and where—</p></intro><level class="para1"><num>(a)</num><content><p>the gross amount of the deemed manufactured interest, or</p></content></level><level class="para1"><num>(b)</num><content><p>the gross amount of the deemed manufactured overseas dividend,</p></content></level><wrapUp><p>falls to be calculated in such a case under subsection (8) or (11) above, it shall be so calculated by reference to the provisions of paragraph 3 or 4 of Schedule 23A that would have applied but for paragraph 5 of that Schedule.</p></wrapUp></subsection></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-159-4"><num>(4)</num><content><p>In sub-paragraph (3) of paragraph 4 of Schedule 23A to that Act (manufactured overseas dividends paid to UK residents by non-residents), for the words from “a person resident in the United Kingdom” to “the United Kingdom recipient shall” there shall be substituted “a United Kingdom recipient, that recipient shall”.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-159-5"><num>(5)</num><content><p><mod>After that sub-paragraph there shall be inserted the following sub-paragraphs—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(3A)</num><intro><p>For the purposes of sub-paragraph (3) above a person who receives a manufactured overseas dividend is a United Kingdom recipient if—</p></intro><level class="para1"><num>(a)</num><content><p>he is resident in the United Kingdom; or</p></content></level><level class="para1"><num>(b)</num><content><p>he is not so resident but receives that dividend for the purposes of a trade carried on through a branch or agency in the United Kingdom.</p></content></level></subsection><subsection><num>(3B)</num><intro><p>Dividend manufacturing regulations may make provision, in relation to cases falling within sub-paragraph (3) above, for the amount of tax required under that sub-paragraph to be taken to be reduced, to such extent and for such purposes as may be determined under the regulations, by reference to amounts of overseas tax charged on, or in respect of—</p></intro><level class="para1"><num>(a)</num><content><p>the making of the manufactured overseas dividend; or</p></content></level><level class="para1"><num>(b)</num><content><p>the overseas dividend of which the manufactured overseas dividend is representative.</p></content></level></subsection></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-159-6"><num>(6)</num><content><p><mod>In sub-paragraph (7) of paragraph 4 of that Schedule (regulations for off-setting), for the words from “against” to “and account” in the words after paragraph (b) there shall be substituted “in accordance with the regulations and to the prescribed extent, amounts falling within paragraph (a) of sub-paragraph (7AA) below against the sums falling within paragraph (b) of that sub-paragraph, and to account”; and after that sub-paragraph there shall be inserted the following sub-paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><subparagraph><num>(7AA)</num><intro><p>Those amounts and sums are—</p></intro><level class="para1"><num>(a)</num><content><p>amounts of overseas tax in respect of overseas dividends received by him in that chargeable period, amounts of overseas tax charged on, or in respect of, the making of manufactured overseas dividends so received by him and amounts deducted under sub-paragraph (2) above from any such manufactured overseas dividends; and</p></content></level><level class="para1"><num>(b)</num><content><p>the sums due from him on account of the amounts deducted by him under sub-paragraph (2) above from the manufactured overseas dividends paid by him in that chargeable period.</p></content></level></subparagraph></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-159-7"><num>(7)</num><intro><p>In sub-paragraph (1) of paragraph 8 of that Schedule (power to modify provisions of Schedule)—</p></intro><level class="para1" eId="section-159-7-a"><num>(a)</num><content><p><mod>before the “or” at the end of paragraph (a) there shall be inserted—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><level class="para1"><num>(aa)</num><content><p>such persons who receive, or become entitled to receive, manufactured dividends, manufactured interest or manufactured overseas dividends as may be prescribed,</p></content></level></quotedStructure></mod></p><p>and</p></content></level><level class="para1" eId="section-159-7-b"><num>(b)</num><content><p>in the words after paragraph (b), for “paragraph 2, 3 or 4 above” there shall be substituted “paragraphs 2 to 5 above”.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-159-7-a"><num>(a)</num><content><p><mod>before the “or” at the end of paragraph (a) there shall be inserted—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><level class="para1"><num>(aa)</num><content><p>such persons who receive, or become entitled to receive, manufactured dividends, manufactured interest or manufactured overseas dividends as may be prescribed,</p></content></level></quotedStructure></mod></p><p>and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-159-7-b"><num>(b)</num><content><p>in the words after paragraph (b), for “paragraph 2, 3 or 4 above” there shall be substituted “paragraphs 2 to 5 above”.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-159-8"><num>(8)</num><content><p><mod>After sub-paragraph (1) of paragraph 8 of that Schedule there shall be inserted the following sub-paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><subparagraph><num>(1A)</num><intro><p>Dividend manufacturing regulations may provide, in relation to prescribed cases where a person makes or receives the payment of any amount representative of an overseas dividend, or is treated for any purposes of this Schedule or such regulations as a person making or receiving such a payment—</p></intro><level class="para1"><num>(a)</num><content><p>for any entitlement of that person to claim relief under Part XVIII to be extinguished or reduced to such extent as may be found under the regulations; and</p></content></level><level class="para1"><num>(b)</num><content><p>for the adjustment, by reference to any provision having effect under the law of a territory outside the United Kingdom, of any amount falling to be taken, for any prescribed purposes of the Tax Acts or the 1992 Act, to be the amount paid or payable by or to any person in respect of any sale, repurchase or other transfer of the overseas securities to which the payment relates.</p></content></level></subparagraph></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-159-9"><num>(9)</num><intro><p>Subsections (2), (4) and (5) above have effect—</p></intro><level class="para1" eId="section-159-9-a"><num>(a)</num><content><p>for the purposes of corporation tax, in relation to accounting periods ending after 31st March 1996; and</p></content></level><level class="para1" eId="section-159-9-b"><num>(b)</num><content><p>for the purposes of income tax, in relation to the year 1996-97 and subsequent years of assessment.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-159-9-a"><num>(a)</num><content><p>for the purposes of corporation tax, in relation to accounting periods ending after 31st March 1996; and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-159-9-b"><num>(b)</num><content><p>for the purposes of income tax, in relation to the year 1996-97 and subsequent years of assessment.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-159-10"><num>(10)</num><content><p>In this section “the appointed day” means such day as the Treasury may by order appoint, and different days may be appointed under this subsection for different purposes.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-160"><num>160</num><heading>Investments in housing</heading><content><p>Schedule 30 to this Act (which makes provision conferring relief from corporation tax on companies that invest in housing) shall have effect.</p></content></section>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-161"><num>161</num><heading>Venture capital trusts: control of companies etc</heading><subsection eId="section-161-1"><num>(1)</num><content><p>Schedule 28B to the Taxes Act 1988 (venture capital trusts: meaning of qualifying holdings) shall have effect, and be deemed always to have had effect, subject to the amendments in subsections (2) and (3) below.</p></content></subsection><subsection eId="section-161-2"><num>(2)</num><intro><p>In paragraph 9 (requirements as to subsidiaries etc. of the relevant company), the following shall be omitted—</p></intro><level class="para1" eId="section-161-2-a"><num>(a)</num><content><p>in sub-paragraph (1), the words “subject to sub-paragraph (2) below”; and</p></content></level><level class="para1" eId="section-161-2-b"><num>(b)</num><content><p>sub-paragraph (2).</p></content></level></subsection><subsection eId="section-161-3"><num>(3)</num><content><p><mod>In paragraph 13 (interpretation), for sub-paragraphs (2) and (3) (“connected” and “control” to be construed in accordance with sections 839 and 416(2) to (6)) there shall be substituted the following sub-paragraphs—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><subparagraph><num>(2)</num><content><p>For the purposes of paragraphs 5(2) and 9 above, the question whether a person controls a company shall be determined in accordance with subsections (2) to (6) of section 416 with the modification given by sub-paragraph (3) below.</p></content></subparagraph><subparagraph><num>(3)</num><intro><p>The modification is that, in determining whether a person controls a company, there shall be disregarded—</p></intro><level class="para1"><num>(a)</num><content><p>his or any other person’s possession of, or entitlement to acquire, relevant fixed-rate preference shares of the company; and</p></content></level><level class="para1"><num>(b)</num><content><p>his or any other person’s possession of, or entitlement to acquire, rights as a loan creditor of the company.</p></content></level></subparagraph><subparagraph><num>(4)</num><content><p>Section 839 shall apply for the purposes of this Schedule, but as if the reference in subsection (8) to section 416 were a reference to subsections (2) to (6) of section 416 with the modification given by sub-paragraph (3) above.</p></content></subparagraph><subparagraph><num>(5)</num><intro><p>For the purposes of sub-paragraph (3) above—</p></intro><level class="para1"><num>(a)</num><content><p>relevant fixed-rate preference shares are fixed-rate preference shares that do not for the time being carry voting rights; and</p></content></level><level class="para1"><num>(b)</num><content><p>“fixed-rate preference shares” has the same meaning as in section 95.</p></content></level></subparagraph></quotedStructure></mod></p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-161-1"><num>(1)</num><content><p>Schedule 28B to the Taxes Act 1988 (venture capital trusts: meaning of qualifying holdings) shall have effect, and be deemed always to have had effect, subject to the amendments in subsections (2) and (3) below.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-161-2"><num>(2)</num><intro><p>In paragraph 9 (requirements as to subsidiaries etc. of the relevant company), the following shall be omitted—</p></intro><level class="para1" eId="section-161-2-a"><num>(a)</num><content><p>in sub-paragraph (1), the words “subject to sub-paragraph (2) below”; and</p></content></level><level class="para1" eId="section-161-2-b"><num>(b)</num><content><p>sub-paragraph (2).</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-161-2-a"><num>(a)</num><content><p>in sub-paragraph (1), the words “subject to sub-paragraph (2) below”; and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-161-2-b"><num>(b)</num><content><p>sub-paragraph (2).</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-161-3"><num>(3)</num><content><p><mod>In paragraph 13 (interpretation), for sub-paragraphs (2) and (3) (“connected” and “control” to be construed in accordance with sections 839 and 416(2) to (6)) there shall be substituted the following sub-paragraphs—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><subparagraph><num>(2)</num><content><p>For the purposes of paragraphs 5(2) and 9 above, the question whether a person controls a company shall be determined in accordance with subsections (2) to (6) of section 416 with the modification given by sub-paragraph (3) below.</p></content></subparagraph><subparagraph><num>(3)</num><intro><p>The modification is that, in determining whether a person controls a company, there shall be disregarded—</p></intro><level class="para1"><num>(a)</num><content><p>his or any other person’s possession of, or entitlement to acquire, relevant fixed-rate preference shares of the company; and</p></content></level><level class="para1"><num>(b)</num><content><p>his or any other person’s possession of, or entitlement to acquire, rights as a loan creditor of the company.</p></content></level></subparagraph><subparagraph><num>(4)</num><content><p>Section 839 shall apply for the purposes of this Schedule, but as if the reference in subsection (8) to section 416 were a reference to subsections (2) to (6) of section 416 with the modification given by sub-paragraph (3) above.</p></content></subparagraph><subparagraph><num>(5)</num><intro><p>For the purposes of sub-paragraph (3) above—</p></intro><level class="para1"><num>(a)</num><content><p>relevant fixed-rate preference shares are fixed-rate preference shares that do not for the time being carry voting rights; and</p></content></level><level class="para1"><num>(b)</num><content><p>“fixed-rate preference shares” has the same meaning as in section 95.</p></content></level></subparagraph></quotedStructure></mod></p></content></subsection>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="part-IV-chapter-VI-crossheading-insurance-policies"><heading>Insurance policies</heading><section eId="section-162"><num>162</num><heading>Qualifying life insurance policies: certification</heading><subsection eId="section-162-1"><num>(1)</num><intro><p>Section 55 of the <noteRef href="#m00108" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1995 (removal of certification requirements for qualifying policies with respect to any time on or after 5th May 1996 etc) shall have effect—</p></intro><level class="para1" eId="section-162-1-a"><num>(a)</num><content><p>with the substitution for “5th May 1996”, wherever occurring, of “the appointed date”; and</p></content></level><level class="para1" eId="section-162-1-b"><num>(b)</num><content><p><mod>with the addition of the following subsection after subsection (8)—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(9)</num><content><p>In this section “the appointed date” means such date as may be specified for the purpose in an order made by the Board.</p></content></subsection></quotedStructure></mod></p></content></level></subsection><subsection eId="section-162-2"><num>(2)</num><content><p>In Schedule 15 to the Taxes Act 1988 (qualifying policies) paragraphs 24(2A) and 25(2) shall have effect with the substitution for “5th May 1996” of “the appointed date for the purposes of section 55 of the Finance Act 1995 (removal of certification requirements)”.</p></content></subsection></section></hcontainer>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-162"><num>162</num><heading>Qualifying life insurance policies: certification</heading><subsection eId="section-162-1"><num>(1)</num><intro><p>Section 55 of the <noteRef href="#m00108" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1995 (removal of certification requirements for qualifying policies with respect to any time on or after 5th May 1996 etc) shall have effect—</p></intro><level class="para1" eId="section-162-1-a"><num>(a)</num><content><p>with the substitution for “5th May 1996”, wherever occurring, of “the appointed date”; and</p></content></level><level class="para1" eId="section-162-1-b"><num>(b)</num><content><p><mod>with the addition of the following subsection after subsection (8)—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(9)</num><content><p>In this section “the appointed date” means such date as may be specified for the purpose in an order made by the Board.</p></content></subsection></quotedStructure></mod></p></content></level></subsection><subsection eId="section-162-2"><num>(2)</num><content><p>In Schedule 15 to the Taxes Act 1988 (qualifying policies) paragraphs 24(2A) and 25(2) shall have effect with the substitution for “5th May 1996” of “the appointed date for the purposes of section 55 of the Finance Act 1995 (removal of certification requirements)”.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-162-1"><num>(1)</num><intro><p>Section 55 of the <noteRef href="#m00108" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1995 (removal of certification requirements for qualifying policies with respect to any time on or after 5th May 1996 etc) shall have effect—</p></intro><level class="para1" eId="section-162-1-a"><num>(a)</num><content><p>with the substitution for “5th May 1996”, wherever occurring, of “the appointed date”; and</p></content></level><level class="para1" eId="section-162-1-b"><num>(b)</num><content><p><mod>with the addition of the following subsection after subsection (8)—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(9)</num><content><p>In this section “the appointed date” means such date as may be specified for the purpose in an order made by the Board.</p></content></subsection></quotedStructure></mod></p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-162-1-a"><num>(a)</num><content><p>with the substitution for “5th May 1996”, wherever occurring, of “the appointed date”; and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-162-1-b"><num>(b)</num><content><p><mod>with the addition of the following subsection after subsection (8)—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(9)</num><content><p>In this section “the appointed date” means such date as may be specified for the purpose in an order made by the Board.</p></content></subsection></quotedStructure></mod></p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-162-2"><num>(2)</num><content><p>In Schedule 15 to the Taxes Act 1988 (qualifying policies) paragraphs 24(2A) and 25(2) shall have effect with the substitution for “5th May 1996” of “the appointed date for the purposes of section 55 of the Finance Act 1995 (removal of certification requirements)”.</p></content></subsection>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="part-IV-chapter-VI-crossheading-insurance-companies"><heading>Insurance companies</heading><section eId="section-163"><num>163</num><heading>Life assurance business losses</heading><content><p>Schedule 31 to this Act, which makes provision about losses arising to insurance companies in the carrying on of life assurance business, shall have effect.</p></content></section><section eId="section-164"><num>164</num><heading>Limits on relief for expenses</heading><subsection eId="section-164-1"><num>(1)</num><content><p><mod>For subsections (2) to (5) of section 76 of the Taxes Act 1988 there shall be substituted the following subsections—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(2)</num><content><p>Where, in the case of any such company, the amount mentioned in paragraph (a) of subsection (2A) below exceeds for any accounting period the amount mentioned in paragraph (b) of that subsection, the amount which by virtue of this section is to be deductible by way of management expenses for that period shall be equal to the basic deduction for that period reduced by the amount of the excess.</p></content></subsection><subsection><num>(2A)</num><intro><p>Those amounts are—</p></intro><level class="para1"><num>(a)</num><content><p>the amount which would be the profits of the company’s life assurance business for that period if computed in accordance with the provisions applicable to Case I of Schedule D and adjusted in respect of losses; and</p></content></level><level class="para1"><num>(b)</num><intro><p>the amount (including any negative amount) produced by deducting the following aggregate amount from the company’s relevant income for that period from its life assurance business, that is to say, the aggregate of—</p></intro><level class="para2"><num>(i)</num><content><p>the basic deduction,</p></content></level><level class="para2"><num>(ii)</num><content><p>any non-trading deficit on the company’s loan relationships which is produced for that period in relation to that business by a separate computation under paragraph 2 of Schedule 11 to the Finance Act 1996,</p></content></level><level class="para2"><num>(iii)</num><content><p>any amount which in pursuance of a claim under paragraph 4(3) of that Schedule is carried back to that period and (in accordance with paragraph 4(5) of that Schedule) applied in reducing profits of the company for that period, and</p></content></level><level class="para2"><num>(iv)</num><content><p>any charges on income for that period so far as they consist in annuities or other annual payments that are referable to the company’s life assurance business and, if they are not annuities, are payable by the company wholly or partly in satisfaction of claims under insurance policies.</p></content></level></level></subsection><subsection><num>(2B)</num><intro><p>For the purposes of subsection (2A) above a company’s relevant income for any accounting period from its life assurance business is the sum of the following—</p></intro><level class="para1"><num>(a)</num><content><p>the income and gains of the company’s life assurance business for that accounting period; and</p></content></level><level class="para1"><num>(b)</num><content><p>the relevant franked investment income of the company for that period so far as it arises from assets held for the purposes of that business and is not included in the income and gains mentioned in paragraph (a) above.</p></content></level></subsection><subsection><num>(2C)</num><intro><p>The adjustment in respect of losses that is to be made for any accounting period under paragraph (a) of subsection (2A) above is a deduction of the amount equal to the unused part of the sum which—</p></intro><level class="para1"><num>(a)</num><content><p>by reference to computations made in respect of the company’s life assurance business in accordance with the provisions applicable to Case I of Schedule D, and</p></content></level><level class="para1"><num>(b)</num><content><p>disregarding section 434A(2),</p></content></level><wrapUp><p>would fall, in the case of the company, to be set off under section 393 against the company’s income for that period.</p></wrapUp></subsection><subsection><num>(2D)</num><content><p>For the purposes of subsection (2C) above, an amount is unused to the extent that it has not been taken into account for any previous accounting period in determining the amount by reference to which the following question was answered, namely, the question whether, and by how much, the amount deductible by virtue of this section by way of management expenses was less than the basic deduction.</p></content></subsection><subsection><num>(5)</num><content><p>Subject to paragraph 4(11) to (13) of Schedule 11 to the Finance Act 1996, where the basic deduction for any period exceeds the amount which for that period is to be deductible by virtue of this section by way of management expenses, the amount to be carried forward by virtue of section 75(3) (including the amount to be so carried forward for the purpose of computing the amount of the basic deduction for any period) shall be increased by the amount of the excess.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-164-2"><num>(2)</num><intro><p>In subsection (8) of that section—</p></intro><level class="para1" eId="section-164-2-a"><num>(a)</num><content><p><mod>after the definition of “authorised person” there shall be inserted the following definition—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><p>“basic deduction”, in relation to an accounting period of an insurance company, means the amount which, by virtue of this section, would be deductible by way of management expenses for that period but for subsection (2) above;</p></quotedStructure></mod></p><p>and</p></content></level><level class="para1" eId="section-164-2-b"><num>(b)</num><content><p><mod>after the definition of “recognised self-regulating organisation” there shall be inserted the following definition—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><p>“relevant franked investment income”, in relation to any insurance company, means any franked investment income of the company in so far as it is not income the tax credits comprised in which may be claimed by the company under section 438(4) or 441A(7);</p></quotedStructure><inline name="appendText">.</inline></mod></p></content></level></subsection><subsection eId="section-164-3"><num>(3)</num><intro><p>In paragraph 5 of Schedule 19AC to the Taxes Act 1988 (modification of section 76)—</p></intro><level class="para1" eId="section-164-3-a"><num>(a)</num><content><p>in sub-paragraph (1), in the subsection (6B) treated as inserted in section 76, for “their” there shall be substituted “its” and the words “and subsections (2) and (3)(b) above” shall be omitted; and</p></content></level><level class="para1" eId="section-164-3-b"><num>(b)</num><content><p><mod>after that sub-paragraph there shall be inserted the following sub-paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><subparagraph><num>(1A)</num><content><p>In section 76 references to franked investment income shall be treated as being references to UK distribution income within the meaning of paragraph 5B of this Schedule.</p></content></subparagraph></quotedStructure></mod></p></content></level></subsection><subsection eId="section-164-4"><num>(4)</num><content><p>In section 56(4) of the Taxes Act 1988 (which contains a reference to the computation required by section 76(2) of that Act), for “by” there shall be substituted “for the purposes of”.</p></content></subsection><subsection eId="section-164-5"><num>(5)</num><content><p>Subject to subsection (6) below, this section has effect in relation to accounting periods beginning on or after 1st January 1996.</p></content></subsection><subsection eId="section-164-6"><num>(6)</num><intro><p>Notwithstanding anything in the previous provisions of this section, section 76 of the Taxes Act 1988 has effect in relation to accounting periods beginning on or after 1st January 1996—</p></intro><level class="para1" eId="section-164-6-a"><num>(a)</num><content><p>as if the reference in subsection (2D) of that section to a previous accounting period included a reference to an accounting period beginning before that date, and</p></content></level><level class="para1" eId="section-164-6-b"><num>(b)</num><intro><p>in relation to such a previous accounting period, as if the references—</p></intro><level class="para2" eId="section-164-6-b-i"><num>(i)</num><content><p>to the amount deductible by virtue of this section, and</p></content></level><level class="para2" eId="section-164-6-b-ii"><num>(ii)</num><content><p>to the basic deduction,</p></content></level><wrapUp><p>were to be construed by reference to whatever provisions had effect in relation to that previous period for purposes corresponding to those of that section as amended by this section.</p></wrapUp></level></subsection></section><section eId="section-165"><num>165</num><heading>Annual payments under insurance policies: deductions</heading><subsection eId="section-165-1"><num>(1)</num><content><p><mod>In section 337 of the Taxes Act 1988 (deductions in computing income), the following subsections shall be inserted after subsection (2)—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(2A)</num><content><p>In computing any profits or losses of a company in accordance with the provisions of this Act applicable to Case I of Schedule D, subsection (2)(b) above shall not prevent the deduction of any annuity or other annual payment which is payable by a company wholly or partly in satisfaction of any claim under an insurance policy in relation to which the company is the insurer.</p></content></subsection><subsection><num>(2B)</num><content><p>The reference in subsection (2A) above to an annuity payable wholly or partly in satisfaction of a claim under an insurance policy shall be taken, in relation to an insurance company (within the meaning of Chapter I of Part XII), to include a reference to every annuity payable by that company; and the references in sections 338(2) and 434B(2) to an annuity paid wholly or partly as mentioned in subsection (2A) above shall be construed accordingly.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-165-2"><num>(2)</num><content><p>In section 338(2) of that Act, in the words after paragraph (b) (payments which are not charges on income), after “corporation tax” there shall be inserted “nor any annuity or other annual payment which (without being so deductible) is paid wholly or partly as mentioned in section 337(2A)”.</p></content></subsection><subsection eId="section-165-3"><num>(3)</num><content><p><mod>In section 434B of that Act (treatment of interest and annuities in the case of insurance companies), subsection (1) shall cease to have effect; and in subsection (2), for the words from the beginning to “mentioned in subsection (1) above” there shall be substituted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(2)</num><content><p>Nothing in section 337(2A) or 338(2) shall be construed as preventing any annuity or other annual payment which is paid wholly or partly as mentioned in section 337(2A)</p></content></subsection></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-165-4"><num>(4)</num><content><p>Subject to subsection (5) below, this section has effect in relation to accounting periods beginning on or after 1st January 1996.</p></content></subsection><subsection eId="section-165-5"><num>(5)</num><content><p>In relation to any accounting period beginning on or after 1st January 1996 but ending before 1st April 1996, this section shall have effect as if any reference in provisions inserted by this section to an annuity payable or paid by an insurance company included a reference to any such interest as was mentioned in section 434B(1) of the Taxes Act 1988 before its repeal by virtue of this section.</p></content></subsection></section><section eId="section-166"><num>166</num><heading>Equalisation reserves</heading><content><p>Schedule 32 to this Act (which makes provision about the tax treatment of equalisation reserves maintained by insurance companies) shall have effect.</p></content></section><section eId="section-167"><num>167</num><heading>Industrial assurance business</heading><subsection eId="section-167-1"><num>(1)</num><content><p>In section 432 of the Taxes Act 1988, subsection (2) (industrial assurance business treated as separate business for the purposes of Chapter I of Part XII) shall cease to have effect.</p></content></subsection><subsection eId="section-167-2"><num>(2)</num><content><p><mod>In section 432A(2) of the Taxes Act 1988, for paragraphs (d) and (e) (different categories of basic life assurance and general annuity business, including and not including industrial assurance business), there shall be substituted the following paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(d)</num><content><p>basic life assurance and general annuity business; and</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-167-3"><num>(3)</num><intro><p>In section 86 of the <noteRef href="#m00109" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1989 (spreading of relief for acquisition expenses)—</p></intro><level class="para1" eId="section-167-3-a"><num>(a)</num><content><p>in subsection (1)(a), for “in respect of industrial life assurance business carried on by the company” there shall be substituted “for persons who collect premiums from house to house”; and</p></content></level><level class="para1" eId="section-167-3-b"><num>(b)</num><content><p>in subsection (2), for “in respect of industrial life assurance business” there shall be substituted “for persons who collect premiums from house to house”.</p></content></level></subsection><subsection eId="section-167-4"><num>(4)</num><content><p>In section 832 of the Taxes Act 1988 (interpretation), in the definition of “industrial assurance business” for “has” there shall be substituted “means any such business carried on before the day appointed for the coming into force of section 167(4) of the Finance Act 1996 as was industrial assurance business within”.</p></content></subsection><subsection eId="section-167-5"><num>(5)</num><content><p>In Schedule 14 to the Taxes Act 1988 (ancillary provisions about relief in respect of life assurance premiums), in paragraph 8, at the beginning of sub-paragraph (4) (policy which is varied so as to increase benefits, etc. to be treated as issued after 13th March 1984) there shall be inserted “Subject to sub-paragraph (8) below,”.</p></content></subsection><subsection eId="section-167-6"><num>(6)</num><content><p><mod>After sub-paragraph (7) of that paragraph there shall be inserted the following sub-paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(8)</num><intro><p>Sub-paragraph (4) above does not apply in the case of a variation so as to increase the benefits secured, if the variation is made—</p></intro><level class="para1"><num>(a)</num><content><p>on or after such day as the Board may by order appoint, and</p></content></level><level class="para1"><num>(b)</num><content><p>in consideration of a change in the method of payment of premiums from collection by a person collecting premiums from house to house to payment by a different method.</p></content></level></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-167-7"><num>(7)</num><intro><p>In Schedule 15 to the Taxes Act 1988 (qualifying policies)—</p></intro><level class="para1" eId="section-167-7-a"><num>(a)</num><content><p>in paragraph 1(6) (calculation of amount included in premiums of whole life and term insurances in respect of their payment otherwise than annually), for “and if the policy is issued in the course of an industrial assurance business,” there shall be substituted “and if the policy provides for payment otherwise than annually without providing for the amount of the premiums if they are paid annually,”; and</p></content></level><level class="para1" eId="section-167-7-b"><num>(b)</num><content><p>in paragraph 2(2) (the equivalent calculation for endowment assurances), for “issued in the course of an industrial assurance business” there shall be substituted “that provides for the payment of premiums otherwise than annually without providing for the amount of the premiums if they are paid annually,”.</p></content></level></subsection><subsection eId="section-167-8"><num>(8)</num><content><p><mod>After paragraph 8 of that Schedule there shall be inserted the following paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><paragraph class="schProv1"><num>8A</num><subparagraph><num>(1)</num><intro><p>Paragraphs 7 and 8 above shall have effect in relation to any policy issued on or after the appointed day as if the references to the issue of a policy in the course of an industrial assurance business were references to the issue of a policy by any company in a case in which—</p></intro><level class="para1"><num>(a)</num><content><p>the company, before that day and in the course of such a business, issued any policy which was a qualifying policy by virtue of either of those paragraphs; and</p></content></level><level class="para1"><num>(b)</num><content><p>the policies which on 28th November 1995 were being offered by the company as available to be issued included policies of the same description as the policy issued on or after the appointed day.</p></content></level></subparagraph><subparagraph><num>(2)</num><content><p>In this paragraph “the appointed day” means such day as the Board may by order appoint.</p></content></subparagraph></paragraph></quotedStructure></mod></p></content></subsection><subsection eId="section-167-9"><num>(9)</num><content><p><mod>In paragraph 18(3) of that Schedule (certain variations of a policy not to affect whether policy is a qualifying policy), after paragraph (b) there shall be inserted <quotedText startQuote="“">or</quotedText><quotedStructure endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><level class="para1"><num>(c)</num><intro><p>any variation so as to increase the benefits secured or reduce the premiums payable which is effected—</p></intro><level class="para2"><num>(i)</num><content><p>on or after such day as the Board may by order appoint, and</p></content></level><level class="para2"><num>(ii)</num><content><p>in consideration of a change in the method of payment of premiums from collection by a person collecting premiums from house to house to payment by a different method.</p></content></level></level></quotedStructure></mod></p></content></subsection><subsection eId="section-167-10"><num>(10)</num><content><p>Subsections (1) to (3) above have effect in relation to accounting periods beginning on or after 1st January 1996.</p></content></subsection><subsection eId="section-167-11"><num>(11)</num><content><p>Subsection (4) above shall come into force on such day as the Board may by order appoint.</p></content></subsection><subsection eId="section-167-12"><num>(12)</num><content><p>Subsection (7) above shall have effect in relation to policies issued on or after such day as the Board may by order appoint.</p></content></subsection></section><section eId="section-168"><num>168</num><heading>Capital redemption business</heading><subsection eId="section-168-1"><num>(1)</num><content><p><mod>For subsection (3) of section 458 of the Taxes Act 1988 (meaning of capital redemption business) there shall be substituted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(3)</num><intro><p>In this section “capital redemption business” means any business in so far as it—</p></intro><level class="para1"><num>(a)</num><content><p>is insurance business for the purposes of the <noteRef href="#m00110" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Insurance Companies Act 1982, but not life assurance business; and</p></content></level><level class="para1"><num>(b)</num><content><p>consists in effecting on the basis of actuarial calculations, and carrying out, contracts under which, in return for one or more fixed payments, a sum or series of sums of a specified amount become payable at a future time or over a period.</p></content></level></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-168-2"><num>(2)</num><content><p>Schedule 33 to this Act (which makes provision for the application of the I minus E basis of charging tax to companies carrying on capital redemption business) shall have effect.</p></content></subsection><subsection eId="section-168-3"><num>(3)</num><content><p><mod>In Chapter I of Part XII of the Taxes Act 1988, after section 458 (capital redemption business) there shall be inserted the following section—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>458A</num><heading>Capital redemption business: power to apply life assurance provisions</heading><subsection><num>(1)</num><content><p>The Treasury may by regulations provide for the life assurance provisions of the Corporation Tax Acts to have effect in relation to companies carrying on capital redemption business as if capital redemption business were, or were a category of, life assurance business.</p></content></subsection><subsection><num>(2)</num><content><p>Regulations under this section may provide that the provisions applied by the regulations are to have effect as respects capital redemption business with such modifications and exceptions as may be provided for in the regulations.</p></content></subsection><subsection><num>(3)</num><intro><p>Regulations under this section may—</p></intro><level class="para1"><num>(a)</num><content><p>make different provision for different cases;</p></content></level><level class="para1"><num>(b)</num><content><p>include such incidental, supplemental, consequential and transitional provision (including provision modifying provisions of the Corporation Tax Acts other than the life assurance provisions) as the Treasury consider appropriate; and</p></content></level><level class="para1"><num>(c)</num><content><p>include retrospective provision.</p></content></level></subsection><subsection><num>(4)</num><intro><p>In this section references to the life assurance provisions of the Corporation Tax Acts are references to the following—</p></intro><level class="para1"><num>(a)</num><content><p>the provisions of this Chapter so far as they relate to life assurance business or companies carrying on such business; and</p></content></level><level class="para1"><num>(b)</num><content><p>any other provisions of the Corporation Tax Acts making separate provision by reference to whether or not the business of a company is or includes life assurance business or any category of insurance business that includes life assurance business.</p></content></level></subsection><subsection><num>(5)</num><content><p>In this section “capital redemption business” has the same meaning as in section 458.</p></content></subsection></section></quotedStructure></mod></p></content></subsection><subsection eId="section-168-4"><num>(4)</num><content><p>In section 539(3) of that Act, in the definition of “capital redemption policy” for “insurance” there shall be substituted “contract”.</p></content></subsection><subsection eId="section-168-5"><num>(5)</num><content><p>In section 553(10) of that Act, in paragraph (a) of the definition of “new offshore capital redemption policy”, for “an insurance” there shall be substituted “a contract”.</p></content></subsection><subsection eId="section-168-6"><num>(6)</num><content><p>Subsection (1) above shall have effect as respects accounting periods ending on or after the day appointed under section 199 of the <noteRef href="#m00111" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1994 for the purposes of Chapter III of Part IV of that Act (self-assessment management provisions), and subsections (4) and (5) above shall have effect as respects contracts effected on or after that day.</p></content></subsection></section><section eId="section-169"><num>169</num><heading>Provisional repayments in connection with pension business</heading><subsection eId="section-169-1"><num>(1)</num><content><p>Schedule 19AB to the Taxes Act 1988 (pension business: payments on account of tax credits and deducted tax) shall be amended in accordance with the provisions of Part I of Schedule 34 to this Act.</p></content></subsection><subsection eId="section-169-2"><num>(2)</num><content><p>Schedule 19AC to the Taxes Act 1988 (modification of that Act in relation to overseas life insurance companies) shall be amended in accordance with the provisions of Part II of Schedule 34 to this Act.</p></content></subsection><subsection eId="section-169-3"><num>(3)</num><content><p>The amendments made by Schedule 34 to this Act shall have effect in relation to provisional repayment periods, within the meaning of Schedule 19AB to the <noteRef href="#m00112" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxes Act 1988, falling in accounting periods ending on or after the day appointed under section 199 of the Finance Act 1994 for the purposes of Chapter III of Part IV of that Act (self-assessment management provisions).</p></content></subsection></section><section eId="section-170"><num>170</num><heading>Time for amending and enquiring into returns</heading><subsection eId="section-170-1"><num>(1)</num><content><p><mod>After section 11AB of the <noteRef href="#m00113" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxes Management Act 1970 there shall be inserted the following sections—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>11AC</num><heading>Modifications of sections 11AA and 11AB in relation to non-annual accounting of general insurance business</heading><subsection><num>(1)</num><content><p>This section applies in any case where a company carrying on insurance business in any period delivers a return for that period under section 11 of this Act which is based wholly or partly on accounts which the company is required or permitted to draw up using the method described in paragraph 52 of Schedule 9A to the <noteRef href="#m00114" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Companies Act 1985 (accounting for general insurance business on a non-annual basis).</p></content></subsection><subsection><num>(2)</num><content><p><mod>Where this section applies, section 11AA(2) of this Act shall have effect as if after paragraph (b) there were added <quotedText startQuote="“">and</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>c1</num><intro><p>where a company has delivered a return which is based wholly or partly on accounts drawn up as mentioned in section 11AC(1) of this Act, then, at any time before the end of the period of twelve months beginning with the date on which any particular technical provision constituted in the case of those accounts as described in paragraph 52 of Schedule 9A to the <noteRef href="#m00115" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Companies Act 1985 is replaced as described in sub-paragraph (4) of that paragraph, the company may by notice to an officer of the Board so amend its self-assessment as to give effect to any amendments to the return—</p></intro><level class="para2"><num>(i)</num><content><p>which arise from the replacement of that technical provision, and</p></content></level><level class="para2"><num>(ii)</num><content><p>which the company has notified to such an officer.</p></content></level></level></quotedStructure></mod></p></content></subsection><subsection><num>(3)</num><intro><p>Where this section applies, section 11AB of this Act shall have effect—</p></intro><level class="para1"><num>(a)</num><content><p>as if in subsection (1)(b) after “subsection (2)(b)” there were inserted “or (c1)”; and</p></content></level><level class="para1"><num>(b)</num><content><p><mod>as if in subsection (2) for the words from “is” to the end of paragraph (b) there were substituted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>a1</num><intro><p>in the case of a return (whenever delivered) which is based wholly or partly on accounts drawn up as mentioned in section 11AC(1) of this Act, is whichever of the following periods ends the later, that is to say—</p></intro><level class="para2"><num>(i)</num><content><p>the period of two years beginning with the date (or, if there is more than one such date, the latest date) on which any technical provision constituted in the case of those accounts as described in paragraph 52 of Schedule 9A to the Companies Act 1985 is replaced as mentioned in sub-paragraph (4) of that paragraph; or</p></content></level><level class="para2"><num>(ii)</num><content><p>the period ending with the quarter day next following the first anniversary of the day on which the return was delivered; and</p></content></level></level><level class="para1"><num>b1</num><intro><p>in the case of an amendment of such a return—</p></intro><level class="para2"><num>(i)</num><content><p>if the amendment is made on or before the filing date, is the period of twelve months beginning with that date; or</p></content></level><level class="para2"><num>(ii)</num><content><p>if the amendment is made after that date, is the period ending with the quarter day next following the first anniversary of the day on which the amendment was made;</p></content></level></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></level></subsection></section><section><num>11AD</num><heading>Modifications of sections 11AA and 11AB for insurance companies with non-annual actuarial investigations</heading><subsection><num>(1)</num><content><p>This section applies in any case where a return under section 11 of this Act is delivered by an insurance company which is permitted by an order under section 68 of the <noteRef href="#m00116" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Insurance Companies Act 1982 to cause investigations to be made into its financial condition less frequently than is required by section 18 of that Act.</p></content></subsection><subsection><num>(2)</num><content><p><mod>Where this section applies, section 11AA(2) of this Act shall have effect as if, after paragraph (b), there were added <quotedText startQuote="“">and</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>c2</num><intro><p>where a company falling within section 11AD(1) of this Act has delivered a return for any period, then, at any time before the end of the period of twelve months beginning with the date as at which the relevant investigation is carried out, that is to say—</p></intro><level class="para2"><num>(i)</num><content><p>if the return is for a period as at the end of which there is carried out an investigation under section 18 of the <noteRef href="#m00117" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Insurance Companies Act 1982 into the financial condition of the company, that investigation, or</p></content></level><level class="para2"><num>(ii)</num><content><p>if the return is not for such a period, the first such investigation to be made into the financial condition of the company as at the end of a subsequent period,</p></content></level><wrapUp><p>the company may by notice to an officer of the Board so amend its self-assessment as to give effect to any amendments to its return which arise from that investigation and which the company has notified to such an officer.</p></wrapUp></level></quotedStructure></mod></p></content></subsection><subsection><num>(3)</num><intro><p>Where this section applies, section 11AB of this Act shall have effect—</p></intro><level class="para1"><num>(a)</num><content><p>as if in subsection (1)(b) after “subsection (2)(b)” there were inserted “or (c2)”; and</p></content></level><level class="para1"><num>(b)</num><content><p><mod>as if in subsection (2) for the words from “is” to the end of paragraph (b) there were substituted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>a2</num><content><p>in the case of a return delivered at any time by a company falling within section 11AD(1) of this Act, is the period of two years beginning with the date as at which the relevant investigation, as defined in section 11AA(2)(c2) of this Act, is carried out; and</p></content></level><level class="para1"><num>b2</num><intro><p>in the case of an amendment of such a return—</p></intro><level class="para2"><num>(i)</num><content><p>if the amendment is made on or before the filing date, is the period of twelve months beginning with that date; or</p></content></level><level class="para2"><num>(ii)</num><content><p>if the amendment is made after that date, is the period ending with the quarter day next following the first anniversary of the day on which the amendment was made;</p></content></level></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></level></subsection></section><section><num>11AE</num><heading>Modifications of sections 11AA and 11AB for friendly societies with non-annual actuarial investigations</heading><subsection><num>(1)</num><content><p>This section applies in any case where a return under section 11 of this Act is delivered by a friendly society which is required by section 47 of the <noteRef href="#m00118" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Friendly Societies Act 1992 to cause an investigation to be made into its financial condition at least once in every period of three years.</p></content></subsection><subsection><num>(2)</num><content><p><mod>Where this section applies, section 11AA(2) of this Act shall have effect as if, after paragraph (b), there were added <quotedText startQuote="“">and</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>c3</num><intro><p>where a friendly society falling within section 11AE(1) of this Act has delivered a return for any period, then, at any time before the end of the period of fifteen months beginning with the date as at which the relevant investigation is carried out, that is to say—</p></intro><level class="para2"><num>(i)</num><content><p>if the return is for a period as at the end of which there is carried out an investigation under section 47 of the <noteRef href="#m00119" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Friendly Societies Act 1992 into the financial condition of the society, that investigation, or</p></content></level><level class="para2"><num>(ii)</num><content><p>if the return is not for such a period, the first such investigation to be made into the financial condition of the society as at the end of a subsequent period,</p></content></level><wrapUp><p>the society may by notice to an officer of the Board so amend its self-assessment as to give effect to any amendments to its return which arise from that investigation and which the society has notified to such an officer.</p></wrapUp></level></quotedStructure></mod></p></content></subsection><subsection><num>(3)</num><intro><p>Where this section applies, section 11AB of this Act shall have effect—</p></intro><level class="para1"><num>(a)</num><content><p>as if in subsection (1)(b) after “subsection (2)(b)” there were inserted “or (c3)”; and</p></content></level><level class="para1"><num>(b)</num><content><p><mod>as if in subsection (2) for the words from “is” to the end of paragraph (b) there were substituted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>a3</num><content><p>in the case of a return delivered at any time by a friendly society falling within section 11AE(1) of this Act, is the period of twenty seven months beginning with the date as at which the relevant investigation, as defined in section 11AA(2)(c3) of this Act, is carried out; and</p></content></level><level class="para1"><num>b3</num><intro><p>in the case of an amendment of such a return—</p></intro><level class="para2"><num>(i)</num><content><p>if the amendment is made on or before the filing date, is the period of twelve months beginning with that date; or</p></content></level><level class="para2"><num>(ii)</num><content><p>if the amendment is made after that date, is the period ending with the quarter day next following the first anniversary of the day on which the amendment was made;</p></content></level></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></level></subsection></section></quotedStructure></mod></p></content></subsection><subsection eId="section-170-2"><num>(2)</num><content><p>The amendment made by subsection (1) above shall have effect as respects accounting periods ending on or after the day appointed under section 199 of the <noteRef href="#m00120" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1994 for the purposes of Chapter III of Part IV of that Act (self-assessment management provisions).</p></content></subsection></section></hcontainer>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-163"><num>163</num><heading>Life assurance business losses</heading><content><p>Schedule 31 to this Act, which makes provision about losses arising to insurance companies in the carrying on of life assurance business, shall have effect.</p></content></section>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-164"><num>164</num><heading>Limits on relief for expenses</heading><subsection eId="section-164-1"><num>(1)</num><content><p><mod>For subsections (2) to (5) of section 76 of the Taxes Act 1988 there shall be substituted the following subsections—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(2)</num><content><p>Where, in the case of any such company, the amount mentioned in paragraph (a) of subsection (2A) below exceeds for any accounting period the amount mentioned in paragraph (b) of that subsection, the amount which by virtue of this section is to be deductible by way of management expenses for that period shall be equal to the basic deduction for that period reduced by the amount of the excess.</p></content></subsection><subsection><num>(2A)</num><intro><p>Those amounts are—</p></intro><level class="para1"><num>(a)</num><content><p>the amount which would be the profits of the company’s life assurance business for that period if computed in accordance with the provisions applicable to Case I of Schedule D and adjusted in respect of losses; and</p></content></level><level class="para1"><num>(b)</num><intro><p>the amount (including any negative amount) produced by deducting the following aggregate amount from the company’s relevant income for that period from its life assurance business, that is to say, the aggregate of—</p></intro><level class="para2"><num>(i)</num><content><p>the basic deduction,</p></content></level><level class="para2"><num>(ii)</num><content><p>any non-trading deficit on the company’s loan relationships which is produced for that period in relation to that business by a separate computation under paragraph 2 of Schedule 11 to the Finance Act 1996,</p></content></level><level class="para2"><num>(iii)</num><content><p>any amount which in pursuance of a claim under paragraph 4(3) of that Schedule is carried back to that period and (in accordance with paragraph 4(5) of that Schedule) applied in reducing profits of the company for that period, and</p></content></level><level class="para2"><num>(iv)</num><content><p>any charges on income for that period so far as they consist in annuities or other annual payments that are referable to the company’s life assurance business and, if they are not annuities, are payable by the company wholly or partly in satisfaction of claims under insurance policies.</p></content></level></level></subsection><subsection><num>(2B)</num><intro><p>For the purposes of subsection (2A) above a company’s relevant income for any accounting period from its life assurance business is the sum of the following—</p></intro><level class="para1"><num>(a)</num><content><p>the income and gains of the company’s life assurance business for that accounting period; and</p></content></level><level class="para1"><num>(b)</num><content><p>the relevant franked investment income of the company for that period so far as it arises from assets held for the purposes of that business and is not included in the income and gains mentioned in paragraph (a) above.</p></content></level></subsection><subsection><num>(2C)</num><intro><p>The adjustment in respect of losses that is to be made for any accounting period under paragraph (a) of subsection (2A) above is a deduction of the amount equal to the unused part of the sum which—</p></intro><level class="para1"><num>(a)</num><content><p>by reference to computations made in respect of the company’s life assurance business in accordance with the provisions applicable to Case I of Schedule D, and</p></content></level><level class="para1"><num>(b)</num><content><p>disregarding section 434A(2),</p></content></level><wrapUp><p>would fall, in the case of the company, to be set off under section 393 against the company’s income for that period.</p></wrapUp></subsection><subsection><num>(2D)</num><content><p>For the purposes of subsection (2C) above, an amount is unused to the extent that it has not been taken into account for any previous accounting period in determining the amount by reference to which the following question was answered, namely, the question whether, and by how much, the amount deductible by virtue of this section by way of management expenses was less than the basic deduction.</p></content></subsection><subsection><num>(5)</num><content><p>Subject to paragraph 4(11) to (13) of Schedule 11 to the Finance Act 1996, where the basic deduction for any period exceeds the amount which for that period is to be deductible by virtue of this section by way of management expenses, the amount to be carried forward by virtue of section 75(3) (including the amount to be so carried forward for the purpose of computing the amount of the basic deduction for any period) shall be increased by the amount of the excess.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-164-2"><num>(2)</num><intro><p>In subsection (8) of that section—</p></intro><level class="para1" eId="section-164-2-a"><num>(a)</num><content><p><mod>after the definition of “authorised person” there shall be inserted the following definition—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><p>“basic deduction”, in relation to an accounting period of an insurance company, means the amount which, by virtue of this section, would be deductible by way of management expenses for that period but for subsection (2) above;</p></quotedStructure></mod></p><p>and</p></content></level><level class="para1" eId="section-164-2-b"><num>(b)</num><content><p><mod>after the definition of “recognised self-regulating organisation” there shall be inserted the following definition—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><p>“relevant franked investment income”, in relation to any insurance company, means any franked investment income of the company in so far as it is not income the tax credits comprised in which may be claimed by the company under section 438(4) or 441A(7);</p></quotedStructure><inline name="appendText">.</inline></mod></p></content></level></subsection><subsection eId="section-164-3"><num>(3)</num><intro><p>In paragraph 5 of Schedule 19AC to the Taxes Act 1988 (modification of section 76)—</p></intro><level class="para1" eId="section-164-3-a"><num>(a)</num><content><p>in sub-paragraph (1), in the subsection (6B) treated as inserted in section 76, for “their” there shall be substituted “its” and the words “and subsections (2) and (3)(b) above” shall be omitted; and</p></content></level><level class="para1" eId="section-164-3-b"><num>(b)</num><content><p><mod>after that sub-paragraph there shall be inserted the following sub-paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><subparagraph><num>(1A)</num><content><p>In section 76 references to franked investment income shall be treated as being references to UK distribution income within the meaning of paragraph 5B of this Schedule.</p></content></subparagraph></quotedStructure></mod></p></content></level></subsection><subsection eId="section-164-4"><num>(4)</num><content><p>In section 56(4) of the Taxes Act 1988 (which contains a reference to the computation required by section 76(2) of that Act), for “by” there shall be substituted “for the purposes of”.</p></content></subsection><subsection eId="section-164-5"><num>(5)</num><content><p>Subject to subsection (6) below, this section has effect in relation to accounting periods beginning on or after 1st January 1996.</p></content></subsection><subsection eId="section-164-6"><num>(6)</num><intro><p>Notwithstanding anything in the previous provisions of this section, section 76 of the Taxes Act 1988 has effect in relation to accounting periods beginning on or after 1st January 1996—</p></intro><level class="para1" eId="section-164-6-a"><num>(a)</num><content><p>as if the reference in subsection (2D) of that section to a previous accounting period included a reference to an accounting period beginning before that date, and</p></content></level><level class="para1" eId="section-164-6-b"><num>(b)</num><intro><p>in relation to such a previous accounting period, as if the references—</p></intro><level class="para2" eId="section-164-6-b-i"><num>(i)</num><content><p>to the amount deductible by virtue of this section, and</p></content></level><level class="para2" eId="section-164-6-b-ii"><num>(ii)</num><content><p>to the basic deduction,</p></content></level><wrapUp><p>were to be construed by reference to whatever provisions had effect in relation to that previous period for purposes corresponding to those of that section as amended by this section.</p></wrapUp></level></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-164-1"><num>(1)</num><content><p><mod>For subsections (2) to (5) of section 76 of the Taxes Act 1988 there shall be substituted the following subsections—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(2)</num><content><p>Where, in the case of any such company, the amount mentioned in paragraph (a) of subsection (2A) below exceeds for any accounting period the amount mentioned in paragraph (b) of that subsection, the amount which by virtue of this section is to be deductible by way of management expenses for that period shall be equal to the basic deduction for that period reduced by the amount of the excess.</p></content></subsection><subsection><num>(2A)</num><intro><p>Those amounts are—</p></intro><level class="para1"><num>(a)</num><content><p>the amount which would be the profits of the company’s life assurance business for that period if computed in accordance with the provisions applicable to Case I of Schedule D and adjusted in respect of losses; and</p></content></level><level class="para1"><num>(b)</num><intro><p>the amount (including any negative amount) produced by deducting the following aggregate amount from the company’s relevant income for that period from its life assurance business, that is to say, the aggregate of—</p></intro><level class="para2"><num>(i)</num><content><p>the basic deduction,</p></content></level><level class="para2"><num>(ii)</num><content><p>any non-trading deficit on the company’s loan relationships which is produced for that period in relation to that business by a separate computation under paragraph 2 of Schedule 11 to the Finance Act 1996,</p></content></level><level class="para2"><num>(iii)</num><content><p>any amount which in pursuance of a claim under paragraph 4(3) of that Schedule is carried back to that period and (in accordance with paragraph 4(5) of that Schedule) applied in reducing profits of the company for that period, and</p></content></level><level class="para2"><num>(iv)</num><content><p>any charges on income for that period so far as they consist in annuities or other annual payments that are referable to the company’s life assurance business and, if they are not annuities, are payable by the company wholly or partly in satisfaction of claims under insurance policies.</p></content></level></level></subsection><subsection><num>(2B)</num><intro><p>For the purposes of subsection (2A) above a company’s relevant income for any accounting period from its life assurance business is the sum of the following—</p></intro><level class="para1"><num>(a)</num><content><p>the income and gains of the company’s life assurance business for that accounting period; and</p></content></level><level class="para1"><num>(b)</num><content><p>the relevant franked investment income of the company for that period so far as it arises from assets held for the purposes of that business and is not included in the income and gains mentioned in paragraph (a) above.</p></content></level></subsection><subsection><num>(2C)</num><intro><p>The adjustment in respect of losses that is to be made for any accounting period under paragraph (a) of subsection (2A) above is a deduction of the amount equal to the unused part of the sum which—</p></intro><level class="para1"><num>(a)</num><content><p>by reference to computations made in respect of the company’s life assurance business in accordance with the provisions applicable to Case I of Schedule D, and</p></content></level><level class="para1"><num>(b)</num><content><p>disregarding section 434A(2),</p></content></level><wrapUp><p>would fall, in the case of the company, to be set off under section 393 against the company’s income for that period.</p></wrapUp></subsection><subsection><num>(2D)</num><content><p>For the purposes of subsection (2C) above, an amount is unused to the extent that it has not been taken into account for any previous accounting period in determining the amount by reference to which the following question was answered, namely, the question whether, and by how much, the amount deductible by virtue of this section by way of management expenses was less than the basic deduction.</p></content></subsection><subsection><num>(5)</num><content><p>Subject to paragraph 4(11) to (13) of Schedule 11 to the Finance Act 1996, where the basic deduction for any period exceeds the amount which for that period is to be deductible by virtue of this section by way of management expenses, the amount to be carried forward by virtue of section 75(3) (including the amount to be so carried forward for the purpose of computing the amount of the basic deduction for any period) shall be increased by the amount of the excess.</p></content></subsection></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-164-2"><num>(2)</num><intro><p>In subsection (8) of that section—</p></intro><level class="para1" eId="section-164-2-a"><num>(a)</num><content><p><mod>after the definition of “authorised person” there shall be inserted the following definition—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><p>“basic deduction”, in relation to an accounting period of an insurance company, means the amount which, by virtue of this section, would be deductible by way of management expenses for that period but for subsection (2) above;</p></quotedStructure></mod></p><p>and</p></content></level><level class="para1" eId="section-164-2-b"><num>(b)</num><content><p><mod>after the definition of “recognised self-regulating organisation” there shall be inserted the following definition—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><p>“relevant franked investment income”, in relation to any insurance company, means any franked investment income of the company in so far as it is not income the tax credits comprised in which may be claimed by the company under section 438(4) or 441A(7);</p></quotedStructure><inline name="appendText">.</inline></mod></p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-164-2-a"><num>(a)</num><content><p><mod>after the definition of “authorised person” there shall be inserted the following definition—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><p>“basic deduction”, in relation to an accounting period of an insurance company, means the amount which, by virtue of this section, would be deductible by way of management expenses for that period but for subsection (2) above;</p></quotedStructure></mod></p><p>and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-164-2-b"><num>(b)</num><content><p><mod>after the definition of “recognised self-regulating organisation” there shall be inserted the following definition—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><p>“relevant franked investment income”, in relation to any insurance company, means any franked investment income of the company in so far as it is not income the tax credits comprised in which may be claimed by the company under section 438(4) or 441A(7);</p></quotedStructure><inline name="appendText">.</inline></mod></p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-164-3"><num>(3)</num><intro><p>In paragraph 5 of Schedule 19AC to the Taxes Act 1988 (modification of section 76)—</p></intro><level class="para1" eId="section-164-3-a"><num>(a)</num><content><p>in sub-paragraph (1), in the subsection (6B) treated as inserted in section 76, for “their” there shall be substituted “its” and the words “and subsections (2) and (3)(b) above” shall be omitted; and</p></content></level><level class="para1" eId="section-164-3-b"><num>(b)</num><content><p><mod>after that sub-paragraph there shall be inserted the following sub-paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><subparagraph><num>(1A)</num><content><p>In section 76 references to franked investment income shall be treated as being references to UK distribution income within the meaning of paragraph 5B of this Schedule.</p></content></subparagraph></quotedStructure></mod></p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-164-3-a"><num>(a)</num><content><p>in sub-paragraph (1), in the subsection (6B) treated as inserted in section 76, for “their” there shall be substituted “its” and the words “and subsections (2) and (3)(b) above” shall be omitted; and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-164-3-b"><num>(b)</num><content><p><mod>after that sub-paragraph there shall be inserted the following sub-paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><subparagraph><num>(1A)</num><content><p>In section 76 references to franked investment income shall be treated as being references to UK distribution income within the meaning of paragraph 5B of this Schedule.</p></content></subparagraph></quotedStructure></mod></p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-164-4"><num>(4)</num><content><p>In section 56(4) of the Taxes Act 1988 (which contains a reference to the computation required by section 76(2) of that Act), for “by” there shall be substituted “for the purposes of”.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-164-5"><num>(5)</num><content><p>Subject to subsection (6) below, this section has effect in relation to accounting periods beginning on or after 1st January 1996.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-164-6"><num>(6)</num><intro><p>Notwithstanding anything in the previous provisions of this section, section 76 of the Taxes Act 1988 has effect in relation to accounting periods beginning on or after 1st January 1996—</p></intro><level class="para1" eId="section-164-6-a"><num>(a)</num><content><p>as if the reference in subsection (2D) of that section to a previous accounting period included a reference to an accounting period beginning before that date, and</p></content></level><level class="para1" eId="section-164-6-b"><num>(b)</num><intro><p>in relation to such a previous accounting period, as if the references—</p></intro><level class="para2" eId="section-164-6-b-i"><num>(i)</num><content><p>to the amount deductible by virtue of this section, and</p></content></level><level class="para2" eId="section-164-6-b-ii"><num>(ii)</num><content><p>to the basic deduction,</p></content></level><wrapUp><p>were to be construed by reference to whatever provisions had effect in relation to that previous period for purposes corresponding to those of that section as amended by this section.</p></wrapUp></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-164-6-a"><num>(a)</num><content><p>as if the reference in subsection (2D) of that section to a previous accounting period included a reference to an accounting period beginning before that date, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-164-6-b"><num>(b)</num><intro><p>in relation to such a previous accounting period, as if the references—</p></intro><level class="para2" eId="section-164-6-b-i"><num>(i)</num><content><p>to the amount deductible by virtue of this section, and</p></content></level><level class="para2" eId="section-164-6-b-ii"><num>(ii)</num><content><p>to the basic deduction,</p></content></level><wrapUp><p>were to be construed by reference to whatever provisions had effect in relation to that previous period for purposes corresponding to those of that section as amended by this section.</p></wrapUp></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-164-6-b-i"><num>(i)</num><content><p>to the amount deductible by virtue of this section, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-164-6-b-ii"><num>(ii)</num><content><p>to the basic deduction,</p></content></level>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-165"><num>165</num><heading>Annual payments under insurance policies: deductions</heading><subsection eId="section-165-1"><num>(1)</num><content><p><mod>In section 337 of the Taxes Act 1988 (deductions in computing income), the following subsections shall be inserted after subsection (2)—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(2A)</num><content><p>In computing any profits or losses of a company in accordance with the provisions of this Act applicable to Case I of Schedule D, subsection (2)(b) above shall not prevent the deduction of any annuity or other annual payment which is payable by a company wholly or partly in satisfaction of any claim under an insurance policy in relation to which the company is the insurer.</p></content></subsection><subsection><num>(2B)</num><content><p>The reference in subsection (2A) above to an annuity payable wholly or partly in satisfaction of a claim under an insurance policy shall be taken, in relation to an insurance company (within the meaning of Chapter I of Part XII), to include a reference to every annuity payable by that company; and the references in sections 338(2) and 434B(2) to an annuity paid wholly or partly as mentioned in subsection (2A) above shall be construed accordingly.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-165-2"><num>(2)</num><content><p>In section 338(2) of that Act, in the words after paragraph (b) (payments which are not charges on income), after “corporation tax” there shall be inserted “nor any annuity or other annual payment which (without being so deductible) is paid wholly or partly as mentioned in section 337(2A)”.</p></content></subsection><subsection eId="section-165-3"><num>(3)</num><content><p><mod>In section 434B of that Act (treatment of interest and annuities in the case of insurance companies), subsection (1) shall cease to have effect; and in subsection (2), for the words from the beginning to “mentioned in subsection (1) above” there shall be substituted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(2)</num><content><p>Nothing in section 337(2A) or 338(2) shall be construed as preventing any annuity or other annual payment which is paid wholly or partly as mentioned in section 337(2A)</p></content></subsection></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-165-4"><num>(4)</num><content><p>Subject to subsection (5) below, this section has effect in relation to accounting periods beginning on or after 1st January 1996.</p></content></subsection><subsection eId="section-165-5"><num>(5)</num><content><p>In relation to any accounting period beginning on or after 1st January 1996 but ending before 1st April 1996, this section shall have effect as if any reference in provisions inserted by this section to an annuity payable or paid by an insurance company included a reference to any such interest as was mentioned in section 434B(1) of the Taxes Act 1988 before its repeal by virtue of this section.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-165-1"><num>(1)</num><content><p><mod>In section 337 of the Taxes Act 1988 (deductions in computing income), the following subsections shall be inserted after subsection (2)—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(2A)</num><content><p>In computing any profits or losses of a company in accordance with the provisions of this Act applicable to Case I of Schedule D, subsection (2)(b) above shall not prevent the deduction of any annuity or other annual payment which is payable by a company wholly or partly in satisfaction of any claim under an insurance policy in relation to which the company is the insurer.</p></content></subsection><subsection><num>(2B)</num><content><p>The reference in subsection (2A) above to an annuity payable wholly or partly in satisfaction of a claim under an insurance policy shall be taken, in relation to an insurance company (within the meaning of Chapter I of Part XII), to include a reference to every annuity payable by that company; and the references in sections 338(2) and 434B(2) to an annuity paid wholly or partly as mentioned in subsection (2A) above shall be construed accordingly.</p></content></subsection></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-165-2"><num>(2)</num><content><p>In section 338(2) of that Act, in the words after paragraph (b) (payments which are not charges on income), after “corporation tax” there shall be inserted “nor any annuity or other annual payment which (without being so deductible) is paid wholly or partly as mentioned in section 337(2A)”.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-165-3"><num>(3)</num><content><p><mod>In section 434B of that Act (treatment of interest and annuities in the case of insurance companies), subsection (1) shall cease to have effect; and in subsection (2), for the words from the beginning to “mentioned in subsection (1) above” there shall be substituted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(2)</num><content><p>Nothing in section 337(2A) or 338(2) shall be construed as preventing any annuity or other annual payment which is paid wholly or partly as mentioned in section 337(2A)</p></content></subsection></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-165-4"><num>(4)</num><content><p>Subject to subsection (5) below, this section has effect in relation to accounting periods beginning on or after 1st January 1996.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-165-5"><num>(5)</num><content><p>In relation to any accounting period beginning on or after 1st January 1996 but ending before 1st April 1996, this section shall have effect as if any reference in provisions inserted by this section to an annuity payable or paid by an insurance company included a reference to any such interest as was mentioned in section 434B(1) of the Taxes Act 1988 before its repeal by virtue of this section.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-166"><num>166</num><heading>Equalisation reserves</heading><content><p>Schedule 32 to this Act (which makes provision about the tax treatment of equalisation reserves maintained by insurance companies) shall have effect.</p></content></section>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-167"><num>167</num><heading>Industrial assurance business</heading><subsection eId="section-167-1"><num>(1)</num><content><p>In section 432 of the Taxes Act 1988, subsection (2) (industrial assurance business treated as separate business for the purposes of Chapter I of Part XII) shall cease to have effect.</p></content></subsection><subsection eId="section-167-2"><num>(2)</num><content><p><mod>In section 432A(2) of the Taxes Act 1988, for paragraphs (d) and (e) (different categories of basic life assurance and general annuity business, including and not including industrial assurance business), there shall be substituted the following paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(d)</num><content><p>basic life assurance and general annuity business; and</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-167-3"><num>(3)</num><intro><p>In section 86 of the <noteRef href="#m00109" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1989 (spreading of relief for acquisition expenses)—</p></intro><level class="para1" eId="section-167-3-a"><num>(a)</num><content><p>in subsection (1)(a), for “in respect of industrial life assurance business carried on by the company” there shall be substituted “for persons who collect premiums from house to house”; and</p></content></level><level class="para1" eId="section-167-3-b"><num>(b)</num><content><p>in subsection (2), for “in respect of industrial life assurance business” there shall be substituted “for persons who collect premiums from house to house”.</p></content></level></subsection><subsection eId="section-167-4"><num>(4)</num><content><p>In section 832 of the Taxes Act 1988 (interpretation), in the definition of “industrial assurance business” for “has” there shall be substituted “means any such business carried on before the day appointed for the coming into force of section 167(4) of the Finance Act 1996 as was industrial assurance business within”.</p></content></subsection><subsection eId="section-167-5"><num>(5)</num><content><p>In Schedule 14 to the Taxes Act 1988 (ancillary provisions about relief in respect of life assurance premiums), in paragraph 8, at the beginning of sub-paragraph (4) (policy which is varied so as to increase benefits, etc. to be treated as issued after 13th March 1984) there shall be inserted “Subject to sub-paragraph (8) below,”.</p></content></subsection><subsection eId="section-167-6"><num>(6)</num><content><p><mod>After sub-paragraph (7) of that paragraph there shall be inserted the following sub-paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(8)</num><intro><p>Sub-paragraph (4) above does not apply in the case of a variation so as to increase the benefits secured, if the variation is made—</p></intro><level class="para1"><num>(a)</num><content><p>on or after such day as the Board may by order appoint, and</p></content></level><level class="para1"><num>(b)</num><content><p>in consideration of a change in the method of payment of premiums from collection by a person collecting premiums from house to house to payment by a different method.</p></content></level></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-167-7"><num>(7)</num><intro><p>In Schedule 15 to the Taxes Act 1988 (qualifying policies)—</p></intro><level class="para1" eId="section-167-7-a"><num>(a)</num><content><p>in paragraph 1(6) (calculation of amount included in premiums of whole life and term insurances in respect of their payment otherwise than annually), for “and if the policy is issued in the course of an industrial assurance business,” there shall be substituted “and if the policy provides for payment otherwise than annually without providing for the amount of the premiums if they are paid annually,”; and</p></content></level><level class="para1" eId="section-167-7-b"><num>(b)</num><content><p>in paragraph 2(2) (the equivalent calculation for endowment assurances), for “issued in the course of an industrial assurance business” there shall be substituted “that provides for the payment of premiums otherwise than annually without providing for the amount of the premiums if they are paid annually,”.</p></content></level></subsection><subsection eId="section-167-8"><num>(8)</num><content><p><mod>After paragraph 8 of that Schedule there shall be inserted the following paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><paragraph class="schProv1"><num>8A</num><subparagraph><num>(1)</num><intro><p>Paragraphs 7 and 8 above shall have effect in relation to any policy issued on or after the appointed day as if the references to the issue of a policy in the course of an industrial assurance business were references to the issue of a policy by any company in a case in which—</p></intro><level class="para1"><num>(a)</num><content><p>the company, before that day and in the course of such a business, issued any policy which was a qualifying policy by virtue of either of those paragraphs; and</p></content></level><level class="para1"><num>(b)</num><content><p>the policies which on 28th November 1995 were being offered by the company as available to be issued included policies of the same description as the policy issued on or after the appointed day.</p></content></level></subparagraph><subparagraph><num>(2)</num><content><p>In this paragraph “the appointed day” means such day as the Board may by order appoint.</p></content></subparagraph></paragraph></quotedStructure></mod></p></content></subsection><subsection eId="section-167-9"><num>(9)</num><content><p><mod>In paragraph 18(3) of that Schedule (certain variations of a policy not to affect whether policy is a qualifying policy), after paragraph (b) there shall be inserted <quotedText startQuote="“">or</quotedText><quotedStructure endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><level class="para1"><num>(c)</num><intro><p>any variation so as to increase the benefits secured or reduce the premiums payable which is effected—</p></intro><level class="para2"><num>(i)</num><content><p>on or after such day as the Board may by order appoint, and</p></content></level><level class="para2"><num>(ii)</num><content><p>in consideration of a change in the method of payment of premiums from collection by a person collecting premiums from house to house to payment by a different method.</p></content></level></level></quotedStructure></mod></p></content></subsection><subsection eId="section-167-10"><num>(10)</num><content><p>Subsections (1) to (3) above have effect in relation to accounting periods beginning on or after 1st January 1996.</p></content></subsection><subsection eId="section-167-11"><num>(11)</num><content><p>Subsection (4) above shall come into force on such day as the Board may by order appoint.</p></content></subsection><subsection eId="section-167-12"><num>(12)</num><content><p>Subsection (7) above shall have effect in relation to policies issued on or after such day as the Board may by order appoint.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-167-1"><num>(1)</num><content><p>In section 432 of the Taxes Act 1988, subsection (2) (industrial assurance business treated as separate business for the purposes of Chapter I of Part XII) shall cease to have effect.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-167-2"><num>(2)</num><content><p><mod>In section 432A(2) of the Taxes Act 1988, for paragraphs (d) and (e) (different categories of basic life assurance and general annuity business, including and not including industrial assurance business), there shall be substituted the following paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(d)</num><content><p>basic life assurance and general annuity business; and</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-167-3"><num>(3)</num><intro><p>In section 86 of the <noteRef href="#m00109" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1989 (spreading of relief for acquisition expenses)—</p></intro><level class="para1" eId="section-167-3-a"><num>(a)</num><content><p>in subsection (1)(a), for “in respect of industrial life assurance business carried on by the company” there shall be substituted “for persons who collect premiums from house to house”; and</p></content></level><level class="para1" eId="section-167-3-b"><num>(b)</num><content><p>in subsection (2), for “in respect of industrial life assurance business” there shall be substituted “for persons who collect premiums from house to house”.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-167-3-a"><num>(a)</num><content><p>in subsection (1)(a), for “in respect of industrial life assurance business carried on by the company” there shall be substituted “for persons who collect premiums from house to house”; and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-167-3-b"><num>(b)</num><content><p>in subsection (2), for “in respect of industrial life assurance business” there shall be substituted “for persons who collect premiums from house to house”.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-167-4"><num>(4)</num><content><p>In section 832 of the Taxes Act 1988 (interpretation), in the definition of “industrial assurance business” for “has” there shall be substituted “means any such business carried on before the day appointed for the coming into force of section 167(4) of the Finance Act 1996 as was industrial assurance business within”.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-167-5"><num>(5)</num><content><p>In Schedule 14 to the Taxes Act 1988 (ancillary provisions about relief in respect of life assurance premiums), in paragraph 8, at the beginning of sub-paragraph (4) (policy which is varied so as to increase benefits, etc. to be treated as issued after 13th March 1984) there shall be inserted “Subject to sub-paragraph (8) below,”.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-167-6"><num>(6)</num><content><p><mod>After sub-paragraph (7) of that paragraph there shall be inserted the following sub-paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(8)</num><intro><p>Sub-paragraph (4) above does not apply in the case of a variation so as to increase the benefits secured, if the variation is made—</p></intro><level class="para1"><num>(a)</num><content><p>on or after such day as the Board may by order appoint, and</p></content></level><level class="para1"><num>(b)</num><content><p>in consideration of a change in the method of payment of premiums from collection by a person collecting premiums from house to house to payment by a different method.</p></content></level></subsection></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-167-7"><num>(7)</num><intro><p>In Schedule 15 to the Taxes Act 1988 (qualifying policies)—</p></intro><level class="para1" eId="section-167-7-a"><num>(a)</num><content><p>in paragraph 1(6) (calculation of amount included in premiums of whole life and term insurances in respect of their payment otherwise than annually), for “and if the policy is issued in the course of an industrial assurance business,” there shall be substituted “and if the policy provides for payment otherwise than annually without providing for the amount of the premiums if they are paid annually,”; and</p></content></level><level class="para1" eId="section-167-7-b"><num>(b)</num><content><p>in paragraph 2(2) (the equivalent calculation for endowment assurances), for “issued in the course of an industrial assurance business” there shall be substituted “that provides for the payment of premiums otherwise than annually without providing for the amount of the premiums if they are paid annually,”.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-167-7-a"><num>(a)</num><content><p>in paragraph 1(6) (calculation of amount included in premiums of whole life and term insurances in respect of their payment otherwise than annually), for “and if the policy is issued in the course of an industrial assurance business,” there shall be substituted “and if the policy provides for payment otherwise than annually without providing for the amount of the premiums if they are paid annually,”; and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-167-7-b"><num>(b)</num><content><p>in paragraph 2(2) (the equivalent calculation for endowment assurances), for “issued in the course of an industrial assurance business” there shall be substituted “that provides for the payment of premiums otherwise than annually without providing for the amount of the premiums if they are paid annually,”.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-167-8"><num>(8)</num><content><p><mod>After paragraph 8 of that Schedule there shall be inserted the following paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><paragraph class="schProv1"><num>8A</num><subparagraph><num>(1)</num><intro><p>Paragraphs 7 and 8 above shall have effect in relation to any policy issued on or after the appointed day as if the references to the issue of a policy in the course of an industrial assurance business were references to the issue of a policy by any company in a case in which—</p></intro><level class="para1"><num>(a)</num><content><p>the company, before that day and in the course of such a business, issued any policy which was a qualifying policy by virtue of either of those paragraphs; and</p></content></level><level class="para1"><num>(b)</num><content><p>the policies which on 28th November 1995 were being offered by the company as available to be issued included policies of the same description as the policy issued on or after the appointed day.</p></content></level></subparagraph><subparagraph><num>(2)</num><content><p>In this paragraph “the appointed day” means such day as the Board may by order appoint.</p></content></subparagraph></paragraph></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-167-9"><num>(9)</num><content><p><mod>In paragraph 18(3) of that Schedule (certain variations of a policy not to affect whether policy is a qualifying policy), after paragraph (b) there shall be inserted <quotedText startQuote="“">or</quotedText><quotedStructure endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><level class="para1"><num>(c)</num><intro><p>any variation so as to increase the benefits secured or reduce the premiums payable which is effected—</p></intro><level class="para2"><num>(i)</num><content><p>on or after such day as the Board may by order appoint, and</p></content></level><level class="para2"><num>(ii)</num><content><p>in consideration of a change in the method of payment of premiums from collection by a person collecting premiums from house to house to payment by a different method.</p></content></level></level></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-167-10"><num>(10)</num><content><p>Subsections (1) to (3) above have effect in relation to accounting periods beginning on or after 1st January 1996.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-167-11"><num>(11)</num><content><p>Subsection (4) above shall come into force on such day as the Board may by order appoint.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-167-12"><num>(12)</num><content><p>Subsection (7) above shall have effect in relation to policies issued on or after such day as the Board may by order appoint.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-168"><num>168</num><heading>Capital redemption business</heading><subsection eId="section-168-1"><num>(1)</num><content><p><mod>For subsection (3) of section 458 of the Taxes Act 1988 (meaning of capital redemption business) there shall be substituted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(3)</num><intro><p>In this section “capital redemption business” means any business in so far as it—</p></intro><level class="para1"><num>(a)</num><content><p>is insurance business for the purposes of the <noteRef href="#m00110" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Insurance Companies Act 1982, but not life assurance business; and</p></content></level><level class="para1"><num>(b)</num><content><p>consists in effecting on the basis of actuarial calculations, and carrying out, contracts under which, in return for one or more fixed payments, a sum or series of sums of a specified amount become payable at a future time or over a period.</p></content></level></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-168-2"><num>(2)</num><content><p>Schedule 33 to this Act (which makes provision for the application of the I minus E basis of charging tax to companies carrying on capital redemption business) shall have effect.</p></content></subsection><subsection eId="section-168-3"><num>(3)</num><content><p><mod>In Chapter I of Part XII of the Taxes Act 1988, after section 458 (capital redemption business) there shall be inserted the following section—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>458A</num><heading>Capital redemption business: power to apply life assurance provisions</heading><subsection><num>(1)</num><content><p>The Treasury may by regulations provide for the life assurance provisions of the Corporation Tax Acts to have effect in relation to companies carrying on capital redemption business as if capital redemption business were, or were a category of, life assurance business.</p></content></subsection><subsection><num>(2)</num><content><p>Regulations under this section may provide that the provisions applied by the regulations are to have effect as respects capital redemption business with such modifications and exceptions as may be provided for in the regulations.</p></content></subsection><subsection><num>(3)</num><intro><p>Regulations under this section may—</p></intro><level class="para1"><num>(a)</num><content><p>make different provision for different cases;</p></content></level><level class="para1"><num>(b)</num><content><p>include such incidental, supplemental, consequential and transitional provision (including provision modifying provisions of the Corporation Tax Acts other than the life assurance provisions) as the Treasury consider appropriate; and</p></content></level><level class="para1"><num>(c)</num><content><p>include retrospective provision.</p></content></level></subsection><subsection><num>(4)</num><intro><p>In this section references to the life assurance provisions of the Corporation Tax Acts are references to the following—</p></intro><level class="para1"><num>(a)</num><content><p>the provisions of this Chapter so far as they relate to life assurance business or companies carrying on such business; and</p></content></level><level class="para1"><num>(b)</num><content><p>any other provisions of the Corporation Tax Acts making separate provision by reference to whether or not the business of a company is or includes life assurance business or any category of insurance business that includes life assurance business.</p></content></level></subsection><subsection><num>(5)</num><content><p>In this section “capital redemption business” has the same meaning as in section 458.</p></content></subsection></section></quotedStructure></mod></p></content></subsection><subsection eId="section-168-4"><num>(4)</num><content><p>In section 539(3) of that Act, in the definition of “capital redemption policy” for “insurance” there shall be substituted “contract”.</p></content></subsection><subsection eId="section-168-5"><num>(5)</num><content><p>In section 553(10) of that Act, in paragraph (a) of the definition of “new offshore capital redemption policy”, for “an insurance” there shall be substituted “a contract”.</p></content></subsection><subsection eId="section-168-6"><num>(6)</num><content><p>Subsection (1) above shall have effect as respects accounting periods ending on or after the day appointed under section 199 of the <noteRef href="#m00111" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1994 for the purposes of Chapter III of Part IV of that Act (self-assessment management provisions), and subsections (4) and (5) above shall have effect as respects contracts effected on or after that day.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-168-1"><num>(1)</num><content><p><mod>For subsection (3) of section 458 of the Taxes Act 1988 (meaning of capital redemption business) there shall be substituted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(3)</num><intro><p>In this section “capital redemption business” means any business in so far as it—</p></intro><level class="para1"><num>(a)</num><content><p>is insurance business for the purposes of the <noteRef href="#m00110" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Insurance Companies Act 1982, but not life assurance business; and</p></content></level><level class="para1"><num>(b)</num><content><p>consists in effecting on the basis of actuarial calculations, and carrying out, contracts under which, in return for one or more fixed payments, a sum or series of sums of a specified amount become payable at a future time or over a period.</p></content></level></subsection></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-168-2"><num>(2)</num><content><p>Schedule 33 to this Act (which makes provision for the application of the I minus E basis of charging tax to companies carrying on capital redemption business) shall have effect.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-168-3"><num>(3)</num><content><p><mod>In Chapter I of Part XII of the Taxes Act 1988, after section 458 (capital redemption business) there shall be inserted the following section—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>458A</num><heading>Capital redemption business: power to apply life assurance provisions</heading><subsection><num>(1)</num><content><p>The Treasury may by regulations provide for the life assurance provisions of the Corporation Tax Acts to have effect in relation to companies carrying on capital redemption business as if capital redemption business were, or were a category of, life assurance business.</p></content></subsection><subsection><num>(2)</num><content><p>Regulations under this section may provide that the provisions applied by the regulations are to have effect as respects capital redemption business with such modifications and exceptions as may be provided for in the regulations.</p></content></subsection><subsection><num>(3)</num><intro><p>Regulations under this section may—</p></intro><level class="para1"><num>(a)</num><content><p>make different provision for different cases;</p></content></level><level class="para1"><num>(b)</num><content><p>include such incidental, supplemental, consequential and transitional provision (including provision modifying provisions of the Corporation Tax Acts other than the life assurance provisions) as the Treasury consider appropriate; and</p></content></level><level class="para1"><num>(c)</num><content><p>include retrospective provision.</p></content></level></subsection><subsection><num>(4)</num><intro><p>In this section references to the life assurance provisions of the Corporation Tax Acts are references to the following—</p></intro><level class="para1"><num>(a)</num><content><p>the provisions of this Chapter so far as they relate to life assurance business or companies carrying on such business; and</p></content></level><level class="para1"><num>(b)</num><content><p>any other provisions of the Corporation Tax Acts making separate provision by reference to whether or not the business of a company is or includes life assurance business or any category of insurance business that includes life assurance business.</p></content></level></subsection><subsection><num>(5)</num><content><p>In this section “capital redemption business” has the same meaning as in section 458.</p></content></subsection></section></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-168-4"><num>(4)</num><content><p>In section 539(3) of that Act, in the definition of “capital redemption policy” for “insurance” there shall be substituted “contract”.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-168-5"><num>(5)</num><content><p>In section 553(10) of that Act, in paragraph (a) of the definition of “new offshore capital redemption policy”, for “an insurance” there shall be substituted “a contract”.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-168-6"><num>(6)</num><content><p>Subsection (1) above shall have effect as respects accounting periods ending on or after the day appointed under section 199 of the <noteRef href="#m00111" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1994 for the purposes of Chapter III of Part IV of that Act (self-assessment management provisions), and subsections (4) and (5) above shall have effect as respects contracts effected on or after that day.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-169"><num>169</num><heading>Provisional repayments in connection with pension business</heading><subsection eId="section-169-1"><num>(1)</num><content><p>Schedule 19AB to the Taxes Act 1988 (pension business: payments on account of tax credits and deducted tax) shall be amended in accordance with the provisions of Part I of Schedule 34 to this Act.</p></content></subsection><subsection eId="section-169-2"><num>(2)</num><content><p>Schedule 19AC to the Taxes Act 1988 (modification of that Act in relation to overseas life insurance companies) shall be amended in accordance with the provisions of Part II of Schedule 34 to this Act.</p></content></subsection><subsection eId="section-169-3"><num>(3)</num><content><p>The amendments made by Schedule 34 to this Act shall have effect in relation to provisional repayment periods, within the meaning of Schedule 19AB to the <noteRef href="#m00112" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxes Act 1988, falling in accounting periods ending on or after the day appointed under section 199 of the Finance Act 1994 for the purposes of Chapter III of Part IV of that Act (self-assessment management provisions).</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-169-1"><num>(1)</num><content><p>Schedule 19AB to the Taxes Act 1988 (pension business: payments on account of tax credits and deducted tax) shall be amended in accordance with the provisions of Part I of Schedule 34 to this Act.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-169-2"><num>(2)</num><content><p>Schedule 19AC to the Taxes Act 1988 (modification of that Act in relation to overseas life insurance companies) shall be amended in accordance with the provisions of Part II of Schedule 34 to this Act.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-169-3"><num>(3)</num><content><p>The amendments made by Schedule 34 to this Act shall have effect in relation to provisional repayment periods, within the meaning of Schedule 19AB to the <noteRef href="#m00112" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxes Act 1988, falling in accounting periods ending on or after the day appointed under section 199 of the Finance Act 1994 for the purposes of Chapter III of Part IV of that Act (self-assessment management provisions).</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-170"><num>170</num><heading>Time for amending and enquiring into returns</heading><subsection eId="section-170-1"><num>(1)</num><content><p><mod>After section 11AB of the <noteRef href="#m00113" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxes Management Act 1970 there shall be inserted the following sections—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>11AC</num><heading>Modifications of sections 11AA and 11AB in relation to non-annual accounting of general insurance business</heading><subsection><num>(1)</num><content><p>This section applies in any case where a company carrying on insurance business in any period delivers a return for that period under section 11 of this Act which is based wholly or partly on accounts which the company is required or permitted to draw up using the method described in paragraph 52 of Schedule 9A to the <noteRef href="#m00114" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Companies Act 1985 (accounting for general insurance business on a non-annual basis).</p></content></subsection><subsection><num>(2)</num><content><p><mod>Where this section applies, section 11AA(2) of this Act shall have effect as if after paragraph (b) there were added <quotedText startQuote="“">and</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>c1</num><intro><p>where a company has delivered a return which is based wholly or partly on accounts drawn up as mentioned in section 11AC(1) of this Act, then, at any time before the end of the period of twelve months beginning with the date on which any particular technical provision constituted in the case of those accounts as described in paragraph 52 of Schedule 9A to the <noteRef href="#m00115" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Companies Act 1985 is replaced as described in sub-paragraph (4) of that paragraph, the company may by notice to an officer of the Board so amend its self-assessment as to give effect to any amendments to the return—</p></intro><level class="para2"><num>(i)</num><content><p>which arise from the replacement of that technical provision, and</p></content></level><level class="para2"><num>(ii)</num><content><p>which the company has notified to such an officer.</p></content></level></level></quotedStructure></mod></p></content></subsection><subsection><num>(3)</num><intro><p>Where this section applies, section 11AB of this Act shall have effect—</p></intro><level class="para1"><num>(a)</num><content><p>as if in subsection (1)(b) after “subsection (2)(b)” there were inserted “or (c1)”; and</p></content></level><level class="para1"><num>(b)</num><content><p><mod>as if in subsection (2) for the words from “is” to the end of paragraph (b) there were substituted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>a1</num><intro><p>in the case of a return (whenever delivered) which is based wholly or partly on accounts drawn up as mentioned in section 11AC(1) of this Act, is whichever of the following periods ends the later, that is to say—</p></intro><level class="para2"><num>(i)</num><content><p>the period of two years beginning with the date (or, if there is more than one such date, the latest date) on which any technical provision constituted in the case of those accounts as described in paragraph 52 of Schedule 9A to the Companies Act 1985 is replaced as mentioned in sub-paragraph (4) of that paragraph; or</p></content></level><level class="para2"><num>(ii)</num><content><p>the period ending with the quarter day next following the first anniversary of the day on which the return was delivered; and</p></content></level></level><level class="para1"><num>b1</num><intro><p>in the case of an amendment of such a return—</p></intro><level class="para2"><num>(i)</num><content><p>if the amendment is made on or before the filing date, is the period of twelve months beginning with that date; or</p></content></level><level class="para2"><num>(ii)</num><content><p>if the amendment is made after that date, is the period ending with the quarter day next following the first anniversary of the day on which the amendment was made;</p></content></level></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></level></subsection></section><section><num>11AD</num><heading>Modifications of sections 11AA and 11AB for insurance companies with non-annual actuarial investigations</heading><subsection><num>(1)</num><content><p>This section applies in any case where a return under section 11 of this Act is delivered by an insurance company which is permitted by an order under section 68 of the <noteRef href="#m00116" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Insurance Companies Act 1982 to cause investigations to be made into its financial condition less frequently than is required by section 18 of that Act.</p></content></subsection><subsection><num>(2)</num><content><p><mod>Where this section applies, section 11AA(2) of this Act shall have effect as if, after paragraph (b), there were added <quotedText startQuote="“">and</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>c2</num><intro><p>where a company falling within section 11AD(1) of this Act has delivered a return for any period, then, at any time before the end of the period of twelve months beginning with the date as at which the relevant investigation is carried out, that is to say—</p></intro><level class="para2"><num>(i)</num><content><p>if the return is for a period as at the end of which there is carried out an investigation under section 18 of the <noteRef href="#m00117" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Insurance Companies Act 1982 into the financial condition of the company, that investigation, or</p></content></level><level class="para2"><num>(ii)</num><content><p>if the return is not for such a period, the first such investigation to be made into the financial condition of the company as at the end of a subsequent period,</p></content></level><wrapUp><p>the company may by notice to an officer of the Board so amend its self-assessment as to give effect to any amendments to its return which arise from that investigation and which the company has notified to such an officer.</p></wrapUp></level></quotedStructure></mod></p></content></subsection><subsection><num>(3)</num><intro><p>Where this section applies, section 11AB of this Act shall have effect—</p></intro><level class="para1"><num>(a)</num><content><p>as if in subsection (1)(b) after “subsection (2)(b)” there were inserted “or (c2)”; and</p></content></level><level class="para1"><num>(b)</num><content><p><mod>as if in subsection (2) for the words from “is” to the end of paragraph (b) there were substituted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>a2</num><content><p>in the case of a return delivered at any time by a company falling within section 11AD(1) of this Act, is the period of two years beginning with the date as at which the relevant investigation, as defined in section 11AA(2)(c2) of this Act, is carried out; and</p></content></level><level class="para1"><num>b2</num><intro><p>in the case of an amendment of such a return—</p></intro><level class="para2"><num>(i)</num><content><p>if the amendment is made on or before the filing date, is the period of twelve months beginning with that date; or</p></content></level><level class="para2"><num>(ii)</num><content><p>if the amendment is made after that date, is the period ending with the quarter day next following the first anniversary of the day on which the amendment was made;</p></content></level></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></level></subsection></section><section><num>11AE</num><heading>Modifications of sections 11AA and 11AB for friendly societies with non-annual actuarial investigations</heading><subsection><num>(1)</num><content><p>This section applies in any case where a return under section 11 of this Act is delivered by a friendly society which is required by section 47 of the <noteRef href="#m00118" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Friendly Societies Act 1992 to cause an investigation to be made into its financial condition at least once in every period of three years.</p></content></subsection><subsection><num>(2)</num><content><p><mod>Where this section applies, section 11AA(2) of this Act shall have effect as if, after paragraph (b), there were added <quotedText startQuote="“">and</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>c3</num><intro><p>where a friendly society falling within section 11AE(1) of this Act has delivered a return for any period, then, at any time before the end of the period of fifteen months beginning with the date as at which the relevant investigation is carried out, that is to say—</p></intro><level class="para2"><num>(i)</num><content><p>if the return is for a period as at the end of which there is carried out an investigation under section 47 of the <noteRef href="#m00119" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Friendly Societies Act 1992 into the financial condition of the society, that investigation, or</p></content></level><level class="para2"><num>(ii)</num><content><p>if the return is not for such a period, the first such investigation to be made into the financial condition of the society as at the end of a subsequent period,</p></content></level><wrapUp><p>the society may by notice to an officer of the Board so amend its self-assessment as to give effect to any amendments to its return which arise from that investigation and which the society has notified to such an officer.</p></wrapUp></level></quotedStructure></mod></p></content></subsection><subsection><num>(3)</num><intro><p>Where this section applies, section 11AB of this Act shall have effect—</p></intro><level class="para1"><num>(a)</num><content><p>as if in subsection (1)(b) after “subsection (2)(b)” there were inserted “or (c3)”; and</p></content></level><level class="para1"><num>(b)</num><content><p><mod>as if in subsection (2) for the words from “is” to the end of paragraph (b) there were substituted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>a3</num><content><p>in the case of a return delivered at any time by a friendly society falling within section 11AE(1) of this Act, is the period of twenty seven months beginning with the date as at which the relevant investigation, as defined in section 11AA(2)(c3) of this Act, is carried out; and</p></content></level><level class="para1"><num>b3</num><intro><p>in the case of an amendment of such a return—</p></intro><level class="para2"><num>(i)</num><content><p>if the amendment is made on or before the filing date, is the period of twelve months beginning with that date; or</p></content></level><level class="para2"><num>(ii)</num><content><p>if the amendment is made after that date, is the period ending with the quarter day next following the first anniversary of the day on which the amendment was made;</p></content></level></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></level></subsection></section></quotedStructure></mod></p></content></subsection><subsection eId="section-170-2"><num>(2)</num><content><p>The amendment made by subsection (1) above shall have effect as respects accounting periods ending on or after the day appointed under section 199 of the <noteRef href="#m00120" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1994 for the purposes of Chapter III of Part IV of that Act (self-assessment management provisions).</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-170-1"><num>(1)</num><content><p><mod>After section 11AB of the <noteRef href="#m00113" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxes Management Act 1970 there shall be inserted the following sections—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>11AC</num><heading>Modifications of sections 11AA and 11AB in relation to non-annual accounting of general insurance business</heading><subsection><num>(1)</num><content><p>This section applies in any case where a company carrying on insurance business in any period delivers a return for that period under section 11 of this Act which is based wholly or partly on accounts which the company is required or permitted to draw up using the method described in paragraph 52 of Schedule 9A to the <noteRef href="#m00114" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Companies Act 1985 (accounting for general insurance business on a non-annual basis).</p></content></subsection><subsection><num>(2)</num><content><p><mod>Where this section applies, section 11AA(2) of this Act shall have effect as if after paragraph (b) there were added <quotedText startQuote="“">and</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>c1</num><intro><p>where a company has delivered a return which is based wholly or partly on accounts drawn up as mentioned in section 11AC(1) of this Act, then, at any time before the end of the period of twelve months beginning with the date on which any particular technical provision constituted in the case of those accounts as described in paragraph 52 of Schedule 9A to the <noteRef href="#m00115" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Companies Act 1985 is replaced as described in sub-paragraph (4) of that paragraph, the company may by notice to an officer of the Board so amend its self-assessment as to give effect to any amendments to the return—</p></intro><level class="para2"><num>(i)</num><content><p>which arise from the replacement of that technical provision, and</p></content></level><level class="para2"><num>(ii)</num><content><p>which the company has notified to such an officer.</p></content></level></level></quotedStructure></mod></p></content></subsection><subsection><num>(3)</num><intro><p>Where this section applies, section 11AB of this Act shall have effect—</p></intro><level class="para1"><num>(a)</num><content><p>as if in subsection (1)(b) after “subsection (2)(b)” there were inserted “or (c1)”; and</p></content></level><level class="para1"><num>(b)</num><content><p><mod>as if in subsection (2) for the words from “is” to the end of paragraph (b) there were substituted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>a1</num><intro><p>in the case of a return (whenever delivered) which is based wholly or partly on accounts drawn up as mentioned in section 11AC(1) of this Act, is whichever of the following periods ends the later, that is to say—</p></intro><level class="para2"><num>(i)</num><content><p>the period of two years beginning with the date (or, if there is more than one such date, the latest date) on which any technical provision constituted in the case of those accounts as described in paragraph 52 of Schedule 9A to the Companies Act 1985 is replaced as mentioned in sub-paragraph (4) of that paragraph; or</p></content></level><level class="para2"><num>(ii)</num><content><p>the period ending with the quarter day next following the first anniversary of the day on which the return was delivered; and</p></content></level></level><level class="para1"><num>b1</num><intro><p>in the case of an amendment of such a return—</p></intro><level class="para2"><num>(i)</num><content><p>if the amendment is made on or before the filing date, is the period of twelve months beginning with that date; or</p></content></level><level class="para2"><num>(ii)</num><content><p>if the amendment is made after that date, is the period ending with the quarter day next following the first anniversary of the day on which the amendment was made;</p></content></level></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></level></subsection></section><section><num>11AD</num><heading>Modifications of sections 11AA and 11AB for insurance companies with non-annual actuarial investigations</heading><subsection><num>(1)</num><content><p>This section applies in any case where a return under section 11 of this Act is delivered by an insurance company which is permitted by an order under section 68 of the <noteRef href="#m00116" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Insurance Companies Act 1982 to cause investigations to be made into its financial condition less frequently than is required by section 18 of that Act.</p></content></subsection><subsection><num>(2)</num><content><p><mod>Where this section applies, section 11AA(2) of this Act shall have effect as if, after paragraph (b), there were added <quotedText startQuote="“">and</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>c2</num><intro><p>where a company falling within section 11AD(1) of this Act has delivered a return for any period, then, at any time before the end of the period of twelve months beginning with the date as at which the relevant investigation is carried out, that is to say—</p></intro><level class="para2"><num>(i)</num><content><p>if the return is for a period as at the end of which there is carried out an investigation under section 18 of the <noteRef href="#m00117" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Insurance Companies Act 1982 into the financial condition of the company, that investigation, or</p></content></level><level class="para2"><num>(ii)</num><content><p>if the return is not for such a period, the first such investigation to be made into the financial condition of the company as at the end of a subsequent period,</p></content></level><wrapUp><p>the company may by notice to an officer of the Board so amend its self-assessment as to give effect to any amendments to its return which arise from that investigation and which the company has notified to such an officer.</p></wrapUp></level></quotedStructure></mod></p></content></subsection><subsection><num>(3)</num><intro><p>Where this section applies, section 11AB of this Act shall have effect—</p></intro><level class="para1"><num>(a)</num><content><p>as if in subsection (1)(b) after “subsection (2)(b)” there were inserted “or (c2)”; and</p></content></level><level class="para1"><num>(b)</num><content><p><mod>as if in subsection (2) for the words from “is” to the end of paragraph (b) there were substituted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>a2</num><content><p>in the case of a return delivered at any time by a company falling within section 11AD(1) of this Act, is the period of two years beginning with the date as at which the relevant investigation, as defined in section 11AA(2)(c2) of this Act, is carried out; and</p></content></level><level class="para1"><num>b2</num><intro><p>in the case of an amendment of such a return—</p></intro><level class="para2"><num>(i)</num><content><p>if the amendment is made on or before the filing date, is the period of twelve months beginning with that date; or</p></content></level><level class="para2"><num>(ii)</num><content><p>if the amendment is made after that date, is the period ending with the quarter day next following the first anniversary of the day on which the amendment was made;</p></content></level></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></level></subsection></section><section><num>11AE</num><heading>Modifications of sections 11AA and 11AB for friendly societies with non-annual actuarial investigations</heading><subsection><num>(1)</num><content><p>This section applies in any case where a return under section 11 of this Act is delivered by a friendly society which is required by section 47 of the <noteRef href="#m00118" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Friendly Societies Act 1992 to cause an investigation to be made into its financial condition at least once in every period of three years.</p></content></subsection><subsection><num>(2)</num><content><p><mod>Where this section applies, section 11AA(2) of this Act shall have effect as if, after paragraph (b), there were added <quotedText startQuote="“">and</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>c3</num><intro><p>where a friendly society falling within section 11AE(1) of this Act has delivered a return for any period, then, at any time before the end of the period of fifteen months beginning with the date as at which the relevant investigation is carried out, that is to say—</p></intro><level class="para2"><num>(i)</num><content><p>if the return is for a period as at the end of which there is carried out an investigation under section 47 of the <noteRef href="#m00119" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Friendly Societies Act 1992 into the financial condition of the society, that investigation, or</p></content></level><level class="para2"><num>(ii)</num><content><p>if the return is not for such a period, the first such investigation to be made into the financial condition of the society as at the end of a subsequent period,</p></content></level><wrapUp><p>the society may by notice to an officer of the Board so amend its self-assessment as to give effect to any amendments to its return which arise from that investigation and which the society has notified to such an officer.</p></wrapUp></level></quotedStructure></mod></p></content></subsection><subsection><num>(3)</num><intro><p>Where this section applies, section 11AB of this Act shall have effect—</p></intro><level class="para1"><num>(a)</num><content><p>as if in subsection (1)(b) after “subsection (2)(b)” there were inserted “or (c3)”; and</p></content></level><level class="para1"><num>(b)</num><content><p><mod>as if in subsection (2) for the words from “is” to the end of paragraph (b) there were substituted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>a3</num><content><p>in the case of a return delivered at any time by a friendly society falling within section 11AE(1) of this Act, is the period of twenty seven months beginning with the date as at which the relevant investigation, as defined in section 11AA(2)(c3) of this Act, is carried out; and</p></content></level><level class="para1"><num>b3</num><intro><p>in the case of an amendment of such a return—</p></intro><level class="para2"><num>(i)</num><content><p>if the amendment is made on or before the filing date, is the period of twelve months beginning with that date; or</p></content></level><level class="para2"><num>(ii)</num><content><p>if the amendment is made after that date, is the period ending with the quarter day next following the first anniversary of the day on which the amendment was made;</p></content></level></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></level></subsection></section></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-170-2"><num>(2)</num><content><p>The amendment made by subsection (1) above shall have effect as respects accounting periods ending on or after the day appointed under section 199 of the <noteRef href="#m00120" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1994 for the purposes of Chapter III of Part IV of that Act (self-assessment management provisions).</p></content></subsection>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="part-IV-chapter-VI-crossheading-friendly-societies"><heading>Friendly societies</heading><section eId="section-171"><num>171</num><heading>Life or endowment business</heading><subsection eId="section-171-1"><num>(1)</num><content><p><mod>In section 466 of the Taxes Act 1988 (interpretation of Chapter II of Part XII) for subsection (1) (meaning of “life or endowment business”) there shall be substituted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1)</num><intro><p>In this Chapter “life or endowment business” means, subject to subsections (1A) and (1B) below,—</p></intro><level class="para1"><num>(a)</num><content><p>any business within Class I, II or III of Head A of Schedule 2 to the <noteRef href="#m00121" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Friendly Societies Act 1992;</p></content></level><level class="para1"><num>(b)</num><content><p>pension business;</p></content></level><level class="para1"><num>(c)</num><content><p>any other life assurance business;</p></content></level><level class="para1"><num>(d)</num><intro><p>any business within Class IV of Head A of that Schedule, if—</p></intro><level class="para2"><num>(i)</num><content><p>the contract is one made before 1st September 1996; or</p></content></level><level class="para2"><num>(ii)</num><content><p>the contract is one made on or after 1st September 1996 and the effecting and carrying out of the contract also constitutes business within Class I, II or III of Head A of that Schedule.</p></content></level></level></subsection><subsection><num>(1A)</num><intro><p>Life or endowment business does not include the issue, in respect of a contract made before 1st September 1996, of a policy affording provision for sickness or other infirmity (whether bodily or mental), unless—</p></intro><level class="para1"><num>(a)</num><content><p>the policy also affords assurance for a gross sum independent of sickness or other infirmity;</p></content></level><level class="para1"><num>(b)</num><content><p>not less than 60 per cent. of the amount of the premiums is attributable to the provision afforded during sickness or other infirmity; and</p></content></level><level class="para1"><num>(c)</num><content><p>there is no bonus or addition which may be declared or accrue upon the assurance of the gross sum.</p></content></level></subsection><subsection><num>(1B)</num><content><p>Life or endowment business does not include the assurance of any annuity the consideration for which consists of sums obtainable on the maturity, or on the surrender, of any other policy of assurance issued by the friendly society, being a policy of assurance forming part of the tax exempt life or endowment business of the friendly society.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-171-2"><num>(2)</num><content><p><mod>In subsection (2) of that section (other definitions) there shall be inserted at the appropriate places—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(a)</num><content><p>“insurance company” shall be construed in accordance with section 431;</p></content></level></quotedStructure><inline name="appendText">; and</inline></mod></p><p><mod><quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(b)</num><content><p>“long term business” shall be construed in accordance with section 431;</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-171-3"><num>(3)</num><content><p><mod>In section 266 of that Act (life assurance premium relief) in subsection (6) (deduction from total income where relief given for part of certain payments to friendly societies) after paragraph (b) there shall be inserted <quotedText startQuote="“">and</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(c)</num><content><p>the insurance or contract is not excluded by subsection (6A) below,</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-171-4"><num>(4)</num><content><p><mod>After that subsection there shall be inserted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(6A)</num><intro><p>For the purposes of subsection (6)(c) above, an insurance or contract is excluded by this subsection if it is made on or after 1st September 1996 and affords provision for sickness or other infirmity (whether bodily or mental), unless—</p></intro><level class="para1"><num>(a)</num><content><p>it also affords assurance for a gross sum independent of sickness or other infirmity;</p></content></level><level class="para1"><num>(b)</num><content><p>not less than 60 per cent. of the amount of the premiums is attributable to the provision afforded during sickness or other infirmity; and</p></content></level><level class="para1"><num>(c)</num><content><p>there is no bonus or addition which may be declared or accrue upon the assurance of the gross sum.</p></content></level></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-171-5"><num>(5)</num><content><p>In section 463(1) of that Act (Corporation Tax Acts to apply to friendly societies' life or endowment business as they apply to insurance companies' mutual life assurance business) after “mutual life assurance business” there shall be inserted “(or other long term business)”.</p></content></subsection><subsection eId="section-171-6"><num>(6)</num><content><p>The amendment made by subsection (5) above shall have effect in relation to accounting periods ending on or after 1st September 1996.</p></content></subsection></section></hcontainer>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-171"><num>171</num><heading>Life or endowment business</heading><subsection eId="section-171-1"><num>(1)</num><content><p><mod>In section 466 of the Taxes Act 1988 (interpretation of Chapter II of Part XII) for subsection (1) (meaning of “life or endowment business”) there shall be substituted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1)</num><intro><p>In this Chapter “life or endowment business” means, subject to subsections (1A) and (1B) below,—</p></intro><level class="para1"><num>(a)</num><content><p>any business within Class I, II or III of Head A of Schedule 2 to the <noteRef href="#m00121" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Friendly Societies Act 1992;</p></content></level><level class="para1"><num>(b)</num><content><p>pension business;</p></content></level><level class="para1"><num>(c)</num><content><p>any other life assurance business;</p></content></level><level class="para1"><num>(d)</num><intro><p>any business within Class IV of Head A of that Schedule, if—</p></intro><level class="para2"><num>(i)</num><content><p>the contract is one made before 1st September 1996; or</p></content></level><level class="para2"><num>(ii)</num><content><p>the contract is one made on or after 1st September 1996 and the effecting and carrying out of the contract also constitutes business within Class I, II or III of Head A of that Schedule.</p></content></level></level></subsection><subsection><num>(1A)</num><intro><p>Life or endowment business does not include the issue, in respect of a contract made before 1st September 1996, of a policy affording provision for sickness or other infirmity (whether bodily or mental), unless—</p></intro><level class="para1"><num>(a)</num><content><p>the policy also affords assurance for a gross sum independent of sickness or other infirmity;</p></content></level><level class="para1"><num>(b)</num><content><p>not less than 60 per cent. of the amount of the premiums is attributable to the provision afforded during sickness or other infirmity; and</p></content></level><level class="para1"><num>(c)</num><content><p>there is no bonus or addition which may be declared or accrue upon the assurance of the gross sum.</p></content></level></subsection><subsection><num>(1B)</num><content><p>Life or endowment business does not include the assurance of any annuity the consideration for which consists of sums obtainable on the maturity, or on the surrender, of any other policy of assurance issued by the friendly society, being a policy of assurance forming part of the tax exempt life or endowment business of the friendly society.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-171-2"><num>(2)</num><content><p><mod>In subsection (2) of that section (other definitions) there shall be inserted at the appropriate places—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(a)</num><content><p>“insurance company” shall be construed in accordance with section 431;</p></content></level></quotedStructure><inline name="appendText">; and</inline></mod></p><p><mod><quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(b)</num><content><p>“long term business” shall be construed in accordance with section 431;</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-171-3"><num>(3)</num><content><p><mod>In section 266 of that Act (life assurance premium relief) in subsection (6) (deduction from total income where relief given for part of certain payments to friendly societies) after paragraph (b) there shall be inserted <quotedText startQuote="“">and</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(c)</num><content><p>the insurance or contract is not excluded by subsection (6A) below,</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-171-4"><num>(4)</num><content><p><mod>After that subsection there shall be inserted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(6A)</num><intro><p>For the purposes of subsection (6)(c) above, an insurance or contract is excluded by this subsection if it is made on or after 1st September 1996 and affords provision for sickness or other infirmity (whether bodily or mental), unless—</p></intro><level class="para1"><num>(a)</num><content><p>it also affords assurance for a gross sum independent of sickness or other infirmity;</p></content></level><level class="para1"><num>(b)</num><content><p>not less than 60 per cent. of the amount of the premiums is attributable to the provision afforded during sickness or other infirmity; and</p></content></level><level class="para1"><num>(c)</num><content><p>there is no bonus or addition which may be declared or accrue upon the assurance of the gross sum.</p></content></level></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-171-5"><num>(5)</num><content><p>In section 463(1) of that Act (Corporation Tax Acts to apply to friendly societies' life or endowment business as they apply to insurance companies' mutual life assurance business) after “mutual life assurance business” there shall be inserted “(or other long term business)”.</p></content></subsection><subsection eId="section-171-6"><num>(6)</num><content><p>The amendment made by subsection (5) above shall have effect in relation to accounting periods ending on or after 1st September 1996.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-171-1"><num>(1)</num><content><p><mod>In section 466 of the Taxes Act 1988 (interpretation of Chapter II of Part XII) for subsection (1) (meaning of “life or endowment business”) there shall be substituted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1)</num><intro><p>In this Chapter “life or endowment business” means, subject to subsections (1A) and (1B) below,—</p></intro><level class="para1"><num>(a)</num><content><p>any business within Class I, II or III of Head A of Schedule 2 to the <noteRef href="#m00121" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Friendly Societies Act 1992;</p></content></level><level class="para1"><num>(b)</num><content><p>pension business;</p></content></level><level class="para1"><num>(c)</num><content><p>any other life assurance business;</p></content></level><level class="para1"><num>(d)</num><intro><p>any business within Class IV of Head A of that Schedule, if—</p></intro><level class="para2"><num>(i)</num><content><p>the contract is one made before 1st September 1996; or</p></content></level><level class="para2"><num>(ii)</num><content><p>the contract is one made on or after 1st September 1996 and the effecting and carrying out of the contract also constitutes business within Class I, II or III of Head A of that Schedule.</p></content></level></level></subsection><subsection><num>(1A)</num><intro><p>Life or endowment business does not include the issue, in respect of a contract made before 1st September 1996, of a policy affording provision for sickness or other infirmity (whether bodily or mental), unless—</p></intro><level class="para1"><num>(a)</num><content><p>the policy also affords assurance for a gross sum independent of sickness or other infirmity;</p></content></level><level class="para1"><num>(b)</num><content><p>not less than 60 per cent. of the amount of the premiums is attributable to the provision afforded during sickness or other infirmity; and</p></content></level><level class="para1"><num>(c)</num><content><p>there is no bonus or addition which may be declared or accrue upon the assurance of the gross sum.</p></content></level></subsection><subsection><num>(1B)</num><content><p>Life or endowment business does not include the assurance of any annuity the consideration for which consists of sums obtainable on the maturity, or on the surrender, of any other policy of assurance issued by the friendly society, being a policy of assurance forming part of the tax exempt life or endowment business of the friendly society.</p></content></subsection></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-171-2"><num>(2)</num><content><p><mod>In subsection (2) of that section (other definitions) there shall be inserted at the appropriate places—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(a)</num><content><p>“insurance company” shall be construed in accordance with section 431;</p></content></level></quotedStructure><inline name="appendText">; and</inline></mod></p><p><mod><quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(b)</num><content><p>“long term business” shall be construed in accordance with section 431;</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-171-3"><num>(3)</num><content><p><mod>In section 266 of that Act (life assurance premium relief) in subsection (6) (deduction from total income where relief given for part of certain payments to friendly societies) after paragraph (b) there shall be inserted <quotedText startQuote="“">and</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(c)</num><content><p>the insurance or contract is not excluded by subsection (6A) below,</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-171-4"><num>(4)</num><content><p><mod>After that subsection there shall be inserted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(6A)</num><intro><p>For the purposes of subsection (6)(c) above, an insurance or contract is excluded by this subsection if it is made on or after 1st September 1996 and affords provision for sickness or other infirmity (whether bodily or mental), unless—</p></intro><level class="para1"><num>(a)</num><content><p>it also affords assurance for a gross sum independent of sickness or other infirmity;</p></content></level><level class="para1"><num>(b)</num><content><p>not less than 60 per cent. of the amount of the premiums is attributable to the provision afforded during sickness or other infirmity; and</p></content></level><level class="para1"><num>(c)</num><content><p>there is no bonus or addition which may be declared or accrue upon the assurance of the gross sum.</p></content></level></subsection></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-171-5"><num>(5)</num><content><p>In section 463(1) of that Act (Corporation Tax Acts to apply to friendly societies' life or endowment business as they apply to insurance companies' mutual life assurance business) after “mutual life assurance business” there shall be inserted “(or other long term business)”.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-171-6"><num>(6)</num><content><p>The amendment made by subsection (5) above shall have effect in relation to accounting periods ending on or after 1st September 1996.</p></content></subsection>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="part-IV-chapter-VI-crossheading-personal-pension-schemes"><heading>Personal pension schemes</heading><section eId="section-172"><num>172</num><heading>Return of contributions on or after death of member</heading><subsection eId="section-172-1"><num>(1)</num><content><p>In section 633(1) of the Taxes Act 1988 (Board not to approve a personal pension scheme which makes provision for any benefit other than those specified in paragraphs (a) to (e)) in paragraph (e) (payment on or after the death of a member of a lump sum satisfying the conditions in section 637A) for the words following “a lump sum” there shall be substituted “with respect to which the conditions in section 637A (return of contributions) are satisfied”.</p></content></subsection><subsection eId="section-172-2"><num>(2)</num><content><p><mod>For section 637A of that Act (return of contributions on or after death of member) there shall be substituted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>637A</num><heading>Return of contributions on or after death of member</heading><subsection><num>(1)</num><intro><p>The lump sum payable under the arrangements in question (or, where two or more lump sums are so payable, those lump sums taken together) must represent no more than the return of contributions together with reasonable interest on contributions or bonuses out of profits, after allowing for—</p></intro><level class="para1"><num>(a)</num><content><p>any income withdrawals, and</p></content></level><level class="para1"><num>(b)</num><content><p>any purchases of annuities such as are mentioned in section 636.</p></content></level><wrapUp><p>To the extent that contributions are invested in units under a unit trust scheme, the lump sum (or lump sums) may represent the sale or redemption price of the units.</p></wrapUp></subsection><subsection><num>(2)</num><intro><p>A lump sum must be payable only if, in the case of the arrangements in question,—</p></intro><level class="para1"><num>(a)</num><content><p>no such annuity as is mentioned in section 634 has been purchased by the member;</p></content></level><level class="para1"><num>(b)</num><content><p>no such annuity as is mentioned in section 636 has been purchased in respect of the relevant interest; and</p></content></level><level class="para1"><num>(c)</num><content><p>no election in accordance with subsection (5)(a) of section 636 has been made in respect of the relevant interest.</p></content></level></subsection><subsection><num>(3)</num><intro><p>Where the member’s death occurs after the date which is his pension date in relation to the arrangements in question, a lump sum must not be payable more than two years after the death unless, in the case of that lump sum, the person entitled to such an annuity as is mentioned in section 636 in respect of the relevant interest—</p></intro><level class="para1"><num>(a)</num><content><p>has elected in accordance with section 636A to defer the purchase of an annuity; and</p></content></level><level class="para1"><num>(b)</num><content><p>has died during the period of deferral.</p></content></level></subsection><subsection><num>(4)</num><content><p>In this section “the relevant interest” means the interest, under the arrangements in question, of the person to whom or at whose direction the payment in question is made, except where there are two or more such interests, in which case it means that one of them in respect of which the payment is made.</p></content></subsection><subsection><num>(5)</num><content><p>Where, under the arrangements in question, there is a succession of interests, any reference in subsection (2) or (3) above to the relevant interest includes a reference to any interest (other than that of the member) in relation to which the relevant interest is a successive interest.</p></content></subsection></section></quotedStructure></mod></p></content></subsection><subsection eId="section-172-3"><num>(3)</num><intro><p>This section—</p></intro><level class="para1" eId="section-172-3-a"><num>(a)</num><content><p>has effect in relation to approvals, of schemes or amendments, given under Chapter IV of Part XIV of the Taxes Act 1988 (personal pension schemes) after the passing of this Act; and</p></content></level><level class="para1" eId="section-172-3-b"><num>(b)</num><content><p>does not affect any approval previously given.</p></content></level></subsection></section></hcontainer>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-172"><num>172</num><heading>Return of contributions on or after death of member</heading><subsection eId="section-172-1"><num>(1)</num><content><p>In section 633(1) of the Taxes Act 1988 (Board not to approve a personal pension scheme which makes provision for any benefit other than those specified in paragraphs (a) to (e)) in paragraph (e) (payment on or after the death of a member of a lump sum satisfying the conditions in section 637A) for the words following “a lump sum” there shall be substituted “with respect to which the conditions in section 637A (return of contributions) are satisfied”.</p></content></subsection><subsection eId="section-172-2"><num>(2)</num><content><p><mod>For section 637A of that Act (return of contributions on or after death of member) there shall be substituted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>637A</num><heading>Return of contributions on or after death of member</heading><subsection><num>(1)</num><intro><p>The lump sum payable under the arrangements in question (or, where two or more lump sums are so payable, those lump sums taken together) must represent no more than the return of contributions together with reasonable interest on contributions or bonuses out of profits, after allowing for—</p></intro><level class="para1"><num>(a)</num><content><p>any income withdrawals, and</p></content></level><level class="para1"><num>(b)</num><content><p>any purchases of annuities such as are mentioned in section 636.</p></content></level><wrapUp><p>To the extent that contributions are invested in units under a unit trust scheme, the lump sum (or lump sums) may represent the sale or redemption price of the units.</p></wrapUp></subsection><subsection><num>(2)</num><intro><p>A lump sum must be payable only if, in the case of the arrangements in question,—</p></intro><level class="para1"><num>(a)</num><content><p>no such annuity as is mentioned in section 634 has been purchased by the member;</p></content></level><level class="para1"><num>(b)</num><content><p>no such annuity as is mentioned in section 636 has been purchased in respect of the relevant interest; and</p></content></level><level class="para1"><num>(c)</num><content><p>no election in accordance with subsection (5)(a) of section 636 has been made in respect of the relevant interest.</p></content></level></subsection><subsection><num>(3)</num><intro><p>Where the member’s death occurs after the date which is his pension date in relation to the arrangements in question, a lump sum must not be payable more than two years after the death unless, in the case of that lump sum, the person entitled to such an annuity as is mentioned in section 636 in respect of the relevant interest—</p></intro><level class="para1"><num>(a)</num><content><p>has elected in accordance with section 636A to defer the purchase of an annuity; and</p></content></level><level class="para1"><num>(b)</num><content><p>has died during the period of deferral.</p></content></level></subsection><subsection><num>(4)</num><content><p>In this section “the relevant interest” means the interest, under the arrangements in question, of the person to whom or at whose direction the payment in question is made, except where there are two or more such interests, in which case it means that one of them in respect of which the payment is made.</p></content></subsection><subsection><num>(5)</num><content><p>Where, under the arrangements in question, there is a succession of interests, any reference in subsection (2) or (3) above to the relevant interest includes a reference to any interest (other than that of the member) in relation to which the relevant interest is a successive interest.</p></content></subsection></section></quotedStructure></mod></p></content></subsection><subsection eId="section-172-3"><num>(3)</num><intro><p>This section—</p></intro><level class="para1" eId="section-172-3-a"><num>(a)</num><content><p>has effect in relation to approvals, of schemes or amendments, given under Chapter IV of Part XIV of the Taxes Act 1988 (personal pension schemes) after the passing of this Act; and</p></content></level><level class="para1" eId="section-172-3-b"><num>(b)</num><content><p>does not affect any approval previously given.</p></content></level></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-172-1"><num>(1)</num><content><p>In section 633(1) of the Taxes Act 1988 (Board not to approve a personal pension scheme which makes provision for any benefit other than those specified in paragraphs (a) to (e)) in paragraph (e) (payment on or after the death of a member of a lump sum satisfying the conditions in section 637A) for the words following “a lump sum” there shall be substituted “with respect to which the conditions in section 637A (return of contributions) are satisfied”.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-172-2"><num>(2)</num><content><p><mod>For section 637A of that Act (return of contributions on or after death of member) there shall be substituted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>637A</num><heading>Return of contributions on or after death of member</heading><subsection><num>(1)</num><intro><p>The lump sum payable under the arrangements in question (or, where two or more lump sums are so payable, those lump sums taken together) must represent no more than the return of contributions together with reasonable interest on contributions or bonuses out of profits, after allowing for—</p></intro><level class="para1"><num>(a)</num><content><p>any income withdrawals, and</p></content></level><level class="para1"><num>(b)</num><content><p>any purchases of annuities such as are mentioned in section 636.</p></content></level><wrapUp><p>To the extent that contributions are invested in units under a unit trust scheme, the lump sum (or lump sums) may represent the sale or redemption price of the units.</p></wrapUp></subsection><subsection><num>(2)</num><intro><p>A lump sum must be payable only if, in the case of the arrangements in question,—</p></intro><level class="para1"><num>(a)</num><content><p>no such annuity as is mentioned in section 634 has been purchased by the member;</p></content></level><level class="para1"><num>(b)</num><content><p>no such annuity as is mentioned in section 636 has been purchased in respect of the relevant interest; and</p></content></level><level class="para1"><num>(c)</num><content><p>no election in accordance with subsection (5)(a) of section 636 has been made in respect of the relevant interest.</p></content></level></subsection><subsection><num>(3)</num><intro><p>Where the member’s death occurs after the date which is his pension date in relation to the arrangements in question, a lump sum must not be payable more than two years after the death unless, in the case of that lump sum, the person entitled to such an annuity as is mentioned in section 636 in respect of the relevant interest—</p></intro><level class="para1"><num>(a)</num><content><p>has elected in accordance with section 636A to defer the purchase of an annuity; and</p></content></level><level class="para1"><num>(b)</num><content><p>has died during the period of deferral.</p></content></level></subsection><subsection><num>(4)</num><content><p>In this section “the relevant interest” means the interest, under the arrangements in question, of the person to whom or at whose direction the payment in question is made, except where there are two or more such interests, in which case it means that one of them in respect of which the payment is made.</p></content></subsection><subsection><num>(5)</num><content><p>Where, under the arrangements in question, there is a succession of interests, any reference in subsection (2) or (3) above to the relevant interest includes a reference to any interest (other than that of the member) in relation to which the relevant interest is a successive interest.</p></content></subsection></section></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-172-3"><num>(3)</num><intro><p>This section—</p></intro><level class="para1" eId="section-172-3-a"><num>(a)</num><content><p>has effect in relation to approvals, of schemes or amendments, given under Chapter IV of Part XIV of the Taxes Act 1988 (personal pension schemes) after the passing of this Act; and</p></content></level><level class="para1" eId="section-172-3-b"><num>(b)</num><content><p>does not affect any approval previously given.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-172-3-a"><num>(a)</num><content><p>has effect in relation to approvals, of schemes or amendments, given under Chapter IV of Part XIV of the Taxes Act 1988 (personal pension schemes) after the passing of this Act; and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-172-3-b"><num>(b)</num><content><p>does not affect any approval previously given.</p></content></level>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="part-IV-chapter-VI-crossheading-participators-in-close-companies"><heading>Participators in close companies</heading><section eId="section-173"><num>173</num><heading>Loans to participators etc</heading><subsection eId="section-173-1"><num>(1)</num><content><p>Section 419 of the Taxes Act 1988 (loans to participators etc.) shall be amended in accordance with subsections (2) to (4) below.</p></content></subsection><subsection eId="section-173-2"><num>(2)</num><content><p><mod>For subsection (3) (time when tax becomes due) there shall be substituted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(3)</num><content><p>Tax due by virtue of this section in relation to any loan or advance shall be due and payable on the day following the expiry of nine months from the end of the accounting period in which the loan or advance was made.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-173-3"><num>(3)</num><content><p><mod>After subsection (4) (relief in respect of repayment) there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(4A)</num><content><p>Where the repayment of the whole or any part of a loan or advance occurs on or after the day on which tax by virtue of this section becomes due in relation to that loan or advance, relief in respect of the repayment shall not be given under subsection (4) above at any time before the expiry of nine months from the end of the accounting period in which the repayment occurred.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-173-4"><num>(4)</num><content><p>In subsection (6) (application to loans and advances to certain companies who are participators etc.), the words “and to a company not resident in the United Kingdom” shall be omitted.</p></content></subsection><subsection eId="section-173-5"><num>(5)</num><content><p><mod>In section 826(4) of that Act (interest on repayment of tax by virtue of section 419), for paragraph (a) there shall be substituted the following paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(a)</num><intro><p>the date when the entitlement to relief in respect of the repayment accrued, that is to say—</p></intro><level class="para2"><num>(i)</num><content><p>where the repayment of the loan or advance (or part thereof) occurred on or after the day mentioned in section 419(4A), the date nine months after the end of that accounting period; and</p></content></level><level class="para2"><num>(ii)</num><content><p>in any other case, the date nine months after the end of the accounting period in which the loan or advance was made;</p></content></level><wrapUp><p>or</p></wrapUp></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-173-6"><num>(6)</num><content><p>This section has effect in relation to any loan or advance made in an accounting period ending on or after 31st March 1996.</p></content></subsection></section><section eId="section-174"><num>174</num><heading>Attribution of gains to participators in non-resident companies</heading><subsection eId="section-174-1"><num>(1)</num><content><p>Section 13 of the <noteRef href="#m00122" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxation of Chargeable Gains Act 1992 (attribution of gains to members of non-resident companies) shall be amended in accordance with subsections (2) to (9) below.</p></content></subsection><subsection eId="section-174-2"><num>(2)</num><content><p>In subsection (2) (persons subject to charge on gain to company), for “holds shares” there shall be substituted “is a participator”.</p></content></subsection><subsection eId="section-174-3"><num>(3)</num><content><p><mod>For subsections (3) and (4) (part of gain attributed to person subject to charge) there shall be substituted the following subsections—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(3)</num><content><p>That part shall be equal to the proportion of the gain that corresponds to the extent of the participator’s interest as a participator in the company.</p></content></subsection><subsection><num>(4)</num><content><p>Subsection (2) above shall not apply in the case of any participator in the company to which the gain accrues where the aggregate amount falling under that subsection to be apportioned to him and to persons connected with him does not exceed one twentieth of the gain.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-174-4"><num>(4)</num><content><p><mod>In subsection (5), paragraph (a) (section not to apply where gain distributed within two years) shall be omitted; and after that subsection there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(5A)</num><intro><p>Where—</p></intro><level class="para1"><num>(a)</num><content><p>any amount of capital gains tax is paid by a person in pursuance of subsection (2) above, and</p></content></level><level class="para1"><num>(b)</num><content><p>an amount in respect of the chargeable gain is distributed (either by way of dividend or distribution of capital or on the dissolution of the company) within 2 years from the time when the chargeable gain accrued to the company,</p></content></level><wrapUp><p>that amount of tax (so far as neither reimbursed by the company nor applied as a deduction under subsection (7) below) shall be applied for reducing or extinguishing any liability of that person to income tax in respect of the distribution or (in the case of a distribution falling to be treated as a disposal on which a chargeable gain accrues to that person) to any capital gains tax in respect of the distribution.</p></wrapUp></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-174-5"><num>(5)</num><intro><p>In subsection (7) (deduction of tax paid in computing gain on shares in the company)—</p></intro><level class="para1" eId="section-174-5-a"><num>(a)</num><content><p>for “not reimbursed by the company)” there shall be inserted “neither reimbursed by the company nor applied under subsection (5A) above for reducing any liability to tax)”; and</p></content></level><level class="para1" eId="section-174-5-b"><num>(b)</num><content><p>for “the shares by reference to which the tax was paid” there shall be substituted “any asset representing his interest as a participator in the company.”</p></content></level></subsection><subsection eId="section-174-6"><num>(6)</num><content><p><mod>After subsection (7) there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(7A)</num><intro><p>In ascertaining for the purposes of subsection (5A) or (7) above the amount of capital gains tax or income tax chargeable on any person for any year on or in respect of any chargeable gain or distribution—</p></intro><level class="para1"><num>(a)</num><content><p>any such distribution as is mentioned in subsection (5A)(b) above and falls to be treated as income of that person for that year shall be regarded as forming the highest part of the income on which he is chargeable to tax for the year;</p></content></level><level class="para1"><num>(b)</num><content><p>any gain accruing in that year on the disposal by that person of any asset representing his interest as a participator in the company shall be regarded as forming the highest part of the gains on which he is chargeable to tax for that year;</p></content></level><level class="para1"><num>(c)</num><content><p>where any such distribution as is mentioned in subsection (5A)(b) above falls to be treated as a disposal on which a gain accrues on which that person is so chargeable, that gain shall be regarded as forming the next highest part of the gains on which he is so chargeable, after any gains falling within paragraph (b) above; and</p></content></level><level class="para1"><num>(d)</num><content><p>any gain treated as accruing to that person in that year by virtue of subsection (2) above shall be regarded as the next highest part of the gains on which he is so chargeable, after any gains falling within paragraph (c) above.</p></content></level></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-174-7"><num>(7)</num><intro><p>In subsection (9) (cases where person charged is a company)—</p></intro><level class="para1" eId="section-174-7-a"><num>(a)</num><content><p>for “the person owning any of the shares in the company” there shall be substituted “a person who is a participator in the company”; and</p></content></level><level class="para1" eId="section-174-7-b"><num>(b)</num><content><p>for the words from “to the shares” onwards there shall be substituted “to the participating company’s interest as a participator in the company to which the gain accrues shall be further apportioned among the participators in the participating company according to the extent of their respective interests as participators, and subsection (2) above shall apply to them accordingly in relation to the amounts further apportioned, and so on through any number of companies.”</p></content></level></subsection><subsection eId="section-174-8"><num>(8)</num><content><p>In subsection (10) (application to trustees), for “owning shares in the company” there shall be substituted “who are participators in the company, or in any company amongst the participators in which the gain is apportioned under subsection (9) above,”.</p></content></subsection><subsection eId="section-174-9"><num>(9)</num><content><p><mod>After subsection (11) there shall be inserted the following subsections—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(12)</num><content><p>In this section “participator”, in relation to a company, has the meaning given by section 417(1) of the Taxes Act for the purposes of Part XI of that Act (close companies).</p></content></subsection><subsection><num>(13)</num><intro><p>In this section—</p></intro><level class="para1"><num>(a)</num><content><p>references to a person’s interest as a participator in a company are references to the interest in the company which is represented by all the factors by reference to which he falls to be treated as such a participator; and</p></content></level><level class="para1"><num>(b)</num><content><p>references to the extent of such an interest are references to the proportion of the interests as participators of all the participators in the company (including any who are not resident or ordinarily resident in the United Kingdom) which on a just and reasonable apportionment is represented by that interest.</p></content></level></subsection><subsection><num>(14)</num><intro><p>For the purposes of this section, where—</p></intro><level class="para1"><num>(a)</num><content><p>the interest of any person in a company is wholly or partly represented by an interest which he has under any settlement (“his beneficial interest”), and</p></content></level><level class="para1"><num>(b)</num><content><p>his beneficial interest is the factor, or one of the factors, by reference to which that person would be treated (apart from this subsection) as having an interest as a participator in that company,</p></content></level><wrapUp><p>the interest as a participator in that company which would be that person’s shall be deemed, to the extent that it is represented by his beneficial interest, to be an interest of the trustees of the settlement (and not of that person), and references in this section, in relation to a company, to a participator shall be construed accordingly.</p></wrapUp></subsection><subsection><num>(15)</num><content><p>Any appeal under section 31 of the Management Act involving any question as to the extent for the purposes of this section of a person’s interest as a participator in a company shall be to the Special Commissioners.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-174-10"><num>(10)</num><intro><p>In paragraph 1(3) of Schedule 5 to the <noteRef href="#m00123" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxation of Chargeable Gains Act 1992 (application of section 86 to section 13 gains)—</p></intro><level class="para1" eId="section-174-10-a"><num>(a)</num><content><p>in paragraph (a), for “hold shares in a company which originate” there shall be substituted “are participators in a company in respect of property which originates”;</p></content></level><level class="para1" eId="section-174-10-b"><num>(b)</num><content><p>in paragraph (b), for “the shares” there shall be substituted “so much of their interest as participators as arises from that property”; and</p></content></level><level class="para1" eId="section-174-10-c"><num>(c)</num><content><p><mod>at the end there shall be added—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><p>Subsections (12) and (13) of section 13 shall apply for the purposes of this sub-paragraph as they apply for the purposes of that section.</p></quotedStructure></mod></p></content></level></subsection><subsection eId="section-174-11"><num>(11)</num><content><p>This section applies to gains accruing on or after 28th November 1995.</p></content></subsection></section></hcontainer>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-173"><num>173</num><heading>Loans to participators etc</heading><subsection eId="section-173-1"><num>(1)</num><content><p>Section 419 of the Taxes Act 1988 (loans to participators etc.) shall be amended in accordance with subsections (2) to (4) below.</p></content></subsection><subsection eId="section-173-2"><num>(2)</num><content><p><mod>For subsection (3) (time when tax becomes due) there shall be substituted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(3)</num><content><p>Tax due by virtue of this section in relation to any loan or advance shall be due and payable on the day following the expiry of nine months from the end of the accounting period in which the loan or advance was made.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-173-3"><num>(3)</num><content><p><mod>After subsection (4) (relief in respect of repayment) there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(4A)</num><content><p>Where the repayment of the whole or any part of a loan or advance occurs on or after the day on which tax by virtue of this section becomes due in relation to that loan or advance, relief in respect of the repayment shall not be given under subsection (4) above at any time before the expiry of nine months from the end of the accounting period in which the repayment occurred.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-173-4"><num>(4)</num><content><p>In subsection (6) (application to loans and advances to certain companies who are participators etc.), the words “and to a company not resident in the United Kingdom” shall be omitted.</p></content></subsection><subsection eId="section-173-5"><num>(5)</num><content><p><mod>In section 826(4) of that Act (interest on repayment of tax by virtue of section 419), for paragraph (a) there shall be substituted the following paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(a)</num><intro><p>the date when the entitlement to relief in respect of the repayment accrued, that is to say—</p></intro><level class="para2"><num>(i)</num><content><p>where the repayment of the loan or advance (or part thereof) occurred on or after the day mentioned in section 419(4A), the date nine months after the end of that accounting period; and</p></content></level><level class="para2"><num>(ii)</num><content><p>in any other case, the date nine months after the end of the accounting period in which the loan or advance was made;</p></content></level><wrapUp><p>or</p></wrapUp></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-173-6"><num>(6)</num><content><p>This section has effect in relation to any loan or advance made in an accounting period ending on or after 31st March 1996.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-173-1"><num>(1)</num><content><p>Section 419 of the Taxes Act 1988 (loans to participators etc.) shall be amended in accordance with subsections (2) to (4) below.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-173-2"><num>(2)</num><content><p><mod>For subsection (3) (time when tax becomes due) there shall be substituted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(3)</num><content><p>Tax due by virtue of this section in relation to any loan or advance shall be due and payable on the day following the expiry of nine months from the end of the accounting period in which the loan or advance was made.</p></content></subsection></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-173-3"><num>(3)</num><content><p><mod>After subsection (4) (relief in respect of repayment) there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(4A)</num><content><p>Where the repayment of the whole or any part of a loan or advance occurs on or after the day on which tax by virtue of this section becomes due in relation to that loan or advance, relief in respect of the repayment shall not be given under subsection (4) above at any time before the expiry of nine months from the end of the accounting period in which the repayment occurred.</p></content></subsection></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-173-4"><num>(4)</num><content><p>In subsection (6) (application to loans and advances to certain companies who are participators etc.), the words “and to a company not resident in the United Kingdom” shall be omitted.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-173-5"><num>(5)</num><content><p><mod>In section 826(4) of that Act (interest on repayment of tax by virtue of section 419), for paragraph (a) there shall be substituted the following paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(a)</num><intro><p>the date when the entitlement to relief in respect of the repayment accrued, that is to say—</p></intro><level class="para2"><num>(i)</num><content><p>where the repayment of the loan or advance (or part thereof) occurred on or after the day mentioned in section 419(4A), the date nine months after the end of that accounting period; and</p></content></level><level class="para2"><num>(ii)</num><content><p>in any other case, the date nine months after the end of the accounting period in which the loan or advance was made;</p></content></level><wrapUp><p>or</p></wrapUp></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-173-6"><num>(6)</num><content><p>This section has effect in relation to any loan or advance made in an accounting period ending on or after 31st March 1996.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-174"><num>174</num><heading>Attribution of gains to participators in non-resident companies</heading><subsection eId="section-174-1"><num>(1)</num><content><p>Section 13 of the <noteRef href="#m00122" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxation of Chargeable Gains Act 1992 (attribution of gains to members of non-resident companies) shall be amended in accordance with subsections (2) to (9) below.</p></content></subsection><subsection eId="section-174-2"><num>(2)</num><content><p>In subsection (2) (persons subject to charge on gain to company), for “holds shares” there shall be substituted “is a participator”.</p></content></subsection><subsection eId="section-174-3"><num>(3)</num><content><p><mod>For subsections (3) and (4) (part of gain attributed to person subject to charge) there shall be substituted the following subsections—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(3)</num><content><p>That part shall be equal to the proportion of the gain that corresponds to the extent of the participator’s interest as a participator in the company.</p></content></subsection><subsection><num>(4)</num><content><p>Subsection (2) above shall not apply in the case of any participator in the company to which the gain accrues where the aggregate amount falling under that subsection to be apportioned to him and to persons connected with him does not exceed one twentieth of the gain.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-174-4"><num>(4)</num><content><p><mod>In subsection (5), paragraph (a) (section not to apply where gain distributed within two years) shall be omitted; and after that subsection there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(5A)</num><intro><p>Where—</p></intro><level class="para1"><num>(a)</num><content><p>any amount of capital gains tax is paid by a person in pursuance of subsection (2) above, and</p></content></level><level class="para1"><num>(b)</num><content><p>an amount in respect of the chargeable gain is distributed (either by way of dividend or distribution of capital or on the dissolution of the company) within 2 years from the time when the chargeable gain accrued to the company,</p></content></level><wrapUp><p>that amount of tax (so far as neither reimbursed by the company nor applied as a deduction under subsection (7) below) shall be applied for reducing or extinguishing any liability of that person to income tax in respect of the distribution or (in the case of a distribution falling to be treated as a disposal on which a chargeable gain accrues to that person) to any capital gains tax in respect of the distribution.</p></wrapUp></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-174-5"><num>(5)</num><intro><p>In subsection (7) (deduction of tax paid in computing gain on shares in the company)—</p></intro><level class="para1" eId="section-174-5-a"><num>(a)</num><content><p>for “not reimbursed by the company)” there shall be inserted “neither reimbursed by the company nor applied under subsection (5A) above for reducing any liability to tax)”; and</p></content></level><level class="para1" eId="section-174-5-b"><num>(b)</num><content><p>for “the shares by reference to which the tax was paid” there shall be substituted “any asset representing his interest as a participator in the company.”</p></content></level></subsection><subsection eId="section-174-6"><num>(6)</num><content><p><mod>After subsection (7) there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(7A)</num><intro><p>In ascertaining for the purposes of subsection (5A) or (7) above the amount of capital gains tax or income tax chargeable on any person for any year on or in respect of any chargeable gain or distribution—</p></intro><level class="para1"><num>(a)</num><content><p>any such distribution as is mentioned in subsection (5A)(b) above and falls to be treated as income of that person for that year shall be regarded as forming the highest part of the income on which he is chargeable to tax for the year;</p></content></level><level class="para1"><num>(b)</num><content><p>any gain accruing in that year on the disposal by that person of any asset representing his interest as a participator in the company shall be regarded as forming the highest part of the gains on which he is chargeable to tax for that year;</p></content></level><level class="para1"><num>(c)</num><content><p>where any such distribution as is mentioned in subsection (5A)(b) above falls to be treated as a disposal on which a gain accrues on which that person is so chargeable, that gain shall be regarded as forming the next highest part of the gains on which he is so chargeable, after any gains falling within paragraph (b) above; and</p></content></level><level class="para1"><num>(d)</num><content><p>any gain treated as accruing to that person in that year by virtue of subsection (2) above shall be regarded as the next highest part of the gains on which he is so chargeable, after any gains falling within paragraph (c) above.</p></content></level></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-174-7"><num>(7)</num><intro><p>In subsection (9) (cases where person charged is a company)—</p></intro><level class="para1" eId="section-174-7-a"><num>(a)</num><content><p>for “the person owning any of the shares in the company” there shall be substituted “a person who is a participator in the company”; and</p></content></level><level class="para1" eId="section-174-7-b"><num>(b)</num><content><p>for the words from “to the shares” onwards there shall be substituted “to the participating company’s interest as a participator in the company to which the gain accrues shall be further apportioned among the participators in the participating company according to the extent of their respective interests as participators, and subsection (2) above shall apply to them accordingly in relation to the amounts further apportioned, and so on through any number of companies.”</p></content></level></subsection><subsection eId="section-174-8"><num>(8)</num><content><p>In subsection (10) (application to trustees), for “owning shares in the company” there shall be substituted “who are participators in the company, or in any company amongst the participators in which the gain is apportioned under subsection (9) above,”.</p></content></subsection><subsection eId="section-174-9"><num>(9)</num><content><p><mod>After subsection (11) there shall be inserted the following subsections—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(12)</num><content><p>In this section “participator”, in relation to a company, has the meaning given by section 417(1) of the Taxes Act for the purposes of Part XI of that Act (close companies).</p></content></subsection><subsection><num>(13)</num><intro><p>In this section—</p></intro><level class="para1"><num>(a)</num><content><p>references to a person’s interest as a participator in a company are references to the interest in the company which is represented by all the factors by reference to which he falls to be treated as such a participator; and</p></content></level><level class="para1"><num>(b)</num><content><p>references to the extent of such an interest are references to the proportion of the interests as participators of all the participators in the company (including any who are not resident or ordinarily resident in the United Kingdom) which on a just and reasonable apportionment is represented by that interest.</p></content></level></subsection><subsection><num>(14)</num><intro><p>For the purposes of this section, where—</p></intro><level class="para1"><num>(a)</num><content><p>the interest of any person in a company is wholly or partly represented by an interest which he has under any settlement (“his beneficial interest”), and</p></content></level><level class="para1"><num>(b)</num><content><p>his beneficial interest is the factor, or one of the factors, by reference to which that person would be treated (apart from this subsection) as having an interest as a participator in that company,</p></content></level><wrapUp><p>the interest as a participator in that company which would be that person’s shall be deemed, to the extent that it is represented by his beneficial interest, to be an interest of the trustees of the settlement (and not of that person), and references in this section, in relation to a company, to a participator shall be construed accordingly.</p></wrapUp></subsection><subsection><num>(15)</num><content><p>Any appeal under section 31 of the Management Act involving any question as to the extent for the purposes of this section of a person’s interest as a participator in a company shall be to the Special Commissioners.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-174-10"><num>(10)</num><intro><p>In paragraph 1(3) of Schedule 5 to the <noteRef href="#m00123" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxation of Chargeable Gains Act 1992 (application of section 86 to section 13 gains)—</p></intro><level class="para1" eId="section-174-10-a"><num>(a)</num><content><p>in paragraph (a), for “hold shares in a company which originate” there shall be substituted “are participators in a company in respect of property which originates”;</p></content></level><level class="para1" eId="section-174-10-b"><num>(b)</num><content><p>in paragraph (b), for “the shares” there shall be substituted “so much of their interest as participators as arises from that property”; and</p></content></level><level class="para1" eId="section-174-10-c"><num>(c)</num><content><p><mod>at the end there shall be added—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><p>Subsections (12) and (13) of section 13 shall apply for the purposes of this sub-paragraph as they apply for the purposes of that section.</p></quotedStructure></mod></p></content></level></subsection><subsection eId="section-174-11"><num>(11)</num><content><p>This section applies to gains accruing on or after 28th November 1995.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-174-1"><num>(1)</num><content><p>Section 13 of the <noteRef href="#m00122" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxation of Chargeable Gains Act 1992 (attribution of gains to members of non-resident companies) shall be amended in accordance with subsections (2) to (9) below.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-174-2"><num>(2)</num><content><p>In subsection (2) (persons subject to charge on gain to company), for “holds shares” there shall be substituted “is a participator”.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-174-3"><num>(3)</num><content><p><mod>For subsections (3) and (4) (part of gain attributed to person subject to charge) there shall be substituted the following subsections—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(3)</num><content><p>That part shall be equal to the proportion of the gain that corresponds to the extent of the participator’s interest as a participator in the company.</p></content></subsection><subsection><num>(4)</num><content><p>Subsection (2) above shall not apply in the case of any participator in the company to which the gain accrues where the aggregate amount falling under that subsection to be apportioned to him and to persons connected with him does not exceed one twentieth of the gain.</p></content></subsection></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-174-4"><num>(4)</num><content><p><mod>In subsection (5), paragraph (a) (section not to apply where gain distributed within two years) shall be omitted; and after that subsection there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(5A)</num><intro><p>Where—</p></intro><level class="para1"><num>(a)</num><content><p>any amount of capital gains tax is paid by a person in pursuance of subsection (2) above, and</p></content></level><level class="para1"><num>(b)</num><content><p>an amount in respect of the chargeable gain is distributed (either by way of dividend or distribution of capital or on the dissolution of the company) within 2 years from the time when the chargeable gain accrued to the company,</p></content></level><wrapUp><p>that amount of tax (so far as neither reimbursed by the company nor applied as a deduction under subsection (7) below) shall be applied for reducing or extinguishing any liability of that person to income tax in respect of the distribution or (in the case of a distribution falling to be treated as a disposal on which a chargeable gain accrues to that person) to any capital gains tax in respect of the distribution.</p></wrapUp></subsection></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-174-5"><num>(5)</num><intro><p>In subsection (7) (deduction of tax paid in computing gain on shares in the company)—</p></intro><level class="para1" eId="section-174-5-a"><num>(a)</num><content><p>for “not reimbursed by the company)” there shall be inserted “neither reimbursed by the company nor applied under subsection (5A) above for reducing any liability to tax)”; and</p></content></level><level class="para1" eId="section-174-5-b"><num>(b)</num><content><p>for “the shares by reference to which the tax was paid” there shall be substituted “any asset representing his interest as a participator in the company.”</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-174-5-a"><num>(a)</num><content><p>for “not reimbursed by the company)” there shall be inserted “neither reimbursed by the company nor applied under subsection (5A) above for reducing any liability to tax)”; and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-174-5-b"><num>(b)</num><content><p>for “the shares by reference to which the tax was paid” there shall be substituted “any asset representing his interest as a participator in the company.”</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-174-6"><num>(6)</num><content><p><mod>After subsection (7) there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(7A)</num><intro><p>In ascertaining for the purposes of subsection (5A) or (7) above the amount of capital gains tax or income tax chargeable on any person for any year on or in respect of any chargeable gain or distribution—</p></intro><level class="para1"><num>(a)</num><content><p>any such distribution as is mentioned in subsection (5A)(b) above and falls to be treated as income of that person for that year shall be regarded as forming the highest part of the income on which he is chargeable to tax for the year;</p></content></level><level class="para1"><num>(b)</num><content><p>any gain accruing in that year on the disposal by that person of any asset representing his interest as a participator in the company shall be regarded as forming the highest part of the gains on which he is chargeable to tax for that year;</p></content></level><level class="para1"><num>(c)</num><content><p>where any such distribution as is mentioned in subsection (5A)(b) above falls to be treated as a disposal on which a gain accrues on which that person is so chargeable, that gain shall be regarded as forming the next highest part of the gains on which he is so chargeable, after any gains falling within paragraph (b) above; and</p></content></level><level class="para1"><num>(d)</num><content><p>any gain treated as accruing to that person in that year by virtue of subsection (2) above shall be regarded as the next highest part of the gains on which he is so chargeable, after any gains falling within paragraph (c) above.</p></content></level></subsection></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-174-7"><num>(7)</num><intro><p>In subsection (9) (cases where person charged is a company)—</p></intro><level class="para1" eId="section-174-7-a"><num>(a)</num><content><p>for “the person owning any of the shares in the company” there shall be substituted “a person who is a participator in the company”; and</p></content></level><level class="para1" eId="section-174-7-b"><num>(b)</num><content><p>for the words from “to the shares” onwards there shall be substituted “to the participating company’s interest as a participator in the company to which the gain accrues shall be further apportioned among the participators in the participating company according to the extent of their respective interests as participators, and subsection (2) above shall apply to them accordingly in relation to the amounts further apportioned, and so on through any number of companies.”</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-174-7-a"><num>(a)</num><content><p>for “the person owning any of the shares in the company” there shall be substituted “a person who is a participator in the company”; and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-174-7-b"><num>(b)</num><content><p>for the words from “to the shares” onwards there shall be substituted “to the participating company’s interest as a participator in the company to which the gain accrues shall be further apportioned among the participators in the participating company according to the extent of their respective interests as participators, and subsection (2) above shall apply to them accordingly in relation to the amounts further apportioned, and so on through any number of companies.”</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-174-8"><num>(8)</num><content><p>In subsection (10) (application to trustees), for “owning shares in the company” there shall be substituted “who are participators in the company, or in any company amongst the participators in which the gain is apportioned under subsection (9) above,”.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-174-9"><num>(9)</num><content><p><mod>After subsection (11) there shall be inserted the following subsections—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(12)</num><content><p>In this section “participator”, in relation to a company, has the meaning given by section 417(1) of the Taxes Act for the purposes of Part XI of that Act (close companies).</p></content></subsection><subsection><num>(13)</num><intro><p>In this section—</p></intro><level class="para1"><num>(a)</num><content><p>references to a person’s interest as a participator in a company are references to the interest in the company which is represented by all the factors by reference to which he falls to be treated as such a participator; and</p></content></level><level class="para1"><num>(b)</num><content><p>references to the extent of such an interest are references to the proportion of the interests as participators of all the participators in the company (including any who are not resident or ordinarily resident in the United Kingdom) which on a just and reasonable apportionment is represented by that interest.</p></content></level></subsection><subsection><num>(14)</num><intro><p>For the purposes of this section, where—</p></intro><level class="para1"><num>(a)</num><content><p>the interest of any person in a company is wholly or partly represented by an interest which he has under any settlement (“his beneficial interest”), and</p></content></level><level class="para1"><num>(b)</num><content><p>his beneficial interest is the factor, or one of the factors, by reference to which that person would be treated (apart from this subsection) as having an interest as a participator in that company,</p></content></level><wrapUp><p>the interest as a participator in that company which would be that person’s shall be deemed, to the extent that it is represented by his beneficial interest, to be an interest of the trustees of the settlement (and not of that person), and references in this section, in relation to a company, to a participator shall be construed accordingly.</p></wrapUp></subsection><subsection><num>(15)</num><content><p>Any appeal under section 31 of the Management Act involving any question as to the extent for the purposes of this section of a person’s interest as a participator in a company shall be to the Special Commissioners.</p></content></subsection></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-174-10"><num>(10)</num><intro><p>In paragraph 1(3) of Schedule 5 to the <noteRef href="#m00123" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxation of Chargeable Gains Act 1992 (application of section 86 to section 13 gains)—</p></intro><level class="para1" eId="section-174-10-a"><num>(a)</num><content><p>in paragraph (a), for “hold shares in a company which originate” there shall be substituted “are participators in a company in respect of property which originates”;</p></content></level><level class="para1" eId="section-174-10-b"><num>(b)</num><content><p>in paragraph (b), for “the shares” there shall be substituted “so much of their interest as participators as arises from that property”; and</p></content></level><level class="para1" eId="section-174-10-c"><num>(c)</num><content><p><mod>at the end there shall be added—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><p>Subsections (12) and (13) of section 13 shall apply for the purposes of this sub-paragraph as they apply for the purposes of that section.</p></quotedStructure></mod></p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-174-10-a"><num>(a)</num><content><p>in paragraph (a), for “hold shares in a company which originate” there shall be substituted “are participators in a company in respect of property which originates”;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-174-10-b"><num>(b)</num><content><p>in paragraph (b), for “the shares” there shall be substituted “so much of their interest as participators as arises from that property”; and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-174-10-c"><num>(c)</num><content><p><mod>at the end there shall be added—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><p>Subsections (12) and (13) of section 13 shall apply for the purposes of this sub-paragraph as they apply for the purposes of that section.</p></quotedStructure></mod></p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-174-11"><num>(11)</num><content><p>This section applies to gains accruing on or after 28th November 1995.</p></content></subsection>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="part-IV-chapter-VI-crossheading-cancellation-of-tax-advantages"><heading>Cancellation of tax advantages</heading><section eId="section-175"><num>175</num><heading>Transactions in certain securities</heading><subsection eId="section-175-1"><num>(1)</num><content><p>In section 704 of the Taxes Act 1988 (which relates to the cancellation of tax advantages and specifies the circumstances mentioned in section 703(1)) in paragraph D(2)(b) (companies which do not satisfy the conditions there specified with respect to their shares or stocks) for “are authorised to be dealt in on the Stock Exchange, and are so dealt in (regularly or from time to time)” there shall be substituted “are listed in the Official List of the Stock Exchange, and are dealt in on the Stock Exchange regularly or from time to time”.</p></content></subsection><subsection eId="section-175-2"><num>(2)</num><content><p>The reference in paragraph D(2)(b) of section 704 of the Taxes Act 1988 to being listed in the Official List of the Stock Exchange and being dealt in on the Stock Exchange regularly or from time to time shall be taken to include a reference to being dealt in on the Unlisted Securities Market regularly or from time to time, but this subsection is subject to subsection (3) below.</p></content></subsection><subsection eId="section-175-3"><num>(3)</num><intro><p>Subsection (2) above—</p></intro><level class="para1" eId="section-175-3-a"><num>(a)</num><content><p>so far as relating to sub-paragraph (2) of paragraph D of section 704 of the Taxes Act 1988 as it applies for the purposes of sub-paragraph (1) of that paragraph or paragraph E of that section, shall not have effect where the relevant transaction takes place after the date on which the Unlisted Securities Market closes;</p></content></level><level class="para1" eId="section-175-3-b"><num>(b)</num><intro><p>so far as relating to paragraph D of that section as it applies for the purposes of section 210(3) or 211(2) of that Act (which relate to bonus issues following, and other matters to be treated or not treated as, repayment of share capital) shall not have effect—</p></intro><level class="para2" eId="section-175-3-b-i"><num>(i)</num><content><p>in the case of section 210(3), in relation to share capital issued after that date; or</p></content></level><level class="para2" eId="section-175-3-b-ii"><num>(ii)</num><content><p>in the case of section 211(2), in relation to distributions made after that date.</p></content></level></level></subsection><subsection eId="section-175-4"><num>(4)</num><intro><p>Except as provided by subsection (3) above, this section—</p></intro><level class="para1" eId="section-175-4-a"><num>(a)</num><content><p>so far as relating to sub-paragraph (2) of paragraph D of section 704 of the Taxes Act 1988 as it applies for the purposes of sub-paragraph (1) of that paragraph or paragraph E of that section, shall have effect where the relevant transaction takes place after the passing of this Act; and</p></content></level><level class="para1" eId="section-175-4-b"><num>(b)</num><intro><p>so far as relating to paragraph D of that section as it applies for the purposes of section 210(3) or 211(2) of that Act, shall have effect—</p></intro><level class="para2" eId="section-175-4-b-i"><num>(i)</num><content><p>in the case of section 210(3), in relation to share capital issued after the passing of this Act; or</p></content></level><level class="para2" eId="section-175-4-b-ii"><num>(ii)</num><content><p>in the case of section 211(2), in relation to distributions made after the passing of this Act.</p></content></level></level></subsection><subsection eId="section-175-5"><num>(5)</num><intro><p>In this section “the relevant transaction” means—</p></intro><level class="para1" eId="section-175-5-a"><num>(a)</num><content><p>the transaction in securities mentioned in paragraph (b) of section 703(1) of the Taxes Act 1988, or</p></content></level><level class="para1" eId="section-175-5-b"><num>(b)</num><content><p>the first of the two or more such transactions mentioned in that paragraph,</p></content></level><wrapUp><p>as the case may be.</p></wrapUp></subsection></section></hcontainer>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-175"><num>175</num><heading>Transactions in certain securities</heading><subsection eId="section-175-1"><num>(1)</num><content><p>In section 704 of the Taxes Act 1988 (which relates to the cancellation of tax advantages and specifies the circumstances mentioned in section 703(1)) in paragraph D(2)(b) (companies which do not satisfy the conditions there specified with respect to their shares or stocks) for “are authorised to be dealt in on the Stock Exchange, and are so dealt in (regularly or from time to time)” there shall be substituted “are listed in the Official List of the Stock Exchange, and are dealt in on the Stock Exchange regularly or from time to time”.</p></content></subsection><subsection eId="section-175-2"><num>(2)</num><content><p>The reference in paragraph D(2)(b) of section 704 of the Taxes Act 1988 to being listed in the Official List of the Stock Exchange and being dealt in on the Stock Exchange regularly or from time to time shall be taken to include a reference to being dealt in on the Unlisted Securities Market regularly or from time to time, but this subsection is subject to subsection (3) below.</p></content></subsection><subsection eId="section-175-3"><num>(3)</num><intro><p>Subsection (2) above—</p></intro><level class="para1" eId="section-175-3-a"><num>(a)</num><content><p>so far as relating to sub-paragraph (2) of paragraph D of section 704 of the Taxes Act 1988 as it applies for the purposes of sub-paragraph (1) of that paragraph or paragraph E of that section, shall not have effect where the relevant transaction takes place after the date on which the Unlisted Securities Market closes;</p></content></level><level class="para1" eId="section-175-3-b"><num>(b)</num><intro><p>so far as relating to paragraph D of that section as it applies for the purposes of section 210(3) or 211(2) of that Act (which relate to bonus issues following, and other matters to be treated or not treated as, repayment of share capital) shall not have effect—</p></intro><level class="para2" eId="section-175-3-b-i"><num>(i)</num><content><p>in the case of section 210(3), in relation to share capital issued after that date; or</p></content></level><level class="para2" eId="section-175-3-b-ii"><num>(ii)</num><content><p>in the case of section 211(2), in relation to distributions made after that date.</p></content></level></level></subsection><subsection eId="section-175-4"><num>(4)</num><intro><p>Except as provided by subsection (3) above, this section—</p></intro><level class="para1" eId="section-175-4-a"><num>(a)</num><content><p>so far as relating to sub-paragraph (2) of paragraph D of section 704 of the Taxes Act 1988 as it applies for the purposes of sub-paragraph (1) of that paragraph or paragraph E of that section, shall have effect where the relevant transaction takes place after the passing of this Act; and</p></content></level><level class="para1" eId="section-175-4-b"><num>(b)</num><intro><p>so far as relating to paragraph D of that section as it applies for the purposes of section 210(3) or 211(2) of that Act, shall have effect—</p></intro><level class="para2" eId="section-175-4-b-i"><num>(i)</num><content><p>in the case of section 210(3), in relation to share capital issued after the passing of this Act; or</p></content></level><level class="para2" eId="section-175-4-b-ii"><num>(ii)</num><content><p>in the case of section 211(2), in relation to distributions made after the passing of this Act.</p></content></level></level></subsection><subsection eId="section-175-5"><num>(5)</num><intro><p>In this section “the relevant transaction” means—</p></intro><level class="para1" eId="section-175-5-a"><num>(a)</num><content><p>the transaction in securities mentioned in paragraph (b) of section 703(1) of the Taxes Act 1988, or</p></content></level><level class="para1" eId="section-175-5-b"><num>(b)</num><content><p>the first of the two or more such transactions mentioned in that paragraph,</p></content></level><wrapUp><p>as the case may be.</p></wrapUp></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-175-1"><num>(1)</num><content><p>In section 704 of the Taxes Act 1988 (which relates to the cancellation of tax advantages and specifies the circumstances mentioned in section 703(1)) in paragraph D(2)(b) (companies which do not satisfy the conditions there specified with respect to their shares or stocks) for “are authorised to be dealt in on the Stock Exchange, and are so dealt in (regularly or from time to time)” there shall be substituted “are listed in the Official List of the Stock Exchange, and are dealt in on the Stock Exchange regularly or from time to time”.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-175-2"><num>(2)</num><content><p>The reference in paragraph D(2)(b) of section 704 of the Taxes Act 1988 to being listed in the Official List of the Stock Exchange and being dealt in on the Stock Exchange regularly or from time to time shall be taken to include a reference to being dealt in on the Unlisted Securities Market regularly or from time to time, but this subsection is subject to subsection (3) below.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-175-3"><num>(3)</num><intro><p>Subsection (2) above—</p></intro><level class="para1" eId="section-175-3-a"><num>(a)</num><content><p>so far as relating to sub-paragraph (2) of paragraph D of section 704 of the Taxes Act 1988 as it applies for the purposes of sub-paragraph (1) of that paragraph or paragraph E of that section, shall not have effect where the relevant transaction takes place after the date on which the Unlisted Securities Market closes;</p></content></level><level class="para1" eId="section-175-3-b"><num>(b)</num><intro><p>so far as relating to paragraph D of that section as it applies for the purposes of section 210(3) or 211(2) of that Act (which relate to bonus issues following, and other matters to be treated or not treated as, repayment of share capital) shall not have effect—</p></intro><level class="para2" eId="section-175-3-b-i"><num>(i)</num><content><p>in the case of section 210(3), in relation to share capital issued after that date; or</p></content></level><level class="para2" eId="section-175-3-b-ii"><num>(ii)</num><content><p>in the case of section 211(2), in relation to distributions made after that date.</p></content></level></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-175-3-a"><num>(a)</num><content><p>so far as relating to sub-paragraph (2) of paragraph D of section 704 of the Taxes Act 1988 as it applies for the purposes of sub-paragraph (1) of that paragraph or paragraph E of that section, shall not have effect where the relevant transaction takes place after the date on which the Unlisted Securities Market closes;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-175-3-b"><num>(b)</num><intro><p>so far as relating to paragraph D of that section as it applies for the purposes of section 210(3) or 211(2) of that Act (which relate to bonus issues following, and other matters to be treated or not treated as, repayment of share capital) shall not have effect—</p></intro><level class="para2" eId="section-175-3-b-i"><num>(i)</num><content><p>in the case of section 210(3), in relation to share capital issued after that date; or</p></content></level><level class="para2" eId="section-175-3-b-ii"><num>(ii)</num><content><p>in the case of section 211(2), in relation to distributions made after that date.</p></content></level></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-175-3-b-i"><num>(i)</num><content><p>in the case of section 210(3), in relation to share capital issued after that date; or</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-175-3-b-ii"><num>(ii)</num><content><p>in the case of section 211(2), in relation to distributions made after that date.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-175-4"><num>(4)</num><intro><p>Except as provided by subsection (3) above, this section—</p></intro><level class="para1" eId="section-175-4-a"><num>(a)</num><content><p>so far as relating to sub-paragraph (2) of paragraph D of section 704 of the Taxes Act 1988 as it applies for the purposes of sub-paragraph (1) of that paragraph or paragraph E of that section, shall have effect where the relevant transaction takes place after the passing of this Act; and</p></content></level><level class="para1" eId="section-175-4-b"><num>(b)</num><intro><p>so far as relating to paragraph D of that section as it applies for the purposes of section 210(3) or 211(2) of that Act, shall have effect—</p></intro><level class="para2" eId="section-175-4-b-i"><num>(i)</num><content><p>in the case of section 210(3), in relation to share capital issued after the passing of this Act; or</p></content></level><level class="para2" eId="section-175-4-b-ii"><num>(ii)</num><content><p>in the case of section 211(2), in relation to distributions made after the passing of this Act.</p></content></level></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-175-4-a"><num>(a)</num><content><p>so far as relating to sub-paragraph (2) of paragraph D of section 704 of the Taxes Act 1988 as it applies for the purposes of sub-paragraph (1) of that paragraph or paragraph E of that section, shall have effect where the relevant transaction takes place after the passing of this Act; and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-175-4-b"><num>(b)</num><intro><p>so far as relating to paragraph D of that section as it applies for the purposes of section 210(3) or 211(2) of that Act, shall have effect—</p></intro><level class="para2" eId="section-175-4-b-i"><num>(i)</num><content><p>in the case of section 210(3), in relation to share capital issued after the passing of this Act; or</p></content></level><level class="para2" eId="section-175-4-b-ii"><num>(ii)</num><content><p>in the case of section 211(2), in relation to distributions made after the passing of this Act.</p></content></level></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-175-4-b-i"><num>(i)</num><content><p>in the case of section 210(3), in relation to share capital issued after the passing of this Act; or</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-175-4-b-ii"><num>(ii)</num><content><p>in the case of section 211(2), in relation to distributions made after the passing of this Act.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-175-5"><num>(5)</num><intro><p>In this section “the relevant transaction” means—</p></intro><level class="para1" eId="section-175-5-a"><num>(a)</num><content><p>the transaction in securities mentioned in paragraph (b) of section 703(1) of the Taxes Act 1988, or</p></content></level><level class="para1" eId="section-175-5-b"><num>(b)</num><content><p>the first of the two or more such transactions mentioned in that paragraph,</p></content></level><wrapUp><p>as the case may be.</p></wrapUp></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-175-5-a"><num>(a)</num><content><p>the transaction in securities mentioned in paragraph (b) of section 703(1) of the Taxes Act 1988, or</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-175-5-b"><num>(b)</num><content><p>the first of the two or more such transactions mentioned in that paragraph,</p></content></level>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="part-IV-chapter-VI-crossheading-chargeable-gains-reliefs"><heading>Chargeable gains: reliefs</heading><section eId="section-176"><num>176</num><heading>Retirement relief: age limits</heading><subsection eId="section-176-1"><num>(1)</num><content><p>In each of sections 163 and 164 of, and paragraph 5 of Schedule 6 to, the <noteRef href="#m00124" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxation of Chargeable Gains Act 1992 (retirement relief), for “the age of 55”, wherever occurring, there shall be substituted “the age of 50”.</p></content></subsection><subsection eId="section-176-2"><num>(2)</num><content><p>The amendments made by this section shall apply in relation to disposals on or after 28th November 1995.</p></content></subsection></section><section eId="section-177"><num>177</num><heading>Reinvestment relief on disposal of qualifying corporate bond</heading><content><p><mod>Section 164A of the Taxation of Chargeable Gains Act 1992 (re-investment relief) shall have effect, and be deemed always to have had effect, as if the following subsections were inserted after subsection (2)—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(2A)</num><intro><p>Where the chargeable gain referred to in subsection (1)(a) above is one which (apart from this section) would be deemed to accrue by virtue of section 116(10)(b)—</p></intro><level class="para1"><num>(a)</num><content><p>any reduction falling to be made by virtue of subsection (2)(a) above shall be treated as one made in the consideration mentioned in section 116(10)(a), instead of in the consideration for the disposal of the asset disposed of; but</p></content></level><level class="para1"><num>(b)</num><intro><p>if the disposal on which that gain is deemed to accrue is a disposal of only part of the new asset, it shall be assumed, for the purpose only of making a reduction affecting the amount of that gain—</p></intro><level class="para2"><num>(i)</num><content><p>that the disposal is a disposal of the whole of a new asset,</p></content></level><level class="para2"><num>(ii)</num><content><p>that the gain accruing on that disposal relates to an old asset consisting in the corresponding part of what was in fact the old asset, and</p></content></level><level class="para2"><num>(iii)</num><content><p>that the corresponding part of the consideration deemed to be given for what was in fact the old asset is taken to be the consideration by reference to which the amount of that gain is computed;</p></content></level><wrapUp><p>and in this subsection “new asset” and “old asset” have the same meanings as in section 116.</p></wrapUp></level></subsection><subsection><num>(2B)</num><intro><p>Where a chargeable gain accrues in accordance with subsection (12) of section 116, this Chapter shall have effect—</p></intro><level class="para1"><num>(a)</num><content><p>as if that gain were a gain accruing on the disposal of an asset; and</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to that deemed disposal, as if references in this Chapter to the consideration for the disposal were references to the sum of money falling, apart from this Chapter, to be used in computing the gain accruing under that subsection.</p></content></level></subsection></quotedStructure></mod></p></content></section></hcontainer>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-176"><num>176</num><heading>Retirement relief: age limits</heading><subsection eId="section-176-1"><num>(1)</num><content><p>In each of sections 163 and 164 of, and paragraph 5 of Schedule 6 to, the <noteRef href="#m00124" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxation of Chargeable Gains Act 1992 (retirement relief), for “the age of 55”, wherever occurring, there shall be substituted “the age of 50”.</p></content></subsection><subsection eId="section-176-2"><num>(2)</num><content><p>The amendments made by this section shall apply in relation to disposals on or after 28th November 1995.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-176-1"><num>(1)</num><content><p>In each of sections 163 and 164 of, and paragraph 5 of Schedule 6 to, the <noteRef href="#m00124" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxation of Chargeable Gains Act 1992 (retirement relief), for “the age of 55”, wherever occurring, there shall be substituted “the age of 50”.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-176-2"><num>(2)</num><content><p>The amendments made by this section shall apply in relation to disposals on or after 28th November 1995.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-177"><num>177</num><heading>Reinvestment relief on disposal of qualifying corporate bond</heading><content><p><mod>Section 164A of the Taxation of Chargeable Gains Act 1992 (re-investment relief) shall have effect, and be deemed always to have had effect, as if the following subsections were inserted after subsection (2)—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(2A)</num><intro><p>Where the chargeable gain referred to in subsection (1)(a) above is one which (apart from this section) would be deemed to accrue by virtue of section 116(10)(b)—</p></intro><level class="para1"><num>(a)</num><content><p>any reduction falling to be made by virtue of subsection (2)(a) above shall be treated as one made in the consideration mentioned in section 116(10)(a), instead of in the consideration for the disposal of the asset disposed of; but</p></content></level><level class="para1"><num>(b)</num><intro><p>if the disposal on which that gain is deemed to accrue is a disposal of only part of the new asset, it shall be assumed, for the purpose only of making a reduction affecting the amount of that gain—</p></intro><level class="para2"><num>(i)</num><content><p>that the disposal is a disposal of the whole of a new asset,</p></content></level><level class="para2"><num>(ii)</num><content><p>that the gain accruing on that disposal relates to an old asset consisting in the corresponding part of what was in fact the old asset, and</p></content></level><level class="para2"><num>(iii)</num><content><p>that the corresponding part of the consideration deemed to be given for what was in fact the old asset is taken to be the consideration by reference to which the amount of that gain is computed;</p></content></level><wrapUp><p>and in this subsection “new asset” and “old asset” have the same meanings as in section 116.</p></wrapUp></level></subsection><subsection><num>(2B)</num><intro><p>Where a chargeable gain accrues in accordance with subsection (12) of section 116, this Chapter shall have effect—</p></intro><level class="para1"><num>(a)</num><content><p>as if that gain were a gain accruing on the disposal of an asset; and</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to that deemed disposal, as if references in this Chapter to the consideration for the disposal were references to the sum of money falling, apart from this Chapter, to be used in computing the gain accruing under that subsection.</p></content></level></subsection></quotedStructure></mod></p></content></section>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="part-IV-chapter-VI-crossheading-special-cases"><heading>Special cases</heading><section eId="section-178"><num>178</num><heading>Sub-contractors in the construction industry</heading><subsection eId="section-178-1"><num>(1)</num><content><p><mod>In section 566 of the Taxes Act 1988 (powers to make regulations in connection with the provisions relating to sub-contractors in the construction industry), after subsection (2) there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(2A)</num><intro><p>The Board may by regulations make provision—</p></intro><level class="para1"><num>(a)</num><content><p>for the issue of documents (to be known as “registration cards”) to persons who are parties, as sub-contractors, to any contract relating to construction operations or who are likely to become such parties;</p></content></level><level class="para1"><num>(b)</num><content><p>for a registration card to contain all such information about the person to whom it is issued as may be required, for the purposes of any regulations under this section, by a person making payments under any such contract;</p></content></level><level class="para1"><num>(c)</num><content><p>for a registration card to take such form and to be valid for such period as may be prescribed by the regulations;</p></content></level><level class="para1"><num>(d)</num><content><p>for the renewal, replacement or cancellation of a registration card;</p></content></level><level class="para1"><num>(e)</num><content><p>for requiring the surrender of a registration card in such circumstances as may be specified in the regulations;</p></content></level><level class="para1"><num>(f)</num><content><p>for requiring the production of a registration card to such persons and in such circumstances as may be so specified;</p></content></level><level class="para1"><num>(g)</num><intro><p>for requiring any person who—</p></intro><level class="para2"><num>(i)</num><content><p>makes or is proposing to make payments to which section 559 applies, and</p></content></level><level class="para2"><num>(ii)</num><content><p>is a person to whom a registration card has to be produced under the regulations,</p></content></level><wrapUp><p>to take steps that ensure that it is produced to him and that he has an opportunity of inspecting it for the purpose of checking that it is a valid registration card issued to the person required to produce it.</p></wrapUp></level></subsection><subsection><num>(2B)</num><content><p>A person who fails to comply with an obligation imposed on him by virtue of subsection (2A)(g) above shall be liable to a penalty not exceeding £3,000.</p></content></subsection><subsection><num>(2C)</num><intro><p>Subject to subsection (2D) below, where—</p></intro><level class="para1"><num>(a)</num><content><p>a person who is a party to a contract relating to any construction operations (“the contractor”) makes or is proposing to make payments to which section 559 applies,</p></content></level><level class="para1"><num>(b)</num><content><p>the contractor is required by regulations under this section to make statements about another party to the contract (“the sub-contractor”) in any return, certificate or other document,</p></content></level><level class="para1"><num>(c)</num><content><p>a registration card containing the information to be stated should have been produced, in accordance with any such regulations, to the contractor, and</p></content></level><level class="para1"><num>(d)</num><content><p>the statements made in the return, certificate or other document, so far as relating to matters the information about which should have been obtainable from the card, are inaccurate or incomplete in any material respect,</p></content></level><wrapUp><p>the contractor shall be liable to a penalty not exceeding £3,000.</p></wrapUp></subsection><subsection><num>(2D)</num><intro><p>A person shall not be liable to a penalty under subsection (2C) above if—</p></intro><level class="para1"><num>(a)</num><content><p>a valid registration card issued to the sub-contractor, or a document which the contractor had reasonable grounds for believing to be such a card, was produced to the contractor and inspected by him before the statements in question were made; and</p></content></level><level class="para1"><num>(b)</num><content><p>the contractor took all such steps as were reasonable, in addition to the inspection of that card, for ensuring that the statements were accurate and complete.</p></content></level></subsection><subsection><num>(2E)</num><content><p>A person liable to a penalty under subsection (2C) above shall not, by reason only of the matters in respect of which he is liable to a penalty under that subsection, be liable to any further penalty under section 98 of the Management Act.</p></content></subsection><subsection><num>(2F)</num><content><p>Regulations under this section may make different provision for different cases.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-178-2"><num>(2)</num><content><p><mod>In the second column of the Table in section 98 of the <noteRef href="#m00125" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxes Management Act 1970 (penalties in respect of certain information provisions), for the entry relating to regulations under section 566(1) and (2) of the Taxes Act 1988 there shall be substituted the following entry—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><p>regulations under section 566(1), (2) or (2A);</p></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection></section><section eId="section-179"><num>179</num><heading>Roll-over relief in respect of ships</heading><content><p>Schedule 35 to this Act (which amends sections 33A to 33F of the <noteRef href="#m00126" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Capital Allowances Act 1990) shall have effect.</p></content></section><section eId="section-180"><num>180</num><heading>Scientific research expenditure: oil licences</heading><subsection eId="section-180-1"><num>(1)</num><content><p><mod>The Capital Allowances Act 1990 shall have effect, and be deemed always to have had effect, with the following sections inserted after section 138 (assets ceasing to belong to traders)—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>138A</num><heading>Disposal of oil licences etc</heading><subsection><num>(1)</num><intro><p>For the purposes of section 138 where—</p></intro><level class="para1"><num>(a)</num><content><p>a person (“the transferor”) disposes of any interest in an oil licence to another (“the transferee”), and</p></content></level><level class="para1"><num>(b)</num><content><p>part of the value of that interest is attributable to any allowable exploration expenditure incurred by the transferor,</p></content></level><wrapUp><p>that disposal shall be deemed (subject to section 138B) to be a disposal by which an asset representing the allowable exploration expenditure to which that part of the value is attributable ceases to belong to the transferor.</p></wrapUp></subsection><subsection><num>(2)</num><content><p>Section 138 shall have effect in relation to the disposal of an interest in an oil licence, to the extent that the disposal is treated by virtue of subsection (1) above as a disposal of an asset representing allowable exploration expenditure, as if the disposal value of the asset were an amount equal to such part of the transferee’s expenditure on acquiring the interest as it is just and reasonable to attribute to the part of the value of that interest that is attributable to the allowable exploration expenditure.</p></content></subsection><subsection><num>(3)</num><content><p>In this section and section 138B references to allowable exploration expenditure are references to any allowable scientific research expenditure of a capital nature incurred on mineral exploration and access.</p></content></subsection><subsection><num>(4)</num><intro><p>In this section and section 138B—</p></intro><hcontainer name="definition"><content><p>“foreign oil concession” means any right to search for or win overseas petroleum, being a right conferred or exercisable (whether or not by virtue of a licence) in relation to a particular area;</p></content></hcontainer><hcontainer name="definition"><intro><p>“interest” in relation to an oil licence, includes, where there is an agreement which—</p></intro><level class="para1"><num>(a)</num><content><p>relates to oil from the whole or any part of the area to which the licence applies, and</p></content></level><level class="para1"><num>(b)</num><content><p>was made before the extraction of the oil to which it relates,</p></content></level><wrapUp><p>any entitlement under that agreement to, or to a share of, either that oil or the proceeds of its sale;</p></wrapUp></hcontainer><hcontainer name="definition"><content><p>“mineral exploration and access” has the same meaning as in Part IV;</p></content></hcontainer><hcontainer name="definition"><intro><p>“oil”—</p></intro><level class="para1"><num>(a)</num><content><p>except in relation to a UK licence, means any petroleum; and</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to such a licence, has the same meaning as in Part I of the <noteRef href="#m00127" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Oil Taxation Act 1975;</p></content></level></hcontainer><hcontainer name="definition"><content><p>“oil licence” means any UK licence or foreign oil concession;</p></content></hcontainer><hcontainer name="definition"><content><p>“overseas petroleum” means any petroleum that exists in its natural condition at a place to which neither the <noteRef href="#m00128" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Petroleum (Production) Act 1934 nor the <noteRef href="#m00129" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Petroleum (Production) Act (Northern Ireland) 1964 applies;</p></content></hcontainer><hcontainer name="definition"><content><p>“petroleum” has the <noteRef href="#m00130" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>same meaning as in the Petroleum (Production) Act 1934; and</p></content></hcontainer><hcontainer name="definition"><content><p>“UK licence” means a licence within the meaning of Part I of the Oil Taxation Act 1975.</p></content></hcontainer></subsection></section><section><num>138B</num><heading>Disposal of oil licences: election for alternative tax treatment</heading><subsection><num>(1)</num><intro><p>Subsections (2) and (3) below apply where—</p></intro><level class="para1"><num>(a)</num><content><p>a person (“the transferor”) disposes of any interest in an oil licence to another (“the transferee”) during the transitional period;</p></content></level><level class="para1"><num>(b)</num><content><p>part of the value of the interest is attributable to allowable exploration expenditure incurred by the transferor; and</p></content></level><level class="para1"><num>(c)</num><content><p>an election is made in accordance with this section specifying an amount as the amount to be treated as so attributable.</p></content></level></subsection><subsection><num>(2)</num><intro><p>Section 138 shall have effect in relation to the disposal as if—</p></intro><level class="para1"><num>(a)</num><content><p>the disposal were a disposal by which an asset representing the allowable exploration expenditure ceases to belong to the transferor; and</p></content></level><level class="para1"><num>(b)</num><content><p>the disposal value of that asset were an amount equal to the amount specified in the election.</p></content></level></subsection><subsection><num>(3)</num><intro><p>For the purposes of Part IV, the amount of any expenditure incurred—</p></intro><level class="para1"><num>(a)</num><content><p>by the transferee in acquiring the interest from the transferor, or</p></content></level><level class="para1"><num>(b)</num><content><p>by any person subsequently acquiring the interest (or an interest deriving from the interest),</p></content></level><wrapUp><p>which is taken to be attributable to expenditure incurred, before the disposal to the transferee, on mineral exploration and access shall be the lesser of the amount specified in the election and the amount which, apart from this subsection, would be taken to be so attributable.</p></wrapUp></subsection><subsection><num>(4)</num><intro><p>An election—</p></intro><level class="para1"><num>(a)</num><content><p>shall be made by notice to the Board given by the transferor; and</p></content></level><level class="para1"><num>(b)</num><content><p>subject to subsection (5) below, shall not have effect unless a copy of it is served on the transferee and the transferee consents to it.</p></content></level></subsection><subsection><num>(5)</num><intro><p>If the Special Commissioners are satisfied—</p></intro><level class="para1"><num>(a)</num><content><p>that the disposal was made under or in pursuance of an agreement entered into by the transferor and the transferee on the mutual understanding that a quantified (or quantifiable) part of the value of the interest disposed of was attributable to allowable exploration expenditure, and</p></content></level><level class="para1"><num>(b)</num><content><p>that the part quantified in accordance with that understanding and the amount specified in the election are the same,</p></content></level><wrapUp><p>they may dispense with the need for the transferee to consent to the election.</p></wrapUp></subsection><subsection><num>(6)</num><content><p>Any question falling to be determined by the Special Commissioners under subsection (5) above shall be determined by them in like manner as if it were an appeal; but both the transferor and the transferee shall be entitled to appear and be heard by those Commissioners or to make representations to them in writing.</p></content></subsection><subsection><num>(7)</num><content><p>Subject to subsection (8) below, an election may specify any amount, including a nil amount, as the amount to be treated as mentioned in subsection (1)(c) above.</p></content></subsection><subsection><num>(8)</num><intro><p>Where—</p></intro><level class="para1"><num>(a)</num><content><p>a return has been made for a chargeable period of the transferor, and</p></content></level><level class="para1"><num>(b)</num><content><p>the return includes, at the time when it is made, an amount which, disregarding the provisions of this section, would be treated under section 138 as a trading receipt accruing in that period,</p></content></level><wrapUp><p>the election must not specify an amount less than the amount included in the return unless the Board agrees the lesser amount in question.</p></wrapUp></subsection><subsection><num>(9)</num><intro><p>An election made in accordance with this section—</p></intro><level class="para1"><num>(a)</num><content><p>is irrevocable; and</p></content></level><level class="para1"><num>(b)</num><content><p>shall not be varied after it is made.</p></content></level></subsection><subsection><num>(10)</num><intro><p>For the purposes of this section a disposal is a disposal made during the transitional period if it is one made—</p></intro><level class="para1"><num>(a)</num><content><p>before 13th September 1995; or</p></content></level><level class="para1"><num>(b)</num><content><p>on or after that date in pursuance of any obligation to make the disposal which, immediately before that date, was an unconditional obligation.</p></content></level></subsection><subsection><num>(11)</num><content><p>For the purposes of subsection (10) above, the fact that a third party who is not connected with the transferor or the transferee may, by exercising any right or withholding any permission, prevent the fulfilment of an obligation does not prevent the obligation from being treated as unconditional.</p></content></subsection><subsection><num>(12)</num><content><p>In subsection (11) above the reference to a third party is a reference to any person, body, government or public authority, whether within or outside the United Kingdom; and section 839 of the principal Act (connected persons) applies for the purposes of that subsection.</p></content></subsection><subsection><num>(13)</num><content><p>All such assessments and adjustments of assessments shall be made as may be necessary to give effect to this section.</p></content></subsection></section></quotedStructure></mod></p></content></subsection><subsection eId="section-180-2"><num>(2)</num><content><p>Section 151(1) of the <noteRef href="#m00131" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Capital Allowances Act 1990 (procedure on apportionments under Parts I, III to VI and Part VIII) shall have effect, and be deemed always to have had effect, as if for “VI” there were substituted “VII”.</p></content></subsection><subsection eId="section-180-3"><num>(3)</num><content><p><mod>In section 118 of the Capital Allowances Act 1990 (mineral extraction licences in the case of assets formerly owned by non-traders), the existing provisions shall become subsection (1) of that section and the following subsection shall be inserted after that subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(2)</num><content><p>Section 138A shall have effect for the purposes of subsection (1) above in relation to expenditure on mineral exploration and access as it has effect for the purposes of section 138 in relation to allowable scientific research expenditure of a capital nature.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-180-4"><num>(4)</num><content><p>Subsection (3) above applies in relation to any sale taking place on or after 13th September 1995.</p></content></subsection><subsection eId="section-180-5"><num>(5)</num><content><p>In any case to which enactments re-enacted in the <noteRef href="#m00132" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Capital Allowances Act 1990 apply instead of that Act, this section shall have effect as if it required amendments equivalent to those made by subsections (1) and (2) above to have effect, and be deemed always to have had effect, in relation to those enactments.</p></content></subsection></section><section eId="section-181"><num>181</num><heading>Overseas petroleum</heading><hcontainer name="wrapper2"><subsection eId="section-181-1"><num>(1)</num><content><p>In subsection (1) of section 196 of the <noteRef href="#m00133" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxation of Chargeable Gains Act 1992 (interpretation of sections 194 and 195), for “licence” there shall be substituted “UK licence”.</p></content></subsection><subsection eId="section-181-2"><num>(2)</num><content><p><mod>After subsection (1) of section 196 of that Act there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1A)</num><intro><p>For the purposes of section 194 a licence other than a UK licence relates to an undeveloped area at any time if, at that time—</p></intro><level class="para1"><num>(a)</num><content><p>no development has actually taken place in any part of the licensed area; and</p></content></level><level class="para1"><num>(b)</num><intro><p>no condition for the carrying out of development anywhere in that area has been satisfied—</p></intro><level class="para2"><num>(i)</num><content><p>by the grant of any consent by the authorities of a country or territory exercising jurisdiction in relation to the area; or</p></content></level><level class="para2"><num>(ii)</num><content><p>by the approval or service on the licensee, by any such authorities, of any programme of development.</p></content></level></level></subsection></quotedStructure><inline name="appendText">;</inline></mod></p></content></subsection></hcontainer><hcontainer name="wrapper2"><intro><p>and in subsection (2) of that section for “subsection (1) above” there shall be substituted “subsections (1) and (1A) above”.</p></intro><subsection eId="section-181-3"><num>(3)</num><content><p><mod>For subsection (5) of section 196 of that Act there shall be substituted the following subsections—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(5)</num><intro><p>In sections 194 and 195 and this section—</p></intro><hcontainer name="definition"><content><p>“foreign oil concession” means any right to search for or win overseas petroleum, being a right conferred or exercisable (whether or not by virtue of a licence) in relation to a particular area;</p></content></hcontainer><hcontainer name="definition"><intro><p>“interest” in relation to a licence, includes, where there is an agreement which—</p></intro><level class="para1"><num>(a)</num><content><p>relates to oil from the whole or any part of the licensed area, and</p></content></level><level class="para1"><num>(b)</num><content><p>was made before the extraction of the oil to which it relates,</p></content></level><wrapUp><p>any entitlement under that agreement to, or to a share of, either that oil or the proceeds of its sale;</p></wrapUp></hcontainer><hcontainer name="definition"><content><p>“licence” means any UK licence or foreign oil concession;</p></content></hcontainer><hcontainer name="definition"><intro><p>“licensed area” (subject to subsection (4) above)—</p></intro><level class="para1"><num>(a)</num><content><p>in relation to a UK licence, has the same meaning as in Part I of the <noteRef href="#m00134" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Oil Taxation Act 1975; and</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to a foreign oil concession, means the area to which the concession applies;</p></content></level></hcontainer><hcontainer name="definition"><intro><p>“licensee”—</p></intro><level class="para1"><num>(a)</num><content><p>in relation to a UK licence, has the same meaning as in Part I of the Oil Taxation Act 1975; and</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to a foreign oil concession, means the person with the concession or any person having an interest in it;</p></content></level></hcontainer><hcontainer name="definition"><intro><p>“oil”—</p></intro><level class="para1"><num>(a)</num><content><p>except in relation to a UK licence, means any petroleum (within the meaning of the <noteRef href="#m00135" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Petroleum (Production) Act 1934); and</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to such a licence, has the same meaning as in Part I of the Oil Taxation Act 1975;</p></content></level></hcontainer><hcontainer name="definition"><content><p>“overseas petroleum” means any oil that exists in its natural condition at a place to which neither the <noteRef href="#m00136" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Petroleum (Production) Act 1934 nor the <noteRef href="#m00137" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Petroleum (Production) Act (Northern Ireland) 1964 applies; and</p></content></hcontainer><hcontainer name="definition"><content><p>“UK licence” means a licence within the meaning of Part I of the <noteRef href="#m00138" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Oil Taxation Act 1975.</p></content></hcontainer></subsection><subsection><num>(5A)</num><content><p>References in sections 194 and 195 to a part disposal of a licence shall include references to the disposal of any interest in a licence.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-181-4"><num>(4)</num><content><p>Subsections (1) to (3) above shall have effect in relation to any disposal on or after 13th September 1995 and subsection (3) shall also have effect, and be deemed always to have had effect, for the construction of section 195 of the <noteRef href="#m00139" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxation of Chargeable Gains Act 1992 in its application to disposals before that date.</p></content></subsection><subsection eId="section-181-5"><num>(5)</num><content><p>Where enactments re-enacted in the <noteRef href="#m00140" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxation of Chargeable Gains Act 1992 apply, instead of that Act, in the case of any disposal before 13th September 1995, this section shall have effect as if it required amendments equivalent to those made by subsection (3) above to have effect, and be deemed always to have had effect, for the construction of any enactment corresponding to section 195 of that Act.</p></content></subsection></hcontainer></section><section eId="section-182"><num>182</num><heading>Controlled foreign companies</heading><content><p>Schedule 36 to this Act (which contains amendments of Chapter IV of Part XVII of the Taxes Act 1988) shall have effect in relation to accounting periods of a controlled foreign company, within the meaning of that Chapter, beginning on or after 28th November 1995.</p></content></section></hcontainer>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-178"><num>178</num><heading>Sub-contractors in the construction industry</heading><subsection eId="section-178-1"><num>(1)</num><content><p><mod>In section 566 of the Taxes Act 1988 (powers to make regulations in connection with the provisions relating to sub-contractors in the construction industry), after subsection (2) there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(2A)</num><intro><p>The Board may by regulations make provision—</p></intro><level class="para1"><num>(a)</num><content><p>for the issue of documents (to be known as “registration cards”) to persons who are parties, as sub-contractors, to any contract relating to construction operations or who are likely to become such parties;</p></content></level><level class="para1"><num>(b)</num><content><p>for a registration card to contain all such information about the person to whom it is issued as may be required, for the purposes of any regulations under this section, by a person making payments under any such contract;</p></content></level><level class="para1"><num>(c)</num><content><p>for a registration card to take such form and to be valid for such period as may be prescribed by the regulations;</p></content></level><level class="para1"><num>(d)</num><content><p>for the renewal, replacement or cancellation of a registration card;</p></content></level><level class="para1"><num>(e)</num><content><p>for requiring the surrender of a registration card in such circumstances as may be specified in the regulations;</p></content></level><level class="para1"><num>(f)</num><content><p>for requiring the production of a registration card to such persons and in such circumstances as may be so specified;</p></content></level><level class="para1"><num>(g)</num><intro><p>for requiring any person who—</p></intro><level class="para2"><num>(i)</num><content><p>makes or is proposing to make payments to which section 559 applies, and</p></content></level><level class="para2"><num>(ii)</num><content><p>is a person to whom a registration card has to be produced under the regulations,</p></content></level><wrapUp><p>to take steps that ensure that it is produced to him and that he has an opportunity of inspecting it for the purpose of checking that it is a valid registration card issued to the person required to produce it.</p></wrapUp></level></subsection><subsection><num>(2B)</num><content><p>A person who fails to comply with an obligation imposed on him by virtue of subsection (2A)(g) above shall be liable to a penalty not exceeding £3,000.</p></content></subsection><subsection><num>(2C)</num><intro><p>Subject to subsection (2D) below, where—</p></intro><level class="para1"><num>(a)</num><content><p>a person who is a party to a contract relating to any construction operations (“the contractor”) makes or is proposing to make payments to which section 559 applies,</p></content></level><level class="para1"><num>(b)</num><content><p>the contractor is required by regulations under this section to make statements about another party to the contract (“the sub-contractor”) in any return, certificate or other document,</p></content></level><level class="para1"><num>(c)</num><content><p>a registration card containing the information to be stated should have been produced, in accordance with any such regulations, to the contractor, and</p></content></level><level class="para1"><num>(d)</num><content><p>the statements made in the return, certificate or other document, so far as relating to matters the information about which should have been obtainable from the card, are inaccurate or incomplete in any material respect,</p></content></level><wrapUp><p>the contractor shall be liable to a penalty not exceeding £3,000.</p></wrapUp></subsection><subsection><num>(2D)</num><intro><p>A person shall not be liable to a penalty under subsection (2C) above if—</p></intro><level class="para1"><num>(a)</num><content><p>a valid registration card issued to the sub-contractor, or a document which the contractor had reasonable grounds for believing to be such a card, was produced to the contractor and inspected by him before the statements in question were made; and</p></content></level><level class="para1"><num>(b)</num><content><p>the contractor took all such steps as were reasonable, in addition to the inspection of that card, for ensuring that the statements were accurate and complete.</p></content></level></subsection><subsection><num>(2E)</num><content><p>A person liable to a penalty under subsection (2C) above shall not, by reason only of the matters in respect of which he is liable to a penalty under that subsection, be liable to any further penalty under section 98 of the Management Act.</p></content></subsection><subsection><num>(2F)</num><content><p>Regulations under this section may make different provision for different cases.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-178-2"><num>(2)</num><content><p><mod>In the second column of the Table in section 98 of the <noteRef href="#m00125" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxes Management Act 1970 (penalties in respect of certain information provisions), for the entry relating to regulations under section 566(1) and (2) of the Taxes Act 1988 there shall be substituted the following entry—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><p>regulations under section 566(1), (2) or (2A);</p></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-178-1"><num>(1)</num><content><p><mod>In section 566 of the Taxes Act 1988 (powers to make regulations in connection with the provisions relating to sub-contractors in the construction industry), after subsection (2) there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(2A)</num><intro><p>The Board may by regulations make provision—</p></intro><level class="para1"><num>(a)</num><content><p>for the issue of documents (to be known as “registration cards”) to persons who are parties, as sub-contractors, to any contract relating to construction operations or who are likely to become such parties;</p></content></level><level class="para1"><num>(b)</num><content><p>for a registration card to contain all such information about the person to whom it is issued as may be required, for the purposes of any regulations under this section, by a person making payments under any such contract;</p></content></level><level class="para1"><num>(c)</num><content><p>for a registration card to take such form and to be valid for such period as may be prescribed by the regulations;</p></content></level><level class="para1"><num>(d)</num><content><p>for the renewal, replacement or cancellation of a registration card;</p></content></level><level class="para1"><num>(e)</num><content><p>for requiring the surrender of a registration card in such circumstances as may be specified in the regulations;</p></content></level><level class="para1"><num>(f)</num><content><p>for requiring the production of a registration card to such persons and in such circumstances as may be so specified;</p></content></level><level class="para1"><num>(g)</num><intro><p>for requiring any person who—</p></intro><level class="para2"><num>(i)</num><content><p>makes or is proposing to make payments to which section 559 applies, and</p></content></level><level class="para2"><num>(ii)</num><content><p>is a person to whom a registration card has to be produced under the regulations,</p></content></level><wrapUp><p>to take steps that ensure that it is produced to him and that he has an opportunity of inspecting it for the purpose of checking that it is a valid registration card issued to the person required to produce it.</p></wrapUp></level></subsection><subsection><num>(2B)</num><content><p>A person who fails to comply with an obligation imposed on him by virtue of subsection (2A)(g) above shall be liable to a penalty not exceeding £3,000.</p></content></subsection><subsection><num>(2C)</num><intro><p>Subject to subsection (2D) below, where—</p></intro><level class="para1"><num>(a)</num><content><p>a person who is a party to a contract relating to any construction operations (“the contractor”) makes or is proposing to make payments to which section 559 applies,</p></content></level><level class="para1"><num>(b)</num><content><p>the contractor is required by regulations under this section to make statements about another party to the contract (“the sub-contractor”) in any return, certificate or other document,</p></content></level><level class="para1"><num>(c)</num><content><p>a registration card containing the information to be stated should have been produced, in accordance with any such regulations, to the contractor, and</p></content></level><level class="para1"><num>(d)</num><content><p>the statements made in the return, certificate or other document, so far as relating to matters the information about which should have been obtainable from the card, are inaccurate or incomplete in any material respect,</p></content></level><wrapUp><p>the contractor shall be liable to a penalty not exceeding £3,000.</p></wrapUp></subsection><subsection><num>(2D)</num><intro><p>A person shall not be liable to a penalty under subsection (2C) above if—</p></intro><level class="para1"><num>(a)</num><content><p>a valid registration card issued to the sub-contractor, or a document which the contractor had reasonable grounds for believing to be such a card, was produced to the contractor and inspected by him before the statements in question were made; and</p></content></level><level class="para1"><num>(b)</num><content><p>the contractor took all such steps as were reasonable, in addition to the inspection of that card, for ensuring that the statements were accurate and complete.</p></content></level></subsection><subsection><num>(2E)</num><content><p>A person liable to a penalty under subsection (2C) above shall not, by reason only of the matters in respect of which he is liable to a penalty under that subsection, be liable to any further penalty under section 98 of the Management Act.</p></content></subsection><subsection><num>(2F)</num><content><p>Regulations under this section may make different provision for different cases.</p></content></subsection></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-178-2"><num>(2)</num><content><p><mod>In the second column of the Table in section 98 of the <noteRef href="#m00125" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxes Management Act 1970 (penalties in respect of certain information provisions), for the entry relating to regulations under section 566(1) and (2) of the Taxes Act 1988 there shall be substituted the following entry—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><p>regulations under section 566(1), (2) or (2A);</p></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-179"><num>179</num><heading>Roll-over relief in respect of ships</heading><content><p>Schedule 35 to this Act (which amends sections 33A to 33F of the <noteRef href="#m00126" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Capital Allowances Act 1990) shall have effect.</p></content></section>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-180"><num>180</num><heading>Scientific research expenditure: oil licences</heading><subsection eId="section-180-1"><num>(1)</num><content><p><mod>The Capital Allowances Act 1990 shall have effect, and be deemed always to have had effect, with the following sections inserted after section 138 (assets ceasing to belong to traders)—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>138A</num><heading>Disposal of oil licences etc</heading><subsection><num>(1)</num><intro><p>For the purposes of section 138 where—</p></intro><level class="para1"><num>(a)</num><content><p>a person (“the transferor”) disposes of any interest in an oil licence to another (“the transferee”), and</p></content></level><level class="para1"><num>(b)</num><content><p>part of the value of that interest is attributable to any allowable exploration expenditure incurred by the transferor,</p></content></level><wrapUp><p>that disposal shall be deemed (subject to section 138B) to be a disposal by which an asset representing the allowable exploration expenditure to which that part of the value is attributable ceases to belong to the transferor.</p></wrapUp></subsection><subsection><num>(2)</num><content><p>Section 138 shall have effect in relation to the disposal of an interest in an oil licence, to the extent that the disposal is treated by virtue of subsection (1) above as a disposal of an asset representing allowable exploration expenditure, as if the disposal value of the asset were an amount equal to such part of the transferee’s expenditure on acquiring the interest as it is just and reasonable to attribute to the part of the value of that interest that is attributable to the allowable exploration expenditure.</p></content></subsection><subsection><num>(3)</num><content><p>In this section and section 138B references to allowable exploration expenditure are references to any allowable scientific research expenditure of a capital nature incurred on mineral exploration and access.</p></content></subsection><subsection><num>(4)</num><intro><p>In this section and section 138B—</p></intro><hcontainer name="definition"><content><p>“foreign oil concession” means any right to search for or win overseas petroleum, being a right conferred or exercisable (whether or not by virtue of a licence) in relation to a particular area;</p></content></hcontainer><hcontainer name="definition"><intro><p>“interest” in relation to an oil licence, includes, where there is an agreement which—</p></intro><level class="para1"><num>(a)</num><content><p>relates to oil from the whole or any part of the area to which the licence applies, and</p></content></level><level class="para1"><num>(b)</num><content><p>was made before the extraction of the oil to which it relates,</p></content></level><wrapUp><p>any entitlement under that agreement to, or to a share of, either that oil or the proceeds of its sale;</p></wrapUp></hcontainer><hcontainer name="definition"><content><p>“mineral exploration and access” has the same meaning as in Part IV;</p></content></hcontainer><hcontainer name="definition"><intro><p>“oil”—</p></intro><level class="para1"><num>(a)</num><content><p>except in relation to a UK licence, means any petroleum; and</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to such a licence, has the same meaning as in Part I of the <noteRef href="#m00127" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Oil Taxation Act 1975;</p></content></level></hcontainer><hcontainer name="definition"><content><p>“oil licence” means any UK licence or foreign oil concession;</p></content></hcontainer><hcontainer name="definition"><content><p>“overseas petroleum” means any petroleum that exists in its natural condition at a place to which neither the <noteRef href="#m00128" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Petroleum (Production) Act 1934 nor the <noteRef href="#m00129" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Petroleum (Production) Act (Northern Ireland) 1964 applies;</p></content></hcontainer><hcontainer name="definition"><content><p>“petroleum” has the <noteRef href="#m00130" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>same meaning as in the Petroleum (Production) Act 1934; and</p></content></hcontainer><hcontainer name="definition"><content><p>“UK licence” means a licence within the meaning of Part I of the Oil Taxation Act 1975.</p></content></hcontainer></subsection></section><section><num>138B</num><heading>Disposal of oil licences: election for alternative tax treatment</heading><subsection><num>(1)</num><intro><p>Subsections (2) and (3) below apply where—</p></intro><level class="para1"><num>(a)</num><content><p>a person (“the transferor”) disposes of any interest in an oil licence to another (“the transferee”) during the transitional period;</p></content></level><level class="para1"><num>(b)</num><content><p>part of the value of the interest is attributable to allowable exploration expenditure incurred by the transferor; and</p></content></level><level class="para1"><num>(c)</num><content><p>an election is made in accordance with this section specifying an amount as the amount to be treated as so attributable.</p></content></level></subsection><subsection><num>(2)</num><intro><p>Section 138 shall have effect in relation to the disposal as if—</p></intro><level class="para1"><num>(a)</num><content><p>the disposal were a disposal by which an asset representing the allowable exploration expenditure ceases to belong to the transferor; and</p></content></level><level class="para1"><num>(b)</num><content><p>the disposal value of that asset were an amount equal to the amount specified in the election.</p></content></level></subsection><subsection><num>(3)</num><intro><p>For the purposes of Part IV, the amount of any expenditure incurred—</p></intro><level class="para1"><num>(a)</num><content><p>by the transferee in acquiring the interest from the transferor, or</p></content></level><level class="para1"><num>(b)</num><content><p>by any person subsequently acquiring the interest (or an interest deriving from the interest),</p></content></level><wrapUp><p>which is taken to be attributable to expenditure incurred, before the disposal to the transferee, on mineral exploration and access shall be the lesser of the amount specified in the election and the amount which, apart from this subsection, would be taken to be so attributable.</p></wrapUp></subsection><subsection><num>(4)</num><intro><p>An election—</p></intro><level class="para1"><num>(a)</num><content><p>shall be made by notice to the Board given by the transferor; and</p></content></level><level class="para1"><num>(b)</num><content><p>subject to subsection (5) below, shall not have effect unless a copy of it is served on the transferee and the transferee consents to it.</p></content></level></subsection><subsection><num>(5)</num><intro><p>If the Special Commissioners are satisfied—</p></intro><level class="para1"><num>(a)</num><content><p>that the disposal was made under or in pursuance of an agreement entered into by the transferor and the transferee on the mutual understanding that a quantified (or quantifiable) part of the value of the interest disposed of was attributable to allowable exploration expenditure, and</p></content></level><level class="para1"><num>(b)</num><content><p>that the part quantified in accordance with that understanding and the amount specified in the election are the same,</p></content></level><wrapUp><p>they may dispense with the need for the transferee to consent to the election.</p></wrapUp></subsection><subsection><num>(6)</num><content><p>Any question falling to be determined by the Special Commissioners under subsection (5) above shall be determined by them in like manner as if it were an appeal; but both the transferor and the transferee shall be entitled to appear and be heard by those Commissioners or to make representations to them in writing.</p></content></subsection><subsection><num>(7)</num><content><p>Subject to subsection (8) below, an election may specify any amount, including a nil amount, as the amount to be treated as mentioned in subsection (1)(c) above.</p></content></subsection><subsection><num>(8)</num><intro><p>Where—</p></intro><level class="para1"><num>(a)</num><content><p>a return has been made for a chargeable period of the transferor, and</p></content></level><level class="para1"><num>(b)</num><content><p>the return includes, at the time when it is made, an amount which, disregarding the provisions of this section, would be treated under section 138 as a trading receipt accruing in that period,</p></content></level><wrapUp><p>the election must not specify an amount less than the amount included in the return unless the Board agrees the lesser amount in question.</p></wrapUp></subsection><subsection><num>(9)</num><intro><p>An election made in accordance with this section—</p></intro><level class="para1"><num>(a)</num><content><p>is irrevocable; and</p></content></level><level class="para1"><num>(b)</num><content><p>shall not be varied after it is made.</p></content></level></subsection><subsection><num>(10)</num><intro><p>For the purposes of this section a disposal is a disposal made during the transitional period if it is one made—</p></intro><level class="para1"><num>(a)</num><content><p>before 13th September 1995; or</p></content></level><level class="para1"><num>(b)</num><content><p>on or after that date in pursuance of any obligation to make the disposal which, immediately before that date, was an unconditional obligation.</p></content></level></subsection><subsection><num>(11)</num><content><p>For the purposes of subsection (10) above, the fact that a third party who is not connected with the transferor or the transferee may, by exercising any right or withholding any permission, prevent the fulfilment of an obligation does not prevent the obligation from being treated as unconditional.</p></content></subsection><subsection><num>(12)</num><content><p>In subsection (11) above the reference to a third party is a reference to any person, body, government or public authority, whether within or outside the United Kingdom; and section 839 of the principal Act (connected persons) applies for the purposes of that subsection.</p></content></subsection><subsection><num>(13)</num><content><p>All such assessments and adjustments of assessments shall be made as may be necessary to give effect to this section.</p></content></subsection></section></quotedStructure></mod></p></content></subsection><subsection eId="section-180-2"><num>(2)</num><content><p>Section 151(1) of the <noteRef href="#m00131" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Capital Allowances Act 1990 (procedure on apportionments under Parts I, III to VI and Part VIII) shall have effect, and be deemed always to have had effect, as if for “VI” there were substituted “VII”.</p></content></subsection><subsection eId="section-180-3"><num>(3)</num><content><p><mod>In section 118 of the Capital Allowances Act 1990 (mineral extraction licences in the case of assets formerly owned by non-traders), the existing provisions shall become subsection (1) of that section and the following subsection shall be inserted after that subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(2)</num><content><p>Section 138A shall have effect for the purposes of subsection (1) above in relation to expenditure on mineral exploration and access as it has effect for the purposes of section 138 in relation to allowable scientific research expenditure of a capital nature.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-180-4"><num>(4)</num><content><p>Subsection (3) above applies in relation to any sale taking place on or after 13th September 1995.</p></content></subsection><subsection eId="section-180-5"><num>(5)</num><content><p>In any case to which enactments re-enacted in the <noteRef href="#m00132" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Capital Allowances Act 1990 apply instead of that Act, this section shall have effect as if it required amendments equivalent to those made by subsections (1) and (2) above to have effect, and be deemed always to have had effect, in relation to those enactments.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-180-1"><num>(1)</num><content><p><mod>The Capital Allowances Act 1990 shall have effect, and be deemed always to have had effect, with the following sections inserted after section 138 (assets ceasing to belong to traders)—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>138A</num><heading>Disposal of oil licences etc</heading><subsection><num>(1)</num><intro><p>For the purposes of section 138 where—</p></intro><level class="para1"><num>(a)</num><content><p>a person (“the transferor”) disposes of any interest in an oil licence to another (“the transferee”), and</p></content></level><level class="para1"><num>(b)</num><content><p>part of the value of that interest is attributable to any allowable exploration expenditure incurred by the transferor,</p></content></level><wrapUp><p>that disposal shall be deemed (subject to section 138B) to be a disposal by which an asset representing the allowable exploration expenditure to which that part of the value is attributable ceases to belong to the transferor.</p></wrapUp></subsection><subsection><num>(2)</num><content><p>Section 138 shall have effect in relation to the disposal of an interest in an oil licence, to the extent that the disposal is treated by virtue of subsection (1) above as a disposal of an asset representing allowable exploration expenditure, as if the disposal value of the asset were an amount equal to such part of the transferee’s expenditure on acquiring the interest as it is just and reasonable to attribute to the part of the value of that interest that is attributable to the allowable exploration expenditure.</p></content></subsection><subsection><num>(3)</num><content><p>In this section and section 138B references to allowable exploration expenditure are references to any allowable scientific research expenditure of a capital nature incurred on mineral exploration and access.</p></content></subsection><subsection><num>(4)</num><intro><p>In this section and section 138B—</p></intro><hcontainer name="definition"><content><p>“foreign oil concession” means any right to search for or win overseas petroleum, being a right conferred or exercisable (whether or not by virtue of a licence) in relation to a particular area;</p></content></hcontainer><hcontainer name="definition"><intro><p>“interest” in relation to an oil licence, includes, where there is an agreement which—</p></intro><level class="para1"><num>(a)</num><content><p>relates to oil from the whole or any part of the area to which the licence applies, and</p></content></level><level class="para1"><num>(b)</num><content><p>was made before the extraction of the oil to which it relates,</p></content></level><wrapUp><p>any entitlement under that agreement to, or to a share of, either that oil or the proceeds of its sale;</p></wrapUp></hcontainer><hcontainer name="definition"><content><p>“mineral exploration and access” has the same meaning as in Part IV;</p></content></hcontainer><hcontainer name="definition"><intro><p>“oil”—</p></intro><level class="para1"><num>(a)</num><content><p>except in relation to a UK licence, means any petroleum; and</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to such a licence, has the same meaning as in Part I of the <noteRef href="#m00127" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Oil Taxation Act 1975;</p></content></level></hcontainer><hcontainer name="definition"><content><p>“oil licence” means any UK licence or foreign oil concession;</p></content></hcontainer><hcontainer name="definition"><content><p>“overseas petroleum” means any petroleum that exists in its natural condition at a place to which neither the <noteRef href="#m00128" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Petroleum (Production) Act 1934 nor the <noteRef href="#m00129" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Petroleum (Production) Act (Northern Ireland) 1964 applies;</p></content></hcontainer><hcontainer name="definition"><content><p>“petroleum” has the <noteRef href="#m00130" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>same meaning as in the Petroleum (Production) Act 1934; and</p></content></hcontainer><hcontainer name="definition"><content><p>“UK licence” means a licence within the meaning of Part I of the Oil Taxation Act 1975.</p></content></hcontainer></subsection></section><section><num>138B</num><heading>Disposal of oil licences: election for alternative tax treatment</heading><subsection><num>(1)</num><intro><p>Subsections (2) and (3) below apply where—</p></intro><level class="para1"><num>(a)</num><content><p>a person (“the transferor”) disposes of any interest in an oil licence to another (“the transferee”) during the transitional period;</p></content></level><level class="para1"><num>(b)</num><content><p>part of the value of the interest is attributable to allowable exploration expenditure incurred by the transferor; and</p></content></level><level class="para1"><num>(c)</num><content><p>an election is made in accordance with this section specifying an amount as the amount to be treated as so attributable.</p></content></level></subsection><subsection><num>(2)</num><intro><p>Section 138 shall have effect in relation to the disposal as if—</p></intro><level class="para1"><num>(a)</num><content><p>the disposal were a disposal by which an asset representing the allowable exploration expenditure ceases to belong to the transferor; and</p></content></level><level class="para1"><num>(b)</num><content><p>the disposal value of that asset were an amount equal to the amount specified in the election.</p></content></level></subsection><subsection><num>(3)</num><intro><p>For the purposes of Part IV, the amount of any expenditure incurred—</p></intro><level class="para1"><num>(a)</num><content><p>by the transferee in acquiring the interest from the transferor, or</p></content></level><level class="para1"><num>(b)</num><content><p>by any person subsequently acquiring the interest (or an interest deriving from the interest),</p></content></level><wrapUp><p>which is taken to be attributable to expenditure incurred, before the disposal to the transferee, on mineral exploration and access shall be the lesser of the amount specified in the election and the amount which, apart from this subsection, would be taken to be so attributable.</p></wrapUp></subsection><subsection><num>(4)</num><intro><p>An election—</p></intro><level class="para1"><num>(a)</num><content><p>shall be made by notice to the Board given by the transferor; and</p></content></level><level class="para1"><num>(b)</num><content><p>subject to subsection (5) below, shall not have effect unless a copy of it is served on the transferee and the transferee consents to it.</p></content></level></subsection><subsection><num>(5)</num><intro><p>If the Special Commissioners are satisfied—</p></intro><level class="para1"><num>(a)</num><content><p>that the disposal was made under or in pursuance of an agreement entered into by the transferor and the transferee on the mutual understanding that a quantified (or quantifiable) part of the value of the interest disposed of was attributable to allowable exploration expenditure, and</p></content></level><level class="para1"><num>(b)</num><content><p>that the part quantified in accordance with that understanding and the amount specified in the election are the same,</p></content></level><wrapUp><p>they may dispense with the need for the transferee to consent to the election.</p></wrapUp></subsection><subsection><num>(6)</num><content><p>Any question falling to be determined by the Special Commissioners under subsection (5) above shall be determined by them in like manner as if it were an appeal; but both the transferor and the transferee shall be entitled to appear and be heard by those Commissioners or to make representations to them in writing.</p></content></subsection><subsection><num>(7)</num><content><p>Subject to subsection (8) below, an election may specify any amount, including a nil amount, as the amount to be treated as mentioned in subsection (1)(c) above.</p></content></subsection><subsection><num>(8)</num><intro><p>Where—</p></intro><level class="para1"><num>(a)</num><content><p>a return has been made for a chargeable period of the transferor, and</p></content></level><level class="para1"><num>(b)</num><content><p>the return includes, at the time when it is made, an amount which, disregarding the provisions of this section, would be treated under section 138 as a trading receipt accruing in that period,</p></content></level><wrapUp><p>the election must not specify an amount less than the amount included in the return unless the Board agrees the lesser amount in question.</p></wrapUp></subsection><subsection><num>(9)</num><intro><p>An election made in accordance with this section—</p></intro><level class="para1"><num>(a)</num><content><p>is irrevocable; and</p></content></level><level class="para1"><num>(b)</num><content><p>shall not be varied after it is made.</p></content></level></subsection><subsection><num>(10)</num><intro><p>For the purposes of this section a disposal is a disposal made during the transitional period if it is one made—</p></intro><level class="para1"><num>(a)</num><content><p>before 13th September 1995; or</p></content></level><level class="para1"><num>(b)</num><content><p>on or after that date in pursuance of any obligation to make the disposal which, immediately before that date, was an unconditional obligation.</p></content></level></subsection><subsection><num>(11)</num><content><p>For the purposes of subsection (10) above, the fact that a third party who is not connected with the transferor or the transferee may, by exercising any right or withholding any permission, prevent the fulfilment of an obligation does not prevent the obligation from being treated as unconditional.</p></content></subsection><subsection><num>(12)</num><content><p>In subsection (11) above the reference to a third party is a reference to any person, body, government or public authority, whether within or outside the United Kingdom; and section 839 of the principal Act (connected persons) applies for the purposes of that subsection.</p></content></subsection><subsection><num>(13)</num><content><p>All such assessments and adjustments of assessments shall be made as may be necessary to give effect to this section.</p></content></subsection></section></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-180-2"><num>(2)</num><content><p>Section 151(1) of the <noteRef href="#m00131" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Capital Allowances Act 1990 (procedure on apportionments under Parts I, III to VI and Part VIII) shall have effect, and be deemed always to have had effect, as if for “VI” there were substituted “VII”.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-180-3"><num>(3)</num><content><p><mod>In section 118 of the Capital Allowances Act 1990 (mineral extraction licences in the case of assets formerly owned by non-traders), the existing provisions shall become subsection (1) of that section and the following subsection shall be inserted after that subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(2)</num><content><p>Section 138A shall have effect for the purposes of subsection (1) above in relation to expenditure on mineral exploration and access as it has effect for the purposes of section 138 in relation to allowable scientific research expenditure of a capital nature.</p></content></subsection></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-180-4"><num>(4)</num><content><p>Subsection (3) above applies in relation to any sale taking place on or after 13th September 1995.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-180-5"><num>(5)</num><content><p>In any case to which enactments re-enacted in the <noteRef href="#m00132" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Capital Allowances Act 1990 apply instead of that Act, this section shall have effect as if it required amendments equivalent to those made by subsections (1) and (2) above to have effect, and be deemed always to have had effect, in relation to those enactments.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-181"><num>181</num><heading>Overseas petroleum</heading><hcontainer name="wrapper2"><subsection eId="section-181-1"><num>(1)</num><content><p>In subsection (1) of section 196 of the <noteRef href="#m00133" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxation of Chargeable Gains Act 1992 (interpretation of sections 194 and 195), for “licence” there shall be substituted “UK licence”.</p></content></subsection><subsection eId="section-181-2"><num>(2)</num><content><p><mod>After subsection (1) of section 196 of that Act there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1A)</num><intro><p>For the purposes of section 194 a licence other than a UK licence relates to an undeveloped area at any time if, at that time—</p></intro><level class="para1"><num>(a)</num><content><p>no development has actually taken place in any part of the licensed area; and</p></content></level><level class="para1"><num>(b)</num><intro><p>no condition for the carrying out of development anywhere in that area has been satisfied—</p></intro><level class="para2"><num>(i)</num><content><p>by the grant of any consent by the authorities of a country or territory exercising jurisdiction in relation to the area; or</p></content></level><level class="para2"><num>(ii)</num><content><p>by the approval or service on the licensee, by any such authorities, of any programme of development.</p></content></level></level></subsection></quotedStructure><inline name="appendText">;</inline></mod></p></content></subsection></hcontainer><hcontainer name="wrapper2"><intro><p>and in subsection (2) of that section for “subsection (1) above” there shall be substituted “subsections (1) and (1A) above”.</p></intro><subsection eId="section-181-3"><num>(3)</num><content><p><mod>For subsection (5) of section 196 of that Act there shall be substituted the following subsections—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(5)</num><intro><p>In sections 194 and 195 and this section—</p></intro><hcontainer name="definition"><content><p>“foreign oil concession” means any right to search for or win overseas petroleum, being a right conferred or exercisable (whether or not by virtue of a licence) in relation to a particular area;</p></content></hcontainer><hcontainer name="definition"><intro><p>“interest” in relation to a licence, includes, where there is an agreement which—</p></intro><level class="para1"><num>(a)</num><content><p>relates to oil from the whole or any part of the licensed area, and</p></content></level><level class="para1"><num>(b)</num><content><p>was made before the extraction of the oil to which it relates,</p></content></level><wrapUp><p>any entitlement under that agreement to, or to a share of, either that oil or the proceeds of its sale;</p></wrapUp></hcontainer><hcontainer name="definition"><content><p>“licence” means any UK licence or foreign oil concession;</p></content></hcontainer><hcontainer name="definition"><intro><p>“licensed area” (subject to subsection (4) above)—</p></intro><level class="para1"><num>(a)</num><content><p>in relation to a UK licence, has the same meaning as in Part I of the <noteRef href="#m00134" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Oil Taxation Act 1975; and</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to a foreign oil concession, means the area to which the concession applies;</p></content></level></hcontainer><hcontainer name="definition"><intro><p>“licensee”—</p></intro><level class="para1"><num>(a)</num><content><p>in relation to a UK licence, has the same meaning as in Part I of the Oil Taxation Act 1975; and</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to a foreign oil concession, means the person with the concession or any person having an interest in it;</p></content></level></hcontainer><hcontainer name="definition"><intro><p>“oil”—</p></intro><level class="para1"><num>(a)</num><content><p>except in relation to a UK licence, means any petroleum (within the meaning of the <noteRef href="#m00135" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Petroleum (Production) Act 1934); and</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to such a licence, has the same meaning as in Part I of the Oil Taxation Act 1975;</p></content></level></hcontainer><hcontainer name="definition"><content><p>“overseas petroleum” means any oil that exists in its natural condition at a place to which neither the <noteRef href="#m00136" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Petroleum (Production) Act 1934 nor the <noteRef href="#m00137" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Petroleum (Production) Act (Northern Ireland) 1964 applies; and</p></content></hcontainer><hcontainer name="definition"><content><p>“UK licence” means a licence within the meaning of Part I of the <noteRef href="#m00138" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Oil Taxation Act 1975.</p></content></hcontainer></subsection><subsection><num>(5A)</num><content><p>References in sections 194 and 195 to a part disposal of a licence shall include references to the disposal of any interest in a licence.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-181-4"><num>(4)</num><content><p>Subsections (1) to (3) above shall have effect in relation to any disposal on or after 13th September 1995 and subsection (3) shall also have effect, and be deemed always to have had effect, for the construction of section 195 of the <noteRef href="#m00139" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxation of Chargeable Gains Act 1992 in its application to disposals before that date.</p></content></subsection><subsection eId="section-181-5"><num>(5)</num><content><p>Where enactments re-enacted in the <noteRef href="#m00140" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxation of Chargeable Gains Act 1992 apply, instead of that Act, in the case of any disposal before 13th September 1995, this section shall have effect as if it required amendments equivalent to those made by subsection (3) above to have effect, and be deemed always to have had effect, for the construction of any enactment corresponding to section 195 of that Act.</p></content></subsection></hcontainer></section>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-182"><num>182</num><heading>Controlled foreign companies</heading><content><p>Schedule 36 to this Act (which contains amendments of Chapter IV of Part XVII of the Taxes Act 1988) shall have effect in relation to accounting periods of a controlled foreign company, within the meaning of that Chapter, beginning on or after 28th November 1995.</p></content></section>
<part xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:default="http://www.w3.org/1999/xhtml" eId="part-V"><num>Part V</num><heading>Inheritance tax</heading><section eId="section-183"><num>183</num><heading>Rate bands</heading><subsection eId="section-183-1"><num>(1)</num><content><p>For the Table in Schedule 1 to the <noteRef href="#m00141" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Inheritance Tax Act 1984 there shall be substituted—</p><tblock class="table" ukl:Orientation="portrait"><heading>Table of Rates of Tax</heading><foreign><default:table xmlns="http://www.w3.org/1999/xhtml" summary="Inheritance tax: This table displays the Portion of Value (Lower limit and Upper limit) and corresponding Rate of tax (as a percentage)."><default:thead><default:tr><default:th colspan="2"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Portion of value</p></default:th></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Lower limit</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Upper limit</p></default:th></default:tr><default:tr><default:th/><default:th/><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Rate of tax</p></default:th></default:tr><default:tr><default:th/><default:th/><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Per cent.</p></default:th></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£</p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">0</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">200,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Nil</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">200,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">—</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">40</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></content></subsection><subsection eId="section-183-2"><num>(2)</num><content><p>Subsection (1) above shall apply to any chargeable transfer made on or after 6th April 1996; and section 8 of that Act (indexation of rate bands) shall not have effect as respects any difference between the retail prices index for the month of September 1994 and that for the month of September 1995.</p></content></subsection></section><section eId="section-184"><num>184</num><heading>Business property relief</heading><subsection eId="section-184-1"><num>(1)</num><content><p>The Inheritance Tax Act 1984 shall be amended as follows.</p></content></subsection><subsection eId="section-184-2"><num>(2)</num><intro><p>In section 105(1) (relevant business property for the purposes of business property relief)—</p></intro><level class="para1" eId="section-184-2-a"><num>(a)</num><intro><p>in paragraph (b) (unquoted shares and securities attracting 100 per cent. relief where they gave the transferor control of a company)—</p></intro><level class="para2" eId="section-184-2-a-i"><num>(i)</num><content><p>the words “shares in or” shall be omitted; and</p></content></level><level class="para2" eId="section-184-2-a-ii"><num>(ii)</num><content><p>for the words “shares or securities owned by the transferor” there shall be substituted “securities owned by the transferor and any unquoted shares so owned”;</p></content></level></level><level class="para1" eId="section-184-2-b"><num>(b)</num><content><p><mod>for paragraph (bb) (unquoted shares attracting 100 per cent. relief in other cases) there shall be substituted the following paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(bb)</num><content><p>any unquoted shares in a company;</p></content></level></quotedStructure></mod></p><p>and</p></content></level><level class="para1" eId="section-184-2-c"><num>(c)</num><content><p>paragraph (c) (unquoted shares attracting 50 per cent. relief) shall be omitted.</p></content></level></subsection><subsection eId="section-184-3"><num>(3)</num><content><p><mod>In section 107(4) (replacement of property with unquoted shares), for the words from the beginning to “such shares” there shall be substituted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(4)</num><content><p>Without prejudice to subsection (1) above, where any shares falling within section 105(1)(bb) above which are</p></content></subsection></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-184-4"><num>(4)</num><content><p>In section 113A(3A)(b) (which contains a reference to shares and securities falling within paragraph (b) of section 105(1)), after “(b)” there shall be inserted “or (bb)”.</p></content></subsection><subsection eId="section-184-5"><num>(5)</num><content><p><mod>For the removal of any doubt, the following subsection shall be inserted in section 113A (provisions applying to business property relief where there is a transfer within seven years of death) after subsection (7)—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(7A)</num><content><p>The provisions of this Chapter for the reduction of value transferred shall be disregarded in any determination for the purposes of this section of whether there is a potentially exempt or chargeable transfer in any case.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-184-6"><num>(6)</num><intro><p>This section—</p></intro><level class="para1" eId="section-184-6-a"><num>(a)</num><content><p>so far as it inserts a new subsection (7A) in section 113A, has effect in relation to any transfer of value on or after 28th November 1995; and</p></content></level><level class="para1" eId="section-184-6-b"><num>(b)</num><intro><p>so far as it makes any other provision, has effect—</p></intro><level class="para2" eId="section-184-6-b-i"><num>(i)</num><content><p>in relation to any transfer of value on or after 6th April 1996, and</p></content></level><level class="para2" eId="section-184-6-b-ii"><num>(ii)</num><content><p>for the purposes of any charge to tax by reason of an event occurring on or after 6th April 1996, in relation to transfers of value before that date.</p></content></level></level></subsection></section><section eId="section-185"><num>185</num><heading>Agricultural property relief</heading><subsection eId="section-185-1"><num>(1)</num><content><p>Chapter II of Part V of the <noteRef href="#m00142" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Inheritance Tax Act 1984 (agricultural property) shall be amended as follows.</p></content></subsection><subsection eId="section-185-2"><num>(2)</num><content><p><mod>In section 116 (relief for transfers of agricultural property) after subsection (5) there shall be inserted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(5A)</num><intro><p>Where, in consequence of the death on or after 1st September 1995 of the tenant or, as the case may be, the last surviving tenant of any property, the tenancy—</p></intro><level class="para1"><num>(a)</num><content><p>becomes vested in a person, as a result of his being a person beneficially entitled under the deceased tenant’s will or other testamentary writing or on his intestacy, and</p></content></level><level class="para1"><num>(b)</num><content><p>is or becomes binding on the landlord and that person as landlord and tenant respectively,</p></content></level><wrapUp><p>subsection (2)(c) above shall have effect as if the tenancy so vested had been a tenancy beginning on the date of the death.</p></wrapUp></subsection><subsection><num>(5B)</num><intro><p>Where in consequence of the death on or after 1st September 1995 of the tenant or, as the case may be, the last surviving tenant of any property, a tenancy of the property or of any property comprising the whole or part of it—</p></intro><level class="para1"><num>(a)</num><content><p>is obtained by a person under or by virtue of an enactment, or</p></content></level><level class="para1"><num>(b)</num><content><p>is granted to a person in circumstances such that he is already entitled under or by virtue of an enactment to obtain such a tenancy, but one which takes effect on a later date, or</p></content></level><level class="para1"><num>(c)</num><content><p>is granted to a person who is or has become the only or only remaining applicant, or the only or only remaining person eligible to apply, under a particular enactment for such a tenancy in the particular case,</p></content></level><wrapUp><p>subsection (2)(c) above shall have effect as if the tenancy so obtained or granted had been a tenancy beginning on the date of the death.</p></wrapUp></subsection><subsection><num>(5C)</num><content><p>Subsection (5B) above does not apply in relation to property situate in Scotland.</p></content></subsection><subsection><num>(5D)</num><intro><p>If, in a case where the transferor dies on or after 1st September 1995,—</p></intro><level class="para1"><num>(a)</num><content><p>the tenant of any property has, before the death, given notice of intention to retire in favour of a new tenant, and</p></content></level><level class="para1"><num>(b)</num><content><p>the tenant’s retirement in favour of the new tenant takes place after the death but not more than thirty months after the giving of the notice,</p></content></level><wrapUp><p>subsection (2)(c) above shall have effect as if the tenancy granted or assigned to the new tenant had been a tenancy beginning immediately before the transfer of value which the transferor is treated by section 4(1) above as making immediately before his death.</p></wrapUp></subsection><subsection><num>(5E)</num><intro><p>In subsection (5D) above and this subsection—</p></intro><hcontainer name="definition"><intro><p>“the new tenant” means—</p></intro><level class="para1"><num>(a)</num><content><p>the person or persons identified in a notice of intention to retire in favour of a new tenant as the person or persons who it is desired should become the tenant of the property to which that notice relates; or</p></content></level><level class="para1"><num>(b)</num><content><p>the survivor or survivors of the persons so identified, whether alone or with any other person or persons;</p></content></level></hcontainer><hcontainer name="definition"><content><p>“notice of intention to retire in favour of a new tenant” means, in the case of any property, a notice or other written intimation given to the landlord by the tenant, or (in the case of a joint tenancy or tenancy in common) all of the tenants, of the property indicating, in whatever terms, his or their wish that one or more persons identified in the notice or intimation should become the tenant of the property;</p></content></hcontainer><hcontainer name="definition"><content><p>“the retiring tenant’s tenancy” means the tenancy of the person or persons giving the notice of intention to retire in favour of a new tenant;</p></content></hcontainer><hcontainer name="definition"><intro><p>“the tenant’s retirement in favour of the new tenant” means—</p></intro><level class="para1"><num>(a)</num><content><p>the assignment, or (in Scotland) assignation, of the retiring tenant’s tenancy to the new tenant in circumstances such that the tenancy is or becomes binding on the landlord and the new tenant as landlord and tenant respectively; or</p></content></level><level class="para1"><num>(b)</num><content><p>the grant of a tenancy of the property which is the subject of the retiring tenant’s tenancy, or of any property comprising the whole or part of that property, to the new tenant and the acceptance of that tenancy by him;</p></content></level><wrapUp><p>and, except in Scotland, “grant” and “acceptance” in paragraph (b) above respectively include the deemed grant, and the deemed acceptance, of a tenancy under or by virtue of any enactment.</p></wrapUp></hcontainer></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-185-3"><num>(3)</num><content><p>In consequence of subsection (2) above, subsection (2A) of that section (which made, in relation to Scotland, provision which is superseded by the subsection (5A) inserted by subsection (2) above) shall cease to have effect.</p></content></subsection><subsection eId="section-185-4"><num>(4)</num><content><p><mod>For the removal of any doubt, the following subsection shall be inserted in section 124A (provisions applying to agricultural property relief where there is a transfer within seven years of death) after subsection (7)—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(7A)</num><content><p>The provisions of this Chapter for the reduction of value transferred shall be disregarded in any determination for the purposes of this section of whether there is a potentially exempt or chargeable transfer in any case.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-185-5"><num>(5)</num><intro><p>Subsection (2) above—</p></intro><level class="para1" eId="section-185-5-a"><num>(a)</num><content><p>so far as relating to subsections (5A) to (5C) of section 116 of the <noteRef href="#m00143" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Inheritance Tax Act 1984, has effect in any case where the death of the tenant or, as the case may be, the sole surviving tenant, occurs on or after 1st September 1995; and</p></content></level><level class="para1" eId="section-185-5-b"><num>(b)</num><content><p>so far as relating to subsections (5D) and (5E) of that section, has effect in any case where the death of the transferor occurs on or after 1st September 1995.</p></content></level></subsection><subsection eId="section-185-6"><num>(6)</num><content><p>Subsection (3) above has effect in any case where the death of the tenant or, as the case may be, the sole surviving tenant, occurs on or after 1st September 1995.</p></content></subsection><subsection eId="section-185-7"><num>(7)</num><content><p>Subsection (4) above has effect in relation to any transfer of value on or after 28th November 1995.</p></content></subsection></section></part>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:default="http://www.w3.org/1999/xhtml" eId="section-183"><num>183</num><heading>Rate bands</heading><subsection eId="section-183-1"><num>(1)</num><content><p>For the Table in Schedule 1 to the <noteRef href="#m00141" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Inheritance Tax Act 1984 there shall be substituted—</p><tblock class="table" ukl:Orientation="portrait"><heading>Table of Rates of Tax</heading><foreign><default:table xmlns="http://www.w3.org/1999/xhtml" summary="Inheritance tax: This table displays the Portion of Value (Lower limit and Upper limit) and corresponding Rate of tax (as a percentage)."><default:thead><default:tr><default:th colspan="2"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Portion of value</p></default:th></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Lower limit</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Upper limit</p></default:th></default:tr><default:tr><default:th/><default:th/><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Rate of tax</p></default:th></default:tr><default:tr><default:th/><default:th/><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Per cent.</p></default:th></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£</p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">0</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">200,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Nil</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">200,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">—</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">40</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></content></subsection><subsection eId="section-183-2"><num>(2)</num><content><p>Subsection (1) above shall apply to any chargeable transfer made on or after 6th April 1996; and section 8 of that Act (indexation of rate bands) shall not have effect as respects any difference between the retail prices index for the month of September 1994 and that for the month of September 1995.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:default="http://www.w3.org/1999/xhtml" eId="section-183-1"><num>(1)</num><content><p>For the Table in Schedule 1 to the <noteRef href="#m00141" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Inheritance Tax Act 1984 there shall be substituted—</p><tblock class="table" ukl:Orientation="portrait"><heading>Table of Rates of Tax</heading><foreign><default:table xmlns="http://www.w3.org/1999/xhtml" summary="Inheritance tax: This table displays the Portion of Value (Lower limit and Upper limit) and corresponding Rate of tax (as a percentage)."><default:thead><default:tr><default:th colspan="2"><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Portion of value</p></default:th></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Lower limit</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Upper limit</p></default:th></default:tr><default:tr><default:th/><default:th/><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Rate of tax</p></default:th></default:tr><default:tr><default:th/><default:th/><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Per cent.</p></default:th></default:tr><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£</p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">£</p></default:th></default:tr></default:thead><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">0</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">200,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Nil</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">200,000</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">—</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">40</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-183-2"><num>(2)</num><content><p>Subsection (1) above shall apply to any chargeable transfer made on or after 6th April 1996; and section 8 of that Act (indexation of rate bands) shall not have effect as respects any difference between the retail prices index for the month of September 1994 and that for the month of September 1995.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-184"><num>184</num><heading>Business property relief</heading><subsection eId="section-184-1"><num>(1)</num><content><p>The Inheritance Tax Act 1984 shall be amended as follows.</p></content></subsection><subsection eId="section-184-2"><num>(2)</num><intro><p>In section 105(1) (relevant business property for the purposes of business property relief)—</p></intro><level class="para1" eId="section-184-2-a"><num>(a)</num><intro><p>in paragraph (b) (unquoted shares and securities attracting 100 per cent. relief where they gave the transferor control of a company)—</p></intro><level class="para2" eId="section-184-2-a-i"><num>(i)</num><content><p>the words “shares in or” shall be omitted; and</p></content></level><level class="para2" eId="section-184-2-a-ii"><num>(ii)</num><content><p>for the words “shares or securities owned by the transferor” there shall be substituted “securities owned by the transferor and any unquoted shares so owned”;</p></content></level></level><level class="para1" eId="section-184-2-b"><num>(b)</num><content><p><mod>for paragraph (bb) (unquoted shares attracting 100 per cent. relief in other cases) there shall be substituted the following paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(bb)</num><content><p>any unquoted shares in a company;</p></content></level></quotedStructure></mod></p><p>and</p></content></level><level class="para1" eId="section-184-2-c"><num>(c)</num><content><p>paragraph (c) (unquoted shares attracting 50 per cent. relief) shall be omitted.</p></content></level></subsection><subsection eId="section-184-3"><num>(3)</num><content><p><mod>In section 107(4) (replacement of property with unquoted shares), for the words from the beginning to “such shares” there shall be substituted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(4)</num><content><p>Without prejudice to subsection (1) above, where any shares falling within section 105(1)(bb) above which are</p></content></subsection></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-184-4"><num>(4)</num><content><p>In section 113A(3A)(b) (which contains a reference to shares and securities falling within paragraph (b) of section 105(1)), after “(b)” there shall be inserted “or (bb)”.</p></content></subsection><subsection eId="section-184-5"><num>(5)</num><content><p><mod>For the removal of any doubt, the following subsection shall be inserted in section 113A (provisions applying to business property relief where there is a transfer within seven years of death) after subsection (7)—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(7A)</num><content><p>The provisions of this Chapter for the reduction of value transferred shall be disregarded in any determination for the purposes of this section of whether there is a potentially exempt or chargeable transfer in any case.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-184-6"><num>(6)</num><intro><p>This section—</p></intro><level class="para1" eId="section-184-6-a"><num>(a)</num><content><p>so far as it inserts a new subsection (7A) in section 113A, has effect in relation to any transfer of value on or after 28th November 1995; and</p></content></level><level class="para1" eId="section-184-6-b"><num>(b)</num><intro><p>so far as it makes any other provision, has effect—</p></intro><level class="para2" eId="section-184-6-b-i"><num>(i)</num><content><p>in relation to any transfer of value on or after 6th April 1996, and</p></content></level><level class="para2" eId="section-184-6-b-ii"><num>(ii)</num><content><p>for the purposes of any charge to tax by reason of an event occurring on or after 6th April 1996, in relation to transfers of value before that date.</p></content></level></level></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-184-1"><num>(1)</num><content><p>The Inheritance Tax Act 1984 shall be amended as follows.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-184-2"><num>(2)</num><intro><p>In section 105(1) (relevant business property for the purposes of business property relief)—</p></intro><level class="para1" eId="section-184-2-a"><num>(a)</num><intro><p>in paragraph (b) (unquoted shares and securities attracting 100 per cent. relief where they gave the transferor control of a company)—</p></intro><level class="para2" eId="section-184-2-a-i"><num>(i)</num><content><p>the words “shares in or” shall be omitted; and</p></content></level><level class="para2" eId="section-184-2-a-ii"><num>(ii)</num><content><p>for the words “shares or securities owned by the transferor” there shall be substituted “securities owned by the transferor and any unquoted shares so owned”;</p></content></level></level><level class="para1" eId="section-184-2-b"><num>(b)</num><content><p><mod>for paragraph (bb) (unquoted shares attracting 100 per cent. relief in other cases) there shall be substituted the following paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(bb)</num><content><p>any unquoted shares in a company;</p></content></level></quotedStructure></mod></p><p>and</p></content></level><level class="para1" eId="section-184-2-c"><num>(c)</num><content><p>paragraph (c) (unquoted shares attracting 50 per cent. relief) shall be omitted.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-184-2-a"><num>(a)</num><intro><p>in paragraph (b) (unquoted shares and securities attracting 100 per cent. relief where they gave the transferor control of a company)—</p></intro><level class="para2" eId="section-184-2-a-i"><num>(i)</num><content><p>the words “shares in or” shall be omitted; and</p></content></level><level class="para2" eId="section-184-2-a-ii"><num>(ii)</num><content><p>for the words “shares or securities owned by the transferor” there shall be substituted “securities owned by the transferor and any unquoted shares so owned”;</p></content></level></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-184-2-a-i"><num>(i)</num><content><p>the words “shares in or” shall be omitted; and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-184-2-a-ii"><num>(ii)</num><content><p>for the words “shares or securities owned by the transferor” there shall be substituted “securities owned by the transferor and any unquoted shares so owned”;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-184-2-b"><num>(b)</num><content><p><mod>for paragraph (bb) (unquoted shares attracting 100 per cent. relief in other cases) there shall be substituted the following paragraph—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(bb)</num><content><p>any unquoted shares in a company;</p></content></level></quotedStructure></mod></p><p>and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-184-2-c"><num>(c)</num><content><p>paragraph (c) (unquoted shares attracting 50 per cent. relief) shall be omitted.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-184-3"><num>(3)</num><content><p><mod>In section 107(4) (replacement of property with unquoted shares), for the words from the beginning to “such shares” there shall be substituted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(4)</num><content><p>Without prejudice to subsection (1) above, where any shares falling within section 105(1)(bb) above which are</p></content></subsection></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-184-4"><num>(4)</num><content><p>In section 113A(3A)(b) (which contains a reference to shares and securities falling within paragraph (b) of section 105(1)), after “(b)” there shall be inserted “or (bb)”.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-184-5"><num>(5)</num><content><p><mod>For the removal of any doubt, the following subsection shall be inserted in section 113A (provisions applying to business property relief where there is a transfer within seven years of death) after subsection (7)—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(7A)</num><content><p>The provisions of this Chapter for the reduction of value transferred shall be disregarded in any determination for the purposes of this section of whether there is a potentially exempt or chargeable transfer in any case.</p></content></subsection></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-184-6"><num>(6)</num><intro><p>This section—</p></intro><level class="para1" eId="section-184-6-a"><num>(a)</num><content><p>so far as it inserts a new subsection (7A) in section 113A, has effect in relation to any transfer of value on or after 28th November 1995; and</p></content></level><level class="para1" eId="section-184-6-b"><num>(b)</num><intro><p>so far as it makes any other provision, has effect—</p></intro><level class="para2" eId="section-184-6-b-i"><num>(i)</num><content><p>in relation to any transfer of value on or after 6th April 1996, and</p></content></level><level class="para2" eId="section-184-6-b-ii"><num>(ii)</num><content><p>for the purposes of any charge to tax by reason of an event occurring on or after 6th April 1996, in relation to transfers of value before that date.</p></content></level></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-184-6-a"><num>(a)</num><content><p>so far as it inserts a new subsection (7A) in section 113A, has effect in relation to any transfer of value on or after 28th November 1995; and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-184-6-b"><num>(b)</num><intro><p>so far as it makes any other provision, has effect—</p></intro><level class="para2" eId="section-184-6-b-i"><num>(i)</num><content><p>in relation to any transfer of value on or after 6th April 1996, and</p></content></level><level class="para2" eId="section-184-6-b-ii"><num>(ii)</num><content><p>for the purposes of any charge to tax by reason of an event occurring on or after 6th April 1996, in relation to transfers of value before that date.</p></content></level></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-184-6-b-i"><num>(i)</num><content><p>in relation to any transfer of value on or after 6th April 1996, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-184-6-b-ii"><num>(ii)</num><content><p>for the purposes of any charge to tax by reason of an event occurring on or after 6th April 1996, in relation to transfers of value before that date.</p></content></level>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-185"><num>185</num><heading>Agricultural property relief</heading><subsection eId="section-185-1"><num>(1)</num><content><p>Chapter II of Part V of the <noteRef href="#m00142" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Inheritance Tax Act 1984 (agricultural property) shall be amended as follows.</p></content></subsection><subsection eId="section-185-2"><num>(2)</num><content><p><mod>In section 116 (relief for transfers of agricultural property) after subsection (5) there shall be inserted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(5A)</num><intro><p>Where, in consequence of the death on or after 1st September 1995 of the tenant or, as the case may be, the last surviving tenant of any property, the tenancy—</p></intro><level class="para1"><num>(a)</num><content><p>becomes vested in a person, as a result of his being a person beneficially entitled under the deceased tenant’s will or other testamentary writing or on his intestacy, and</p></content></level><level class="para1"><num>(b)</num><content><p>is or becomes binding on the landlord and that person as landlord and tenant respectively,</p></content></level><wrapUp><p>subsection (2)(c) above shall have effect as if the tenancy so vested had been a tenancy beginning on the date of the death.</p></wrapUp></subsection><subsection><num>(5B)</num><intro><p>Where in consequence of the death on or after 1st September 1995 of the tenant or, as the case may be, the last surviving tenant of any property, a tenancy of the property or of any property comprising the whole or part of it—</p></intro><level class="para1"><num>(a)</num><content><p>is obtained by a person under or by virtue of an enactment, or</p></content></level><level class="para1"><num>(b)</num><content><p>is granted to a person in circumstances such that he is already entitled under or by virtue of an enactment to obtain such a tenancy, but one which takes effect on a later date, or</p></content></level><level class="para1"><num>(c)</num><content><p>is granted to a person who is or has become the only or only remaining applicant, or the only or only remaining person eligible to apply, under a particular enactment for such a tenancy in the particular case,</p></content></level><wrapUp><p>subsection (2)(c) above shall have effect as if the tenancy so obtained or granted had been a tenancy beginning on the date of the death.</p></wrapUp></subsection><subsection><num>(5C)</num><content><p>Subsection (5B) above does not apply in relation to property situate in Scotland.</p></content></subsection><subsection><num>(5D)</num><intro><p>If, in a case where the transferor dies on or after 1st September 1995,—</p></intro><level class="para1"><num>(a)</num><content><p>the tenant of any property has, before the death, given notice of intention to retire in favour of a new tenant, and</p></content></level><level class="para1"><num>(b)</num><content><p>the tenant’s retirement in favour of the new tenant takes place after the death but not more than thirty months after the giving of the notice,</p></content></level><wrapUp><p>subsection (2)(c) above shall have effect as if the tenancy granted or assigned to the new tenant had been a tenancy beginning immediately before the transfer of value which the transferor is treated by section 4(1) above as making immediately before his death.</p></wrapUp></subsection><subsection><num>(5E)</num><intro><p>In subsection (5D) above and this subsection—</p></intro><hcontainer name="definition"><intro><p>“the new tenant” means—</p></intro><level class="para1"><num>(a)</num><content><p>the person or persons identified in a notice of intention to retire in favour of a new tenant as the person or persons who it is desired should become the tenant of the property to which that notice relates; or</p></content></level><level class="para1"><num>(b)</num><content><p>the survivor or survivors of the persons so identified, whether alone or with any other person or persons;</p></content></level></hcontainer><hcontainer name="definition"><content><p>“notice of intention to retire in favour of a new tenant” means, in the case of any property, a notice or other written intimation given to the landlord by the tenant, or (in the case of a joint tenancy or tenancy in common) all of the tenants, of the property indicating, in whatever terms, his or their wish that one or more persons identified in the notice or intimation should become the tenant of the property;</p></content></hcontainer><hcontainer name="definition"><content><p>“the retiring tenant’s tenancy” means the tenancy of the person or persons giving the notice of intention to retire in favour of a new tenant;</p></content></hcontainer><hcontainer name="definition"><intro><p>“the tenant’s retirement in favour of the new tenant” means—</p></intro><level class="para1"><num>(a)</num><content><p>the assignment, or (in Scotland) assignation, of the retiring tenant’s tenancy to the new tenant in circumstances such that the tenancy is or becomes binding on the landlord and the new tenant as landlord and tenant respectively; or</p></content></level><level class="para1"><num>(b)</num><content><p>the grant of a tenancy of the property which is the subject of the retiring tenant’s tenancy, or of any property comprising the whole or part of that property, to the new tenant and the acceptance of that tenancy by him;</p></content></level><wrapUp><p>and, except in Scotland, “grant” and “acceptance” in paragraph (b) above respectively include the deemed grant, and the deemed acceptance, of a tenancy under or by virtue of any enactment.</p></wrapUp></hcontainer></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-185-3"><num>(3)</num><content><p>In consequence of subsection (2) above, subsection (2A) of that section (which made, in relation to Scotland, provision which is superseded by the subsection (5A) inserted by subsection (2) above) shall cease to have effect.</p></content></subsection><subsection eId="section-185-4"><num>(4)</num><content><p><mod>For the removal of any doubt, the following subsection shall be inserted in section 124A (provisions applying to agricultural property relief where there is a transfer within seven years of death) after subsection (7)—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(7A)</num><content><p>The provisions of this Chapter for the reduction of value transferred shall be disregarded in any determination for the purposes of this section of whether there is a potentially exempt or chargeable transfer in any case.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-185-5"><num>(5)</num><intro><p>Subsection (2) above—</p></intro><level class="para1" eId="section-185-5-a"><num>(a)</num><content><p>so far as relating to subsections (5A) to (5C) of section 116 of the <noteRef href="#m00143" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Inheritance Tax Act 1984, has effect in any case where the death of the tenant or, as the case may be, the sole surviving tenant, occurs on or after 1st September 1995; and</p></content></level><level class="para1" eId="section-185-5-b"><num>(b)</num><content><p>so far as relating to subsections (5D) and (5E) of that section, has effect in any case where the death of the transferor occurs on or after 1st September 1995.</p></content></level></subsection><subsection eId="section-185-6"><num>(6)</num><content><p>Subsection (3) above has effect in any case where the death of the tenant or, as the case may be, the sole surviving tenant, occurs on or after 1st September 1995.</p></content></subsection><subsection eId="section-185-7"><num>(7)</num><content><p>Subsection (4) above has effect in relation to any transfer of value on or after 28th November 1995.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-185-1"><num>(1)</num><content><p>Chapter II of Part V of the <noteRef href="#m00142" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Inheritance Tax Act 1984 (agricultural property) shall be amended as follows.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-185-2"><num>(2)</num><content><p><mod>In section 116 (relief for transfers of agricultural property) after subsection (5) there shall be inserted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(5A)</num><intro><p>Where, in consequence of the death on or after 1st September 1995 of the tenant or, as the case may be, the last surviving tenant of any property, the tenancy—</p></intro><level class="para1"><num>(a)</num><content><p>becomes vested in a person, as a result of his being a person beneficially entitled under the deceased tenant’s will or other testamentary writing or on his intestacy, and</p></content></level><level class="para1"><num>(b)</num><content><p>is or becomes binding on the landlord and that person as landlord and tenant respectively,</p></content></level><wrapUp><p>subsection (2)(c) above shall have effect as if the tenancy so vested had been a tenancy beginning on the date of the death.</p></wrapUp></subsection><subsection><num>(5B)</num><intro><p>Where in consequence of the death on or after 1st September 1995 of the tenant or, as the case may be, the last surviving tenant of any property, a tenancy of the property or of any property comprising the whole or part of it—</p></intro><level class="para1"><num>(a)</num><content><p>is obtained by a person under or by virtue of an enactment, or</p></content></level><level class="para1"><num>(b)</num><content><p>is granted to a person in circumstances such that he is already entitled under or by virtue of an enactment to obtain such a tenancy, but one which takes effect on a later date, or</p></content></level><level class="para1"><num>(c)</num><content><p>is granted to a person who is or has become the only or only remaining applicant, or the only or only remaining person eligible to apply, under a particular enactment for such a tenancy in the particular case,</p></content></level><wrapUp><p>subsection (2)(c) above shall have effect as if the tenancy so obtained or granted had been a tenancy beginning on the date of the death.</p></wrapUp></subsection><subsection><num>(5C)</num><content><p>Subsection (5B) above does not apply in relation to property situate in Scotland.</p></content></subsection><subsection><num>(5D)</num><intro><p>If, in a case where the transferor dies on or after 1st September 1995,—</p></intro><level class="para1"><num>(a)</num><content><p>the tenant of any property has, before the death, given notice of intention to retire in favour of a new tenant, and</p></content></level><level class="para1"><num>(b)</num><content><p>the tenant’s retirement in favour of the new tenant takes place after the death but not more than thirty months after the giving of the notice,</p></content></level><wrapUp><p>subsection (2)(c) above shall have effect as if the tenancy granted or assigned to the new tenant had been a tenancy beginning immediately before the transfer of value which the transferor is treated by section 4(1) above as making immediately before his death.</p></wrapUp></subsection><subsection><num>(5E)</num><intro><p>In subsection (5D) above and this subsection—</p></intro><hcontainer name="definition"><intro><p>“the new tenant” means—</p></intro><level class="para1"><num>(a)</num><content><p>the person or persons identified in a notice of intention to retire in favour of a new tenant as the person or persons who it is desired should become the tenant of the property to which that notice relates; or</p></content></level><level class="para1"><num>(b)</num><content><p>the survivor or survivors of the persons so identified, whether alone or with any other person or persons;</p></content></level></hcontainer><hcontainer name="definition"><content><p>“notice of intention to retire in favour of a new tenant” means, in the case of any property, a notice or other written intimation given to the landlord by the tenant, or (in the case of a joint tenancy or tenancy in common) all of the tenants, of the property indicating, in whatever terms, his or their wish that one or more persons identified in the notice or intimation should become the tenant of the property;</p></content></hcontainer><hcontainer name="definition"><content><p>“the retiring tenant’s tenancy” means the tenancy of the person or persons giving the notice of intention to retire in favour of a new tenant;</p></content></hcontainer><hcontainer name="definition"><intro><p>“the tenant’s retirement in favour of the new tenant” means—</p></intro><level class="para1"><num>(a)</num><content><p>the assignment, or (in Scotland) assignation, of the retiring tenant’s tenancy to the new tenant in circumstances such that the tenancy is or becomes binding on the landlord and the new tenant as landlord and tenant respectively; or</p></content></level><level class="para1"><num>(b)</num><content><p>the grant of a tenancy of the property which is the subject of the retiring tenant’s tenancy, or of any property comprising the whole or part of that property, to the new tenant and the acceptance of that tenancy by him;</p></content></level><wrapUp><p>and, except in Scotland, “grant” and “acceptance” in paragraph (b) above respectively include the deemed grant, and the deemed acceptance, of a tenancy under or by virtue of any enactment.</p></wrapUp></hcontainer></subsection></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-185-3"><num>(3)</num><content><p>In consequence of subsection (2) above, subsection (2A) of that section (which made, in relation to Scotland, provision which is superseded by the subsection (5A) inserted by subsection (2) above) shall cease to have effect.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-185-4"><num>(4)</num><content><p><mod>For the removal of any doubt, the following subsection shall be inserted in section 124A (provisions applying to agricultural property relief where there is a transfer within seven years of death) after subsection (7)—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(7A)</num><content><p>The provisions of this Chapter for the reduction of value transferred shall be disregarded in any determination for the purposes of this section of whether there is a potentially exempt or chargeable transfer in any case.</p></content></subsection></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-185-5"><num>(5)</num><intro><p>Subsection (2) above—</p></intro><level class="para1" eId="section-185-5-a"><num>(a)</num><content><p>so far as relating to subsections (5A) to (5C) of section 116 of the <noteRef href="#m00143" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Inheritance Tax Act 1984, has effect in any case where the death of the tenant or, as the case may be, the sole surviving tenant, occurs on or after 1st September 1995; and</p></content></level><level class="para1" eId="section-185-5-b"><num>(b)</num><content><p>so far as relating to subsections (5D) and (5E) of that section, has effect in any case where the death of the transferor occurs on or after 1st September 1995.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-185-5-a"><num>(a)</num><content><p>so far as relating to subsections (5A) to (5C) of section 116 of the <noteRef href="#m00143" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Inheritance Tax Act 1984, has effect in any case where the death of the tenant or, as the case may be, the sole surviving tenant, occurs on or after 1st September 1995; and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-185-5-b"><num>(b)</num><content><p>so far as relating to subsections (5D) and (5E) of that section, has effect in any case where the death of the transferor occurs on or after 1st September 1995.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-185-6"><num>(6)</num><content><p>Subsection (3) above has effect in any case where the death of the tenant or, as the case may be, the sole surviving tenant, occurs on or after 1st September 1995.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-185-7"><num>(7)</num><content><p>Subsection (4) above has effect in relation to any transfer of value on or after 28th November 1995.</p></content></subsection>
<part xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" eId="part-VI"><num>Part VI</num><heading>Stamp Duty and Stamp Duty Reserve Tax</heading><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-VI-crossheading-stamp-duty"><heading>Stamp duty</heading><section eId="section-186"><num>186</num><heading>Transfers of securities to members of electronic transfer systems etc</heading><subsection eId="section-186-1"><num>(1)</num><content><p>Stamp duty shall not be chargeable on an instrument effecting a transfer of securities if the transferee is a member of an electronic transfer system and the instrument is in a form which will, in accordance with the rules of the system, ensure that the securities are changed from being held in certificated form to being held in uncertificated form so that title to them may become transferable by means of the system.</p></content></subsection><subsection eId="section-186-2"><num>(2)</num><intro><p>In this section—</p></intro><hcontainer name="definition"><content><p>“certificated form” has the same meaning as in the relevant regulations;</p></content></hcontainer><hcontainer name="definition"><content><p>“electronic transfer system” means a system and procedures which, in accordance with the relevant regulations, enable title to securities to be evidenced and transferred without a written instrument;</p></content></hcontainer><hcontainer name="definition"><content><p>“member”, in relation to an electronic transfer system, means a person who is permitted by the operator of the system to transfer by means of the system title to securities held by him in uncertificated form;</p></content></hcontainer><hcontainer name="definition"><content><p>“operator” means a person approved by the Treasury under the relevant regulations as operator of an electronic transfer system;</p></content></hcontainer><hcontainer name="definition"><content><p>“the relevant regulations” means regulations under section 207 of the <noteRef href="#m00144" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Companies Act 1989 (transfer without written instrument);</p></content></hcontainer><hcontainer name="definition"><content><p>“securities” means stock or marketable securities;</p></content></hcontainer><hcontainer name="definition"><content><p>“uncertificated form” has the same meaning as it has in the relevant regulations.</p></content></hcontainer></subsection><subsection eId="section-186-3"><num>(3)</num><content><p>This section applies in relation to instruments executed on or after 1st July 1996.</p></content></subsection><subsection eId="section-186-4"><num>(4)</num><content><p>This section shall be construed as one with the <noteRef href="#m00145" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Stamp Act 1891.</p></content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-VI-crossheading-stamp-duty-reserve-tax"><heading>Stamp duty reserve tax</heading><section eId="section-187"><num>187</num><heading>Territorial scope of the tax</heading><subsection eId="section-187-1"><num>(1)</num><content><p><mod>In section 86 of the <noteRef href="#m00146" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1986 (introduction) after subsection (3) there shall be added—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(4)</num><intro><p>Stamp duty reserve tax shall be chargeable in accordance with the provisions of this Part of this Act—</p></intro><level class="para1"><num>(a)</num><content><p>whether the agreement, transfer, issue or appropriation in question is made or effected in the United Kingdom or elsewhere, and</p></content></level><level class="para1"><num>(b)</num><content><p>whether or not any party is resident or situate in any part of the United Kingdom.</p></content></level></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-187-2"><num>(2)</num><intro><p>The amendment made by subsection (1) above shall have effect—</p></intro><level class="para1" eId="section-187-2-a"><num>(a)</num><intro><p>in relation to an agreement, if—</p></intro><level class="para2" eId="section-187-2-a-i"><num>(i)</num><content><p>the agreement is conditional and the condition is satisfied on or after 1st July 1996; or</p></content></level><level class="para2" eId="section-187-2-a-ii"><num>(ii)</num><content><p>the agreement is not conditional and is made on or after that date; and</p></content></level></level><level class="para1" eId="section-187-2-b"><num>(b)</num><content><p>in relation to a transfer, issue or appropriation made or effected on or after that date.</p></content></level></subsection></section><section eId="section-188"><num>188</num><heading>Removal of the two month period</heading><subsection eId="section-188-1"><num>(1)</num><intro><p>In section 87 of the <noteRef href="#m00147" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1986 (the principal charge) in subsection (2) (tax charged on the expiry of the period of two months beginning with the relevant day unless the first and second conditions are fulfilled before that period expires) the following shall be omitted—</p></intro><level class="para1" eId="section-188-1-a"><num>(a)</num><content><p>the words “the expiry of the period of two months beginning with”, and</p></content></level><level class="para1" eId="section-188-1-b"><num>(b)</num><content><p>the words from “unless” to the end.</p></content></level></subsection><subsection eId="section-188-2"><num>(2)</num><content><p><mod>In section 88 of that Act (special cases) in subsection (1) (which provides for instruments on which stamp duty is not chargeable by virtue of certain enactments to be disregarded for the purposes of section 87(4) and (5)) before paragraph (a) there shall be inserted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(aa)</num><content><p>section 65(1) of the <noteRef href="#m00148" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1963 (renounceable letters of allotment etc),</p></content></level><level class="para1"><num>(ab)</num><content><p>section 14(1) of the <noteRef href="#m00149" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act (Northern Ireland) 1963 (renounceable letters of allotment etc.),</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-188-3"><num>(3)</num><content><p>Subsections (2) and (3) of that section (which are superseded by subsection (2) above) shall cease to have effect.</p></content></subsection><subsection eId="section-188-4"><num>(4)</num><intro><p>In section 92(1) of that Act (repayment or cancellation of tax where the conditions in section 87(4) and (5) are shown to have been fulfilled after the expiry of the period of two months beginning with the relevant day but before the expiry of six years so beginning)—</p></intro><level class="para1" eId="section-188-4-a"><num>(a)</num><content><p>for “after the expiry of the period of two months (beginning with the relevant day, as defined in section 87(3))” there shall be substituted “on or after the relevant day (as defined in section 87(3))”; and</p></content></level><level class="para1" eId="section-188-4-b"><num>(b)</num><content><p>for “(so beginning)” there shall be substituted “(beginning with that day)”.</p></content></level></subsection><subsection eId="section-188-5"><num>(5)</num><intro><p>The amendments made by this section shall have effect in relation to an agreement to transfer securities if—</p></intro><level class="para1" eId="section-188-5-a"><num>(a)</num><content><p>the agreement is conditional and the condition is satisfied on or after 1st July 1996; or</p></content></level><level class="para1" eId="section-188-5-b"><num>(b)</num><content><p>the agreement is not conditional and is made on or after that date.</p></content></level></subsection></section><section eId="section-189"><num>189</num><heading>Transfers to members of electronic transfer systems etc</heading><subsection eId="section-189-1"><num>(1)</num><content><p><mod>In section 88 of the Finance Act 1986 (special cases) after subsection (1) there shall be inserted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1A)</num><intro><p>An instrument on which stamp duty is not chargeable by virtue of section 186 of the Finance Act 1996 (transfers of securities to members of electronic transfer systems etc) shall be disregarded in construing section 87(4) and (5) above unless—</p></intro><level class="para1"><num>(a)</num><content><p>the transfer is made by a stock exchange nominee; and</p></content></level><level class="para1"><num>(b)</num><content><p>the maximum stamp duty chargeable on the instrument, apart from section 186 of the Finance Act 1996, would be 50p;</p></content></level><wrapUp><p>and in this subsection “stock exchange nominee” means a person designated for the purposes of section 127 of the <noteRef href="#m00150" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1976 as a nominee of The Stock Exchange by an order made by the Secretary of State under subsection (5) of that section.</p></wrapUp></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-189-2"><num>(2)</num><content><p>This section has effect in relation to an agreement to transfer securities if an instrument is executed on or after 1st July 1996 in pursuance of the agreement.</p></content></subsection></section><section eId="section-190"><num>190</num><heading>Transfers between associated bodies</heading><subsection eId="section-190-1"><num>(1)</num><content><p><mod>In section 88 of the <noteRef href="#m00151" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1986 (special cases) after subsection (1A) there shall be inserted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1B)</num><intro><p>An instrument on which stamp duty is not chargeable by virtue of section 42 of the <noteRef href="#m00152" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1930 or section 11 of the <noteRef href="#m00153" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act (Northern Ireland) 1954 (transfer between associated bodies corporate) shall be disregarded in construing section 87(4) and (5) above in any case where—</p></intro><level class="para1"><num>(a)</num><content><p>the property mentioned in section 42(2)(a) of the Finance Act 1930 or, as the case may be, section 11(2)(a) of the Finance Act (Northern Ireland) 1954 consists of chargeable securities of any particular kind acquired in the period of two years ending with the day on which the instrument was executed; and</p></content></level><level class="para1"><num>(b)</num><intro><p>the body corporate from which the conveyance or transfer there mentioned is effected acquired the chargeable securities—</p></intro><level class="para2"><num>(i)</num><content><p>in a transaction which was given effect by an instrument of transfer on which stamp duty was not chargeable by virtue of section 81 above;</p></content></level><level class="para2"><num>(ii)</num><content><p>in pursuance of an agreement to transfer securities as regards which section 87 above did not apply by virtue of section 89 below; or</p></content></level><level class="para2"><num>(iii)</num><content><p>in circumstances with regard to which the charge to stamp duty or stamp duty reserve tax was treated as not arising by virtue of regulations under section 116 or 117 of the <noteRef href="#m00154" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1991.</p></content></level></level></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-190-2"><num>(2)</num><content><p><mod>At the end of that section there shall be added—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(4)</num><content><p>For the purposes of subsection (1B) above, if the securities mentioned in paragraph (a) of that subsection cannot (apart from this subsection) be identified, securities shall be taken as follows, that is to say, securities of the same kind acquired later in the period of two years there mentioned (and not taken under this subsection for the purposes of any earlier instrument) shall be taken before securities acquired earlier in that period.</p></content></subsection><subsection><num>(5)</num><content><p>If, in a case where subsection (4) above applies, some, but not all, of the securities taken in accordance with that subsection were acquired as mentioned in paragraph (b) of subsection (1B) above by the body corporate mentioned in that paragraph, the stamp duty reserve tax chargeable under section 87 above by virtue of subsection (1B) above shall not exceed the tax that would have been so chargeable had the agreement to transfer the securities related only to such of the securities so taken as were so acquired.</p></content></subsection><subsection><num>(6)</num><content><p>Where a person enters into an agreement for securities to be transferred to him or his nominee, the securities shall be treated for the purposes of subsections (1B)(a) and (4) above as acquired by that person at the time when he enters into the agreement, unless the agreement is conditional, in which case they shall be taken to be acquired by him when the condition is satisfied.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-190-3"><num>(3)</num><content><p>This section has effect where the instrument on which stamp duty is not chargeable by virtue of section 42 of the <noteRef href="#m00155" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1930 or section 11 of the <noteRef href="#m00156" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act (Northern Ireland) 1954 is executed on or after 4th January 1996 in pursuance of an agreement to transfer securities made on or after that date.</p></content></subsection></section><section eId="section-191"><num>191</num><heading>Stock lending and collateral security arrangements</heading><subsection eId="section-191-1"><num>(1)</num><content><p><mod>After section 89A of the <noteRef href="#m00157" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1986 (exceptions from section 87 for public issues) there shall be inserted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>89B</num><heading>Section 87: exceptions for stock lending and collateral security arrangements</heading><subsection><num>(1)</num><intro><p>Where a person (P) has contracted to sell chargeable securities of a particular kind in the ordinary course of his business as a market maker in chargeable securities of that kind and, to enable him to fulfil the contract, he enters into an arrangement under which—</p></intro><level class="para1"><num>(a)</num><content><p>another person (Q) is to transfer chargeable securities to P or his nominee, and</p></content></level><level class="para1"><num>(b)</num><content><p>in return, chargeable securities of the same kind and amount are to be transferred (whether or not by P or his nominee) to Q or his nominee,</p></content></level><wrapUp><p>section 87 above shall not apply as regards an agreement to transfer chargeable securities which is made for the purpose of performing the obligation to transfer chargeable securities described in paragraph (a) or (b) above.</p></wrapUp></subsection><subsection><num>(2)</num><intro><p>Where the arrangement mentioned in subsection (1) above is also one under which—</p></intro><level class="para1"><num>(a)</num><content><p>an amount of chargeable securities of some other kind is to be transferred by P or his nominee to Q or his nominee by way of security for the performance of the obligation described in paragraph (b) of that subsection, and</p></content></level><level class="para1"><num>(b)</num><content><p>on performance of that obligation, the securities mentioned in paragraph (a) above, or chargeable securities of the same kind and amount as those securities, are to be transferred to P or his nominee,</p></content></level><wrapUp><p>section 87 above shall also not apply as regards an agreement to transfer chargeable securities which is made for the purpose of performing the obligation to transfer chargeable securities described in paragraph (a) or (b) above.</p></wrapUp></subsection><subsection><num>(3)</num><intro><p>Where, to enable Q to make the transfer to P or his nominee which is mentioned in paragraph (a) of subsection (1) above, Q enters into an arrangement under which—</p></intro><level class="para1"><num>(a)</num><content><p>another person (R) is to transfer chargeable securities to Q or his nominee, and</p></content></level><level class="para1"><num>(b)</num><content><p>in return, chargeable securities of the same kind and amount are to be transferred (whether or not by Q or his nominee) to R or his nominee,</p></content></level><wrapUp><p>section 87 above shall not apply as regards an agreement to transfer chargeable securities which is made for the purpose of performing the obligation to transfer chargeable securities described in paragraph (a) or (b) above.</p></wrapUp></subsection><subsection><num>(4)</num><intro><p>Where the arrangement mentioned in subsection (3) above is also one under which—</p></intro><level class="para1"><num>(a)</num><content><p>an amount of chargeable securities of some other kind is to be transferred by Q or his nominee to R or his nominee by way of security for the performance of the obligation described in paragraph (b) of that subsection, and</p></content></level><level class="para1"><num>(b)</num><content><p>on performance of that obligation, the securities mentioned in paragraph (a) above, or chargeable securities of the same kind and amount as those securities, are to be transferred to Q or his nominee,</p></content></level><wrapUp><p>section 87 above shall also not apply as regards an agreement to transfer chargeable securities which is made for the purpose of performing the obligation to transfer chargeable securities described in paragraph (a) or (b) above.</p></wrapUp></subsection><subsection><num>(5)</num><intro><p>For the purposes of this section a person is a market maker in chargeable securities of a particular kind if he—</p></intro><level class="para1"><num>(a)</num><content><p>holds himself out at all normal times in compliance with the rules of The Stock Exchange as willing to buy and sell chargeable securities of that kind at a price specified by him, and</p></content></level><level class="para1"><num>(b)</num><content><p>is recognised as doing so by The Stock Exchange.</p></content></level></subsection><subsection><num>(6)</num><content><p>The Treasury may by regulations provide that for subsection (5) above (as it has effect for the time being) there shall be substituted a subsection containing a different definition of a market maker for the purposes of this section.</p></content></subsection><subsection><num>(7)</num><content><p>Regulations under subsection (6) above shall apply in relation to any agreement to transfer chargeable securities in pursuance of an arrangement entered into on or after such day after 1st July 1996 as is specified in the regulations.</p></content></subsection><subsection><num>(8)</num><content><p>The power to make regulations under subsection (6) above shall be exercisable by statutory instrument subject to annulment in pursuance of a resolution of the House of Commons.</p></content></subsection></section></quotedStructure></mod></p></content></subsection><subsection eId="section-191-2"><num>(2)</num><content><p>This section applies in relation to agreements to transfer chargeable securities in pursuance of an arrangement entered into on or after 1st July 1996.</p></content></subsection></section><section eId="section-192"><num>192</num><heading>Repayment or cancellation of tax</heading><subsection eId="section-192-1"><num>(1)</num><content><p>In consequence of section 188(1) above, subsections (4), (5) and (8) of section 87 of the <noteRef href="#m00158" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1986 (exemption from stamp duty reserve tax where an instrument is executed etc) shall cease to have effect.</p></content></subsection><subsection eId="section-192-2"><num>(2)</num><content><p>In section 88 of that Act (which provides for instruments on which stamp duty is not chargeable by virtue of certain enactments to be disregarded for the purposes of section 87(4) and (5)) in subsections (1), (1A) and (1B) for “section 87(4) and (5) above” there shall be substituted “section 92(1A) and (1B) below”.</p></content></subsection><subsection eId="section-192-3"><num>(3)</num><intro><p>In section 92 of that Act (repayment or cancellation of tax) in subsection (1) (which refers to the conditions in section 87(4) and (5))—</p></intro><level class="para1" eId="section-192-3-a"><num>(a)</num><content><p>for “section 87(4) and (5)” there shall be substituted “subsections (1A) and (1B) below”; and</p></content></level><level class="para1" eId="section-192-3-b"><num>(b)</num><content><p>for “the following provisions of this section shall apply” there shall be substituted “subsections (2) to (4A) of this section shall apply”.</p></content></level></subsection><subsection eId="section-192-4"><num>(4)</num><content><p><mod>After that subsection, there shall be inserted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1A)</num><content><p>The first condition is that an instrument is (or instruments are) executed in pursuance of the agreement and the instrument transfers (or the instruments between them transfer) to B or, as the case may be, to his nominee all the chargeable securities to which the agreement relates.</p></content></subsection><subsection><num>(1B)</num><content><p>The second condition is that the instrument (or each instrument) transferring the chargeable securities to which the agreement relates is duly stamped in accordance with the enactments relating to stamp duty if it is an instrument which, under those enactments, is chargeable with stamp duty or otherwise required to be stamped.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-192-5"><num>(5)</num><content><p><mod>At the end of that section there shall be added—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(6)</num><content><p>In this section “the enactments relating to stamp duty” means the <noteRef href="#m00159" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Stamp Act 1891 and any enactment which amends or is required to be construed together with that Act.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-192-6"><num>(6)</num><intro><p>The amendments made by this section shall have effect in relation to an agreement to transfer securities if—</p></intro><level class="para1" eId="section-192-6-a"><num>(a)</num><content><p>the agreement is conditional and the condition is satisfied on or after 1st July 1996; or</p></content></level><level class="para1" eId="section-192-6-b"><num>(b)</num><content><p>the agreement is not conditional and is made on or after that date.</p></content></level></subsection></section><section eId="section-193"><num>193</num><heading>Depositary receipts</heading><subsection eId="section-193-1"><num>(1)</num><content><p>Section 93 of the Finance Act 1986 (depositary receipts) shall be amended in accordance with the following provisions of this section.</p></content></subsection><subsection eId="section-193-2"><num>(2)</num><intro><p>In subsection (1) (charge to stamp duty reserve tax where certain things are done in pursuance of an arrangement) in paragraph (b) (transfer or issue to, or appropriation by, a person falling within subsection (3))—</p></intro><level class="para1" eId="section-193-2-a"><num>(a)</num><content><p>after “transferred or issued to” there shall be inserted “the person mentioned in paragraph (a) above or”; and</p></content></level><level class="para1" eId="section-193-2-b"><num>(b)</num><content><p>for “such a person” there shall be substituted “the person mentioned in paragraph (a) above or a person falling within subsection (3) below”.</p></content></level></subsection><subsection eId="section-193-3"><num>(3)</num><content><p>In subsection (6) (payment by instalments) in paragraph (d) (instrument received by person falling within subsection (3)) for “subsection (3)” there shall be substituted “subsection (2) or (3)”.</p></content></subsection><subsection eId="section-193-4"><num>(4)</num><intro><p>This section has effect—</p></intro><level class="para1" eId="section-193-4-a"><num>(a)</num><content><p>so far as relating to the charge to tax under section 93(1) of the <noteRef href="#m00160" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1986, where securities are transferred, issued or appropriated on or after 1st July 1996 (whenever the arrangement was made);</p></content></level><level class="para1" eId="section-193-4-b"><num>(b)</num><content><p>so far as relating to the charge to tax under section 93(10) of that Act, in relation to instalments payable on or after 1st July 1996.</p></content></level></subsection></section><section eId="section-194"><num>194</num><heading>Rates of charge expressed as percentages</heading><subsection eId="section-194-1"><num>(1)</num><content><p>In section 87 of the Finance Act 1986, in subsection (6) (which specifies the rate at which stamp duty reserve tax under that section is charged) for “50p for every £100 or part of £100” there shall be substituted “0.5 per cent.”</p></content></subsection><subsection eId="section-194-2"><num>(2)</num><intro><p>In section 93 of that Act (depositary receipts)—</p></intro><level class="para1" eId="section-194-2-a"><num>(a)</num><content><p>in subsection (4) (rate of charge) for “£1.50 for every £100 or part of £100” there shall be substituted “1.5 per cent.”;</p></content></level><level class="para1" eId="section-194-2-b"><num>(b)</num><content><p>in subsection (5) (which applies subsection (4) with modifications in certain cases where the securities are transferred by a chargeable instrument) for the words from “as if “£1.50” read” onwards there shall be substituted “as if “1.5 per cent.” read “1 per cent.””; and</p></content></level><level class="para1" eId="section-194-2-c"><num>(c)</num><content><p>in subsection (10) (payment in instalments etc) in paragraph (b), for “£1.50 for every £100 or part of £100” there shall be substituted “1.5 per cent. of the amount”.</p></content></level></subsection><subsection eId="section-194-3"><num>(3)</num><content><p>Section 94(8) of that Act (which defines “the day of The Stock Exchange reforms” for the purposes of section 93(5) and which becomes unnecessary in consequence of the amendment made by subsection (2)(b) above) shall be omitted.</p></content></subsection><subsection eId="section-194-4"><num>(4)</num><intro><p>In section 96 of that Act (clearance services)—</p></intro><level class="para1" eId="section-194-4-a"><num>(a)</num><content><p>in subsection (2) (rate of charge) for “£1.50 for every £100 or part of £100” there shall be substituted “1.5 per cent.”;</p></content></level><level class="para1" eId="section-194-4-b"><num>(b)</num><content><p>in subsection (3) (which applies subsection (2) with modifications in certain cases where the securities are transferred by a chargeable instrument) for the words from “as if “£1.50” read” onwards there shall be substituted “as if “1.5 per cent.” read “1 per cent.””; and</p></content></level><level class="para1" eId="section-194-4-c"><num>(c)</num><content><p>in subsection (8) (payment in instalments etc) in paragraph (b), for “£1.50 for every £100 or part of £100” there shall be substituted “1.5 per cent. of the amount”.</p></content></level></subsection><subsection eId="section-194-5"><num>(5)</num><content><p>Section 96(12) of that Act (which defines “the day of The Stock Exchange reforms” for the purposes of subsection (3) and which becomes unnecessary in consequence of the amendment made by subsection (4)(b) above) shall be omitted.</p></content></subsection><subsection eId="section-194-6"><num>(6)</num><content><p><mod>In section 99 of that Act (interpretation) after subsection (12) there shall be added—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(13)</num><content><p>Where the calculation of any tax in accordance with the provisions of this Part results in an amount which is not a multiple of one penny, the amount so calculated shall be rounded to the nearest penny, taking any ½p as nearest to the next whole penny above.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-194-7"><num>(7)</num><intro><p>Subsections (1) to (5) above have effect in accordance with the following provisions of this subsection, that is to say—</p></intro><level class="para1" eId="section-194-7-a"><num>(a)</num><intro><p>in relation to the charge to tax under section 87 of the <noteRef href="#m00161" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1986, subsection (1) above applies where—</p></intro><level class="para2" eId="section-194-7-a-i"><num>(i)</num><content><p>the agreement to transfer is conditional and the condition is satisfied on or after 1st July 1996; or</p></content></level><level class="para2" eId="section-194-7-a-ii"><num>(ii)</num><content><p>the agreement is not conditional and is made on or after 1st July 1996;</p></content></level></level><level class="para1" eId="section-194-7-b"><num>(b)</num><content><p>in relation to the charge to tax under section 93(1) of that Act, paragraphs (a) and (b) of subsection (2) above apply where securities are transferred, issued or appropriated on or after 1st July 1996 (whenever the arrangement was made) and subsection (3) above has effect accordingly;</p></content></level><level class="para1" eId="section-194-7-c"><num>(c)</num><content><p>in relation to the charge to tax under section 93(10) of that Act, paragraph (c) of subsection (2) above applies in relation to instalments payable on or after 1st July 1996;</p></content></level><level class="para1" eId="section-194-7-d"><num>(d)</num><content><p>in relation to the charge to tax under section 96(1) of that Act, paragraphs (a) and (b) of subsection (4) above apply where securities are transferred or issued on or after 1st July 1996 (whenever the arrangement was made) and subsection (5) above has effect accordingly;</p></content></level><level class="para1" eId="section-194-7-e"><num>(e)</num><content><p>in relation to the charge to tax under section 96(8) of that Act, paragraph (c) of subsection (4) above applies in relation to instalments payable on or after 1st July 1996.</p></content></level></subsection></section><section eId="section-195"><num>195</num><heading>Regulations concerning administration: sub-delegation to the Board</heading><content><p><mod>In section 98 of the <noteRef href="#m00162" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1986 (Treasury regulations with respect to administration etc) after subsection (1) there shall be inserted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1A)</num><content><p>The power conferred on the Treasury by subsection (1) above includes power to make provision conferring or imposing on the Board functions which involve the exercise of a discretion.</p></content></subsection></quotedStructure></mod></p></content></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-VI-crossheading-clearance-services"><heading>Clearance services</heading><section eId="section-196"><num>196</num><heading>Election by operator for alternative system of charge</heading><subsection eId="section-196-1"><num>(1)</num><content><p>In section 70 of the Finance Act 1986 (clearance services) in subsection (1) (which, subject to subsection (9), makes provision with respect to stamp duty on transfers into clearance services) after “Subject to subsection (9)” there shall be inserted “and section 97A”.</p></content></subsection><subsection eId="section-196-2"><num>(2)</num><content><p>In section 96 of that Act (clearance services) in subsection (1) (which, subject to subsection (5) and section 97, provides for stamp duty reserve tax to be chargeable on transfers into clearance services) for “section 97” there shall be substituted “sections 97 and 97A”.</p></content></subsection><subsection eId="section-196-3"><num>(3)</num><content><p><mod>After section 97 of that Act (exceptions) there shall be inserted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>97A</num><heading>Clearance services: election for alternative system of charge</heading><subsection><num>(1)</num><content><p>A person whose business is or includes the provision of clearance services for the purchase and sale of chargeable securities or relevant securities (an “operator”) may, with the approval of the Board, elect that stamp duty and stamp duty reserve tax shall be chargeable in accordance with this section in connection with those clearance services.</p></content></subsection><subsection><num>(2)</num><intro><p>An election under subsection (1) above—</p></intro><level class="para1"><num>(a)</num><content><p>shall come into force on such date as may be notified to the operator by the Board in giving their approval; and</p></content></level><level class="para1"><num>(b)</num><content><p>shall continue in force unless and until it is terminated in accordance with the following provisions of this section.</p></content></level></subsection><subsection><num>(3)</num><intro><p>If and so long as an election under subsection (1) above is in force, stamp duty or stamp duty reserve tax (as the case may require) shall, in connection with the clearance services to which the election relates, be chargeable in relation to—</p></intro><level class="para1"><num>(a)</num><content><p>a transfer or issue falling within section 70(1) or 96(1) above,</p></content></level><level class="para1"><num>(b)</num><content><p>an agreement falling within section 90(4) above by virtue of section 96(1) above, or</p></content></level><level class="para1"><num>(c)</num><content><p>an agreement falling within section 90(5) above,</p></content></level><wrapUp><p>as it would be chargeable apart from sections 70, 90(4) and (5) and 96 above.</p></wrapUp></subsection><subsection><num>(4)</num><content><p>Where stamp duty or stamp duty reserve tax is chargeable by virtue of subsection (3) above in relation to a transfer, issue or agreement, sections 70, 90(4) and (5) and 96 above shall not have effect in relation to that transfer, issue or agreement.</p></content></subsection><subsection><num>(5)</num><content><p>Nothing in subsection (3) or (4) above affects the application of section 70 or 96 above in relation to a transfer falling within section 70(1) or 96(1) above by the operator or his nominee to, or to a nominee of, another operator in relation to whom no election under subsection (1) above is for the time being in force.</p></content></subsection><subsection><num>(6)</num><intro><p>The Board may require the operator, as a condition of the approval of his election under subsection (1) above, to make and maintain such arrangements as they may consider satisfactory—</p></intro><level class="para1"><num>(a)</num><content><p>for the collection of stamp duty reserve tax chargeable in accordance with this section, and</p></content></level><level class="para1"><num>(b)</num><content><p>for complying, or securing compliance, with the provisions of this Part and of regulations under section 98 below, so far as relating to such tax.</p></content></level></subsection><subsection><num>(7)</num><content><p>Where the operator is not resident in the United Kingdom and has no branch or agency in the United Kingdom, the Board may require him, as a condition of the approval of his election under subsection (1) above, to appoint and, so long as the election remains in force, maintain a tax representative.</p></content></subsection><subsection><num>(8)</num><intro><p>A person shall not be an operator’s tax representative under this section unless that person—</p></intro><level class="para1"><num>(a)</num><content><p>has a business establishment in the United Kingdom, and</p></content></level><level class="para1"><num>(b)</num><content><p>is approved by the Board.</p></content></level></subsection><subsection><num>(9)</num><intro><p>A person who is at any time an operator’s tax representative under this section—</p></intro><level class="para1"><num>(a)</num><content><p>shall be entitled to act on the operator’s behalf for the purposes of stamp duty and stamp duty reserve tax in connection with the clearance services to which the operator’s election under subsection (1) above relates,</p></content></level><level class="para1"><num>(b)</num><content><p>shall secure (where appropriate by acting on the operator’s behalf) the operator’s compliance with and discharge of the obligations and liabilities to which the operator is subject, in connection with the clearance services to which the operator’s election under subsection (1) above relates, by virtue of legislation relating to stamp duty or stamp duty reserve tax (including obligations and liabilities arising before he became the operator’s tax representative), and</p></content></level><level class="para1"><num>(c)</num><content><p>shall be personally liable in respect of any failure to secure the operator’s compliance with or discharge of any such obligation or liability, and in respect of anything done for purposes connected with acting on the operator’s behalf,</p></content></level><wrapUp><p>as if the obligations and liabilities imposed on the operator were imposed jointly and severally on the tax representative and the operator.</p></wrapUp></subsection><subsection><num>(10)</num><intro><p>An election under subsection (1) above may be terminated—</p></intro><level class="para1"><num>(a)</num><content><p>by not less than thirty days' notice given by the operator to the Board or by the Board to the operator; or</p></content></level><level class="para1"><num>(b)</num><intro><p>if there is or has been a breach of a condition of the approval of the election imposed by virtue of subsection (6) or (7) above, by a notice—</p></intro><level class="para2"><num>(i)</num><content><p>given by the Board to the operator,</p></content></level><level class="para2"><num>(ii)</num><content><p>taking effect on the giving of the notice or at such later time as may be specified in the notice, and</p></content></level><level class="para2"><num>(iii)</num><content><p>stating that it is given by reason of the breach of condition.</p></content></level></level></subsection><subsection><num>(11)</num><content><p>Where an election under subsection (1) above is terminated, section 96 above shall have effect as if chargeable securities of the same amounts and kinds as are, immediately before the termination, held by the operator or his nominee in connection with the provision of the clearance services, had, immediately after the termination, been transferred to the operator or, as the case may be, to the nominee by a transfer falling within subsection (1) of that section.</p></content></subsection><subsection><num>(12)</num><content><p>In this section “relevant securities” has the same meaning as in section 70 above.</p></content></subsection></section></quotedStructure></mod></p></content></subsection><subsection eId="section-196-4"><num>(4)</num><content><p>Section 97(2) of that Act (no charge to tax under section 96 on transfers to a stock exchange nominee or to, or to a nominee of, a recognised investment exchange or recognised clearing house) shall not have effect in relation to any transfer effected on or after 1st July 1996.</p></content></subsection><subsection eId="section-196-5"><num>(5)</num><content><p>In section 99(10) of that Act (interpretation of “chargeable securities” in sections 93, 94 and 96) for “and 96” there shall be substituted “, 96 and 97A”.</p></content></subsection><subsection eId="section-196-6"><num>(6)</num><content><p>Subsections (1), (2), (3) and (5) above shall come into force on 1st July 1996.</p></content></subsection></section></hcontainer></part>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="part-VI-crossheading-stamp-duty"><heading>Stamp duty</heading><section eId="section-186"><num>186</num><heading>Transfers of securities to members of electronic transfer systems etc</heading><subsection eId="section-186-1"><num>(1)</num><content><p>Stamp duty shall not be chargeable on an instrument effecting a transfer of securities if the transferee is a member of an electronic transfer system and the instrument is in a form which will, in accordance with the rules of the system, ensure that the securities are changed from being held in certificated form to being held in uncertificated form so that title to them may become transferable by means of the system.</p></content></subsection><subsection eId="section-186-2"><num>(2)</num><intro><p>In this section—</p></intro><hcontainer name="definition"><content><p>“certificated form” has the same meaning as in the relevant regulations;</p></content></hcontainer><hcontainer name="definition"><content><p>“electronic transfer system” means a system and procedures which, in accordance with the relevant regulations, enable title to securities to be evidenced and transferred without a written instrument;</p></content></hcontainer><hcontainer name="definition"><content><p>“member”, in relation to an electronic transfer system, means a person who is permitted by the operator of the system to transfer by means of the system title to securities held by him in uncertificated form;</p></content></hcontainer><hcontainer name="definition"><content><p>“operator” means a person approved by the Treasury under the relevant regulations as operator of an electronic transfer system;</p></content></hcontainer><hcontainer name="definition"><content><p>“the relevant regulations” means regulations under section 207 of the <noteRef href="#m00144" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Companies Act 1989 (transfer without written instrument);</p></content></hcontainer><hcontainer name="definition"><content><p>“securities” means stock or marketable securities;</p></content></hcontainer><hcontainer name="definition"><content><p>“uncertificated form” has the same meaning as it has in the relevant regulations.</p></content></hcontainer></subsection><subsection eId="section-186-3"><num>(3)</num><content><p>This section applies in relation to instruments executed on or after 1st July 1996.</p></content></subsection><subsection eId="section-186-4"><num>(4)</num><content><p>This section shall be construed as one with the <noteRef href="#m00145" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Stamp Act 1891.</p></content></subsection></section></hcontainer>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-186"><num>186</num><heading>Transfers of securities to members of electronic transfer systems etc</heading><subsection eId="section-186-1"><num>(1)</num><content><p>Stamp duty shall not be chargeable on an instrument effecting a transfer of securities if the transferee is a member of an electronic transfer system and the instrument is in a form which will, in accordance with the rules of the system, ensure that the securities are changed from being held in certificated form to being held in uncertificated form so that title to them may become transferable by means of the system.</p></content></subsection><subsection eId="section-186-2"><num>(2)</num><intro><p>In this section—</p></intro><hcontainer name="definition"><content><p>“certificated form” has the same meaning as in the relevant regulations;</p></content></hcontainer><hcontainer name="definition"><content><p>“electronic transfer system” means a system and procedures which, in accordance with the relevant regulations, enable title to securities to be evidenced and transferred without a written instrument;</p></content></hcontainer><hcontainer name="definition"><content><p>“member”, in relation to an electronic transfer system, means a person who is permitted by the operator of the system to transfer by means of the system title to securities held by him in uncertificated form;</p></content></hcontainer><hcontainer name="definition"><content><p>“operator” means a person approved by the Treasury under the relevant regulations as operator of an electronic transfer system;</p></content></hcontainer><hcontainer name="definition"><content><p>“the relevant regulations” means regulations under section 207 of the <noteRef href="#m00144" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Companies Act 1989 (transfer without written instrument);</p></content></hcontainer><hcontainer name="definition"><content><p>“securities” means stock or marketable securities;</p></content></hcontainer><hcontainer name="definition"><content><p>“uncertificated form” has the same meaning as it has in the relevant regulations.</p></content></hcontainer></subsection><subsection eId="section-186-3"><num>(3)</num><content><p>This section applies in relation to instruments executed on or after 1st July 1996.</p></content></subsection><subsection eId="section-186-4"><num>(4)</num><content><p>This section shall be construed as one with the <noteRef href="#m00145" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Stamp Act 1891.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-186-1"><num>(1)</num><content><p>Stamp duty shall not be chargeable on an instrument effecting a transfer of securities if the transferee is a member of an electronic transfer system and the instrument is in a form which will, in accordance with the rules of the system, ensure that the securities are changed from being held in certificated form to being held in uncertificated form so that title to them may become transferable by means of the system.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-186-2"><num>(2)</num><intro><p>In this section—</p></intro><hcontainer name="definition"><content><p>“certificated form” has the same meaning as in the relevant regulations;</p></content></hcontainer><hcontainer name="definition"><content><p>“electronic transfer system” means a system and procedures which, in accordance with the relevant regulations, enable title to securities to be evidenced and transferred without a written instrument;</p></content></hcontainer><hcontainer name="definition"><content><p>“member”, in relation to an electronic transfer system, means a person who is permitted by the operator of the system to transfer by means of the system title to securities held by him in uncertificated form;</p></content></hcontainer><hcontainer name="definition"><content><p>“operator” means a person approved by the Treasury under the relevant regulations as operator of an electronic transfer system;</p></content></hcontainer><hcontainer name="definition"><content><p>“the relevant regulations” means regulations under section 207 of the <noteRef href="#m00144" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Companies Act 1989 (transfer without written instrument);</p></content></hcontainer><hcontainer name="definition"><content><p>“securities” means stock or marketable securities;</p></content></hcontainer><hcontainer name="definition"><content><p>“uncertificated form” has the same meaning as it has in the relevant regulations.</p></content></hcontainer></subsection>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="definition"><content><p>“certificated form” has the same meaning as in the relevant regulations;</p></content></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="definition"><content><p>“member”, in relation to an electronic transfer system, means a person who is permitted by the operator of the system to transfer by means of the system title to securities held by him in uncertificated form;</p></content></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="definition"><content><p>“securities” means stock or marketable securities;</p></content></hcontainer>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-186-3"><num>(3)</num><content><p>This section applies in relation to instruments executed on or after 1st July 1996.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-186-4"><num>(4)</num><content><p>This section shall be construed as one with the <noteRef href="#m00145" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Stamp Act 1891.</p></content></subsection>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="part-VI-crossheading-stamp-duty-reserve-tax"><heading>Stamp duty reserve tax</heading><section eId="section-187"><num>187</num><heading>Territorial scope of the tax</heading><subsection eId="section-187-1"><num>(1)</num><content><p><mod>In section 86 of the <noteRef href="#m00146" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1986 (introduction) after subsection (3) there shall be added—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(4)</num><intro><p>Stamp duty reserve tax shall be chargeable in accordance with the provisions of this Part of this Act—</p></intro><level class="para1"><num>(a)</num><content><p>whether the agreement, transfer, issue or appropriation in question is made or effected in the United Kingdom or elsewhere, and</p></content></level><level class="para1"><num>(b)</num><content><p>whether or not any party is resident or situate in any part of the United Kingdom.</p></content></level></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-187-2"><num>(2)</num><intro><p>The amendment made by subsection (1) above shall have effect—</p></intro><level class="para1" eId="section-187-2-a"><num>(a)</num><intro><p>in relation to an agreement, if—</p></intro><level class="para2" eId="section-187-2-a-i"><num>(i)</num><content><p>the agreement is conditional and the condition is satisfied on or after 1st July 1996; or</p></content></level><level class="para2" eId="section-187-2-a-ii"><num>(ii)</num><content><p>the agreement is not conditional and is made on or after that date; and</p></content></level></level><level class="para1" eId="section-187-2-b"><num>(b)</num><content><p>in relation to a transfer, issue or appropriation made or effected on or after that date.</p></content></level></subsection></section><section eId="section-188"><num>188</num><heading>Removal of the two month period</heading><subsection eId="section-188-1"><num>(1)</num><intro><p>In section 87 of the <noteRef href="#m00147" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1986 (the principal charge) in subsection (2) (tax charged on the expiry of the period of two months beginning with the relevant day unless the first and second conditions are fulfilled before that period expires) the following shall be omitted—</p></intro><level class="para1" eId="section-188-1-a"><num>(a)</num><content><p>the words “the expiry of the period of two months beginning with”, and</p></content></level><level class="para1" eId="section-188-1-b"><num>(b)</num><content><p>the words from “unless” to the end.</p></content></level></subsection><subsection eId="section-188-2"><num>(2)</num><content><p><mod>In section 88 of that Act (special cases) in subsection (1) (which provides for instruments on which stamp duty is not chargeable by virtue of certain enactments to be disregarded for the purposes of section 87(4) and (5)) before paragraph (a) there shall be inserted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(aa)</num><content><p>section 65(1) of the <noteRef href="#m00148" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1963 (renounceable letters of allotment etc),</p></content></level><level class="para1"><num>(ab)</num><content><p>section 14(1) of the <noteRef href="#m00149" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act (Northern Ireland) 1963 (renounceable letters of allotment etc.),</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-188-3"><num>(3)</num><content><p>Subsections (2) and (3) of that section (which are superseded by subsection (2) above) shall cease to have effect.</p></content></subsection><subsection eId="section-188-4"><num>(4)</num><intro><p>In section 92(1) of that Act (repayment or cancellation of tax where the conditions in section 87(4) and (5) are shown to have been fulfilled after the expiry of the period of two months beginning with the relevant day but before the expiry of six years so beginning)—</p></intro><level class="para1" eId="section-188-4-a"><num>(a)</num><content><p>for “after the expiry of the period of two months (beginning with the relevant day, as defined in section 87(3))” there shall be substituted “on or after the relevant day (as defined in section 87(3))”; and</p></content></level><level class="para1" eId="section-188-4-b"><num>(b)</num><content><p>for “(so beginning)” there shall be substituted “(beginning with that day)”.</p></content></level></subsection><subsection eId="section-188-5"><num>(5)</num><intro><p>The amendments made by this section shall have effect in relation to an agreement to transfer securities if—</p></intro><level class="para1" eId="section-188-5-a"><num>(a)</num><content><p>the agreement is conditional and the condition is satisfied on or after 1st July 1996; or</p></content></level><level class="para1" eId="section-188-5-b"><num>(b)</num><content><p>the agreement is not conditional and is made on or after that date.</p></content></level></subsection></section><section eId="section-189"><num>189</num><heading>Transfers to members of electronic transfer systems etc</heading><subsection eId="section-189-1"><num>(1)</num><content><p><mod>In section 88 of the Finance Act 1986 (special cases) after subsection (1) there shall be inserted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1A)</num><intro><p>An instrument on which stamp duty is not chargeable by virtue of section 186 of the Finance Act 1996 (transfers of securities to members of electronic transfer systems etc) shall be disregarded in construing section 87(4) and (5) above unless—</p></intro><level class="para1"><num>(a)</num><content><p>the transfer is made by a stock exchange nominee; and</p></content></level><level class="para1"><num>(b)</num><content><p>the maximum stamp duty chargeable on the instrument, apart from section 186 of the Finance Act 1996, would be 50p;</p></content></level><wrapUp><p>and in this subsection “stock exchange nominee” means a person designated for the purposes of section 127 of the <noteRef href="#m00150" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1976 as a nominee of The Stock Exchange by an order made by the Secretary of State under subsection (5) of that section.</p></wrapUp></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-189-2"><num>(2)</num><content><p>This section has effect in relation to an agreement to transfer securities if an instrument is executed on or after 1st July 1996 in pursuance of the agreement.</p></content></subsection></section><section eId="section-190"><num>190</num><heading>Transfers between associated bodies</heading><subsection eId="section-190-1"><num>(1)</num><content><p><mod>In section 88 of the <noteRef href="#m00151" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1986 (special cases) after subsection (1A) there shall be inserted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1B)</num><intro><p>An instrument on which stamp duty is not chargeable by virtue of section 42 of the <noteRef href="#m00152" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1930 or section 11 of the <noteRef href="#m00153" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act (Northern Ireland) 1954 (transfer between associated bodies corporate) shall be disregarded in construing section 87(4) and (5) above in any case where—</p></intro><level class="para1"><num>(a)</num><content><p>the property mentioned in section 42(2)(a) of the Finance Act 1930 or, as the case may be, section 11(2)(a) of the Finance Act (Northern Ireland) 1954 consists of chargeable securities of any particular kind acquired in the period of two years ending with the day on which the instrument was executed; and</p></content></level><level class="para1"><num>(b)</num><intro><p>the body corporate from which the conveyance or transfer there mentioned is effected acquired the chargeable securities—</p></intro><level class="para2"><num>(i)</num><content><p>in a transaction which was given effect by an instrument of transfer on which stamp duty was not chargeable by virtue of section 81 above;</p></content></level><level class="para2"><num>(ii)</num><content><p>in pursuance of an agreement to transfer securities as regards which section 87 above did not apply by virtue of section 89 below; or</p></content></level><level class="para2"><num>(iii)</num><content><p>in circumstances with regard to which the charge to stamp duty or stamp duty reserve tax was treated as not arising by virtue of regulations under section 116 or 117 of the <noteRef href="#m00154" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1991.</p></content></level></level></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-190-2"><num>(2)</num><content><p><mod>At the end of that section there shall be added—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(4)</num><content><p>For the purposes of subsection (1B) above, if the securities mentioned in paragraph (a) of that subsection cannot (apart from this subsection) be identified, securities shall be taken as follows, that is to say, securities of the same kind acquired later in the period of two years there mentioned (and not taken under this subsection for the purposes of any earlier instrument) shall be taken before securities acquired earlier in that period.</p></content></subsection><subsection><num>(5)</num><content><p>If, in a case where subsection (4) above applies, some, but not all, of the securities taken in accordance with that subsection were acquired as mentioned in paragraph (b) of subsection (1B) above by the body corporate mentioned in that paragraph, the stamp duty reserve tax chargeable under section 87 above by virtue of subsection (1B) above shall not exceed the tax that would have been so chargeable had the agreement to transfer the securities related only to such of the securities so taken as were so acquired.</p></content></subsection><subsection><num>(6)</num><content><p>Where a person enters into an agreement for securities to be transferred to him or his nominee, the securities shall be treated for the purposes of subsections (1B)(a) and (4) above as acquired by that person at the time when he enters into the agreement, unless the agreement is conditional, in which case they shall be taken to be acquired by him when the condition is satisfied.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-190-3"><num>(3)</num><content><p>This section has effect where the instrument on which stamp duty is not chargeable by virtue of section 42 of the <noteRef href="#m00155" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1930 or section 11 of the <noteRef href="#m00156" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act (Northern Ireland) 1954 is executed on or after 4th January 1996 in pursuance of an agreement to transfer securities made on or after that date.</p></content></subsection></section><section eId="section-191"><num>191</num><heading>Stock lending and collateral security arrangements</heading><subsection eId="section-191-1"><num>(1)</num><content><p><mod>After section 89A of the <noteRef href="#m00157" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1986 (exceptions from section 87 for public issues) there shall be inserted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>89B</num><heading>Section 87: exceptions for stock lending and collateral security arrangements</heading><subsection><num>(1)</num><intro><p>Where a person (P) has contracted to sell chargeable securities of a particular kind in the ordinary course of his business as a market maker in chargeable securities of that kind and, to enable him to fulfil the contract, he enters into an arrangement under which—</p></intro><level class="para1"><num>(a)</num><content><p>another person (Q) is to transfer chargeable securities to P or his nominee, and</p></content></level><level class="para1"><num>(b)</num><content><p>in return, chargeable securities of the same kind and amount are to be transferred (whether or not by P or his nominee) to Q or his nominee,</p></content></level><wrapUp><p>section 87 above shall not apply as regards an agreement to transfer chargeable securities which is made for the purpose of performing the obligation to transfer chargeable securities described in paragraph (a) or (b) above.</p></wrapUp></subsection><subsection><num>(2)</num><intro><p>Where the arrangement mentioned in subsection (1) above is also one under which—</p></intro><level class="para1"><num>(a)</num><content><p>an amount of chargeable securities of some other kind is to be transferred by P or his nominee to Q or his nominee by way of security for the performance of the obligation described in paragraph (b) of that subsection, and</p></content></level><level class="para1"><num>(b)</num><content><p>on performance of that obligation, the securities mentioned in paragraph (a) above, or chargeable securities of the same kind and amount as those securities, are to be transferred to P or his nominee,</p></content></level><wrapUp><p>section 87 above shall also not apply as regards an agreement to transfer chargeable securities which is made for the purpose of performing the obligation to transfer chargeable securities described in paragraph (a) or (b) above.</p></wrapUp></subsection><subsection><num>(3)</num><intro><p>Where, to enable Q to make the transfer to P or his nominee which is mentioned in paragraph (a) of subsection (1) above, Q enters into an arrangement under which—</p></intro><level class="para1"><num>(a)</num><content><p>another person (R) is to transfer chargeable securities to Q or his nominee, and</p></content></level><level class="para1"><num>(b)</num><content><p>in return, chargeable securities of the same kind and amount are to be transferred (whether or not by Q or his nominee) to R or his nominee,</p></content></level><wrapUp><p>section 87 above shall not apply as regards an agreement to transfer chargeable securities which is made for the purpose of performing the obligation to transfer chargeable securities described in paragraph (a) or (b) above.</p></wrapUp></subsection><subsection><num>(4)</num><intro><p>Where the arrangement mentioned in subsection (3) above is also one under which—</p></intro><level class="para1"><num>(a)</num><content><p>an amount of chargeable securities of some other kind is to be transferred by Q or his nominee to R or his nominee by way of security for the performance of the obligation described in paragraph (b) of that subsection, and</p></content></level><level class="para1"><num>(b)</num><content><p>on performance of that obligation, the securities mentioned in paragraph (a) above, or chargeable securities of the same kind and amount as those securities, are to be transferred to Q or his nominee,</p></content></level><wrapUp><p>section 87 above shall also not apply as regards an agreement to transfer chargeable securities which is made for the purpose of performing the obligation to transfer chargeable securities described in paragraph (a) or (b) above.</p></wrapUp></subsection><subsection><num>(5)</num><intro><p>For the purposes of this section a person is a market maker in chargeable securities of a particular kind if he—</p></intro><level class="para1"><num>(a)</num><content><p>holds himself out at all normal times in compliance with the rules of The Stock Exchange as willing to buy and sell chargeable securities of that kind at a price specified by him, and</p></content></level><level class="para1"><num>(b)</num><content><p>is recognised as doing so by The Stock Exchange.</p></content></level></subsection><subsection><num>(6)</num><content><p>The Treasury may by regulations provide that for subsection (5) above (as it has effect for the time being) there shall be substituted a subsection containing a different definition of a market maker for the purposes of this section.</p></content></subsection><subsection><num>(7)</num><content><p>Regulations under subsection (6) above shall apply in relation to any agreement to transfer chargeable securities in pursuance of an arrangement entered into on or after such day after 1st July 1996 as is specified in the regulations.</p></content></subsection><subsection><num>(8)</num><content><p>The power to make regulations under subsection (6) above shall be exercisable by statutory instrument subject to annulment in pursuance of a resolution of the House of Commons.</p></content></subsection></section></quotedStructure></mod></p></content></subsection><subsection eId="section-191-2"><num>(2)</num><content><p>This section applies in relation to agreements to transfer chargeable securities in pursuance of an arrangement entered into on or after 1st July 1996.</p></content></subsection></section><section eId="section-192"><num>192</num><heading>Repayment or cancellation of tax</heading><subsection eId="section-192-1"><num>(1)</num><content><p>In consequence of section 188(1) above, subsections (4), (5) and (8) of section 87 of the <noteRef href="#m00158" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1986 (exemption from stamp duty reserve tax where an instrument is executed etc) shall cease to have effect.</p></content></subsection><subsection eId="section-192-2"><num>(2)</num><content><p>In section 88 of that Act (which provides for instruments on which stamp duty is not chargeable by virtue of certain enactments to be disregarded for the purposes of section 87(4) and (5)) in subsections (1), (1A) and (1B) for “section 87(4) and (5) above” there shall be substituted “section 92(1A) and (1B) below”.</p></content></subsection><subsection eId="section-192-3"><num>(3)</num><intro><p>In section 92 of that Act (repayment or cancellation of tax) in subsection (1) (which refers to the conditions in section 87(4) and (5))—</p></intro><level class="para1" eId="section-192-3-a"><num>(a)</num><content><p>for “section 87(4) and (5)” there shall be substituted “subsections (1A) and (1B) below”; and</p></content></level><level class="para1" eId="section-192-3-b"><num>(b)</num><content><p>for “the following provisions of this section shall apply” there shall be substituted “subsections (2) to (4A) of this section shall apply”.</p></content></level></subsection><subsection eId="section-192-4"><num>(4)</num><content><p><mod>After that subsection, there shall be inserted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1A)</num><content><p>The first condition is that an instrument is (or instruments are) executed in pursuance of the agreement and the instrument transfers (or the instruments between them transfer) to B or, as the case may be, to his nominee all the chargeable securities to which the agreement relates.</p></content></subsection><subsection><num>(1B)</num><content><p>The second condition is that the instrument (or each instrument) transferring the chargeable securities to which the agreement relates is duly stamped in accordance with the enactments relating to stamp duty if it is an instrument which, under those enactments, is chargeable with stamp duty or otherwise required to be stamped.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-192-5"><num>(5)</num><content><p><mod>At the end of that section there shall be added—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(6)</num><content><p>In this section “the enactments relating to stamp duty” means the <noteRef href="#m00159" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Stamp Act 1891 and any enactment which amends or is required to be construed together with that Act.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-192-6"><num>(6)</num><intro><p>The amendments made by this section shall have effect in relation to an agreement to transfer securities if—</p></intro><level class="para1" eId="section-192-6-a"><num>(a)</num><content><p>the agreement is conditional and the condition is satisfied on or after 1st July 1996; or</p></content></level><level class="para1" eId="section-192-6-b"><num>(b)</num><content><p>the agreement is not conditional and is made on or after that date.</p></content></level></subsection></section><section eId="section-193"><num>193</num><heading>Depositary receipts</heading><subsection eId="section-193-1"><num>(1)</num><content><p>Section 93 of the Finance Act 1986 (depositary receipts) shall be amended in accordance with the following provisions of this section.</p></content></subsection><subsection eId="section-193-2"><num>(2)</num><intro><p>In subsection (1) (charge to stamp duty reserve tax where certain things are done in pursuance of an arrangement) in paragraph (b) (transfer or issue to, or appropriation by, a person falling within subsection (3))—</p></intro><level class="para1" eId="section-193-2-a"><num>(a)</num><content><p>after “transferred or issued to” there shall be inserted “the person mentioned in paragraph (a) above or”; and</p></content></level><level class="para1" eId="section-193-2-b"><num>(b)</num><content><p>for “such a person” there shall be substituted “the person mentioned in paragraph (a) above or a person falling within subsection (3) below”.</p></content></level></subsection><subsection eId="section-193-3"><num>(3)</num><content><p>In subsection (6) (payment by instalments) in paragraph (d) (instrument received by person falling within subsection (3)) for “subsection (3)” there shall be substituted “subsection (2) or (3)”.</p></content></subsection><subsection eId="section-193-4"><num>(4)</num><intro><p>This section has effect—</p></intro><level class="para1" eId="section-193-4-a"><num>(a)</num><content><p>so far as relating to the charge to tax under section 93(1) of the <noteRef href="#m00160" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1986, where securities are transferred, issued or appropriated on or after 1st July 1996 (whenever the arrangement was made);</p></content></level><level class="para1" eId="section-193-4-b"><num>(b)</num><content><p>so far as relating to the charge to tax under section 93(10) of that Act, in relation to instalments payable on or after 1st July 1996.</p></content></level></subsection></section><section eId="section-194"><num>194</num><heading>Rates of charge expressed as percentages</heading><subsection eId="section-194-1"><num>(1)</num><content><p>In section 87 of the Finance Act 1986, in subsection (6) (which specifies the rate at which stamp duty reserve tax under that section is charged) for “50p for every £100 or part of £100” there shall be substituted “0.5 per cent.”</p></content></subsection><subsection eId="section-194-2"><num>(2)</num><intro><p>In section 93 of that Act (depositary receipts)—</p></intro><level class="para1" eId="section-194-2-a"><num>(a)</num><content><p>in subsection (4) (rate of charge) for “£1.50 for every £100 or part of £100” there shall be substituted “1.5 per cent.”;</p></content></level><level class="para1" eId="section-194-2-b"><num>(b)</num><content><p>in subsection (5) (which applies subsection (4) with modifications in certain cases where the securities are transferred by a chargeable instrument) for the words from “as if “£1.50” read” onwards there shall be substituted “as if “1.5 per cent.” read “1 per cent.””; and</p></content></level><level class="para1" eId="section-194-2-c"><num>(c)</num><content><p>in subsection (10) (payment in instalments etc) in paragraph (b), for “£1.50 for every £100 or part of £100” there shall be substituted “1.5 per cent. of the amount”.</p></content></level></subsection><subsection eId="section-194-3"><num>(3)</num><content><p>Section 94(8) of that Act (which defines “the day of The Stock Exchange reforms” for the purposes of section 93(5) and which becomes unnecessary in consequence of the amendment made by subsection (2)(b) above) shall be omitted.</p></content></subsection><subsection eId="section-194-4"><num>(4)</num><intro><p>In section 96 of that Act (clearance services)—</p></intro><level class="para1" eId="section-194-4-a"><num>(a)</num><content><p>in subsection (2) (rate of charge) for “£1.50 for every £100 or part of £100” there shall be substituted “1.5 per cent.”;</p></content></level><level class="para1" eId="section-194-4-b"><num>(b)</num><content><p>in subsection (3) (which applies subsection (2) with modifications in certain cases where the securities are transferred by a chargeable instrument) for the words from “as if “£1.50” read” onwards there shall be substituted “as if “1.5 per cent.” read “1 per cent.””; and</p></content></level><level class="para1" eId="section-194-4-c"><num>(c)</num><content><p>in subsection (8) (payment in instalments etc) in paragraph (b), for “£1.50 for every £100 or part of £100” there shall be substituted “1.5 per cent. of the amount”.</p></content></level></subsection><subsection eId="section-194-5"><num>(5)</num><content><p>Section 96(12) of that Act (which defines “the day of The Stock Exchange reforms” for the purposes of subsection (3) and which becomes unnecessary in consequence of the amendment made by subsection (4)(b) above) shall be omitted.</p></content></subsection><subsection eId="section-194-6"><num>(6)</num><content><p><mod>In section 99 of that Act (interpretation) after subsection (12) there shall be added—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(13)</num><content><p>Where the calculation of any tax in accordance with the provisions of this Part results in an amount which is not a multiple of one penny, the amount so calculated shall be rounded to the nearest penny, taking any ½p as nearest to the next whole penny above.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-194-7"><num>(7)</num><intro><p>Subsections (1) to (5) above have effect in accordance with the following provisions of this subsection, that is to say—</p></intro><level class="para1" eId="section-194-7-a"><num>(a)</num><intro><p>in relation to the charge to tax under section 87 of the <noteRef href="#m00161" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1986, subsection (1) above applies where—</p></intro><level class="para2" eId="section-194-7-a-i"><num>(i)</num><content><p>the agreement to transfer is conditional and the condition is satisfied on or after 1st July 1996; or</p></content></level><level class="para2" eId="section-194-7-a-ii"><num>(ii)</num><content><p>the agreement is not conditional and is made on or after 1st July 1996;</p></content></level></level><level class="para1" eId="section-194-7-b"><num>(b)</num><content><p>in relation to the charge to tax under section 93(1) of that Act, paragraphs (a) and (b) of subsection (2) above apply where securities are transferred, issued or appropriated on or after 1st July 1996 (whenever the arrangement was made) and subsection (3) above has effect accordingly;</p></content></level><level class="para1" eId="section-194-7-c"><num>(c)</num><content><p>in relation to the charge to tax under section 93(10) of that Act, paragraph (c) of subsection (2) above applies in relation to instalments payable on or after 1st July 1996;</p></content></level><level class="para1" eId="section-194-7-d"><num>(d)</num><content><p>in relation to the charge to tax under section 96(1) of that Act, paragraphs (a) and (b) of subsection (4) above apply where securities are transferred or issued on or after 1st July 1996 (whenever the arrangement was made) and subsection (5) above has effect accordingly;</p></content></level><level class="para1" eId="section-194-7-e"><num>(e)</num><content><p>in relation to the charge to tax under section 96(8) of that Act, paragraph (c) of subsection (4) above applies in relation to instalments payable on or after 1st July 1996.</p></content></level></subsection></section><section eId="section-195"><num>195</num><heading>Regulations concerning administration: sub-delegation to the Board</heading><content><p><mod>In section 98 of the <noteRef href="#m00162" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1986 (Treasury regulations with respect to administration etc) after subsection (1) there shall be inserted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1A)</num><content><p>The power conferred on the Treasury by subsection (1) above includes power to make provision conferring or imposing on the Board functions which involve the exercise of a discretion.</p></content></subsection></quotedStructure></mod></p></content></section></hcontainer>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-187"><num>187</num><heading>Territorial scope of the tax</heading><subsection eId="section-187-1"><num>(1)</num><content><p><mod>In section 86 of the <noteRef href="#m00146" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1986 (introduction) after subsection (3) there shall be added—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(4)</num><intro><p>Stamp duty reserve tax shall be chargeable in accordance with the provisions of this Part of this Act—</p></intro><level class="para1"><num>(a)</num><content><p>whether the agreement, transfer, issue or appropriation in question is made or effected in the United Kingdom or elsewhere, and</p></content></level><level class="para1"><num>(b)</num><content><p>whether or not any party is resident or situate in any part of the United Kingdom.</p></content></level></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-187-2"><num>(2)</num><intro><p>The amendment made by subsection (1) above shall have effect—</p></intro><level class="para1" eId="section-187-2-a"><num>(a)</num><intro><p>in relation to an agreement, if—</p></intro><level class="para2" eId="section-187-2-a-i"><num>(i)</num><content><p>the agreement is conditional and the condition is satisfied on or after 1st July 1996; or</p></content></level><level class="para2" eId="section-187-2-a-ii"><num>(ii)</num><content><p>the agreement is not conditional and is made on or after that date; and</p></content></level></level><level class="para1" eId="section-187-2-b"><num>(b)</num><content><p>in relation to a transfer, issue or appropriation made or effected on or after that date.</p></content></level></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-187-1"><num>(1)</num><content><p><mod>In section 86 of the <noteRef href="#m00146" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1986 (introduction) after subsection (3) there shall be added—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(4)</num><intro><p>Stamp duty reserve tax shall be chargeable in accordance with the provisions of this Part of this Act—</p></intro><level class="para1"><num>(a)</num><content><p>whether the agreement, transfer, issue or appropriation in question is made or effected in the United Kingdom or elsewhere, and</p></content></level><level class="para1"><num>(b)</num><content><p>whether or not any party is resident or situate in any part of the United Kingdom.</p></content></level></subsection></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-187-2"><num>(2)</num><intro><p>The amendment made by subsection (1) above shall have effect—</p></intro><level class="para1" eId="section-187-2-a"><num>(a)</num><intro><p>in relation to an agreement, if—</p></intro><level class="para2" eId="section-187-2-a-i"><num>(i)</num><content><p>the agreement is conditional and the condition is satisfied on or after 1st July 1996; or</p></content></level><level class="para2" eId="section-187-2-a-ii"><num>(ii)</num><content><p>the agreement is not conditional and is made on or after that date; and</p></content></level></level><level class="para1" eId="section-187-2-b"><num>(b)</num><content><p>in relation to a transfer, issue or appropriation made or effected on or after that date.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-187-2-a"><num>(a)</num><intro><p>in relation to an agreement, if—</p></intro><level class="para2" eId="section-187-2-a-i"><num>(i)</num><content><p>the agreement is conditional and the condition is satisfied on or after 1st July 1996; or</p></content></level><level class="para2" eId="section-187-2-a-ii"><num>(ii)</num><content><p>the agreement is not conditional and is made on or after that date; and</p></content></level></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-187-2-a-i"><num>(i)</num><content><p>the agreement is conditional and the condition is satisfied on or after 1st July 1996; or</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-187-2-a-ii"><num>(ii)</num><content><p>the agreement is not conditional and is made on or after that date; and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-187-2-b"><num>(b)</num><content><p>in relation to a transfer, issue or appropriation made or effected on or after that date.</p></content></level>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-188"><num>188</num><heading>Removal of the two month period</heading><subsection eId="section-188-1"><num>(1)</num><intro><p>In section 87 of the <noteRef href="#m00147" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1986 (the principal charge) in subsection (2) (tax charged on the expiry of the period of two months beginning with the relevant day unless the first and second conditions are fulfilled before that period expires) the following shall be omitted—</p></intro><level class="para1" eId="section-188-1-a"><num>(a)</num><content><p>the words “the expiry of the period of two months beginning with”, and</p></content></level><level class="para1" eId="section-188-1-b"><num>(b)</num><content><p>the words from “unless” to the end.</p></content></level></subsection><subsection eId="section-188-2"><num>(2)</num><content><p><mod>In section 88 of that Act (special cases) in subsection (1) (which provides for instruments on which stamp duty is not chargeable by virtue of certain enactments to be disregarded for the purposes of section 87(4) and (5)) before paragraph (a) there shall be inserted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(aa)</num><content><p>section 65(1) of the <noteRef href="#m00148" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1963 (renounceable letters of allotment etc),</p></content></level><level class="para1"><num>(ab)</num><content><p>section 14(1) of the <noteRef href="#m00149" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act (Northern Ireland) 1963 (renounceable letters of allotment etc.),</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-188-3"><num>(3)</num><content><p>Subsections (2) and (3) of that section (which are superseded by subsection (2) above) shall cease to have effect.</p></content></subsection><subsection eId="section-188-4"><num>(4)</num><intro><p>In section 92(1) of that Act (repayment or cancellation of tax where the conditions in section 87(4) and (5) are shown to have been fulfilled after the expiry of the period of two months beginning with the relevant day but before the expiry of six years so beginning)—</p></intro><level class="para1" eId="section-188-4-a"><num>(a)</num><content><p>for “after the expiry of the period of two months (beginning with the relevant day, as defined in section 87(3))” there shall be substituted “on or after the relevant day (as defined in section 87(3))”; and</p></content></level><level class="para1" eId="section-188-4-b"><num>(b)</num><content><p>for “(so beginning)” there shall be substituted “(beginning with that day)”.</p></content></level></subsection><subsection eId="section-188-5"><num>(5)</num><intro><p>The amendments made by this section shall have effect in relation to an agreement to transfer securities if—</p></intro><level class="para1" eId="section-188-5-a"><num>(a)</num><content><p>the agreement is conditional and the condition is satisfied on or after 1st July 1996; or</p></content></level><level class="para1" eId="section-188-5-b"><num>(b)</num><content><p>the agreement is not conditional and is made on or after that date.</p></content></level></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-188-1"><num>(1)</num><intro><p>In section 87 of the <noteRef href="#m00147" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1986 (the principal charge) in subsection (2) (tax charged on the expiry of the period of two months beginning with the relevant day unless the first and second conditions are fulfilled before that period expires) the following shall be omitted—</p></intro><level class="para1" eId="section-188-1-a"><num>(a)</num><content><p>the words “the expiry of the period of two months beginning with”, and</p></content></level><level class="para1" eId="section-188-1-b"><num>(b)</num><content><p>the words from “unless” to the end.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-188-1-a"><num>(a)</num><content><p>the words “the expiry of the period of two months beginning with”, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-188-1-b"><num>(b)</num><content><p>the words from “unless” to the end.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-188-2"><num>(2)</num><content><p><mod>In section 88 of that Act (special cases) in subsection (1) (which provides for instruments on which stamp duty is not chargeable by virtue of certain enactments to be disregarded for the purposes of section 87(4) and (5)) before paragraph (a) there shall be inserted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(aa)</num><content><p>section 65(1) of the <noteRef href="#m00148" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1963 (renounceable letters of allotment etc),</p></content></level><level class="para1"><num>(ab)</num><content><p>section 14(1) of the <noteRef href="#m00149" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act (Northern Ireland) 1963 (renounceable letters of allotment etc.),</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-188-3"><num>(3)</num><content><p>Subsections (2) and (3) of that section (which are superseded by subsection (2) above) shall cease to have effect.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-188-4"><num>(4)</num><intro><p>In section 92(1) of that Act (repayment or cancellation of tax where the conditions in section 87(4) and (5) are shown to have been fulfilled after the expiry of the period of two months beginning with the relevant day but before the expiry of six years so beginning)—</p></intro><level class="para1" eId="section-188-4-a"><num>(a)</num><content><p>for “after the expiry of the period of two months (beginning with the relevant day, as defined in section 87(3))” there shall be substituted “on or after the relevant day (as defined in section 87(3))”; and</p></content></level><level class="para1" eId="section-188-4-b"><num>(b)</num><content><p>for “(so beginning)” there shall be substituted “(beginning with that day)”.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-188-4-a"><num>(a)</num><content><p>for “after the expiry of the period of two months (beginning with the relevant day, as defined in section 87(3))” there shall be substituted “on or after the relevant day (as defined in section 87(3))”; and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-188-4-b"><num>(b)</num><content><p>for “(so beginning)” there shall be substituted “(beginning with that day)”.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-188-5"><num>(5)</num><intro><p>The amendments made by this section shall have effect in relation to an agreement to transfer securities if—</p></intro><level class="para1" eId="section-188-5-a"><num>(a)</num><content><p>the agreement is conditional and the condition is satisfied on or after 1st July 1996; or</p></content></level><level class="para1" eId="section-188-5-b"><num>(b)</num><content><p>the agreement is not conditional and is made on or after that date.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-188-5-a"><num>(a)</num><content><p>the agreement is conditional and the condition is satisfied on or after 1st July 1996; or</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-188-5-b"><num>(b)</num><content><p>the agreement is not conditional and is made on or after that date.</p></content></level>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-189"><num>189</num><heading>Transfers to members of electronic transfer systems etc</heading><subsection eId="section-189-1"><num>(1)</num><content><p><mod>In section 88 of the Finance Act 1986 (special cases) after subsection (1) there shall be inserted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1A)</num><intro><p>An instrument on which stamp duty is not chargeable by virtue of section 186 of the Finance Act 1996 (transfers of securities to members of electronic transfer systems etc) shall be disregarded in construing section 87(4) and (5) above unless—</p></intro><level class="para1"><num>(a)</num><content><p>the transfer is made by a stock exchange nominee; and</p></content></level><level class="para1"><num>(b)</num><content><p>the maximum stamp duty chargeable on the instrument, apart from section 186 of the Finance Act 1996, would be 50p;</p></content></level><wrapUp><p>and in this subsection “stock exchange nominee” means a person designated for the purposes of section 127 of the <noteRef href="#m00150" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1976 as a nominee of The Stock Exchange by an order made by the Secretary of State under subsection (5) of that section.</p></wrapUp></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-189-2"><num>(2)</num><content><p>This section has effect in relation to an agreement to transfer securities if an instrument is executed on or after 1st July 1996 in pursuance of the agreement.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-189-1"><num>(1)</num><content><p><mod>In section 88 of the Finance Act 1986 (special cases) after subsection (1) there shall be inserted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1A)</num><intro><p>An instrument on which stamp duty is not chargeable by virtue of section 186 of the Finance Act 1996 (transfers of securities to members of electronic transfer systems etc) shall be disregarded in construing section 87(4) and (5) above unless—</p></intro><level class="para1"><num>(a)</num><content><p>the transfer is made by a stock exchange nominee; and</p></content></level><level class="para1"><num>(b)</num><content><p>the maximum stamp duty chargeable on the instrument, apart from section 186 of the Finance Act 1996, would be 50p;</p></content></level><wrapUp><p>and in this subsection “stock exchange nominee” means a person designated for the purposes of section 127 of the <noteRef href="#m00150" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1976 as a nominee of The Stock Exchange by an order made by the Secretary of State under subsection (5) of that section.</p></wrapUp></subsection></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-189-2"><num>(2)</num><content><p>This section has effect in relation to an agreement to transfer securities if an instrument is executed on or after 1st July 1996 in pursuance of the agreement.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-190"><num>190</num><heading>Transfers between associated bodies</heading><subsection eId="section-190-1"><num>(1)</num><content><p><mod>In section 88 of the <noteRef href="#m00151" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1986 (special cases) after subsection (1A) there shall be inserted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1B)</num><intro><p>An instrument on which stamp duty is not chargeable by virtue of section 42 of the <noteRef href="#m00152" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1930 or section 11 of the <noteRef href="#m00153" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act (Northern Ireland) 1954 (transfer between associated bodies corporate) shall be disregarded in construing section 87(4) and (5) above in any case where—</p></intro><level class="para1"><num>(a)</num><content><p>the property mentioned in section 42(2)(a) of the Finance Act 1930 or, as the case may be, section 11(2)(a) of the Finance Act (Northern Ireland) 1954 consists of chargeable securities of any particular kind acquired in the period of two years ending with the day on which the instrument was executed; and</p></content></level><level class="para1"><num>(b)</num><intro><p>the body corporate from which the conveyance or transfer there mentioned is effected acquired the chargeable securities—</p></intro><level class="para2"><num>(i)</num><content><p>in a transaction which was given effect by an instrument of transfer on which stamp duty was not chargeable by virtue of section 81 above;</p></content></level><level class="para2"><num>(ii)</num><content><p>in pursuance of an agreement to transfer securities as regards which section 87 above did not apply by virtue of section 89 below; or</p></content></level><level class="para2"><num>(iii)</num><content><p>in circumstances with regard to which the charge to stamp duty or stamp duty reserve tax was treated as not arising by virtue of regulations under section 116 or 117 of the <noteRef href="#m00154" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1991.</p></content></level></level></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-190-2"><num>(2)</num><content><p><mod>At the end of that section there shall be added—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(4)</num><content><p>For the purposes of subsection (1B) above, if the securities mentioned in paragraph (a) of that subsection cannot (apart from this subsection) be identified, securities shall be taken as follows, that is to say, securities of the same kind acquired later in the period of two years there mentioned (and not taken under this subsection for the purposes of any earlier instrument) shall be taken before securities acquired earlier in that period.</p></content></subsection><subsection><num>(5)</num><content><p>If, in a case where subsection (4) above applies, some, but not all, of the securities taken in accordance with that subsection were acquired as mentioned in paragraph (b) of subsection (1B) above by the body corporate mentioned in that paragraph, the stamp duty reserve tax chargeable under section 87 above by virtue of subsection (1B) above shall not exceed the tax that would have been so chargeable had the agreement to transfer the securities related only to such of the securities so taken as were so acquired.</p></content></subsection><subsection><num>(6)</num><content><p>Where a person enters into an agreement for securities to be transferred to him or his nominee, the securities shall be treated for the purposes of subsections (1B)(a) and (4) above as acquired by that person at the time when he enters into the agreement, unless the agreement is conditional, in which case they shall be taken to be acquired by him when the condition is satisfied.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-190-3"><num>(3)</num><content><p>This section has effect where the instrument on which stamp duty is not chargeable by virtue of section 42 of the <noteRef href="#m00155" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1930 or section 11 of the <noteRef href="#m00156" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act (Northern Ireland) 1954 is executed on or after 4th January 1996 in pursuance of an agreement to transfer securities made on or after that date.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-190-1"><num>(1)</num><content><p><mod>In section 88 of the <noteRef href="#m00151" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1986 (special cases) after subsection (1A) there shall be inserted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1B)</num><intro><p>An instrument on which stamp duty is not chargeable by virtue of section 42 of the <noteRef href="#m00152" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1930 or section 11 of the <noteRef href="#m00153" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act (Northern Ireland) 1954 (transfer between associated bodies corporate) shall be disregarded in construing section 87(4) and (5) above in any case where—</p></intro><level class="para1"><num>(a)</num><content><p>the property mentioned in section 42(2)(a) of the Finance Act 1930 or, as the case may be, section 11(2)(a) of the Finance Act (Northern Ireland) 1954 consists of chargeable securities of any particular kind acquired in the period of two years ending with the day on which the instrument was executed; and</p></content></level><level class="para1"><num>(b)</num><intro><p>the body corporate from which the conveyance or transfer there mentioned is effected acquired the chargeable securities—</p></intro><level class="para2"><num>(i)</num><content><p>in a transaction which was given effect by an instrument of transfer on which stamp duty was not chargeable by virtue of section 81 above;</p></content></level><level class="para2"><num>(ii)</num><content><p>in pursuance of an agreement to transfer securities as regards which section 87 above did not apply by virtue of section 89 below; or</p></content></level><level class="para2"><num>(iii)</num><content><p>in circumstances with regard to which the charge to stamp duty or stamp duty reserve tax was treated as not arising by virtue of regulations under section 116 or 117 of the <noteRef href="#m00154" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1991.</p></content></level></level></subsection></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-190-2"><num>(2)</num><content><p><mod>At the end of that section there shall be added—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(4)</num><content><p>For the purposes of subsection (1B) above, if the securities mentioned in paragraph (a) of that subsection cannot (apart from this subsection) be identified, securities shall be taken as follows, that is to say, securities of the same kind acquired later in the period of two years there mentioned (and not taken under this subsection for the purposes of any earlier instrument) shall be taken before securities acquired earlier in that period.</p></content></subsection><subsection><num>(5)</num><content><p>If, in a case where subsection (4) above applies, some, but not all, of the securities taken in accordance with that subsection were acquired as mentioned in paragraph (b) of subsection (1B) above by the body corporate mentioned in that paragraph, the stamp duty reserve tax chargeable under section 87 above by virtue of subsection (1B) above shall not exceed the tax that would have been so chargeable had the agreement to transfer the securities related only to such of the securities so taken as were so acquired.</p></content></subsection><subsection><num>(6)</num><content><p>Where a person enters into an agreement for securities to be transferred to him or his nominee, the securities shall be treated for the purposes of subsections (1B)(a) and (4) above as acquired by that person at the time when he enters into the agreement, unless the agreement is conditional, in which case they shall be taken to be acquired by him when the condition is satisfied.</p></content></subsection></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-190-3"><num>(3)</num><content><p>This section has effect where the instrument on which stamp duty is not chargeable by virtue of section 42 of the <noteRef href="#m00155" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1930 or section 11 of the <noteRef href="#m00156" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act (Northern Ireland) 1954 is executed on or after 4th January 1996 in pursuance of an agreement to transfer securities made on or after that date.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-191"><num>191</num><heading>Stock lending and collateral security arrangements</heading><subsection eId="section-191-1"><num>(1)</num><content><p><mod>After section 89A of the <noteRef href="#m00157" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1986 (exceptions from section 87 for public issues) there shall be inserted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>89B</num><heading>Section 87: exceptions for stock lending and collateral security arrangements</heading><subsection><num>(1)</num><intro><p>Where a person (P) has contracted to sell chargeable securities of a particular kind in the ordinary course of his business as a market maker in chargeable securities of that kind and, to enable him to fulfil the contract, he enters into an arrangement under which—</p></intro><level class="para1"><num>(a)</num><content><p>another person (Q) is to transfer chargeable securities to P or his nominee, and</p></content></level><level class="para1"><num>(b)</num><content><p>in return, chargeable securities of the same kind and amount are to be transferred (whether or not by P or his nominee) to Q or his nominee,</p></content></level><wrapUp><p>section 87 above shall not apply as regards an agreement to transfer chargeable securities which is made for the purpose of performing the obligation to transfer chargeable securities described in paragraph (a) or (b) above.</p></wrapUp></subsection><subsection><num>(2)</num><intro><p>Where the arrangement mentioned in subsection (1) above is also one under which—</p></intro><level class="para1"><num>(a)</num><content><p>an amount of chargeable securities of some other kind is to be transferred by P or his nominee to Q or his nominee by way of security for the performance of the obligation described in paragraph (b) of that subsection, and</p></content></level><level class="para1"><num>(b)</num><content><p>on performance of that obligation, the securities mentioned in paragraph (a) above, or chargeable securities of the same kind and amount as those securities, are to be transferred to P or his nominee,</p></content></level><wrapUp><p>section 87 above shall also not apply as regards an agreement to transfer chargeable securities which is made for the purpose of performing the obligation to transfer chargeable securities described in paragraph (a) or (b) above.</p></wrapUp></subsection><subsection><num>(3)</num><intro><p>Where, to enable Q to make the transfer to P or his nominee which is mentioned in paragraph (a) of subsection (1) above, Q enters into an arrangement under which—</p></intro><level class="para1"><num>(a)</num><content><p>another person (R) is to transfer chargeable securities to Q or his nominee, and</p></content></level><level class="para1"><num>(b)</num><content><p>in return, chargeable securities of the same kind and amount are to be transferred (whether or not by Q or his nominee) to R or his nominee,</p></content></level><wrapUp><p>section 87 above shall not apply as regards an agreement to transfer chargeable securities which is made for the purpose of performing the obligation to transfer chargeable securities described in paragraph (a) or (b) above.</p></wrapUp></subsection><subsection><num>(4)</num><intro><p>Where the arrangement mentioned in subsection (3) above is also one under which—</p></intro><level class="para1"><num>(a)</num><content><p>an amount of chargeable securities of some other kind is to be transferred by Q or his nominee to R or his nominee by way of security for the performance of the obligation described in paragraph (b) of that subsection, and</p></content></level><level class="para1"><num>(b)</num><content><p>on performance of that obligation, the securities mentioned in paragraph (a) above, or chargeable securities of the same kind and amount as those securities, are to be transferred to Q or his nominee,</p></content></level><wrapUp><p>section 87 above shall also not apply as regards an agreement to transfer chargeable securities which is made for the purpose of performing the obligation to transfer chargeable securities described in paragraph (a) or (b) above.</p></wrapUp></subsection><subsection><num>(5)</num><intro><p>For the purposes of this section a person is a market maker in chargeable securities of a particular kind if he—</p></intro><level class="para1"><num>(a)</num><content><p>holds himself out at all normal times in compliance with the rules of The Stock Exchange as willing to buy and sell chargeable securities of that kind at a price specified by him, and</p></content></level><level class="para1"><num>(b)</num><content><p>is recognised as doing so by The Stock Exchange.</p></content></level></subsection><subsection><num>(6)</num><content><p>The Treasury may by regulations provide that for subsection (5) above (as it has effect for the time being) there shall be substituted a subsection containing a different definition of a market maker for the purposes of this section.</p></content></subsection><subsection><num>(7)</num><content><p>Regulations under subsection (6) above shall apply in relation to any agreement to transfer chargeable securities in pursuance of an arrangement entered into on or after such day after 1st July 1996 as is specified in the regulations.</p></content></subsection><subsection><num>(8)</num><content><p>The power to make regulations under subsection (6) above shall be exercisable by statutory instrument subject to annulment in pursuance of a resolution of the House of Commons.</p></content></subsection></section></quotedStructure></mod></p></content></subsection><subsection eId="section-191-2"><num>(2)</num><content><p>This section applies in relation to agreements to transfer chargeable securities in pursuance of an arrangement entered into on or after 1st July 1996.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-191-1"><num>(1)</num><content><p><mod>After section 89A of the <noteRef href="#m00157" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1986 (exceptions from section 87 for public issues) there shall be inserted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>89B</num><heading>Section 87: exceptions for stock lending and collateral security arrangements</heading><subsection><num>(1)</num><intro><p>Where a person (P) has contracted to sell chargeable securities of a particular kind in the ordinary course of his business as a market maker in chargeable securities of that kind and, to enable him to fulfil the contract, he enters into an arrangement under which—</p></intro><level class="para1"><num>(a)</num><content><p>another person (Q) is to transfer chargeable securities to P or his nominee, and</p></content></level><level class="para1"><num>(b)</num><content><p>in return, chargeable securities of the same kind and amount are to be transferred (whether or not by P or his nominee) to Q or his nominee,</p></content></level><wrapUp><p>section 87 above shall not apply as regards an agreement to transfer chargeable securities which is made for the purpose of performing the obligation to transfer chargeable securities described in paragraph (a) or (b) above.</p></wrapUp></subsection><subsection><num>(2)</num><intro><p>Where the arrangement mentioned in subsection (1) above is also one under which—</p></intro><level class="para1"><num>(a)</num><content><p>an amount of chargeable securities of some other kind is to be transferred by P or his nominee to Q or his nominee by way of security for the performance of the obligation described in paragraph (b) of that subsection, and</p></content></level><level class="para1"><num>(b)</num><content><p>on performance of that obligation, the securities mentioned in paragraph (a) above, or chargeable securities of the same kind and amount as those securities, are to be transferred to P or his nominee,</p></content></level><wrapUp><p>section 87 above shall also not apply as regards an agreement to transfer chargeable securities which is made for the purpose of performing the obligation to transfer chargeable securities described in paragraph (a) or (b) above.</p></wrapUp></subsection><subsection><num>(3)</num><intro><p>Where, to enable Q to make the transfer to P or his nominee which is mentioned in paragraph (a) of subsection (1) above, Q enters into an arrangement under which—</p></intro><level class="para1"><num>(a)</num><content><p>another person (R) is to transfer chargeable securities to Q or his nominee, and</p></content></level><level class="para1"><num>(b)</num><content><p>in return, chargeable securities of the same kind and amount are to be transferred (whether or not by Q or his nominee) to R or his nominee,</p></content></level><wrapUp><p>section 87 above shall not apply as regards an agreement to transfer chargeable securities which is made for the purpose of performing the obligation to transfer chargeable securities described in paragraph (a) or (b) above.</p></wrapUp></subsection><subsection><num>(4)</num><intro><p>Where the arrangement mentioned in subsection (3) above is also one under which—</p></intro><level class="para1"><num>(a)</num><content><p>an amount of chargeable securities of some other kind is to be transferred by Q or his nominee to R or his nominee by way of security for the performance of the obligation described in paragraph (b) of that subsection, and</p></content></level><level class="para1"><num>(b)</num><content><p>on performance of that obligation, the securities mentioned in paragraph (a) above, or chargeable securities of the same kind and amount as those securities, are to be transferred to Q or his nominee,</p></content></level><wrapUp><p>section 87 above shall also not apply as regards an agreement to transfer chargeable securities which is made for the purpose of performing the obligation to transfer chargeable securities described in paragraph (a) or (b) above.</p></wrapUp></subsection><subsection><num>(5)</num><intro><p>For the purposes of this section a person is a market maker in chargeable securities of a particular kind if he—</p></intro><level class="para1"><num>(a)</num><content><p>holds himself out at all normal times in compliance with the rules of The Stock Exchange as willing to buy and sell chargeable securities of that kind at a price specified by him, and</p></content></level><level class="para1"><num>(b)</num><content><p>is recognised as doing so by The Stock Exchange.</p></content></level></subsection><subsection><num>(6)</num><content><p>The Treasury may by regulations provide that for subsection (5) above (as it has effect for the time being) there shall be substituted a subsection containing a different definition of a market maker for the purposes of this section.</p></content></subsection><subsection><num>(7)</num><content><p>Regulations under subsection (6) above shall apply in relation to any agreement to transfer chargeable securities in pursuance of an arrangement entered into on or after such day after 1st July 1996 as is specified in the regulations.</p></content></subsection><subsection><num>(8)</num><content><p>The power to make regulations under subsection (6) above shall be exercisable by statutory instrument subject to annulment in pursuance of a resolution of the House of Commons.</p></content></subsection></section></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-191-2"><num>(2)</num><content><p>This section applies in relation to agreements to transfer chargeable securities in pursuance of an arrangement entered into on or after 1st July 1996.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-192"><num>192</num><heading>Repayment or cancellation of tax</heading><subsection eId="section-192-1"><num>(1)</num><content><p>In consequence of section 188(1) above, subsections (4), (5) and (8) of section 87 of the <noteRef href="#m00158" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1986 (exemption from stamp duty reserve tax where an instrument is executed etc) shall cease to have effect.</p></content></subsection><subsection eId="section-192-2"><num>(2)</num><content><p>In section 88 of that Act (which provides for instruments on which stamp duty is not chargeable by virtue of certain enactments to be disregarded for the purposes of section 87(4) and (5)) in subsections (1), (1A) and (1B) for “section 87(4) and (5) above” there shall be substituted “section 92(1A) and (1B) below”.</p></content></subsection><subsection eId="section-192-3"><num>(3)</num><intro><p>In section 92 of that Act (repayment or cancellation of tax) in subsection (1) (which refers to the conditions in section 87(4) and (5))—</p></intro><level class="para1" eId="section-192-3-a"><num>(a)</num><content><p>for “section 87(4) and (5)” there shall be substituted “subsections (1A) and (1B) below”; and</p></content></level><level class="para1" eId="section-192-3-b"><num>(b)</num><content><p>for “the following provisions of this section shall apply” there shall be substituted “subsections (2) to (4A) of this section shall apply”.</p></content></level></subsection><subsection eId="section-192-4"><num>(4)</num><content><p><mod>After that subsection, there shall be inserted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1A)</num><content><p>The first condition is that an instrument is (or instruments are) executed in pursuance of the agreement and the instrument transfers (or the instruments between them transfer) to B or, as the case may be, to his nominee all the chargeable securities to which the agreement relates.</p></content></subsection><subsection><num>(1B)</num><content><p>The second condition is that the instrument (or each instrument) transferring the chargeable securities to which the agreement relates is duly stamped in accordance with the enactments relating to stamp duty if it is an instrument which, under those enactments, is chargeable with stamp duty or otherwise required to be stamped.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-192-5"><num>(5)</num><content><p><mod>At the end of that section there shall be added—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(6)</num><content><p>In this section “the enactments relating to stamp duty” means the <noteRef href="#m00159" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Stamp Act 1891 and any enactment which amends or is required to be construed together with that Act.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-192-6"><num>(6)</num><intro><p>The amendments made by this section shall have effect in relation to an agreement to transfer securities if—</p></intro><level class="para1" eId="section-192-6-a"><num>(a)</num><content><p>the agreement is conditional and the condition is satisfied on or after 1st July 1996; or</p></content></level><level class="para1" eId="section-192-6-b"><num>(b)</num><content><p>the agreement is not conditional and is made on or after that date.</p></content></level></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-192-1"><num>(1)</num><content><p>In consequence of section 188(1) above, subsections (4), (5) and (8) of section 87 of the <noteRef href="#m00158" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1986 (exemption from stamp duty reserve tax where an instrument is executed etc) shall cease to have effect.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-192-2"><num>(2)</num><content><p>In section 88 of that Act (which provides for instruments on which stamp duty is not chargeable by virtue of certain enactments to be disregarded for the purposes of section 87(4) and (5)) in subsections (1), (1A) and (1B) for “section 87(4) and (5) above” there shall be substituted “section 92(1A) and (1B) below”.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-192-3"><num>(3)</num><intro><p>In section 92 of that Act (repayment or cancellation of tax) in subsection (1) (which refers to the conditions in section 87(4) and (5))—</p></intro><level class="para1" eId="section-192-3-a"><num>(a)</num><content><p>for “section 87(4) and (5)” there shall be substituted “subsections (1A) and (1B) below”; and</p></content></level><level class="para1" eId="section-192-3-b"><num>(b)</num><content><p>for “the following provisions of this section shall apply” there shall be substituted “subsections (2) to (4A) of this section shall apply”.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-192-3-a"><num>(a)</num><content><p>for “section 87(4) and (5)” there shall be substituted “subsections (1A) and (1B) below”; and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-192-3-b"><num>(b)</num><content><p>for “the following provisions of this section shall apply” there shall be substituted “subsections (2) to (4A) of this section shall apply”.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-192-4"><num>(4)</num><content><p><mod>After that subsection, there shall be inserted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1A)</num><content><p>The first condition is that an instrument is (or instruments are) executed in pursuance of the agreement and the instrument transfers (or the instruments between them transfer) to B or, as the case may be, to his nominee all the chargeable securities to which the agreement relates.</p></content></subsection><subsection><num>(1B)</num><content><p>The second condition is that the instrument (or each instrument) transferring the chargeable securities to which the agreement relates is duly stamped in accordance with the enactments relating to stamp duty if it is an instrument which, under those enactments, is chargeable with stamp duty or otherwise required to be stamped.</p></content></subsection></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-192-5"><num>(5)</num><content><p><mod>At the end of that section there shall be added—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(6)</num><content><p>In this section “the enactments relating to stamp duty” means the <noteRef href="#m00159" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Stamp Act 1891 and any enactment which amends or is required to be construed together with that Act.</p></content></subsection></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-192-6"><num>(6)</num><intro><p>The amendments made by this section shall have effect in relation to an agreement to transfer securities if—</p></intro><level class="para1" eId="section-192-6-a"><num>(a)</num><content><p>the agreement is conditional and the condition is satisfied on or after 1st July 1996; or</p></content></level><level class="para1" eId="section-192-6-b"><num>(b)</num><content><p>the agreement is not conditional and is made on or after that date.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-192-6-a"><num>(a)</num><content><p>the agreement is conditional and the condition is satisfied on or after 1st July 1996; or</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-192-6-b"><num>(b)</num><content><p>the agreement is not conditional and is made on or after that date.</p></content></level>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-193"><num>193</num><heading>Depositary receipts</heading><subsection eId="section-193-1"><num>(1)</num><content><p>Section 93 of the Finance Act 1986 (depositary receipts) shall be amended in accordance with the following provisions of this section.</p></content></subsection><subsection eId="section-193-2"><num>(2)</num><intro><p>In subsection (1) (charge to stamp duty reserve tax where certain things are done in pursuance of an arrangement) in paragraph (b) (transfer or issue to, or appropriation by, a person falling within subsection (3))—</p></intro><level class="para1" eId="section-193-2-a"><num>(a)</num><content><p>after “transferred or issued to” there shall be inserted “the person mentioned in paragraph (a) above or”; and</p></content></level><level class="para1" eId="section-193-2-b"><num>(b)</num><content><p>for “such a person” there shall be substituted “the person mentioned in paragraph (a) above or a person falling within subsection (3) below”.</p></content></level></subsection><subsection eId="section-193-3"><num>(3)</num><content><p>In subsection (6) (payment by instalments) in paragraph (d) (instrument received by person falling within subsection (3)) for “subsection (3)” there shall be substituted “subsection (2) or (3)”.</p></content></subsection><subsection eId="section-193-4"><num>(4)</num><intro><p>This section has effect—</p></intro><level class="para1" eId="section-193-4-a"><num>(a)</num><content><p>so far as relating to the charge to tax under section 93(1) of the <noteRef href="#m00160" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1986, where securities are transferred, issued or appropriated on or after 1st July 1996 (whenever the arrangement was made);</p></content></level><level class="para1" eId="section-193-4-b"><num>(b)</num><content><p>so far as relating to the charge to tax under section 93(10) of that Act, in relation to instalments payable on or after 1st July 1996.</p></content></level></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-193-1"><num>(1)</num><content><p>Section 93 of the Finance Act 1986 (depositary receipts) shall be amended in accordance with the following provisions of this section.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-193-2"><num>(2)</num><intro><p>In subsection (1) (charge to stamp duty reserve tax where certain things are done in pursuance of an arrangement) in paragraph (b) (transfer or issue to, or appropriation by, a person falling within subsection (3))—</p></intro><level class="para1" eId="section-193-2-a"><num>(a)</num><content><p>after “transferred or issued to” there shall be inserted “the person mentioned in paragraph (a) above or”; and</p></content></level><level class="para1" eId="section-193-2-b"><num>(b)</num><content><p>for “such a person” there shall be substituted “the person mentioned in paragraph (a) above or a person falling within subsection (3) below”.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-193-2-a"><num>(a)</num><content><p>after “transferred or issued to” there shall be inserted “the person mentioned in paragraph (a) above or”; and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-193-2-b"><num>(b)</num><content><p>for “such a person” there shall be substituted “the person mentioned in paragraph (a) above or a person falling within subsection (3) below”.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-193-3"><num>(3)</num><content><p>In subsection (6) (payment by instalments) in paragraph (d) (instrument received by person falling within subsection (3)) for “subsection (3)” there shall be substituted “subsection (2) or (3)”.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-193-4"><num>(4)</num><intro><p>This section has effect—</p></intro><level class="para1" eId="section-193-4-a"><num>(a)</num><content><p>so far as relating to the charge to tax under section 93(1) of the <noteRef href="#m00160" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1986, where securities are transferred, issued or appropriated on or after 1st July 1996 (whenever the arrangement was made);</p></content></level><level class="para1" eId="section-193-4-b"><num>(b)</num><content><p>so far as relating to the charge to tax under section 93(10) of that Act, in relation to instalments payable on or after 1st July 1996.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-193-4-a"><num>(a)</num><content><p>so far as relating to the charge to tax under section 93(1) of the <noteRef href="#m00160" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1986, where securities are transferred, issued or appropriated on or after 1st July 1996 (whenever the arrangement was made);</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-193-4-b"><num>(b)</num><content><p>so far as relating to the charge to tax under section 93(10) of that Act, in relation to instalments payable on or after 1st July 1996.</p></content></level>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-194"><num>194</num><heading>Rates of charge expressed as percentages</heading><subsection eId="section-194-1"><num>(1)</num><content><p>In section 87 of the Finance Act 1986, in subsection (6) (which specifies the rate at which stamp duty reserve tax under that section is charged) for “50p for every £100 or part of £100” there shall be substituted “0.5 per cent.”</p></content></subsection><subsection eId="section-194-2"><num>(2)</num><intro><p>In section 93 of that Act (depositary receipts)—</p></intro><level class="para1" eId="section-194-2-a"><num>(a)</num><content><p>in subsection (4) (rate of charge) for “£1.50 for every £100 or part of £100” there shall be substituted “1.5 per cent.”;</p></content></level><level class="para1" eId="section-194-2-b"><num>(b)</num><content><p>in subsection (5) (which applies subsection (4) with modifications in certain cases where the securities are transferred by a chargeable instrument) for the words from “as if “£1.50” read” onwards there shall be substituted “as if “1.5 per cent.” read “1 per cent.””; and</p></content></level><level class="para1" eId="section-194-2-c"><num>(c)</num><content><p>in subsection (10) (payment in instalments etc) in paragraph (b), for “£1.50 for every £100 or part of £100” there shall be substituted “1.5 per cent. of the amount”.</p></content></level></subsection><subsection eId="section-194-3"><num>(3)</num><content><p>Section 94(8) of that Act (which defines “the day of The Stock Exchange reforms” for the purposes of section 93(5) and which becomes unnecessary in consequence of the amendment made by subsection (2)(b) above) shall be omitted.</p></content></subsection><subsection eId="section-194-4"><num>(4)</num><intro><p>In section 96 of that Act (clearance services)—</p></intro><level class="para1" eId="section-194-4-a"><num>(a)</num><content><p>in subsection (2) (rate of charge) for “£1.50 for every £100 or part of £100” there shall be substituted “1.5 per cent.”;</p></content></level><level class="para1" eId="section-194-4-b"><num>(b)</num><content><p>in subsection (3) (which applies subsection (2) with modifications in certain cases where the securities are transferred by a chargeable instrument) for the words from “as if “£1.50” read” onwards there shall be substituted “as if “1.5 per cent.” read “1 per cent.””; and</p></content></level><level class="para1" eId="section-194-4-c"><num>(c)</num><content><p>in subsection (8) (payment in instalments etc) in paragraph (b), for “£1.50 for every £100 or part of £100” there shall be substituted “1.5 per cent. of the amount”.</p></content></level></subsection><subsection eId="section-194-5"><num>(5)</num><content><p>Section 96(12) of that Act (which defines “the day of The Stock Exchange reforms” for the purposes of subsection (3) and which becomes unnecessary in consequence of the amendment made by subsection (4)(b) above) shall be omitted.</p></content></subsection><subsection eId="section-194-6"><num>(6)</num><content><p><mod>In section 99 of that Act (interpretation) after subsection (12) there shall be added—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(13)</num><content><p>Where the calculation of any tax in accordance with the provisions of this Part results in an amount which is not a multiple of one penny, the amount so calculated shall be rounded to the nearest penny, taking any ½p as nearest to the next whole penny above.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-194-7"><num>(7)</num><intro><p>Subsections (1) to (5) above have effect in accordance with the following provisions of this subsection, that is to say—</p></intro><level class="para1" eId="section-194-7-a"><num>(a)</num><intro><p>in relation to the charge to tax under section 87 of the <noteRef href="#m00161" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1986, subsection (1) above applies where—</p></intro><level class="para2" eId="section-194-7-a-i"><num>(i)</num><content><p>the agreement to transfer is conditional and the condition is satisfied on or after 1st July 1996; or</p></content></level><level class="para2" eId="section-194-7-a-ii"><num>(ii)</num><content><p>the agreement is not conditional and is made on or after 1st July 1996;</p></content></level></level><level class="para1" eId="section-194-7-b"><num>(b)</num><content><p>in relation to the charge to tax under section 93(1) of that Act, paragraphs (a) and (b) of subsection (2) above apply where securities are transferred, issued or appropriated on or after 1st July 1996 (whenever the arrangement was made) and subsection (3) above has effect accordingly;</p></content></level><level class="para1" eId="section-194-7-c"><num>(c)</num><content><p>in relation to the charge to tax under section 93(10) of that Act, paragraph (c) of subsection (2) above applies in relation to instalments payable on or after 1st July 1996;</p></content></level><level class="para1" eId="section-194-7-d"><num>(d)</num><content><p>in relation to the charge to tax under section 96(1) of that Act, paragraphs (a) and (b) of subsection (4) above apply where securities are transferred or issued on or after 1st July 1996 (whenever the arrangement was made) and subsection (5) above has effect accordingly;</p></content></level><level class="para1" eId="section-194-7-e"><num>(e)</num><content><p>in relation to the charge to tax under section 96(8) of that Act, paragraph (c) of subsection (4) above applies in relation to instalments payable on or after 1st July 1996.</p></content></level></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-194-1"><num>(1)</num><content><p>In section 87 of the Finance Act 1986, in subsection (6) (which specifies the rate at which stamp duty reserve tax under that section is charged) for “50p for every £100 or part of £100” there shall be substituted “0.5 per cent.”</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-194-2"><num>(2)</num><intro><p>In section 93 of that Act (depositary receipts)—</p></intro><level class="para1" eId="section-194-2-a"><num>(a)</num><content><p>in subsection (4) (rate of charge) for “£1.50 for every £100 or part of £100” there shall be substituted “1.5 per cent.”;</p></content></level><level class="para1" eId="section-194-2-b"><num>(b)</num><content><p>in subsection (5) (which applies subsection (4) with modifications in certain cases where the securities are transferred by a chargeable instrument) for the words from “as if “£1.50” read” onwards there shall be substituted “as if “1.5 per cent.” read “1 per cent.””; and</p></content></level><level class="para1" eId="section-194-2-c"><num>(c)</num><content><p>in subsection (10) (payment in instalments etc) in paragraph (b), for “£1.50 for every £100 or part of £100” there shall be substituted “1.5 per cent. of the amount”.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-194-2-a"><num>(a)</num><content><p>in subsection (4) (rate of charge) for “£1.50 for every £100 or part of £100” there shall be substituted “1.5 per cent.”;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-194-2-b"><num>(b)</num><content><p>in subsection (5) (which applies subsection (4) with modifications in certain cases where the securities are transferred by a chargeable instrument) for the words from “as if “£1.50” read” onwards there shall be substituted “as if “1.5 per cent.” read “1 per cent.””; and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-194-2-c"><num>(c)</num><content><p>in subsection (10) (payment in instalments etc) in paragraph (b), for “£1.50 for every £100 or part of £100” there shall be substituted “1.5 per cent. of the amount”.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-194-3"><num>(3)</num><content><p>Section 94(8) of that Act (which defines “the day of The Stock Exchange reforms” for the purposes of section 93(5) and which becomes unnecessary in consequence of the amendment made by subsection (2)(b) above) shall be omitted.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-194-4"><num>(4)</num><intro><p>In section 96 of that Act (clearance services)—</p></intro><level class="para1" eId="section-194-4-a"><num>(a)</num><content><p>in subsection (2) (rate of charge) for “£1.50 for every £100 or part of £100” there shall be substituted “1.5 per cent.”;</p></content></level><level class="para1" eId="section-194-4-b"><num>(b)</num><content><p>in subsection (3) (which applies subsection (2) with modifications in certain cases where the securities are transferred by a chargeable instrument) for the words from “as if “£1.50” read” onwards there shall be substituted “as if “1.5 per cent.” read “1 per cent.””; and</p></content></level><level class="para1" eId="section-194-4-c"><num>(c)</num><content><p>in subsection (8) (payment in instalments etc) in paragraph (b), for “£1.50 for every £100 or part of £100” there shall be substituted “1.5 per cent. of the amount”.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-194-4-a"><num>(a)</num><content><p>in subsection (2) (rate of charge) for “£1.50 for every £100 or part of £100” there shall be substituted “1.5 per cent.”;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-194-4-b"><num>(b)</num><content><p>in subsection (3) (which applies subsection (2) with modifications in certain cases where the securities are transferred by a chargeable instrument) for the words from “as if “£1.50” read” onwards there shall be substituted “as if “1.5 per cent.” read “1 per cent.””; and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-194-4-c"><num>(c)</num><content><p>in subsection (8) (payment in instalments etc) in paragraph (b), for “£1.50 for every £100 or part of £100” there shall be substituted “1.5 per cent. of the amount”.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-194-5"><num>(5)</num><content><p>Section 96(12) of that Act (which defines “the day of The Stock Exchange reforms” for the purposes of subsection (3) and which becomes unnecessary in consequence of the amendment made by subsection (4)(b) above) shall be omitted.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-194-6"><num>(6)</num><content><p><mod>In section 99 of that Act (interpretation) after subsection (12) there shall be added—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(13)</num><content><p>Where the calculation of any tax in accordance with the provisions of this Part results in an amount which is not a multiple of one penny, the amount so calculated shall be rounded to the nearest penny, taking any ½p as nearest to the next whole penny above.</p></content></subsection></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-194-7"><num>(7)</num><intro><p>Subsections (1) to (5) above have effect in accordance with the following provisions of this subsection, that is to say—</p></intro><level class="para1" eId="section-194-7-a"><num>(a)</num><intro><p>in relation to the charge to tax under section 87 of the <noteRef href="#m00161" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1986, subsection (1) above applies where—</p></intro><level class="para2" eId="section-194-7-a-i"><num>(i)</num><content><p>the agreement to transfer is conditional and the condition is satisfied on or after 1st July 1996; or</p></content></level><level class="para2" eId="section-194-7-a-ii"><num>(ii)</num><content><p>the agreement is not conditional and is made on or after 1st July 1996;</p></content></level></level><level class="para1" eId="section-194-7-b"><num>(b)</num><content><p>in relation to the charge to tax under section 93(1) of that Act, paragraphs (a) and (b) of subsection (2) above apply where securities are transferred, issued or appropriated on or after 1st July 1996 (whenever the arrangement was made) and subsection (3) above has effect accordingly;</p></content></level><level class="para1" eId="section-194-7-c"><num>(c)</num><content><p>in relation to the charge to tax under section 93(10) of that Act, paragraph (c) of subsection (2) above applies in relation to instalments payable on or after 1st July 1996;</p></content></level><level class="para1" eId="section-194-7-d"><num>(d)</num><content><p>in relation to the charge to tax under section 96(1) of that Act, paragraphs (a) and (b) of subsection (4) above apply where securities are transferred or issued on or after 1st July 1996 (whenever the arrangement was made) and subsection (5) above has effect accordingly;</p></content></level><level class="para1" eId="section-194-7-e"><num>(e)</num><content><p>in relation to the charge to tax under section 96(8) of that Act, paragraph (c) of subsection (4) above applies in relation to instalments payable on or after 1st July 1996.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-194-7-a"><num>(a)</num><intro><p>in relation to the charge to tax under section 87 of the <noteRef href="#m00161" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1986, subsection (1) above applies where—</p></intro><level class="para2" eId="section-194-7-a-i"><num>(i)</num><content><p>the agreement to transfer is conditional and the condition is satisfied on or after 1st July 1996; or</p></content></level><level class="para2" eId="section-194-7-a-ii"><num>(ii)</num><content><p>the agreement is not conditional and is made on or after 1st July 1996;</p></content></level></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-194-7-a-i"><num>(i)</num><content><p>the agreement to transfer is conditional and the condition is satisfied on or after 1st July 1996; or</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-194-7-a-ii"><num>(ii)</num><content><p>the agreement is not conditional and is made on or after 1st July 1996;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-194-7-b"><num>(b)</num><content><p>in relation to the charge to tax under section 93(1) of that Act, paragraphs (a) and (b) of subsection (2) above apply where securities are transferred, issued or appropriated on or after 1st July 1996 (whenever the arrangement was made) and subsection (3) above has effect accordingly;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-194-7-c"><num>(c)</num><content><p>in relation to the charge to tax under section 93(10) of that Act, paragraph (c) of subsection (2) above applies in relation to instalments payable on or after 1st July 1996;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-194-7-d"><num>(d)</num><content><p>in relation to the charge to tax under section 96(1) of that Act, paragraphs (a) and (b) of subsection (4) above apply where securities are transferred or issued on or after 1st July 1996 (whenever the arrangement was made) and subsection (5) above has effect accordingly;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-194-7-e"><num>(e)</num><content><p>in relation to the charge to tax under section 96(8) of that Act, paragraph (c) of subsection (4) above applies in relation to instalments payable on or after 1st July 1996.</p></content></level>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-195"><num>195</num><heading>Regulations concerning administration: sub-delegation to the Board</heading><content><p><mod>In section 98 of the <noteRef href="#m00162" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1986 (Treasury regulations with respect to administration etc) after subsection (1) there shall be inserted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1A)</num><content><p>The power conferred on the Treasury by subsection (1) above includes power to make provision conferring or imposing on the Board functions which involve the exercise of a discretion.</p></content></subsection></quotedStructure></mod></p></content></section>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="part-VI-crossheading-clearance-services"><heading>Clearance services</heading><section eId="section-196"><num>196</num><heading>Election by operator for alternative system of charge</heading><subsection eId="section-196-1"><num>(1)</num><content><p>In section 70 of the Finance Act 1986 (clearance services) in subsection (1) (which, subject to subsection (9), makes provision with respect to stamp duty on transfers into clearance services) after “Subject to subsection (9)” there shall be inserted “and section 97A”.</p></content></subsection><subsection eId="section-196-2"><num>(2)</num><content><p>In section 96 of that Act (clearance services) in subsection (1) (which, subject to subsection (5) and section 97, provides for stamp duty reserve tax to be chargeable on transfers into clearance services) for “section 97” there shall be substituted “sections 97 and 97A”.</p></content></subsection><subsection eId="section-196-3"><num>(3)</num><content><p><mod>After section 97 of that Act (exceptions) there shall be inserted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>97A</num><heading>Clearance services: election for alternative system of charge</heading><subsection><num>(1)</num><content><p>A person whose business is or includes the provision of clearance services for the purchase and sale of chargeable securities or relevant securities (an “operator”) may, with the approval of the Board, elect that stamp duty and stamp duty reserve tax shall be chargeable in accordance with this section in connection with those clearance services.</p></content></subsection><subsection><num>(2)</num><intro><p>An election under subsection (1) above—</p></intro><level class="para1"><num>(a)</num><content><p>shall come into force on such date as may be notified to the operator by the Board in giving their approval; and</p></content></level><level class="para1"><num>(b)</num><content><p>shall continue in force unless and until it is terminated in accordance with the following provisions of this section.</p></content></level></subsection><subsection><num>(3)</num><intro><p>If and so long as an election under subsection (1) above is in force, stamp duty or stamp duty reserve tax (as the case may require) shall, in connection with the clearance services to which the election relates, be chargeable in relation to—</p></intro><level class="para1"><num>(a)</num><content><p>a transfer or issue falling within section 70(1) or 96(1) above,</p></content></level><level class="para1"><num>(b)</num><content><p>an agreement falling within section 90(4) above by virtue of section 96(1) above, or</p></content></level><level class="para1"><num>(c)</num><content><p>an agreement falling within section 90(5) above,</p></content></level><wrapUp><p>as it would be chargeable apart from sections 70, 90(4) and (5) and 96 above.</p></wrapUp></subsection><subsection><num>(4)</num><content><p>Where stamp duty or stamp duty reserve tax is chargeable by virtue of subsection (3) above in relation to a transfer, issue or agreement, sections 70, 90(4) and (5) and 96 above shall not have effect in relation to that transfer, issue or agreement.</p></content></subsection><subsection><num>(5)</num><content><p>Nothing in subsection (3) or (4) above affects the application of section 70 or 96 above in relation to a transfer falling within section 70(1) or 96(1) above by the operator or his nominee to, or to a nominee of, another operator in relation to whom no election under subsection (1) above is for the time being in force.</p></content></subsection><subsection><num>(6)</num><intro><p>The Board may require the operator, as a condition of the approval of his election under subsection (1) above, to make and maintain such arrangements as they may consider satisfactory—</p></intro><level class="para1"><num>(a)</num><content><p>for the collection of stamp duty reserve tax chargeable in accordance with this section, and</p></content></level><level class="para1"><num>(b)</num><content><p>for complying, or securing compliance, with the provisions of this Part and of regulations under section 98 below, so far as relating to such tax.</p></content></level></subsection><subsection><num>(7)</num><content><p>Where the operator is not resident in the United Kingdom and has no branch or agency in the United Kingdom, the Board may require him, as a condition of the approval of his election under subsection (1) above, to appoint and, so long as the election remains in force, maintain a tax representative.</p></content></subsection><subsection><num>(8)</num><intro><p>A person shall not be an operator’s tax representative under this section unless that person—</p></intro><level class="para1"><num>(a)</num><content><p>has a business establishment in the United Kingdom, and</p></content></level><level class="para1"><num>(b)</num><content><p>is approved by the Board.</p></content></level></subsection><subsection><num>(9)</num><intro><p>A person who is at any time an operator’s tax representative under this section—</p></intro><level class="para1"><num>(a)</num><content><p>shall be entitled to act on the operator’s behalf for the purposes of stamp duty and stamp duty reserve tax in connection with the clearance services to which the operator’s election under subsection (1) above relates,</p></content></level><level class="para1"><num>(b)</num><content><p>shall secure (where appropriate by acting on the operator’s behalf) the operator’s compliance with and discharge of the obligations and liabilities to which the operator is subject, in connection with the clearance services to which the operator’s election under subsection (1) above relates, by virtue of legislation relating to stamp duty or stamp duty reserve tax (including obligations and liabilities arising before he became the operator’s tax representative), and</p></content></level><level class="para1"><num>(c)</num><content><p>shall be personally liable in respect of any failure to secure the operator’s compliance with or discharge of any such obligation or liability, and in respect of anything done for purposes connected with acting on the operator’s behalf,</p></content></level><wrapUp><p>as if the obligations and liabilities imposed on the operator were imposed jointly and severally on the tax representative and the operator.</p></wrapUp></subsection><subsection><num>(10)</num><intro><p>An election under subsection (1) above may be terminated—</p></intro><level class="para1"><num>(a)</num><content><p>by not less than thirty days' notice given by the operator to the Board or by the Board to the operator; or</p></content></level><level class="para1"><num>(b)</num><intro><p>if there is or has been a breach of a condition of the approval of the election imposed by virtue of subsection (6) or (7) above, by a notice—</p></intro><level class="para2"><num>(i)</num><content><p>given by the Board to the operator,</p></content></level><level class="para2"><num>(ii)</num><content><p>taking effect on the giving of the notice or at such later time as may be specified in the notice, and</p></content></level><level class="para2"><num>(iii)</num><content><p>stating that it is given by reason of the breach of condition.</p></content></level></level></subsection><subsection><num>(11)</num><content><p>Where an election under subsection (1) above is terminated, section 96 above shall have effect as if chargeable securities of the same amounts and kinds as are, immediately before the termination, held by the operator or his nominee in connection with the provision of the clearance services, had, immediately after the termination, been transferred to the operator or, as the case may be, to the nominee by a transfer falling within subsection (1) of that section.</p></content></subsection><subsection><num>(12)</num><content><p>In this section “relevant securities” has the same meaning as in section 70 above.</p></content></subsection></section></quotedStructure></mod></p></content></subsection><subsection eId="section-196-4"><num>(4)</num><content><p>Section 97(2) of that Act (no charge to tax under section 96 on transfers to a stock exchange nominee or to, or to a nominee of, a recognised investment exchange or recognised clearing house) shall not have effect in relation to any transfer effected on or after 1st July 1996.</p></content></subsection><subsection eId="section-196-5"><num>(5)</num><content><p>In section 99(10) of that Act (interpretation of “chargeable securities” in sections 93, 94 and 96) for “and 96” there shall be substituted “, 96 and 97A”.</p></content></subsection><subsection eId="section-196-6"><num>(6)</num><content><p>Subsections (1), (2), (3) and (5) above shall come into force on 1st July 1996.</p></content></subsection></section></hcontainer>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-196"><num>196</num><heading>Election by operator for alternative system of charge</heading><subsection eId="section-196-1"><num>(1)</num><content><p>In section 70 of the Finance Act 1986 (clearance services) in subsection (1) (which, subject to subsection (9), makes provision with respect to stamp duty on transfers into clearance services) after “Subject to subsection (9)” there shall be inserted “and section 97A”.</p></content></subsection><subsection eId="section-196-2"><num>(2)</num><content><p>In section 96 of that Act (clearance services) in subsection (1) (which, subject to subsection (5) and section 97, provides for stamp duty reserve tax to be chargeable on transfers into clearance services) for “section 97” there shall be substituted “sections 97 and 97A”.</p></content></subsection><subsection eId="section-196-3"><num>(3)</num><content><p><mod>After section 97 of that Act (exceptions) there shall be inserted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>97A</num><heading>Clearance services: election for alternative system of charge</heading><subsection><num>(1)</num><content><p>A person whose business is or includes the provision of clearance services for the purchase and sale of chargeable securities or relevant securities (an “operator”) may, with the approval of the Board, elect that stamp duty and stamp duty reserve tax shall be chargeable in accordance with this section in connection with those clearance services.</p></content></subsection><subsection><num>(2)</num><intro><p>An election under subsection (1) above—</p></intro><level class="para1"><num>(a)</num><content><p>shall come into force on such date as may be notified to the operator by the Board in giving their approval; and</p></content></level><level class="para1"><num>(b)</num><content><p>shall continue in force unless and until it is terminated in accordance with the following provisions of this section.</p></content></level></subsection><subsection><num>(3)</num><intro><p>If and so long as an election under subsection (1) above is in force, stamp duty or stamp duty reserve tax (as the case may require) shall, in connection with the clearance services to which the election relates, be chargeable in relation to—</p></intro><level class="para1"><num>(a)</num><content><p>a transfer or issue falling within section 70(1) or 96(1) above,</p></content></level><level class="para1"><num>(b)</num><content><p>an agreement falling within section 90(4) above by virtue of section 96(1) above, or</p></content></level><level class="para1"><num>(c)</num><content><p>an agreement falling within section 90(5) above,</p></content></level><wrapUp><p>as it would be chargeable apart from sections 70, 90(4) and (5) and 96 above.</p></wrapUp></subsection><subsection><num>(4)</num><content><p>Where stamp duty or stamp duty reserve tax is chargeable by virtue of subsection (3) above in relation to a transfer, issue or agreement, sections 70, 90(4) and (5) and 96 above shall not have effect in relation to that transfer, issue or agreement.</p></content></subsection><subsection><num>(5)</num><content><p>Nothing in subsection (3) or (4) above affects the application of section 70 or 96 above in relation to a transfer falling within section 70(1) or 96(1) above by the operator or his nominee to, or to a nominee of, another operator in relation to whom no election under subsection (1) above is for the time being in force.</p></content></subsection><subsection><num>(6)</num><intro><p>The Board may require the operator, as a condition of the approval of his election under subsection (1) above, to make and maintain such arrangements as they may consider satisfactory—</p></intro><level class="para1"><num>(a)</num><content><p>for the collection of stamp duty reserve tax chargeable in accordance with this section, and</p></content></level><level class="para1"><num>(b)</num><content><p>for complying, or securing compliance, with the provisions of this Part and of regulations under section 98 below, so far as relating to such tax.</p></content></level></subsection><subsection><num>(7)</num><content><p>Where the operator is not resident in the United Kingdom and has no branch or agency in the United Kingdom, the Board may require him, as a condition of the approval of his election under subsection (1) above, to appoint and, so long as the election remains in force, maintain a tax representative.</p></content></subsection><subsection><num>(8)</num><intro><p>A person shall not be an operator’s tax representative under this section unless that person—</p></intro><level class="para1"><num>(a)</num><content><p>has a business establishment in the United Kingdom, and</p></content></level><level class="para1"><num>(b)</num><content><p>is approved by the Board.</p></content></level></subsection><subsection><num>(9)</num><intro><p>A person who is at any time an operator’s tax representative under this section—</p></intro><level class="para1"><num>(a)</num><content><p>shall be entitled to act on the operator’s behalf for the purposes of stamp duty and stamp duty reserve tax in connection with the clearance services to which the operator’s election under subsection (1) above relates,</p></content></level><level class="para1"><num>(b)</num><content><p>shall secure (where appropriate by acting on the operator’s behalf) the operator’s compliance with and discharge of the obligations and liabilities to which the operator is subject, in connection with the clearance services to which the operator’s election under subsection (1) above relates, by virtue of legislation relating to stamp duty or stamp duty reserve tax (including obligations and liabilities arising before he became the operator’s tax representative), and</p></content></level><level class="para1"><num>(c)</num><content><p>shall be personally liable in respect of any failure to secure the operator’s compliance with or discharge of any such obligation or liability, and in respect of anything done for purposes connected with acting on the operator’s behalf,</p></content></level><wrapUp><p>as if the obligations and liabilities imposed on the operator were imposed jointly and severally on the tax representative and the operator.</p></wrapUp></subsection><subsection><num>(10)</num><intro><p>An election under subsection (1) above may be terminated—</p></intro><level class="para1"><num>(a)</num><content><p>by not less than thirty days' notice given by the operator to the Board or by the Board to the operator; or</p></content></level><level class="para1"><num>(b)</num><intro><p>if there is or has been a breach of a condition of the approval of the election imposed by virtue of subsection (6) or (7) above, by a notice—</p></intro><level class="para2"><num>(i)</num><content><p>given by the Board to the operator,</p></content></level><level class="para2"><num>(ii)</num><content><p>taking effect on the giving of the notice or at such later time as may be specified in the notice, and</p></content></level><level class="para2"><num>(iii)</num><content><p>stating that it is given by reason of the breach of condition.</p></content></level></level></subsection><subsection><num>(11)</num><content><p>Where an election under subsection (1) above is terminated, section 96 above shall have effect as if chargeable securities of the same amounts and kinds as are, immediately before the termination, held by the operator or his nominee in connection with the provision of the clearance services, had, immediately after the termination, been transferred to the operator or, as the case may be, to the nominee by a transfer falling within subsection (1) of that section.</p></content></subsection><subsection><num>(12)</num><content><p>In this section “relevant securities” has the same meaning as in section 70 above.</p></content></subsection></section></quotedStructure></mod></p></content></subsection><subsection eId="section-196-4"><num>(4)</num><content><p>Section 97(2) of that Act (no charge to tax under section 96 on transfers to a stock exchange nominee or to, or to a nominee of, a recognised investment exchange or recognised clearing house) shall not have effect in relation to any transfer effected on or after 1st July 1996.</p></content></subsection><subsection eId="section-196-5"><num>(5)</num><content><p>In section 99(10) of that Act (interpretation of “chargeable securities” in sections 93, 94 and 96) for “and 96” there shall be substituted “, 96 and 97A”.</p></content></subsection><subsection eId="section-196-6"><num>(6)</num><content><p>Subsections (1), (2), (3) and (5) above shall come into force on 1st July 1996.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-196-1"><num>(1)</num><content><p>In section 70 of the Finance Act 1986 (clearance services) in subsection (1) (which, subject to subsection (9), makes provision with respect to stamp duty on transfers into clearance services) after “Subject to subsection (9)” there shall be inserted “and section 97A”.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-196-2"><num>(2)</num><content><p>In section 96 of that Act (clearance services) in subsection (1) (which, subject to subsection (5) and section 97, provides for stamp duty reserve tax to be chargeable on transfers into clearance services) for “section 97” there shall be substituted “sections 97 and 97A”.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-196-3"><num>(3)</num><content><p><mod>After section 97 of that Act (exceptions) there shall be inserted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>97A</num><heading>Clearance services: election for alternative system of charge</heading><subsection><num>(1)</num><content><p>A person whose business is or includes the provision of clearance services for the purchase and sale of chargeable securities or relevant securities (an “operator”) may, with the approval of the Board, elect that stamp duty and stamp duty reserve tax shall be chargeable in accordance with this section in connection with those clearance services.</p></content></subsection><subsection><num>(2)</num><intro><p>An election under subsection (1) above—</p></intro><level class="para1"><num>(a)</num><content><p>shall come into force on such date as may be notified to the operator by the Board in giving their approval; and</p></content></level><level class="para1"><num>(b)</num><content><p>shall continue in force unless and until it is terminated in accordance with the following provisions of this section.</p></content></level></subsection><subsection><num>(3)</num><intro><p>If and so long as an election under subsection (1) above is in force, stamp duty or stamp duty reserve tax (as the case may require) shall, in connection with the clearance services to which the election relates, be chargeable in relation to—</p></intro><level class="para1"><num>(a)</num><content><p>a transfer or issue falling within section 70(1) or 96(1) above,</p></content></level><level class="para1"><num>(b)</num><content><p>an agreement falling within section 90(4) above by virtue of section 96(1) above, or</p></content></level><level class="para1"><num>(c)</num><content><p>an agreement falling within section 90(5) above,</p></content></level><wrapUp><p>as it would be chargeable apart from sections 70, 90(4) and (5) and 96 above.</p></wrapUp></subsection><subsection><num>(4)</num><content><p>Where stamp duty or stamp duty reserve tax is chargeable by virtue of subsection (3) above in relation to a transfer, issue or agreement, sections 70, 90(4) and (5) and 96 above shall not have effect in relation to that transfer, issue or agreement.</p></content></subsection><subsection><num>(5)</num><content><p>Nothing in subsection (3) or (4) above affects the application of section 70 or 96 above in relation to a transfer falling within section 70(1) or 96(1) above by the operator or his nominee to, or to a nominee of, another operator in relation to whom no election under subsection (1) above is for the time being in force.</p></content></subsection><subsection><num>(6)</num><intro><p>The Board may require the operator, as a condition of the approval of his election under subsection (1) above, to make and maintain such arrangements as they may consider satisfactory—</p></intro><level class="para1"><num>(a)</num><content><p>for the collection of stamp duty reserve tax chargeable in accordance with this section, and</p></content></level><level class="para1"><num>(b)</num><content><p>for complying, or securing compliance, with the provisions of this Part and of regulations under section 98 below, so far as relating to such tax.</p></content></level></subsection><subsection><num>(7)</num><content><p>Where the operator is not resident in the United Kingdom and has no branch or agency in the United Kingdom, the Board may require him, as a condition of the approval of his election under subsection (1) above, to appoint and, so long as the election remains in force, maintain a tax representative.</p></content></subsection><subsection><num>(8)</num><intro><p>A person shall not be an operator’s tax representative under this section unless that person—</p></intro><level class="para1"><num>(a)</num><content><p>has a business establishment in the United Kingdom, and</p></content></level><level class="para1"><num>(b)</num><content><p>is approved by the Board.</p></content></level></subsection><subsection><num>(9)</num><intro><p>A person who is at any time an operator’s tax representative under this section—</p></intro><level class="para1"><num>(a)</num><content><p>shall be entitled to act on the operator’s behalf for the purposes of stamp duty and stamp duty reserve tax in connection with the clearance services to which the operator’s election under subsection (1) above relates,</p></content></level><level class="para1"><num>(b)</num><content><p>shall secure (where appropriate by acting on the operator’s behalf) the operator’s compliance with and discharge of the obligations and liabilities to which the operator is subject, in connection with the clearance services to which the operator’s election under subsection (1) above relates, by virtue of legislation relating to stamp duty or stamp duty reserve tax (including obligations and liabilities arising before he became the operator’s tax representative), and</p></content></level><level class="para1"><num>(c)</num><content><p>shall be personally liable in respect of any failure to secure the operator’s compliance with or discharge of any such obligation or liability, and in respect of anything done for purposes connected with acting on the operator’s behalf,</p></content></level><wrapUp><p>as if the obligations and liabilities imposed on the operator were imposed jointly and severally on the tax representative and the operator.</p></wrapUp></subsection><subsection><num>(10)</num><intro><p>An election under subsection (1) above may be terminated—</p></intro><level class="para1"><num>(a)</num><content><p>by not less than thirty days' notice given by the operator to the Board or by the Board to the operator; or</p></content></level><level class="para1"><num>(b)</num><intro><p>if there is or has been a breach of a condition of the approval of the election imposed by virtue of subsection (6) or (7) above, by a notice—</p></intro><level class="para2"><num>(i)</num><content><p>given by the Board to the operator,</p></content></level><level class="para2"><num>(ii)</num><content><p>taking effect on the giving of the notice or at such later time as may be specified in the notice, and</p></content></level><level class="para2"><num>(iii)</num><content><p>stating that it is given by reason of the breach of condition.</p></content></level></level></subsection><subsection><num>(11)</num><content><p>Where an election under subsection (1) above is terminated, section 96 above shall have effect as if chargeable securities of the same amounts and kinds as are, immediately before the termination, held by the operator or his nominee in connection with the provision of the clearance services, had, immediately after the termination, been transferred to the operator or, as the case may be, to the nominee by a transfer falling within subsection (1) of that section.</p></content></subsection><subsection><num>(12)</num><content><p>In this section “relevant securities” has the same meaning as in section 70 above.</p></content></subsection></section></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-196-4"><num>(4)</num><content><p>Section 97(2) of that Act (no charge to tax under section 96 on transfers to a stock exchange nominee or to, or to a nominee of, a recognised investment exchange or recognised clearing house) shall not have effect in relation to any transfer effected on or after 1st July 1996.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-196-5"><num>(5)</num><content><p>In section 99(10) of that Act (interpretation of “chargeable securities” in sections 93, 94 and 96) for “and 96” there shall be substituted “, 96 and 97A”.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-196-6"><num>(6)</num><content><p>Subsections (1), (2), (3) and (5) above shall come into force on 1st July 1996.</p></content></subsection>
<part xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" eId="part-VII"><num>Part VII</num><heading>Miscellaneous and supplemental</heading><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-VII-crossheading-miscellaneous-indirect-taxation"><heading>Miscellaneous: indirect taxation</heading><section eId="section-197"><num>197</num><heading>Setting of rates of interest</heading><subsection eId="section-197-1"><num>(1)</num><content><p>The rate of interest applicable for the purposes of an enactment to which this section applies shall be the rate which for the purposes of that enactment is provided for by regulations made by the Treasury under this section.</p></content></subsection><subsection eId="section-197-2"><num>(2)</num><intro><p>This section applies to—</p></intro><level class="para1" eId="section-197-2-a"><num>(a)</num><content><p>paragraphs 7 and 9 of Schedule 6 to the <noteRef href="#m00163" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1994 (interest payable to or by the Commissioners of Customs and Excise in connection with air passenger duty);</p></content></level><level class="para1" eId="section-197-2-b"><num>(b)</num><content><p>paragraphs 21 and 22 of Schedule 7 to that Act (interest on amounts of insurance premium tax and on amounts payable by the Commissioners in respect of that tax);</p></content></level><level class="para1" eId="section-197-2-c"><num>(c)</num><content><p>sections 74 and 78 of the <noteRef href="#m00164" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Value Added Tax Act 1994 (interest on VAT recovered or recoverable by assessment and interest payable in cases of official error); and</p></content></level><level class="para1" eId="section-197-2-d"><num>(d)</num><content><p>paragraphs 26 and 29 of Schedule 5 to this Act (interest payable to or by the Commissioners in connection with landfill tax).</p></content></level></subsection><subsection eId="section-197-3"><num>(3)</num><intro><p>Regulations under this section may—</p></intro><level class="para1" eId="section-197-3-a"><num>(a)</num><content><p>make different provision for different enactments or for different purposes of the same enactment,</p></content></level><level class="para1" eId="section-197-3-b"><num>(b)</num><content><p>either themselves specify a rate of interest for the purposes of an enactment or make provision for any such rate to be determined, and to change from time to time, by reference to such rate or the average of such rates as may be referred to in the regulations,</p></content></level><level class="para1" eId="section-197-3-c"><num>(c)</num><content><p>provide for rates to be reduced below, or increased above, what they otherwise would be by specified amounts or by reference to specified formulae,</p></content></level><level class="para1" eId="section-197-3-d"><num>(d)</num><content><p>provide for rates arrived at by reference to averages or formulae to be rounded up or down,</p></content></level><level class="para1" eId="section-197-3-e"><num>(e)</num><content><p>provide for circumstances in which changes of rates of interest are or are not to take place, and</p></content></level><level class="para1" eId="section-197-3-f"><num>(f)</num><content><p>provide that changes of rates are to have effect for periods beginning on or after a day determined in accordance with the regulations in relation to interest running from before that day, as well as in relation to interest running from, or from after, that day.</p></content></level></subsection><subsection eId="section-197-4"><num>(4)</num><content><p>The power to make regulations under this section shall be exercisable by statutory instrument subject to annulment in pursuance of a resolution of the House of Commons.</p></content></subsection><subsection eId="section-197-5"><num>(5)</num><intro><p>Where—</p></intro><level class="para1" eId="section-197-5-a"><num>(a)</num><content><p>regulations under this section provide, without specifying the rate determined in accordance with the regulations, for a new method of determining the rate applicable for the purposes of any enactment, or</p></content></level><level class="para1" eId="section-197-5-b"><num>(b)</num><content><p>the rate which, in accordance with regulations under this section, is the rate applicable for the purposes of any enactment changes otherwise than by virtue of the making of regulations specifying a new rate,</p></content></level><wrapUp><p>the Commissioners of Customs and Excise shall make an order specifying the new rate and the day from which, in accordance with the regulations, it has effect.</p></wrapUp></subsection><subsection eId="section-197-6"><num>(6)</num><intro><p>The words “the rate applicable under section 197 of the Finance Act 1996” shall be substituted—</p></intro><level class="para1" eId="section-197-6-a"><num>(a)</num><content><p>for the words “the specified rate” in each of paragraphs 7(1) and (3) and 9(1) of Schedule 6 to the <noteRef href="#m00165" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1994 (air passenger duty);</p></content></level><level class="para1" eId="section-197-6-b"><num>(b)</num><content><p>for the words “the prescribed rate” in each of sub-paragraphs (1) and (3) of paragraph 21 of Schedule 7 to that Act (insurance premium tax);</p></content></level><level class="para1" eId="section-197-6-c"><num>(c)</num><content><p>for the words from “such rate” onwards in sub-paragraph (2) of paragraph 22 of that Schedule; and</p></content></level><level class="para1" eId="section-197-6-d"><num>(d)</num><intro><p>in the <noteRef href="#m00166" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Value Added Tax Act 1994—</p></intro><level class="para2" eId="section-197-6-d-i"><num>(i)</num><content><p>for the words “the prescribed rate” in each of subsections (1), (2) and (4) of section 74, and</p></content></level><level class="para2" eId="section-197-6-d-ii"><num>(ii)</num><content><p>for the words from “such rates” onwards in subsection (3) of section 78.</p></content></level></level></subsection><subsection eId="section-197-7"><num>(7)</num><content><p>Subsections (1) and (6) above shall have effect for periods beginning on or after such day as the Treasury may by order made by statutory instrument appoint and shall have effect in relation to interest running from before that day, as well as in relation to interest running from, or from after, that day; and different days may be appointed under this subsection for different purposes.</p></content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-VII-crossheading-miscellaneous-direct-taxation"><heading>Miscellaneous: direct taxation</heading><section eId="section-198"><num>198</num><heading>Banks</heading><content><p>Schedule 37 to this Act (which re-defines “bank” for certain purposes, and makes related amendments) shall have effect.</p></content></section><section eId="section-199"><num>199</num><heading>Quotation or listing of securities</heading><content><p>Schedule 38 to this Act (which contains amendments of enactments referring to the quotation or listing of securities) shall have effect.</p></content></section><section eId="section-200"><num>200</num><heading>Domicile for tax purposes of overseas electors</heading><subsection eId="section-200-1"><num>(1)</num><intro><p>In determining—</p></intro><level class="para1" eId="section-200-1-a"><num>(a)</num><content><p>for the purposes of inheritance tax, income tax or capital gains tax where a person is domiciled at any time on or after 6th April 1996, or</p></content></level><level class="para1" eId="section-200-1-b"><num>(b)</num><content><p>for the purposes of section 267(1)(a) of the <noteRef href="#m00167" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Inheritance Tax Act 1984 (deemed UK domicile for three years after ceasing to be so domiciled) where a person was domiciled at any time on or after 6th April 1993,</p></content></level><wrapUp><p>there shall be disregarded any relevant action taken by that person (whether before, on or after that date) in connection with electoral rights.</p></wrapUp></subsection><subsection eId="section-200-2"><num>(2)</num><intro><p>Relevant action is taken by a person in connection with electoral rights where—</p></intro><level class="para1" eId="section-200-2-a"><num>(a)</num><content><p>he does anything with a view to, or in connection with, being registered as an overseas elector; or</p></content></level><level class="para1" eId="section-200-2-b"><num>(b)</num><content><p>when registered as an overseas elector, he votes in any election at which he is entitled to vote by virtue of being so registered.</p></content></level></subsection><subsection eId="section-200-3"><num>(3)</num><intro><p>For the purposes of this section, a person is registered as an overseas elector if he is—</p></intro><level class="para1" eId="section-200-3-a"><num>(a)</num><content><p>registered in any register mentioned in section 12(1) of the Representation of the <noteRef href="#m00168" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>People Act 1983 (right to be registered of persons entitled to vote at parliamentary elections) on account of any entitlement to vote conferred on him by section 1 of the Representation of the <noteRef href="#m00169" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>People Act 1985 (extension of parliamentary franchise to certain non-resident British citizens); or</p></content></level><level class="para1" eId="section-200-3-b"><num>(b)</num><content><p>registered under section 3 of that Act of 1985 (certain non-resident peers entitled to vote at European Parliamentary elections).</p></content></level></subsection><subsection eId="section-200-4"><num>(4)</num><intro><p>Nothing in subsection (1) above prevents regard being had, in determining the domicile of a person at any time, to any relevant action taken by him in connection with electoral rights if—</p></intro><level class="para1" eId="section-200-4-a"><num>(a)</num><content><p>his domicile at that time falls to be determined for the purpose of ascertaining his or any other person’s liability to any of the taxes mentioned in subsection (1)(a) above; and</p></content></level><level class="para1" eId="section-200-4-b"><num>(b)</num><content><p>the person whose liability is being ascertained wishes regard to be had to that action;</p></content></level><wrapUp><p>and a person’s domicile determined in accordance with any such wishes shall be taken to have been so determined for the purpose only of ascertaining the liability in question.</p></wrapUp></subsection></section><section eId="section-201"><num>201</num><heading>Enactment of Inland Revenue concessions</heading><content><p>Schedule 39 to this Act has effect for the purpose of enacting certain extra-statutory concessions relating to income tax, corporation tax, capital gains tax, and stamp duty.</p></content></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-VII-crossheading-miscellaneous-other-matters"><heading>Miscellaneous: other matters</heading><section eId="section-202"><num>202</num><heading>Gilt stripping</heading><subsection eId="section-202-1"><num>(1)</num><content><p><mod>In section 47 of the <noteRef href="#m00170" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1942 (Treasury regulations with respect to the transfer and registration of Government stock), after paragraph (bb) of subsection (1) there shall be inserted the following paragraphs—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(bc)</num><content><p>for the exchange of any such stock and bonds (whenever issued) for strips thereof;</p></content></level><level class="para1"><num>(bd)</num><content><p>for exchanges by which such strips (whether deriving from the same security or from different securities) are consolidated into a single security of a description so specified;</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-202-2"><num>(2)</num><content><p><mod>After subsection (1A) of that section (transfer of deceased persons' stocks and bonds) there shall be inserted the following subsections—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1B)</num><intro><p>In this section “strip”, in relation to any stock or bond, means a security issued under the <noteRef href="#m00171" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>National Loans Act 1968 which—</p></intro><level class="para1"><num>(a)</num><intro><p>is issued for the purpose of representing the right to, or of securing—</p></intro><level class="para2"><num>(i)</num><content><p>a payment corresponding to a payment of interest or principal remaining to be made under the stock or bond, or</p></content></level><level class="para2"><num>(ii)</num><content><p>two or more payments each corresponding to a different payment remaining to be so made;</p></content></level></level><level class="para1"><num>(b)</num><content><p>is issued in conjunction with the issue of one or more other securities which, together with that security, represent the right to, or secure, payments corresponding to every payment remaining to be made under the stock or bond; and</p></content></level><level class="para1"><num>(c)</num><content><p>is not itself a security that represents the right to, or secures, payments corresponding to a part of every payment so remaining.</p></content></level></subsection><subsection><num>(1C)</num><content><p>For the purposes of subsection (1B) of this section, where the balance has been struck for a dividend on any stock or bond, any payment to be made in respect of that dividend shall, at times falling after that balance has been struck, be treated as not being a payment remaining to be made under the stock or bond.</p></content></subsection><subsection><num>(1D)</num><intro><p>Without prejudice to the generality of the powers conferred by the preceding provisions of this section (but subject to subsection (1E) of this section), regulations made by virtue of paragraph (bc) or (bd) of subsection (1) of this section may—</p></intro><level class="para1"><num>(a)</num><content><p>provide, for the purpose of authorising the making of exchanges, for any stock or bonds to be treated as issued on such terms as may be specified in the regulations;</p></content></level><level class="para1"><num>(b)</num><content><p>contain such provision as the Treasury think fit about the circumstances in which and the conditions subject to which exchanges may be effected; and</p></content></level><level class="para1"><num>(c)</num><content><p>contain any such provision as could be contained in rules made under section 14(3) of the National Loans Act 1968 (Treasury rules as to exchange of securities).</p></content></level></subsection><subsection><num>(1E)</num><content><p>Regulations made by virtue of subsection (1)(bc) or (bd) of this section shall not make provision for the exchange of any stock or bonds, or of any strips, in any cases other than those where the exchange is at the request of the holder or in accordance with an order made by a court.</p></content></subsection><subsection><num>(1F)</num><content><p>Regulations under this section may make different provision for different cases and contain such exceptions and exclusions as the Treasury think fit; and the powers of the Treasury to make regulations under this section are without prejudice to any of their powers under the <noteRef href="#m00172" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>National Loans Act 1968.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-202-3"><num>(3)</num><content><p><mod>After section 2 of the <noteRef href="#m00173" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>National Debt (Stockholders Relief) Act 1892 (date for striking balance for a dividend on stock) there shall be inserted the following section—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>2A</num><heading>Payment of dividend on stock stripped after balance struck</heading><subsection><num>(1)</num><intro><p>Where—</p></intro><level class="para1"><num>(a)</num><content><p>any stock is exchanged for strips of that stock, and</p></content></level><level class="para1"><num>(b)</num><content><p>that exchange takes place after the balance has been struck for a dividend on that stock but before the day on which that dividend is payable,</p></content></level><wrapUp><p>any person who would have been entitled to that dividend but for the exchange shall remain entitled to that dividend notwithstanding the exchange.</p></wrapUp></subsection><subsection><num>(2)</num><content><p>The Treasury may by order made by statutory instrument provide that for the purposes of this section and section 47(1C) of the <noteRef href="#m00174" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1942, the balance for any dividend on any stock is to be deemed to be struck at a time which, by such a period as is specified in the order, precedes the time when the balance is actually struck.</p></content></subsection><subsection><num>(3)</num><content><p>A period specified in an order under subsection (2) above shall not exceed 7 days; and an order made under that subsection may make different provision for different cases.</p></content></subsection><subsection><num>(4)</num><content><p>In this section “strip”, in relation to any stock, has the meaning given by section 47 of the Finance Act 1942.</p></content></subsection></section></quotedStructure></mod></p></content></subsection><subsection eId="section-202-4"><num>(4)</num><content><p><mod>In section 16 of the National Loans Act 1968 (supplemental provisions as to national debt), after subsection (4) there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(4A)</num><content><p>In subsections (3) and (4) above the references to stock or registered bonds issued under this Act include references to a strip (within the meaning of section 47 of the Finance Act 1942) of any stock or bond (whether the stock or bond is issued under this Act or otherwise).</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-202-5"><num>(5)</num><intro><p>The Treasury may by regulations make provision for securing that enactments and subordinate legislation which—</p></intro><level class="para1" eId="section-202-5-a"><num>(a)</num><content><p>apply in relation to government securities or to any description of such securities, or</p></content></level><level class="para1" eId="section-202-5-b"><num>(b)</num><content><p>for any other purpose refer (in whatever terms) to such securities or to any description of them,</p></content></level><wrapUp><p>have effect with such modifications as the Treasury may think appropriate in consequence of the making of any provision or arrangements for, or in connection with, the issue or transfer of strips of government securities or the consolidation of such strips into other securities.</p></wrapUp></subsection><subsection eId="section-202-6"><num>(6)</num><intro><p>Regulations under subsection (5) above may—</p></intro><level class="para1" eId="section-202-6-a"><num>(a)</num><content><p>impose a charge to income tax, corporation tax, capital gains tax, inheritance tax, stamp duty or stamp duty reserve tax;</p></content></level><level class="para1" eId="section-202-6-b"><num>(b)</num><content><p>include provision applying generally to, or to any description of, enactments or subordinate legislation;</p></content></level><level class="para1" eId="section-202-6-c"><num>(c)</num><content><p>make different provision for different cases; and</p></content></level><level class="para1" eId="section-202-6-d"><num>(d)</num><content><p>contain such incidental, supplemental, consequential and transitional provision as the Treasury think appropriate.</p></content></level></subsection><subsection eId="section-202-7"><num>(7)</num><content><p>The power to make regulations under subsection (5) above shall be exercisable by statutory instrument subject to annulment in pursuance of a resolution of the House of Commons.</p></content></subsection><subsection eId="section-202-8"><num>(8)</num><content><p>Schedule 40 to this Act (which makes provision in relation to strips for taxation purposes) shall have effect.</p></content></subsection><subsection eId="section-202-9"><num>(9)</num><content><p>The enactments that may be modified by regulations under this section shall include section 95 above and the enactments contained in Schedule 40 to this Act.</p></content></subsection><subsection eId="section-202-10"><num>(10)</num><intro><p>In this section—</p></intro><hcontainer name="definition"><content><p>“government securities” means any securities included in Part I of Schedule 11 to the <noteRef href="#m00175" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1942;</p></content></hcontainer><hcontainer name="definition"><content><p>“modifications” includes amendments, additions and omissions; and</p></content></hcontainer><hcontainer name="definition"><content><p>“subordinate legislation” has the same meaning as in the <noteRef href="#m00176" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Interpretation Act 1978;</p></content></hcontainer><wrapUp><p>and expressions used in this section and in section 47 of the <noteRef href="#m00177" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1942 have the same meanings in this section as in that section.</p></wrapUp></subsection></section><section eId="section-203"><num>203</num><heading>Modification of the Agriculture Act 1993</heading><subsection eId="section-203-1"><num>(1)</num><intro><p>Part I of Schedule 2 to the <noteRef href="#m00178" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Agriculture Act 1993 (taxation provisions applying to the reorganisation of the milk marketing boards) shall have effect, and be deemed always to have had effect, in accordance with subsections (2) to (4) below where—</p></intro><level class="para1" eId="section-203-1-a"><num>(a)</num><content><p>any approved scheme has made provision as to the functions of a milk marketing board in the period after the transfers taking effect on the vesting day under section 11 of that Act;</p></content></level><level class="para1" eId="section-203-1-b"><num>(b)</num><content><p>regulations have been made by virtue of section 14(2) of that Act (provision following re-organisation) for giving effect to that provision; and</p></content></level><level class="para1" eId="section-203-1-c"><num>(c)</num><content><p>a transaction is or has been entered into by that board in pursuance of any obligation under those regulations to carry out those functions so far as they relate to a subsidiary of the board.</p></content></level></subsection><subsection eId="section-203-2"><num>(2)</num><intro><p>For the purposes of that Part of that Schedule—</p></intro><level class="para1" eId="section-203-2-a"><num>(a)</num><content><p>anything done by way of entering into the transaction, or for the purpose of carrying it out, shall be deemed to have been done under and in accordance with the scheme; and</p></content></level><level class="para1" eId="section-203-2-b"><num>(b)</num><content><p>the terms and other provisions having effect in relation to that transaction by virtue of anything contained in, or anything done in exercise of powers conferred by, any regulations under section 14(2) of the <noteRef href="#m00179" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Agriculture Act 1993 shall be deemed to be terms for which the scheme provided or, as the case may be, to be provisions of the scheme.</p></content></level></subsection><subsection eId="section-203-3"><num>(3)</num><intro><p>Sub-paragraph (1) of paragraph 16 of Schedule 2 to the Agriculture Act 1993 (distributions) shall have effect, and be deemed always to have had effect, in a case where the terms and provisions mentioned in subsection (2)(b) above involved or involve—</p></intro><level class="para1" eId="section-203-3-a"><num>(a)</num><content><p>the issue or transfer of any shares in, or securities of, any body,</p></content></level><level class="para1" eId="section-203-3-b"><num>(b)</num><content><p>the conferring of any right to a distribution out of the assets of any body,</p></content></level><level class="para1" eId="section-203-3-c"><num>(c)</num><content><p>the conferring of any right to, or to acquire, shares in any body, or</p></content></level><level class="para1" eId="section-203-3-d"><num>(d)</num><content><p>the transfer to any person of any property or rights of a milk marketing board, or of the subsidiary of such a board,</p></content></level><wrapUp><p>as if the references to the vesting day in paragraphs (a), (c), (d) and (e) of that sub-paragraph were references to the day on which the winding up of the board is completed.</p></wrapUp></subsection><subsection eId="section-203-4"><num>(4)</num><intro><p>Sub-paragraph (4) of paragraph 31 of Schedule 2 to the Agriculture Act 1993 (condition to be satisfied if body to be qualifying body by virtue of sub-paragraph (1)(c)) shall have effect, and be deemed always to have had effect, as if—</p></intro><level class="para1" eId="section-203-4-a"><num>(a)</num><content><p>the reference, in relation to a company, to 90 per cent. of its ordinary share capital were a reference to 70 per cent. of its ordinary share capital; and</p></content></level><level class="para1" eId="section-203-4-b"><num>(b)</num><content><p>the references to shares having been issued to any person included references to their having been allotted to that person.</p></content></level></subsection><subsection eId="section-203-5"><num>(5)</num><intro><p>Paragraph 1 of Schedule 2 to the Agriculture Act 1993 (tax continuity with successor bodies) shall have effect, and be deemed to have had effect, in relation to any relevant transfer after 31st December 1995 to a society registered under the <noteRef href="#m00180" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Industrial and Provident Societies Act 1965 of—</p></intro><level class="para1" eId="section-203-5-a"><num>(a)</num><content><p>a trade, or part of a trade, of a milk marketing board, or</p></content></level><level class="para1" eId="section-203-5-b"><num>(b)</num><content><p>any property, rights or liabilities of such a board,</p></content></level><wrapUp><p>as it has effect in relation to any transfer under section 11 of that Act to a qualifying body.</p></wrapUp></subsection><subsection eId="section-203-6"><num>(6)</num><intro><p>Paragraphs 16, 20, 25, 26, 28 and 29 of Schedule 2 to the Agriculture Act 1993 shall have effect, and be deemed to have had effect, in relation to any relevant transfer after 31st December 1995 of assets of a milk marketing board to a society registered under the Industrial and Provident Societies Act 1965 as if—</p></intro><level class="para1" eId="section-203-6-a"><num>(a)</num><content><p>the terms and other provisions of the transaction for effecting the transfer were contained in an approved scheme;</p></content></level><level class="para1" eId="section-203-6-b"><num>(b)</num><content><p>the society were a relevant successor of that board; and</p></content></level><level class="para1" eId="section-203-6-c"><num>(c)</num><content><p>references in those paragraphs to the vesting day were references to the day on which the winding up of the board is completed.</p></content></level></subsection><subsection eId="section-203-7"><num>(7)</num><intro><p>For the purposes of subsections (5) and (6) above, a transfer of anything to a society registered under the <noteRef href="#m00181" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Industrial and Provident Societies Act 1965 is a relevant transfer if—</p></intro><level class="para1" eId="section-203-7-a"><num>(a)</num><content><p>it is a transfer in pursuance of regulations made by virtue of section 14(2) of the <noteRef href="#m00182" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Agriculture Act 1993;</p></content></level><level class="para1" eId="section-203-7-b"><num>(b)</num><content><p>it is not a transfer of shares in a subsidiary of a milk marketing board; and</p></content></level><level class="para1" eId="section-203-7-c"><num>(c)</num><content><p>the condition mentioned in sub-paragraph (5) of paragraph 31 of Schedule 2 to that Act would have been met in relation to that society if the provision made as to the persons to whom the membership of the society is open were contained in an approved scheme providing for the transfer.</p></content></level></subsection><subsection eId="section-203-8"><num>(8)</num><content><p>Paragraph 20 of Schedule 2 to the Agriculture Act 1993 (treatment of acquisition of certain shares and securities) shall not apply, and shall be deemed never to have applied, in relation to the acquisition of any security after 31st December 1995 if the indebtedness acknowledged by that security does not fall, for the purposes of the <noteRef href="#m00183" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxation of Chargeable Gains Act 1992, to be treated as a debt on a security (as defined in section 132 of that Act of 1992).</p></content></subsection><subsection eId="section-203-9"><num>(9)</num><content><p>For the purposes of Chapter II of Part IV of this Act, so far as it has effect for any accounting period ending after 31st March 1996 in relation to any creditor relationship represented by a debenture issued on or after 31st December 1995, paragraph 25 of Schedule 2 to the Agriculture Act 1993 shall have effect as if sub-paragraph (2)(a) of that paragraph (deemed consideration for issue of debenture issued under approved scheme) were omitted.</p></content></subsection><subsection eId="section-203-10"><num>(10)</num><content><p>For the purposes of the Taxation of Chargeable Gains Act 1992, where any debenture to which paragraph 25 of Schedule 2 to the Agriculture Act 1993 applies has been or is issued at any time after 31st December 1995, the indebtedness acknowledged by that debenture shall be deemed (where that would not otherwise be the case) to be, and always to have been, a debt on a security (as defined in section 132 of that Act of 1992).</p></content></subsection><subsection eId="section-203-11"><num>(11)</num><content><p>Expressions used in this section and in Part I of the Agriculture Act 1993 have the same meanings in this section as in that Part.</p></content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-VII-crossheading-supplemental"><heading>Supplemental</heading><section eId="section-204"><num>204</num><heading>Interpretation</heading><content><p>In this Act “the Taxes Act 1988” means the <noteRef href="#m00184" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Income and Corporation Taxes Act 1988.</p></content></section><section eId="section-205"><num>205</num><heading>Repeals</heading><subsection eId="section-205-1"><num>(1)</num><content><p>The enactments mentioned in Schedule 41 to this Act (which include spent provisions) are hereby repealed to the extent specified in the third column of that Schedule.</p></content></subsection><subsection eId="section-205-2"><num>(2)</num><content><p>The repeals specified in that Schedule have effect subject to the commencement provisions and savings contained in, or referred to, in the notes set out in that Schedule.</p></content></subsection></section><section eId="section-206"><num>206</num><heading>Short title</heading><content><p>This Act may be cited as the Finance Act 1996.</p></content></section></hcontainer></part>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="part-VII-crossheading-miscellaneous-indirect-taxation"><heading>Miscellaneous: indirect taxation</heading><section eId="section-197"><num>197</num><heading>Setting of rates of interest</heading><subsection eId="section-197-1"><num>(1)</num><content><p>The rate of interest applicable for the purposes of an enactment to which this section applies shall be the rate which for the purposes of that enactment is provided for by regulations made by the Treasury under this section.</p></content></subsection><subsection eId="section-197-2"><num>(2)</num><intro><p>This section applies to—</p></intro><level class="para1" eId="section-197-2-a"><num>(a)</num><content><p>paragraphs 7 and 9 of Schedule 6 to the <noteRef href="#m00163" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1994 (interest payable to or by the Commissioners of Customs and Excise in connection with air passenger duty);</p></content></level><level class="para1" eId="section-197-2-b"><num>(b)</num><content><p>paragraphs 21 and 22 of Schedule 7 to that Act (interest on amounts of insurance premium tax and on amounts payable by the Commissioners in respect of that tax);</p></content></level><level class="para1" eId="section-197-2-c"><num>(c)</num><content><p>sections 74 and 78 of the <noteRef href="#m00164" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Value Added Tax Act 1994 (interest on VAT recovered or recoverable by assessment and interest payable in cases of official error); and</p></content></level><level class="para1" eId="section-197-2-d"><num>(d)</num><content><p>paragraphs 26 and 29 of Schedule 5 to this Act (interest payable to or by the Commissioners in connection with landfill tax).</p></content></level></subsection><subsection eId="section-197-3"><num>(3)</num><intro><p>Regulations under this section may—</p></intro><level class="para1" eId="section-197-3-a"><num>(a)</num><content><p>make different provision for different enactments or for different purposes of the same enactment,</p></content></level><level class="para1" eId="section-197-3-b"><num>(b)</num><content><p>either themselves specify a rate of interest for the purposes of an enactment or make provision for any such rate to be determined, and to change from time to time, by reference to such rate or the average of such rates as may be referred to in the regulations,</p></content></level><level class="para1" eId="section-197-3-c"><num>(c)</num><content><p>provide for rates to be reduced below, or increased above, what they otherwise would be by specified amounts or by reference to specified formulae,</p></content></level><level class="para1" eId="section-197-3-d"><num>(d)</num><content><p>provide for rates arrived at by reference to averages or formulae to be rounded up or down,</p></content></level><level class="para1" eId="section-197-3-e"><num>(e)</num><content><p>provide for circumstances in which changes of rates of interest are or are not to take place, and</p></content></level><level class="para1" eId="section-197-3-f"><num>(f)</num><content><p>provide that changes of rates are to have effect for periods beginning on or after a day determined in accordance with the regulations in relation to interest running from before that day, as well as in relation to interest running from, or from after, that day.</p></content></level></subsection><subsection eId="section-197-4"><num>(4)</num><content><p>The power to make regulations under this section shall be exercisable by statutory instrument subject to annulment in pursuance of a resolution of the House of Commons.</p></content></subsection><subsection eId="section-197-5"><num>(5)</num><intro><p>Where—</p></intro><level class="para1" eId="section-197-5-a"><num>(a)</num><content><p>regulations under this section provide, without specifying the rate determined in accordance with the regulations, for a new method of determining the rate applicable for the purposes of any enactment, or</p></content></level><level class="para1" eId="section-197-5-b"><num>(b)</num><content><p>the rate which, in accordance with regulations under this section, is the rate applicable for the purposes of any enactment changes otherwise than by virtue of the making of regulations specifying a new rate,</p></content></level><wrapUp><p>the Commissioners of Customs and Excise shall make an order specifying the new rate and the day from which, in accordance with the regulations, it has effect.</p></wrapUp></subsection><subsection eId="section-197-6"><num>(6)</num><intro><p>The words “the rate applicable under section 197 of the Finance Act 1996” shall be substituted—</p></intro><level class="para1" eId="section-197-6-a"><num>(a)</num><content><p>for the words “the specified rate” in each of paragraphs 7(1) and (3) and 9(1) of Schedule 6 to the <noteRef href="#m00165" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1994 (air passenger duty);</p></content></level><level class="para1" eId="section-197-6-b"><num>(b)</num><content><p>for the words “the prescribed rate” in each of sub-paragraphs (1) and (3) of paragraph 21 of Schedule 7 to that Act (insurance premium tax);</p></content></level><level class="para1" eId="section-197-6-c"><num>(c)</num><content><p>for the words from “such rate” onwards in sub-paragraph (2) of paragraph 22 of that Schedule; and</p></content></level><level class="para1" eId="section-197-6-d"><num>(d)</num><intro><p>in the <noteRef href="#m00166" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Value Added Tax Act 1994—</p></intro><level class="para2" eId="section-197-6-d-i"><num>(i)</num><content><p>for the words “the prescribed rate” in each of subsections (1), (2) and (4) of section 74, and</p></content></level><level class="para2" eId="section-197-6-d-ii"><num>(ii)</num><content><p>for the words from “such rates” onwards in subsection (3) of section 78.</p></content></level></level></subsection><subsection eId="section-197-7"><num>(7)</num><content><p>Subsections (1) and (6) above shall have effect for periods beginning on or after such day as the Treasury may by order made by statutory instrument appoint and shall have effect in relation to interest running from before that day, as well as in relation to interest running from, or from after, that day; and different days may be appointed under this subsection for different purposes.</p></content></subsection></section></hcontainer>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-197"><num>197</num><heading>Setting of rates of interest</heading><subsection eId="section-197-1"><num>(1)</num><content><p>The rate of interest applicable for the purposes of an enactment to which this section applies shall be the rate which for the purposes of that enactment is provided for by regulations made by the Treasury under this section.</p></content></subsection><subsection eId="section-197-2"><num>(2)</num><intro><p>This section applies to—</p></intro><level class="para1" eId="section-197-2-a"><num>(a)</num><content><p>paragraphs 7 and 9 of Schedule 6 to the <noteRef href="#m00163" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1994 (interest payable to or by the Commissioners of Customs and Excise in connection with air passenger duty);</p></content></level><level class="para1" eId="section-197-2-b"><num>(b)</num><content><p>paragraphs 21 and 22 of Schedule 7 to that Act (interest on amounts of insurance premium tax and on amounts payable by the Commissioners in respect of that tax);</p></content></level><level class="para1" eId="section-197-2-c"><num>(c)</num><content><p>sections 74 and 78 of the <noteRef href="#m00164" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Value Added Tax Act 1994 (interest on VAT recovered or recoverable by assessment and interest payable in cases of official error); and</p></content></level><level class="para1" eId="section-197-2-d"><num>(d)</num><content><p>paragraphs 26 and 29 of Schedule 5 to this Act (interest payable to or by the Commissioners in connection with landfill tax).</p></content></level></subsection><subsection eId="section-197-3"><num>(3)</num><intro><p>Regulations under this section may—</p></intro><level class="para1" eId="section-197-3-a"><num>(a)</num><content><p>make different provision for different enactments or for different purposes of the same enactment,</p></content></level><level class="para1" eId="section-197-3-b"><num>(b)</num><content><p>either themselves specify a rate of interest for the purposes of an enactment or make provision for any such rate to be determined, and to change from time to time, by reference to such rate or the average of such rates as may be referred to in the regulations,</p></content></level><level class="para1" eId="section-197-3-c"><num>(c)</num><content><p>provide for rates to be reduced below, or increased above, what they otherwise would be by specified amounts or by reference to specified formulae,</p></content></level><level class="para1" eId="section-197-3-d"><num>(d)</num><content><p>provide for rates arrived at by reference to averages or formulae to be rounded up or down,</p></content></level><level class="para1" eId="section-197-3-e"><num>(e)</num><content><p>provide for circumstances in which changes of rates of interest are or are not to take place, and</p></content></level><level class="para1" eId="section-197-3-f"><num>(f)</num><content><p>provide that changes of rates are to have effect for periods beginning on or after a day determined in accordance with the regulations in relation to interest running from before that day, as well as in relation to interest running from, or from after, that day.</p></content></level></subsection><subsection eId="section-197-4"><num>(4)</num><content><p>The power to make regulations under this section shall be exercisable by statutory instrument subject to annulment in pursuance of a resolution of the House of Commons.</p></content></subsection><subsection eId="section-197-5"><num>(5)</num><intro><p>Where—</p></intro><level class="para1" eId="section-197-5-a"><num>(a)</num><content><p>regulations under this section provide, without specifying the rate determined in accordance with the regulations, for a new method of determining the rate applicable for the purposes of any enactment, or</p></content></level><level class="para1" eId="section-197-5-b"><num>(b)</num><content><p>the rate which, in accordance with regulations under this section, is the rate applicable for the purposes of any enactment changes otherwise than by virtue of the making of regulations specifying a new rate,</p></content></level><wrapUp><p>the Commissioners of Customs and Excise shall make an order specifying the new rate and the day from which, in accordance with the regulations, it has effect.</p></wrapUp></subsection><subsection eId="section-197-6"><num>(6)</num><intro><p>The words “the rate applicable under section 197 of the Finance Act 1996” shall be substituted—</p></intro><level class="para1" eId="section-197-6-a"><num>(a)</num><content><p>for the words “the specified rate” in each of paragraphs 7(1) and (3) and 9(1) of Schedule 6 to the <noteRef href="#m00165" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1994 (air passenger duty);</p></content></level><level class="para1" eId="section-197-6-b"><num>(b)</num><content><p>for the words “the prescribed rate” in each of sub-paragraphs (1) and (3) of paragraph 21 of Schedule 7 to that Act (insurance premium tax);</p></content></level><level class="para1" eId="section-197-6-c"><num>(c)</num><content><p>for the words from “such rate” onwards in sub-paragraph (2) of paragraph 22 of that Schedule; and</p></content></level><level class="para1" eId="section-197-6-d"><num>(d)</num><intro><p>in the <noteRef href="#m00166" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Value Added Tax Act 1994—</p></intro><level class="para2" eId="section-197-6-d-i"><num>(i)</num><content><p>for the words “the prescribed rate” in each of subsections (1), (2) and (4) of section 74, and</p></content></level><level class="para2" eId="section-197-6-d-ii"><num>(ii)</num><content><p>for the words from “such rates” onwards in subsection (3) of section 78.</p></content></level></level></subsection><subsection eId="section-197-7"><num>(7)</num><content><p>Subsections (1) and (6) above shall have effect for periods beginning on or after such day as the Treasury may by order made by statutory instrument appoint and shall have effect in relation to interest running from before that day, as well as in relation to interest running from, or from after, that day; and different days may be appointed under this subsection for different purposes.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-197-1"><num>(1)</num><content><p>The rate of interest applicable for the purposes of an enactment to which this section applies shall be the rate which for the purposes of that enactment is provided for by regulations made by the Treasury under this section.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-197-2"><num>(2)</num><intro><p>This section applies to—</p></intro><level class="para1" eId="section-197-2-a"><num>(a)</num><content><p>paragraphs 7 and 9 of Schedule 6 to the <noteRef href="#m00163" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1994 (interest payable to or by the Commissioners of Customs and Excise in connection with air passenger duty);</p></content></level><level class="para1" eId="section-197-2-b"><num>(b)</num><content><p>paragraphs 21 and 22 of Schedule 7 to that Act (interest on amounts of insurance premium tax and on amounts payable by the Commissioners in respect of that tax);</p></content></level><level class="para1" eId="section-197-2-c"><num>(c)</num><content><p>sections 74 and 78 of the <noteRef href="#m00164" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Value Added Tax Act 1994 (interest on VAT recovered or recoverable by assessment and interest payable in cases of official error); and</p></content></level><level class="para1" eId="section-197-2-d"><num>(d)</num><content><p>paragraphs 26 and 29 of Schedule 5 to this Act (interest payable to or by the Commissioners in connection with landfill tax).</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-197-2-a"><num>(a)</num><content><p>paragraphs 7 and 9 of Schedule 6 to the <noteRef href="#m00163" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1994 (interest payable to or by the Commissioners of Customs and Excise in connection with air passenger duty);</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-197-2-b"><num>(b)</num><content><p>paragraphs 21 and 22 of Schedule 7 to that Act (interest on amounts of insurance premium tax and on amounts payable by the Commissioners in respect of that tax);</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-197-2-c"><num>(c)</num><content><p>sections 74 and 78 of the <noteRef href="#m00164" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Value Added Tax Act 1994 (interest on VAT recovered or recoverable by assessment and interest payable in cases of official error); and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-197-2-d"><num>(d)</num><content><p>paragraphs 26 and 29 of Schedule 5 to this Act (interest payable to or by the Commissioners in connection with landfill tax).</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-197-3"><num>(3)</num><intro><p>Regulations under this section may—</p></intro><level class="para1" eId="section-197-3-a"><num>(a)</num><content><p>make different provision for different enactments or for different purposes of the same enactment,</p></content></level><level class="para1" eId="section-197-3-b"><num>(b)</num><content><p>either themselves specify a rate of interest for the purposes of an enactment or make provision for any such rate to be determined, and to change from time to time, by reference to such rate or the average of such rates as may be referred to in the regulations,</p></content></level><level class="para1" eId="section-197-3-c"><num>(c)</num><content><p>provide for rates to be reduced below, or increased above, what they otherwise would be by specified amounts or by reference to specified formulae,</p></content></level><level class="para1" eId="section-197-3-d"><num>(d)</num><content><p>provide for rates arrived at by reference to averages or formulae to be rounded up or down,</p></content></level><level class="para1" eId="section-197-3-e"><num>(e)</num><content><p>provide for circumstances in which changes of rates of interest are or are not to take place, and</p></content></level><level class="para1" eId="section-197-3-f"><num>(f)</num><content><p>provide that changes of rates are to have effect for periods beginning on or after a day determined in accordance with the regulations in relation to interest running from before that day, as well as in relation to interest running from, or from after, that day.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-197-3-a"><num>(a)</num><content><p>make different provision for different enactments or for different purposes of the same enactment,</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-197-3-b"><num>(b)</num><content><p>either themselves specify a rate of interest for the purposes of an enactment or make provision for any such rate to be determined, and to change from time to time, by reference to such rate or the average of such rates as may be referred to in the regulations,</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-197-3-c"><num>(c)</num><content><p>provide for rates to be reduced below, or increased above, what they otherwise would be by specified amounts or by reference to specified formulae,</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-197-3-d"><num>(d)</num><content><p>provide for rates arrived at by reference to averages or formulae to be rounded up or down,</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-197-3-e"><num>(e)</num><content><p>provide for circumstances in which changes of rates of interest are or are not to take place, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-197-3-f"><num>(f)</num><content><p>provide that changes of rates are to have effect for periods beginning on or after a day determined in accordance with the regulations in relation to interest running from before that day, as well as in relation to interest running from, or from after, that day.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-197-4"><num>(4)</num><content><p>The power to make regulations under this section shall be exercisable by statutory instrument subject to annulment in pursuance of a resolution of the House of Commons.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-197-5"><num>(5)</num><intro><p>Where—</p></intro><level class="para1" eId="section-197-5-a"><num>(a)</num><content><p>regulations under this section provide, without specifying the rate determined in accordance with the regulations, for a new method of determining the rate applicable for the purposes of any enactment, or</p></content></level><level class="para1" eId="section-197-5-b"><num>(b)</num><content><p>the rate which, in accordance with regulations under this section, is the rate applicable for the purposes of any enactment changes otherwise than by virtue of the making of regulations specifying a new rate,</p></content></level><wrapUp><p>the Commissioners of Customs and Excise shall make an order specifying the new rate and the day from which, in accordance with the regulations, it has effect.</p></wrapUp></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-197-5-a"><num>(a)</num><content><p>regulations under this section provide, without specifying the rate determined in accordance with the regulations, for a new method of determining the rate applicable for the purposes of any enactment, or</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-197-5-b"><num>(b)</num><content><p>the rate which, in accordance with regulations under this section, is the rate applicable for the purposes of any enactment changes otherwise than by virtue of the making of regulations specifying a new rate,</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-197-6"><num>(6)</num><intro><p>The words “the rate applicable under section 197 of the Finance Act 1996” shall be substituted—</p></intro><level class="para1" eId="section-197-6-a"><num>(a)</num><content><p>for the words “the specified rate” in each of paragraphs 7(1) and (3) and 9(1) of Schedule 6 to the <noteRef href="#m00165" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1994 (air passenger duty);</p></content></level><level class="para1" eId="section-197-6-b"><num>(b)</num><content><p>for the words “the prescribed rate” in each of sub-paragraphs (1) and (3) of paragraph 21 of Schedule 7 to that Act (insurance premium tax);</p></content></level><level class="para1" eId="section-197-6-c"><num>(c)</num><content><p>for the words from “such rate” onwards in sub-paragraph (2) of paragraph 22 of that Schedule; and</p></content></level><level class="para1" eId="section-197-6-d"><num>(d)</num><intro><p>in the <noteRef href="#m00166" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Value Added Tax Act 1994—</p></intro><level class="para2" eId="section-197-6-d-i"><num>(i)</num><content><p>for the words “the prescribed rate” in each of subsections (1), (2) and (4) of section 74, and</p></content></level><level class="para2" eId="section-197-6-d-ii"><num>(ii)</num><content><p>for the words from “such rates” onwards in subsection (3) of section 78.</p></content></level></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-197-6-a"><num>(a)</num><content><p>for the words “the specified rate” in each of paragraphs 7(1) and (3) and 9(1) of Schedule 6 to the <noteRef href="#m00165" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1994 (air passenger duty);</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-197-6-b"><num>(b)</num><content><p>for the words “the prescribed rate” in each of sub-paragraphs (1) and (3) of paragraph 21 of Schedule 7 to that Act (insurance premium tax);</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-197-6-c"><num>(c)</num><content><p>for the words from “such rate” onwards in sub-paragraph (2) of paragraph 22 of that Schedule; and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-197-6-d"><num>(d)</num><intro><p>in the <noteRef href="#m00166" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Value Added Tax Act 1994—</p></intro><level class="para2" eId="section-197-6-d-i"><num>(i)</num><content><p>for the words “the prescribed rate” in each of subsections (1), (2) and (4) of section 74, and</p></content></level><level class="para2" eId="section-197-6-d-ii"><num>(ii)</num><content><p>for the words from “such rates” onwards in subsection (3) of section 78.</p></content></level></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-197-6-d-i"><num>(i)</num><content><p>for the words “the prescribed rate” in each of subsections (1), (2) and (4) of section 74, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-197-6-d-ii"><num>(ii)</num><content><p>for the words from “such rates” onwards in subsection (3) of section 78.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-197-7"><num>(7)</num><content><p>Subsections (1) and (6) above shall have effect for periods beginning on or after such day as the Treasury may by order made by statutory instrument appoint and shall have effect in relation to interest running from before that day, as well as in relation to interest running from, or from after, that day; and different days may be appointed under this subsection for different purposes.</p></content></subsection>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="part-VII-crossheading-miscellaneous-direct-taxation"><heading>Miscellaneous: direct taxation</heading><section eId="section-198"><num>198</num><heading>Banks</heading><content><p>Schedule 37 to this Act (which re-defines “bank” for certain purposes, and makes related amendments) shall have effect.</p></content></section><section eId="section-199"><num>199</num><heading>Quotation or listing of securities</heading><content><p>Schedule 38 to this Act (which contains amendments of enactments referring to the quotation or listing of securities) shall have effect.</p></content></section><section eId="section-200"><num>200</num><heading>Domicile for tax purposes of overseas electors</heading><subsection eId="section-200-1"><num>(1)</num><intro><p>In determining—</p></intro><level class="para1" eId="section-200-1-a"><num>(a)</num><content><p>for the purposes of inheritance tax, income tax or capital gains tax where a person is domiciled at any time on or after 6th April 1996, or</p></content></level><level class="para1" eId="section-200-1-b"><num>(b)</num><content><p>for the purposes of section 267(1)(a) of the <noteRef href="#m00167" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Inheritance Tax Act 1984 (deemed UK domicile for three years after ceasing to be so domiciled) where a person was domiciled at any time on or after 6th April 1993,</p></content></level><wrapUp><p>there shall be disregarded any relevant action taken by that person (whether before, on or after that date) in connection with electoral rights.</p></wrapUp></subsection><subsection eId="section-200-2"><num>(2)</num><intro><p>Relevant action is taken by a person in connection with electoral rights where—</p></intro><level class="para1" eId="section-200-2-a"><num>(a)</num><content><p>he does anything with a view to, or in connection with, being registered as an overseas elector; or</p></content></level><level class="para1" eId="section-200-2-b"><num>(b)</num><content><p>when registered as an overseas elector, he votes in any election at which he is entitled to vote by virtue of being so registered.</p></content></level></subsection><subsection eId="section-200-3"><num>(3)</num><intro><p>For the purposes of this section, a person is registered as an overseas elector if he is—</p></intro><level class="para1" eId="section-200-3-a"><num>(a)</num><content><p>registered in any register mentioned in section 12(1) of the Representation of the <noteRef href="#m00168" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>People Act 1983 (right to be registered of persons entitled to vote at parliamentary elections) on account of any entitlement to vote conferred on him by section 1 of the Representation of the <noteRef href="#m00169" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>People Act 1985 (extension of parliamentary franchise to certain non-resident British citizens); or</p></content></level><level class="para1" eId="section-200-3-b"><num>(b)</num><content><p>registered under section 3 of that Act of 1985 (certain non-resident peers entitled to vote at European Parliamentary elections).</p></content></level></subsection><subsection eId="section-200-4"><num>(4)</num><intro><p>Nothing in subsection (1) above prevents regard being had, in determining the domicile of a person at any time, to any relevant action taken by him in connection with electoral rights if—</p></intro><level class="para1" eId="section-200-4-a"><num>(a)</num><content><p>his domicile at that time falls to be determined for the purpose of ascertaining his or any other person’s liability to any of the taxes mentioned in subsection (1)(a) above; and</p></content></level><level class="para1" eId="section-200-4-b"><num>(b)</num><content><p>the person whose liability is being ascertained wishes regard to be had to that action;</p></content></level><wrapUp><p>and a person’s domicile determined in accordance with any such wishes shall be taken to have been so determined for the purpose only of ascertaining the liability in question.</p></wrapUp></subsection></section><section eId="section-201"><num>201</num><heading>Enactment of Inland Revenue concessions</heading><content><p>Schedule 39 to this Act has effect for the purpose of enacting certain extra-statutory concessions relating to income tax, corporation tax, capital gains tax, and stamp duty.</p></content></section></hcontainer>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-198"><num>198</num><heading>Banks</heading><content><p>Schedule 37 to this Act (which re-defines “bank” for certain purposes, and makes related amendments) shall have effect.</p></content></section>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-199"><num>199</num><heading>Quotation or listing of securities</heading><content><p>Schedule 38 to this Act (which contains amendments of enactments referring to the quotation or listing of securities) shall have effect.</p></content></section>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-200"><num>200</num><heading>Domicile for tax purposes of overseas electors</heading><subsection eId="section-200-1"><num>(1)</num><intro><p>In determining—</p></intro><level class="para1" eId="section-200-1-a"><num>(a)</num><content><p>for the purposes of inheritance tax, income tax or capital gains tax where a person is domiciled at any time on or after 6th April 1996, or</p></content></level><level class="para1" eId="section-200-1-b"><num>(b)</num><content><p>for the purposes of section 267(1)(a) of the <noteRef href="#m00167" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Inheritance Tax Act 1984 (deemed UK domicile for three years after ceasing to be so domiciled) where a person was domiciled at any time on or after 6th April 1993,</p></content></level><wrapUp><p>there shall be disregarded any relevant action taken by that person (whether before, on or after that date) in connection with electoral rights.</p></wrapUp></subsection><subsection eId="section-200-2"><num>(2)</num><intro><p>Relevant action is taken by a person in connection with electoral rights where—</p></intro><level class="para1" eId="section-200-2-a"><num>(a)</num><content><p>he does anything with a view to, or in connection with, being registered as an overseas elector; or</p></content></level><level class="para1" eId="section-200-2-b"><num>(b)</num><content><p>when registered as an overseas elector, he votes in any election at which he is entitled to vote by virtue of being so registered.</p></content></level></subsection><subsection eId="section-200-3"><num>(3)</num><intro><p>For the purposes of this section, a person is registered as an overseas elector if he is—</p></intro><level class="para1" eId="section-200-3-a"><num>(a)</num><content><p>registered in any register mentioned in section 12(1) of the Representation of the <noteRef href="#m00168" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>People Act 1983 (right to be registered of persons entitled to vote at parliamentary elections) on account of any entitlement to vote conferred on him by section 1 of the Representation of the <noteRef href="#m00169" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>People Act 1985 (extension of parliamentary franchise to certain non-resident British citizens); or</p></content></level><level class="para1" eId="section-200-3-b"><num>(b)</num><content><p>registered under section 3 of that Act of 1985 (certain non-resident peers entitled to vote at European Parliamentary elections).</p></content></level></subsection><subsection eId="section-200-4"><num>(4)</num><intro><p>Nothing in subsection (1) above prevents regard being had, in determining the domicile of a person at any time, to any relevant action taken by him in connection with electoral rights if—</p></intro><level class="para1" eId="section-200-4-a"><num>(a)</num><content><p>his domicile at that time falls to be determined for the purpose of ascertaining his or any other person’s liability to any of the taxes mentioned in subsection (1)(a) above; and</p></content></level><level class="para1" eId="section-200-4-b"><num>(b)</num><content><p>the person whose liability is being ascertained wishes regard to be had to that action;</p></content></level><wrapUp><p>and a person’s domicile determined in accordance with any such wishes shall be taken to have been so determined for the purpose only of ascertaining the liability in question.</p></wrapUp></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-200-1"><num>(1)</num><intro><p>In determining—</p></intro><level class="para1" eId="section-200-1-a"><num>(a)</num><content><p>for the purposes of inheritance tax, income tax or capital gains tax where a person is domiciled at any time on or after 6th April 1996, or</p></content></level><level class="para1" eId="section-200-1-b"><num>(b)</num><content><p>for the purposes of section 267(1)(a) of the <noteRef href="#m00167" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Inheritance Tax Act 1984 (deemed UK domicile for three years after ceasing to be so domiciled) where a person was domiciled at any time on or after 6th April 1993,</p></content></level><wrapUp><p>there shall be disregarded any relevant action taken by that person (whether before, on or after that date) in connection with electoral rights.</p></wrapUp></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-200-1-a"><num>(a)</num><content><p>for the purposes of inheritance tax, income tax or capital gains tax where a person is domiciled at any time on or after 6th April 1996, or</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-200-1-b"><num>(b)</num><content><p>for the purposes of section 267(1)(a) of the <noteRef href="#m00167" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Inheritance Tax Act 1984 (deemed UK domicile for three years after ceasing to be so domiciled) where a person was domiciled at any time on or after 6th April 1993,</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-200-2"><num>(2)</num><intro><p>Relevant action is taken by a person in connection with electoral rights where—</p></intro><level class="para1" eId="section-200-2-a"><num>(a)</num><content><p>he does anything with a view to, or in connection with, being registered as an overseas elector; or</p></content></level><level class="para1" eId="section-200-2-b"><num>(b)</num><content><p>when registered as an overseas elector, he votes in any election at which he is entitled to vote by virtue of being so registered.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-200-2-a"><num>(a)</num><content><p>he does anything with a view to, or in connection with, being registered as an overseas elector; or</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-200-2-b"><num>(b)</num><content><p>when registered as an overseas elector, he votes in any election at which he is entitled to vote by virtue of being so registered.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-200-3"><num>(3)</num><intro><p>For the purposes of this section, a person is registered as an overseas elector if he is—</p></intro><level class="para1" eId="section-200-3-a"><num>(a)</num><content><p>registered in any register mentioned in section 12(1) of the Representation of the <noteRef href="#m00168" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>People Act 1983 (right to be registered of persons entitled to vote at parliamentary elections) on account of any entitlement to vote conferred on him by section 1 of the Representation of the <noteRef href="#m00169" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>People Act 1985 (extension of parliamentary franchise to certain non-resident British citizens); or</p></content></level><level class="para1" eId="section-200-3-b"><num>(b)</num><content><p>registered under section 3 of that Act of 1985 (certain non-resident peers entitled to vote at European Parliamentary elections).</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-200-3-a"><num>(a)</num><content><p>registered in any register mentioned in section 12(1) of the Representation of the <noteRef href="#m00168" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>People Act 1983 (right to be registered of persons entitled to vote at parliamentary elections) on account of any entitlement to vote conferred on him by section 1 of the Representation of the <noteRef href="#m00169" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>People Act 1985 (extension of parliamentary franchise to certain non-resident British citizens); or</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-200-3-b"><num>(b)</num><content><p>registered under section 3 of that Act of 1985 (certain non-resident peers entitled to vote at European Parliamentary elections).</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-200-4"><num>(4)</num><intro><p>Nothing in subsection (1) above prevents regard being had, in determining the domicile of a person at any time, to any relevant action taken by him in connection with electoral rights if—</p></intro><level class="para1" eId="section-200-4-a"><num>(a)</num><content><p>his domicile at that time falls to be determined for the purpose of ascertaining his or any other person’s liability to any of the taxes mentioned in subsection (1)(a) above; and</p></content></level><level class="para1" eId="section-200-4-b"><num>(b)</num><content><p>the person whose liability is being ascertained wishes regard to be had to that action;</p></content></level><wrapUp><p>and a person’s domicile determined in accordance with any such wishes shall be taken to have been so determined for the purpose only of ascertaining the liability in question.</p></wrapUp></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-200-4-a"><num>(a)</num><content><p>his domicile at that time falls to be determined for the purpose of ascertaining his or any other person’s liability to any of the taxes mentioned in subsection (1)(a) above; and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-200-4-b"><num>(b)</num><content><p>the person whose liability is being ascertained wishes regard to be had to that action;</p></content></level>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-201"><num>201</num><heading>Enactment of Inland Revenue concessions</heading><content><p>Schedule 39 to this Act has effect for the purpose of enacting certain extra-statutory concessions relating to income tax, corporation tax, capital gains tax, and stamp duty.</p></content></section>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="part-VII-crossheading-miscellaneous-other-matters"><heading>Miscellaneous: other matters</heading><section eId="section-202"><num>202</num><heading>Gilt stripping</heading><subsection eId="section-202-1"><num>(1)</num><content><p><mod>In section 47 of the <noteRef href="#m00170" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1942 (Treasury regulations with respect to the transfer and registration of Government stock), after paragraph (bb) of subsection (1) there shall be inserted the following paragraphs—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(bc)</num><content><p>for the exchange of any such stock and bonds (whenever issued) for strips thereof;</p></content></level><level class="para1"><num>(bd)</num><content><p>for exchanges by which such strips (whether deriving from the same security or from different securities) are consolidated into a single security of a description so specified;</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-202-2"><num>(2)</num><content><p><mod>After subsection (1A) of that section (transfer of deceased persons' stocks and bonds) there shall be inserted the following subsections—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1B)</num><intro><p>In this section “strip”, in relation to any stock or bond, means a security issued under the <noteRef href="#m00171" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>National Loans Act 1968 which—</p></intro><level class="para1"><num>(a)</num><intro><p>is issued for the purpose of representing the right to, or of securing—</p></intro><level class="para2"><num>(i)</num><content><p>a payment corresponding to a payment of interest or principal remaining to be made under the stock or bond, or</p></content></level><level class="para2"><num>(ii)</num><content><p>two or more payments each corresponding to a different payment remaining to be so made;</p></content></level></level><level class="para1"><num>(b)</num><content><p>is issued in conjunction with the issue of one or more other securities which, together with that security, represent the right to, or secure, payments corresponding to every payment remaining to be made under the stock or bond; and</p></content></level><level class="para1"><num>(c)</num><content><p>is not itself a security that represents the right to, or secures, payments corresponding to a part of every payment so remaining.</p></content></level></subsection><subsection><num>(1C)</num><content><p>For the purposes of subsection (1B) of this section, where the balance has been struck for a dividend on any stock or bond, any payment to be made in respect of that dividend shall, at times falling after that balance has been struck, be treated as not being a payment remaining to be made under the stock or bond.</p></content></subsection><subsection><num>(1D)</num><intro><p>Without prejudice to the generality of the powers conferred by the preceding provisions of this section (but subject to subsection (1E) of this section), regulations made by virtue of paragraph (bc) or (bd) of subsection (1) of this section may—</p></intro><level class="para1"><num>(a)</num><content><p>provide, for the purpose of authorising the making of exchanges, for any stock or bonds to be treated as issued on such terms as may be specified in the regulations;</p></content></level><level class="para1"><num>(b)</num><content><p>contain such provision as the Treasury think fit about the circumstances in which and the conditions subject to which exchanges may be effected; and</p></content></level><level class="para1"><num>(c)</num><content><p>contain any such provision as could be contained in rules made under section 14(3) of the National Loans Act 1968 (Treasury rules as to exchange of securities).</p></content></level></subsection><subsection><num>(1E)</num><content><p>Regulations made by virtue of subsection (1)(bc) or (bd) of this section shall not make provision for the exchange of any stock or bonds, or of any strips, in any cases other than those where the exchange is at the request of the holder or in accordance with an order made by a court.</p></content></subsection><subsection><num>(1F)</num><content><p>Regulations under this section may make different provision for different cases and contain such exceptions and exclusions as the Treasury think fit; and the powers of the Treasury to make regulations under this section are without prejudice to any of their powers under the <noteRef href="#m00172" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>National Loans Act 1968.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-202-3"><num>(3)</num><content><p><mod>After section 2 of the <noteRef href="#m00173" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>National Debt (Stockholders Relief) Act 1892 (date for striking balance for a dividend on stock) there shall be inserted the following section—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>2A</num><heading>Payment of dividend on stock stripped after balance struck</heading><subsection><num>(1)</num><intro><p>Where—</p></intro><level class="para1"><num>(a)</num><content><p>any stock is exchanged for strips of that stock, and</p></content></level><level class="para1"><num>(b)</num><content><p>that exchange takes place after the balance has been struck for a dividend on that stock but before the day on which that dividend is payable,</p></content></level><wrapUp><p>any person who would have been entitled to that dividend but for the exchange shall remain entitled to that dividend notwithstanding the exchange.</p></wrapUp></subsection><subsection><num>(2)</num><content><p>The Treasury may by order made by statutory instrument provide that for the purposes of this section and section 47(1C) of the <noteRef href="#m00174" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1942, the balance for any dividend on any stock is to be deemed to be struck at a time which, by such a period as is specified in the order, precedes the time when the balance is actually struck.</p></content></subsection><subsection><num>(3)</num><content><p>A period specified in an order under subsection (2) above shall not exceed 7 days; and an order made under that subsection may make different provision for different cases.</p></content></subsection><subsection><num>(4)</num><content><p>In this section “strip”, in relation to any stock, has the meaning given by section 47 of the Finance Act 1942.</p></content></subsection></section></quotedStructure></mod></p></content></subsection><subsection eId="section-202-4"><num>(4)</num><content><p><mod>In section 16 of the National Loans Act 1968 (supplemental provisions as to national debt), after subsection (4) there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(4A)</num><content><p>In subsections (3) and (4) above the references to stock or registered bonds issued under this Act include references to a strip (within the meaning of section 47 of the Finance Act 1942) of any stock or bond (whether the stock or bond is issued under this Act or otherwise).</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-202-5"><num>(5)</num><intro><p>The Treasury may by regulations make provision for securing that enactments and subordinate legislation which—</p></intro><level class="para1" eId="section-202-5-a"><num>(a)</num><content><p>apply in relation to government securities or to any description of such securities, or</p></content></level><level class="para1" eId="section-202-5-b"><num>(b)</num><content><p>for any other purpose refer (in whatever terms) to such securities or to any description of them,</p></content></level><wrapUp><p>have effect with such modifications as the Treasury may think appropriate in consequence of the making of any provision or arrangements for, or in connection with, the issue or transfer of strips of government securities or the consolidation of such strips into other securities.</p></wrapUp></subsection><subsection eId="section-202-6"><num>(6)</num><intro><p>Regulations under subsection (5) above may—</p></intro><level class="para1" eId="section-202-6-a"><num>(a)</num><content><p>impose a charge to income tax, corporation tax, capital gains tax, inheritance tax, stamp duty or stamp duty reserve tax;</p></content></level><level class="para1" eId="section-202-6-b"><num>(b)</num><content><p>include provision applying generally to, or to any description of, enactments or subordinate legislation;</p></content></level><level class="para1" eId="section-202-6-c"><num>(c)</num><content><p>make different provision for different cases; and</p></content></level><level class="para1" eId="section-202-6-d"><num>(d)</num><content><p>contain such incidental, supplemental, consequential and transitional provision as the Treasury think appropriate.</p></content></level></subsection><subsection eId="section-202-7"><num>(7)</num><content><p>The power to make regulations under subsection (5) above shall be exercisable by statutory instrument subject to annulment in pursuance of a resolution of the House of Commons.</p></content></subsection><subsection eId="section-202-8"><num>(8)</num><content><p>Schedule 40 to this Act (which makes provision in relation to strips for taxation purposes) shall have effect.</p></content></subsection><subsection eId="section-202-9"><num>(9)</num><content><p>The enactments that may be modified by regulations under this section shall include section 95 above and the enactments contained in Schedule 40 to this Act.</p></content></subsection><subsection eId="section-202-10"><num>(10)</num><intro><p>In this section—</p></intro><hcontainer name="definition"><content><p>“government securities” means any securities included in Part I of Schedule 11 to the <noteRef href="#m00175" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1942;</p></content></hcontainer><hcontainer name="definition"><content><p>“modifications” includes amendments, additions and omissions; and</p></content></hcontainer><hcontainer name="definition"><content><p>“subordinate legislation” has the same meaning as in the <noteRef href="#m00176" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Interpretation Act 1978;</p></content></hcontainer><wrapUp><p>and expressions used in this section and in section 47 of the <noteRef href="#m00177" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1942 have the same meanings in this section as in that section.</p></wrapUp></subsection></section><section eId="section-203"><num>203</num><heading>Modification of the Agriculture Act 1993</heading><subsection eId="section-203-1"><num>(1)</num><intro><p>Part I of Schedule 2 to the <noteRef href="#m00178" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Agriculture Act 1993 (taxation provisions applying to the reorganisation of the milk marketing boards) shall have effect, and be deemed always to have had effect, in accordance with subsections (2) to (4) below where—</p></intro><level class="para1" eId="section-203-1-a"><num>(a)</num><content><p>any approved scheme has made provision as to the functions of a milk marketing board in the period after the transfers taking effect on the vesting day under section 11 of that Act;</p></content></level><level class="para1" eId="section-203-1-b"><num>(b)</num><content><p>regulations have been made by virtue of section 14(2) of that Act (provision following re-organisation) for giving effect to that provision; and</p></content></level><level class="para1" eId="section-203-1-c"><num>(c)</num><content><p>a transaction is or has been entered into by that board in pursuance of any obligation under those regulations to carry out those functions so far as they relate to a subsidiary of the board.</p></content></level></subsection><subsection eId="section-203-2"><num>(2)</num><intro><p>For the purposes of that Part of that Schedule—</p></intro><level class="para1" eId="section-203-2-a"><num>(a)</num><content><p>anything done by way of entering into the transaction, or for the purpose of carrying it out, shall be deemed to have been done under and in accordance with the scheme; and</p></content></level><level class="para1" eId="section-203-2-b"><num>(b)</num><content><p>the terms and other provisions having effect in relation to that transaction by virtue of anything contained in, or anything done in exercise of powers conferred by, any regulations under section 14(2) of the <noteRef href="#m00179" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Agriculture Act 1993 shall be deemed to be terms for which the scheme provided or, as the case may be, to be provisions of the scheme.</p></content></level></subsection><subsection eId="section-203-3"><num>(3)</num><intro><p>Sub-paragraph (1) of paragraph 16 of Schedule 2 to the Agriculture Act 1993 (distributions) shall have effect, and be deemed always to have had effect, in a case where the terms and provisions mentioned in subsection (2)(b) above involved or involve—</p></intro><level class="para1" eId="section-203-3-a"><num>(a)</num><content><p>the issue or transfer of any shares in, or securities of, any body,</p></content></level><level class="para1" eId="section-203-3-b"><num>(b)</num><content><p>the conferring of any right to a distribution out of the assets of any body,</p></content></level><level class="para1" eId="section-203-3-c"><num>(c)</num><content><p>the conferring of any right to, or to acquire, shares in any body, or</p></content></level><level class="para1" eId="section-203-3-d"><num>(d)</num><content><p>the transfer to any person of any property or rights of a milk marketing board, or of the subsidiary of such a board,</p></content></level><wrapUp><p>as if the references to the vesting day in paragraphs (a), (c), (d) and (e) of that sub-paragraph were references to the day on which the winding up of the board is completed.</p></wrapUp></subsection><subsection eId="section-203-4"><num>(4)</num><intro><p>Sub-paragraph (4) of paragraph 31 of Schedule 2 to the Agriculture Act 1993 (condition to be satisfied if body to be qualifying body by virtue of sub-paragraph (1)(c)) shall have effect, and be deemed always to have had effect, as if—</p></intro><level class="para1" eId="section-203-4-a"><num>(a)</num><content><p>the reference, in relation to a company, to 90 per cent. of its ordinary share capital were a reference to 70 per cent. of its ordinary share capital; and</p></content></level><level class="para1" eId="section-203-4-b"><num>(b)</num><content><p>the references to shares having been issued to any person included references to their having been allotted to that person.</p></content></level></subsection><subsection eId="section-203-5"><num>(5)</num><intro><p>Paragraph 1 of Schedule 2 to the Agriculture Act 1993 (tax continuity with successor bodies) shall have effect, and be deemed to have had effect, in relation to any relevant transfer after 31st December 1995 to a society registered under the <noteRef href="#m00180" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Industrial and Provident Societies Act 1965 of—</p></intro><level class="para1" eId="section-203-5-a"><num>(a)</num><content><p>a trade, or part of a trade, of a milk marketing board, or</p></content></level><level class="para1" eId="section-203-5-b"><num>(b)</num><content><p>any property, rights or liabilities of such a board,</p></content></level><wrapUp><p>as it has effect in relation to any transfer under section 11 of that Act to a qualifying body.</p></wrapUp></subsection><subsection eId="section-203-6"><num>(6)</num><intro><p>Paragraphs 16, 20, 25, 26, 28 and 29 of Schedule 2 to the Agriculture Act 1993 shall have effect, and be deemed to have had effect, in relation to any relevant transfer after 31st December 1995 of assets of a milk marketing board to a society registered under the Industrial and Provident Societies Act 1965 as if—</p></intro><level class="para1" eId="section-203-6-a"><num>(a)</num><content><p>the terms and other provisions of the transaction for effecting the transfer were contained in an approved scheme;</p></content></level><level class="para1" eId="section-203-6-b"><num>(b)</num><content><p>the society were a relevant successor of that board; and</p></content></level><level class="para1" eId="section-203-6-c"><num>(c)</num><content><p>references in those paragraphs to the vesting day were references to the day on which the winding up of the board is completed.</p></content></level></subsection><subsection eId="section-203-7"><num>(7)</num><intro><p>For the purposes of subsections (5) and (6) above, a transfer of anything to a society registered under the <noteRef href="#m00181" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Industrial and Provident Societies Act 1965 is a relevant transfer if—</p></intro><level class="para1" eId="section-203-7-a"><num>(a)</num><content><p>it is a transfer in pursuance of regulations made by virtue of section 14(2) of the <noteRef href="#m00182" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Agriculture Act 1993;</p></content></level><level class="para1" eId="section-203-7-b"><num>(b)</num><content><p>it is not a transfer of shares in a subsidiary of a milk marketing board; and</p></content></level><level class="para1" eId="section-203-7-c"><num>(c)</num><content><p>the condition mentioned in sub-paragraph (5) of paragraph 31 of Schedule 2 to that Act would have been met in relation to that society if the provision made as to the persons to whom the membership of the society is open were contained in an approved scheme providing for the transfer.</p></content></level></subsection><subsection eId="section-203-8"><num>(8)</num><content><p>Paragraph 20 of Schedule 2 to the Agriculture Act 1993 (treatment of acquisition of certain shares and securities) shall not apply, and shall be deemed never to have applied, in relation to the acquisition of any security after 31st December 1995 if the indebtedness acknowledged by that security does not fall, for the purposes of the <noteRef href="#m00183" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxation of Chargeable Gains Act 1992, to be treated as a debt on a security (as defined in section 132 of that Act of 1992).</p></content></subsection><subsection eId="section-203-9"><num>(9)</num><content><p>For the purposes of Chapter II of Part IV of this Act, so far as it has effect for any accounting period ending after 31st March 1996 in relation to any creditor relationship represented by a debenture issued on or after 31st December 1995, paragraph 25 of Schedule 2 to the Agriculture Act 1993 shall have effect as if sub-paragraph (2)(a) of that paragraph (deemed consideration for issue of debenture issued under approved scheme) were omitted.</p></content></subsection><subsection eId="section-203-10"><num>(10)</num><content><p>For the purposes of the Taxation of Chargeable Gains Act 1992, where any debenture to which paragraph 25 of Schedule 2 to the Agriculture Act 1993 applies has been or is issued at any time after 31st December 1995, the indebtedness acknowledged by that debenture shall be deemed (where that would not otherwise be the case) to be, and always to have been, a debt on a security (as defined in section 132 of that Act of 1992).</p></content></subsection><subsection eId="section-203-11"><num>(11)</num><content><p>Expressions used in this section and in Part I of the Agriculture Act 1993 have the same meanings in this section as in that Part.</p></content></subsection></section></hcontainer>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-202"><num>202</num><heading>Gilt stripping</heading><subsection eId="section-202-1"><num>(1)</num><content><p><mod>In section 47 of the <noteRef href="#m00170" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1942 (Treasury regulations with respect to the transfer and registration of Government stock), after paragraph (bb) of subsection (1) there shall be inserted the following paragraphs—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(bc)</num><content><p>for the exchange of any such stock and bonds (whenever issued) for strips thereof;</p></content></level><level class="para1"><num>(bd)</num><content><p>for exchanges by which such strips (whether deriving from the same security or from different securities) are consolidated into a single security of a description so specified;</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-202-2"><num>(2)</num><content><p><mod>After subsection (1A) of that section (transfer of deceased persons' stocks and bonds) there shall be inserted the following subsections—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1B)</num><intro><p>In this section “strip”, in relation to any stock or bond, means a security issued under the <noteRef href="#m00171" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>National Loans Act 1968 which—</p></intro><level class="para1"><num>(a)</num><intro><p>is issued for the purpose of representing the right to, or of securing—</p></intro><level class="para2"><num>(i)</num><content><p>a payment corresponding to a payment of interest or principal remaining to be made under the stock or bond, or</p></content></level><level class="para2"><num>(ii)</num><content><p>two or more payments each corresponding to a different payment remaining to be so made;</p></content></level></level><level class="para1"><num>(b)</num><content><p>is issued in conjunction with the issue of one or more other securities which, together with that security, represent the right to, or secure, payments corresponding to every payment remaining to be made under the stock or bond; and</p></content></level><level class="para1"><num>(c)</num><content><p>is not itself a security that represents the right to, or secures, payments corresponding to a part of every payment so remaining.</p></content></level></subsection><subsection><num>(1C)</num><content><p>For the purposes of subsection (1B) of this section, where the balance has been struck for a dividend on any stock or bond, any payment to be made in respect of that dividend shall, at times falling after that balance has been struck, be treated as not being a payment remaining to be made under the stock or bond.</p></content></subsection><subsection><num>(1D)</num><intro><p>Without prejudice to the generality of the powers conferred by the preceding provisions of this section (but subject to subsection (1E) of this section), regulations made by virtue of paragraph (bc) or (bd) of subsection (1) of this section may—</p></intro><level class="para1"><num>(a)</num><content><p>provide, for the purpose of authorising the making of exchanges, for any stock or bonds to be treated as issued on such terms as may be specified in the regulations;</p></content></level><level class="para1"><num>(b)</num><content><p>contain such provision as the Treasury think fit about the circumstances in which and the conditions subject to which exchanges may be effected; and</p></content></level><level class="para1"><num>(c)</num><content><p>contain any such provision as could be contained in rules made under section 14(3) of the National Loans Act 1968 (Treasury rules as to exchange of securities).</p></content></level></subsection><subsection><num>(1E)</num><content><p>Regulations made by virtue of subsection (1)(bc) or (bd) of this section shall not make provision for the exchange of any stock or bonds, or of any strips, in any cases other than those where the exchange is at the request of the holder or in accordance with an order made by a court.</p></content></subsection><subsection><num>(1F)</num><content><p>Regulations under this section may make different provision for different cases and contain such exceptions and exclusions as the Treasury think fit; and the powers of the Treasury to make regulations under this section are without prejudice to any of their powers under the <noteRef href="#m00172" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>National Loans Act 1968.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-202-3"><num>(3)</num><content><p><mod>After section 2 of the <noteRef href="#m00173" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>National Debt (Stockholders Relief) Act 1892 (date for striking balance for a dividend on stock) there shall be inserted the following section—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>2A</num><heading>Payment of dividend on stock stripped after balance struck</heading><subsection><num>(1)</num><intro><p>Where—</p></intro><level class="para1"><num>(a)</num><content><p>any stock is exchanged for strips of that stock, and</p></content></level><level class="para1"><num>(b)</num><content><p>that exchange takes place after the balance has been struck for a dividend on that stock but before the day on which that dividend is payable,</p></content></level><wrapUp><p>any person who would have been entitled to that dividend but for the exchange shall remain entitled to that dividend notwithstanding the exchange.</p></wrapUp></subsection><subsection><num>(2)</num><content><p>The Treasury may by order made by statutory instrument provide that for the purposes of this section and section 47(1C) of the <noteRef href="#m00174" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1942, the balance for any dividend on any stock is to be deemed to be struck at a time which, by such a period as is specified in the order, precedes the time when the balance is actually struck.</p></content></subsection><subsection><num>(3)</num><content><p>A period specified in an order under subsection (2) above shall not exceed 7 days; and an order made under that subsection may make different provision for different cases.</p></content></subsection><subsection><num>(4)</num><content><p>In this section “strip”, in relation to any stock, has the meaning given by section 47 of the Finance Act 1942.</p></content></subsection></section></quotedStructure></mod></p></content></subsection><subsection eId="section-202-4"><num>(4)</num><content><p><mod>In section 16 of the National Loans Act 1968 (supplemental provisions as to national debt), after subsection (4) there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(4A)</num><content><p>In subsections (3) and (4) above the references to stock or registered bonds issued under this Act include references to a strip (within the meaning of section 47 of the Finance Act 1942) of any stock or bond (whether the stock or bond is issued under this Act or otherwise).</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-202-5"><num>(5)</num><intro><p>The Treasury may by regulations make provision for securing that enactments and subordinate legislation which—</p></intro><level class="para1" eId="section-202-5-a"><num>(a)</num><content><p>apply in relation to government securities or to any description of such securities, or</p></content></level><level class="para1" eId="section-202-5-b"><num>(b)</num><content><p>for any other purpose refer (in whatever terms) to such securities or to any description of them,</p></content></level><wrapUp><p>have effect with such modifications as the Treasury may think appropriate in consequence of the making of any provision or arrangements for, or in connection with, the issue or transfer of strips of government securities or the consolidation of such strips into other securities.</p></wrapUp></subsection><subsection eId="section-202-6"><num>(6)</num><intro><p>Regulations under subsection (5) above may—</p></intro><level class="para1" eId="section-202-6-a"><num>(a)</num><content><p>impose a charge to income tax, corporation tax, capital gains tax, inheritance tax, stamp duty or stamp duty reserve tax;</p></content></level><level class="para1" eId="section-202-6-b"><num>(b)</num><content><p>include provision applying generally to, or to any description of, enactments or subordinate legislation;</p></content></level><level class="para1" eId="section-202-6-c"><num>(c)</num><content><p>make different provision for different cases; and</p></content></level><level class="para1" eId="section-202-6-d"><num>(d)</num><content><p>contain such incidental, supplemental, consequential and transitional provision as the Treasury think appropriate.</p></content></level></subsection><subsection eId="section-202-7"><num>(7)</num><content><p>The power to make regulations under subsection (5) above shall be exercisable by statutory instrument subject to annulment in pursuance of a resolution of the House of Commons.</p></content></subsection><subsection eId="section-202-8"><num>(8)</num><content><p>Schedule 40 to this Act (which makes provision in relation to strips for taxation purposes) shall have effect.</p></content></subsection><subsection eId="section-202-9"><num>(9)</num><content><p>The enactments that may be modified by regulations under this section shall include section 95 above and the enactments contained in Schedule 40 to this Act.</p></content></subsection><subsection eId="section-202-10"><num>(10)</num><intro><p>In this section—</p></intro><hcontainer name="definition"><content><p>“government securities” means any securities included in Part I of Schedule 11 to the <noteRef href="#m00175" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1942;</p></content></hcontainer><hcontainer name="definition"><content><p>“modifications” includes amendments, additions and omissions; and</p></content></hcontainer><hcontainer name="definition"><content><p>“subordinate legislation” has the same meaning as in the <noteRef href="#m00176" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Interpretation Act 1978;</p></content></hcontainer><wrapUp><p>and expressions used in this section and in section 47 of the <noteRef href="#m00177" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1942 have the same meanings in this section as in that section.</p></wrapUp></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-202-1"><num>(1)</num><content><p><mod>In section 47 of the <noteRef href="#m00170" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1942 (Treasury regulations with respect to the transfer and registration of Government stock), after paragraph (bb) of subsection (1) there shall be inserted the following paragraphs—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(bc)</num><content><p>for the exchange of any such stock and bonds (whenever issued) for strips thereof;</p></content></level><level class="para1"><num>(bd)</num><content><p>for exchanges by which such strips (whether deriving from the same security or from different securities) are consolidated into a single security of a description so specified;</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-202-2"><num>(2)</num><content><p><mod>After subsection (1A) of that section (transfer of deceased persons' stocks and bonds) there shall be inserted the following subsections—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1B)</num><intro><p>In this section “strip”, in relation to any stock or bond, means a security issued under the <noteRef href="#m00171" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>National Loans Act 1968 which—</p></intro><level class="para1"><num>(a)</num><intro><p>is issued for the purpose of representing the right to, or of securing—</p></intro><level class="para2"><num>(i)</num><content><p>a payment corresponding to a payment of interest or principal remaining to be made under the stock or bond, or</p></content></level><level class="para2"><num>(ii)</num><content><p>two or more payments each corresponding to a different payment remaining to be so made;</p></content></level></level><level class="para1"><num>(b)</num><content><p>is issued in conjunction with the issue of one or more other securities which, together with that security, represent the right to, or secure, payments corresponding to every payment remaining to be made under the stock or bond; and</p></content></level><level class="para1"><num>(c)</num><content><p>is not itself a security that represents the right to, or secures, payments corresponding to a part of every payment so remaining.</p></content></level></subsection><subsection><num>(1C)</num><content><p>For the purposes of subsection (1B) of this section, where the balance has been struck for a dividend on any stock or bond, any payment to be made in respect of that dividend shall, at times falling after that balance has been struck, be treated as not being a payment remaining to be made under the stock or bond.</p></content></subsection><subsection><num>(1D)</num><intro><p>Without prejudice to the generality of the powers conferred by the preceding provisions of this section (but subject to subsection (1E) of this section), regulations made by virtue of paragraph (bc) or (bd) of subsection (1) of this section may—</p></intro><level class="para1"><num>(a)</num><content><p>provide, for the purpose of authorising the making of exchanges, for any stock or bonds to be treated as issued on such terms as may be specified in the regulations;</p></content></level><level class="para1"><num>(b)</num><content><p>contain such provision as the Treasury think fit about the circumstances in which and the conditions subject to which exchanges may be effected; and</p></content></level><level class="para1"><num>(c)</num><content><p>contain any such provision as could be contained in rules made under section 14(3) of the National Loans Act 1968 (Treasury rules as to exchange of securities).</p></content></level></subsection><subsection><num>(1E)</num><content><p>Regulations made by virtue of subsection (1)(bc) or (bd) of this section shall not make provision for the exchange of any stock or bonds, or of any strips, in any cases other than those where the exchange is at the request of the holder or in accordance with an order made by a court.</p></content></subsection><subsection><num>(1F)</num><content><p>Regulations under this section may make different provision for different cases and contain such exceptions and exclusions as the Treasury think fit; and the powers of the Treasury to make regulations under this section are without prejudice to any of their powers under the <noteRef href="#m00172" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>National Loans Act 1968.</p></content></subsection></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-202-3"><num>(3)</num><content><p><mod>After section 2 of the <noteRef href="#m00173" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>National Debt (Stockholders Relief) Act 1892 (date for striking balance for a dividend on stock) there shall be inserted the following section—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>2A</num><heading>Payment of dividend on stock stripped after balance struck</heading><subsection><num>(1)</num><intro><p>Where—</p></intro><level class="para1"><num>(a)</num><content><p>any stock is exchanged for strips of that stock, and</p></content></level><level class="para1"><num>(b)</num><content><p>that exchange takes place after the balance has been struck for a dividend on that stock but before the day on which that dividend is payable,</p></content></level><wrapUp><p>any person who would have been entitled to that dividend but for the exchange shall remain entitled to that dividend notwithstanding the exchange.</p></wrapUp></subsection><subsection><num>(2)</num><content><p>The Treasury may by order made by statutory instrument provide that for the purposes of this section and section 47(1C) of the <noteRef href="#m00174" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1942, the balance for any dividend on any stock is to be deemed to be struck at a time which, by such a period as is specified in the order, precedes the time when the balance is actually struck.</p></content></subsection><subsection><num>(3)</num><content><p>A period specified in an order under subsection (2) above shall not exceed 7 days; and an order made under that subsection may make different provision for different cases.</p></content></subsection><subsection><num>(4)</num><content><p>In this section “strip”, in relation to any stock, has the meaning given by section 47 of the Finance Act 1942.</p></content></subsection></section></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-202-4"><num>(4)</num><content><p><mod>In section 16 of the National Loans Act 1968 (supplemental provisions as to national debt), after subsection (4) there shall be inserted the following subsection—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(4A)</num><content><p>In subsections (3) and (4) above the references to stock or registered bonds issued under this Act include references to a strip (within the meaning of section 47 of the Finance Act 1942) of any stock or bond (whether the stock or bond is issued under this Act or otherwise).</p></content></subsection></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-202-5"><num>(5)</num><intro><p>The Treasury may by regulations make provision for securing that enactments and subordinate legislation which—</p></intro><level class="para1" eId="section-202-5-a"><num>(a)</num><content><p>apply in relation to government securities or to any description of such securities, or</p></content></level><level class="para1" eId="section-202-5-b"><num>(b)</num><content><p>for any other purpose refer (in whatever terms) to such securities or to any description of them,</p></content></level><wrapUp><p>have effect with such modifications as the Treasury may think appropriate in consequence of the making of any provision or arrangements for, or in connection with, the issue or transfer of strips of government securities or the consolidation of such strips into other securities.</p></wrapUp></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-202-5-a"><num>(a)</num><content><p>apply in relation to government securities or to any description of such securities, or</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-202-5-b"><num>(b)</num><content><p>for any other purpose refer (in whatever terms) to such securities or to any description of them,</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-202-6"><num>(6)</num><intro><p>Regulations under subsection (5) above may—</p></intro><level class="para1" eId="section-202-6-a"><num>(a)</num><content><p>impose a charge to income tax, corporation tax, capital gains tax, inheritance tax, stamp duty or stamp duty reserve tax;</p></content></level><level class="para1" eId="section-202-6-b"><num>(b)</num><content><p>include provision applying generally to, or to any description of, enactments or subordinate legislation;</p></content></level><level class="para1" eId="section-202-6-c"><num>(c)</num><content><p>make different provision for different cases; and</p></content></level><level class="para1" eId="section-202-6-d"><num>(d)</num><content><p>contain such incidental, supplemental, consequential and transitional provision as the Treasury think appropriate.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-202-6-a"><num>(a)</num><content><p>impose a charge to income tax, corporation tax, capital gains tax, inheritance tax, stamp duty or stamp duty reserve tax;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-202-6-b"><num>(b)</num><content><p>include provision applying generally to, or to any description of, enactments or subordinate legislation;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-202-6-c"><num>(c)</num><content><p>make different provision for different cases; and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-202-6-d"><num>(d)</num><content><p>contain such incidental, supplemental, consequential and transitional provision as the Treasury think appropriate.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-202-7"><num>(7)</num><content><p>The power to make regulations under subsection (5) above shall be exercisable by statutory instrument subject to annulment in pursuance of a resolution of the House of Commons.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-202-8"><num>(8)</num><content><p>Schedule 40 to this Act (which makes provision in relation to strips for taxation purposes) shall have effect.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-202-9"><num>(9)</num><content><p>The enactments that may be modified by regulations under this section shall include section 95 above and the enactments contained in Schedule 40 to this Act.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-202-10"><num>(10)</num><intro><p>In this section—</p></intro><hcontainer name="definition"><content><p>“government securities” means any securities included in Part I of Schedule 11 to the <noteRef href="#m00175" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1942;</p></content></hcontainer><hcontainer name="definition"><content><p>“modifications” includes amendments, additions and omissions; and</p></content></hcontainer><hcontainer name="definition"><content><p>“subordinate legislation” has the same meaning as in the <noteRef href="#m00176" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Interpretation Act 1978;</p></content></hcontainer><wrapUp><p>and expressions used in this section and in section 47 of the <noteRef href="#m00177" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Finance Act 1942 have the same meanings in this section as in that section.</p></wrapUp></subsection>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="definition"><content><p>“subordinate legislation” has the same meaning as in the <noteRef href="#m00176" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Interpretation Act 1978;</p></content></hcontainer>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-203"><num>203</num><heading>Modification of the Agriculture Act 1993</heading><subsection eId="section-203-1"><num>(1)</num><intro><p>Part I of Schedule 2 to the <noteRef href="#m00178" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Agriculture Act 1993 (taxation provisions applying to the reorganisation of the milk marketing boards) shall have effect, and be deemed always to have had effect, in accordance with subsections (2) to (4) below where—</p></intro><level class="para1" eId="section-203-1-a"><num>(a)</num><content><p>any approved scheme has made provision as to the functions of a milk marketing board in the period after the transfers taking effect on the vesting day under section 11 of that Act;</p></content></level><level class="para1" eId="section-203-1-b"><num>(b)</num><content><p>regulations have been made by virtue of section 14(2) of that Act (provision following re-organisation) for giving effect to that provision; and</p></content></level><level class="para1" eId="section-203-1-c"><num>(c)</num><content><p>a transaction is or has been entered into by that board in pursuance of any obligation under those regulations to carry out those functions so far as they relate to a subsidiary of the board.</p></content></level></subsection><subsection eId="section-203-2"><num>(2)</num><intro><p>For the purposes of that Part of that Schedule—</p></intro><level class="para1" eId="section-203-2-a"><num>(a)</num><content><p>anything done by way of entering into the transaction, or for the purpose of carrying it out, shall be deemed to have been done under and in accordance with the scheme; and</p></content></level><level class="para1" eId="section-203-2-b"><num>(b)</num><content><p>the terms and other provisions having effect in relation to that transaction by virtue of anything contained in, or anything done in exercise of powers conferred by, any regulations under section 14(2) of the <noteRef href="#m00179" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Agriculture Act 1993 shall be deemed to be terms for which the scheme provided or, as the case may be, to be provisions of the scheme.</p></content></level></subsection><subsection eId="section-203-3"><num>(3)</num><intro><p>Sub-paragraph (1) of paragraph 16 of Schedule 2 to the Agriculture Act 1993 (distributions) shall have effect, and be deemed always to have had effect, in a case where the terms and provisions mentioned in subsection (2)(b) above involved or involve—</p></intro><level class="para1" eId="section-203-3-a"><num>(a)</num><content><p>the issue or transfer of any shares in, or securities of, any body,</p></content></level><level class="para1" eId="section-203-3-b"><num>(b)</num><content><p>the conferring of any right to a distribution out of the assets of any body,</p></content></level><level class="para1" eId="section-203-3-c"><num>(c)</num><content><p>the conferring of any right to, or to acquire, shares in any body, or</p></content></level><level class="para1" eId="section-203-3-d"><num>(d)</num><content><p>the transfer to any person of any property or rights of a milk marketing board, or of the subsidiary of such a board,</p></content></level><wrapUp><p>as if the references to the vesting day in paragraphs (a), (c), (d) and (e) of that sub-paragraph were references to the day on which the winding up of the board is completed.</p></wrapUp></subsection><subsection eId="section-203-4"><num>(4)</num><intro><p>Sub-paragraph (4) of paragraph 31 of Schedule 2 to the Agriculture Act 1993 (condition to be satisfied if body to be qualifying body by virtue of sub-paragraph (1)(c)) shall have effect, and be deemed always to have had effect, as if—</p></intro><level class="para1" eId="section-203-4-a"><num>(a)</num><content><p>the reference, in relation to a company, to 90 per cent. of its ordinary share capital were a reference to 70 per cent. of its ordinary share capital; and</p></content></level><level class="para1" eId="section-203-4-b"><num>(b)</num><content><p>the references to shares having been issued to any person included references to their having been allotted to that person.</p></content></level></subsection><subsection eId="section-203-5"><num>(5)</num><intro><p>Paragraph 1 of Schedule 2 to the Agriculture Act 1993 (tax continuity with successor bodies) shall have effect, and be deemed to have had effect, in relation to any relevant transfer after 31st December 1995 to a society registered under the <noteRef href="#m00180" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Industrial and Provident Societies Act 1965 of—</p></intro><level class="para1" eId="section-203-5-a"><num>(a)</num><content><p>a trade, or part of a trade, of a milk marketing board, or</p></content></level><level class="para1" eId="section-203-5-b"><num>(b)</num><content><p>any property, rights or liabilities of such a board,</p></content></level><wrapUp><p>as it has effect in relation to any transfer under section 11 of that Act to a qualifying body.</p></wrapUp></subsection><subsection eId="section-203-6"><num>(6)</num><intro><p>Paragraphs 16, 20, 25, 26, 28 and 29 of Schedule 2 to the Agriculture Act 1993 shall have effect, and be deemed to have had effect, in relation to any relevant transfer after 31st December 1995 of assets of a milk marketing board to a society registered under the Industrial and Provident Societies Act 1965 as if—</p></intro><level class="para1" eId="section-203-6-a"><num>(a)</num><content><p>the terms and other provisions of the transaction for effecting the transfer were contained in an approved scheme;</p></content></level><level class="para1" eId="section-203-6-b"><num>(b)</num><content><p>the society were a relevant successor of that board; and</p></content></level><level class="para1" eId="section-203-6-c"><num>(c)</num><content><p>references in those paragraphs to the vesting day were references to the day on which the winding up of the board is completed.</p></content></level></subsection><subsection eId="section-203-7"><num>(7)</num><intro><p>For the purposes of subsections (5) and (6) above, a transfer of anything to a society registered under the <noteRef href="#m00181" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Industrial and Provident Societies Act 1965 is a relevant transfer if—</p></intro><level class="para1" eId="section-203-7-a"><num>(a)</num><content><p>it is a transfer in pursuance of regulations made by virtue of section 14(2) of the <noteRef href="#m00182" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Agriculture Act 1993;</p></content></level><level class="para1" eId="section-203-7-b"><num>(b)</num><content><p>it is not a transfer of shares in a subsidiary of a milk marketing board; and</p></content></level><level class="para1" eId="section-203-7-c"><num>(c)</num><content><p>the condition mentioned in sub-paragraph (5) of paragraph 31 of Schedule 2 to that Act would have been met in relation to that society if the provision made as to the persons to whom the membership of the society is open were contained in an approved scheme providing for the transfer.</p></content></level></subsection><subsection eId="section-203-8"><num>(8)</num><content><p>Paragraph 20 of Schedule 2 to the Agriculture Act 1993 (treatment of acquisition of certain shares and securities) shall not apply, and shall be deemed never to have applied, in relation to the acquisition of any security after 31st December 1995 if the indebtedness acknowledged by that security does not fall, for the purposes of the <noteRef href="#m00183" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxation of Chargeable Gains Act 1992, to be treated as a debt on a security (as defined in section 132 of that Act of 1992).</p></content></subsection><subsection eId="section-203-9"><num>(9)</num><content><p>For the purposes of Chapter II of Part IV of this Act, so far as it has effect for any accounting period ending after 31st March 1996 in relation to any creditor relationship represented by a debenture issued on or after 31st December 1995, paragraph 25 of Schedule 2 to the Agriculture Act 1993 shall have effect as if sub-paragraph (2)(a) of that paragraph (deemed consideration for issue of debenture issued under approved scheme) were omitted.</p></content></subsection><subsection eId="section-203-10"><num>(10)</num><content><p>For the purposes of the Taxation of Chargeable Gains Act 1992, where any debenture to which paragraph 25 of Schedule 2 to the Agriculture Act 1993 applies has been or is issued at any time after 31st December 1995, the indebtedness acknowledged by that debenture shall be deemed (where that would not otherwise be the case) to be, and always to have been, a debt on a security (as defined in section 132 of that Act of 1992).</p></content></subsection><subsection eId="section-203-11"><num>(11)</num><content><p>Expressions used in this section and in Part I of the Agriculture Act 1993 have the same meanings in this section as in that Part.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-203-1"><num>(1)</num><intro><p>Part I of Schedule 2 to the <noteRef href="#m00178" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Agriculture Act 1993 (taxation provisions applying to the reorganisation of the milk marketing boards) shall have effect, and be deemed always to have had effect, in accordance with subsections (2) to (4) below where—</p></intro><level class="para1" eId="section-203-1-a"><num>(a)</num><content><p>any approved scheme has made provision as to the functions of a milk marketing board in the period after the transfers taking effect on the vesting day under section 11 of that Act;</p></content></level><level class="para1" eId="section-203-1-b"><num>(b)</num><content><p>regulations have been made by virtue of section 14(2) of that Act (provision following re-organisation) for giving effect to that provision; and</p></content></level><level class="para1" eId="section-203-1-c"><num>(c)</num><content><p>a transaction is or has been entered into by that board in pursuance of any obligation under those regulations to carry out those functions so far as they relate to a subsidiary of the board.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-203-1-a"><num>(a)</num><content><p>any approved scheme has made provision as to the functions of a milk marketing board in the period after the transfers taking effect on the vesting day under section 11 of that Act;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-203-1-b"><num>(b)</num><content><p>regulations have been made by virtue of section 14(2) of that Act (provision following re-organisation) for giving effect to that provision; and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-203-1-c"><num>(c)</num><content><p>a transaction is or has been entered into by that board in pursuance of any obligation under those regulations to carry out those functions so far as they relate to a subsidiary of the board.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-203-2"><num>(2)</num><intro><p>For the purposes of that Part of that Schedule—</p></intro><level class="para1" eId="section-203-2-a"><num>(a)</num><content><p>anything done by way of entering into the transaction, or for the purpose of carrying it out, shall be deemed to have been done under and in accordance with the scheme; and</p></content></level><level class="para1" eId="section-203-2-b"><num>(b)</num><content><p>the terms and other provisions having effect in relation to that transaction by virtue of anything contained in, or anything done in exercise of powers conferred by, any regulations under section 14(2) of the <noteRef href="#m00179" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Agriculture Act 1993 shall be deemed to be terms for which the scheme provided or, as the case may be, to be provisions of the scheme.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-203-2-a"><num>(a)</num><content><p>anything done by way of entering into the transaction, or for the purpose of carrying it out, shall be deemed to have been done under and in accordance with the scheme; and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-203-2-b"><num>(b)</num><content><p>the terms and other provisions having effect in relation to that transaction by virtue of anything contained in, or anything done in exercise of powers conferred by, any regulations under section 14(2) of the <noteRef href="#m00179" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Agriculture Act 1993 shall be deemed to be terms for which the scheme provided or, as the case may be, to be provisions of the scheme.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-203-3"><num>(3)</num><intro><p>Sub-paragraph (1) of paragraph 16 of Schedule 2 to the Agriculture Act 1993 (distributions) shall have effect, and be deemed always to have had effect, in a case where the terms and provisions mentioned in subsection (2)(b) above involved or involve—</p></intro><level class="para1" eId="section-203-3-a"><num>(a)</num><content><p>the issue or transfer of any shares in, or securities of, any body,</p></content></level><level class="para1" eId="section-203-3-b"><num>(b)</num><content><p>the conferring of any right to a distribution out of the assets of any body,</p></content></level><level class="para1" eId="section-203-3-c"><num>(c)</num><content><p>the conferring of any right to, or to acquire, shares in any body, or</p></content></level><level class="para1" eId="section-203-3-d"><num>(d)</num><content><p>the transfer to any person of any property or rights of a milk marketing board, or of the subsidiary of such a board,</p></content></level><wrapUp><p>as if the references to the vesting day in paragraphs (a), (c), (d) and (e) of that sub-paragraph were references to the day on which the winding up of the board is completed.</p></wrapUp></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-203-3-a"><num>(a)</num><content><p>the issue or transfer of any shares in, or securities of, any body,</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-203-3-b"><num>(b)</num><content><p>the conferring of any right to a distribution out of the assets of any body,</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-203-3-c"><num>(c)</num><content><p>the conferring of any right to, or to acquire, shares in any body, or</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-203-3-d"><num>(d)</num><content><p>the transfer to any person of any property or rights of a milk marketing board, or of the subsidiary of such a board,</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-203-4"><num>(4)</num><intro><p>Sub-paragraph (4) of paragraph 31 of Schedule 2 to the Agriculture Act 1993 (condition to be satisfied if body to be qualifying body by virtue of sub-paragraph (1)(c)) shall have effect, and be deemed always to have had effect, as if—</p></intro><level class="para1" eId="section-203-4-a"><num>(a)</num><content><p>the reference, in relation to a company, to 90 per cent. of its ordinary share capital were a reference to 70 per cent. of its ordinary share capital; and</p></content></level><level class="para1" eId="section-203-4-b"><num>(b)</num><content><p>the references to shares having been issued to any person included references to their having been allotted to that person.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-203-4-a"><num>(a)</num><content><p>the reference, in relation to a company, to 90 per cent. of its ordinary share capital were a reference to 70 per cent. of its ordinary share capital; and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-203-4-b"><num>(b)</num><content><p>the references to shares having been issued to any person included references to their having been allotted to that person.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-203-5"><num>(5)</num><intro><p>Paragraph 1 of Schedule 2 to the Agriculture Act 1993 (tax continuity with successor bodies) shall have effect, and be deemed to have had effect, in relation to any relevant transfer after 31st December 1995 to a society registered under the <noteRef href="#m00180" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Industrial and Provident Societies Act 1965 of—</p></intro><level class="para1" eId="section-203-5-a"><num>(a)</num><content><p>a trade, or part of a trade, of a milk marketing board, or</p></content></level><level class="para1" eId="section-203-5-b"><num>(b)</num><content><p>any property, rights or liabilities of such a board,</p></content></level><wrapUp><p>as it has effect in relation to any transfer under section 11 of that Act to a qualifying body.</p></wrapUp></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-203-5-a"><num>(a)</num><content><p>a trade, or part of a trade, of a milk marketing board, or</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-203-5-b"><num>(b)</num><content><p>any property, rights or liabilities of such a board,</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-203-6"><num>(6)</num><intro><p>Paragraphs 16, 20, 25, 26, 28 and 29 of Schedule 2 to the Agriculture Act 1993 shall have effect, and be deemed to have had effect, in relation to any relevant transfer after 31st December 1995 of assets of a milk marketing board to a society registered under the Industrial and Provident Societies Act 1965 as if—</p></intro><level class="para1" eId="section-203-6-a"><num>(a)</num><content><p>the terms and other provisions of the transaction for effecting the transfer were contained in an approved scheme;</p></content></level><level class="para1" eId="section-203-6-b"><num>(b)</num><content><p>the society were a relevant successor of that board; and</p></content></level><level class="para1" eId="section-203-6-c"><num>(c)</num><content><p>references in those paragraphs to the vesting day were references to the day on which the winding up of the board is completed.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-203-6-a"><num>(a)</num><content><p>the terms and other provisions of the transaction for effecting the transfer were contained in an approved scheme;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-203-6-b"><num>(b)</num><content><p>the society were a relevant successor of that board; and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-203-6-c"><num>(c)</num><content><p>references in those paragraphs to the vesting day were references to the day on which the winding up of the board is completed.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-203-7"><num>(7)</num><intro><p>For the purposes of subsections (5) and (6) above, a transfer of anything to a society registered under the <noteRef href="#m00181" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Industrial and Provident Societies Act 1965 is a relevant transfer if—</p></intro><level class="para1" eId="section-203-7-a"><num>(a)</num><content><p>it is a transfer in pursuance of regulations made by virtue of section 14(2) of the <noteRef href="#m00182" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Agriculture Act 1993;</p></content></level><level class="para1" eId="section-203-7-b"><num>(b)</num><content><p>it is not a transfer of shares in a subsidiary of a milk marketing board; and</p></content></level><level class="para1" eId="section-203-7-c"><num>(c)</num><content><p>the condition mentioned in sub-paragraph (5) of paragraph 31 of Schedule 2 to that Act would have been met in relation to that society if the provision made as to the persons to whom the membership of the society is open were contained in an approved scheme providing for the transfer.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-203-7-a"><num>(a)</num><content><p>it is a transfer in pursuance of regulations made by virtue of section 14(2) of the <noteRef href="#m00182" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Agriculture Act 1993;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-203-7-b"><num>(b)</num><content><p>it is not a transfer of shares in a subsidiary of a milk marketing board; and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-203-7-c"><num>(c)</num><content><p>the condition mentioned in sub-paragraph (5) of paragraph 31 of Schedule 2 to that Act would have been met in relation to that society if the provision made as to the persons to whom the membership of the society is open were contained in an approved scheme providing for the transfer.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-203-8"><num>(8)</num><content><p>Paragraph 20 of Schedule 2 to the Agriculture Act 1993 (treatment of acquisition of certain shares and securities) shall not apply, and shall be deemed never to have applied, in relation to the acquisition of any security after 31st December 1995 if the indebtedness acknowledged by that security does not fall, for the purposes of the <noteRef href="#m00183" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Taxation of Chargeable Gains Act 1992, to be treated as a debt on a security (as defined in section 132 of that Act of 1992).</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-203-9"><num>(9)</num><content><p>For the purposes of Chapter II of Part IV of this Act, so far as it has effect for any accounting period ending after 31st March 1996 in relation to any creditor relationship represented by a debenture issued on or after 31st December 1995, paragraph 25 of Schedule 2 to the Agriculture Act 1993 shall have effect as if sub-paragraph (2)(a) of that paragraph (deemed consideration for issue of debenture issued under approved scheme) were omitted.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-203-10"><num>(10)</num><content><p>For the purposes of the Taxation of Chargeable Gains Act 1992, where any debenture to which paragraph 25 of Schedule 2 to the Agriculture Act 1993 applies has been or is issued at any time after 31st December 1995, the indebtedness acknowledged by that debenture shall be deemed (where that would not otherwise be the case) to be, and always to have been, a debt on a security (as defined in section 132 of that Act of 1992).</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-203-11"><num>(11)</num><content><p>Expressions used in this section and in Part I of the Agriculture Act 1993 have the same meanings in this section as in that Part.</p></content></subsection>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="part-VII-crossheading-supplemental"><heading>Supplemental</heading><section eId="section-204"><num>204</num><heading>Interpretation</heading><content><p>In this Act “the Taxes Act 1988” means the <noteRef href="#m00184" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Income and Corporation Taxes Act 1988.</p></content></section><section eId="section-205"><num>205</num><heading>Repeals</heading><subsection eId="section-205-1"><num>(1)</num><content><p>The enactments mentioned in Schedule 41 to this Act (which include spent provisions) are hereby repealed to the extent specified in the third column of that Schedule.</p></content></subsection><subsection eId="section-205-2"><num>(2)</num><content><p>The repeals specified in that Schedule have effect subject to the commencement provisions and savings contained in, or referred to, in the notes set out in that Schedule.</p></content></subsection></section><section eId="section-206"><num>206</num><heading>Short title</heading><content><p>This Act may be cited as the Finance Act 1996.</p></content></section></hcontainer>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-204"><num>204</num><heading>Interpretation</heading><content><p>In this Act “the Taxes Act 1988” means the <noteRef href="#m00184" uk:name="commentary" ukl:Name="MarginNoteRef" class="commentary"/>Income and Corporation Taxes Act 1988.</p></content></section>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-205"><num>205</num><heading>Repeals</heading><subsection eId="section-205-1"><num>(1)</num><content><p>The enactments mentioned in Schedule 41 to this Act (which include spent provisions) are hereby repealed to the extent specified in the third column of that Schedule.</p></content></subsection><subsection eId="section-205-2"><num>(2)</num><content><p>The repeals specified in that Schedule have effect subject to the commencement provisions and savings contained in, or referred to, in the notes set out in that Schedule.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-205-1"><num>(1)</num><content><p>The enactments mentioned in Schedule 41 to this Act (which include spent provisions) are hereby repealed to the extent specified in the third column of that Schedule.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-205-2"><num>(2)</num><content><p>The repeals specified in that Schedule have effect subject to the commencement provisions and savings contained in, or referred to, in the notes set out in that Schedule.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-206"><num>206</num><heading>Short title</heading><content><p>This Act may be cited as the Finance Act 1996.</p></content></section>