Section 34.
SCHEDULE 4U.K. Tax credits, taxation of distributions etc
Modifications etc. (not altering text)
Part I U.K. General
U.K.The Taxes Management Act 1970
Section 7U.K.
1(1)In section 7 of the Taxes Management Act 1970 (notice of liability to income tax and capital gains tax) in subsection (6) (sources of income which fall within that subsection) after the words “other than the basic rate” there shall be inserted “ , the Schedule F ordinary rate ”.U.K.
(2)This paragraph has effect for the year 1999-00 and subsequent years of assessment.
Section 42 (pre-corporation tax self-assessment version)U.K.
Modifications etc. (not altering text)
2(1)In section 42 of the Taxes Management Act 1970 (procedure for making claims), as it has effect in relation to corporation tax for accounting periods ending before the day appointed under section 199 of the Finance Act 1994, the following provisions shall cease to have effect—U.K.
(a)in subsection (5) (form of claim) the words “Subject to subsection (5A) below,”;
(b)subsection (5A) (claims by companies for payment of tax credits); and
(c)subsection (10A) (extended meaning of terms used in subsection (5A)).
(2)This paragraph has effect in relation to tax credits in respect of distributions made on or after 6th April 1999.
Section 42 (corporation tax self-assessment version)U.K.
Textual Amendments
Modifications etc. (not altering text)
3(1)In section 42 of the Taxes Management Act 1970 (procedure for making claims), as it has effect in relation to corporation tax for accounting periods ending on or after the day appointed under section 199 of the Finance Act 1994, the following provisions shall cease to have effect—U.K.
(a)subsections (4) and (4A) (claims by companies for payment of tax credits); and
(b)in subsection (5), the words from “and the reference in subsection (4) above” onwards.
(2)This paragraph has effect in relation to tax credits in respect of distributions made on or after 6th April 1999.
U.K.The Taxes Act 1988
Section 231U.K.
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Section 232U.K.
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Section 233U.K.
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Sections 235 to 237U.K.
7(1)Sections 235 to 237 of the Taxes Act 1988 (distributions of exempt funds and bonus issues) shall cease to have effect.U.K.
(2)This paragraph has effect in relation to distributions made on or after 6th April 1999.
Section 238U.K.
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Section 241U.K.
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Section 249U.K.
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Section 421U.K.
11(1)In section 421 of the Taxes Act 1988 (taxation of borrower when loan under s.419 released etc) in subsection (1)—U.K.
(a)in paragraphs (a) and (b), for the words “lower rate”, in both places where they occur, there shall be substituted “ Schedule F ordinary rate ”; ...
(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(2)This paragraph has effect in relation to the release or writing off of the whole or part of a debt on or after 6th April 1999.
Section 469U.K.
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Section 549U.K.
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Section 660CU.K.
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Section 687U.K.
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Section 689BU.K.
16(1)Section 689B of the Taxes Act 1988 (order in which expenses of trustees are to be set against income) shall be amended as follows.U.K.
(2)In subsection (1)—
(a)in paragraph (a) (set against income within subsection (2) or (3) before other income) after “subsection (2)” there shall be inserted “ , (2A) ”;
(b)in paragraph (b) (set against income within subsection (2) before subsection (3)) after “subsection (2)” there shall be inserted “ or (2A) ”; and
(c)at the end of paragraph (b) there shall be added “and
(c)as set against so much (if any) of any income as is income falling within subsection (2) below before being set against income falling within subsection (2A) below”.
(3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(4)After subsection (2) there shall be inserted—
“(2A)Income falls within this subsection if it is income to which section 1A applies by virtue of its being equivalent foreign income falling within subsection (3)(b) of that section and chargeable under Case V of Schedule D.”
(5)In subsection (3) (income to which section 1A applies but which does not fall within subsection (2) of s.689B) after “subsection (2)” there shall be inserted “ or (2A) ”.
(6)This paragraph has effect for the year 1999-00 and subsequent years of assessment.
Section 699U.K.
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Section 703U.K.
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Section 709U.K.
19(1)In section 709 of the Taxes Act 1988 (meaning of tax advantage etc) in subsection (2A) (references to a relief and to repayment of tax to include references to a tax credit and payment of any amount in respect of a tax credit) the words “and to a repayment of tax”, “respectively” and “and to a payment of any amount in respect of a tax credit” shall be omitted.U.K.
(2)This paragraph has effect for the year 1999-00 and subsequent years of assessment.
Section 743U.K.
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Section 819U.K.
21(1)In section 819 of the Taxes Act 1988 (old references to standard rate tax) in subsection (2)—U.K.
(a)after “(so far as applicable in accordance with section 1A) the lower rate” there shall be inserted “ or the Schedule F ordinary rate ”; and
(b)for “any higher rate” there shall be substituted “ the higher rate and the Schedule F upper rate ”.
(2)This paragraph has effect for the year 1999-00 and subsequent years of assessment.
Section 832U.K.
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Schedule 13U.K.
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U.K.The Taxation of Chargeable Gains Act 1992
Section 4U.K.
24(1)Section 4 of the Taxation of Chargeable Gains Act 1992 (rates of capital gains tax) shall be amended as follows.U.K.
(2)In subsection (2) (case where income tax is chargeable at the higher rate on part of income of an individual) after “the higher rate”, where first occurring, there shall be inserted “ or the Schedule F upper rate ”.
(3)In subsection (3) (case where income tax is not chargeable at the higher rate on income of an individual but his gains exceed the unused basic rate band) after “the higher rate”, where first occurring, there shall be inserted “ or the Schedule F upper rate ”.
(4). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(5). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(6)This paragraph has effect for the year 1999-00 and subsequent years of assessment.
Textual Amendments
Marginal Citations
Section 6U.K.
25(1)In section 6 of the Taxation of Chargeable Gains Act 1992 (other special cases) in subsection (3) (cases where income includes gains on policies of life insurance etc) in paragraph (b) after “as if no income were chargeable at the higher rate” there shall be inserted “ or the Schedule F upper rate ”.U.K.
(2)This paragraph has effect for the year 1999-00 and subsequent years of assessment.
Part II U.K. Insurance companies and Lloyd’s underwriters
U.K.The Taxes Act 1988
Section 231BU.K.
26(1)In section 231B of the Taxes Act 1988, in subsection (4)(b), the words “or 441A(7)” shall be omitted.U.K.
(2)This paragraph has effect in relation to distributions made on or after 6th April 1999.
Section 434U.K.
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Section 441AU.K.
28(1)In section 441A, subsections (2) to (8) (regulations about tax credits to which insurance companies are entitled) shall cease to have effect.U.K.
(2)This paragraph has effect in relation to distributions made on or after 6th April 1999.
Schedule 19ACU.K.
29(1)Schedule 19AC to the Taxes Act 1988 (overseas life insurance companies) shall be amended as follows.U.K.
(2)In paragraph 9(1) (which notionally inserts subsections (1C) to (1E) into section 434 of the Taxes Act 1988) in the notionally inserted subsection (1D), the words from “but this subsection” onwards shall cease to have effect.
(3)Paragraph 11A(2) (which modifies section 441A(2) and (3) of the Taxes Act 1988) shall cease to have effect.
(4)This paragraph has effect in relation to distributions made on or after 6th April 1999.
U.K.The Finance Act 1993
Schedule 20U.K.
Prospective
30(1)In Schedule 20 to the Finance Act 1993 (Lloyd’s underwriters: special reserve funds) the following provisions shall cease to have effect—U.K.
(a)paragraph 9(3) (claims for payment of tax credits); and
(b)in paragraph 11(3)(c) (value of fund as increased by tax repayment or tax credit received under paragraph 9(2) or (3)) the words “or tax credit received” and “or (3)”.
(2)Sub-paragraph (1) above has effect in relation to distributions made on or after 6th April 1999.