Announcement of Zambia to Rehabilitate Copper Industry with World Bank Assistance on March 22, 1984
In section 5 of the Alcoholic Liquor Duties Act 1979 (spirits) for “£15.77” there shall be substituted “ £17.35 ”.
In section 36 of that Act (beer) for “£0.90” there shall be substituted “ £0.97 ”.
For the Table of rates of duty in Schedule 1 to that Act (wine and made-wine) there shall be substituted the Table in Schedule 1 to this Act.
In section 62(1) of that Act (cider) for “£17.33” there shall be substituted “ £18.66 ”.
This section shall be deemed to have come into force at 6 o’clock in the evening of 20th March 1990.
1. Cigarettes An amount equal to 21 per cent. of the retail price plus £34.91 per thousand cigarettes. 2. Cigars £53.67 per kilogram. 3. Hand-rolling tobacco £56.63 per kilogram. 4. Other smoking tobacco and chewing tobacco £24.95 per kilogram.
This section shall be deemed to have come into force on 23rd March 1990.
In section 6 of the Hydrocarbon Oil Duties Act 1979—
in subsection (1), for “£0.2044” (duty on light oil) and “£0.1729” (duty on heavy oil) there shall be substituted “ £0.2248 ” and “ £0.1902 ” respectively; and
subsection (2A) (special rate of duty on petrol below 4 star) shall cease to have effect.
In section 11(1) of that Act, for “£0.0077” (rebate on fuel oil) and “£0.0110” (rebate on gas oil) there shall be substituted “ £0.0083 ” and “ £0.0118 ” respectively.
In section 13A(1) of that Act (rebate on unleaded petrol), for “£0.0272” there shall be substituted “ £0.0299 ”.
In section 14(1) of that Act (rebate on light oil for use as furnace fuel), for “£0.0077” there shall be substituted “ £0.0083 ”.
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Subsections (1) to (4) above shall be deemed to have come into force at 6 o’clock in the evening of 20th March 1990.
In section 7(1) of the Betting and Gaming Duties Act 1981 (which specifies 42½ per cent. as the rate of pool betting duty), for the words “42½ per cent.” there shall be substituted the words “ 40 per cent. ”.
This section shall apply in relation to bets made at any time by reference to an event taking place on or after 6th April 1990.
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in paragraph 1 of Part I, for the words from “according” to the end there shall be substituted the words “be the rate specified in relation to vehicles of that description in the second column of that Part.”; and
for the Table set out in Part II there shall be substituted the Table set out in Part I of Schedule 2 to this Act.
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for the words “plated gross weight”, in each place where they occur, there shall be substituted the words “relevant maximum weight”, and
for the words “plated train weight”, in each place where they occur, there shall be substituted the words “relevant maximum train weight”.
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Section 4 of each of the Vehicles (Excise) Act 1971 and the Vehicles (Excise) Act (Northern Ireland) 1972 (exemptions) shall be amended as follows.
In subsection (1) the following paragraph shall be inserted after paragraph (c)—.
In subsection (1) the following paragraphs shall be inserted after paragraph (k)—.
The following subsections shall be inserted after subsection (1)—
“ambulance” means a vehicle which— “disabled person” means a person suffering from a physical or mental defect or disability; “veterinary ambulance” means a vehicle which—
This section shall be deemed to have come into force on 21st March 1990.
Schedule 3 to this Act (which amends the provisions of the Customs and Excise Management Act 1979 about initial and supplementary entries and postponed entry) shall have effect in relation to goods imported on or after the day on which this Act is passed.
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“methylated spirits” means—
This section shall come into force on 1st January 1991.
In section 12 of the Alcoholic Liquor Duties Act 1979 (licence to manufacture spirits) subsections (6) to (9) (requirement that distiller provide lodgings for officers in charge of distillery) shall cease to have effect.
The Value Added Tax Act 1983 shall be amended as follows.
Subject to sub-paragraphs (3) to (5) below, a person who makes taxable supplies but is not registered becomes liable to be registered— Where a business carried on by a taxable person is transferred to another person as a going concern and the transferee is not registered at the time of the transfer, then, subject to sub-paragraphs (3) to (5) below, the transferee becomes liable to be registered at that time if— A person does not become liable to be registered by virtue of sub-paragraph (1)(a) or (2)(a) above if the Commissioners are satisfied that the value of his taxable supplies in the period of one year beginning at the time at which, apart from this sub-paragraph, he would become liable to be registered will not exceed £24,400.
In paragraph 1(4) of Schedule 1 after “(1)(a)” there shall be inserted “or (2)(a)”.
In paragraph 1(5) of Schedule 1 after “sub-paragraph (1)” there shall be inserted “or (2)”.
In paragraph 1(6) of Schedule 1 after “sub-paragraph (1)” there shall be inserted “or (2)”.
For paragraphs 3 and 4 of Schedule 1 there shall be substituted—
Section 33(1A) (registration of transferee of business) shall cease to have effect.
In consequence of the amendment of paragraph 1 of Schedule 1, in section 28(1) (registration of local authorities) for “1(a)(ii)” there shall be substituted “1(1)(a)”.
Subsections (2) to (5) and (8) above shall be deemed to have come into force on 21st March 1990.
Subsections (6) and (7) above apply in relation to persons who become liable to be registered after 20th March 1990.
Subsection (2) below applies where—
on or after 1st April 1989 a person has supplied goods or services for a consideration in money and has accounted for and paid tax on the supply,
the whole or any part of the consideration for the supply has been written off in his accounts as a bad debt, and
a period of two years (beginning with the date of the supply) has elapsed.
Subject to the following provisions of this section and to regulations under it the person shall be entitled, on making a claim to the Commissioners, to a refund of the amount of tax chargeable by reference to the outstanding amount.
In subsection (2) above “the outstanding amount” means—
if at the time of the claim the person has received no payment by way of the consideration written off in his accounts as a bad debt, an amount equal to the amount of the consideration so written off;
if at that time he has received a payment or payments by way of the consideration so written off, an amount by which the payment (or the aggregate of the payments) is exceeded by the amount of the consideration so written off.
A person shall not be entitled to a refund under subsection (2) above unless—
the value of the supply is equal to or less than its open market value, and
in the case of a supply of goods, the property in the goods has passed to the person to whom they were supplied or to a person deriving title from, through or under that person.
Regulations under this section may—
require a claim to be made at such time and in such form and manner as may be specified by or under the regulations;
require a claim to be evidenced and quantified by reference to such records and other documents as may be so specified;
require the claimant to keep, for such period and in such form and manner as may be so specified, those records and documents and a record of such information relating to the claim and to subsequent payments by way of consideration as may be so specified;
require the repayment of a refund allowed under this section where any requirement of the regulations is not complied with;
require the repayment of the whole or, as the case may be, an appropriate part of a refund allowed under this section where the claimant subsequently receives any payment (or further payment) by way of the consideration written off in his accounts as a bad debt;
include such supplementary, incidental, consequential or transitional provisions as appear to the Commissioners to be necessary or expedient for the purposes of this section;
make different provision for different circumstances.
The provisions which may be included in regulations by virtue of subsection (5)(f) above may include rules for ascertaining—
whether, when and to what extent consideration is to be taken to have been written off in accounts as a bad debt;
whether a payment is to be taken as received by way of consideration for a particular supply;
whether, and to what extent, a payment is to be taken as received by way of consideration written off in accounts as a bad debt.
The provisions which may be included in regulations by virtue of subsection (5)(f) above may include rules dealing with particular cases, such as those involving part payment or mutual debts; and in particular such rules may vary the way in which the following amounts are to be calculated—
the outstanding amount mentioned in subsection (2) above, and
the amount of any repayment where a refund has been allowed under this section.
No claim for a refund may be made under subsection (2) above in relation to a supply as regards which a refund is claimed, whether before or after the passing of this Act, under section 22 of the Value Added Tax Act 1983 (existing provision for refund in cases of bad debts).
Section 22 of that Act shall not apply in relation to any supply made after the day on which this Act is passed.
Sections 4 and 5 of that Act shall apply for determining the time when a supply is to be treated as taking place for the purposes of construing this section.
That Act shall be amended as follows—
in section 39(1A)(b) after the word “above” there shall be inserted the words “or section 11 of the Finance Act 1990”;
in section 40(1)(f) after the words “section 22 above” there shall be inserted the words “or section 11 of the Finance Act 1990”.
In section 13(2) of the Finance Act 1985, the word “and” at the end of paragraph (b) shall be omitted and after paragraph (c) there shall be inserted the words and.
Section 14 of the Value Added Tax Act 1983 (credit for input tax against output tax) shall be amended as follows.
The following subsection shall be inserted after subsection (3) (definition of “input tax”)—
The following subsection shall be inserted at the end—
This section applies in relation to goods or services supplied, and goods imported, on or after the day on which this Act is passed.
In section 16 of the Value Added Tax Act 1983 (zero-rating) the following subsection shall be inserted after subsection (6) (goods shipped for use as stores etc)—
This section applies in relation to supplies made after the day on which this Act is passed.
Section 29A of the Value Added Tax Act 1983 (supplies to groups) shall be amended as follows.
In subsection (1) for “and (3)” there shall be substituted “to (3A)”.
The following subsection shall be inserted after subsection (3)—
This section shall have effect in relation to transfers of assets made on or after 1st April 1990.
In paragraph 4(2) of Schedule 7 to the Value Added Tax Act 1983 after the words “so paid or credited,” there shall be inserted the words “or which would not have been so paid or credited had the facts been known or been as they later turn out to be,”.
This section shall apply in relation to an amount paid or credited to a person after the day on which this Act is passed.
Section 18 of the Finance Act 1985 (interest on tax etc. recovered or recoverable by assessment) shall be amended as follows.
In subsection (1) for the words from “tax” to “rate” there shall be substituted the words “whole of the amount assessed shall carry interest at the prescribed rate from the reckonable date”.
In subsection (3) for the words from “that tax” to “rate” there shall be substituted the words “the whole of the amount paid shall carry interest at the prescribed rate from the reckonable date”.
Subsections (4) and (5) shall cease to have effect.
In subsection (7) for “(4) and (5)” there shall be substituted “(1) and (3)”.
This section applies in relation to assessments made on or after the day on which this Act is passed.
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Income tax shall be charged for the year 1990-91, and—
the basic rate shall be 25 per cent.;
the basic rate limit shall be £20,700;
the higher rate shall be 40 per cent.; and
section 1(4) of the Taxes Act 1988 (indexation of basic rate limit) shall not apply.
In sections 1(5) and 257C(2) of the Taxes Act 1988, for the words from “between” to the end there shall be substituted the words “during the period beginning with 6th April and ending with 17th May in the year of assessment.”
In section 828 of that Act (orders and regulations), in subsection (4), for “257(11)” there shall be substituted “257C”.
Subsections (2) and (3) above shall have effect for the year 1990-91 and subsequent years of assessment.
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Corporation tax shall be charged for the financial year 1990 at the rate of 35 per cent.
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For the financial year 1990—
the small companies' rate shall be 25 per cent., and
the fraction mentioned in section 13(2) of the Taxes Act 1988 (marginal relief for small companies) shall be one-fortieth.
In section 13(3) of that Act (limits of marginal relief), in paragraphs (a) and (b)—
for “£150,000” there shall be substituted “£200,000”, and
for “£750,000” there shall be substituted “£1,000,000”.
Subsection (2) above shall have effect for the financial year 1990 and subsequent financial years; and where by virtue of that subsection section 13 of the Taxes Act 1988 has effect with different relevant maximum amounts in relation to different parts of a company’s accounting period, then for the purposes of that section those parts shall be treated as if they were separate accounting periods and the profits and basic profits of the company for that period shall be apportioned between those parts.
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The following section shall be inserted after section 155 of the Taxes Act 1988—
In section 154(2) of the Taxes Act 1988 for the words “section 155” there shall be substituted the words “sections 155 and 155A”.
This section applies for the year 1990-91 and subsequent years of assessment.
In Schedule 6 to the Taxes Act 1988 (taxation of directors and others in respect of cars) for Part I (tables of flat rate cash equivalents) there shall be substituted—
This section shall have effect for the year 1990-91 and subsequent years of assessment.
In section 202(7) of the Taxes Act 1988 (which limits to £480 the deductions attracting relief) for “£480” there shall be substituted “£600”.
This section shall have effect for the year 1990-91 and subsequent years of assessment.
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it is made on or after 1st October 1990,
it satisfies the requirements of subsection (2) below, and
the donor gives an appropriate certificate in relation to it to the charity.
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it takes the form of a payment of a sum of money;
it is not subject to a condition as to repayment;
it is not a covenanted payment to charity;
it does not constitute a sum falling within section 202(2) of the Taxes Act 1988 (payroll deduction scheme);
neither the donor nor any person connected with him receives a benefit in consequence of making it or, where the donor or a person connected with him does receive a benefit in consequence of making it, the relevant value in relation to the gift does not exceed two and a half per cent. of the amount of the gift and the amount to be taken into account for the purposes of this paragraph in relation to the gift does not exceed £250;
it is not conditional on or associated with, or part of an arrangement involving, the acquisition of property by the charity, otherwise than by way of gift, from the donor or a person connected with him;
the sum paid is not less than £600;
the sum paid does not, when aggregated with any other qualifying donations already made by the donor in the relevant year of assessment, exceed £5,000,000; and
the donor is resident in the United Kingdom at the time the gift is made.
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that the gift satisfies the requirements of subsection (2) above, and
that, either directly or by deduction from profits or gains brought into charge to tax in the relevant year of assessment, the donor has paid or will pay to the Board income tax of an amount equal to income tax at the basic rate for the relevant year of assessment on the grossed up amount of the gift.
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where there is one benefit received in consequence of making it which is received by the donor or a person connected with him, the value of that benefit;
where there is more than one benefit received in consequence of making it which is received by the donor or a person connected with him, the aggregate value of all the benefits received in consequence of making it which are received by the donor or a person connected with him.
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the relevant value in relation to the gift, and
the relevant value in relation to each gift already made to the charity by the donor in the relevant year of assessment which is a qualifying donation for the purposes of this section.
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“charity” has the same meaning as in section 506 of the Taxes Act 1988 and includes each of the bodies mentioned in section 507 of that Act;
“covenanted payment to charity” has the meaning given by section 660(3) of the Taxes Act 1988;
“relevant year of assessment”, in relation to a gift, means the year of assessment in which the gift is made;
references, in relation to a gift, to the grossed up amount are to the amount which after deducting income tax at the basic rate for the relevant year of assessment leaves the amount of the gift; and
references to profits or gains brought into charge to income tax are to profits or gains which are treated for the purposes of section 348 of the Taxes Act 1988 as brought into charge to income tax.
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Section 339 of the Taxes Act 1988 (charges on income: donations to charity) shall be amended as follows.
In subsection (1) after the word “payment” there shall be inserted the words “of a sum of money”.
In subsection (2) the words “and is not a close company” shall be omitted.
The following subsections shall be inserted after subsection (3)—
The following subsection shall be inserted after subsection (7)—
This section applies in relation to payments made on or after 1st October 1990.
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in subsection (1), after paragraph (b) there shall be inserted the words or;
in that subsection, for the words “be disregarded” onwards there shall be substituted the words “not be regarded as income for any income tax purpose.”;
in subsection (2), after the words “building society” there shall be inserted the words “or an institution authorised under the Banking Act 1987”; and
after subsection (3) there shall be inserted—
Schedule 5 to this Act (which contains provisions relating to building societies, deposit-takers and investors) shall have effect.
Relief is available under section 33(1) below where each of the seven conditions set out in subsections (2) to (8) below is fulfilled.
The first condition is that a person (the claimant) makes a disposal of shares, or his interest in shares, to the trustees of a trust which—
is a qualifying employee share ownership trust at the time of the disposal, and
was established by a company (the founding company) which immediately after the disposal was a trading company or the holding company of a trading group.
The second condition is that the shares—
are shares in the founding company,
form part of the ordinary share capital of the company,
are fully paid up,
are not redeemable, and
are not subject to any restrictions other than restrictions which attach to all shares of the same class or a restriction authorised by paragraph 7(2) of Schedule 5 to the Finance Act 1989.
The third condition is that, at any time in the entitlement period, the trustees—
are beneficially entitled to not less than 10 per cent. of the ordinary share capital of the founding company,
are beneficially entitled to not less than 10 per cent. of any profits available for distribution to equity holders of the founding company, and
would be beneficially entitled to not less than 10 per cent. of any assets of the founding company available for distribution to its equity holders on a winding-up.
The fourth condition is that the claimant obtains consideration for the disposal and, at any time in the acquisition period, all the amount or value of the consideration is applied by him in making an acquisition of assets or an interest in assets (replacement assets) which— but the preceding provisions of this subsection shall have effect without the words “, at any time in the acquisition period,” if the acquisition is made pursuant to an unconditional contract entered into in the acquisition period.
are, immediately after the time of the acquisition, chargeable assets in relation to the claimant, and
are not shares in, or debentures issued by, the founding company or a company which is (at the time of the acquisition) in the same group as the founding company;
The fifth condition is that, at all times in the proscribed period, there are no unauthorised arrangements under which the claimant or a person connected with him may be entitled to acquire any of the shares, or an interest in or right deriving from any of the shares, which are the subject of the disposal by the claimant.
The sixth condition is that no chargeable event occurs in relation to the trustees in— and “chargeable period” here means a year of assessment or (if the claimant is a company) an accounting period of the claimant for purposes of corporation tax.
the chargeable period in which the claimant makes the disposal,
the chargeable period in which the claimant makes the acquisition, or
any chargeable period falling after that mentioned in paragraph (a) above and before that mentioned in paragraph (b) above;
The seventh condition is that the disposal is made on or after 20th March 1990.
This section applies for the purposes of section 31 above.
The entitlement period is the period beginning with the disposal, and ending on the expiry of twelve months beginning with the date of the disposal.
The acquisition period is the period beginning with the disposal, and ending on the expiry of six months beginning with—
the date of the disposal, or
if later, the date on which the third condition (set out in section 31(4) above) first becomes fulfilled.
The proscribed period is the period beginning with the disposal, and ending on—
the date of the acquisition, or
if later, the date on which the third condition (set out in section 31(4) above) first becomes fulfilled.
All arrangements are unauthorised unless—
they arise wholly from a restriction authorised by paragraph 7(2) of Schedule 5 to the Finance Act 1989, or
they only allow one or both of the following as regards shares, interests or rights, namely, acquisition by a beneficiary under the trust and appropriation under an approved profit sharing scheme.
An asset is a chargeable asset in relation to the claimant at a particular time if—
at that time he is resident or ordinarily resident in the United Kingdom, and
were the asset to be disposed of at that time, a gain accruing to him would be a chargeable gain.
An asset is also a chargeable asset in relation to the claimant at a particular time if, were it to be disposed of at that time, any gain accruing to him on the disposal would be a chargeable gain—
in respect of which he would be chargeable to capital gains tax under section 12(1) of the Capital Gains Tax Act 1979 (non-resident with United Kingdom branch or agency), or
which would form part of his chargeable profits for corporation tax purposes by virtue of section 11(2)(b) of the Taxes Act 1988 (non-resident companies).
But an asset is not a chargeable asset in relation to the claimant at a particular time if, were he to dispose of the asset at that time, he would fall to be regarded for the purposes of any double taxation relief arrangements as not liable in the United Kingdom to tax on any gains accruing to him on the disposal; and “double taxation relief arrangements” means arrangements having effect by virtue of section 788 of the Taxes Act 1988 (as extended to capital gains tax by section 10 of the Capital Gains Tax Act 1979).
The question whether a trust is at a particular time a qualifying employee share ownership trust shall be determined in accordance with Schedule 5 to the Finance Act 1989; and “chargeable event” in relation to trustees has the meaning given by section 69 of that Act.
The expressions “holding company”, “trading company” and “trading group” have the meanings given by paragraph 1 of Schedule 20 to the Finance Act 1985; and “group” (except in the expression “trading group”) shall be construed in accordance with section 272 of the Taxes Act 1970.
“Ordinary share capital” in relation to the founding company means all the issued share capital (by whatever name called) of the company, other than capital the holders of which have a right to a dividend at a fixed rate but have no other right to share in the profits of the company.
Schedule 18 to the Taxes Act 1988 (group relief: equity holders and profits or assets available for distribution) shall apply for the purposes of section 31(4) above as if—
the trustees were a company,
the references to section 413(7) to (9) of that Act were references to section 31(4) above,
the reference in paragraph 7(1)(a) to section 413(7) of that Act were a reference to section 31(4) above, and
paragraph 7(1)(b) were omitted.
In a case where relief is available under this subsection the claimant shall, on making a claim in the period of two years beginning with the acquisition, be treated for the purposes of the 1979 Act—
as if the consideration for the disposal were (if otherwise of a greater amount or value) of such amount as would secure that on the disposal neither a gain nor a loss accrues to him, and
as if the amount or value of the consideration for the acquisition were reduced by the excess of the amount or value of the actual consideration for the disposal over the amount of the consideration which the claimant is treated as receiving under paragraph (a) above.
Relief is available under subsection (3) below where—
relief would be available under subsection (1) above but for the fact that part only of the amount or value mentioned in section 31(5) above is applied as there mentioned, and
all the amount or value so mentioned except for a part which is less than the amount of the gain (whether all chargeable gain or not) accruing on the disposal is so applied.
In a case where relief is available under this subsection the claimant shall, on making a claim in the period of two years beginning with the acquisition, be treated for the purposes of the 1979 Act—
as if the amount of the gain accruing on the disposal were reduced to the amount of the part mentioned in subsection (2)(b) above, and
as if the amount or value of the consideration for the acquisition were reduced by the amount by which the gain is reduced under paragraph (a) above.
Nothing in subsection (1) or (3) above shall affect the treatment for the purposes of the 1979 Act of the other party to the disposal or of the other party to the acquisition.
The provisions of the 1979 Act fixing the amount of the consideration deemed to be given for a disposal or acquisition shall be applied before the preceding provisions of this section are applied.
In this section “the 1979 Act” means the Capital Gains Tax Act 1979.
Subsection (2) below applies where—
a claim is made under section 33 above,
immediately after the time of the acquisition mentioned in section 31(5) above and apart from this section, any replacement asset was a chargeable asset in relation to the claimant,
the asset is a dwelling-house or part of a dwelling-house or land, and
there was a time in the period beginning with the acquisition and ending with the time when section 33(1) or (3) above falls to be applied such that, if the asset (or an interest in it) were disposed of at that time, it would be within section 101(1) of the Capital Gains Tax Act 1979 (relief on disposal of private residence) and the individual there mentioned would be the claimant or the claimant’s spouse.
In such a case the asset shall be treated as if, immediately after the time of the acquisition mentioned in section 31(5) above, it was not a chargeable asset in relation to the claimant.
Subsection (4) below applies where—
the provisions of section 33(1) or (3) above have been applied,
any replacement asset which, immediately after the time of the acquisition mentioned in section 31(5) above and apart from this section, was a chargeable asset in relation to the claimant consists of a dwelling-house or part of a dwelling-house or land, and
there is a time after section 33(1) or (3) above has been applied such that, if the asset (or an interest in it) were disposed of at that time, it would be within section 101(1) of the Capital Gains Tax Act 1979 and the individual there mentioned would be the claimant or the claimant’s spouse.
In such a case—
the asset shall be treated as if, immediately after the time of the acquisition mentioned in section 31(5) above, it was not a chargeable asset in relation to the claimant and adjustments shall be made accordingly, but
any gain treated as accruing in consequence of the application of paragraph (a) above shall be treated as accruing at the time mentioned in subsection (3)(c) above or, if there is more than one such time, at the earliest of them.
Subsection (6) below applies where—
a claim is made under section 33 above,
immediately after the time of the acquisition mentioned in section 31(5) above and apart from this section, any replacement asset was a chargeable asset in relation to the claimant,
the asset was an option to acquire (or to acquire an interest in) a dwelling-house or part of a dwelling-house or land,
the option has been exercised, and
there was a time in the period beginning with the exercise of the option and ending with the time when section 33(1) or (3) above falls to be applied such that, if the asset acquired on exercise of the option were disposed of at that time, it would be within section 101(1) of the Capital Gains Tax Act 1979 and the individual there mentioned would be the claimant or the claimant’s spouse.
In such a case the option shall be treated as if, immediately after the time of the acquisition mentioned in section 31(5) above, it was not a chargeable asset in relation to the claimant.
Subsection (8) below applies where—
the provisions of section 33(1) or (3) above have been applied,
any replacement asset which, immediately after the time of the acquisition mentioned in section 31(5) above and apart from this section, was a chargeable asset in relation to the claimant consisted of an option to acquire (or to acquire an interest in) a dwelling-house or part of a dwelling-house or land,
the option has been exercised, and
there is a time after section 33(1) or (3) above has been applied such that, if the asset acquired on exercise of the option were disposed of at that time, it would be within section 101(1) of the Capital Gains Tax Act 1979 and the individual there mentioned would be the claimant or the claimant’s spouse.
In such a case—
the option shall be treated as if, immediately after the time of the acquisition mentioned in section 31(5) above, it was not a chargeable asset in relation to the claimant and adjustments shall be made accordingly, but
any gain treated as accruing in consequence of the application of paragraph (a) above shall be treated as accruing at the time mentioned in subsection (7)(d) above or, if there is more than one such time, at the earliest of them.
References in this section to an individual include references to a person entitled to occupy under the terms of a settlement.
Subsection (2) below applies where—
a claim is made under section 33 above,
immediately after the time of the acquisition mentioned in section 31(5) above and apart from this section, any replacement asset was a chargeable asset in relation to the claimant,
the asset consists of shares, and
in the period beginning with the acquisition and ending when section 33(1) or (3) above falls to be applied relief is claimed under Chapter III of Part VII of the Taxes Act 1988 (business expansion scheme) in respect of the asset.
In such a case the asset shall be treated as if, immediately after the time of the acquisition mentioned in section 31(5) above, it was not a chargeable asset in relation to the claimant.
Subsection (4) below applies where—
the provisions of section 33(1) or (3) above have been applied,
any replacement asset which, immediately after the time of the acquisition mentioned in section 31(5) above and apart from this section, was a chargeable asset in relation to the claimant consists of shares, and
after section 33(1) or (3) above has been applied relief is claimed under Chapter III of Part VII of the Taxes Act 1988 in respect of the asset.
In such a case the asset shall be treated as if, immediately after the time of the acquisition mentioned in section 31(5) above, it was not a chargeable asset in relation to the claimant and adjustments shall be made accordingly.
Subsection (3) below applies where—
the provisions of section 33(1) or (3) above are applied,
a chargeable event occurs in relation to the trustees on or after the date on which the disposal is made (and whether the event occurs before or after the provisions are applied or the passing of this Act),
the claimant was neither an individual who died before the chargeable event occurs nor trustees of a settlement which ceased to exist before the chargeable event occurs, and
the condition set out below is fulfilled.
The condition is that, at the time the chargeable event occurs, the claimant or a person then connected with him is beneficially entitled to all the replacement assets.
In a case where this subsection applies, the claimant or connected person (as the case may be) shall be deemed for all purposes of the Capital Gains Tax Act 1979— at the relevant value.
to have disposed of all the replacement assets immediately before the time when the chargeable event occurs, and
immediately to have reacquired them,
The relevant value is such value as secures on the deemed disposal a chargeable gain equal to—
the amount by which the amount or value of the consideration mentioned in section 33(1)(b) above was treated as reduced by virtue of that provision (where it applied), or
the amount by which the amount or value of the consideration mentioned in section 33(3)(b) above was treated as reduced by virtue of that provision (where it applied).
In a case where subsection (3) above would apply if “all” read “any of” in subsection (2) above, subsection (3) shall nevertheless apply, but as if—
in subsection (3)(a) “all the replacement assets” read “the replacement assets concerned”, and
the relevant value were reduced to whatever value is just and reasonable.
Subsection (7) below applies where—
subsection (3) above applies (whether or not by virtue of subsection (5) above), and
before the time when the chargeable event occurs anything has happened as regards any of the replacement assets such that it can be said that a charge has accrued in respect of any of the gain carried forward by virtue of section 33(1) or (3) above.
If in such a case it is just and reasonable for subsection (3) above to apply as follows, it shall apply as if— but paragraph (a) above shall not apply so as to reduce the relevant value below that mentioned in paragraph (b) above.
the relevant value were reduced (or further reduced) to whatever value is just and reasonable, or
the relevant value were such value as secures that on the deemed disposal neither a gain nor a loss accrues (if that is just and reasonable);
For the purposes of subsection (6)(b) above the gain carried forward by virtue of section 33(1) or (3) above is the gain represented by the amount which by virtue of either of those provisions falls to be deducted from the expenditure allowable in computing a gain accruing on the disposal of replacement assets (that is, the amount found under subsection (4)(a) or (b) above, as the case may be).
In this section “chargeable event” in relation to trustees has the meaning given by section 69 of the Finance Act 1989.
Subsection (3) below applies where—
paragraphs (a) to (c) of section 36(1) above are fulfilled, and
the condition set out below is fulfilled.
The condition is that—
before the time when the chargeable event occurs, all the gain carried forward by virtue of section 33(1) or (3) above was in turn carried forward from all the replacement assets to other property on a replacement of business assets, and
at the time the chargeable event occurs, the claimant or a person then connected with him is beneficially entitled to all the property.
In a case where this subsection applies, the claimant or connected person (as the case may be) shall be deemed for all purposes of the 1979 Act— at the relevant value.
to have disposed of all the property immediately before the time when the chargeable event occurs, and
immediately to have reacquired it,
The relevant value is such value as secures on the deemed disposal a chargeable gain equal to—
the amount by which the amount or value of the consideration mentioned in section 33(1)(b) above was treated as reduced by virtue of that provision (where it applied), or
the amount by which the amount or value of the consideration mentioned in section 33(3)(b) above was treated as reduced by virtue of that provision (where it applied).
In a case where subsection (3) above would apply if “all the” in subsection (2) above (in one or more places) read “any of the”, subsection (3) shall nevertheless apply, but as if—
in subsection (3)(a) “all the property” read “the property concerned”, and
the relevant value were reduced to whatever value is just and reasonable.
Subsection (7) below applies where—
subsection (3) above applies (whether or not by virtue of subsection (5) above), and
before the time when the chargeable event occurs anything has happened as regards any of the replacement assets, or any other property, such that it can be said that a charge has accrued in respect of any of the gain carried forward by virtue of section 33(1) or (3) above.
If in such a case it is just and reasonable for subsection (3) above to apply as follows, it shall apply as if— but paragraph (a) above shall not apply so as to reduce the relevant value below that mentioned in paragraph (b) above.
the relevant value were reduced (or further reduced) to whatever value is just and reasonable, or
the relevant value were such value as secures that on the deemed disposal neither a gain nor a loss accrues (if that is just and reasonable);
For the purposes of subsections (2) and (6)(b) above the gain carried forward by virtue of section 33(1) or (3) above is the gain represented by the amount which by virtue of either of those provisions falls to be deducted from the expenditure allowable in computing a gain accruing on the disposal of replacement assets (that is, the amount found under subsection (4)(a) or (b) above, as the case may be).
For the purposes of subsection (2) above a gain is carried forward from assets to other property on a replacement of business assets if, by one or more claims under sections 115 to 121 of the 1979 Act, the chargeable gain accruing on a disposal of the assets is reduced, and as a result an amount falls to be deducted from the expenditure allowable in computing a gain accruing on the disposal of the other property.
In this section “the 1979 Act” means the Capital Gains Tax Act 1979.
Subsection (3) below applies where—
paragraphs (a) to (c) of section 36(1) above are fulfilled, and
the condition set out below is fulfilled.
The condition is that—
all the replacement assets were shares (new shares) in a company or companies,
there has been a transaction to which paragraph 10(1) of Schedule 13 to the Finance Act 1984 applies and as regards which all the new shares constitute the old asset and qualifying corporate bonds constitute the new asset, and
at the time the chargeable event occurs, the claimant or a person then connected with him is beneficially entitled to all the bonds.
In a case where this subsection applies, a chargeable gain shall be deemed to have accrued to the claimant or connected person (as the case may be); and the gain shall be deemed to have accrued immediately before the time when the chargeable event occurs and to be of an amount equal to the relevant amount.
The relevant amount is an amount equal to the lesser of—
the first amount, and
the second amount.
The first amount is—
the amount of the chargeable gain that would be deemed to accrue under paragraph 10(1)(b) of Schedule 13 to the Finance Act 1984 if there were a disposal of all the bonds at the time the chargeable event occurs, or
nil, if an allowable loss would be so deemed to accrue if there were such a disposal.
The second amount is an amount equal to—
the amount by which the amount or value of the consideration mentioned in section 33(1)(b) above was treated as reduced by virtue of that provision (where it applied), or
the amount by which the amount or value of the consideration mentioned in section 33(3)(b) above was treated as reduced by virtue of that provision (where it applied).
In a case where subsection (3) above would apply if “all the” in subsection (2) above (in one or more places) read “any of the”, subsection (3) shall nevertheless apply, but as if—
in subsection (5) above “all the bonds” read “the bonds concerned”,
the second amount were reduced to whatever amount is just and reasonable, and
the relevant amount were reduced accordingly.
Subsection (9) below applies where—
subsection (3) above applies (whether or not by virtue of subsection (7) above), and
before the time when the chargeable event occurs anything has happened as regards any of the new shares, or any of the bonds, such that it can be said that a charge has accrued in respect of any of the gain carried forward by virtue of section 33(1) or (3) above.
If in such a case it is just and reasonable for subsection (3) above to apply as follows, it shall apply as if—
the second amount were reduced (or further reduced) to whatever amount is just and reasonable, and
the relevant amount were reduced (or further reduced) accordingly (if the second amount is less than the first amount).
But nothing in subsection (9) above shall have the effect of reducing the second amount below nil.
For the purposes of subsection (8)(b) above the gain carried forward by virtue of section 33(1) or (3) above is the gain represented by the amount which by virtue of either of those provisions falls to be deducted from the expenditure allowable in computing a gain accruing on the disposal of replacement assets (that is, the amount found under subsection (6)(a) or (b) above, as the case may be).
An inspector may by notice in writing require a return to be made by the trustees of an employee share ownership trust in a case where—
a disposal of shares, or an interest in shares, has at any time been made to them, and
a claim is made under section 33(1) or (3) above.
Where he requires such a return to be made the inspector shall specify the information to be contained in it.
The information which may be specified is information the inspector needs for the purposes of sections 36 to 38 above, and may include information about—
expenditure incurred by the trustees;
assets acquired by them;
transfers of assets made by them.
The information which may be required under subsection (3)(a) above may include the purpose of the expenditure and the persons receiving any sums.
The information which may be required under subsection (3)(b) above may include the persons from whom the assets were acquired and the consideration furnished by the trustees.
The information which may be required under subsection (3)(c) above may include the persons to whom assets were transferred and the consideration furnished by them.
In a case where section 33(1) or (3) above has been applied, the inspector shall send to the trustees of the employee share ownership trust concerned a certificate stating—
that the provision concerned has been applied, and
the effect of the provision on the consideration for the disposal or on the amount of the gain accruing on the disposal (as the case may be).
For the purposes of this section, the question whether a trust is an employee share ownership trust shall be determined in accordance with Schedule 5 to the Finance Act 1989.
Section 39 of the Finance Act 1990.
Section 117 of the 1979 Act (roll-over relief: depreciating assets) shall be amended as mentioned in subsections (2) to (4) below.
In subsection (1) after “116 above” there shall be inserted “and section 33 of the Finance Act 1990”.
The following subsection shall be inserted after subsection (2)—
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In section 82(1)(a) of the Finance Act 1989 (computation of profits on Case I basis), for the words “, in respect of the period, are allocated to or expended on behalf of policy holders or annuitants” there shall be substituted the words “are allocated to, and any amounts of tax or foreign tax which are expended on behalf of, policy holders or annuitants in respect of the period”.
In section 436(3) of the Taxes Act 1988 (modified application of section 82 in relation to computations of profits of general annuity business or pension business), the words “and of the words “tax or” in section 82(1)(a)” shall be added at the end of paragraph (a).
The Finance Act 1989 shall be deemed always to have had effect with the amendment made by subsection (1) above, and the amendment made by subsection (2) above shall have the same effect as, by virtue of section 84(5)(b) of that Act, it would have had if it had been made by Schedule 8 to that Act.
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In section 85(2) of the Finance Act 1989 (receipts excluded from charge under Case VI of Schedule D), after paragraph (c) there shall be inserted—.
In section 86 of the Finance Act 1989 (spreading of relief for expenses), at the end of subsection (1) there shall be added the words “and less any reinsurance commissions falling within section 76(1)(ca) of that Act”.
In section 76(1) of the Taxes Act 1988 (treatment of expenses of management), after paragraph (c) there shall be inserted—.
Sections 85 and 86 of the Finance Act 1989 shall be deemed always to have had effect with the amendments made by subsections (1) and (2) above, and section 76 of the Taxes Act 1988 shall have effect as if the amendment made by subsection (3) above had been included among those made by section 87 of the Finance Act 1989.
Nothing in subsection (2) above applies to commissions in respect of the reinsurance of liabilities assumed by the recipient company in respect of insurances made before 14th March 1989, but without prejudice to the application of that subsection to any reinsurance commission attributable to a variation on or after that date in a policy issued in respect of such an insurance; and for this purpose the exercise of any rights conferred by a policy shall be regarded as a variation of it.
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for the words “policy holders' fraction” in both places where they occur there shall be substituted the words “policy holders' share”;
in paragraph (a), after the word “income” there shall be inserted the words “from investments held in connection with the company’s life assurance business”;
in paragraph (b), for the words “only to the shareholders' fraction of that income” there shall be substituted the words “to that income excluding the amount within paragraph (a) above”.
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in subsection (1), for the word “fraction” there shall be substituted the word “share”, and
in subsection (2), for the words “the relevant profits” onwards there shall be substituted the words ““the policy holders' share of the relevant profits” has the same meaning as in section 88 of the Finance Act 1989”.
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Where at the end of an accounting period the assets of an insurance company’s long term business fund include— then, subject to the following provisions of this section and to section 47 below, the company shall be deemed for the purposes of corporation tax on capital gains to have disposed of and immediately re-acquired each of the assets concerned at its market value at that time.
rights under an authorised unit trust, or
relevant interests in an offshore fund,
Subsection (1) above shall not apply to assets linked solely to pension business or to assets of the overseas life assurance fund, and in relation to other assets (apart from assets linked solely to basic life assurance business) shall apply only to the relevant chargeable fraction of each class of asset.
For the purposes of subsection (2) above “the relevant chargeable fraction” in relation to linked assets is the fraction of which—
the denominator is the mean of such of the opening and closing long term business liabilities as are liabilities in respect of benefits to be determined by reference to the value of linked assets, other than assets linked solely to basic life assurance business or pension business and assets of the overseas life assurance fund; and
the numerator is the mean of such of the opening and closing liabilities within paragraph (a) above as are liabilities of business the profits of which are not charged to tax under Case I or Case VI of Schedule D (disregarding section 85 of the Finance Act 1989).
For the purposes of subsection (2) above “the relevant chargeable fraction” in relation to assets other than linked assets is the fraction of which—
the denominator is the aggregate of—
the mean of the opening and closing long term business liabilities, other than liabilities in respect of benefits to be determined by reference to the value of linked assets and liabilities of the overseas life assurance business, and
the mean of the opening and closing amounts of the investment reserve; and
the numerator is the aggregate of—
the mean of such of the opening and closing liabilities within paragraph (a) above as are liabilities of business the profits of which are not charged to tax under Case I or Case VI of Schedule D (disregarding section 85 of the Finance Act 1989), and
the mean of the appropriate parts of the opening and closing amounts of the investment reserve.
For the purposes of this section an interest is a “relevant interest in an offshore fund” if—
it is a material interest in an offshore fund for the purposes of Chapter V of Part XVII of the Taxes Act 1988, or
it would be such an interest if the shares and interests excluded by subsections (6) and (8) of section 759 of that Act were limited to shares or interests in trading companies.
For the purposes of this section the amount of an investment reserve and the “appropriate part” of it shall be determined in accordance with section 432A(8) and (9) of the Taxes Act 1988.
In this section—
“authorised unit trust” has the same meaning as in section 468 of the Taxes Act 1988;
“market value” has the same meaning as in the Capital Gains Tax Act 1979;
“trading company” means a company— and in this section and section 47 below other expressions have the same meanings as in Chapter I of Part XII of the Taxes Act 1988.
whose business consists of the carrying on of insurance business, or the carrying on of any other trade which does not consist to any extent of dealing in commodities, currency, securities, debts or other assets of a financial nature, or
whose business consists wholly or mainly of the holding of shares or securities of trading companies which are its 90 per cent. subsidiaries;
Schedule 8 to this Act (which contains transitional provisions relating to the charge imposed by this section) shall have effect.
Subject to the provisions of Schedule 8, this section shall have effect in relation to accounting periods beginning on or after 1st January 1991 or, where the Treasury by order appoint a later day, in relation to accounting periods beginning on or after that day (and not in relation to any earlier accounting period, even if the order is made after 1st January 1991 and the period has ended before it is made).
Any chargeable gains or allowable losses which would otherwise accrue on disposals deemed by virtue of section 46 above to have been made at the end of a company’s accounting period shall be treated as not accruing to it, but instead—
there shall be ascertained the difference (“the net amount”) between the aggregate of those gains and the aggregate of those losses, and
one seventh of the net amount shall be treated as a chargeable gain or, where it represents an excess of losses over gains, as an allowable loss accruing to the company at the end of the accounting period, and
a further one seventh shall be treated as a chargeable gain or, as the case may be, as an allowable loss accruing at the end of each succeeding accounting period until the whole amount has been accounted for.
For any accounting period of less than one year, the fraction of one seventh referred to in subsection (1)(c) above shall be proportionately reduced; and where this subsection has had effect in relation to any accounting period before the last for which subsection (1)(c) above applies, the fraction treated as accruing at the end of that last accounting period shall also be adjusted appropriately.
Where— the net amounts for both the earlier and the later period shall be reduced by the amount in respect of which the claim is made.
the net amount for an accounting period of an insurance company represents an excess of gains over losses,
the net amount for one of the next six accounting periods (after taking account of any reductions made by virtue of this subsection) represents an excess of losses over gains,
there is (after taking account of any such reductions) no net amount for any intervening accounting period, and
within two years after the end of the later accounting period the company makes a claim for the purpose in respect of the whole or part of the net amount for that period,
Subject to subsection (5) below, where a company ceases to carry on long term business before the end of the last of the accounting periods for which subsection (1)(c) above would apply in relation to a net amount, the fraction of that amount that is treated as accruing at the end of the accounting period ending with the cessation shall be such as to secure that the whole of the net amount has been accounted for.
Where there is a transfer of the whole or part of the long term business of an insurance company (“the transferor”) to another company (“the transferee”) in accordance with a scheme sanctioned by a court under section 49 of the Insurance Companies Act 1982, any chargeable gain or allowable loss which (assuming that the transferor had continued to carry on the business transferred) would have accrued to the transferor by virtue of subsection (1) above after the transfer shall instead be deemed to accrue to the transferee.
Where subsection (5) above has effect, the amount of the gain or loss accruing at the end of the first accounting period of the transferee ending after the day when the transfer takes place shall be calculated as if that accounting period began with the day after the transfer.
Where the transfer is of part only of the transferor’s long term business, subsection (5) above shall apply only to such part of any amount to which it would otherwise apply as is appropriate.
Any question arising as to the operation of subsection (7) above shall be determined by the Special Commissioners who shall determine the question in the same manner as they determine appeals; but both the transferor and transferee shall be entitled to appear and be heard or to make representations in writing.
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in sub-paragraph (i), for “£100” there shall be substituted “£150”; and
after that sub-paragraph there shall be inserted—.
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In paragraph 3(8)(b)(ii) of Schedule 15 to that Act (amount of premiums to be disregarded in determining whether a policy meets conditions for it to be a qualifying policy), after the word “premiums” there shall be inserted the words “ or, where those premiums are payable otherwise than annually, an amount equal to 10 per cent. of those premiums if that is greater ”.
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Section 463 of the Taxes Act 1988 (application to life or endowment business of friendly societies of Corporation Tax Acts as they apply to mutual life assurance business) shall be renumbered as subsection (1) of that section.
After that provision as so renumbered there shall be added—
The Taxes Act 1988 shall have effect subject to the following provisions of this section.
In section 468 (authorised unit trusts) subsection (5) shall not apply as regards a distribution period beginning after 31st December 1990.
Where a particular distribution period is by virtue of subsection (2) above the last distribution period as regards which section 468(5) applies in the case of a trust, the trustees’ liability to income tax in respect of any source of income chargeable under Case III of Schedule D shall be assessed as if they had ceased to possess the source of income on the last day of that distribution period.
But where section 67 of the Taxes Act 1988 applies by virtue of subsection (3) above, it shall apply with the omission from subsection (1)(b) of the words from “and shall” to “this provision”.
Section 468B (certified unit trusts: corporation tax) shall not apply as regards an accounting period ending after 31st December 1990.
Section 468C (certified unit trusts: distributions) shall not apply as regards a distribution period ending after 31st December 1990.
Section 468D (funds of funds: distributions) shall not apply as regards a distribution period ending after 31st December 1990.
In this section “distribution period” has the same meaning as in section 468 of the Taxes Act 1988.
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Section 732 of the Taxes Act 1988 (application of bond-washing provisions to dealers in securities) shall have effect, and be deemed always to have had effect, with the insertion of the following subsection after subsection (5)—
Section 472 of the Taxes Act 1970 (corresponding provision of the old law) shall be deemed always to have had effect with the insertion after subsection (5) of the subsection set out in subsection (1) above.
The provisions specified in subsection (2) below (which provide for an indexation allowance on the disposal of assets) shall not apply in the case of a disposal if each of the three conditions set out below is fulfilled.
The provisions are—
in the Finance Act 1982, sections 86(4) and 87 and, in Schedule 13, paragraphs 1 to 7, 8(2)(c) and 10(3), and
in the Finance Act 1985, section 68(4) to (8) and, in Schedule 19, paragraphs 1(3), 2, 5, 7(3), 8(1)(b) and (c), 11 to 15, 18, 22 and 23.
The first condition is that the disposal is of rights in property to which collective investment arrangements relate; and—
collective investment arrangements are arrangements which constitute a collective investment scheme;
“collective investment scheme” has the same meaning as in the Financial Services Act 1986.
Subject to subsection (5) below, the second condition is that, at some time in the relevant ownership period, not less than 90 per cent. of the market value (at that time) of the investment property then falling within the arrangements was represented by—
non-chargeable assets,
shares in a building society, or
such assets and such shares.
In a case where— subsection (4) above shall have effect as if the reference to the arrangements were to the separate part.
the arrangements are ones under which the contributions of the participants, and the profits or income out of which payments are to be made to them, are pooled in relation to separate parts of the property in question, and
the disposal is of rights in property falling within a separate part,
For the purposes of subsection (4) above the relevant ownership period is the period which begins with the later of— and ends with the day on which the disposal is made.
the earliest date on which any relevant consideration was given for the acquisition of the rights, and
1st April 1982,
For the purposes of subsection (4) above investment property is all property other than cash awaiting investment.
For the purposes of subsection (4) above an asset is a non-chargeable asset if, were it to be disposed of— any gain accruing on the disposal would not be a chargeable gain.
at the time the rights are disposed of, and
by a person resident in the United Kingdom,
In subsection (4)(b) above “shares” and “building society” have the same meanings as in the Building Societies Act 1986.
For the purposes of subsection (6) above relevant consideration is consideration which, assuming the application of Chapter II of Part II of the Capital Gains Tax Act 1979 to the disposal of the rights, would fall to be taken into account in determining the amount of the gain or loss accruing on the disposal, whether that consideration was given by or on behalf of the person making the disposal or by or on behalf of a predecessor in title of his whose acquisition cost represents (directly or indirectly) the whole or any part of the acquisition cost of the person making the disposal.
The third condition is that the disposal is made on or after 20th March 1990.
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In section 842 of the Taxes Act 1988 (investment trusts) the following subsections shall be inserted after subsection (2)—
This section applies in relation to accounting periods ending on or after the day on which this Act is passed.
In Schedule 11 to the Finance Act 1989 (deep gain securities) paragraph 1 (meaning of deep gain security) shall be amended as follows.
The following sub-paragraph shall be inserted after sub-paragraph (3)—
The amendment made by this section shall be deemed always to have had effect.
In Schedule 11 to the Finance Act 1989 (deep gain securities) paragraph 2 (qualifying indexed securities) shall be amended as follows.
In sub-paragraph (2)(c) for the words from “the security” to “8th June 1989” there shall be substituted the words “the security was quoted in the official list of a recognised stock exchange at the time it was issued”.
If a security was issued before 9th June 1989, was not quoted in the official list of a recognised stock exchange at the time it was issued, but was quoted in such a list on 8th June 1989, for the purposes of sub-paragraph (2)(c) above it shall be deemed to have been quoted in that list at the time it was issued. If a security was issued on or after 9th June 1989, and was quoted in the official list of a recognised stock exchange at a time after it was issued but before the end of the qualifying period, for the purposes of sub-paragraph (2)(c) above it shall be deemed to have been quoted in that list at the time it was issued; and the qualifying period is the period of one month beginning with the day on which the security was issued.
In a case where the terms of issue contain provision for the amount payable on redemption to be not less than a specified percentage of the issue price, the provision shall not prevent the fourth condition being fulfilled if the specified percentage is not greater than 10.
In a case where— the provision shall not prevent the fourth condition being fulfilled.
In sub-paragraph (13)—
for the words “and (12)” there shall be substituted the words “, (12) and (12A)”, and
in paragraph (d) the words “before 9th June 1989” shall be omitted.
The amendments made by this section shall be deemed always to have had effect.
In Schedule 4 to the Taxes Act 1988 (deep discount securities) paragraph 1 (interpretation) shall be amended as follows.
Notwithstanding anything in sub-paragraph (1) above, for the purposes of this Schedule a security is not a deep discount security if—
This section shall come into force on 1st August 1990.
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at the beginning there shall be inserted the words “Subject to the following provisions of this section”; and
for the words “accounting period” there shall be substituted “calendar year”.
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In Schedule 8 to the Finance Act 1988 (capital gains: assets held on 31st March 1982) in paragraph 12 (certain disposals excluded from elections under section 96(5) of that Act), in sub-paragraph (2) at the end of paragraph (c) there shall be inserted or.
For the purposes of sub-paragraph (2)(d) above,— but nothing in this paragraph affects the operation, in relation to such unquoted shares, of sections 77 to 81 of the Capital Gains Tax Act 1979 (under which, on a reorganisation etc., a new holding may fall to be treated as the same asset as the original shares). In sub-paragraph (2)(d) above— For the purposes of sub-paragraph (2)(d) above an asset is an oil exploration or exploitation asset if either— and, subject to sub-paragraph (2D) below, expressions used in paragraphs (a) and (b) above have the same meaning as if those paragraphs were included in Part I of the Oil Taxation Act 1975. In the preceding provisions of this paragraph “oil exploration or exploitation activities” means activities carried on in connection with— and in this sub-paragraph “oil” has the same meaning as in Part I of the Oil Taxation Act 1975.
The amendments made by subsections (1) and (2) above have effect with respect to disposals on or after 22nd January 1990.
Notwithstanding that, apart from this subsection, an election under section 96(5) of the Finance Act 1988 is irrevocable, where— the election may be revoked by notice in writing given to the inspector before 1st January 1991 by the person by whom the election was made.
such an election has been made before 22nd January 1990, and
apart from subsection (1) above, the assets to the disposal of which the election would apply include assets falling within paragraph 12(2)(d) of Schedule 8 to the Finance Act 1988 (as set out in subsection (1) above),
This section applies to a disposal of an oil industry asset where the following conditions are fulfilled—
the disposal occurs on or after 22nd January 1990;
the person making the disposal held the asset on 31st March 1982 or, by virtue of paragraph 1 of Schedule 8 to the Finance Act 1988 (previous no gain/no loss disposals), is treated as having held the asset on that date for the purposes of section 96 of that Act (rebasing to 1982 of assets held on 31st March 1982);
disregarding the following provisions of this section, for the purposes of capital gains tax, a loss would accrue on the disposal; and
in the application of section 96 of the Finance Act 1988 to the disposal, subsection (2) of that section (the rebasing to 1982 values) does not apply because of the operation of subsection (3)(b) of that section (a smaller loss accrues if subsection (2) does not apply).
For the purposes of this section, the following are “oil industry assets”—
a licence under the Petroleum (Production) Act 1934 or the Petroleum (Production) Act (Northern Ireland) 1964;
shares falling within sub-paragraph (2)(d) of paragraph 12 of Schedule 8 to the Finance Act 1988 (exclusion of certain disposals from elections under section 96(5) of the Finance Act 1988);
oil exploration or exploitation assets, which expression shall be construed, subject to subsection (3) below, in accordance with sub-paragraphs (2C) and (2D) of the said paragraph 12; and
any interest in an asset falling within paragraphs (a) to (c) above.
In the application of sub-paragraph (2C)(b) of paragraph 12 of Schedule 8 to the Finance Act 1988 for the purposes of subsection (2)(c) above, for the words from “the company whose shares” to “that company” there shall be substituted “the person making the disposal or a person connected with him”.
Where this section applies to a disposal, there shall be determined for the purposes of this section the loss or gain which would accrue on the disposal on the following assumptions— and in the following provisions of this section the loss or gain (if any) on the disposal, determined on those assumptions, is referred to as the non-rebased loss or, as the case may be, the non-rebased gain.
that subsection (2) of section 96 of the Finance Act 1988 continues not to apply on the disposal; and
that, in calculating the indexation allowance on the disposal, subsection (4) of section 68 of the Finance Act 1985 (indexation based on 1982 values) does not apply;
If there is a non-rebased loss on a disposal to which this section applies and that loss is less than the loss which accrues on the disposal as mentioned in subsection (1)(c) above, it shall be assumed for the purposes of capital gains tax that the loss which accrues on the disposal is the non-rebased loss.
If there is a non-rebased gain on a disposal to which this section applies, it shall be assumed for the purposes of capital gains tax that the oil industry asset concerned was acquired by the person making the disposal for a consideration such that, on the disposal, neither a gain nor a loss accrues to him.
If, on the determination referred to in subsection (4) above, there is neither a non-rebased loss nor a non-rebased gain on a disposal, subsection (6) above shall apply in relation to the disposal as if there were a non-rebased gain on the disposal.
In section 267 of the Taxes Act 1970 (company reconstructions etc.) after subsection (2) there shall be inserted—
In section 273 of the Taxes Act 1970 (transfers within a group) in subsection (2), after paragraph (d) there shall be inserted or
and in this subsection “the old assets” and “the new assets” have the same meanings as in section 115 of the Capital Gains Tax Act 1979, and “dual resident investing company” has the same meaning as in section 404 of the Taxes Act 1988.
Subsections (1) and (2) above shall apply to disposals on or after 20th March 1990.
Subject to subsection (6) below, subsection (3) above shall apply where the disposal of, or of the interest in, the old assets or the acquisition of, or of the interest in, the new assets (or both) takes place on or after 20th March 1990.
Subsection (3) above shall not apply where the acquisition takes place before 20th March 1990 and the disposal takes place within the period of twelve months beginning with the date of the acquisition or such longer period as the Board may by notice in writing allow.
In sections 742(8) and 745(4) of the Taxes Act 1988, after the words “incorporated outside the United Kingdom” there shall be inserted the words “, or regarded for the purposes of any double taxation arrangements having effect by virtue of section 788 as resident in a territory outside the United Kingdom,”.
Subject to subsection (3) below, this section shall apply in relation to transfers of assets and associated operations on or after 20th March 1990.
In so far as the amendment of subsection (4) of section 745 relates to subsections (3)(b) and (5) of that section, it shall come into force on that date.
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In Schedule 25 to that Act—
paragraphs 2(1)(c) and 4(1)(c) shall be omitted,
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Subsections (1) and (2) above shall apply on and after 20th March 1990 and subsection (3) above shall apply to dividends paid on or after that date.
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In section 98 of the Taxes Management Act 1970 (penalties for failure to furnish information and for false information)—
in subsection (1), after the words “Subject to” there shall be inserted the words “ the provisions of this section and ”;
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This section shall apply to transactions carried out on or after 1st July 1990.
Schedule 11 to this Act (which makes provision about the taxation of income and gains in the case of European Economic Interest Groupings) shall have effect.
After section 273 of the Taxes Act 1970 there shall be inserted—
In section 272(1) of the Taxes Act 1970—
for the word “For” there shall be substituted the words “Except as otherwise provided, for”, and
the words “, subject to section 280(7) below,” shall be omitted.
In section 275 of that Act for subsection (1) there shall be substituted—
In section 281(2) of that Act, after the words “section 273” there shall be inserted the words “or 273A”.
In section 126C(4) of the Capital Gains Tax Act 1979—
after the words “section 273” there shall be inserted the words “or 273A”,
for the words “that section applies” there shall be substituted the words “either of those sections applies”, and
for the words “that section does not apply” there shall be substituted the words “neither of those sections applies”.
In paragraph 10(2)(c) of Schedule 13 to the Finance Act 1984, after the words “section 273(1)” there shall be inserted the words “or 273A”.
In— after “273,” there shall be inserted “273A,”.
section 68(7A)(b) of the Finance Act 1985, and
paragraph 1(3)(b) of Schedule 8 to the Finance Act 1988,
In paragraph 5 of Schedule 11 to the Finance Act 1988—
for the words “of the Taxes Act 1970 (which treats” there shall be substituted the words “or 273A of the Taxes Act 1970 (which treat”, and
for the words “section 273(1)”, in the second place where they occur, there shall be substituted the words “either of those sections”.
This section shall apply to disposals on or after 20th March 1990.
For the year 1990-91 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.
In Schedule 4 to the Finance Act 1988 (business expansion scheme: private rented housing), in paragraph 13 (exclusion of expensive dwelling-houses)—
in sub-paragraph (2) (assumptions to be made in arriving at value at the relevant date), for paragraph (a) there shall be substituted—; and
sub-paragraph (3) (which includes the assumption that the locality was in the same state as at the valuation date) shall be omitted.
This section shall apply where the valuation date is on or after 20th March 1990.
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In section 68 of the Finance Act 1988 (which provides for the benefits derived from priority rights in share offers to be disregarded in certain circumstances), after subsection (3) there shall be inserted—
This section applies to offers made on or after the day on which this Act is passed.
Schedule 12 to this Act shall have effect.
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The following section shall be inserted at the end of Part XIV of the Taxes Act 1988 (pension schemes etc.)—
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Section 659 of the Taxes Act 1988 (financial futures and traded options) shall cease to have effect.
Subsections (1) and (2) above apply in relation to income derived after the day on which this Act is passed.
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Insofar as section 659 of the Taxes Act 1988 relates to provisions of that Act, subsection (4) above applies in relation to income derived after the day on which this Act is passed.
Insofar as section 659 of the Taxes Act 1988 relates to section 149B of the Capital Gains Tax Act 1979, subsection (4) above applies in relation to disposals made after the day on which this Act is passed.
In section 663 of the Taxes Act 1988 (child’s income treated as settlor's) in subsection (4) (exception for income not exceeding £5) for “£5” there shall be substituted “£100”.
This section shall have effect for the year 1991-92 and subsequent years of assessment.
Section 136 of the Capital Gains Tax Act 1979 (relief in respect of loans to traders) shall be amended as follows.
The following subsections shall be inserted after subsection (5)—
In subsection (6) for “subsection (5)” there shall be substituted “subsections (5) to (5C)”.
The following subsection shall be inserted after subsection (9)—
This section applies where an amount is recovered on or after 20th March 1990.
In Part II of Schedule 13 to the Finance Act 1984 (qualifying corporate bonds: reorganisations etc.) the following paragraph shall be inserted after paragraph 11—
This section applies whether the relevant transaction occurs before or on or after the day on which this Act is passed.
In subsection (1F) of section 272 of the Taxes Act 1970 (application of Schedule 18 to Taxes Act 1988 for determining membership of groups for capital gains purposes), for the words “paragraph 7(1)(b) were omitted” there shall be substituted the words “paragraphs 5(3) and 7(1)(b) were omitted”.
Subject to subsection (3) below, the amendment made by subsection (1) above shall be deemed always to have had effect.
If a company which (apart from this subsection) is the principal company of a group (within the meaning of section 272) at any time during the period beginning with 14th March 1989 and ending with 25th January 1990 so elects, in determining whether a company is a member of the group at any time during that period subsection (1F) of that section shall apply as if the amendment made by subsection (1) above did not have effect.
An election under subsection (3) above shall be irrevocable and shall be made by notice in writing to the inspector at any time within two years after the end of the first accounting period of the principal company ending after 31st January 1990.
There may be made any such adjustment, whether by way of discharge or repayment of tax, the making of an assessment or otherwise, as is appropriate in consequence of an election under subsection (3) above.
In section 27 of the Capital Allowances Act 1990 (professions, employments, vocations etc.) in subsection (1) for the words “and (3)”there shall be substituted the words “to (3)”.
The following subsections shall be inserted after subsection (2) of that section—
Where— Part II of the Capital Allowances Act 1990 shall have effect as if he had incurred capital expenditure on the provision of the machinery for the purposes of the office or employment in the year 1990-91, the amount of that expenditure being taken as the price which the machinery would have fetched if sold in the open market on 6th April 1990, and the machinery being treated as belonging to him in consequence of his having incurred that expenditure.
at the beginning of the year 1990-91 machinery consisting of a mechanically propelled road vehicle is provided by a person for use in the performance of the duties of an office or employment held by him, and
the machinery was also provided by him at the end of the year 1989-90 for use in the performance of the duties of that office or employment but without that provision being necessary,
This section shall apply for the year 1990-91 and subsequent years of assessment.
Schedule 13 to this Act shall have effect.
Schedule 14 to this Act shall have effect.
The following sections shall be substituted for sections 8 and 9 of the Taxes Management Act 1970 (return of income)—
In section 12 of that Act (information about chargeable gains)—
in subsection (1) for the words “Section 8” there shall be substituted the words “ Sections 8 and 8A ” and for the words “it applies” there shall be substituted the words “ they apply ”;
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in subsection (4) the words “of income of a partnership” shall be omitted.
In section 93 of that Act (penalties) in subsection (1) for the words “9 of this Act (or either” there shall be substituted the words “ 8A or 9 of this Act (or any ”.
In section 95 of that Act (penalties) in subsection (1)(a) for the words “9 of this Act (or either” there shall be substituted the words “ 8A or 9 of this Act (or any ”.
This section applies where a notice to deliver a return was, or falls to be, given after 5th April 1990.
Section 11 of the Taxes Management Act 1970 (return of profits) shall be amended as follows.
In subsection (1), for the words from “the profits” to the end there shall be substituted the words such information as may be required in pursuance of the notice together with such accounts, statements and reports as may be so required.
In subsection (2), for the words “of profits and losses arising in” there shall be substituted the word “for”.
In subsection (3) (return to include declaration that return is correct and complete)—
after the word “declaration” there shall be inserted the words “by the person making the return”; and
after the word “is” there shall be inserted the words “to the best of his knowledge”.
In subsection (8), the words from “or different” to the end shall be omitted.
The following subsection shall be inserted after subsection (8)—
Subsection (4) above shall apply with respect to any notice served on or after the day on which this Act is passed.
Subsections (2), (3) and (5) to (7) above shall apply with respect to any notice served after the day appointed for the purposes of section 82 of the Finance (No.2) Act 1987.
Section 17 of the Taxes Management Act 1970 (interest paid or credited by banks etc. without deduction of income tax) shall be amended as mentioned in subsections (2) and (3) below.
In subsection (1)—
after the words “without deduction of income tax” there shall be inserted the words “ or after deduction of income tax ”;
after the words “the amount of the interest” there shall be inserted the words “ actually paid or credited and (where the interest was paid or credited after deduction of income tax) the amount of the interest from which the tax was deducted and the amount of the tax deducted ”;
paragraph (a) of the proviso shall be omitted.
after the words “without deduction of income tax” there shall be inserted the words “or after deduction of income tax”;
after the words “the amount of the interest” there shall be inserted the words “actually paid or credited and (where the interest was paid or credited after deduction of income tax) the amount of the interest from which the tax was deducted and the amount of the tax deducted”;
paragraph (a) of the proviso shall be omitted.
The following subsections shall be inserted after subsection (4)—
Section 18 of that Act (interest paid without deduction of income tax) shall be amended as mentioned in subsections (5) and (6) below.
In subsection (1)—
after the words “without deduction of income tax” there shall be inserted the words “ or after deduction of income tax ”;
in paragraph (b) for the words “so paid or received” there shall be substituted the words “ actually paid or received and (where the interest has been paid or received after deduction of income tax) the amount of the interest from which the tax has been deducted and the amount of the tax deducted ”;
for the words “its amount” there shall be substituted the words “ the amount actually received and (where the interest has been received after deduction of income tax) the amount of the interest from which the tax has been deducted and the amount of the tax deducted ”.
The following subsections shall be inserted after subsection (3A)—
Subsections (1) to (3) above shall have effect as regards a case where interest is paid or credited in the year 1991-92 or a subsequent year of assessment.
Subsections (4) to (6) above shall have effect as regards a case where interest is paid in the year 1991-92 or a subsequent year of assessment.
In section 20 of the Taxes Management Act 1970 (powers to call for information), after subsection (7) there shall be inserted—
This section shall apply with respect to notices given on or after the day on which this Act is passed.
The Board may require a charity to produce for inspection by an officer of the Board all such books, documents and other records in the possession, or under the control, of the charity as contain information relating to payments made on or after 1st October 1990 and in respect of which the charity has made a claim to repayment of tax by virtue of section 339 of the Taxes Act 1988 (donations to charity by companies) or section 25 of this Act.
For the purposes of subsection (1) above “charity” has the same meaning as in section 506 of the Taxes Act 1988 and includes—
each of the bodies mentioned in section 507 of that Act, and
any Association of a description specified in section 508 of that Act (scientific research organisations).
Section 94(1) of the Finance Act 1990.
The following sections shall be inserted after section 41 of the Taxes Management Act 1970—
This section applies in relation to accounting periods ending after the day appointed for the purposes of section 10 of the Taxes Act 1988 (pay and file).
This section applies where—
a determination of an amount for an accounting period of a company (“the surrendering company”) is made under section 41A of the Taxes Management Act 1970, and
immediately after the determination, or a direction relating to it under section 41B of that Act, becomes final, the amount of relief of any description which the surrendering company consents to surrender by way of group relief for the period (“the surrendered amount”) exceeds the amount which, in relation to relief of that description, is the relevant amount for the period.
For the purposes of subsection (1) above, the amount which is, at any time, the relevant amount in relation to relief of any description for an accounting period of a company is—
the amount of relief of that description available to the company for surrender by way of group relief for the period, less
so much, if any, of that amount as represents relief given in an assessment on the surrendering company which has become final and conclusive.
The surrendering company shall make whatever adjustment of the surrendered amount is necessary in consequence of the determination or direction (“the necessary adjustment”) by reducing or withdrawing consent to surrender before the end of 30 days from the date on which the determination or direction becomes final.
If the surrendering company fails to make the necessary adjustment within the period mentioned in subsection (3) above, it shall be made—
except where paragraph (b) below applies, in such manner as may be specified by the inspector by notice in writing to the surrendering company and to the company or, if more than one, each company whose claim for group relief is affected by the adjustment, or
where the surrendering company gives notice in writing to the inspector within the relevant period, in such manner as may be specified in the notice given by the surrendering company.
For the purposes of subsection (4)(b) above the relevant period is the period of 30 days beginning with the day on which notice under subsection (4)(a) above is given to the surrendering company.
The power to make an assessment under section 412(3) of the Taxes Act 1988 (power to assess where inspector discovers that group relief which has been given is or has become excessive) shall also be exercisable where group relief which has been given becomes excessive in consequence of the making of the necessary adjustment.
Subsection (8) below applies where any tax to which a company (“the chargeable company”) becomes liable in consequence of the making of the necessary adjustment has been assessed on the company and is unpaid at the end of 6 months from the date on which the assessment becomes final and conclusive (“the relevant date”).
Any other company which has obtained group relief by virtue of a surrender by the surrendering company for the accounting period to which the necessary adjustment relates may, within 2 years from the relevant date, be assessed and charged (in the name of the chargeable company) to an amount not exceeding the lesser of—
the amount of the unpaid tax, and
the amount of tax which the other company saves by virtue of the surrender.
A company paying an amount of tax under subsection (8) above shall be entitled to recover from the chargeable company a sum equal to that amount together with any interest on that amount which it has paid under section 87A of the Taxes Management Act 1970.
An assessment by virtue of subsection (6) above shall not be out of time if made within one year from the date on which the determination or direction giving rise to the making of the necessary adjustment becomes final.
In subsection (1)(b) above, the reference to the amount of relief of any description which the surrendering company consents to surrender by way of group relief for the period includes a reference to the amount of relief of that description which the surrendering company consents to surrender for any assumed accounting period under section 409 of the Taxes Act 1988 (companies joining or leaving group or consortium) which is comprised in the period.
In section 87A of the Taxes Management Act 1970 (interest on overdue corporation tax etc.) in subsection (3) after the words “1970” there shall be inserted the words “, section 96(8) of the Finance Act 1990”.
Section 42 of the Taxes Management Act 1970 (claims) shall be amended as follows.
In subsection (5) (form of claims) there shall be inserted at the beginning the words “Subject to subsection (5A) below,”.
The following subsection shall be inserted after subsection (5)—
The following subsection shall be inserted after subsection (10)—
This section applies in relation to claims relating to income of accounting periods ending after the day appointed for the purposes of section 10 of the Taxes Act 1988 (pay and file).
The Taxes Act 1988 shall be amended as follows.
In section 7(2) (set off against corporation tax of income tax deducted from payments received by resident companies) the words from “and accordingly” to the end shall be omitted.
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In section 11(3) (set off against corporation tax of income tax deducted from payments received by non-resident companies) the words from “and accordingly” to the end shall be omitted.
This section applies in relation to income tax falling to be set off against corporation tax for accounting periods ending after the day appointed for the purposes of section 10 of the Taxes Act 1988 (pay and file).
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The Taxes Act 1988 shall be amended as follows.
In section 393 (relief for trading losses) in subsection (1) (carry forward of losses on the making of a claim)— and in subsection (11) (time limit for claims) the words from the beginning to “of six years; and” shall be omitted.
for the words “the company may make a claim requiring that the loss” there shall be substituted the words “the loss shall”, and
for the words “on that claim” there shall be substituted the words “under this subsection”;
In section 396 (relief for Case VI losses on the making of a claim)—
in subsection (1) for the words “the company may make a claim requiring that the loss” there shall be substituted the words “the loss shall”, and
subsection (3) (time limit for claims) shall cease to have effect.
This section applies in relation to accounting periods ending after the day appointed for the purposes of section 10 of the Taxes Act 1988 (pay and file).
The Taxes Act 1988 shall be amended as follows.
In section 412 (group relief: claims and adjustments) the following subsection shall be substituted for subsections (1) and (2)—
The Schedule set out in Schedule 15 to this Act shall be inserted after Schedule 17.
This section has effect as respects claims for group relief for accounting periods ending after the day appointed for the purposes of section 10 of the Taxes Act 1988 (pay and file).
The following section shall be inserted after section 411 of the Taxes Act 1988—
This section has effect as respects claims for group relief for accounting periods ending after the day appointed for the purposes of section 10 of the Taxes Act 1988 (pay and file).
The Capital Allowances Act 1990 shall be amended as follows.
The following section shall be inserted after section 145—
The Schedule set out in Schedule 16 to this Act shall be inserted before Schedule 1.
This section has effect as respects claims for allowances falling to be made for accounting periods ending after the day appointed for the purposes of section 10 of the Taxes Act 1988 (pay and file).
Schedule 17 to this Act (which amends the Capital Allowances Act 1990 for the purpose of assimilating claims by companies to claims by individuals) shall have effect.
This section has effect as respects allowances and charges falling to be made for chargeable periods ending after the day appointed for the purposes of section 10 of the Taxes Act 1988 (pay and file).
In section 1 of the Taxes Management Act 1970 (appointment of inspectors etc.) the following subsections shall be inserted after subsection (2)—
In section 55 of that Act (recovery of tax not postponed)—
in subsection (7) for the words “the inspector” there shall be substituted the words “ an inspector ”;
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The amendment made by subsection (1) above shall be deemed always to have had effect.
The amendments made by subsection (2) above shall apply where notice of appeal is given on or after the day on which this Act is passed.
In section 30 of the Taxes Management Act 1970 (recovery of excessive repayments of tax) the following subsection shall be inserted after subsection (1)—
This section applies in relation to amounts of tax repaid on or after the day on which this Act is passed.
In section 10 of the Taxes Act 1988 (time for payment of tax) the following subsection shall be substituted for subsection (2)—
Stamp duty shall not be chargeable under Schedule 15 to the Finance Act 1999 (bearer instruments).
Subsection (1) above applies in relation to the charge under paragraph 1 of that Schedule (charge on issue) where the instrument is issued on or after the abolition day.
Subsection (1) above applies in relation to the charge under paragraph 2 of that Schedule (charge on transfer of stock) where the stock constituted by or transferable by means of the instrument is transferred on or after the abolition day.
In subsection (2) above the reference to section 60(1) of the Finance Act 1963 includes a reference to section 9(1)(a) of the Finance Act (Northern Ireland) 1963 and in subsection (3) above the reference to section 60(2) of the former Act includes a reference to section 9(1)(b) of the latter.
Stamp duty shall not be chargeable under Schedule 13 to the Finance Act 1999 (transfer of securities) or section 67(3) or 70(3) of the Finance Act 1986 (stamp duty on certain transfers to depositary receipt systems and clearance systems).
In this section “defined securities” means—
stocks, shares or loan capital,
interests in, or in dividends or other rights arising out of, stocks, shares or loan capital,
rights to allotments of or to subscribe for, or options to acquire or to dispose of, stocks, shares or loan capital, and
units under a unit trust scheme.
In this section “loan capital” means—
any debenture stock, corporation stock or funded debt, by whatever name known, issued by a government or a body corporate or other body of persons (which here includes a local authority and any body whether formed or established in the United Kingdom or elsewhere);
any capital raised by a government, or by such a body as is mentioned in paragraph (a) above, if the capital is borrowed or has the character of borrowed money, and whether it is in the form of stock or any other form;
stock or marketable securities issued by a government.
In this section “unit” and “unit trust scheme” have the same meanings as they had in Part VII of the Finance Act 1946 immediately before the abolition day.
In this section references to a government include references to a government department, including a Northern Ireland department.
In this section “government” means the government of the United Kingdom or of Northern Ireland or of any country or territory outside the United Kingdom.
Subject to subsection (8) below, this section applies if the instrument is executed in pursuance of a contract made on or after the abolition day.
In the case of an instrument— this section applies if the instrument is executed on or after the abolition day.
which falls within section 67(1) or (9) of the Finance Act 1986 (depositary receipts) or section 70(1) or (9) of that Act (clearance services), or
which does not fall within section 67(1) or (9) or section 70(1) or (9) of that Act and is not executed in pursuance of a contract,
Section 83 of the Stamp Act 1891 (fine for certain acts relating to securities) shall not apply where an instrument of assignment or transfer is executed, or a transfer or negotiation of the stock constituted by or transferable by means of a bearer instrument takes place, on or after the abolition day.
The following provisions (which relate to the cancellation of certain instruments) shall not apply where the stock certificate or other instrument is entered on or after the abolition day—
section 109(1) of the Stamp Act 1891,
section 5(2) of the Finance Act 1899,
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Section 67 of the Finance Act 1963 (prohibition of circulation of blank transfers) shall not apply where the sale is made on or after the abolition day; and section 16 of the Finance Act (Northern Ireland) 1963 (equivalent provision for Northern Ireland) shall not apply where the sale is made on or after the abolition day.
No person shall be required to notify the Commissioners under section 68(1) or (2) or 71(1) or (2) of the Finance Act 1986 (depositary receipts and clearance services) if he first issues the receipts, provides the services or holds the securities as there mentioned on or after the abolition day.
No company shall be required to notify the Commissioners under section 68(3) or 71(3) of that Act if it first becomes aware as there mentioned on or after the abolition day.
The following provisions shall cease to have effect—
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section 33 of the Finance Act 1970 (composition by financial institutions in respect of stamp duty),
section 127(7) of the Finance Act 1976 (extension of composition provisions to Northern Ireland), and
section 85 of the Finance Act 1986 (provisions about stock, marketable securities, etc.).
The provisions mentioned in subsection (6) above shall cease to have effect as provided by the Treasury by order.
An order under subsection (7) above—
shall be made by statutory instrument;
may make different provision for different provisions or different purposes;
may include such supplementary, incidental, consequential or transitional provisions as appear to the Treasury to be necessary or expedient.
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Stamp duty reserve tax shall cease to be chargeable.
In relation to the charge to tax under section 87 of the Finance Act 1986 subsection (1) above applies where—
the agreement to transfer is conditional and the condition is satisfied on or after the abolition day, or
the agreement is not conditional and is made on or after the abolition day.
In relation to the charge to tax under section 93(1) of that Act subsection (1) above applies where securities are transferred, issued or appropriated on or after the abolition day (whenever the arrangement was made).
In relation to the charge to tax under section 96(1) of that Act subsection (1) above applies where securities are transferred or issued on or after the abolition day (whenever the arrangement was made).
In relation to the charge to tax under section 93(10) of that Act subsection (1) above applies where securities are issued or transferred on sale, under terms there mentioned, on or after the abolition day.
In relation to the charge to tax under section 96(8) of that Act subsection (1) above applies where securities are issued or transferred on sale, under terms there mentioned, on or after the abolition day.
Where before the abolition day securities are issued or transferred on sale under terms mentioned in section 93(10) of that Act, in construing section 93(10) the effect of subsections (1) and (3) above shall be ignored.
Where before the abolition day securities are issued or transferred on sale under terms mentioned in section 96(8) of that Act, in construing section 96(8) the effect of subsections (1) and (4) above shall be ignored.
In sections 107 to 110 above “the abolition day” means such day as may be appointed by the Treasury by order made by statutory instrument.
Sections 107 to 109 above shall be construed as one with the Stamp Act 1891.
In section 143 of the Finance Act 1988 (paired shares) in subsection (1)(b) for the words “an equal number of” there shall be substituted the word “ other ”.
Subsection (1) above applies where—
the offers referred to in section 143(1) are made, or are to be made, on or after the day on which this Act is passed, and
before the offers are made, or are to be made, units comprising shares in the two companies concerned were offered (whether before or on or after the day on which this Act is passed) in circumstances where section 143 applied without the amendment made by subsection (1) above.
Section 99 of the Finance Act 1986 (stamp duty reserve tax: interpretation) shall be amended as follows.
In subsection (6A) (paired shares) in paragraph (b) for the words “an equal number of” there shall be substituted the word “ other ”.
The following subsection shall be inserted after subsection (6A)—
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Subsection (2) above applies where—
the offers referred to in section 99(6A) are made on or after the day on which this Act is passed, and
before the offers are made, units comprising shares in the two companies concerned were offered (whether before or on or after the day on which this Act is passed) in circumstances where section 99(6A) applied without the amendment made by subsection (2) above.
Subsections (3) and (4) above apply where—
the shares referred to in section 99(6B) are issued on or after the day on which this Act is passed, and
before they are issued, units comprising shares in the two companies concerned were offered (whether before or on or after the day on which this Act is passed) in circumstances where section 99(6A) applied without the amendment made by subsection (2) above.
In section 126 of the Finance Act 1984 (tax exemptions in relation to designated international organisations) in subsection (3) the following paragraph shall be inserted after paragraph (c)—
Where an organisation or body is designated under section 126(1) or (4) before the day on which this Act is passed, subsection (1) above applies in relation to the issue of securities by the organisation or body on or after that day.
Where an organisation or body is designated under section 126(1) or (4) on or after the day on which this Act is passed, subsection (1) above applies in relation to the issue of securities by the organisation or body after the designation.
A levy shall be chargeable on the disposal of securities of a company which is, or has control of, a successor company to a relevant port authority if the disposal is made by—
the relevant port authority,
a company under the control of the relevant port authority, or
a person constituted under a private Act, the Bill for which was promoted by the relevant port authority.
For the purposes of this section and sections 116 to 120 below— and in sections 116 to 120 below “levy” means levy under subsection (1) above.
“securities”, in relation to a company, includes shares, debentures, bonds and other securities of the company, whether or not constituting a charge on the assets of the company;
“control” shall be construed in accordance with section 416 of the Taxes Act 1988;
a company is a successor company to a relevant port authority if the whole or any part of the authority’s undertaking is transferred to it in accordance with the provisions of a private Act, the Bill for which was promoted by the authority;
a relevant port authority is an authority which is a harbour authority within the meaning of the Harbours Act 1964 or the Harbours Act (Northern Ireland) 1970 but not a company having a share capital or a local authority (within the meaning of section 842A of the Taxes Act 1988); and
“shares” include stock;
Subject to subsection (2) below, levy shall be charged at the rate of 50 per cent. on the consideration given for the securities disposed of.
Where no consideration is given for the securities disposed of, or their market value at the time of the disposal is greater than the consideration given, levy shall be charged at the rate of 50 per cent. on that market value.
There shall be allowed as a deduction from the amount on which levy would otherwise be chargeable any expenditure wholly and exclusively incurred for the purposes of the disposal by the person making the disposal, being—
fees, commissions or remuneration paid for professional services,
costs of transfer,
costs of advertising, or
expenses reasonably incurred in ascertaining the market value of the securities disposed of.
Where— the amount on which levy would be chargeable apart from this subsection shall be increased by such amount as appears to the Secretary of State to be appropriate.
a scheme has been effected or arrangements have been made (whether before or after a disposal) whereby the value of securities disposed of has been materially reduced, and
the aim or one of the aims of the scheme or arrangements is decreasing liability to levy,
The market value of securities shall be determined for the purposes of this section as it would fall to be determined in accordance with sections 150(1) to (3) and 152 of the Capital Gains Tax Act 1979 for the purposes of tax on chargeable gains (but subject to section 117 below).
The Treasury may substitute for the percentage for the time being specified in subsections (1) and (2) above such other percentage as they may prescribe by order made by statutory instrument.
An order under subsection (6) above shall not be made unless a draft of the order has been laid before and approved by a resolution of the House of Commons.
This section applies where securities of a company are disposed of for no consideration, or for a consideration less than their market value, to—
directors or employees of the company or of another company which is a wholly-owned subsidiary of the company,
the trustees of a share option scheme or profit sharing scheme approved under Schedule 9 to the Taxes Act 1988, or
the trustees of trusts to which section 86 of the Inheritance Tax Act 1984 applies and which do not permit any of the settled property to be applied otherwise than for the benefit of— and in this subsection “wholly-owned subsidiary” shall be construed in accordance with section 736 of the Companies Act 1985.
persons of a class defined by reference to employment by, or the holding of office with, the company or another company which is a wholly-owned subsidiary of the company, or
persons of a class defined by reference to marriage or relationship to, or dependence on, persons of that class;
Where this section applies, the market value of the securities shall for the purposes of section 116 above be taken to be reduced— or as nearly to nil, or that amount, as is permitted under subsection (3) below.
if no consideration is given for the securities, to nil, or
otherwise, to the amount of the consideration given for the securities,
A reduction under subsection (2) above shall not exceed the difference between—
three per cent. of the aggregate of the amounts on which levy is chargeable (ignoring any reduction under subsection (2) above) in the case of the disposal in question and any other disposals of securities of the company made on or before the day of that disposal, and
the amount of any reductions under subsection (2) above in the case of the other disposals.
Levy chargeable on a disposal shall be paid to the Secretary of State by the person by whom the disposal was made.
The amount of the levy shall be assessed by the Secretary of State who shall serve a notice of assessment on the person by whom the disposal was made stating the date of issue of the notice of assessment and the effect of subsection (3) below.
The amount assessed shall be payable within the period of three months beginning with the day on which the disposal was made or within the period of 30 days beginning with the date of the issue of the notice of assessment, if that period ends later.
Where any levy payable by the person by whom the disposal was made is not paid within the period of six months beginning with the first day after the period within which it is payable, the Secretary of State may, within the period of three years beginning with that day, serve on the company whose securities were disposed of a notice stating—
particulars of the levy assessed and the amount remaining unpaid,
the date of issue of the notice, and
the effect of subsection (5) below.
The amount unpaid shall be payable to the Secretary of State by the company within the period of 30 days beginning with the date of issue of the notice under subsection (4) above.
Any amount paid in accordance with subsection (5) above shall cease to be payable to the Secretary of State by the person who made the disposal but the company may recover it from that person.
A person who is liable to make a payment of levy but does not make payment of the amount due during the period within which it is payable shall also pay to the Secretary of State interest on the unpaid levy at the rate applicable under section 178 of the Finance Act 1989 from the first day after the end of that period until payment of the levy is made; and the interest shall be paid without deduction of tax.
In subsection (2) of that section, after paragraph (m) there shall be inserted and
A person who makes a disposal of securities on which levy is chargeable shall give to the Secretary of State, not later than 30 days after the day on which the disposal is made, written notification that he has made the disposal.
The Secretary of State may by notice in writing require— to deliver to him documents, or to furnish to him particulars, to which subsection (3) below applies within such time, not less than 30 days after the date of the notice, as may be specified in the notice.
a person who is or may be liable to levy,
a person to whom there has been made a disposal of securities on which levy is chargeable, or
a company whose securities have been the subject of such a disposal,
This subsection applies to—
documents specified or described in the notice under subsection (2) above which are in the possession or power of the person to whom the notice is given and which (in the opinion of the Secretary of State) contain, or may contain, information relevant to a liability to levy or to the amount of such a liability, and
particulars specified or described in the notice which the Secretary of State may reasonably require as being relevant to, or to the amount of, such a liability.
Where any person fails to give notification in accordance with subsection (1) above or to comply with a notice under subsection (2) above, he shall be liable—
to a penalty not exceeding £300, and
if the failure continues after a penalty is imposed under paragraph (a) above, to a further penalty or penalties not exceeding £60 for each day on which the failure continues after the day on which the penalty under paragraph (a) above was imposed (but excluding any day for which a penalty under this paragraph has already been imposed).
Where a person fraudulently or negligently furnishes any incorrect particulars in response to a notice under subsection (2) above he shall be liable to a penalty not exceeding £3,000.
Proceedings for a penalty under this section shall be instituted by the Secretary of State before the High Court or, in Scotland, before the Court of Session, the Court of Exchequer in Scotland, and any penalty imposed by the court shall be paid to the Secretary of State.
Proceedings within subsection (6) above may not be instituted later than six years after the date on which the penalty was incurred or began to be incurred.
Any proceedings within subsection (6) above instituted in England and Wales shall be deemed to be civil proceedings by the Crown within the meaning of Part II of the Crown Proceedings Act 1947 and any such proceedings instituted in Northern Ireland shall be deemed to be civil proceedings within the meaning of that Part of that Act as for the time being in force in Northern Ireland.
The time when a disposal of securities is made shall be determined for the purposes of sections 115 to 119 above as it would fall to be determined in accordance with section 27 of the Capital Gains Tax Act 1979 for the purposes of tax on chargeable gains.
A payment of levy by the person by whom a disposal is made shall be allowable as a deduction from the consideration in the computation under that Act of the gain accruing to the person on the disposal; but, subject to that, no payment of levy, interest on unpaid levy or penalty under section 119 above shall be allowed as a deduction in computing any income, profits or losses for any tax purposes.
There shall be paid into the Consolidated Fund—
all payments of levy received by the Secretary of State,
all interest paid to the Secretary of State on unpaid levy, and
all penalties paid to the Secretary of State under section 119 above.
Any expenses of the Secretary of State incurred in consequence of any of sections 115 to 119 above or of this section shall be defrayed out of money provided by Parliament.
Schedule 2 to the Oil Taxation Act 1975 (management and collection of PRT) shall be amended as follows.
At the beginning of paragraph 16 (interest on repayments) there shall be inserted the words “ Subject to paragraph 17 below ”.
After that paragraph there shall be inserted the following paragraph—
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In the Oil Taxation Act 1975, in Schedule 5 (allowance of certain expenditure on a claim by the responsible person) paragraph 9 (variation of decision on a claim where the amount of expenditure allowed etc. was incorrectly stated in the notice of the decision) shall be amended in accordance with subsections (2) to (4) below.
In any case falling within sub-paragraph (1B) below, sub-paragraph (1) above shall have effect— The cases referred to in sub-paragraph (1A) above are those where— The conditions referred to in sub-paragraph (1B)(c) above are—
In any case where— that question shall be determined by comparing the total amount which, in accordance with the notice of decision containing the incorrect statement, was brought into account under section 2(9)(b)(ii) of this Act with the total amount which would have been so brought into account if the paragraph (c) amounts stated in that notice had been correct
In a case falling within sub-paragraph (1B) above, this paragraph has effect in relation to notices of decisions of the Board under paragraph 3 above whenever given; and, in any other case, this paragraph has effect in relation to such notices given after 15th March 1983.
Omit sub-paragraph (1C)(c).
In the Table set out in paragraph 1(3) of Schedule 7 to the Oil Taxation Act 1975 (which modifies Schedule 5 in its application to Schedules 7 and 8), in the entry in the second column relating to paragraph 9 of Schedule 5,—
at the beginning insert “In sub-paragraph (1C) omit paragraph (c)”; and
after “(b) and (c)” insert “omit sub-paragraph (2A)”.
Gas levy shall not be payable by any person in respect of any gas unless—
the gas is purchased by that person under a tax-exempt contract or under terms comprised in an excluded oil document; or
the gas is won by that person, and not sold by him under such a contract or under terms so comprised, and is gas to which subsection (2) below applies.
This subsection applies to gas which the British Gas Corporation was on 23rd August 1986 obliged or entitled to purchase (whether immediately or at some future date) under a tax-exempt contract or under terms comprised in an excluded oil document.
In determining whether any gas which is won at any time is gas to which subsection (2) above applies, no account shall be taken of—
any future variation of rights and liabilities under a tax-exempt contract, or under terms comprised in an excluded oil document, other than one effected by the exercise of an existing option; or
any future termination of such rights and liabilities other than one occurring before 5th March 1990.
In this section—
“excluded oil document” means a document which on 1st April 1980 was treated for the purposes of paragraph (a) of subsection (1) of section 10 of the Oil Taxation Act 1975 as containing the whole or part of a contract for the sale of excluded oil as defined in that subsection;
“existing option” means an option granted before the commencement of this section;
“termination” means any termination, whether occurring by effluxion of time, by the exercise of an existing option or otherwise.
This section shall be deemed to have come into force on 24th August 1986.
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In section 219 of the Inheritance Tax Act 1984 (power to require information), after subsection (1) there shall be inserted—
This section shall apply with respect to notices given on or after the day on which this Act is passed.
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the reference in section 20(7A) to any provision of the Taxes Acts were a reference to any provision of the law of the member State in accordance with which the tax in question is charged,
the references in subsection (2) of section 20B to an appeal relating to tax were references to an appeal, review or similar proceedings under the law of the member State relating to the tax in question, and
the reference in subsection (6) of that section to believing that tax has or may have been lost to the Crown were a reference to believing that the tax in question has or may have been lost to the member State.
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which is of a character similar to that of inheritance tax or is chargeable on or by reference to death or gifts inter vivos, and
in relation to which the Directive mentioned in subsection (1) above has effect by virtue of any other Directive of the Council (whether adopted before or after the passing of this Act) extending that Directive.
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This section applies to any payment (including a payment made before the passing of this Act) which, in consequence of the reduction in pool betting duty effected by section 4 above, is made by a person liable to pay that duty in order to meet, directly or indirectly, capital expenditure incurred (whether by the person to whom it is made or any other person) in improving the safety or comfort of spectators at a ground to be used for the playing of association football.
Where a person carrying on a trade makes a payment to which this section applies, the payment may be deducted in computing for tax purposes the profits or gains of the trade.
A payment to which this section applies shall not be regarded as an annual payment.
Section 153 of the Capital Allowances Act 1990 shall not apply to expenditure of the kind mentioned in subsection (1) above in so far as it has been or is to be met, directly or indirectly, out of a payment to which this section applies.
Where a payment to which this section applies is made to trustees, the sum received by them and any assets representing it (but not any income or gains arising from them) shall not be relevant property for the purposes of Chapter III of Part III of the Inheritance Tax Act 1984.
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Schedule 18 to this Act (consequential amendments) shall have effect.
This section shall be deemed to have come into force on 1st April 1990.
This section applies where at the beginning of the day on which this Act is passed—
an enactment confers power to make provision for payment of a fee or charge (however described), and
sums paid in pursuance of provision made in exercise of the power are payable into the Consolidated Fund.
Subject to subsection (3) below, the enactment shall be treated as also conferring power to make provision about repayment of sums paid, or purported to be paid, in pursuance of provision made in exercise of the power.
Subsection (2) above shall not apply if the fee or charge is one—
repayment of which is prohibited or regulated by an enactment, or
power to make provision about repayment of which is expressly conferred, or expressly negatived, to any extent.
Without prejudice to the generality of the power conferred by virtue of subsection (2) above, the provision which may be made by virtue of that subsection includes provision—
that repayment shall be made only if a specified person is satisfied that specified conditions are met or in other specified circumstances;
that repayment shall be made in part only;
that, in the case of partial repayment, the amount repaid shall be a specified sum or determined in a specified manner; and
for repayment of different amounts in different circumstances.
In subsection (4) above “specified” means specified in the instrument exercising the power.
In determining for the purposes of this section whether sums are payable into the Consolidated Fund, section 3 of the Government Trading Funds Act 1973 (payments into a trading fund) shall be disregarded.
In this section “enactment” includes Northern Ireland legislation as defined in section 24(5) of the Interpretation Act 1978.
An Order in Council under paragraph 1(1)(b) of Schedule 1 to the Northern Ireland Act 1974 (legislation for Northern Ireland in the interim period) which states that it is made only for purposes corresponding to those of this section—
shall not be subject to sub-paragraphs (4) and (5) of paragraph 1 of that Schedule (affirmative resolution of both Houses of Parliament); but
shall be subject to annulment in pursuance of a resolution of either House.
In section 5 of the National Debt Act 1972 (settlement by Chief Registrar of friendly societies of disputes as to holdings on National Savings Stock Register)—
in subsection (1), after the words “Chief Registrar of friendly societies” there shall be inserted the words “ or a deputy appointed by him ”,
in subsection (2), after the words “Chief Registrar” there shall be inserted the words “ or deputy ”,
in subsection (3)(a), after the words “Chief Registrar of friendly societies” there shall be inserted the words “ or a deputy appointed by him ”, and
subsection (3)(b) shall cease to have effect.
In section 4(1) of the National Loans Act 1968 (which provides that the aggregate of any commitments of the Public Works Loan Commissioners in respect of undertakings to grant local loans and any amount outstanding in respect of the principal of such loans shall not exceed £42,000 million or such other sum not exceeding £50,000 million as the Treasury may specify by order) for the words “£42,000 million” and “£50,000 million” there shall be substituted respectively “ £55,000 million ” and “ £70,000 million ”.
In this Act “the Taxes Act 1970” means the Income and Corporation Taxes Act 1970 and “the Taxes Act 1988” means the Income and Corporation Taxes Act 1988.
Chapter II of Part I of this Act shall be construed as one with the Value Added Tax Act 1983.
Part II of this Act, so far as it relates to capital gains tax, shall be construed as one with the Capital Gains Tax Act 1979.
The enactments specified in Schedule 19 to this Act (which include spent or unnecessary enactments) are hereby repealed to the extent specified in the third column of that Schedule, but subject to any provision at the end of any Part of that Schedule.
This Act may be cited as the Finance Act 1990.
Section 1. Description of wine or made-wine Rates of duty per hectolitre £ Wine or made-wine of a strength not exceeding 2 per cent. 11.03 Wine or made-wine of a strength exceeding 2 per cent. but not exceeding 3 per cent. 18.38 Wine or made-wine of a strength exceeding 3 per cent. but not exceeding 4 per cent. 25.73 Wine or made-wine of a strength exceeding 4 per cent. but not exceeding 5 per cent. 33.09 Wine or made-wine of a strength exceeding 5 per cent. but not exceeding 5.5 per cent. 40.44 Wine or made-wine of a strength exceeding 5.5 per cent. but not exceeding 15 per cent. and not being sparkling 110.28 Sparkling wine or sparkling made-wine of a strength exceeding 5.5 per cent. but not exceeding 15 per cent. 182.10 Wine or made-wine of a strength exceeding 15 per cent. but not exceeding 18 per cent. 190.20 Wine or made-wine of a strength exceeding 18 per cent. but not exceeding 22 per cent. 219.40 Wine or made-wine of a strength exceeding 22 per cent. 219.40 plus £17.35 for every 1 per cent. or part of 1 per cent. in excess of 22 per cent.
Section 5.
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in sub-paragraph (1) for the words “12 tonnes” there shall be substituted the words “12,000 kilograms”; and
in sub-paragraph (2)(a) for the words “4 tonnes” there shall be substituted the words “4,000 kilograms”.
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for the words “plated gross weight”, in each place where they occur, there shall be substituted the words “relevant maximum weight”; and
for the words “plated train weight”, in each place where they occur, there shall be substituted the words “relevant maximum train weight”.
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Section 7.
The Customs and Excise Management Act 1979 shall be amended as follows.
Section 37A (initial and supplementary entries) shall be amended as follows. In subsection (1)(b), the word “may” shall be omitted. The following subsection shall be inserted after subsection (1)— In subsection (2), for the words from the beginning to “unpaid duty,” there shall be substituted the words—. In subsection (3) after the words “initial entry” there shall be inserted the words “ under subsection (1) above ”. The following subsection shall be inserted after subsection (3)—
Section 37B (postponed entry) shall be amended as follows. The following subsection shall be inserted after subsection (1)— The following subsections shall be inserted after subsection (3)— In subsection (4), after “(3)(a)” there shall be inserted “ or (3B)(a) ”. In subsection (5), for the words “this section” there shall be substituted the words “ subsection (1) or (2) above ”. The following subsection shall be inserted after subsection (5)— In subsection (6), for the words “this section” there shall be substituted the words “ subsection (1) or (2) above ”. The following subsection shall be inserted after subsection (6)— In subsection (7)—
Section 37C (provisions supplementary to sections 37A and 37B) shall be amended as follows. In subsection (1)(a)— In subsection (1)(b), for the word “importer” there shall be substituted the word “ person ”. In subsection (2)(a), for the word “importer” there shall be substituted the word “ person ”.
Section 30.
The Taxes Act 1988 shall be amended as mentioned in paragraphs 2 to 14 below.
Section 476 (building societies: regulations for payment of tax) shall cease to have effect. This paragraph shall apply as regards the year 1991-92 and subsequent years of assessment.
Section 477 (investments becoming or ceasing to be relevant building society investments) shall cease to have effect. This paragraph shall apply as regards any time falling on or after 6th April 1991.
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Section 479 (interest paid on deposits with banks etc.) shall cease to have effect. This paragraph shall apply as regards interest paid or credited on or after 6th April 1991.
Section 480 (deposits becoming or ceasing to be composite rate deposits) shall cease to have effect. This paragraph shall apply as regards any time falling on or after 6th April 1991.
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In section 483 (determination of reduced rate for building societies and composite rate for banks etc.) subsections (1) to (3) and (5) shall cease to have effect. This paragraph shall apply where the first year of assessment mentioned in section 483(1) is 1990-91 or a subsequent year of assessment.
In section 686 (liability to additional rate tax of certain income of discretionary trusts) subsection (5) shall cease to have effect. This paragraph shall apply as regards a sum paid or credited on or after 6th April 1991.
In section 687 (payments under discretionary trusts) in subsection (3) the words following paragraph (i) shall cease to have effect. This paragraph shall apply as regards an amount paid or credited on or after 6th April 1991.
In the Table in section 98 of the Taxes Management Act 1970 (penalties for failure to comply with notices etc.) there shall be inserted in the first and second columns, after the entry relating to regulations under section 476(1) of the Taxes Act 1988— “ regulations under section 477A(1); ”.
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Section 41.
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for the words “industrial life assurance” there shall be substituted the words “industrial assurance”; and
after the words “section 76” there shall be inserted the words “and where appropriate the provisions of this Chapter”.
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... Subject to sub-paragraph (1) above, this Schedule shall be deemed to have come into force on 1st January 1990. The preceding provisions of this paragraph shall have effect subject to paragraph 12 below.
Where at the end of 1989 the assets of an insurance company include securities of a class some of which are regarded as a single 1982 holding, and the rest of which are regarded as a single new holding, for the purposes of corporation tax on chargeable gains— For the period beginning with 1st January 1990 and ending with 19th March 1990, section 440(4) of the Taxes Act 1988 (as substituted by paragraph 8 of this Schedule) and section 440A(2) of that Act shall have effect with the omission of paragraph (d) (so that all assets not within paragraphs (a) to (c) fall within paragraph (e)). Sub-paragraph (4) below applies where— and for the purposes of this sub-paragraph a holding is a “relevant” holding if it is not linked to pension business or basic life assurance business and is not an asset of the overseas life assurance fund. Where this sub-paragraph applies— Except for the purposes of determining the assets of a company which are linked solely to basic life assurance business, the amendments made by this Schedule shall have effect in relation to a company with the omission of references to overseas life assurance business as respects any time before the provisions of Schedule 7 to this Act have effect in relation to the company. Sub-paragraph (7) below applies where— and for the purposes of this sub-paragraph a holding is a “relevant” holding if it is not linked to pension business or basic life assurance business. Where this sub-paragraph applies— No disposal or re-acquisition shall be deemed to occur by virtue of section 440 of the Taxes Act 1988 (as substituted by paragraph 8 of this Schedule) by reason only of the coming into force (in accordance with the provisions of paragraph 11 of this Schedule and this paragraph) of any provision of section 440A of that Act. The substitution made by paragraph 8 of this Schedule shall not affect— In this paragraph—
Section 42.
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in subsection (3), for the words after “insurance company” there shall be substituted the words “to the extent that the securities transferred are immediately before the transfer referable to a business the profits of which are computed in accordance with section 436 or 441.”, and
in subsection (4), for the words after “apply”, in the first place where it occurs, there shall be substituted the words “if the transferee is an insurance company to the extent that the securities transferred are immediately after the transfer referable to a business the profits of which are computed in accordance with section 436 or 441.”
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in subsection (1), after the words “subsection (2)” there shall be inserted the words “or (2A)”,
in subsection (2), the words “Subject to subsection (2A) below,” shall be inserted at the beginning,
after subsection (2) there shall be inserted—, and
in subsection (5), after the words “subsection (2)” there shall be inserted the words “or (2A)”.
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“section 46 assets” means rights under authorised unit trusts and relevant interests in offshore funds which are assets of a company’s long term business fund;
“linked section 46 assets” means section 46 assets which are linked assets;
“relevant linked liabilities”, in relation to a company, means such of the liabilities of its basic life assurance business as are liabilities in respect of benefits under pre-commencement policies, being benefits to be determined by reference to the value of linked assets;
“pre-commencement policies” means policies issued in respect of insurances made before 1st April 1990, but excluding policies varied on or after that date so as to increase the benefits secured or to extend the term of the insurance (any exercise of rights conferred by a policy being regarded for this purpose as a variation).
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Section 48.
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For the purposes of this Schedule a qualifying provision for redemption, in relation to a security, is a provision which—
provides for redemption before maturity only at the option of the person holding the security for the time being,
provides for such redemption on one occasion only,
provides for such redemption to occur on the last day of an income period, and
is such that the amount payable on redemption on exercise of the option is fixed (as opposed to variable), is determined at the time the security becomes subject to the provision, and constitutes a deep gain.
For the purposes of this Schedule a security is a qualifying convertible security at the time of its issue if— The first condition is that the security was issued by a company on or after 9th June 1989. The second condition is that the security— The third condition is that at the time the security was issued it was quoted in the official list of a recognised stock exchange. The fourth condition is that under the terms of issue— The fifth condition is that at the time of issue of the security it is subject to one (and one only) qualifying provision for redemption. The sixth condition is that the yield to redemption for the relevant redemption period represents no more than a reasonable commercial return; and the relevant redemption period is the redemption period which ends with the day on which the occasion for redemption under the qualifying provision for redemption falls. The seventh condition is that the security— and paragraph 21 of Schedule 4 to the Taxes Act 1988, and paragraph 22B(1) of Schedule 11 to the Finance Act 1989, shall be ignored in construing paragraphs (a) and (b) above. The eighth condition is that the obtaining of a tax advantage by any person was not the main benefit, or one of the main benefits, that might be expected to accrue from issuing the security. The ninth condition applies where the security carries a right to interest, and is that— The tenth condition applies where there is more than one interest payment day, and is that— If a security is quoted in the official list of a recognised stock exchange at a time after it was issued but before the end of the qualifying period, for the purposes of sub-paragraph (4) above it shall be deemed to have been quoted in that list at the time it was issued; and the qualifying period is the period of one month beginning with the day on which the security was issued.
A security which was a qualifying convertible security at the time of its issue shall continue to be a qualifying convertible security for the purposes of this Schedule. But sub-paragraph (1) above shall have effect subject to paragraphs 4(2) and 5(2) below.
This paragraph applies where— If the relevant requirement is not satisfied, the security shall cease to be a qualifying convertible security for the purposes of this Schedule at the time in question. For the purposes of this paragraph the relevant requirement is satisfied if— For the purposes of this paragraph the relevant day is the day falling 30 days before the day on which the occasion for redemption under the old provision falls. For the purposes of this paragraph the old provision is— For the purposes of this paragraph the relevant redemption period is the redemption period which ends with the day on which the occasion for redemption under the new provision falls.
This paragraph applies where— The security shall cease to be a qualifying convertible security for the purposes of this Schedule at the time in question. For the purposes of this paragraph, a prohibited event occurs in relation to a security if— For the purposes of sub-paragraph (3)(f) above the relevant prospectus is the prospectus under which the security concerned was issued. For the purposes of sub-paragraph (3)(f) above, the question whether companies are linked companies at a particular time shall be determined in accordance with paragraph 4 of Schedule 11 to the Finance Act 1988.
For the purposes of this Schedule the amount payable on redemption, on exercise of the option under a provision for redemption (the provision concerned), constitutes a deep gain if it constitutes such a gain by virtue of sub-paragraph (2) or (4) below (or both). The amount payable on redemption (on exercise of the option under the provision concerned) constitutes a deep gain if the issue price of the security is less than the amount so payable, and the amount by which it is less represents more than— Sub-paragraph (4) below applies where the security became subject to— before it became subject to the provision concerned. The amount payable on redemption (on exercise of the option under the provision concerned) constitutes a deep gain if the base amount is less than the amount so payable, and the amount by which it is less represents more than— For the purposes of sub-paragraph (4) above— For the purposes of sub-paragraph (5) above the last of the prior provisions is the one to which the security last became subject.
This paragraph applies for the purposes of this Schedule. In relation to a security which carries a right to interest each of the following is an income period— In relation to a security which does not carry a right to interest each of the following is an income period— For the purposes of sub-paragraph (3) above each day on which an anniversary of the day of issue falls is a relevant day.
For the purposes of this Schedule each of the following is a redemption period in relation to a security— For the purposes of sub-paragraph (1) above a relevant redemption occasion is an occasion for redemption under a qualifying provision for redemption.
For the purposes of this Schedule the yield to redemption for a redemption period is a rate (expressed as a percentage) such that if a sum equal to the relevant amount were to be invested at that rate on the assumption that— the value of that sum on the relevant redemption day would be equal to the amount payable on redemption of the security on that day under the relevant redemption provision. For the purposes of this paragraph the relevant amount is the issue price, in a case where the redemption period concerned is the period falling within paragraph 8(1)(a) above. For the purposes of this paragraph the relevant amount is the amount payable on redemption on the last relevant occasion, in a case where the redemption period concerned is one falling within paragraph 8(1)(b) above; and the last relevant occasion is the occasion for redemption, under a qualifying provision for redemption, last occurring before the redemption period begins. For the purposes of this paragraph—
This paragraph applies for the purposes of this Schedule. “Transfer”, in relation to a security, means transfer by way of sale, exchange, gift or otherwise. But (notwithstanding sub-paragraph (2) above) “transfer” does not include a transfer made on a conversion of a security into ordinary share capital in a company. Where an agreement for the transfer of a security is made, it is transferred, and the person to whom it is agreed to be transferred becomes entitled to it, when the agreement is made and not on a later transfer made pursuant to the agreement; and “entitled”, “transfer” and cognate expressions shall be construed accordingly. A person holds a security at a particular time if he is entitled to it at the time. A person acquires a security when he becomes entitled to it. If an agreement is conditional (whether on the exercise of an option or otherwise) for the purposes of sub-paragraph (4) above it is made when the condition is satisfied.
This paragraph applies for the purposes of this Schedule. In relation to a security— A deep discount security is a security which is a deep discount security for the purposes of Schedule 4 to the Taxes Act 1988. A deep gain security is a security which is a deep gain security for the purposes of Schedule 11 to the Finance Act 1989. Ordinary share capital, in relation to a company, means any share capital (by whatever name called) of the company, other than capital the holders of which have a right to a dividend at a fixed rate but have no other right to share in the profits of the company. “Tax advantage” has the meaning given by section 709(1) of the Taxes Act 1988.
For the purposes of this Part of this Schedule a chargeable event occurs if, on or after 9th June 1989, there is a transfer of a security and at the time of the transfer the security— For the purposes of this Part of this Schedule a chargeable event also occurs if— For the purposes of this Part of this Schedule the chargeable person is the person making the transfer or exercising the option (as the case may be). Where a chargeable event occurs—
For the purposes of paragraph 12 above the chargeable amount is— For the purposes of this paragraph the amount obtained on transfer or redemption is the amount obtained, in respect of the transfer or redemption, by the person making the transfer or (as the case may be) the person who was entitled to the security immediately before redemption. For the purposes of sub-paragraph (2) above the person concerned shall be treated as obtaining in respect of the transfer or redemption— Sub-paragraph (3) above shall not apply where paragraph 16, 17 or 18(2) below applies.
The total income element for the purposes of paragraph 13 above shall be determined by— The aggregate of the income elements and the partial income elements so found is the total income element. The ownership period is the period which—
This paragraph has effect for the purposes of paragraph 14 above. The income element for an income period shall be determined in accordance with the formula— For the purposes of sub-paragraph (2) above— The partial income element for an income period a part of which consists of or falls within the ownership period shall be determined in accordance with the formula— For the purposes of sub-paragraph (4) above— The adjusted issue price of a security, in relation to a particular income period, is the aggregate of the issue price of the security and the income elements for all previous income periods of the security (determined in accordance with the formula mentioned in sub-paragraph (2) above).
Where an individual who is entitled to a security dies, for the purposes of this Part of this Schedule he shall be treated as— Where a security is transferred by personal representatives to a legatee, for the purposes of paragraph 13 above they shall be treated as obtaining in respect of the transfer an amount equal to the market value of the security at the time of the transfer. In sub-paragraph (2) above “legatee” includes any person taking (whether beneficially or as trustee) under a testamentary disposition or on an intestacy or partial intestacy, including any person taking by virtue of an appropriation by the personal representatives in or towards satisfaction of a legacy or other interest or share in the deceased’s property.
This paragraph applies where a security is transferred from one person to another and— For the purposes of paragraph 13 above the person making the transfer shall be treated as obtaining in respect of it an amount equal to the market value of the security at the time of the transfer. Section 839 of the Taxes Act 1988 (connected persons) shall apply for the purposes of this paragraph.
An underwriting member of Lloyd’s shall be treated for the purposes of this Part of this Schedule as absolutely entitled as against the trustees to the securities forming part of his premiums trust fund, . . . Where a security forms part of a premiums trust fund at the end of 31st December of any relevant year, for the purposes of this Part of this Schedule— and for this purpose relevant years are 1989 and subsequent years. Where a security forms part of a premiums trust fund at the beginning of 1st January of any relevant year, for the purposes of this Part of this Schedule the trustees of the fund shall be treated as acquiring the security at that time; and for this purpose relevant years are 1990 and subsequent years. Sub-paragraph (5) below applies where the following state of affairs exists at the beginning of 1st January of any year or the end of 31st December of any year— The securities transferred by the trustees shall be treated for the purposes of sub-paragraphs (2) and (3) above as if they formed part of the premiums trust fund at the beginning of 1st January concerned or the end of 31st December concerned (as the case may be). Paragraph 16(1) above shall not apply where— In a case where an amount treated as income chargeable to tax by virtue of paragraph 12 above constitutes profits or gains mentioned in section 450(1) of the Taxes Act 1988— For the purpose of computing income tax for the year 1987-88 sub-paragraph (7) above shall have effect as if— In this paragraph “business” and “premiums trust fund” have the meanings given by section 457 of the Taxes Act 1988.]
Where on a transfer or redemption of a security by trustees an amount is treated as income chargeable to tax by virtue of paragraph 12 above, the rate at which it is chargeable shall be the rate applicable to trusts for the year of assessment in which the transfer or redemption is made. Where the trustees are trustees of a scheme to which section 469 of the Taxes Act 1988 applies, sub-paragraph (1) above shall not apply if or to the extent that the amount is treated as income in the accounts of the scheme.
Sub-paragraph (2) below applies where— In such a case— For the purposes of sub-paragraph (2) above—
In a case where— that paragraph shall not apply in the case of the transfer or redemption. In this paragraph “charity” has the same meaning as in section 506 of the Taxes Act 1988.
In a case where— that paragraph shall not apply in the case of the transfer or redemption.
paragraph 12 above would apply (apart from this paragraph) in the case of a transfer or redemption of a security, and
immediately before the transfer or redemption was made the security was held for the purposes of an exempt approved scheme (within the meaning of Chapter I of Part XIV of the Taxes Act 1988),
In a case where— that paragraph shall not apply in the case of the transfer.
a security is the subject of a transfer which falls within section 129(3) of the Taxes Act 1988, and
paragraph 12 above would apply in the case of the transfer (apart from this paragraph),
Section 108 of the Taxation of Chargeable Gains Act 1992 shall apply to the identification, for the purposes of this Part of this Schedule, of qualifying convertible securities transferred or redeemed as it applies to the identification, for the purposes of capital gains tax, of deep discount securities disposed of.
In a case where— sub-paragraph (2) below shall apply in relation to the company which issued the security. For the purposes of sections 338 and 494 of the Taxes Act 1988 (allowance of charges on income) the relevant amount shall be treated as if it were interest— In this paragraph “the relevant amount” means so much of the amount paid on the redemption as exceeds the issue price of the security.
Schedule 4 to the Taxes Act 1988 (deep discount securities) shall be amended as follows. In paragraph 1 (interpretation) the following sub-paragraph shall be inserted after sub-paragraph (1)— The following shall be inserted after paragraph 20—
Schedule 11 to the Finance Act 1989 (deep gain securities) shall be amended as follows. In paragraph 4 (meaning of transfer etc.) the following sub-paragraph shall be inserted after sub-paragraph (2)— The following shall be inserted after paragraph 22—
The amendment made by paragraph 27(2) above shall be deemed always to have had effect. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Subject to sub-paragraphs (1) to (3) above, this Schedule shall be deemed to have come into force on 9th June 1989.
Section 69.
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After section 12 of the Taxes Management Act 1970 there shall be inserted—
After section 98A of the Taxes Management Act 1970 there shall be inserted— In section 100(2) of that Act (penalties which are imposed by Commissioners), after paragraph (d) there shall be insertedor
At the end of section 36 of the Taxes Management Act 1970 (extension of time for assessment in case of fraudulent or negligent conduct), there shall be added— At the end of section 40 of that Act (extension of time for assessment in case of fraudulent or negligent conduct of person who has died), there shall be added—
This Schedule shall be deemed to have come into force on 1st July 1989.
Section 80.
Subject to sub-paragraph (2), the following provisions shall apply for the purposes of the Corporation Tax Acts, namely— In this paragraph— This paragraph shall have effect in relation to accounting periods beginning after the IBA’s final accounting period.
For the purposes of the 108 of the Taxation of Chargeable Gains Act 1992 the transfer under the principal Act of any asset from the IBA to the Commission or the Radio Authority shall be deemed to be for a consideration such that no gain or loss accrues to the IBA; and Schedule 2 to that Act (assets held on 6th April 1965) shall have effect in relation to an asset so transferred as if the acquisition or provision of it by the IBA had been the acquisition or provision of it by the Commission or (as the case may be) by the Authority. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Where the benefit of any debt in relation to which the IBA are, for the purposes of section 251 of the 1992 Act (debts), the original creditor is transferred under the principal Act to the Commission or the Radio Authority, the Commission or (as the case may be) the Radio Authority shall be treated for those purposes as the original creditor in relation to the debt in place of the IBA.
For the purposes of the 1979 Act the disposal under the principal Act of any relevant asset by the IBA to a DBS programme contractor shall be deemed to be for a consideration such that no gain or loss accrues to the IBA. In this paragraph—
For the purposes of the 1992 Act the transfer by the principal Act of any asset from the Cable Authority the Commission shall be deemed to be for a consideration such that no gain or loss accrues to that Authority.
For the purposes of the 1992 Act the transfer by the principal Act of shares in the Channel 4 company from the Commission to the Channel Four Television Corporation shall be deemed to be for a consideration such that no gain or loss accrues to the Commission. In sub-paragraph (1) “the Channel 4 company” means the body corporate referred to in section 12(2) of the Broadcasting Act 1981.
The unallowed capital losses of the IBA shall be apportioned between the relevant transferees in such manner as is just and reasonable having regard to the purposes, or principal purposes, for which the relevant assets were respectively used or held by the IBA and the activities which are to be carried on by those transferees respectively as from the transfer date. Any unallowed capital losses of the IBA which are apportioned to one of the relevant transferees under sub-paragraph (1) shall be treated as allowable capital losses accruing to that transferee on the disposal of an asset on the transfer date. In this paragraph—
Where the IBA have before the transfer date disposed of (or of their interest in) any assets used, throughout the period of ownership, wholly or partly for the purposes of the part of their trade transferred to the nominated company under the principal Act, sections 152 to 156 of the 1992 Act (roll-over relief on replacement of business assets) shall have effect in relation to that disposal as if the IBA and the nominated company were the same person.
This paragraph applies where any apportionment or other matter arising under the foregoing provisions of this Schedule appears to be material as respects the liability to tax (for whatever period) of two or more relevant transferees. Any question which arises as to the manner in which the apportionment is to be made or the matter is to be dealt with shall be determined, for the purposes of the tax of both or all of the relevant transferees concerned— The Commissioners by whom the question falls to be determined shall make the determination in like manner as if it were an appeal except that both or all of the relevant transferees concerned shall be entitled to appear and be heard by the Commissioners or to make representations to them in writing.
Any share issued by the nominated company to the Secretary of State in pursuance of the principal Act shall be treated for the purposes of the Corporation Tax Acts as if it had been issued wholly in consideration of a subscription paid to that company of an amount equal to the nominal value of the share. Any debenture issued by the nominated company to the Secretary of State in pursuance of the principal Act shall be treated for the purposes of the Corporation Tax Acts as if it had been issued—
In this Schedule— References in this Schedule to things transferred under the principal Act are references to things transferred in accordance with a scheme made under that Act.
Section 88.
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In section 832(1) of the Taxes Act 1988, in the definition of “the Capital Allowances Acts”, the words “, but excluding Part III of that Act” shall be omitted. This paragraph shall apply for chargeable periods beginning on or after 6th April 1990.
Section 89.
The Taxes Act 1988 shall have effect, and shall be deemed always to have had effect, subject to the amendments made by this Part of this Schedule.
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for the words “subsection (2) below” there shall be substituted the words “subsection (2) or (3) below”;
for the words “this subsection” there shall be substituted the words “subsection (2) or (3) below”; and
for the words “the amount of that tax” there shall be substituted the words “that amount”.
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In section 478(3), for the words “section (2)” there shall be substituted the words “ subsection (2) ”.
In section 751(1)(a), for the words “the persons” there shall be substituted the word “ persons ”.
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In section 31(3) of the Taxes Management Act 1970, for the words “Part XV or XVI” there shall be substituted the words “ any of sections 660 to 685 and 695 to 702 ”.
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In paragraph 5(2) of Schedule 3 to the Oil Taxation Act 1975, for the words “section 17 of this Act” and the words “the said section 17” there shall be substituted the words “ section 500 of the Taxes Act ”.
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in subsection (2), after the word “given” there shall be inserted the words “to him”; and
in subsection (7), after the words “shares” there shall be inserted the words “issued after 18th March 1986”.
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Subject to the following provisions of this paragraph, the amendments made by this Part of this Schedule shall be treated for the purposes of their commencement as if they had been made by the Taxes Act 1988. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
The Capital Allowances Act 1990 shall be amended as follows.
In section 1 (initial allowances: enterprise zones) in subsection (5) the words “as it applies for income tax purposes” and the words from “and” to the end shall be omitted.
Section 22 (first-year allowances: transitional relief for regional projects) shall be amended as follows. The following subsection shall be substituted for subsection (7)— In subsection (8) the words “disclaimer or” shall be omitted. Subsection (9) shall cease to have effect.
Section 23 (information relating to first-year allowances) shall be amended as follows. In subsection (1) the words “by a person other than a company”, the words from “, and a” to “an allowance,” and, in paragraphs (b) and (c), the words “or deduction” shall be omitted. In subsection (2) the words “other than a company” and the words from “, or a” to “company,” shall be omitted.
Section 24 (writing-down allowances and balancing adjustments) shall be amended as follows. In subsection (3) the words “in connection with a trade carried on by a person other than a company” shall be omitted. Subsection (4) shall cease to have effect.
Section 25 (qualifying expenditure) shall be amended as follows. In subsection (1)(a)(ii) the words from “in the case of a person” to “of a company” shall be omitted. Subsection (2) shall be omitted. In subsection (3) the words “, but not being a company,” shall be omitted. In subsection (4)—
In section 30 (first-year allowances) in subsection (1)(a) the words “or, in the case of a company, disclaim it” shall be omitted.
In section 31 (writing-down allowances) the following subsection shall be substituted for subsection (6)—
In section 41 (writing-down allowances) in subsection (3) the words “or is disclaimed under subsection (4) of that section”, the words “or under subsection (4)” and the words “or as disclaimed” shall be omitted.
In section 46 (recovery of excess relief: new expenditure) in subsection (6) the words “or was disclaimed” shall be omitted.
In section 47 (recovery of excess relief: old expenditure) in subsection (6)(a) the words “or was disclaimed” shall be omitted.
In section 48 (information relating to allowances made in respect of new expenditure) in subsection (1) the words “by a person other than a company” and the words from “and a” to “allowance” shall be omitted.
In section 49 (information relating to allowances made in respect of old expenditure) in subsection (2) the words “other than a company” and the words from “, or a” to “company,” shall be omitted.
In section 79 (effect of use partly for trade etc. and partly for other purposes) in subsection (6) the words “or is disclaimed under subsection (4) of that section”, the words “or (4)” and the words “or as disclaimed” shall be omitted.
In section 80 (effect of subsidies towards wear and tear) in subsection (6) the words “or is disclaimed under subsection (4) of that section”, the words “or (4)” and the words “or as disclaimed” shall be omitted.
Section 127.
In section 74(4) of the Finance Act 1952 for “519” there shall be substituted “ 842A ”.
Section 52 of the Finance Act 1974 shall cease to have effect.
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Section 132.