Paraguay - Economic memorandum
In section 36 of the Alcoholic Liquor Duties Act 1979 (excise duty on beer)—
for “£25.80” and “£0.86” there shall be substituted “ £27.00 ” and “ £0.90 ” respectively; and
for the words from “at the rate” onwards there shall be substituted the words “ at the rate of £0.90 per hectolitre for every degree by which the original gravity of the beer exceeds 1000 degrees ”.
In sections 42(6) and 43(4) of that Act (rates of drawback), the words “but as respects” onwards shall cease to have effect.
For the Table of rates of duty in Schedule 1 to that Act (wine and made-wine) there shall be substituted the Table in Part I of Schedule 1 to this Act.
In section 62(1) of that Act (excise duty on cider) for “£15.80” there shall be substituted “ £17.33 ”.
That Act shall have effect subject to the amendments set out in Part II of Schedule 1 to this Act (which relate to beverages of an alcoholic strength not exceeding 5.5 per cent.).
In this section— and different days may be appointed under paragraph (c) above for different provisions or different purposes.
subsections (1)(a), (3) and (4) (with Part I of Schedule 1 to this Act) shall be deemed to have come into force at 6 o’clock in the evening of 15th March 1988;
subsections (1)(b) and (2) shall come into force on 1st October 1988; and
subsection (5) (with Part II of Schedule 1 to this Act) shall come into force on such day as the Commissioners may by order made by statutory instrument appoint;
1. Cigarettes An amount equal to 21 per cent. of the retail price plus £31.74 per thousand cigarettes. 2. Cigars £48.79 per kilogram. 3. Hand-rolling tobacco £51.48 per kilogram. 4. Other smoking tobacco and chewing tobacco £24.95 per kilogram.
This section shall be deemed to have come into force on 18th March 1988.
In section 6(1) of the Hydrocarbon Oil Duties Act 1979, for “£0.1938” (light oil) and “£0.1639” (heavy oil) there shall be substituted “ £0.2044 ” and “ £0.1729 ” respectively.
In section 13A of that Act (rebate on unleaded petrol), for “£0.0096” there shall be substituted “ £0.0202 ”.
This section shall be deemed to have come into force at 6 o’clock in the evening of 15th March 1988.
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in sub-paragraph (a), for the words “for which a licence was taken out before the beginning of the year” there shall be substituted the words “constructed before”; and
in sub-paragraph (b), for the words “224 pounds” there shall be substituted the words “101.6 kilograms”.
In Part I of Schedule 3 to each Act (annual rates of duty on tractors etc.)—
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After section 11 of the Customs and Excise Duties (General Reliefs) Act 1979 there shall be inserted—
In section 17 of that Act (statutory instruments containing orders or regulations: parliamentary procedure)—
after “7” in subsection (3) and after “4” in subsection (4) there shall be inserted “ , 11A ”; and
for “or 4” in subsection (5) there shall be substituted “ , 4 or 11A ”.
For section 8 of the Alcoholic Liquor Duties Act 1979 there shall be substituted—
In section 22 of that Act (drawback on British compounds and spirits of wine), subsection (7) shall cease to have effect.
In section 33 of that Act (restrictions on use of certain goods relieved from spirits duty)—
in paragraph (c) of subsection (1), for the word “repayment” there shall be substituted the word “ remission ”;
paragraph (d) of that subsection and the word “or” immediately preceding that paragraph shall cease to have effect; and
in paragraph (b) of subsection (2), for the words “repaid or assumed to be repayable” there shall be substituted the word “ remitted ”.
In Schedule 1 to the Alcoholic Liquor Duties Act 1979 (wine and made-wine), in paragraph 1(1) under the heading “Interpretation” (meaning of “sparkling”), for the words “1 bar in excess of atmospheric pressure” there shall be substituted the words “ 1.5 bars in excess of atmospheric pressure ”.
The Commissioners may, for the purpose of supplementing the information as to imported goods which may be made available to persons other than the Commissioners, disclose information to which this section applies to such persons as they think fit.
Such information may be so disclosed on such terms and conditions (including terms and conditions as to the payment of fees or charges to the Commissioners and the making of the information available to other persons) as the Commissioners think fit.
This section applies to information consisting of the names and addresses of persons declared as consignees in entries of imported goods, arranged by reference to such classifications of imported goods as the Commissioners think fit.
This section shall be construed as if it were contained in the Customs and Excise Management Act 1979.
In section 92(2) of the Customs and Excise Management Act 1979 (approval of warehouses), for paragraph (b) there shall be substituted—
In section 93(2) of that Act (regulation of warehouses and warehoused goods), in paragraph (c) the words “(other than operations consisting of the mixing of spirits with wine or made-wine)” shall cease to have effect.
In subsection (1) of section 164 of the Customs and Excise Management Act 1979 (power to search persons)—
after the words “person to whom this section applies” there shall be inserted the words “ (referred to in this section as the suspect) ”; and
for the words from “any officer” onwards there shall be substituted the words “ an officer may exercise the powers conferred by subsection (2) below and, if the suspect is not under arrest, may detain him for so long as may be necessary for the exercise of those powers and (where applicable) the exercise of the rights conferred by subsection (3) below ”.
For subsections (2) and (3) of that section there shall be substituted—
After subsection (4) of that section there shall be inserted—
In section 138(1) of the Customs and Excise Management Act 1979 (power to arrest within 3 years of commission of offence) for the words “3 years” there shall be substituted the words “ 20 years ”.
This section has effect in relation to offences committed after the passing of this Act.
In the following enactments (which provide for the punishment on conviction on indictment of certain offences), namely— for the words “2 years” or “two years” there shall be substituted the words “ 7 years ” or “ seven years ”, as appropriate.
sections 50(4)(b), 53(9)(b), 63(6)(b), 68(3)(b), 100(4)(b), 159(7)(b) and 170(3)(b) of the Customs and Excise Management Act 1979;
sections 10(7)(b), 13(5)(b) and 14(8)(b) of the Hydrocarbon Oil Duties Act 1979;
paragraph 16(1)(b) of Schedule 3 to the Betting and Gaming Duties Act 1981; and
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For subsection (2) of section 68A of the Customs and Excise Management Act 1979 there shall be substituted—
For subsections (1) and (2) of section 136 of that Act there shall be substituted— and in subsection (3) of that section, after the words “subsection (1)” there shall be inserted the words “ or (1A) ”.
and in subsection (3) of that section, after the words “subsection (1)” there shall be inserted the words “or (1A)”.
in sub-paragraph (3), in paragraph (a), the words from “or, with intent” to “material particular” shall cease to have effect;
after that paragraph there shall be inserted-
in paragraph (ii) of that sub-paragraph, for the words “two years” there shall be substituted the words “ the maximum term ”; and
after that sub-paragraph there shall be inserted—
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in paragraph (ii) of sub-paragraph (2), for the words “two years” there shall be substituted the words “the maximum term”; and
In sub-paragraph (2) above, “the maximum term” means seven years in the case of an offence under paragraph (a) or (c) and two years in the case of an offence under paragraph (b) of that sub-paragraph.
This section has effect in relation to offences committed after the passing of this Act.
In Schedule 6 to the Value Added Tax Act 1983 (exemptions), Group 7 (health and welfare) shall be amended as follows.
For items 1, 1A and 2 there shall be substituted—
In note (2), for the words “Paragraphs (a) to (f) of item 1 includes supplies” there shall be substituted the words “Paragraphs (a) to (d) of item 1 and paragraphs (a) and (b) of item 2 include supplies of services”.
This section shall have effect in relation to supplies made on or after 1st September 1988.
Schedule 1 to the Value Added Tax Act 1983 (registration) shall be amended in accordance with subsections (2) to (7) below.
In paragraphs 1(5) and 2(3) (capital assets of business to be disregarded), after the word “goods” there shall be inserted the words “or services”.
In paragraph 4(3) (registration with effect from beginning of period where taxable supplies for the first thirty days exceed specified amount), for “£21,300” there shall be substituted “£22,100”.
For paragraph 5 there shall be substituted—
For paragraph 7 and the heading preceding that paragraph there shall be substituted—
For paragraphs 9 and 10 there shall be substituted—
For paragraphs 11, 11A and 12 and the heading preceding paragraph 11 there shall be substituted—
In consequence of the foregoing provisions of this section—
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in section 18(1)(c) of the Finance Act 1985, for the words “paragraph 11(1)(a)” there shall be substituted the words “paragraph 11(1)”.
Paragraph 4 of Schedule 7 to the Value Added Tax Act 1983 (assessment of tax due) shall be amended as follows.
For sub-paragraph (2) there shall be substituted—
In sub-paragraph (5), for the words “(1) or (2)” there shall be substituted the words “(1), (2) or (2A)”.
In sub-paragraph (9), for the words “(1), (2) or (6)” there shall be substituted the words “(1), (2), (2A) or (6)”.
Section 14 of the Finance Act 1985 (serious misdeclaration or neglect resulting in understatements or overclaims) shall be amended as follows.
For subsections (2) and (3) there shall be substituted—
In subsection (4) for the words “The references in subsections (1) to (3) above” there shall be substituted the words “Any reference in this section”.
In subsection (5) for the words “subsections (2)(a) and (3) above” there shall be substituted the words “this section”.
After that subsection there shall be inserted—
After section 14 of the Finance Act 1985 there shall be inserted—
In subsection (1) of section 15 of the Finance Act 1985 (failures to notify and unauthorised issue of invoices)—
in paragraph (a), after the words “paragraphs 3, 4 and 11(2)” there shall be inserted the words “and (3)”;
in paragraph (b), for the words “an invoice” there shall be substituted the words “one or more invoices”; and
for the words “30 per cent.” there shall be substituted the words “the specified percentage”.
In subsection (3) of that section—
in paragraph (a), for the word “discovered” there shall be substituted the words “became fully aware of”;
in paragraph (b), after the words “sub-paragraph (2)” there shall be inserted the words “or (3)” and for the word “discovered” there shall be substituted the words “became fully aware of”; and
the amount which is, or the aggregate of the amounts which are—
After that subsection there shall be inserted—
In section 18 of that Act—
subsection (2) (which provides for tax to carry interest in certain cases of conduct falling within section 15(1)(a) of that Act) shall cease to have effect; and
in subsection (3), for the words “If, in a case where subsection (2) does not apply” there shall be substituted the words “In any case where”.
Where— that subsection shall apply without the amendment made by subsection (1)(c) above in relation to so much of the assessment as is to be made by reference to that tax.
a person is liable to a penalty for conduct falling within paragraph (a) of subsection (1) of section 15 of that Act; and
any relevant tax by reference to which that penalty is to be assessed is payable for a period before 16th March 1988,
Subsections (1)(b) and (c), (2)(c) and (3) above shall be deemed to have come into force on 16th March 1988.
In subsection (1) of section 17 of the Finance Act 1985 (breaches of regulatory provisions)—
after the words “paragraph 7” there shall be inserted the words “or 7A” and for the words “(notification of cessation of taxable supplies)” there shall be substituted the words “(notification of end of liability or entitlement to be registered etc.)”; and
for the words from “to a daily penalty” to the end there shall be substituted the words “to a penalty equal to the prescribed rate multiplied by the number of days on which the failure continues (up to a maximum of 100) or, if it is greater, to a penalty of £50.”
In subsection (3) of that section, for “£10”, “£20” and “£30” there shall be substituted “£5”, “£10” and “£15” respectively.
In subsection (1) of section 21 of that Act (assessment of amounts due by way of penalty, interest or surcharge), after the words “the Commissioners may” there shall be inserted the words “subject to subsection (1A) below” and after that subsection there shall be inserted—
Where— subsection (3) of that section shall apply without the amendments made by subsection (2) above in relation to so much of the assessment as is to be made by reference to those days.
a person is liable to a penalty for any failure to comply with such a requirement as is referred to in subsection (1) of section 17 of that Act; and
any of the days by reference to which that penalty is to be assessed fall before 16th March 1988,
Subsections (1)(b), (2) and (3) above shall be deemed to have come into force on 16th March 1988.
For section 20 of the Finance Act 1985 there shall be substituted—
an amount is due from the Commissioners to any person under the Value Added Tax Act 1983 or Chapter II of Part I of the Finance Act 1985; and
In any case where the amount referred to in paragraph (a) above shall be set against the sum referred to in paragraph (b) above and, accordingly, to the extent of the set-off, the obligations of the Commissioners and the person concerned shall be discharged.
an amount is due from the Commissioners to any person under the Value Added Tax Act 1983 or Chapter II of Part I of the Finance Act 1985; and
that person is liable to pay a sum by way of tax, penalty, interest or surcharge,
that person is liable to pay a sum by way of tax, penalty, interest or surcharge,
Subsection (1) above shall not apply in the case of any such amount as is mentioned in paragraph (a) of that subsection where that amount became due to the person in question—
at a time when that person’s estate was vested in any other person as that person’s trustee in bankruptcy;
at a time when that person’s estate was vested in any other person as that person’s interim trustee or permanent trustee;
at a time, other than a time before the appointment of a liquidator, when that person was being wound up, either voluntarily or by the court;
at a time when an administration order was in force in relation to that person;
at a time when there was an administrative receiver of that person;
at a time when— was in force in relation to that person; or
a voluntary arrangement approved in accordance with Part I or VIII of the Insolvency Act 1986, or Part II or Chapter II of Part VIII of the Insolvency (Northern Ireland) Order 1989, or
a deed of arrangement registered in accordance with the Deeds of Arrangement Act 1914 or Chapter I of Part VIII of that Order of 1989,
at a time when that person’s estate was vested in any other person as that person’s trustee under a trust deed.
In subsection (2) above—
“administration order” means an administration order under Part II of the Insolvency Act 1986 or an administration order within the meaning of Article 5(1) of the Insolvency (Northern Ireland) Order 1989;
“administrative receiver” means an administrative receiver within the meaning of section 251 of that Act of 1986 or Article 5(1) of that Order of 1989; and
“interim trustee”, “permanent trustee” and “trust deed” have the same meanings as in the Bankruptcy (Scotland) Act 1985.
Where— the Commissioners may, by notice served on the recipient and on the supplier, elect that the amount of tax understated by the document shall be regarded for all purposes as tax due from the recipient and not from the supplier.
a taxable person (in this section referred to as “the recipient”) provides a document to himself which purports to be an invoice in respect of a taxable supply of goods or services to him by another taxable person; and
that document understates the tax chargeable on the supply,
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The rate at which income tax is charged for the year 1988-89 in respect of so much of an individual’s total income as exceeds £19,300 shall be 40 per cent.
In accordance with subsection (1) above, section 1 of the Taxes Act 1988 shall be amended as follows— and section 1(4) (indexation) shall not apply for the year 1988-89.
for paragraph (b) of subsection (2) there shall be substituted—;
in subsection (3) the words “and the” onwards shall cease to have effect;
in subsection (4) for the words “each of the amounts” there shall be substituted the words “the amount”;
in subsection (6) for the word “amounts” there shall be substituted the word “amount”;
In section 694 of the Taxes Act 1988 (which imposes a charge on trustees of maintenance funds for historic buildings in certain circumstances), in subsection (2), the words “at the rate of 30 per cent.” shall cease to have effect; and after that subsection there shall be inserted—
In section 832(1) of the Taxes Act 1988, in the definition of “additional rate”, for the words “income tax for” onwards there shall be substituted the words “any year of assessment for which income tax is charged, means 10 per cent. or such other rate as Parliament may determine”.
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In section 257 of the Taxes Act 1988 (personal reliefs)—
in subsection (1)(a) (married allowance) for “£3,795” there shall be substituted “£4,095”;
in subsections (1)(b) (single allowance) and (6) (wife’s earned income relief) for “£2,425” there shall be substituted “£2,605”;
in subsection (2)(a) (married allowance: age 65 to 79) for “£4,675” there shall be substituted “£5,035”;
in subsection (2)(b) (single allowance: age 65 to 79) for “£2,960” there shall be substituted “£3,180”;
in subsection (3)(a) (married allowance: age 80 and over) for “£4,845” there shall be substituted “£5,205”;
in subsection (3)(b) (single allowance: age 80 and over) for “£3,070” there shall be substituted “£3,310”;
in subsection (5) (income limit for age allowance) for “£9,800” there shall be substituted “£10,600”.
Section 257(9) of that Act (indexation) shall not apply for the year 1988-89.
Sections 258, 263 and 264 of that Act (housekeeper allowance, dependent relative allowance and son’s or daughter’s services allowance) shall not have effect for the year 1988-89 or any subsequent year of assessment.
Corporation tax shall be charged for the financial year 1988 at the rate of 35 per cent.
For the financial year 1988 the small companies rate shall be 25 per cent.
For the financial year 1988 the fraction mentioned in section 13(2) of the Taxes Act 1988, and in section 95(2) of the Finance Act 1972, (marginal relief for small companies) shall be one fortieth.
In sections 266(5)(a) and 274(3)(a) of the Taxes Act 1988, and in paragraph 3(3)(a) of Schedule 14 to that Act, (rate of relief on premiums on life policies etc.) for the words “15 per cent.” wherever they occur there shall be substituted the words “ 12.5 per cent. ”.
This section shall have effect on and after 6th April 1989.
In section 259 of the Taxes Act 1988 (additional relief in respect of children), in subsection (2), for the words “and (4)” there shall be substituted the words “to (4A)”; and after subsection (4) there shall be inserted—
This section shall apply for the year 1989-90 and subsequent years of assessment.
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For the year 1990-91 and subsequent years of assessment section 278 of the Taxes Act 1988 (which with certain exceptions denies relief under Chapter I of Part VII to non-residents) shall have effect with the following amendments.
In subsection (2)(e) (exception for widows of Crown servants) after the word “husband” there shall be inserted the words “, or a widower whose late wife,”.
After subsection (2) there shall be inserted—
Subsections (3) to (7) shall be omitted.
Section 279 of the Taxes Act 1988 (which treats the income of a woman living with her husband as his income for income tax purposes) shall not have effect for the year 1990-91 or any subsequent year of assessment.
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Schedule 3 to this Act (which makes provision consequential on sections 32 and 33 above and other minor amendments relating to the treatment for income tax purposes of husbands, wives, widowers and widows) shall have effect.
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under an order made by a court (whether in the United Kingdom or elsewhere) before 15th March 1988, or before the end of June 1988 on an application made on or before 15th March 1988;
under a deed executed or written agreement made before 15th March 1988 and received by an inspector before the end of June 1988;
under an oral agreement made before 15th March 1988, written particulars of which have been received by an inspector before the end of June 1988; or
under an order made by a court (whether in the United Kingdom or elsewhere) on or after 15th March 1988, or under a written agreement made on or after that date, where the order or agreement replaces, varies or supplements an order or agreement within this subsection;
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it is an obligation to make periodical payments (not being instalments of a lump sum) which are made by a person—
as one of the parties to a marriage (including a marriage which has been dissolved or annulled) to or for the benefit of the other party to the marriage and for the maintenance of the other party, or
to any person under 21 years of age for his own benefit, maintenance or education, or
to any person for the benefit, maintenance or education of a person under 21 years of age, and
the order or agreement replaced, varied or supplemented provided for such payments to be made for the benefit, maintenance or, as the case may be, education of the same person.
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This section applies to any annual payment due in the year 1988-89 which—
is made in pursuance of an existing obligation under an order made by a court (whether in the United Kingdom or elsewhere) or under a written or oral agreement,
is made by one of the parties to a marriage (including a marriage which has been dissolved or annulled) either—
to or for the benefit of the other party and for the maintenance of the other party, or
to the other party for the maintenance by the other party of any child of the family,
is due at a time when—
the two parties are not a married couple living together, and
the party to whom or for whose benefit the payments are made has not remarried, and
is within the charge to tax under Case III or Case V of Schedule D, and is not by virtue of Part XV of the Taxes Act 1988 treated for any purpose as the income of the person making it.
On making a claim for the purpose a person chargeable to tax in respect of payments to which this section applies shall be entitled, in computing his total income for the year 1988-89, to deduct an amount equal to the aggregate amount of the payments, or £1,490, whichever is less.
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This section applies to any annual payment due in the year 1989-90 or any subsequent year of assessment which—
is made in pursuance of an existing obligation under an order made by a court (whether in the United Kingdom or elsewhere) or under a written or oral agreement,
is made by an individual—
as one of the parties to a marriage (including a marriage which has been dissolved or annulled) to or for the benefit of the other party to the marriage and for the maintenance of the other party, or
to any person under 21 years of age for his own benefit, maintenance or education, or
to any person for the benefit, maintenance or education of a person under 21 years of age, and
is (apart from this section) within the charge to tax under Case III or Case V of Schedule D, and is not by virtue of Part XV of the Taxes Act 1988 treated for any purpose as the income of the person making it.
A payment to which this section applies shall not be a charge on the income of the person liable to make it, but—
that person shall be entitled, on making a claim for the purpose, to make a deduction of an amount determined in accordance with subsection (3) below in computing his total income for the year of assessment in which the payment falls due, and
the payment shall form part of the income of the recipient, but subject to subsections (4) and (5) below.
The amount which a person may deduct under subsection (2)(a) above in computing his total income for a year of assessment shall be equal to the aggregate amount of the payments made by him which fall due in that year and to which this section applies, except that it shall not in any event exceed the aggregate amount of any payments due in the year 1988-89—
which satisfy the conditions in paragraphs (a), (b) and (c) of subsection (1) above, and
in respect of which he was entitled to make a deduction in computing his income for that year.
The amount which, by virtue of subsection (2)(b) above, is treated as forming part of a person’s income for a year of assessment by reason of payments made by another person (“the payer”) shall not exceed the aggregate amount of any payments made by the payer which—
formed part of the same recipient’s income for the year 1988-89, and
satisfy the conditions in paragraphs (a), (b) and (c) of subsection (1) above.
The amount which, by virtue of subsection (2)(b) above, would apart from this subsection be treated as forming part of a person’s income for a year of assessment by reason of payments within subsection (6) below shall, if he makes a claim for the purpose, be reduced by the amount of the difference between the higher (married person's) relief and the lower (single person's) relief under subsection (1) of section 257 of the Taxes Act 1988 as it applies for that year to a person not falling within subsection (2) or (3) of that section.
The payments referred to in subsection (5) above are payments which—
are made by one of the parties to a marriage (including a marriage which has been dissolved or annulled) either—
to or for the benefit of the other party and for the maintenance of the other party, or
to the other party for the maintenance by the other party of any child of the family, and
are due at a time when—
the two parties are not a married couple living together, and
the party to whom or for whose benefit the payments are made has not remarried.
A payment to which this section applies shall be made without deduction of income tax.
A payment to which this section applies shall be within the charge to tax under Case III or (if it arises outside the United Kingdom) Case V of Schedule D; and tax chargeable under Case III shall, notwithstanding anything in sections 64 to 67 of the Taxes Act 1988, be computed on the payments falling due in the year of assessment, so far as paid in that or any other year.
No deduction shall be made under section 65(1)(b) of the Taxes Act 1988 on account of a payment to which this section applies.
If an election is duly made for the purpose by any person, section 36 above shall have effect in relation to all payments made by him— and accordingly sections 37 and 38 shall not apply to the payments.
to which section 37 or section 38 above would apply apart from the election, and
which fall due in a year of assessment for which the election has effect;
An election under subsection (1) above—
shall be made in such form and manner as the Board may prescribe,
shall be made not later than twelve months after the end of the first year of assessment for which it is to have effect,
shall have effect for any subsequent year of assessment, and
shall be irrevocable.
A person making an election under subsection (1) above shall, before the end of the period of 30 days beginning with the day on which it is made, give notice of it to every recipient of a payment affected by the election.
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In sections 37 to 39 above—
“child of the family”, in relation to the parties to a marriage, means a person under 21 years of age—
who is a child of both those parties, or
who (not being a person who has been boarded out with them by a public authority or voluntary organisation) has been treated by both of them as a child of their family;
The references in sections 38(2)(b) and (4) and 39(3) above to the recipient of a payment are, in a case of the kind described in sections 37(1)(b)(i) and 38(1)(b)(i), references to the other party there mentioned.
The references in sections 37 and 38 above to a married couple living together shall be construed in accordance with section 282(1) of the Taxes Act 1988, but section 282(2) shall not apply for the purposes of those sections.
For the year 1988-89 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.
The following sections shall be inserted after section 356 of the Taxes Act 1988—
In section 357 of the Taxes Act 1988 (limit on interest relief for home loans where residence basis does not apply)—
in subsection (1)—
for the word “Interest” there shall be substituted the words “Subject to subsection (1A) below, where section 356A does not have effect with respect to a payment of interest because of section 356C(2) or (7) and the payment is of interest”, and
after “356(1)” there shall be inserted the words “the payment of interest”, and
the following subsections shall be inserted after that subsection—
In the Taxes Act 1988—
in section 355(1) (requirement that interest be payable in relation to only or main residence of payer), before “357” there shall be inserted the words “356A or”,
in section 367(5) (meaning of “qualifying maximum”), for “357(1)” there shall be substituted “356A to 357”,
in section 370(2)(b) (MIRAS: meaning of “relevant loan interest”), before “357” there shall be inserted “356A,”, and
in section 373 (MIRAS: large loans and joint borrowers)—
in subsection (1), before “357(1)” there shall be inserted “356A, section”,
in subsection (3), after the word “applies” there shall be inserted the words “section 356D(6) or”, and
in subsection (4), after the words “by virtue of” there shall be inserted the words “section 356D(7) or”.
This section shall come into force on 1st August 1988.
In relation to payments of interest made on or after 6th April 1988 section 355 of the Taxes Act 1988 (limitations on relief for loans for purchase or improvement of land etc.) shall have effect with the insertion of the following subsections after subsection (2)—
In relation to payments of interest made on or after 6th April 1988 section 356 of the Taxes Act 1988 (job-related accommodation) shall have effect with the insertion of the following subsection after subsection (1)—
Interest paid by a housing association on a home improvement loan made on or after 6th April 1988 shall not be relevant loan interest for the purposes of Part IX of the Taxes Act 1988; and for the purposes of this subsection—
“housing association” means a housing association for the time being approved for the purposes of section 488 of that Act or a self-build society for the time being approved for the purposes of section 489,
“home improvement loan” has the same meaning as in subsection (2B) of section 355 of that Act, and
subsection (2C) of that section shall have effect as it does for the purposes of subsection (2A) of that section.
In sections 355(1)(a) and 357(2)(a) of the Taxes Act 1988 the words “or of a dependent relative or former or separated spouse of his,” shall not have effect in relation to payments of interest made on or after 6th April 1988.
Subsection (1) above shall not apply where the interest is paid on a loan made before 6th April 1988 if interest paid on it at a relevant time was eligible for relief under section 353 of the Taxes Act 1988 only because the land, caravan or house-boat concerned was used as the only or main residence of the same dependent relative or former or separated spouse.
In subsection (2) above “relevant time” means— but paragraph (b) above shall not apply if at any time after the date on which the loan was made and before the date on which the land, caravan or house-boat was first used as mentioned in subsection (2) above, the land, caravan or house-boat was used for any other purpose.
the last time when interest was paid on the loan before 6th April 1988, or
if no interest was paid on it before that date, any time within the period of 12 months (or any longer period substituted in relation to the case under section 355(2) of the Taxes Act 1988) after the date on which the loan was made;
In section 358(4)(a) of the Taxes Act 1988 (relief where borrower deceased) the words “or of any dependent relative of the deceased” shall not have effect in relation to payments of interest made on or after 6th April 1988 unless—
the deceased died before that date, and
the land, caravan or house-boat was used as the only or main residence of the dependent relative before that date.
Where it is proved by written evidence that a loan made on or after 6th April 1988 was made in pursuance of an offer made by the lender before that date and that the offer either was in writing or was evidenced by a note or memorandum made by the lender before that date, the loan shall be deemed for the purposes of this section to have been made before that date.
Interest paid by a housing association shall not be relevant loan interest for the purposes of Part IX of the Taxes Act 1988 where by virtue of this section it would not be relevant loan interest if paid by a member of the association; and in this subsection “housing association” means a housing association for the time being approved for the purposes of section 488 of that Act or a self-build society for the time being approved for the purposes of section 489.
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 1988-89 and subsequent years of assessment.
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In section 141 of the Taxes Act 1988 (non-cash vouchers), in subsection (6), for the words “Subsections (1) and (2)” there shall be substituted the words “Subsection (1)” and after that subsection there shall be inserted—
In section 142 of that Act (credit-tokens), after subsection (3) there shall be inserted—
In section 155 of that Act (benefits in kind for persons in director’s or higher-paid employment: exceptions from the general charge), after subsection (1) there shall be inserted—
After section 197 of that Act there shall be inserted—
This section shall have effect for the year 1988-89 and subsequent years of assessment.
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In subsection (1) of section 36 of the Finance (No. 2) Act 1975 (vouchers other than cash vouchers), for the words “Subject to subsection (2) below” there shall be substituted the words “ Subject to the provisions of this section ”.
The provision set out in subsection (1) above shall be inserted after subsection (3A) of that section as subsection (3B) with the substitution—
for the reference to section 839 of the Taxes Act 1988 of a reference to section 533 of the Taxes Act 1970; and
for any reference to a non-cash voucher of a reference to a voucher.
The amendment made by subsection (1) above shall have effect for the year 1988-89 and subsequent years of assessment; and the amendments made by subsections (2) and (3) above shall have effect for the year 1987-88.
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The provision set out in subsection (1) above shall be inserted after subsection (3) of section 36A of the Finance (No. 2) Act 1975 (credit-tokens) as subsection (3A) with the substitution for the reference to section 839 of the Taxes Act 1988 of a reference to section 533 of the Taxes Act 1970.
The amendment made by subsection (1) above shall have effect for the year 1988-89 and subsequent years of assessment; and the amendment made by subsection (2) above shall have effect for the year 1987-88.
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The provision set out in subsection (1) above shall be added at the end of section 62 of the Finance Act 1976 as subsection (9) with the substitution—
for the reference to section 154 of the Taxes Act 1988 of a reference to section 61 of the 1976 Act; and
for the reference to section 839 of the Taxes Act 1988 of a reference to section 533 of the Taxes Act 1970.
The amendment made by subsection (1) above shall have effect for the year 1988-89 and subsequent years of assessment; and the amendment made by subsection (2) above shall have effect for the year 1987-88.
Where eligible shares in a company are issued for the purpose of raising money for qualifying activities— Chapter III of Part VII of the Taxes Act 1988 (relief for investment in new corporate trades: the business expansion scheme) shall apply in relation to the company with the modifications set out in Part I of Schedule 4 to this Act.
which are being carried on by the company or any of its subsidiaries; or
which the company or any of its subsidiaries intends to carry on,
In this section and Chapter III (as so modified) “qualifying activities”, in relation to a company by which eligible shares are issued or any subsidiary of such a company, means activities which—
consist of or are connected with the provision and maintenance of dwelling-houses to which this section applies which the company or subsidiary lets, or intends to let, on qualifying tenancies; and
are, during the period beginning with the date on which the shares are issued and ending four years after that date, conducted on a commercial basis and with a view to the realisation of profits.
This section applies to any dwelling-house which is not precluded from being a dwelling-house to which this section applies by Part II of Schedule 4 to this Act; and in this section and that Part of that Schedule—
references to a company or subsidiary do not include references to a company or subsidiary which is a registered housing association within the meaning of the Housing Associations Act 1985 or Part VII of the Housing (Northern Ireland) Order 1981;
“qualifying tenancy” means any tenancy which is— and is not a tenancy which falls within subsection (4) below; and
for the purposes of the Housing Act 1988, an assured tenancy other than an assured shorthold tenancy;
for the purposes of the Housing (Scotland) Act 1988, an assured tenancy other than a short assured tenancy; or
in Northern Ireland, a tenancy which complies with such requirements or conditions as may be prescribed by regulations made by the Department of the Environment for Northern Ireland,
expressions which are also used in Chapter III have the same meanings as in that Chapter.
A tenancy falls within this subsection if— and in this subsection any reference to the tenant includes, in the case of a joint tenancy, a reference to either or any of the joint tenants.
it is a tenancy granted in consideration of a premium within the meaning of Schedule 3 to the Capital Gains Tax Act 1979; or
any option to purchase in relation to the dwelling-house has been granted to the tenant or an associate of his;
Regulations under subsection (3) above shall be made by statutory rule for the purposes of the Statutory Rules (Northern Ireland) Order 1979 and shall be subject to negative resolution within the meaning of section 41(6) of the Interpretation Act (Northern Ireland) 1954.
This section and Schedule 4 to this Act shall have effect in relation to shares issued after the passing of this Act and before the end of 1993.
The Taxes Act 1988 shall have effect, and be deemed always to have had effect, with the following amendments, namely—
in section 289(12)(b), the substitution of the words “sections 290A, 293” for the words “ sections 293 ”; and
the insertion after section 290 of the following section—
Schedule 5 to the Finance Act 1983 shall be deemed always to have had effect as if—
in paragraph 2(7), for the words “paragraphs 5” there had been substituted the words “ paragraphs 3A, 5 ”; and
the provisions set out in subsection (1)(b) above had been inserted, with any necessary modifications, after paragraph 3 as paragraph 3A.
In section 294 of the Taxes Act 1988 (companies with interests in land), after subsection (5) there shall be inserted—
This section shall have effect in relation to valuations which fall to be made after the passing of this Act.
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For subsection (3) of section 311 of the Taxes Act 1988 there shall be substituted—
This section shall have effect in relation to approved funds closing after 15th March 1988.
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In section 56(1) of the Finance (No. 2) Act 1987 and section 655(4) of the Taxes Act 1988 (personal pension schemes not to be approved with effect from date earlier than 4th January 1988) for “4th January” there shall be substituted “1st July”.
In consequence of the amendment made by subsection (1) above—
the same amendment shall be made in—
section 54(1) of the Act of 1987 and section 618(1) of the Act of 1988 (no retirement annuity relief for contracts made or trust schemes established on or after 4th January 1988);
section 54(3) of the Act of 1987 and section 618(2) of the Act of 1988 (limit on lump sums under contracts made or schemes established before 4th January 1988); and
section 20(3) of the Act of 1987 and section 632(3) of the Act of 1988 (removal of restriction from certain schemes established before 4th January 1988);
in section 55 of the Act of 1987 and section 655 of the Act of 1988 (transitional provisions: carry back and carry forward)—
in subsection (2), for “1984-85, 1985-86 or 1986-87” there shall be substituted “1985-86, 1986-87 or 1987-88”; and
in subsection (3), for “1987-88” there shall be substituted “1988-89”; and
in section 56(2) of the Act of 1987 and section 655(5) of the Act of 1988 (provisional approval where application made before 1st August 1989) for “August 1989” there shall be substituted “February 1990”.
The amendments made by this section shall be deemed always to have had effect.
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and references to an employee or to an employer include references to the holder of an office or to the person under whom an office is held.
In section 638 of that Act, for subsection (7) (personal pension schemes which permit acceptance of certain contributions not to be approved) there shall be substituted—
In section 686(2) of that Act (income arising to trustees which is chargeable to income tax at the additional rate), for paragraph (c) there shall be substituted—.
The amendments made by this section shall be deemed to have come into force on 1st July 1988.
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In section 14 of the Finance Act 1973 and section 189 of the Taxes Act 1988 (lump sum benefits paid on retirement not chargeable to income tax under Schedule E), for the words “on his retirement from an office or employment” there shall be substituted the words “(whether on his retirement from an office or employment or otherwise)”.
The amendments made by this section shall be deemed always to have had effect.
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For subsection (2) of section 450 of the Taxes Act 1988 (underwriters) there shall be substituted—
Section 39 of the Finance Act 1973 shall be renumbered as subsection (1) of that section and after that provision as so renumbered there shall be inserted—
In Schedule 16 to that Act (underwriters)—
the subsection (2) set out in subsection (1) above shall be inserted after paragraph 2 as paragraph 2A; and
paragraph 16 (assessment on agent) shall cease to have effect.
The provisions set out in Schedule 5 to this Act shall be inserted—
after Schedule 19 to the Taxes Act 1988 as Schedule 19A; and
after Schedule 16 to the Finance Act 1973 as Schedule 16A.
Subsections (1) and (4)(a) above shall have effect for the year 1988-89 and subsequent years of assessment; and subsections (2), (3) and (4)(b) above shall have effect for the years 1986-87 and 1987-88.
In subsection (4) of section 450 of the Taxes Act 1988 (underwriters), for paragraph (b) there shall be substituted—
The amendment set out in subsection (1) above shall also be made in paragraph 4 of Schedule 16 to the Finance Act 1973 (underwriters).
Subsection (1) above shall have effect for the year 1988-89 and subsequent years of assessment; and subsection (2) above shall have effect for the years 1985-86, 1986-87 and 1987-88.
For subsection (5) of section 450 of the Taxes Act 1988 (underwriters) there shall be substituted—
The provisions set out in subsection (1) above, but renumbered as subsections (1) and (2) and with the substitution, in the provision renumbered as subsection (1), of the words “subsection (2)” for the words “subsection (5A)”, shall also be substituted for subsections (1) to (4) of section 70 of the Finance (No. 2) Act 1987 (underwriters); and in subsection (5) of that section, for the word “underwriter” there shall be substituted the word “ member ”.
In this section—
subsection (1) shall have effect in relation to premiums payable in connection with the closing of accounts of a member’s business for an underwriting year ending in the year 1988-89 or any subsequent year of assessment; and
subsection (2) shall have effect in relation to premiums payable in connection with the closing of accounts of a member’s business for an underwriting year ending in the year 1985-86, 1986-87 or 1987-88.
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in section 20, at the beginning of subsection (2) there shall be inserted the words “Except as provided by section 450 (underwriters)”;
in section 451, in subsection (1), for paragraph (a) there shall be substituted—;
after that subsection there shall be inserted—; and
in section 452(8), for the words “Case I of Schedule D” there shall be substituted the words “in accordance with section 450” and the words “the investments forming part of the premiums trust fund of the underwriter” shall cease to have effect.
In Schedule 10 to the Taxes Act 1970, in paragraph 7(3), for the words “Case I of Schedule D” there shall be substituted the words “ in accordance with Schedule 16 to Finance Act 1973 ” and the words “the investments forming part of the premiums trust fund of the underwriter” shall cease to have effect.
In section 87 of the Finance Act 1972, at the beginning of subsection (3) there shall be inserted the words “ Except as provided by Schedule 16 to Finance Act 1973 (underwriters) ”.
In Schedule 16 to the Finance Act 1973—
in sub-paragraph (1) of paragraph 17, for paragraph (a) there shall be substituted—
after that sub-paragraph, there shall be inserted—
... subsections (2) to (4) above shall have effect for the years 1986-87 and 1987-88.
If, at the time of the material disposal of a licence, the licence relates to an undeveloped area, then, to the extent that the consideration for the disposal consists of— the value of that consideration shall be treated as nil for the purposes of the Capital Gains Tax Act 1979 (in this section referred to as “the 1979 Act”) and the appropriate legislation relating to capital allowances.
another licence which at that time relates to an undeveloped area or an interest in another such licence, or
an obligation to undertake exploration work or appraisal work in an area which is or forms part of the licensed area in relation to the licence disposed of,
For the purposes of this section a “material disposal” is a disposal (which includes a part disposal) which occurred or occurs before or after the passing of this Act, other than,—
so far as concerns the 1979 Act, a disposal which is made otherwise than by way of a bargain at arm’s length; and
so far as concerns the appropriate legislation relating to capital allowances, a disposal in relation to which Schedule 7 to the Capital Allowances Act 1968 (sales between connected persons etc.) has effect.
If a material disposal of a licence which, at the time of the disposal, relates to an undeveloped area is part of a larger transaction under which one party makes to another material disposals of two or more licences, each of which at the time of the disposal relates to an undeveloped area, the reference in subsection (1)(b) above to the licensed area in relation to the licence disposed of shall be construed as a reference to the totality of the licensed areas in relation to those two or more licences.
Where a claim is made under section 68(5)(b) of the Finance Act 1985 (claims to substitute, for indexation purposes, a 1982 market value for cost on certain disposals between 1st April 1985 and 5th April 1988) for the purpose of computing the indexation allowance on a material disposal of a licence which, at the time of the disposal, relates to an undeveloped area and, accordingly, it is assumed for that purpose that, on 31st March 1982, the licence concerned was sold and immediately reacquired, then, for that purpose, section 34 of the 1979 Act (effect of capital allowances on allowable expenditure) shall apply in relation to any capital allowance— as if the allowance (or, if the accounting period begins before that date, a time-apportioned part of the allowance) were made in respect of expenditure which, on that assumption, was incurred in reacquiring the asset on 31st March 1982.
made in respect of the expenditure actually incurred in providing the licence, and
so made for an accounting period ending on or after 1st April 1982,
“the relevant time” has the meaning given by section 105(1) or, as the case may be, section 106(1) above.
which is a part disposal of the licence in question, and
part but not the whole of the consideration for which falls within paragraph (a) or paragraph (b) of subsection (1) above,
section 35 of the 1979 Act (apportionment of expenditure etc. on part disposals) shall not apply unless the amount or value of the part of the consideration which does not fall within one of those paragraphs is less than the aggregate of the amounts which, if the material disposal were a disposal of the whole of the licence rather than a part disposal, would be—
the relevant allowable expenditure, as defined in section 86 of the Finance Act 1982 (indexation allowance on certain disposals); and
the indexation allowance on the disposal.
Where section 35 of the 1979 Act has effect in relation to such a disposal as is referred to in subsection (5) above, it shall have effect as if, for subsection (2) thereof, there were substituted the following subsection—
In the case of a material disposal— the claim shall be treated also as having effect for the purpose of determining the indexation allowance referred to in sub-paragraph (ii) of subsection (5) above on the notional material disposal of the whole of the licence referred to in that subsection.
which falls within subsection (5) above, and
in respect of which a claim is made under section 68(5)(b) of the Finance Act 1985,
On the disposal of a licence, whether occurring before or after the passing of this Act, relevant qualifying expenditure incurred by the person making the disposal— shall be treated as expenditure falling within section 32(1)(b) of the Capital Gains Tax Act 1979 (enhancement expenditure reflected in the state or nature of the asset at the time of disposal).
in searching for oil anywhere in the licensed area, or
in ascertaining the extent or characteristics of any oil-bearing area the whole or part of which lies in the licensed area or what the reserves of oil of any such oil-bearing area are,
Expenditure incurred as mentioned in subsection (1) above is relevant expenditure if, and only if,—
it is expenditure of a capital nature on scientific research; and
either it was allowed or allowable under section 91 of the Capital Allowances Act 1968 (capital expenditure on scientific research) for a chargeable period which, or the basis year for which, began before the date of the disposal or it would have been so allowable if the trading condition had been fulfilled; and
the disposal is an occasion by virtue of which section 92 of that Act (termination of user of assets representing scientific research expenditure of a capital nature) applies in relation to the expenditure or would apply if the trading condition had been fulfilled and the expenditure had been allowed accordingly.
In subsection (2) above and subsection (4) below, the expression “if the trading condition had been fulfilled” means, in relation to expenditure of a capital nature on scientific research, if, after the expenditure was incurred but before the disposal concerned was made, the person incurring the expenditure had set up and commenced a trade connected with that research; and in subsection (2)(b) above—
“chargeable period” has the same meaning as in section 91 of the Capital Allowances Act 1968; and
“basis year” has the same meaning as in subsection (3)(c) of that section.
Relevant expenditure is qualifying expenditure only to the extent that it does not exceed the trading receipt which, by reason of the disposal,—
is treated as accruing under section 92(2) of the Capital Allowances Act 1968; or
would be treated as so accruing if the trading condition had been fulfilled and the expenditure had been allowed accordingly.
On the disposal of a licence, sections 31 and 34 of the Capital Gains Tax Act 1979 (which include provisions under which set off is given for balancing charges) shall apply in relation to any such trading receipt as is mentioned in subsection (4)(a) above as if it were a balancing charge falling to be made by reference to the disposal.
Where, on the disposal of a licence, subsection (1) above has effect in relation to any relevant qualifying expenditure which had not in fact been allowed or become allowable as mentioned in subsection (2)(b) above,—
no allowance shall be made in respect of that expenditure under section 91 of the Capital Allowances Act 1968; and
no deduction shall be allowed in respect of it under section 92(3) of that Act.
Where, on the disposal of a licence which is a part disposal, subsection (1) above has effect in relation to any relevant qualifying expenditure, then, for the purposes of section 35 of the Capital Gains Tax Act 1979 (part disposals), that expenditure shall be treated as wholly attributable to what is disposed of (and, accordingly, shall not be apportioned as mentioned in that section).
For the purposes of section 62 above, a licence relates to an undeveloped area at any time if—
for no part of the licensed area has consent for development been granted to the licensee by the Secretary of State on or before that time; and
for no part of the licensed area has a programme of development been served on the licensee or approved by the Secretary of State on or before that time.
Subsections (4) and (5) of section 36 of the Finance Act 1983 (meaning of “development”) shall have effect in relation to subsection (1) above as they have effect in relation to subsection (2) of that section.
In relation to a licence under the Petroleum (Production) Act (Northern Ireland) 1964 any reference in subsection (1) above to the Secretary of State shall be construed as a reference to the Department of Economic Development.
In relation to a material disposal, within the meaning of section 62 above, of a licence under which the buyer acquires an interest in the licence only so far as it relates to part of the licensed area, any reference in subsection (1) or subsection (3) of that section or subsection (1) above to the licensed area shall be construed as a reference only to that part of the licensed area to which the buyer’s acquisition relates.
In sections 62 and 63 above and the preceding provisions of this section “oil”, “licence”, “licensee” and, subject to subsection (4) above, “licensed area” have the meaning assigned by section 12(1) of the Oil Taxation Act 1975.
In section 62 above—
“exploration work”, in relation to any area, means work carried out for the purpose of searching for oil anywhere in that area;
“appraisal work”, in relation to any area, means work carried out for the purpose of ascertaining the extent or characteristics of any oil-bearing area the whole or part of which lies in the area concerned or what the reserves of oil of any such oil-bearing area are;
“the appropriate legislation relating to capital allowances” means—
Chapter III of Part I and Part II of the Capital Allowances Act 1968; and
section 55 of and Schedules 13 and 14 to the Finance Act 1986 (new code of allowances for capital expenditure on mineral extraction); and
any reference to section 68(5)(b) of the Finance Act 1985 is a reference to that section as it had effect before the amendment made by Schedule 8 to this Act.
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Subject to the provisions of Schedule 7 to this Act, a company which is incorporated in the United Kingdom shall be regarded for the purposes of the Taxes Acts as resident there; and accordingly, if a different place of residence is given by any rule of law, that place shall no longer be taken into account for those purposes.
For the purposes of the Taxes Acts, a company which— shall be regarded as continuing to be resident in the United Kingdom if it was so regarded for those purposes immediately before it ceased to carry on business or, as the case may be, before any of its activities came under the control of a person exercising functions which, in the United Kingdom, would be exercisable by a liquidator.
is no longer carrying on any business; or
is being wound up outside the United Kingdom,
In this section “the Taxes Acts” has the same meaning as in the Taxes Management Act 1970.
This section and Schedule 7 to this Act shall be deemed to have come into force on 15th March 1988.
In relation to emoluments from employment as a seafarer, sub-paragraph (2) above shall have effect— and for the purposes of this sub-paragraph “employment as a seafarer” means employment consisting of the performance of duties on a ship (or of such duties and of others incidental to them).
This section shall have effect for the year 1988-89 and subsequent years of assessment; but the relevant period and the earlier qualifying period referred to in paragraph 3(2) of Schedule 12 to the Taxes Act 1988 shall not be treated as a single period by virtue of this section if none of the intervening days falls after 5th April 1988.
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Where— any benefit derived by the director or employee from his entitlement shall not be treated as an emolument of his office or employment.
there is an offer to the public of shares in a company at a fixed price or by tender, and
a director or employee (whether of that company or of any other company or person) is entitled by reason of his office or employment to an allocation of the shares, in priority to members of the public, at the fixed price or at the lowest price successfully tendered, and
the conditions set out in subsection (2) below are satisfied,
The conditions referred to in subsection (1) above are—
that the aggregate number of shares that may be allocated as mentioned in subsection (1)(b) above does not exceed 10 per cent. of the shares subject to the offer (including the shares that may be so allocated);
that all the persons entitled to such an allocation are entitled to it on similar terms;
that those persons are not restricted wholly or mainly to persons who are directors or whose remuneration exceeds a particular level.
For the purposes of subsection (2)(b) above the fact that different provision is made for persons according to the levels of their remuneration, the length of their service or similar factors shall not be regarded as meaning that they are not entitled to an allocation on similar terms.
Section 29A(1) of the Capital Gains Tax Act 1979 (assets deemed to be acquired at market value) shall not apply to any acquisition in relation to which subsection (1) above applies.
In this section “director” includes a person who is to be, or has ceased to be, a director and “employee” includes a person who is to be, or has ceased to be, an employee.
This section shall apply to offers made on or after 23rd September 1987.
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In the case of schemes other than savings-related share option schemes, sub-paragraph (1) above does not apply in relation to any terms of a loan making provision about how it is to be repaid or the security to be given for it.
Sub-paragraph (1) above does not apply in relation to any terms of a loan making provision about how it is to be repaid or the security to be given for it.
In section 202(7) of the Taxes Act 1988 (which limits to £120 the deductions attracting relief) for “ £120” there shall be substituted “ £240 ”.
This section shall have effect for the year 1988-89 and subsequent years of assessment.
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Subsection (2) of section 577 of the Taxes Act 1988 (which excepts the entertainment of overseas customers from the general rule that entertainment expenses are not deductible for tax purposes) shall not have effect in relation to entertainment provided on or after 15th March 1988.
Subsection (1) above shall not apply where the expenses incurred or the assets used in providing the entertainment were incurred or used under a contract entered into before 15th March 1988.
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In section 188(4) of the Taxes Act 1988 (tax not chargeable by virtue of section 148 of that Act in respect of the first £25,000 of a payment on termination of office or employment etc.) for “£25,000” there shall be substituted “£30,000”.
Paragraphs 4 to 7 of Schedule 11 to that Act (relief by reduction of tax on next £50,000 of such a payment) shall cease to have effect.
This section shall apply to any payment treated by section 148(4) of that Act as income received on 6th April 1988 or any later date, unless a notice is given in relation to it in accordance with paragraph 12 of that Schedule (payments in pursuance of pre-10th March 1981 obligations).
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In section 17(1) of the Taxes Act 1988 (Schedule C) for paragraph 3 of Schedule C there shall be substituted—
“overseas public revenue dividends” means public revenue dividends payable out of any public revenue other than that of the United Kingdom;
In section 123 of that Act, in paragraph (a) of subsection (3) (Schedule D charge where collecting agents in UK obtain payment of foreign dividends elsewhere than in UK) for the words “elsewhere than in the United Kingdom” there shall be substituted the words and either—.
In section 124 of that Act (interest on quoted Eurobonds) in subsection (5) (which applies, with modifications, section 123(3) to (6)) the following paragraph shall be inserted immediately before paragraph (a)—.
In subsection (6) of that section (definitions)—
in the definition of “recognised clearing system” after the words “system for clearing quoted Eurobonds” there shall be inserted the words “or relevant foreign securities”; and
“relevant foreign securities” means any of the following, that is to say—
Subsections (1) to (4) above shall have effect with respect to payments obtained on behalf of another by a banker or other person after the passing of this Act.
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Subject to subsections (2) and (3) below, this Chapter shall apply where, on or after 26th October 1987, a person acquires shares or an interest in shares in a company in pursuance of a right conferred on him or an opportunity offered to him by reason of his office as a director of, or his employment by, that or any other company.
This Chapter shall not apply in relation to an acquisition by a person who is not chargeable to tax under Case I of Schedule E in respect of the office or employment in question.
This Chapter shall not apply where the acquisition is made in pursuance of an offer to the public.
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The person acquiring the shares or interest in shares shall be chargeable to tax if—
a chargeable event occurs in relation to the shares at a time when he has not ceased to have a beneficial interest in them, and
the shares are shares in a company which was not a dependent subsidiary at the time of the acquisition and is not a dependent subsidiary at the time of the chargeable event.
Subject to subsections (4) and (5) below, any of the following events is a chargeable event in relation to shares in a company for the purposes of this section if it increases, or but for the occurrence of some other event would increase, the value of the shares —
the removal or variation of a restriction to which the shares are subject;
the creation or variation of a right relating to the shares;
the imposition of a restriction on other shares in the company or the variation of a restriction to which such other shares are subject;
the removal or variation of a right relating to other shares in the company.
A charge by virtue of this section shall be a charge under Schedule E, for the year of assessment in which the chargeable event occurs, on the amount by which the value of the shares is increased by the chargeable event or the amount by which it would be increased but for the occurrence of some other event (or, if the interest of the person chargeable is less than full beneficial ownership, on an appropriate part of that amount).
An event is not a chargeable event in relation to shares in a company for the purposes of this section unless the person who acquired the shares or interest has been a director or employee of — at some time during the period of seven years ending with the date on which the event occurs.
that company, or
(if it is different) the company as a director or employee of which he acquired the shares or interest, or
an associated company of a company within paragraph (a) or (b) above,
An event is not a chargeable event for the purposes of this section if it consists of— and any of the conditions in subsection (6) below is satisfied.
the removal of a restriction to which all shares of a class are subject from all those shares,
the variation of such a restriction in the case of all those shares,
the creation of a right relating to all shares of a class,
the variation of such a right in the case of all those shares,
the imposition of a restriction on all shares of a class, or
the removal of a right relating to all shares of a class from all those shares,
The conditions referred to in subsection (5) above are—
that at the time of the event the majority of the company’s shares of the same class as those which, or an interest in which, the person acquired are held otherwise than by or for the benefit of—
directors or employees of the company,
an associated company of the company, or
directors or employees of any such associated company;
that at the time of the event the company is employee-controlled by virtue of holdings of shares of that class;
that at the time of the event the company is a subsidiary which is not a dependent subsidiary and its shares are of a single class.
References in this section to restrictions to which shares are subject, or to rights relating to shares, include references to restrictions imposed or rights conferred by any contract or arrangement or in any other way.
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The person acquiring the shares or interest in shares shall be chargeable to tax if the shares are shares in a company which— and there is a chargeable increase in the value of the shares.
was a dependent subsidiary at the time of the acquisition, or
was not a dependent subsidiary at that time but becomes a dependent subsidiary before the person making the acquisition ceases to have any beneficial interest in the shares,
There is a chargeable increase in the value of shares in a case within subsection (1)(a) above if the value of the shares at the earlier of— exceeds their value at the time of the acquisition.
the expiration of seven years from the time of the acquisition, and
the time when the person making the acquisition ceases to have any beneficial interest in the shares,
Subject to subsection (7) below, there is a chargeable increase in the value of shares in a case within subsection (1)(b) above if the value of the shares at the earlier or earliest of— exceeds their value at the time when the company becomes a dependent subsidiary.
the expiration of seven years from the time when the company becomes a dependent subsidiary, and
the time when the person making the acquisition ceases to have any beneficial interest in the shares, and
if the company ceases to be a dependent subsidiary, the time when it does so,
A charge by virtue of this section shall be a charge under Schedule E, for the year of assessment which includes the end of the period for which the chargeable increase is determined, on an amount equal to that increase (or, if the interest of the person chargeable is less than full beneficial ownership, on an appropriate part of that amount).
Where, in accordance with the terms on which the acquisition was made, the consideration for the acquisition is subsequently increased, the amount chargeable to tax by virtue of this section shall be reduced by an amount equal to the increase in the consideration.
Where, in accordance with those terms, the person making the acquisition subsequently ceases to have a beneficial interest in the shares by a disposal made for a consideration which is less than the value of the shares or his interest in them at the time of the disposal, the amount on which tax is chargeable by virtue of this section shall be reduced so as to be equal to the excess of that consideration over the value of the shares or interest at the time of the acquisition.
In a case within subsection (1)(b) above there is no chargeable increase in the value of shares in a company unless the person who acquired the shares or interest has been a director or employee of— at some time during the period of seven years ending with the time when the company becomes a dependent subsidiary.
that company, or
(if it is different) the company as a director or employee of which he acquired the shares or interest, or
an associated company of a company within paragraph (a) or (b) above,
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Subject to subsections (5) and (6) below, the person acquiring the shares or interest in shares shall be chargeable to tax if he receives a special benefit by virtue of his ownership of or interest in the shares.
A benefit is a “special benefit” for the purposes of subsection (1) above unless—
it is received in respect of all shares of the same class as those which, or an interest in which, the person acquired, and
any of the conditions in subsection (3) below is satisfied.
The conditions referred to in subsection (2) above are—
that when the benefit is received the majority of the company’s shares of the class concerned are held otherwise than by or for the benefit of—
directors or employees of the company,
an associated company of the company, or
directors or employees of any such associated company;
that when the benefit is received the company is employee-controlled by virtue of holdings of shares of the class concerned;
that when the benefit is received the company is a subsidiary which is not a dependent subsidiary and its shares are of a single class.
A charge by virtue of this section shall be a charge under Schedule E, for the year of assessment in which the benefit is received, on an amount equal to the value of the benefit.
Subsection (1) above shall apply only if the person receiving the benefit has been a director or employee of— at some time during the period of seven years ending with the date on which the benefit is received.
the company referred to in that subsection, or
(if it is different) the company as a director or employee of which he acquired the shares or interest, or
an associated company of a company within paragraph (a) or (b) above,
A benefit shall not be chargeable by virtue of this section if it is chargeable to income tax apart from this section.
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Subsection (2) below applies where—
a person has acquired shares or an interest in shares as mentioned in section 77 above (those shares being referred to in subsection (2) below as “the originally-acquired shares”); and
by virtue of his holding of those shares or the interest in them he acquires (whether or not for consideration) additional shares or an interest in additional shares (those shares being referred to in subsection (2) below as “the additional shares”).
Where this subsection applies—
the additional shares or the interest in them shall be treated for the purposes of this Chapter as having been acquired as mentioned in section 77 above and as having been acquired at the same time as the originally-acquired shares or the interest in them;
for the purposes of section 79 above, the additional shares and the originally-acquired shares shall be treated as one holding of shares and the value of the shares comprised in that holding at any time shall be determined accordingly (the value of the originally-acquired shares at the time of acquisition being attributed proportionately to all the shares in the holding); and
for the purposes of that section, any consideration given for the acquisition of the additional shares or the interest in them shall be taken to be an increase falling within subsection (5) of that section in the consideration for the original acquisition.
If, on a person ceasing to have a beneficial interest in any shares, he acquires other shares or an interest in other shares and the circumstances are such that, for the purposes of sections 78 to 81 of the Capital Gains Tax Act 1979 (reorganisations etc.) the shares in which he ceases to have a beneficial interest constitute “original shares” and the other shares constitute a “new holding”—
section 78 of that Act (which equates the original shares and the new holding) shall apply for the purposes of this Chapter; and
if any such consideration is given for the new holding as is mentioned in section 79(1) of that Act, it shall be treated for the purposes of this Chapter as an increase falling within section 79(5) above in the consideration for the shares; and
if any such consideration is received for the disposal of the original shares as is mentioned in section 79(2) of that Act, the consideration shall be apportioned among the shares comprised in the new holding and the amount which, apart from this paragraph, would at any subsequent time be the value of any of those shares shall be taken to be increased by the amount of the consideration apportioned to them.
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For the purposes of this Chapter, where a person acquires shares or an interest in shares in a company in pursuance of a right conferred on him or opportunity offered to him as a person connected with a director or employee of that or any other company, the shares or interest shall be deemed to be acquired by the director or employee.
For the purposes of this Chapter, where a person who acquires shares or an interest in shares disposes of the shares or interest otherwise than by a bargain at arm’s length with a person who is not connected with him, he shall be deemed to continue to have a beneficial interest in the shares until there is a disposal of the shares or interest by such a bargain.
Subsection (2) above shall not apply where shares, or an interest in shares, in a company are disposed of to the company in accordance with the terms on which the acquisition was made.
Where a person who has made an acquisition as mentioned in subsection (1) above receives a benefit in the circumstances described in section 80 above, the benefit shall be treated for the purposes of that section as received by the person deemed by that subsection to have made the acquisition; and where at a time when a person is deemed by subsection (2) above to continue to have a beneficial interest in shares another person receives a benefit in such circumstances, the benefit shall be treated for those purposes as received by him.
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Where in any year of assessment a person acquires shares, or an interest in shares, in a company in the circumstances described in section 77(1) above, that company and (if it is different) the company as a director or employee of which he acquires the shares or interest shall give written particulars of the acquisition to the inspector within 30 days of the end of the year.
Where— the company, and (if it is different) the company as a director or employee of which the person who acquired the shares or an interest in the shares made the acquisition, shall within 60 days give to the inspector written particulars of the event or benefit and of the shares concerned.
there occurs in relation to shares in a company an event which is a chargeable event for the purposes of section 78 above, or
a person receives a special benefit (within the meaning given for the purposes of section 80(1) above) in respect of shares, or an interest in shares, in a company,
Section 85(1) and (2) of the Finance Act 1988
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For the purposes of this Chapter a company which is a subsidiary is a dependent subsidiary throughout a period of account of the company unless—
the whole or substantially the whole of the company’s business during the period of account (taken as a whole) is business carried on with persons who are not members of the same group as the company,
during the period of account either there is no increase in the value of the company as a result of intra-group transactions, or any such increase in value does not exceed 5 per cent. of the value of the company at the beginning of the period (or a proportionately greater or smaller percentage in the case of a period which is longer or shorter than a year),
the directors of the principal company of the group give to the inspector, not later than two years after the end of the period of account, a certificate that in their opinion the conditions mentioned in paragraphs (a) and (b) above are satisfied in relation to the period of account, and
there is attached to the certificate a report addressed to those directors by the auditors of the subsidiary that the auditors—
have enquired into the state of affairs of the company with particular reference to the conditions mentioned in paragraphs (a) and (b) above, and
are not aware of anything to indicate that the opinion expressed by the directors in their certificate is unreasonable in all the circumstances.
For the purposes of subsection (1)(a) above business carried on with any subsidiary of the company concerned shall be treated as carried on with a person who is not a member of the same group as the company unless the whole or substantially the whole of the business of that or any other subsidiary of the company during the company’s period of account (taken as a whole) is carried on with members of the group other than the company and its subsidiaries.
In this section—
“value”, in relation to shares or a benefit, means the amount which the person holding the shares or receiving the benefit might reasonably expect to obtain from a sale in the open market;
“designated area”, “exploration or exploitation activities” and “exploration or exploitation rights” have the same meanings as in section 38 of the Finance Act 1973;
“period of account”, in relation to a company, means the period for which it makes up its accounts;
“principal company” means a company of which another company is a subsidiary and which is not itself a subsidiary of another company.
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In this Chapter, except where the context otherwise requires,— and references to an interest in any shares include references to an interest in the proceeds of sale of part of the shares.
“associated company” has the same meaning as, by virtue of section 416 of the Taxes Act 1988, it has for the purposes of Part XI of that Act;
“shares” includes stock and also includes securities as defined in section 254(1) of the Taxes Act 1988;
For the purposes of this Chapter a company is “employee-controlled” by virtue of shares of a class if —
the majority of the company’s shares of that class (other than any held by or for the benefit of an associated company) are held by or for the benefit of employees or directors of the company or a company controlled by the company, and
those directors and employees are together able as holders of the shares to control the company.
Sections 839 (connected persons) and 840 (control) of the Taxes Act 1988 shall apply for the purposes of this Chapter.
Where a right to acquire shares or an interest in shares in a company is assigned to a person and the right was conferred on some other person by reason of the assignee’s office as a director of, or his employment by, that or any other company, the assignee shall be treated for the purposes of this Chapter as acquiring the shares or interest in pursuance of a right conferred on him by reason of that office or employment.
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Section 138 of the Taxes Act 1988 and section 79 of the Finance Act 1972 shall not apply to an acquisition of shares, or of an interest in shares, made on or after 26th October 1987.
Where— the amount on which tax is chargeable (and the question whether any tax is chargeable) shall be determined by reference to the market value on 26th October 1987 (and for this purpose “market value” has the same meaning as in section 138 of the Taxes Act 1988).
tax is chargeable by virtue of section 138(1)(a) of the Taxes Act 1988 or section 79(4) of the Finance Act 1972 by reference to the market value, after 26th October 1987, of shares in a company which is not a dependent subsidiary on that date, and (b) that market value is greater than the market value of the shares on 26th October 1987,
Subject to subsection (4) below, this Chapter, with the omission of sections 79 and 80, shall have effect where shares, or an interest in shares, in a company which is not a dependent subsidiary on 26th October 1987 have been acquired before that date as it has effect (apart from this section) where shares or an interest in shares are acquired on or after that date.
In relation to shares which were, or an interest in which was, acquired before 26th October 1987 the removal or variation of a restriction to which the shares are subject shall not be a chargeable event for the purposes of section 78 above if, because of paragraph 7 of Schedule 8 to the Finance Act 1973, the restriction would not have been regarded as one to which the shares were subject for the purposes of section 79(2)(c) of the Finance Act 1972.
In relation to acquisitions of shares or interests in shares on or after 26th October 1987— there shall be substituted the words “ section 78 or 79 of the Finance Act 1988 in respect of the shares ”.
for the words from “section 138(1)(a)” to “value of the shares” in ... section 186(2)(b) (approved profit sharing schemes) of the Taxes Act 1988, and
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section 53(3)(b) of the Finance Act 1978 (approved profit sharing schemes),
section 47(1)(b) of the Finance Act 1980 (savings-related share option schemes), and
section 38(3)(a) of the Finance Act 1984 (approved share option schemes),
At the end of section 4 of the Capital Allowances Act 1968 (writing off of expenditure and meaning of “residue of expenditure”) there shall be added—
This section shall have effect in relation to sales occurring after the passing of this Act.
Paragraph 4 of Schedule 7 to the Capital Allowances Act 1968 (sales without change of control) shall be amended as follows.
In paragraph (1), for the words “by notice in writing to the inspector so elect” there shall be substituted the words “so elect by notice in writing given to the inspector not later than two years after the sale”.
All such assessments and adjustments of assessments shall be made as may be necessary to give effect to this paragraph.
This section shall have effect in relation to sales occurring after the passing of this Act.
For paragraph 13 of Schedule 8 to the Finance Act 1971 (successions to trades between connected persons) there shall be substituted—
This section shall have effect in relation to successions occurring after the passing of this Act.
In the following enactments, namely— for the words “sports stadium” and the word “stadium”, in each place where they occur, there shall be substituted the words “sports ground”.
section 49 of the Finance (No. 2) Act 1975 (expenditure on safety at sports stadia); and
section 40 of the Finance Act 1978 (capital allowances: sports stadia),
This section shall be deemed to have come into force on 1st January 1988.
Section 71 of the Finance Act 1980 (expenditure in altering or replacing quarantine premises) shall cease to have effect.
Nothing in subsection (1) above applies to expenditure which—
is incurred after 15th March 1988 and before 1st April 1989; and
consists of the payment of sums under a contract entered into on or before 15th March 1988 by the person incurring the expenditure.
Subsection (1) above shall be deemed to have come into force on 16th March 1988.
In relation to any capital expenditure which— Schedule 12 to the Finance Act 1982 (capital allowances for dwelling-houses let on assured tenancies) shall have effect, after the coming into force of Part I of the Housing Act 1988, as if any qualifying tenancy of the dwelling-house were an assured tenancy within the meaning of section 56 of the Housing Act 1980.
is expenditure on the construction of a building which is or includes a dwelling-house; and
is expenditure to which subsection (2) or (3) below applies,
This subsection applies to any expenditure incurred— if it is incurred before 15th March 1988 or consists of the payment of sums under a contract entered into before that date.
by an approved company; or
by a person who sells or sold the relevant interest in the building to an approved company before any of the dwelling-houses comprised in it are or were used,
This subsection applies to any expenditure incurred before 1st April 1992 by an approved company which, before 15th March 1988, bought or contracted to buy the relevant interest in the building.
For the purposes of this section, “qualifying tenancy” means a tenancy (whenever created) which for the purposes of the Housing Act 1988 is an assured tenancy other than an assured shorthold tenancy.
In this section— and paragraph 10 of that Schedule (expenditure on repair of buildings) shall apply for the purposes of this section as it applies for the purposes of that Schedule.
“approved company” means a company which was on 15th March 1988 an approved body; and
expressions which are also used in Schedule 12 to the Finance Act 1982 have the same meanings as in that Schedule;
This section applies to a disposal on or after 6th April 1988 of an asset which was held on 31st March 1982 by the person making the disposal.
Subject to the following provisions of this section, in computing for the purpose of capital gains tax the gain or loss accruing on the disposal it shall be assumed that the asset was on 31st March 1982 sold by the person making the disposal, and immediately re-acquired by him, at its market value on that date.
Subject to subsection (5) below, subsection (2) above shall not apply to a disposal—
where a gain would accrue on the disposal to the person making the disposal if that subsection did apply, and either a smaller gain or a loss would so accrue if it did not,
where a loss would so accrue if that subsection did apply, and either a smaller loss or a gain would accrue if it did not,
where, either on the facts of the case or by virtue of Schedule 5 to the Capital Gains Tax Act 1979, neither a gain nor a loss would accrue if that subsection did not apply, or
where neither a gain nor a loss would accrue by virtue of any of the specified enactments.
Where in the case of a disposal of an asset— it shall be assumed in relation to the disposal that the asset 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.
the effect of subsection (2) above would be to substitute a loss for a gain or a gain for a loss, but
the application of subsection (2) is excluded by subsection (3),
If a person so elects, disposals made by him (including any made by him before the election) shall fall outside subsection (3) above (so that subsection (2) above is not excluded by that subsection).
An election by a person under subsection (5) above shall be irrevocable and shall be made by notice in writing to the inspector at any time before 6th April 1990 or at any time during the period beginning with the day of the first relevant disposal and ending— and “the first relevant disposal” means the first disposal to which this section applies which is made by the person making the election.
two years after the end of the year of assessment or accounting period in which the disposal is made, or
at such later time as the Board may allow;
An election made by a person under subsection (5) above in one capacity does not cover disposals made by him in another capacity.
All such adjustments shall be made, whether by way of discharge or repayment of tax, the making of assessments or otherwise, as are required to give effect to an election under subsection (5) above.
Schedule 8 to this Act (which contains provisions supplementary to this section) shall have effect; and in subsection (3)(d) above “specified enactments” means the enactments specified in paragraph 1(3) of that Schedule.
Subject to the provisions of this section and sections 99 and 100 below, the rate of capital gains tax in respect of gains accruing to a person in a year of assessment shall be equivalent to the basic rate of income tax for the year.
If income tax is chargeable at the higher rate in respect of any part of the income of an individual for a year of assessment, the rate of capital gains tax in respect of gains accruing to him in the year shall be equivalent to the higher rate.
If no income tax is chargeable at the higher rate in respect of the income of an individual for a year of assessment, but the amount on which he is chargeable to capital gains tax exceeds the unused part of his basic rate band, the rate of capital gains tax on the excess shall be equivalent to the higher rate of income tax for the year.
The reference in subsection (3) above to the unused part of an individual’s basic rate band is a reference to the amount by which the basic rate limit exceeds his total income (as reduced by any deductions made in accordance with the Income Tax Acts).
Where — the rate of capital gains tax on her chargeable amount or that part of it shall be equivalent to the higher rate.
gains accrue to a woman in a year of assessment during which she is a married woman living with her husband, and
if her chargeable amount were added to, and constituted the highest part of, her husband’s chargeable amount for the year, capital gains tax would be chargeable on it or any part of it at a rate equivalent to the higher rate of income tax for the year,
For the purposes of this section a person’s chargeable amount for a year of assessment is the amount on which he is (or would apart from section 45 of the Capital Gains Tax Act 1979 be) chargeable to capital gains tax for the year.
In relation to a year of assessment for which an application under section 45(2) of the Capital Gains Tax Act 1979 (separate assessment) has effect, the amounts of tax payable by the husband and by the wife shall be determined by—
aggregating the amounts that would be payable by each of them apart from this subsection, and
dividing that aggregate between them in proportion to their chargeable amounts for the year.
This section shall apply in relation to a part of a year of assessment, being a part beginning with 6th April, as it applies in relation to a whole year (except that references to a husband’s chargeable amount are references to his chargeable amount for the whole year).
This section shall have effect for the years 1988-89 and 1989-90 only.
The rate of capital gains tax in respect of gains accruing to trustees of an accumulation or discretionary settlement in a year of assessment shall be equivalent to the sum of the basic and additional rates of income tax for the year.
For the purposes of subsection (1) above a trust is an accumulation or discretionary settlement where—
all or any part of the income arising to the trustees in the year of assessment is income to which section 686 of the Taxes Act 1988 (liability to income tax at the additional rate) applies, or
all the income arising to the trustees in the year of assessment is treated as the income of the settlor, but that section would apply to it if it were not so treated, or
all the income arising to the trustees in the year of assessment is applied in defraying expenses of the trustees in that year, but that section would apply to it if it were not so applied, or
no income arises to the trustees in the year of assessment, but that section would apply if there were income arising to the trustees and none of it were treated as the income of the settlor or applied as mentioned in paragraph (c) above.
References in section 98 above to income tax chargeable at the higher rate include references to tax chargeable by virtue of section 683(1) or 684(1) of the Taxes Act 1988 (settlements) in respect of excess liability (that is, liability to income tax over what it would be if all income tax were charged at the basic rate to the exclusion of any higher rate); and where for any year of assessment income is treated by virtue of either of those provisions as the income of a person for the purposes of excess liability then, whether or not he is chargeable to tax otherwise than at the basic rate, it shall also be treated as his income for the purposes of section 98(4) above.
Where for any year of assessment— section 98(4) above shall have effect as if his income for the year were reduced by that amount.
by virtue of section 427(4) of the Taxes Act 1988 (apportionment of close company income) an amount is deemed not to form part of a person’s income for the purposes of excess liability,
by virtue of section 549(2) of that Act (gains under life policy or life annuity contract) a deduction of an amount is made from a person’s total income for those purposes,
by virtue of section 683(1) or 684(1) of that Act an amount of a person’s income is treated as not being his income for those purposes, or
by virtue of section 699(1) of that Act (income accruing before death) the residuary income of an estate is treated as reduced so as to reduce a person’s income by any amount for the purposes of excess liability,
Where by virtue of section 547(1)(a) of that Act (gains from insurance policies etc.) a person’s total income for a year of assessment is deemed to include any amount or amounts—
section 98(4) above shall have effect as if his total income included not the whole of the amount or amounts concerned but only the appropriate fraction within the meaning of section 550(3), and
if relief is given under section 550 of that Act and the calculation required by section 550(2)(b) does not involve the higher rate of income tax, section 98(2) and (3) above shall have effect as if no income tax were chargeable at the higher rate in respect of his income.
Nothing in subsection (1) above shall be taken to reduce, and nothing in subsections (2) and (3) above shall be taken to increase, the amount of the deduction which a person is entitled to make from his total income by virtue of any provision of Chapter 1 of Part VII of the Taxes Act 1988 which limits any allowance by reference to the level of his total income.
In the Capital Gains Tax Act 1979 — shall cease to have effect.
section 4(2) (losses of one spouse deductible from gains of other),
section 45 (assessment and charge of wife’s gains on husband), and
paragraphs 2 and 3 of Schedule 1 (special rules for annual exemption in case of married couple),
Subsection (1) above shall have effect in relation to the year 1990-91 and subsequent years of assessment.
Where— it shall be assessed not on the claimant (or his personal representatives) but on the person to whom the gains accrued (or her personal representatives).
a claim under section 13 of the Capital Gains Tax Act 1979 (enforced delay in remitting gains from disposals of foreign assets) is made by a man in respect of chargeable gains accruing to his wife before 6th April 1990, and
by virtue of that section the amount of the gains falls to be assessed to capital gains tax as if it were an amount of gains accruing in the year 1990-91 or a subsequent year of assessment,
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to have disposed of all its assets, other than assets excepted from this subsection by subsection (4) below, immediately before the relevant time; and
immediately to have reacquired them,
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has disposed of the old assets, or of its interest in those assets, before the relevant time; and
acquires the new assets, or its interest in those assets, after that time,
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any assets which, immediately after the relevant time, are situated in the United Kingdom and are used in or for the purposes of the trade, or are used or held for the purposes of the branch or agency, shall be excepted from subsection (2) above; and
any new assets which, after that time, are so situated and are so used or so held shall be excepted from subsection (3) above;
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“branch or agency” has the same meaning as in the Capital Gains Tax Act 1979;
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an application for a Treasury consent made before the date of the coming into force of this section; or
such a consent granted on an application so made.
This section and sections 106 and 107 below shall be deemed to have come into force on 15th March 1988.
This section and section 107 below apply to a company if, at any time (“the relevant time”), the company, while continuing to be resident in the United Kingdom, becomes a company which falls to be regarded for the purposes of any double taxation relief arrangements—
as resident in a territory outside the United Kingdom; and
as not liable in the United Kingdom to tax on gains arising on disposals of assets of descriptions specified in the arrangements (“prescribed assets”).
The company shall be deemed for all purposes of the Capital Gains Tax Act 1979— at their market value at that time.
to have disposed of all its prescribed assets immediately before the relevant time; and
immediately to have reacquired them,
Section 115 of the Capital Gains Tax Act 1979 (roll-over relief) shall not apply where the new assets are prescribed assets and the company—
has disposed of the old assets, or of its interest in those assets, before the relevant time; and
acquires the new assets, or its interest in those assets, after that time.
In this section—
“double taxation relief arrangements” means arrangements having effect by virtue of section 497 of the Taxes Act 1970 or section 788 of the Taxes Act 1988 (as extended, in either case, to capital gains tax by section 10 of the Capital Gains Tax Act 1979);
Paragraph 13 of Schedule 1 . . .to the Betting and Gaming Duties Act 1981 shall . . .be amended as follows—
If— the Capital Gains Tax Act 1979 shall have effect in accordance with the following provisions.
immediately after the relevant time, a company to which this section applies by virtue of section 105 or 106 above (“the company”) is a 75 per cent. subsidiary of another company (“the principal company”) which is resident in the United Kingdom; and
the principal company and the company so elect, by notice in writing given to the inspector within two years after that time,
Any allowable losses accruing to the company on a deemed disposal of foreign assets shall be set off against the chargeable gains so accruing and—
that disposal shall be treated as giving rise to a single chargeable gain equal to the aggregate of those gains after deducting the aggregate of those losses; and
the whole of that gain shall be treated as not accruing to the company on that disposal but an equivalent amount (“the postponed gain”) shall be brought into account in accordance with subsections (3) and (4) below.
If at any time within six years after the relevant time the company disposes of any assets (“relevant assets”) the chargeable gains on which were taken into account in arriving at the postponed gain, there shall be deemed to accrue to the principal company as a chargeable gain on that occasion the whole or the appropriate proportion of the postponed gain so far as not already taken into account under this subsection or subsection (4) below. In this subsection “the appropriate proportion” means the proportion which the chargeable gain taken into account in arriving at the postponed gain in respect of the part of the relevant assets disposed of bears to the aggregate of the chargeable gains so taken into account in respect of the relevant assets held immediately before the time of the disposal.
If at any time after the relevant time— there shall be deemed to accrue to the principal company as a chargeable gain on that occasion the whole of the postponed gain so far as not already taken into account under this subsection or subsection (3) above.
the company ceases to be a 75 per cent. subsidiary of the principal company on the disposal by the principal company of ordinary shares of the company;
after the company has ceased to be such a subsidiary otherwise than on such a disposal, the principal company disposes of such shares; or
the principal company ceases to be resident in the United Kingdom,
If at any time— then, if and to the extent that the principal company and the company so elect by notice in writing given to the inspector within two years after that time, those losses shall be allowed as a deduction from that gain.
the company has allowable losses which have not been allowed as a deduction from chargeable gains; and
a chargeable gain accrues to the principal company under subsection (3) or (4) above,
In this section—
“foreign assets” means any assets of the company which, immediately after the relevant time, are situated outside the United Kingdom and are used in or for the purposes of a trade carried on outside the United Kingdom;
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before paragraph (a) of subsection (1) there shall be inserted—;
for paragraph (c) of that subsection there shall be substituted—; and
after that subsection there shall be inserted—
The repeal by the Finance (No. 2) Act 1987 of section 93 of the Finance Act 1972 shall be treated as not having extended to subsection (6) of that section (amendment of definition of “investment trust” in section 359 of the Taxes Act 1970).
For section 266(4) of the M3Companies Act 1985 there shall be substituted—
For the purposes of this section a company is a 75 per cent. subsidiary of another company if and so long as not less than 75 per cent. of its ordinary share capital is owned directly by that other company.
and for the purposes of this sub-paragraph “the appropriate percentage” is a percentage
In sub-paragraph (1) above “the gains qualifying for relief” means, in relation to any qualifying disposal, so much of the gains accruing on that disposal (aggregated under paragraph 6, 7(1)(a) or 8(1)(a) above) as would, by virtue of this Schedule, not be chargeable gains if—
In paragraph 15 of that Schedule (limit on relief available on later disposal where relief given on earlier disposal) in sub-paragraph (2) (definition of later and earlier disposals) for the words “In sub-paragraph (3) below” there shall be substituted the words “In the following provisions of this paragraph”.
In sub-paragraph (3)(a) of that paragraph, for the words “if the qualifying period appropriate to that disposal” there shall be substituted—.
Where there is only one earlier disposal, or where there are two or more such disposals but none of them took place on or after 6th April 1988, then, for the purposes of sub-paragraph (3)(a)(i) above— Where there are two or more earlier disposals and at least one of them took place on or after 6th April 1988, then, for the purposes of sub-paragraph (3)(a)(i) above, the aggregate amount of the underlying gains relieved on all those disposals shall be determined as follows— In this paragraph “the gains qualifying for relief” has the meaning given by paragraph 13(1A) above.
In sub-paragraph (4) of that paragraph (cases where relief on earlier disposal given under certain former enactments) for the words from the beginning of paragraph (b) to “the qualifying period appropriate to the disposal is” there shall be substituted the words—.
In paragraph 16 of that Schedule (aggregation of spouse’s interest in the business)—
in sub-paragraph (3), for the words “whichever is the lower of the two limits” there shall be substituted the words “the limit”;
in sub-paragraph (4), for the words “limits” and “are” there shall be substituted the words “limit” and “is” (respectively) and paragraph (a) shall be omitted; and
sub-paragraph (5) shall be omitted.
This section shall have effect with respect to qualifying disposals (within the meaning of that Schedule) occurring on or after 6th April 1988.
Section 105 of the Capital Gains Tax Act 1979 shall not apply to disposals on or after 6th April 1988.
Subsection (1) above shall not have effect where, on 5th April 1988 or at any earlier time during the period of ownership of the individual making the disposal, the dwelling-house or part in question was the sole residence (provided rent-free and without any other consideration) of a dependent relative of his.
If in a case within subsection (2) above the dwelling-house or part ceases, whether before 6th April 1988 or later, to be the sole residence (provided as mentioned above) of the dependent relative, any subsequent period of residence beginning on or after that date by that or any other dependent relative shall be disregarded for the purposes of section 105(2) of the Capital Gains Tax Act 1979.
In section 118 of the Capital Gains Tax Act 1979 (classes of assets for the purposes of roll-over relief)—
after Class 2 there shall be inserted—, and
after Class 3 there shall be inserted—
Subsection (1)(a) above shall apply where the disposal of the old assets (or an interest in them) or the acquisition of the new assets (or an interest in them) takes place on or after 28th July 1987; and subsection (1)(b) above shall apply where the disposal of the old assets (or an interest in them) or the acquisition of the new assets (or an interest in them) takes place on or after 30th October 1987.
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—
shares in a building society within the meaning of the Building Societies Act 1986, or
shares in a registered industrial and provident society as defined in section 486 of the Taxes Act 1988.
The provisions referred to in subsection (1) above 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.
This section shall apply to disposals on or after 4th July 1987.
In section 273 of the Taxes Act 1970 (which treats certain intra-group transactions as producing neither a gain nor a loss) after subsection (2) there shall be inserted—
This section shall apply to transactions on or after 15th March 1988.
and for Article 274(4) of the Companies (Northern Ireland) Order 1986 there shall be substituted—
... subsection (2) above shall have effect for companies’ accounting periods ending on or before that date.
In relation to disposals on or after 6th April 1988 section 68 of the Finance Act 1985 (indexation allowance) shall have effect subject to the following amendments.
The following subsection shall be inserted after subsection (5)—
In subsection (7) for the words from “section 267” to “1983” there shall be substituted “any of the enactments specified in subsection (7A) below”.
The following subsection shall be inserted after that subsection—
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Section 29 of the Taxes Management Act 1970 (assessment procedure) shall have effect subject to the following amendments.
In subsection (1), after paragraph (b) there shall be added—
After subsection (1) there shall be inserted—
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For section 7 of the Taxes Management Act 1970 there shall be substituted—
This section has effect with respect to notices required to be given for the year 1988-89 or any subsequent year of assessment.
For section 10 of the Taxes Management Act 1970 there shall be substituted—
This section has effect with respect to notices required to be given in respect of accounting periods ending after 31st March 1989.
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Immediately before section 12 of the Taxes Management Act 1970 there shall be inserted—
For subsection (1) of section 12 of that Act (information about chargeable gains) there shall be substituted—
This section has effect with respect to notices required to be given for the year 1988-89 or any subsequent year of assessment.
At the end of section 13 of the Taxes Management Act 1970 (returns by persons in receipt of taxable income belonging to others) there shall be added—
In section 17(1) of that Act (interest paid or credited by banks etc. without deduction of income tax) after the words “during a year” there shall be inserted the words “ of assessment ”.
In section 18 of that Act (particulars of interest paid without deduction of income tax) after subsection (3) there shall be inserted—
At the end of section 19 of that Act (information for the purposes of Schedule A etc.) there shall be added—
This section has effect with respect to notices given after the passing of this Act.
At the end of section 16 of the Taxes Management Act 1970 (fees, commissions etc.) there shall be added—
This section has effect with respect to payments made in the year 1988-89 or any subsequent year of assessment.
After section 18 of the Taxes Management Act 1970 there shall be inserted—
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In subsection (4)(b) of section 20 of the Taxes Management Act 1970 (persons who may be required to produce documents relating to liability of taxpayer arising from business), for the words from “and any company” onwards there shall be substituted the words “any company, whether carrying on a business or not, and the Director of Savings”.
In subsection (7) of that section, for the words “this section”, in the first place where they occur, there shall be substituted the words “subsection (1) or (3) above”.
After subsection (8) of that section there shall be inserted—
In section 20B of that Act—
in subsection (1), for the words “section 20(1) or (3)” there shall be substituted the words “section 20(1), (3) or (8A)” and for the words “section 20(7)” there shall be substituted the words “section 20(7) or (8A)”; and
in subsections (2), (4), (8) and (9), after the words “section 20(3)”, in each place where they occur, there shall be inserted the words “or (8A)”.
In consequence of the amendment made by subsection (1) above, at the end of section 12(3) of the National Savings Bank Act 1971 (provisions which override prohibition on disclosure of information) there shall be added the words “and of section 20(4)(b) of that Act (persons who may be required to produce documents relating to liability of taxpayer arising from business)”.
The amendments made by this section have effect with respect to notices given after the passing of this Act.
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Any provision made by or under the Taxes Acts which requires a person—
to produce, furnish or deliver any document or cause any document to be produced, furnished or delivered; or
to permit the Board, or an inspector or other officer of the Board— shall have effect as if any reference in that provision to a document were a reference to a document within the meaning of Part I of the Civil Evidence Act 1968; and, accordingly, any reference in such a provision to a copy of a document shall be construed in accordance with section 10(2) of that Act.
to inspect any document, or
to make or take extracts from or copies of or remove any document,
In connection with tax, a person authorised by the Board to exercise the powers conferred by this subsection—
shall be entitled at any reasonable time to have access to, and inspect and check the operation of, any computer and any associated apparatus or material which is or has been in use in connection with any document to which this subsection applies; and
may require— to afford him such reasonable assistance as he may require for the purposes of paragraph (a) above.
the person by whom or on whose behalf the computer is or has been so used, or
any person having charge of, or otherwise concerned with the operation of, the computer, apparatus, or material,
Subsection (2) above applies to any document, within the meaning of Part I of the Civil Evidence Act 1968, which a person is or may be required by or under any provision of the Taxes Acts—
to produce, furnish or deliver, or cause to be produced, furnished or delivered; or
to permit the Board, or an inspector or other officer of the Board, to inspect, make or take extracts from or copies of or remove.
Any person who— shall be liable to a penalty not exceeding £500.
obstructs a person authorised under subsection (2) above in the exercise of his powers under paragraph (a) of that subsection, or
fails to comply within a reasonable time with a requirement under paragraph (b) of that subsection,
In the application of this section to Scotland and Northern Ireland, references in this section to Part I of the Civil Evidence Act 1968 and section 10(2) of that Act shall be construed—
in the case of Scotland, as references to Part III of the Law Reform (Miscellaneous Provisions) (Scotland) Act 1968 and section 17(4) of that Act respectively; and
in the case of Northern Ireland, as references to Part I of the Civil Evidence Act (Northern Ireland) 1971 and section 6(2) of that Act respectively.
This section shall be construed as if it were contained in the Taxes Management Act 1970.
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In subsection (2) of section 203 of the Taxes Act 1988 (pay as you earn), for paragraph (d) there shall be substituted—.
At the end of that section there shall be added—
After section 97 of the Taxes Management Act 1970 there shall be inserted—
Section 97A(a) of that Act has effect with respect to the year1988-89 or any subsequent year of assessment; and section 97A(b) has effect with respect to accounting periods ending after 31st March 1989.
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The requirements of subsections (2) and (3) below must be satisfied before a company ceases to be resident in the United Kingdom otherwise than in pursuance of a Treasury consent.
The requirements of this subsection are satisfied if the company gives to the Board—
notice of its intention to cease to be resident in the United Kingdom, specifying the time (“the relevant time”) when it intends so to cease;
a statement of the amount which, in its opinion, is the amount of the tax which is or will be payable by it in respect of periods beginning before that time; and
particulars of the arrangements which it proposes to make for securing the payment of that tax.
The requirements of this subsection are satisfied if—
arrangements are made by the company for securing the payment of the tax which is or will be payable by it in respect of periods beginning before the relevant time; and
those arrangements as so made are approved by the Board for the purposes of this subsection.
If any question arises as to the amount which should be regarded for the purposes of subsection (3) above as the amount of the tax which is or will be payable by the company in respect of periods beginning before the relevant time, that question shall be referred to the Special Commissioners, whose decision shall be final.
If any information furnished by the company for the purpose of securing the approval of the Board under subsection (3) above does not fully and accurately disclose all facts and considerations material for the decision of the Board under that subsection, any resulting approval of the Board shall be void.
In this section “Treasury consent” means a consent under section 765 of the Taxes Act 1988 (restrictions on the migration etc. of companies) given for the purposes of subsection (1)(a) of that section.
In this section and sections 131 and 132 below any reference to the tax payable by a company includes a reference to—
any amount of tax which it is liable to pay under regulations made under section 203 of the Taxes Act 1988 (PAYE);
any income tax which it is liable to pay in respect of payments to which section 350(4)(a) of that Act (company payments which are not distributions) applies;
any amount representing income tax which it is liable to pay under—
regulations made under section 476(1) of that Act (building societies);
section 479 of that Act (interest paid on deposits with banks etc.); or
section 555 of that Act (entertainers and sportsmen);
any amount which it is liable to pay under section 559(4) of that Act (sub-contractors in the construction industry); and
any amount which it is liable to pay under paragraph 4 of Schedule 15 to Finance Act 1973 (territorial extension of charge of tax).
In this section and section 132 below any reference to the tax payable by a company in respect of periods beginning before any particular time includes a reference to any interest on the tax so payable, or on tax paid by it in respect of such periods, which it is liable to pay in respect of periods beginning before or after that time.
In this section and sections 131 and 132 below any reference to a provision of the Taxes Act 1988 shall be construed, in relation to any time before 6th April 1988, as a reference to the corresponding enactment repealed by that Act.
This section and sections 131 and 132 below shall be deemed to have come into force on 15th March 1988.
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If a company fails to comply with section 130 above at any time, it shall be liable to a penalty not exceeding the amount of tax which is or will be payable by it in respect of periods beginning before that time and which has not been paid at that time.
If, in relation to a company (“the migrating company”), any person does or is party to the doing of any act which to his knowledge amounts to or results in, or forms part of a series of acts which together amount to or result in, or will amount to or result in, the migrating company failing to comply with section 130 above at any time and either— that person shall be liable to a penalty not exceeding the amount of tax which is or will be payable by the migrating company in respect of periods beginning before that time and which has not been paid at that time.
that person is a person to whom subsection (3) below applies; or
the act in question is a direction or instruction given (otherwise than by way of advice given by a person acting in a professional capacity) to persons to whom that subsection applies,
This subsection applies to the following persons, namely—
any company which has control of the migrating company; and
any person who is a director of the migrating company or of a company which has control of the migrating company.
In any proceedings against any person to whom subsection (3) above applies for the recovery of a penalty under subsection (2) above—
it shall be presumed that he was party to every act of the migrating company unless he proves that it was done without his consent or connivance; and
it shall, unless the contrary is proved, be presumed that any act which in fact amounted to or resulted in, or formed part of a series of acts which together amounted to or resulted in, or would amount to or result in, the migrating company failing to comply with section 130 above was to his knowledge such an act.
References in this section to a company failing to comply with section 130 above are references to the requirements of subsections (2) and (3) of that section not being satisfied before the company ceases to be resident in the United Kingdom otherwise than in pursuance of a Treasury consent; and in this subsection “Treasury consent” has the same meaning as in that section.
In this section and section 132 below “director”, in relation to a company— and any reference to a person having control of a company shall be construed in accordance with section 416 of that Act.
has the meaning given by subsection (8) of section 168 of the Taxes Act 1988 (read with subsection (9) of that section); and
includes any person falling within subsection (5) of section 417 of that Act (read with subsection (6) of that section);
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This section applies where—
a company (“the migrating company”) ceases to be resident in the United Kingdom at any time; and
any tax which is payable by the migrating company in respect of periods beginning before that time is not paid within six months from the time when it becomes payable.
The Board may, at any time before the end of the period of three years beginning with the time when the amount of the tax is finally determined, serve on any person to whom subsection (3) below applies a notice—
stating particulars of the tax payable, the amount remaining unpaid and the date when it became payable; and
requiring that person to pay that amount within thirty days of the service of the notice.
This subsection applies to the following persons, namely—
any company which is, or within the relevant period was, a member of the same group as the migrating company; and
any person who is, or within the relevant period was, a controlling director of the migrating company or of a company which has, or within that period had, control over the migrating company.
Any amount which a person is required to pay by a notice under this section may be recovered from him as if it were tax due and duly demanded of him; and he may recover any such amount paid by him from the migrating company.
A payment in pursuance of a notice under this section shall not be allowed as a deduction in computing any income, profits or losses for any tax purposes.
In this section—
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After subsection (1) of section 44 of the Taxes Management Act 1970 (General Commissioners) there shall be inserted—
For subsection (2) of that section there shall be substituted—
The amendment made by subsection (1) above shall have effect in relation to proceedings instituted on or after 1st January 1989; and the amendment made by subsection (2) above shall have effect in relation to proceedings instituted after the passing of this Act.
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In section 2 of the Taxes Management Act 1970 (General Commissioners)—
in subsection (1), after the words “who shall act for the same separate areas in Great Britain as heretofore” there shall be inserted the words “or for the separate areas in Northern Ireland defined by an order made by the Lord Chancellor”, and
in subsection (2), after the words “England and Wales” there shall be inserted the words “or Northern Ireland”.
Section 58(1) of that Act (references in Taxes Acts to General Commissioners to be taken in relation to proceedings in Northern Ireland as references to Special Commissioners or, where section 59 applies, a county court) and section 59 of that Act (right in Northern Ireland to bring before a county court certain proceedings which in Great Britain may be brought before General Commissioners) shall cease to have effect.
In sections 260(3) and 281(4) of the Taxes Act 1988 (and the corresponding enactments repealed by that Act) and in section 11(4) of the Taxes Act 1970 (Special Commissioners to act instead of General Commissioners where taxpayers not resident in Great Britain) for the words “Great Britain” there shall be substituted the words “the United Kingdom”.
This section and section 135 below shall come into force on such day as the Lord Chancellor may by order made by statutory instrument appoint.
Subject to the following provisions of this section, the preceding provisions of this section and section 135(2) below shall not affect any proceedings instituted before the day appointed under subsection (4) above.
Subject to subsection (8) below, where— they shall be transferred to the General Commissioners; and subsection (3) of section 58 of the Taxes Management Act 1970 shall apply for the purposes of this subsection as for those of that section (the reference to proceedings in Great Britain being construed accordingly).
before the day appointed under subsection (4) above proceedings in Northern Ireland have been instituted before the Special Commissioners but not determined by them, and
the proceedings might have been instituted before the General Commissioners if they had been proceedings in Great Britain,
Section 44 of that Act shall apply in relation to proceedings transferred to the General Commissioners under subsection (6) above as it applies to proceedings instituted before them; and in the case of an appeal so transferred a notice of election under rule 3 or 5 of Schedule 3 to that Act may be given at any time before the end of the period of thirty days beginning with the day appointed under subsection (4) above.
Subsection (6) above shall not apply in relation to proceedings if— but subsections (5A) to (5E) of section 31 of that Act shall apply in relation to an election under paragraph (a) of this subsection in respect of an appeal against an assessment or the decision of an inspector on a claim as they apply in relation to an election under subsection (4) of that section.
before the end of that period an election that the proceedings be not transferred is made by any of the parties to the proceedings and written notice of the election is given to the other parties to the proceedings, or
they are proceedings under section 100 of the Taxes Management Act 1970 (recovery of penalties);
The Lord Chancellor may by order made by statutory instrument make provision supplementing or modifying the effect of subsections (5) to (8) above; and an order under this subsection shall be subject to annulment in pursuance of a resolution of either House of Parliament.
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In section 58 of the Taxes Management Act 1970 after subsection (2) (cases stated in proceedings in Northern Ireland to be cases for the opinion of the Court of Appeal in Northern Ireland) there shall be inserted—
For subsection (3) of that section there shall be substituted—
Portion of value Rate of tax Lower limit Upper limit Per cent. £ £ 0 110,000 Nil 110,000 40
Subsection (1) above shall apply to any chargeable transfer made on or after 15th March 1988, and section 8(1) of the Inheritance Tax Act 1984 (indexation of rate bands) shall not apply to chargeable transfers made in the year beginning 6th April 1988.
Section 8(1A) of that Act shall cease to have effect.
In section 24(1) of the Inheritance Tax Act 1984 (exemption from tax for gifts to political parties) paragraph (b) (which limits the exemption to £100,000 in respect of gifts on or within one year of the death of the transferor) shall cease to have effect.
This section shall have effect in relation to transfers of value made on or after 15th March 1988.
For every relevant Southern Basin or onshore field, as defined in subsection (2) below, section 8 of the Oil Taxation Act 1975 (the oil allowance) shall have effect subject to the following modifications—
in subsection (2) (the amount of the allowance for each chargeable period) for “250,000 metric tonnes” there shall be substituted “ 125,000 metric tonnes ”; and
in subsection (6) (the total allowance for a field) for “5 million metric tonnes” there shall be substituted “ 25 million metric tonnes ”.
Subject to subsection (3) below, for the purposes of this section a “relevant Southern Basin or onshore field” is any oil field other than one—
which is a relevant new field for the purposes of section 36 of the Finance Act 1983 (increased oil allowance for certain new fields); or
for any part of which consent for development was granted to the licensee by the Secretary of State before 1st April 1982; or
for any part of which a programme of development was served on the licensee or approved by the Secretary of State before that date.
In determining, in accordance with subsection (2) above, whether an oil field (in this subsection referred to as “the field in question”) is a relevant Southern Basin or onshore field, no account shall be taken of a consent for development granted before 1st April 1982 or a programme of development served on the licensee or approved by the Secretary of State before that date if—
in whole or in part that consent or programme related to another oil field for which a determination under Schedule 1 to the Oil Taxation Act 1975 was made before the determination under that Schedule for the field in question; and
on or after 1st April 1982, a consent for development is or was granted or a programme of development is or was served on the licensee or approved by the OGA and that consent or programme relates, in whole or in part, to the field in question.
Subsections (4) and (5) of section 36 of the Finance Act 1983 (which define “development” for the purposes of subsections (2) and (3) of that section) shall apply also for the purposes of subsections (2) and (3) of this section.
This section shall have effect in relation to chargeable periods ending after 30th June 1988.
This section shall be construed as one with Part I of the Oil Taxation Act 1975.
In Part I of Schedule 1 to the Oil Taxation Act 1983 (extensions of allowable expenditure for assets generating receipts) paragraph 3 (expenditure on enhancing the value of assets no longer in use for the principal field) shall be amended as follows—
in sub-paragraph (1)(a) after the words “enhancing the value of” there shall be inserted “ or otherwise in connection with ”;
in sub-paragraph (1)(d) for the words “the expenditure” there shall be substituted “ either the use of the asset ” and after the words “tariff receipts or” there shall be inserted “ the expenditure ”.
This section shall have effect with respect to expenditure incurred on or after 15th March 1988.
The stamp duty chargeable by virtue of the heading in Schedule 1 to the Stamp Act 1891 “Unit Trust Instrument” is abolished; and accordingly that heading and the following enactments, namely— shall cease to have effect.
section 53 of the Finance Act 1946;
section 24 of the Finance (No. 2) Act (Northern Ireland) 1946;
section 30 of the Finance Act 1962; and
section 3 of the Finance Act (Northern Ireland) 1962,
Subsection (1) above shall have effect in relation to—
any trust instrument executed on or after 22nd March 1988;
any trust instrument executed on or after 16th March 1988 which is not stamped before 22nd March 1988;
any property becoming trust property on or after 22nd March 1988; and
any property becoming trust property on or after 16th March 1988 in respect of which the trust instrument is not stamped before 22nd March 1988.
For the purposes of section 14(4) of the Stamp Act 1891 (instruments not to be given in evidence etc. unless stamped in accordance with the law in force at the time of execution), the law in force— shall be deemed to be that as varied in accordance with this section.
at the time of execution of a trust instrument falling within subsection (2)(b) above; or
on the day on which property falling within subsection (2)(d) above becomes trust property,
In this section “trust instrument” and “trust property” have the meanings given by section 57 of the Finance Act 1946 or section 28 of the Finance (No. 2) Act (Northern Ireland) 1946.
This section shall be construed as one with the Stamp Act 1891.
This section shall be deemed to have come into force on 22nd March 1988.
The stamp duties chargeable by virtue of section 47 of the Finance Act 1973 and Article 8 of the Finance (Miscellaneous Provisions) (Northern Ireland) Order 1973 (stamp duties on documents relating to chargeable transactions of capital companies) are abolished; and accordingly— shall cease to have effect.
that section, section 48 of that Act and Schedule 19 to that Act; and
that Article, Article 9 of that Order and Schedule 2 to that Order,
Subsection (1) above shall have effect in relation to—
any transaction occurring on or after 22nd March 1988;
any transaction occurring on or after 16th March 1988 in respect of which the relevant document is not stamped before 22nd March 1988;
any exempt transaction occurring before 22nd March 1988 in respect of which a relevant event occurs on or after 22nd March 1988; and
any exempt transaction occurring before 16th March 1988 in respect of which a relevant event occurs on or after 16th March 1988 and the relevant duty is not paid before 22nd March 1988.
For the purposes of section 14(4) of the Stamp Act 1891 (instruments not to be given in evidence etc. unless stamped in accordance with the law in force at the time of execution), the law in force— shall be deemed to be that as varied in accordance with this section.
in a case falling within subsection (2)(b) above, at the time of execution of the relevant document ; or
in a case falling within subsection (2)(d) above, on the day on which the relevant event occurs,
In this section— and any reference in this subsection to section 47 of or Schedule 19 to that Act includes a reference to Article 8 of or Schedule 2 to the Finance (Miscellaneous Provisions) (Northern Ireland) Order 1973.
This section shall be construed as one with the Stamp Act 1891.
This section shall be deemed to have come into force on 22nd March 1988.
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In section 107 of the Finance Act 1981 (sales at a discount by local authorities etc.) after paragraph (f) of subsection (3) there shall be inserted—
This section applies where —
the articles of association of a company incorporated in the United Kingdom (“the UK company”) and the equivalent instruments governing a company which is not so incorporated (“the foreign company”) each provide that no share in the company to which they relate may be transferred otherwise than as part of a unit comprising one share in that company and one share in the other; and
such units are to be or have been offered for sale to the public in the United Kingdom and, at the same time, an equal number of such units are to be or, as the case may be, have been offered for sale to the public at a broadly equivalent price in the country in which the foreign company is incorporated (“the foreign country”).
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to make such shares available for sale (as part of such units as are referred to in subsection (1) above) in pursuance of either of the offers referred to in subsection (1)(b) above or of any other offer for sale of such units to the public made at the same time and at a broadly equivalent price in a country other than the United Kingdom or the foreign country; or
to give effect to an allotment of such shares (as part of such units) as fully or partly paid bonus shares.
In relation to an instrument to which this subsection applies—
the foreign company shall be treated for the purposes of Schedule 15 to the Finance Act 1999 (stamp duty on bearer instruments) as a UK company, and
for the purposes of sections 59 and 60 of the Finance Act 1963 (which make provision in respect of stamp duty under the heading “Bearer Instrument” in Schedule 1 to the Stamp Act 1891) as a company formed or established in Great Britain; and
for the purposes of sections 8 and 9 of the Finance Act (Northern Ireland) 1963 (which make corresponding provision for Northern Ireland) as a company formed or established in Northern Ireland; and
paragraph 17 of that Schedule (exemption for non-sterling instruments) shall not apply.
Subsection (4) above applies to any bearer instrument issued on or after 9th December 1987 which represents shares in the foreign company, or a right to an allotment of or to subscribe for such shares, and is not issued for the purpose —
of making shares in the foreign company available for sale (as part of such units as are referred to in subsection (1) above) in pursuance of either of the offers referred to in subsection (1)(b) above or of any other offer for sale of such units to the public made at the same time and at a broadly equivalent price in a country other than the United Kingdom or the foreign country; or
of giving effect to an allotment of such shares (as part of such units) as fully or partly paid bonus shares.
In relation to any instrument which transfers such units as are referred to in subsection (1) above and is executed on or after the date of the passing of this Act, the foreign company shall be treated for the purposes of sections 67 and 68 (depositary receipts) and 70 and 71 (clearance services) of the Finance Act 1986 as a company incorporated in the United Kingdom.
Section 3 of the Stamp Act 1891 (which requires every instrument written upon the same piece of material as another instrument to be separately stamped) shall not apply in relation to any bearer instrument issued on or after 9th December 1987 which represents shares in the UK company or the foreign company, or a right to an allotment of or to subscribe for such shares.
This section shall be construed as one with the Stamp Act 1891.
Subsections (2) and (3) above, together with subsection (1) above so far as relating to them, shall be deemed to have come into force on 1st November 1987, and subsections (4), (5) and (7) above, together with subsection (1) above so far as relating to them, shall be deemed to have come into force on 9th December 1987.
Section 99 of the Finance Act 1986 (stamp duty reserve tax: interpretation) shall be amended as follows.
For subsections (3) to (6) there shall be substituted —
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In subsection (10), for paragraph (a) there shall be substituted —.
After subsection (10) there shall be added —
This section applies in relation to — and shall be deemed to have come into force on that date.
agreements to transfer chargeable securities (within the meaning of section 99 of the Finance Act 1986 as amended by this section) made on or after 9th December 1987; and
the transfer, issue or appropriation of such securities, or the issue of securities such as are mentioned in subsection (11) of that section, on or after that date in pursuance of an arrangement such as is mentioned in that subsection (whenever the arrangement was made),
Schedule 12 to this Act (which makes provision in connection with the transfer of a building society’s business to a company in accordance with the Building Societies Act 1986) shall have effect.
The enactments specified in Schedule 13 to this Act shall have effect subject to the amendments specified in that Schedule (being amendments to correct errors in the Taxes Act 1988 and in the amendments made by the Finance Act 1987 for the purposes of the consolidation effected by the Taxes Act 1988).
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.
Part II of this Act shall be construed as one with the Value Added Tax Act 1983.
Part III of this Act, so far as it relates to income tax, shall be construed as one with the Income Tax Acts, so far as it relates to corporation tax, shall be construed as one with the Corporation Tax Acts and, 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 14 to this Act (which include 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 1988.
Section 1.
Description of wine or made-wine Rates of duty per hectolitre £ Wine or made-wine of a strength not exceeding 15 per cent. and not being sparkling 102.40 Sparkling wine or sparkling made-wine of a strength not exceeding 15 per cent. 169.10 Wine or made-wine of a strength exceeding 15 per cent. but not exceeding 18 per cent. 176.60 Wine or made-wine of a strength exceeding 18 per cent. but not exceeding 22 per cent. 203.70 Wine or made-wine of a strength exceeding 22 per cent. 203.70 plus£15.77 for every 1 per cent. or part of 1 per cent. in excess of 22 per cent.
In subsection (2) of section 1 of the Alcoholic Liquor Duties Act 1979 (definition of “spirits”), for the words “subsections (7) and (8)” there shall be substituted the words “subsections (7) to (9)”. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . In subsection (5) of that section (definition of “made-wine”), after the word “means” there shall be inserted the words “subject to subsection (10) below”. After subsection (8) of that section there shall be inserted—
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After subsection (4) of section 54 of that Act (wine: charge of excise duty) there shall be inserted—
After subsection (4) of section 55 of that Act (made-wine: charge of excise duty), there shall be inserted— In subsection (5) of that section, for the words “render any made-wine sparkling” there shall be substituted the words “render sparkling any made-wine other than made-wine to which section 55A below applies”.
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In section 59 of that Act (rendering imported wine or made-wine sparkling in warehouse), for subsection (1) there shall be substituted—
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Section 63 of that Act (repayment of duty on imported cider used in the production of other beverages etc.) shall be renumbered as subsection (1) of that section . . . .
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At the end of subsection (1) of section 73 of that Act (penalty for misdescribing substances as beer), there shall be added the words “or that the substance is made with beer and is a made-wine to which section 55A above applies”.
Wine or made-wine of a strength not exceeding 2 per cent. £ 10.24 Wine or made-wine of a strength exceeding 2 per cent. but not exceeding 3 per cent. 17.07 Wine or made-wine of a strength exceeding 3 per cent. but not exceeding 4 per cent. 23.89 Wine or made-wine of a strength exceeding 4 per cent. but not exceeding 5 per cent. 30.72 Wine or made-wine of a strength exceeding 5 per cent. but not exceeding 5.5 per cent. 37.55 Wine or made-wine of a strength exceeding 5.5 per cent. but not exceeding 15 per cent. and not being sparkling 102.40 Sparkling wine or sparkling made-wine of a strength exceeding 5.5 per cent. but not exceeding 15 per cent. 169.10 Wine or made-wine of a strength exceeding 15 per cent. but not exceeding 18 per cent. 176.60 Wine or made-wine of a strength exceeding 18 per cent. but not exceeding 22 per cent. 203.70 Wine or made-wine of a strength exceeding 22 per cent. 203.70plus £15.77 for every 1 per cent. or part of 1 per cent. in excess of 22 per cent.
Section 4.
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in sub-paragraph (1), in the definition of “goods vehicle”, after the word “means” there shall be inserted the words “subject to sub-paragraph (1A) below”; and
In this Schedule “goods vehicle” does not include a vehicle to which Schedule 4A to this Act applies.
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Section 35.
The Taxes Act 1988 shall have effect subject to the following amendments.
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in subsection (1)(b), for the words “that person” and the word “he”, in both places where it occurs, there shall be substituted the words “income tax”, and
in subsection (2), for the words “a person has been charged with income tax” there shall be substituted the words “income tax has been charged”.
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The section set out in sub-paragraph (2) below shall have effect in substitution for section 262 (widow’s bereavement allowance) in relation to deaths occurring during the year 1989-90, and the section set out in sub-paragraph (3) below shall have effect in substitution for that section in relation to deaths occurring during the year 1990-91 or any subsequent year of assessment. The section first referred to in sub-paragraph (1) above is— . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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For the year 1990-91 and subsequent years of assessment section 266 (life assurance premiums) shall have effect with the substitution—
in subsection (9), of the word “spouse” for the words “wife (but not the husband)”, and
in subsection (11)(a), of the words “spouse, widow, widower or children or other dependants of any such employee or person,” for the word “wife” onwards.
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For the year 1990-91 and subsequent years of assessment section 304 (business expansion scheme: husband and wife) shall have effect— Sub-paragraph (3) below applies where— Where this sub-paragraph applies—
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For the year 1990-91 and subsequent years of assessment section 628(1) (partnership retirement annuities) shall have effect with the substitution of the words “a widow, widower or dependant of the former partner” for the words “ his widow or a dependant of his ”.
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before 6th April 1990, a woman was entitled to the relevant interest, within the meaning of section 11 of the Capital Allowances Act 1968, in relation to expenditure incurred on the construction of a building or structure (whether she was entitled to it when the expenditure was incurred or acquired it afterwards);
for a chargeable period ending before that date, an allowance such as is mentioned in section 3(6) of that Act (allowances relating to capital expenditure on industrial buildings etc.) was made to the woman’s husband in respect of her relevant interest; and
on or after that date, there occurs an event such as is mentioned in section 3(1) of that Act (events giving rise to a balancing allowance or a balancing charge) in respect of which the woman is entitled to all or part of any sale, insurance, salvage or compensation moneys,
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before 6th April 1990, a woman was entitled to the relevant interest, within the meaning of paragraph 3 of Schedule 15 to the Finance Act 1986, in relation to expenditure falling within paragraph 1(1) of that Schedule (expenditure on the construction of agricultural buildings, etc.), whether she was entitled to it when the expenditure was incurred or acquired it afterwards;
for a chargeable period ending before that date, an allowance under paragraph 1(1) of that Schedule (writing-down allowances) was made to the woman’s husband in respect of her relevant interest; and
on or after that date, there occurs an event which is a balancing event for the purposes of that Schedule and in respect of which the woman is entitled to all or part of any sale, insurance, salvage or compensation moneys,
The operation of section 279(1) of the Taxes Act 1988 for a year of assessment earlier than the year 1990-91 in the case of a married woman shall not affect the question whether there is any income of hers chargeable to income tax for the year 1990-91 or any subsequent year of assessment or, if there is, what is to be taken to be its amount for income tax purposes.
Where a man is required under section 8 of the Taxes Management Act 1970 to deliver a return which is— the same particulars shall be included in the return as would have been required had section 279 of the Taxes Act 1988 not been repealed by this Act.
so far as relates to certain sources of income, a return of income chargeable to income tax for the year 1990-91, and
so far as relates to the remaining sources of income, a return of income chargeable to income tax for the year 1989-90,
Where a man delivers a return such as is mentioned in paragraph 26 above, the reference in sections 93(2) and 95(2) of the Taxes Management Act 1970 (penalties) to tax charged on or payable by him shall include a reference to tax charged on or payable by his wife in respect of any income of hers.
Where a woman is liable to a penalty under section 93(1) or 95(1) of the Taxes Management Act 1970, section 93(2) or 95(2) shall apply as if the reference to tax charged on or payable by her included a reference to any tax which is charged on or payable by her husband by virtue of section 279 of the Taxes Act 1988.
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for the purpose of making good to the Crown a loss of tax wholly or partly attributable to fraud, wilful default or neglect, an assessment to income tax has been made on a woman for the year 1990-91 or any subsequent year of assessment, and
the woman’s income for an earlier year was treated as that of her husband by virtue of section 279 of the Taxes Act 1988,
For the year 1990-91 and subsequent years of assessment the Taxes Management Act 1970 shall have effect with the insertion of the following section after section 37—
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Section 36 of this Act shall have effect in relation to a payment which is due from a husband to his wife or from a wife to her husband at a time after 5th April 1990 when they are living together, notwithstanding that the payment is made in pursuance of an obligation which is an existing obligation for the purposes of subsection (3) of that section.
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The modifications of Chapter III of Part VII of the Taxes Act 1988 (relief for investment in new corporate trades: the business expansion scheme) made by section 50 of this Act are as follows.
In subsection (1) of section 289 (relief under the business expansion scheme), for paragraph (a) there shall be substituted— In subsection (8) of that section, for paragraph (a) there shall be substituted— For subsection (9) of that section there shall be substituted— In subsection (12)(b) of that section, for the words from “either” onwards there shall be substituted the words “four years after that date”. Subsection (13) of that section shall be omitted.
In subsection (1) of section 290A (restriction of relief where amounts raised exceed permitted maximum), for “£500,000” there shall be substituted “£5 million”. In subsection (4) of that section, for the words “any trade or part of a trade” there shall be substituted the words “any qualifying activities” and for “£500,000”, in both places, there shall be substituted “£5 million”. Subsections (6) to (8), (10) and (11) of that section shall be omitted.
In section 291 (individuals qualifying for relief), after subsection (1) there shall be inserted—
Section 292 (parallel trades) shall be omitted.
For subsection (2) of section 293 (qualifying companies) there shall be substituted— Subsections (4) and (9) to (11) of that section shall be omitted.
The following shall be omitted, namely—
section 294 (companies with interests in land);
section 295 (valuation of interests in land for purposes of section 294(1)(b)); and
section 296 (section 294 disapplied where amounts raised total £50,000 or more).
The following shall also be omitted, namely—
section 297 (qualifying trades); and
section 298 (provisions supplementary to sections 293 and 297).
In subsection (1) of section 302 (replacement capital), for the words “carry on as its trade or as part of its trade a trade which was” there shall be substituted the words “carry on, as its activities or as part of its activities, activities which were” and for the words “of a trade” there shall be substituted the words “of activities”. In subsection (2) of that section, for the words “the trade”, in each place where they occur, there shall be substituted the words “the activities”. In subsection (4) of that section, for paragraph (a) there shall be substituted— In subsection (5) of that section, the definition of “trade” shall be omitted.
In subsections (2) and (3) of section 306 (claims), for the words “the trade” there shall be substituted the words “the activities”.
For subsection (1) of section 308 (application to subsidiaries) there shall be substituted— A qualifying company may, in the relevant period, have one or more subsidiaries if the subsidiary or, as the case may be, each subsidiary is a subsidiary to which subsection (1A) or (1B) below applies. This subsection applies to a subsidiary if— This subsection applies to a subsidiary if— In subsection (5) of that section, for paragraph (a) there shall be substituted—
In subsection (2) of section 309 (further provisions as to subsidiaries), for the words “a qualifying trade which is” there shall be substituted the words “qualifying activities which are” and for the words “subsections (8), (9), (12)(b)(ii) and (13)” there shall be substituted the words “subsections (8) and (9)”.
Section 50 of this Act does not apply to a dwelling-house the market value of which exceeds— The market value of a dwelling-house at any date (“the valuation date”) shall be taken to be the price which, at the relevant date, it might reasonably have been expected to fetch on a sale in the open market— and in this paragraph “the relevant date” means the date of the issue of the shares or, if later, the date when the company or any of its subsidiaries first acquired an interest in the dwelling-house (or the land which comprises the dwelling-house). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . The assumptions as to title are— In sub-paragraph (4) above “the right to buy legislation” means— and “flat” and “house” have the same meanings as in that legislation. The Treasury may by order amend sub-paragraph (1) above by substituting a different amount for any amount for the time being specified there.
Section 50 of this Act does not apply to—
a dwelling-house in England and Wales which is unfit for human habitation within the meaning of section 604 of the Housing Act 1985 or does not have all the standard amenities within the meaning of section 508 of that Act;
a dwelling-house in Scotland which does not meet the tolerable standard described, for the purposes of the Housing (Scotland) Act 1987, by section 86 of that Act or does not have all the standard amenities described in the first column of Part I of Schedule 18 to that Act; or
a dwelling-house in Northern Ireland which is unfit for human habitation within the meaning of Article 46 of the Housing (Northern Ireland) Order 1981 or does not have all the standard amenities within the meaning of Article 59 of the Housing (Northern Ireland) Order 1983.
Subject to sub-paragraphs (1A) to (1C) below, section 50 of this Act does not apply to a dwelling-house if— Section 50 of this Act is not precluded from applying to a dwelling-house by sub-paragraph (1)(a) above if the arrangements there mentioned were for letting to a person who was an owner-occupier of the dwelling-house before the relevant date. Section 50 of this Act is not precluded from applying to a dwelling-house by sub-paragraph (1)(b) above if the letting there mentioned was to a person— Section 50 of this Act is not precluded from applying to a dwelling-house by sub-paragraph (1)(c) above if the letting there mentioned was to a person— In this paragraph— For the purposes of this paragraph, a person shall be taken to have been an owner-occupier of a dwelling-house before the relevant date or, as the case may be, the date mentioned in sub-paragraph (1B)(a) above if— In the application of sub-paragraph (3) above to a dwelling-house in Scotland— In the application of sub-paragraph (3) above to a dwelling-house in Northern Ireland, any conveyance or assignment of an interest in it by way of mortgage shall be disregarded.
Section 50 of this Act does not apply to a dwelling-house if— The conditions referred to in sub-paragraph (1) above are satisfied in relation to a dwelling-house at any time if, at that time—
Section 50 of this Act does not apply to a dwelling-house in respect of which the company is entitled to capital allowances under paragraph 2 of Schedule 12 to the Finance Act 1982.
In the application of the above provisions of this Part to Scotland, references to acquiring an interest shall be construed, if there is a contract to acquire the interest, as references to entering into that contract and for the purposes of paragraph 16(2)(b) above, a company or subsidiary shall be regarded as owning an interest during the period between its entering into such a contract as regards that interest and its acquiring the interest.
Section 58.
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Section 65.
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but the amendment made by this sub-paragraph shall not apply in relation to land which is being prepared for use for forestry purposes if the requirements of paragraph 4(3) above are satisfied with respect to it. In sections 380(4), 383(12)(a) and 385(6) of the Taxes Act 1988, for the words “section 54” there shall be substituted the words “paragraph 4 of Schedule 6 to the Finance Act 1988”. Sub-paragraphs (1), (4) and (8) above shall be deemed to have come into force on 15th March 1988; and sub-paragraphs (2), (3) and (5) to (7) above shall be deemed to have come into force on 6th April 1988.
Section 66.
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in a case within paragraph 2 below, the amount of the deduction referred to in that paragraph, and
in a case within paragraph 3 below, the amount of the gain referred to in that paragraph,
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a person makes a disposal of an asset which he acquired on or after 31st March 1982, and
the disposal by which he acquired the asset and any previous disposal of the asset on or after 31st March 1982 was a no gain/no loss disposal,
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there is a disposal by a company of a debt on a security owed by any person,
the company and that person are not linked companies immediately before the disposal, and
the debt was incurred by that person as part of arrangements involving another company being put in funds,
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“group” means a company which has one or more 51 per cent. subsidiaries together with that subsidiary or those subsidiaries (section 838 (meaning of 51 per cent. subsidiary) of the Taxes Act 1988 having effect for the purposes of this paragraph as for those of the Tax Acts), and
two companies are associated with each other if one controls the other or both are under the control of the same person or persons (section 416(2) to (6) (meaning of control) of the Taxes Act 1988 having effect for the purposes of this paragraph as for those of Part XI of that Act).
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Section 145.
Paragraphs 3 to 7 below apply where there is a transfer of the whole of a building society’s business to a company (“the successor company”) in accordance with section 97 and the other applicable provisions of the Building Societies Act 1986.
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Where, in connection with the transfer, qualifying benefits are conferred by the society or the successor company on members of the society, the conferring of those benefits shall not be regarded as ...— Sub-paragraph (1) above does not preclude any qualifying benefit (and, in particular, any qualifying benefit which in the hands of the recipient would, apart from that sub-paragraph, constitute income for the purposes of income tax) from being a capital distribution for the purposes of section [122 of the Taxation of Chargeable Gains Act 1992], and in that section “distribution” shall be construed accordingly. In this paragraph “qualifying benefits” means— “Member” has the same meaning in this paragraph as in paragraph 5 above.
Section 702 of the Income Tax (Trading and Other Income) Act 2005 (interest under certified SAYE savings arrangements to be exempt from income tax) shall have effect in relation to any interest (or bonus) payable after the transfer under a savings arrangement which immediately before the transfer was a certified SAYE savings arrangement (within the meaning of section 703(1) of that Act) in relation to the society despite the fact that it ceased to be such an arrangement by reason of the transfer.
section 326 of the Taxes Act 1988 (certain sums to be disregarded for income tax purposes), and
section 149B(4) of the Capital Gains Tax Act 1979 (corresponding provision for capital gains tax purposes),
Section 109 of the Building Societies Act 1986 (exemption from stamp duty) shall be renumbered as subsection (1) of that section and after that provision as so renumbered there shall be inserted—
Section 146.
The Taxes Act 1988 shall have effect, and shall be deemed always to have had effect, subject to the amendments specified in paragraphs 2 to 14 of this Schedule.
In section 61(4) after the word “where” there shall be inserted the words “ there is a change in the persons engaged in carrying on a trade, profession or vocation in partnership and ”.
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In section 533(4) after “1949” there shall be inserted the words “ , sections 55 to 59 of the Patents Act 1977 ”.
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In section 824—
in subsection (1) the following paragraphs shall be substituted for paragraphs (a) and (b)—
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the following subsection shall be inserted after that subsection—
in subsection (3) the following paragraph shall be inserted after paragraph (a)—
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the following subsection shall be inserted after subsection (2)—, and
in subsection (5) the words “Without prejudice to subsection (2A) above,” shall be inserted at the beginning.
In paragraph 2 of Schedule 10 after sub-paragraph (c) there shall be inserted the word “ or ”.
In paragraph 17(2)(a) of Schedule 15 after the words “but the old policy was” there shall be inserted the word “ not ”.
In paragraph 18(2) of that Schedule for “1 to 9” there shall be substituted “ 1, 2, 3(5) to (11), 4 to 9 ”.
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In paragraph 8 of Schedule 29 for the words “added after paragraph (f)” there shall be substituted the words “ substituted for paragraph (g) ”.
In the Table in paragraph 32 of that Schedule the amendments of — shall be omitted.
section 55(1)(g) of the Taxes Management Act 1970,
section 108(9)(b) of the Finance Act 1980, and
section 80(5)(b) of the Finance Act 1985,
The repeals made in section 47 of the Finance (No. 2) Act 1975 shall be treated as never having had effect.
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In section 101 of the Finance Act 1980 for the words “60 above” there shall be substituted the words “468(5) of the Taxes Act 1988”.
In section 109(8)(b) of that Act for the words “Part II of that Act” there shall be substituted the words “ Chapter V of Part XII of the Taxes Act 1988 ”.
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In section 80(5)(b) of the Finance Act 1984 for the words “13 of the Oil Taxation Act 1975” there shall be substituted the words “ 492 of the Taxes Act 1988 ”.
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The repeals made by the Finance Act 1987 in section 47 of the Finance (No. 2) Act 1975 shall be treated as never having had effect.
The amendments made by paragraphs 16 to 23 of this Schedule shall be treated for the purposes of their commencement as if they had been made by the Taxes Act 1988.
Section 148.
Chapter Short title Extent of repeal 1979 c. 2. The Customs and Excise Management Act 1979. In section 93(2)(c), the words “(other than operations consisting of the mixing of spirits with wine or made-wine)”. 1979 c. 4. The Alcoholic Liquor Duties Act 1979. In section 1(3), the words “thereof at any time”. Section 22(7). In section 42(6), the words “but as respects” onwards. In section 43(4), the words “but as respects” onwards. 1981 c. 63. The Betting and Gaming Duties Act 1981. In Schedule 1, in paragraph 13(3)(a), the words from “or, with intent” to “material particular”.In Schedule 2, in paragraph 7(3)(a), the words from “or, with intent” to “material particular”.
The repeal in section 1 of the Alcoholic Liquor Duties Act 1979 comes into force on the day appointed under section 1(6) of this Act.
The repeals in sections 42 and 43 of that Act have effect from 1st October 1988.
The repeals in the Betting and Gaming Duties Act 1981 have effect in relation to offences committed after the passing of this Act.
Chapter Short title Extent of repeal 1971 c. 10. The Vehicles (Excise) Act 1971. In section 2, in subsection (1), paragraph (c) and in subsection (4), paragraph (c) and the words “or paragraph (c)”.Section 10(2)(f).In section 13(1), the words “(except a seven day licence)”.In section 14(2)(c), the words “or seven day licences”.In section 38(1), the definition of “seven day licence”. 1972 c. 10 (N.I.). The Vehicles (Excise) Act (Northern Ireland) 1972. In section 2, in subsection (1), paragraphs (c) and (d), subsection (1A) and in subsection (5), paragraph (c) and the words “or paragraph (c)”.Section 10(2)(f).In section 13(1), the words “(except a seven day licence)”.In section 14(2)(c), the words “or seven day licences”.In section 35(1), the definition of “seven day licence”. 1982 c. 39. The Finance Act 1982. Section 5(5).In section 6, subsections (5) and (6). 1983 c. 28. The Finance Act 1983. Section 4(4). These repeals have effect from 1st June 1988.
Chapter Short title Extent of repeal 1983 c. 55. The Value Added Tax Act 1983. In section 14(7), the words “or to pay tax”.Section 40(1)(i). 1984 c. 43. The Finance Act 1984. Section 12. 1985 c. 54. The Finance Act 1985. In section 14, in subsection (1), the words “paragraph (a) or paragraph (b) of”, in subsection (6), the words “nor be taken into account under subsection (2)(b) above” and, in subsection (7), the words “and shall not be taken into account under subsection (2)(b) above”.Section 18(2).Section 33(4).In Schedule 7, paragraph 1(1). 1987 c. 16. The Finance Act 1987. Section 13(4).In section 14, subsections (7) to (9).
Chapter Short title Extent of repeal 1970 c. 9. The Taxes Management Act 1970. In section 18, in subsection (1), the words “other than interest to which subsection (4) below applies” and subsection (4). 1970 c. 10. The Income and Corporation Taxes Act 1970. In section 482, in subsection (1), paragraphs (a) and (b), subsections (7) to (9) and, in subsection (10), the words “and a body corporate” onwards.In Schedule 10, in paragraph 7(3), the words “the investments forming part of the premiums trust fund of the underwriter”. 1973 c. 51. The Finance Act 1973. In Schedule 16, paragraph 16. 1975 c. 45. The Finance (No. 2) Act 1975. In section 47, in subsection (1), the words “income tax, surtax or” and paragraph (b) and the word “or” immediately preceding it, in subsection (2), the words “by virtue of subsection (7) below”, subsection (3), in subsection (4), paragraph (b) and the words “, subject to subsection (6) below,”, subsections (5) to (7), in subsection (8), the words “or in respect” onwards and subsections (9) and (10). 1980 c. 48. The Finance Act 1980. Section 71. 1988 c. 1. The Income and Corporation Taxes Act 1988. In section 1(3), the words “and the” onwards.Section 39(3).Section 258.In section 261, the words “258 or”.Sections 263 and 264.Section 265(3).Section 275.In section 278, in subsection (2), the words “Subject to subsection (3) below,” and subsections (3) to (7).In section 280(2)(b)(i), the reference to section 258.Section 284(1)(b).In section 289(14), the words “paragraph 3 of Schedule 2”.In section 348(3), the words from “a small” to “or to”.In section 349(3), the words “and subsection (1)” onwards.Section 351.In section 355, in subsection (1)(a) the words “or of a dependent relative or former or separated spouse of his,” and subsection (3).In section 357(2)(a), the words “or of a dependent relative or former or separated spouse of his”.In section 358(4)(a), the words “or of any dependent relative of the deceased”.In section 452(8)(a), the words “the investments forming part of the premiums trust fund of the underwriter”.In section 577, subsections (2), (4) and (6).In section 694(2), the words “at the rate of 30 per cent.”.In section 765, in subsection (1), paragraphs (a) and (b).In section 767, subsections (1) to (4) and, in subsection (5), the words “and a body corporate” onwards.Section 780(5).In section 832(1), in the definition of “higher rate”, the words “and any” onwards.In section 833, in subsection (3), the words “or Schedule 2”, and paragraph (c) and the word “or” immediately preceding it, and, in subsection (4)(c), the reference to Schedule A.In section 835(5), the words “nor” onwards.Schedule 2.In Schedule 11, paragraphs 4 to 7.In Schedule 29 in paragraph 7, sub-paragraphs (1) and (3), and in the Table in paragraph 32, the entries relating to section 55(1)(g) of the Taxes Management Act 1970, paragraph 13 of Schedule 8 to the Finance Act 1971, section 108(9)(b) of the Finance Act 1980 and section 80(5)(b) of the Finance Act 1985.
The repeals in section 482 of the Income and Corporation Taxes Act 1970 and sections 765 and 767 of the Income and Corporation Taxes Act 1988 have effect from 15th March 1988 but subject to section 105(6) of this Act.
The repeals in Schedule 10 to the Income and Corporation Taxes Act 1970 and the Finance Act 1973 have effect for the years 1986-87 and 1987-88.
The repeal in the Finance Act 1980 has effect from 16th March 1988.
The repeals in section 278 of the Income and Corporation Taxes Act 1988 have effect for the year 1990-91 and subsequent years of assessment.
The repeal of section 351(1) to (7) of that Act and the repeals in sections 348 and 349 have effect in relation to payments made on or after 6th April 1989; and the repeal of section 351(8) has effect in relation to orders and variations made on or after that date.
The repeals in sections 355, 357 and 358 of that Act have effect in accordance with section 44 of this Act.
The repeals in section 577 of that Act have effect in accordance with section 72 of this Act.
The repeals in Schedule 11 to that Act have effect in relation to payments to which section 74 of this Act applies.
The remaining repeals have effect for the year 1988-89 and subsequent years of assessment.
Chapter Short title Extent of repeal 1968 c. 43. The Capital Allowances Act 1968. In section 47, subsection (1)(b) and, in subsection (2), the words “(including woodlands)”.In section 69, the definitions of “forestry land” and “forestry income”.In section 70(7), the words from “and the occupation of woodlands” to “Schedule D”.Section 79(3).Section 85(4).In section 87(5), the words “This subsection” onwards.In Schedule 9, in paragraph 4, the words “or the occupation of woodlands in the United Kingdom”. 1970 c. 9. The Taxes Management Act 1970. In section 50(5), the proviso.In Schedule 3, in rule 4, the words “An appeal against an assessment under Schedule B and”. 1970 c. 10. The Income and Corporation Taxes Act 1970. In section 1, the entry for Schedule B.Section 67(3).Part IV.In section 108, in paragraph 1(b) of Schedule D, the reference to Schedule B.In section 109(2), in Case VI, the reference to Schedule B.Section 111.Section 168(8).In section 169(10), the words from “and in relation to the occupation of woodlands” to “paragraph 4 of Schedule 6 to the Finance Act 1988”.Section 171(5).Section 174(13).In section 226(9)(c), the words “Schedule B or”.In section 238(4)(b), the words “or the occupation of woodlands” onwards.Section 347(8)(b).In section 351(1)(a), the reference to Schedule B.Section 360(1)(b).In section 515(6), the words from “and in relation to the occupation of woodlands” to “Schedule D”.In section 530(1)(c), the words “Schedule B”. 1971 c. 68. The Finance Act 1971. Section 47(1)(b). 1972 c. 41. The Finance Act 1972. In Schedule 16, in paragraph 10(4A), the words “or Schedule B”. 1984 c. 43. The Finance Act 1984. Section 51. 1988 c. 1. The Income and Corporation Taxes Act 1988. In section 1, the reference to Schedule B.In section 6(4)(b), the words “or the occupation of woodlands” onwards.Section 15(3).Section 16.In section 18, in subsection (1), in paragraph (b) of Schedule D, and in subsection (3), in Case VI, the reference to Schedule B.Section 54.Section 380(4).In section 383(12)(a), the words from “and in relation to the occupation of woodlands” to “paragraph 4 of Schedule 6 to the Finance Act 1988”.Section 385(6).Section 389(8).Section 491(10)(b).Section 505(1)(b).In section 512(1)(a), the reference to Schedule B.In section 623(2)(c), the words “Schedule B or”.In section 810(6), the words from “and in relation to the occupation of woodlands” to “Schedule D”.In section 833(4)(c), the reference to Schedule B. 1988 c. 39. The Finance Act 1988. In Schedule 6, paragraphs 4 and 5(1).
The repeals in the Taxes Management Act 1970, the repeals in sections 1, 67, 108, 109, 226(9)(c), 351(1)(a) and 530(1)(c) of the Income and Corporation Taxes Act 1970, the repeals of Part IV and section 360(1)(b) of that Act, the repeal in the Finance Act 1972, the repeal in the Finance Act 1984, the repeals in sections 1, 15, 18, 512(1)(a), 623(2)(c) and 833(4)(c) of the Income and Corporation Taxes Act 1988 and the repeal of sections 16 and 505(1)(b) of that Act have effect from 6th April 1988.
The repeals of section 111 of the Income and Corporation Taxes Act 1970 and section 54 of the Income and Corporation Taxes Act 1988 have effect from 15th March 1988.
The remaining repeals have effect from 6th April 1993.
Chapter Short title Extent of repeal 1970 c. 9. The Taxes Management Act 1970. In the Table in section 98, the reference to Schedule 12 to the Finance Act 1972 and in that Table as substituted by the Income and Corporation Taxes Act 1988, the reference to section 139 of that Act. 1972 c. 41. The Finance Act 1972. Section 79.Schedule 12 (except the definitions of “market value” and “shares” in paragraph 6). 1973 c. 51. The Finance Act 1973. Section 19.Schedule 8. 1974 c. 30. The Finance Act 1974. Section 20(2). 1979 c. 14. The Capital Gains Tax Act 1979. In Schedule 7, in the Table in paragraph 9, the entry relating to section 79(9) of the Finance Act 1972. 1982 c. 39. The Finance Act 1982. In section 41, the words “Paragraph 5 of Schedule 8 to the Finance Act 1973 and”. 1984 c. 43. The Finance Act 1984. Sections 40 and 41. 1986 c. 41. The Finance Act 1986. In section 23(4)(a), the words “and also to Schedule 8 to the Finance Act 1973” and the words “and share incentive”.Section 26(3) to (5) and (6)(b) to (d). 1988 c. 1. The Income and Corporation Taxes Act 1988. Sections 138 and 139. These repeals have effect in relation to acquisitions on or after 26th October 1987.
Chapter Short title Extent of repeal 1970 c. 10. The Income and Corporation Taxes Act 1970. In section 280(1)(b), the words “unless the ulti-mate disposal occured before 30th April 1969,”. 1979 c. 14. The Capital Gains Tax Act 1979. Section 3.In section 101(8), the words “(being a time after 30th July 1978)”. 1985 c. 54. The Finance Act 1985. In section 68(4), the words “to which this subsection applies”.In Schedule 20, paragraph 16(4)(a) and (5). 1987 c. 16. The Finance Act 1987. Section 47. 1988 c. 1. The Income and Corporation Taxes Act 1988. In Schedule 29, in the Table in paragraph 32, the entries relating to section 266(4) of the Companies Act 1985 and the entries relating to Article 274(4) of the Companies (North-ern Ireland) Order 1986.
The repeals in the Income and Corporation Taxes Act 1988 have effect for companies’ accounting periods ending after 5th April 1988.
The remaining repeals have effect in relation to disposals made on or after 6th April 1988.
Chapter Short title Extent of repeal 1970 c. 9. The Taxes Management Act 1970. In section 8(3B), the words “or of his wife living with him”.Section 11A(3).In section 13(1)(c), the words “,or is a married woman,”.In section 29(8), the words “and “return under Part II of this Act”” onwards.In section 93(1) the words from “or section 284(4)” to “wife)”.In section 95(1)(a), the words from “or section 284(4)” to “wife)”. 1975 c. 14. The Social Security Act 1975. In Schedule 2, paragraph 4. 1975 c. 15. The Social Security (Northern Ireland) Act 1975. In Schedule 2, paragraph 4. 1979 c. 14. The Capital Gains Tax Act 1979. Section 4(2).In section 5(6), the words “husbands and wives,”.Section 45.In Schedule 1, paragraphs 2 and 3. 1980 c. 48. The Finance Act 1980. Section 77(4)(b) and (d). 1982 c. 39. The Finance Act 1982. In section 80(3)(b), the words “2(1) and”. 1988 c. 1. The Income and Corporation Taxes Act 1988. In section 256, the words “and 287 and 288”.Sections 279 to 281.Sections 283 to 288.Section 304(1) to (4).In section 325, the words “and for this purpose” onwards.Section 347B(6).In section 361, in subsection (4)(d) the words “or his spouse” and in subsection (5) the words “, or whose spouses,”.Section 382(1) and (2).In section 420(2)(a)(i), the words “or the wife or husband of the borrower”.Section 525(5).Section 527(3).In section 535(5), the second sentence.Section 574(2)(b) and (c).In section 623, subsection (1), in subsection (2) the words “Subject to subsection (1) above,”, in subsection (6)(c) the words “or of the individual’s wife or husband”, in subsection (7)(a) the words “or that of his wife or her husband” and in subsection (8) the words “either” and “or to that individual’s wife or husband”. Section 644(7).In section 646, in subsections (2)(d), (5)(a) and (7) the words “or the individual’s wife or husband”.Section 703(7) and (8).In section 833(4), the second sentence.In Schedule 14, paragraph 1(2) and (3).In Schedule 29, in the Table in paragraph 32, the entries relating to sections 29(8), 93(1) and 95(1)(a) of the Taxes Management Act 1970 and paragraph 4 of Schedule 2 to the Social Security Act 1975 and those relating to the Social Security (Northern Ireland) Act 1975. 1988 c. 39. The Finance Act 1988. Section 40(3). In Schedule 10, in paragraph 5, in sub–paragraph (1), the words “(or, if he is a married man, to his wife)” and sub–paragraphs (3) to (5).
The repeals in section 361 of the Income and Corporation Taxes Act 1988 have effect in accordance with paragraph 15 of Schedule 3 to this Act.
The repeals in sections 382 and 574 of that Act have effect in relation to relief given for the year 1990-91 or a subsequent year of assessment.
The repeal in section 420(2) of that Act has effect in accordance with paragraph 16 of Schedule 3 to this Act.
The repeal in section 525 of that Act has effect in relation to tax paid or borne or payable or falling to be paid or borne for the year 1990-91 or a subsequent year of assessment.
The repeals in sections 527 and 535 of that Act have effect in relation to tax payable for the year 1990-91 or a subsequent year of assessment.
The remaining repeals have effect for the year 1990-91 and subsequent years of assessment.
Chapter Short title Extent of repeal 1970 c. 9. The Taxes Management Act 1970. In section 2(6), the second sentence.In section 58, subsection (1), in subsection (2) the word “Special” and subsection (4).Section 59.In section 100(4), the words “(or, in Northern Ireland, the Special Commission-ers)”. 1975 c. 22. The Oil Taxation Act 1975. In section 20(2), the words “or, in Northern Ireland, to a county court”.In Schedule 2, in the Table in paragraph 1(1), in the entry relating to section 58(3) of the Taxes Management Act 1970, the words “Omit the references to section 59 and,”. 1975 c. 45. The Finance (No. 2) Act 1975. In section 45(3), the words “and section 59(6) (election for county court in Northern Ireland)” and the word “each”. 1978 c. 23. The Judicature (Northern Ireland) Act 1978. In Schedule 5, in Part II, in the entry relating to the Taxes Management Act 1970, the words “and 59(5)”. S.I.1980/397 (N.I.3). The County Courts (Northern Ireland) Order 1980. In Schedule 1, in Part II, the entry relating to section 59(3) of the Taxes Management Act 1970. 1981 c. 35. The Finance Act 1981. In Schedule 17, in the Table in paragraph 18(1), in the entry relating to section 58(3) of the Taxes Management Act 1970, the words “Omit the reference to section 59and”. 1988 c. 1. The Income and Corporation Taxes Act 1988. In Schedule 29, in the Table in paragraph 32, the entry relating to section 58(3)(b) of the Taxes Management Act 1970. Subject to any provision made by an order under subsection (9) of section 134 of this Act, these repeals come into force on the day appointed under subsection (4) of that section but do not affect any proceedings which by virtue of subsection (5) of that section are unaffected by subsections (1) to (3) of that section.
Chapter Short title Extent of repeal 1984 c. 51. The Inheritance Tax Act 1984. Section 8(1A).In section 24(1), paragraph (b) and the word “and” immediately preceding it.In section 29(5), “(1)(b),”.Section 206.In section 226(3), the words “or, as the case may be, one year” and paragraph (b) and the word “or” immediately preceding it.In section 236(1), paragraph (b) and the word “and” immediately preceding it. 1986 c. 41. The Finance Act 1986. In Schedule 19, paragraph 3(2). These repeals have effect in relation to transfers of value made on or after 15th March 1988.
Chapter Short title Extent of repeal 54 & 55 Vict. c. 39. The Stamp Act 1891. In Schedule 1, the whole of the heading “Unit Trust Instrument”. 8 & 9 Geo. 6 c. 42. The Water Act 1945. Section 41(8). 9 & 10 Geo. 6 c. 64. The Finance Act 1946. Section 53. 9 & 10 Geo. 6 c. 17 (N.I.). The Finance (No.2) Act (Northern Ireland) 1946. Section 24. 10 & 11 Eliz. 2 c. 44. The Finance Act 1962. Section 30. 10 & 11 Eliz. 2 c. 17 (N.I.). The Finance Act (Northern Ireland) 1962. Section 3. 1963 c. 25. The Finance Act 1963. In section 65(2), the words “and in section 30 of the Finance Act 1962”. 1963 c. 22 (N.I.). The Finance Act (Northern Ireland) 1963. In section 14(2), the words “and in section 3 of the Finance Act (Northern Ireland) 1962”. 1968 c. 73. The Transport Act 1968. In section 160, subsections (2) and (3). 1971 c. 11. The Atomic Energy Authority Act 1971. Section 22(2). 1973 c. 51. The Finance Act 1973. Sections 47 to 49.Schedule 19. S.I. 1973/1323 (N.I. 18). The Finance (Miscellaneous Provisions) (Northern Ireland) Order 1973. Articles 8 to 10.Schedule 2. 1976 c. 40. The Finance Act 1976. Section 128. 1980 c. 26. The British Aerospace Act 1980. Section 3(6). 1980 c. 34. The Transport Act 1980. Section 46(6). 1980 c. 48. The Finance Act 1980. In Schedule 18, in paragraph 12, sub-paragraphs (2) and (3). 1980 c. 60. The Civil Aviation Act 1980. Section 4(7). 1981 c. 35. The Finance Act 1981. In section 110, the words “section 30 of the Finance Act 1962 and section 3 of the Finance Act (Northern Ireland) 1962”. 1981 c. 38. The British Telecommuni-cations Act 1981. In section 81, subsections (2) and (3). 1981 c. 56. The Transport Act 1981. In Schedule 1, paragraph 4.In Schedule 4, paragraph 7(1). 1982 c. 25. The Iron and Steel Act 1982. Section 13(2). 1984 c. 12. The Telecommunications Act 1984. Section 61(7).Section 63(5). 1984 c. 32. The London Regional Transport Act 1984. In section 64, subsections (1) to (6) and (8). 1984 c. 59. The Ordnance Factories and Military Services Act 1984. Section 13(3). 1985 c. 6. The Companies Act 1985. Section 161. 1985 c. 9. The Companies Consolidation (Consequential Provisions) Act 1985. In Schedule 2, the entry relating to the Finance Act 1973. 1985 c. 67. The Transport Act 1985. In section 131, subsections (1) to (5). 1986 c. 31. The Airports Act 1986. In section 76, subsections (1), (2) and (5). 1986 c. 44. The Gas Act 1986. Section 51(7).Section 52(5). S.I. 1986/1032 (N.I.6). The Companies (Northern Ireland) Order 1986. Article 171. S.I. 1986/1035 (N.I.9). The Companies Consolidation (Consequential Provisions) (Northern Ireland) Order 1986. In Part I of Schedule 1, the entry relating to the Finance (Miscellaneous Provisions) (Northern Ireland) Order 1973. These repeals have effect from 22nd March 1988.