Finance (No. 2) Act 1975

SCHEDULES

Section 5.

SCHEDULE 1 Provisions Substituted in [1971 c. 10.] Vehicles (Excise) Act 1971

I Provisions Substituted for Part II of Schedule 1

Description of vehicle	Rate of duty
	£
1. Bicycles and tricycles of which the cylinder capacity of the engine does not exceed 150 cubic centimetres; electrically propelled bicycles; electrically propelled tricycles which do not exceed 165 pounds in weight unladen	4.00
2. Bicycles of which the cylinder capacity of the engine exceeds 150 cubic centimetres but does not exceed 250 cubic centimetres; tricycles (other than those in the foregoing paragraph) and vehicles (other than mowing machines) with more than three wheels, being tricycles and vehicles neither constructed nor adapted for use nor used for the carriage of a driver or passenger	8.00
3. Bicycles and tricycles not in the foregoing paragraphs	16.00

II Provisions Substituted for Part II of Schedule 2

Description of vehicle	Rate of duty
	£
Hackney carriages	20.00
	with an additional 50p for each person above 20 (excluding the driver) for which the vehicle has seating capacity.

III Provisions Substituted for Part II of Schedule 3

	Weight unladen of vehicle		Rate of duty
1.	2.	3.	4.	5.
Description of vehicle	Exceeding	Not exceeding	Initial	Additional for each ton or part of a ton in excess of the weight in column 2
			£	£
1. Agricultural machines; digging machines; mobile cranes; works trucks; mowing machines.	—	—	6.65	—
2. Haulage vehicles, being showmen's vehicles.	—	7 ¼ tons	62.65	—
	7 ¼ tons	8 tons	75.00	—
	8 tons	10 tons	87.35	—
	10 tons	—	87.35	12.65
3. Haulage vehicles, not being showmen's vehicles.	—	2 tons	71.00	—
	2 tons	4 tons	128.00	—
	4 tons	6 tons	176.00	—
	6 tons	7 ¼ tons	224.00	—
	7 ¼ tons	8 tons	272.00	—
	8 tons	—	272.00	48.00

IV Provisions Substituted in Part II of Schedule 4 Tables Showing Annual Rates of Duty on Goods Vehicles

Table A

General Rates of Duty

	Weight unladen of vehicle		Rate of duty
1.	2.	3.	4.	5.
Description of vehicle	Exceeding	Not exceeding	Initial	Additional for each ¼ ton or part of a ¼ ton in excess of the weight in column 2
			£	£
1. Farmers' goods vehicles	—	12 cwt.	23.35	—
	12 cwt.	16 cwt.	25.65	—
	16 cwt.	1 ton	28.00	—
	1 ton	1 ¼ tons	30.35	—
	1 ¼ tons	2 ½ tons	30.35	2.65
	2 ½ tons	4 ½ tons	43.60	3.35
	4 ½ tons	5 ½ tons	67.05	1.35
	5 ½ tons	8 ½ tons	75.15	1.65
	8 ½ tons	—	93.30	1.35
2. Showmen's goods vehicles	—	12 cwt.	23.35	—
	12 cwt.	16 cwt.	25.65	—
	16 cwt.	1 ton	28.00	—
	1 ton	3 tons	28.00	2.65
	3 tons	4 tons	49.20	3.00
	4 tons	5 tons	61.20	2.65
	5 tons	6 tons	71.80	2.35
	6 tons	—	81.20	2.65
3. Electrically propelled goods vehicles (other than farmers' goods vehicles or showmen's goods vehicles); tower wagons.	—	12 cwt.	32.00	—
	12 cwt.	16 cwt.	35.00	—
	16 cwt.	1 ton	39.35	—
	1 ton	6 tons	39.35	4.00
	6 tons	7 tons	119.35	3.35
	7 tons	8 ¼ tons	132.75	3.65
	8 ¼ tons	—	151.00	4.00
4. Goods vehicles not included in any of the foregoing provisions of this Part of this Schedule.	—	16 cwt.	40.00	—
	16 cwt.	1 ton	48.65	—
	1 ton	1 ½ tons	48.65	8.65
	1 ½ tons	2 tons	65.95	9.00
	2 tons	3 tons	83.95	10.00
	3 tons	4 tons	123.95	14.00
	4 tons	—	179.95	18.00

Table B

Rates of Duty on Goods Vehicles Used for Drawing Trailers

	Weight unladen of vehicle
1.	2.	3.	4.
Description of vehicle	Exceeding	Not exceeding	Rate of duty
			£
1. Showmen's goods vehicles	—	—	23.35
2. Electrically propelled goods vehicles (other than farmers' goods vehicles and showmen's goods vehicles); tower wagons.	—	1 ½ tons	18.65
	1 ½ tons	3 tons	32.00
	3 tons	—	36.00
3. Other goods vehicles	—	1 ½ tons	18.65
	1 ½ tons	2 ½ tons	32.00
	2 ½ tons	4 tons	53.35
	4 tons	—	72.00

V Provisions Substituted for Part II of Schedule 5

Description of vehicle	Rate of duty
	£
1. Electrically propelled vehicles; vehicles not exceeding 7 horse-power, if registered under the Roads Act 1920 for the first time before 1st January 1947	28.80
2. Vehicles not included above	40.00

Section 6.

SCHEDULE 2 Provisions Substituted in [1972 c. 10 (N.I.).] Vehicles (Excise) Act (Northern Ireland) 1972

I Provisions Substituted for Part II of Schedule 1

Description of vehicle	Rate of duty
	£
1. Bicycles and tricycles of which the cylinder capacity of the engine does not exceed 150 cubic centimetres; electrically propelled bicycles; electrically propelled tricycles which do not exceed 165 pounds in weight unladen	4.00
2. Bicycles of which the cylinder capacity of the engine exceeds 150 cubic centimetres but does not exceed 250 cubic centimetres; tricycles (other than those in the foregoing paragraph) and vehicles (other than mowing machines) with more than three wheels, being tricycles and vehicles neither constructed nor adapted for use nor used for the carriage of a driver or passenger	8.00
3. Bicycles and tricycles not in the foregoing paragraphs	16.00

II Provisions Substituted for Part II of Schedule 2

Description of vehicle	Rate of duty
	£
Hackney carriages	20.00
	with an additional 50p for each person above 20 (excluding the driver) for which the vehicle has seating capacity.

III Provisions Substituted for Part II of Schedule 3

	Weight unladen of vehicle		Rate of duty
1.	2.	3.	4.	5.
Description of vehicle	Exceeding	Not exceeding	Initial	Additional for each ton or part of a ton in excess of the weight in column 2
			£	£
1. Agricultural machines; digging machines; mobile cranes; works trucks; mowing machines.	—	—	6.65	—
2. Haulage vehicles, being showmen's vehicles.	—	7 ¼ tons	62.65	—
	7 ¼ tons	8 tons	75.00	—
	8 tons	10 tons	87.35	—
	10 tons	—	87.35	12.65
3. Haulage vehicles, not being showmen's vehicles.	—	2 tons	71.00	—
	2 tons	4 tons	128.00	—
	4 tons	6 tons	176.00	—
	6 tons	7 ¼ tons	224.00	—
	7 ¼ tons	8 tons	272.00	—
	8 tons	—	272.00	48.00

IV Provisions Substituted for Part II of Schedule 4 Tables Showing Annual Rates of Duty on Goods Vehicles

Table A

General Rates of Duty

	Weight unladen of vehicle		Rate of duty
1.	2.	3.	4.	5.
Description of vehicle	Exceeding	Not exceeding	Initial	Additional for each ton or part of a ton in excess of the weight in column 2
			£	£
1. Farmers' goods vehicles	—	12 cwt.	23.35	—
	12 cwt.	16 cwt.	25.65	—
	16 cwt.	1 ton	28.00	—
	1 ton	1 ¼ tons	30.35	—
	1 ¼ tons	2 ½ tons	30.35	2.65
	2 ½ tons	3 ½ tons	43.60	3.35
	3 ½ tons	—	57.00	1.00
2. Showmen's goods vehicles; electrically propelled goods vehicles (other than farmers' goods vehicles); tower wagons.	—	12 cwt.	30.00	—
	12 cwt.	16 cwt.	32.00	—
	16 cwt.	1 ton	36.00	—
	1 ton	3 tons	36.00	1.65
	3 tons	4 tons	49.20	3.00
	4 tons	5 tons	61.20	2.65
	5 tons	6 tons	71.80	2.35
	6 tons	—	81.20	2.65
3. Goods vehicles not included in any of the foregoing provisions of this Part.	—	16 cwt.	40.00	—
	16 cwt.	1 ton	43.35	—
	1 ton	1 ¼ tons	50.65	—
	1 ¼ tons	2 tons	50.65	8.00
	2 tons	3 tons	74.65	9.00
	3 tons	4 tons	110.65	12.35
	4 tons	—	160.05	16.00

Table B

Rates of Duty on Goods Vehicles Used for Drawing Trailers

	Weight unladen of vehicle
1.	2.	3.	4.
Description of vehicle	Exceeding	Not exceeding	Rate of duty
		£
1. Showmen's goods vehicles; electrically propelled goods vehicles (other than farmers' goods vehicles); tower wagons.	—	—	23.35
2. Other goods vehicles	—	1 ½ tons	18.65
	1 ½ tons	2 ½ tons	28.35
	2 ½ tons	4 tons	48.00
	4 tons	—	64.00

V Provisions Substituted for Part II of Schedule 5

Description of vehicle	Rate of duty
	£
1. Electrically propelled	28.80
2. Not electrically propelled—
	(a) if first registered under the Roads Act 1920 before 1st January 1947, or which, if its first registration for taxation purposes had been effected in Northern Ireland, would have been so first registered as aforesaid under that Act as in force in Northern Ireland—
	(i) not exceeding 6 horse-power	24.00
(ii) exceeding 6 horse-power but not exceeding 9 horse-power—for each unit or part of a unit of horse-power	4.00
(b) other vehicles	40.00

Section 8.

SCHEDULE 3 Revenue Duties : Amendments of Customs and Excise, and Other Acts

PART I Amendments Connected with Conversion op Certain Revenue Duties

General adaptation of enactments

1 (1) Subject to the following provisions of this Schedule and save where the context otherwise requires, any reference in the customs Acts or excise Acts or in any instrument of a legislative character made thereunder which is in force at the end of 1975 and any reference in any other Act then in force to a duty or duties of customs (and any reference to duty or customs in so far as it is a reference to a duty or duties of customs) not being a reference to a Community customs duty shall, after the end of 1975, be taken to be a reference to, or to so much of, a duty or duties (whether expressed to be of customs or excise) for the time being chargeable on goods imported into the United Kingdom and any reference in those Acts or instruments to, or which is to be construed as a reference to, customs drawback, customs charge or customs clearance shall be construed accordingly.

(2) Subject to the following provisions of this Schedule and save where the context otherwise requires, any reference in the customs Acts or excise Acts or in any instrument of a legislative character made thereunder which is in force at the end of 1975 and any reference in any other Act then in force to a duty or duties of excise (and any reference to duty or excise in so far as it is a reference to a duty or duties of excise) being a reference to a duty or duties chargeable on goods shall, after the end of 1975, be taken to be a reference to, or to so much of, a duty or duties for the time being chargeable on goods produced or manufactured in the United Kingdom and any reference in those Acts or instruments which is to be construed as a reference to excise drawback shall be construed accordingly.

2 Subject to paragraphs 16 to 22 below, any reference in the [1971 c. 12.] Hydrocarbon Oil (Customs & Excise) Act 1971 to the duty of excise on hydrocarbon oil (and any reference to duty in so far as it is a reference to the duty of excise on such oil) shall, after the end of 1975, be taken to include a reference to any excise duty for the time being chargeable on hydrocarbon oil imported into the United Kingdom.

Specific amendments

3 In section 103(5) of the Act of 1952 (amount of drawback on British compounds and spirits Of wine), after the words "the date when " insert the word " excise ".

4 In section 109(1)(a) of the Act of 1952 (immature spirits may be delivered for home use if allowed to be delivered without payment of duty), after the words " payment of " insert the word " excise ".

5 In section 111(1) and section 122 of the Act of 1952 (which provide for remission of duty on spirits in certain cases by reference to the duties of customs and excise), for paragraphs (a) and (b) substitute the words " without payment of the excise duty chargeable thereon " and omit the proviso to section 111(1).

6 In section 112(1) of the Act of 1952 (repayment of duty on spirits used for medical or scientific purposes), after the words " spirits on which " insert the word " excise ".

7 In section 113(1)(a) of the Act of 1952 (imported mixtures on which duty charged at reduced rate not to be used for other than medical or scientific purposes without permission), for the words " been charged with duty at a reduced rate " substitute the words " been relieved to any extent of the excise duty chargeable ".

8 In section 222(1) of the Act of 1952 (provisions as to components of mechanical lighters and other matters relating to duty on such lighters), for the words " provision of the excise Acts relating to the excise duty on mechanical fighters " substitute the words " duty of excise on mechanical lighters imported into or manufactured in the United Kingdom ".

9 In section 263(3) of the Act of 1952 (relief from duty where certain materials for use by a brewer have been destroyed or become spoilt or unfit for use), before the word " duty " in both places where it occurs insert the word " excise ".

10 In section 309(4) (certain products of Isle of Man removed to United Kingdom chargeable with customs duty as if imported if not or not fully charged with customs duty in Island), in paragraph (b) after the word " customs " in both places where it occurs insert the words " or excise ".

11 In section 310(1) (restriction on removal to United Kingdom of Isle of Man goods not or not fully charged with customs duty in Island) after the words " customs duty " wherever occurring insert the words " or excise duty ".

12 In section 3(3) of the [1953 c. 34.] Finance Act 1953 (definition of prescribed component of mechanical lighters in absence of definition under the said section 222), for the words from " the said " to " applied by this section " substitute the words " section 222 of the [1952 c. 44.] Customs and Excise Act 1952 in its application to the duty of excise on mechanical lighters imported into the United Kingdom ".

13 In section 3 of the [1958 c. 6.] Import Duties Act 1958, subsections (1) to (3) (import duties not generally to be imposed on goods subject to customs duty) shall be omitted.

14 In section 2(4) of the [1958 c. 11.] Isle of Man Act 1958 (meaning of " equal duties " for the purposes of sharing arrangements), after the word " customs" wherever occurring in paragraphs (a) and (b) insert the words " or excise ".

15 In section 6(1) of the [1970 c. 24.] Finance Act 1970 (exemption of angostura bitters from spirits duty), for the words "section 1 of the [1964 c. 49.] Finance Act 1964 (duties of customs and excise duty on spirits)" substitute " the charge of excise duty on spirits ".

16 In section 4(2) of the [1971 c. 12.] Hydrocarbon Oil (Customs & Excise) Act 1971 (time and rate of charge of customs duty on hydrocarbon oil removed to refinery) (which Act is hereinafter referred to as " the 1971 Act "), for the word " customs " substitute the word " excise ".

17 In section 6 of the 1971 Act (excise duty on hydrocarbon oil and on petrol substitutes and spirits for power methylated spirits), for the words " duty of customs charged under section 4 above " substitute the words " duty of excise on hydrocarbon oil ".

18 In section 8(3) of the 1971 Act (penalty for misuse of duty-free hydrocarbon oil), for the word " customs" substitute the word " excise ".

19 In section 15(1) of the 1971 Act (relief for heavy oil used by horticultural producers), before the word " duty " insert the word " excise ".

20 In section 16 of the 1971 Act (relief for fuel for ships in home waters), in subsections (1) and (2), before the word " duty " insert the word " excise ".

21 In section 17 of the 1971 Act (relief for fuel used in fishing boats, etc.), in subsection (3), before the word " duty " insert the word " excise ".

22 In Schedule 3 to the 1971 Act (regulations about hydrocarbon oil), in paragraphs 8 and 9, for the word " customs" substitute the word " excise " and in paragraphs 10 and 11, after the words " excise duty " insert the words " chargeable on hydrocarbon oil produced in the United Kingdom ".

23 For section 27(1) of the [1972 c. 41.] Finance Act 1972 (supply in warehouse of goods subject to customs duty to be disregarded for purposes of value added tax) substitute the following—

“(1) Where imported goods subject to a duty of customs or excise or a duty of customs and a duty of excise are supplied while warehoused, the supply shall be disregarded for the purposes of this Part of this Act if the goods are supplied before payment of the duty to which they are subject or, where they are subject to a duty of customs and a duty of excise, of the duty of excise.”

24 In section 57(3) of the Finance Act 1972 (duty not payable on spirits in articles for medical purposes), before the word " Duty " at the beginning of the subsection insert the word " Excise ".

PART II Amendments Relating to Certain Revenue Duties

25 In section 105(1) of the Act of 1952 (restrictions on carrying on of other trades by distiller or rectifier), for the words "maker of British wine or " substitute the words " producer of wine or of made-wine, maker of ".

26 In section 137(1) of the Act of 1952 (relief for beer in certain cases), after the words " drawback shall be allowable" insert the words " on. the removal to a warehouse on the premises of a licensed producer of made-wine or ".

27 For section 140 of the Act of 1952 (power to regulate making or rendering sparkling of British wine, etc.) substitute the following section—

“140 Power to regulate making of wine and made-wine and provide for charging duty thereon.

(1) The Commissioners may with a view to managing the excise duties on wine and made-wine produced in the United Kingdom for sale make regulations—

(a) regulating the production of wine and made-wine for sale and the issue, renewal and cancellation of excise licences therefor ;

(b) for determining the duty and the rates thereof and in that connection prescribing the method of charging the duty ;

(c) prohibiting or restricting the use of wine in the production of made-wine ;

(d) for securing and collecting the duty ;

(e) for relieving wine or made-wine from excise duty in such circumstances and to such extent as may be prescribed in the regulations.

(2) If any person fails to comply with any regulation made under this section, he shall be liable to a penalty of £50 and any article in respect of which the offence was committed shall be liable to forfeiture.”

28 Section 141 of the Act of 1952 (method of charging excise duty on British wine) shall be omitted.

29 In section 142 of the Act of 1952 (fortification of British wine in warehouse)—

(a) in subsection (1), for the words from "with" to "duty-free spirits " substitute the words " in warehouse with made-wine (whether imported into or produced in the United Kingdom) of spirits which are free of excise duty "; and

(b) subsection (2) shall be omitted.

30 Section 143 of the Act of 1952 (wine to be imported only at approved ports) shall be omitted.

31 In section 144 of the Act of 1952 (fortification of imported wine in warehouse)—

(a) in subsection (1), for the words " with wine in warehouse " substitute the words " in warehouse with wine (whether imported into or produced in the United Kingdom) "; and

(b) subsection (2) shall be omitted.

32 In section 145 of the Act of 1952 (rendering imported wine sparkling in warehouse) the following amendments shall be made, that is to say—

(a) subsections (1) and (2) shall be omitted ;

(b) in subsection (3), for the words "Wine shall not" substitute the words " Neither imported wine nor imported made-wine shall " and for the words " under subsection (1) of this section ", substitute the words " in accordance with regulations under section 16(2) of the Finance (No. 2) Act 1975 ";

(c) in subsection (4), paragraph (a) shall be omitted;

(d) in subsection (5), for the word " wine " where first occurring substitute the words " imported wine and imported made-wine ", for the words " otherwise than as permitted under this section" substitute the words " in contravention of subsection (4) above ", after the words " including wine" insert the words " or made-wine " and after the words " any wine " insert the words " or made-wine ".

33 In section 146(3) of the Act of 1952 (certain wholesale dealing in intoxicating liquors allowed without licence), for the words " maker of British wine " substitute the words " licensed producer of wine or of made-wine ".

34 In section 168 of the Act of 1952 (reduced duty on certain part-year licences), for the words " maker of British wine " substitute the words " producer of wine or made-wine ".

35 In section 169(2) of the Act of 1952 (relief from licence duty on permanent discontinuance of certain trades), for the words " maker of British wine " substitute the words " producer of wine or of made-wine ".

36 In section 170(1) of the Act of 1952 (payment by instalments of duty on licence for certain trades), for the words " maker of British wine " substitute the words " producer of wine or of made-wine or ".

37 In section 172(6) of the Act of 1952 (application of provisions of that section for ascertaining alcoholic strength etc. to fermented liquors), at the end add " but, in relation to wine or made-wine, shall not apply so as to prevent the strength, weight or volume of wine or made-wine from being ascertained for the purpose of charging duty thereon by methods other than that provided in this section ".

38 In section 221(1)(d) of the Act of 1952 (regulations may allow delivery of complete or incomplete mechanical lighters free of excise duty), for the words " without payment of any duty of excise " substitute the words " imported into or manufactured in the United Kingdom without payment of the excise duty ".

39 In section 248(2) of the Act of 1952 (entry upon premises of excise traders), for the words " maker of British wine " substitute the words " producer of wine or made-wine ".

40 In section 249(5) of the Act of 1952 (excise traders subject to power of search for concealed pipes etc.), for the words " makers of British wine " substitute the words " producers of wine or made-wine ".

41 In section 253(3) of the Act of 1952 (power of distraint for duty unpaid by excise traders), for the words "maker of British wine " substitute the words " or licensed producer of wine or made-wine ".

42 In section 263(4) of the Act of 1952 (relief from duty where certain liquors are spoilt or unfit for use), for the words "or British wine " wherever occurring substitute the words " wine or made-wine ", for the words " maker of British wine " substitute the words " licensed producer of wine or of made-wine ", for the words " or maker " substitute the words " or producer " and before the word " duty " insert the word " excise ".

43 In section 295(2) of the Act of 1952 (procedure and status of sample taken from certain excise traders), for the words " maker of British wine " substitute the words " or producer of wine or of made-wine ".

44 In section 307(1) of the Act of 1952 (definitions), the following amendments shall be made, that is to say—

(a) the definitions of " British wine " (that is, " sweets ") and " maker of British wine " shall be omitted ;

(b) for the definition of " wine " substitute a definition in terms of section 14(5) of this Act;

(c) for the definition of " perfect entry" substitute the following—

• " perfect entry " means an entry made in accordance with section 28 of this Act or regulations made under section 16(2) of the Finance (No. 2) Act 1975, as the case may require ;

(d) in the appropriate places in alphabetical order insert the following definitions, namely—

(i) definitions of " made-wine " and of " non-excisable cider " in terms of section 15(6) of this Act; and

(ii) " producer of wine " and " producer of made-wine " include respectively a person who renders wine or made-wine sparkling and " produce ", in relation to wine or made-wine, shall be construed accordingly and " licensed ", in relation to a producer of wine or of made-wine, means a producer who holds a licence to produce wine or made-wine under subsection (2) of section 14 or 15 respectively of the Finance (No. 2) Act 1975.

45 In section 199(1) of the [1959 c. 51.] Licensing (Scotland) Act 1959 (definitions for the purposes of that Act), in the definition of "excisable liquor " for the word " sweets " (that is, British wine) substitute the word " made-wine ", omit the definition of " sweets " and in the appropriate places in alphabetical order insert the following definitions—

• " made-wine " means made-wine within the meaning of the [1952 c. 44.] Customs and Excise Act 1952 ;

• " wine " means wine within the meaning of the Customs and Excise Act 1952.

46 In Part VI of Schedule 4 to the [1963 c. 31.] Weights and Measures Act 1963 and in Part VI of Schedule 2 to the [1967 c. 6 (N.I.).] Weights and Measures Act (Northern Ireland) 1967 (regulation of selling etc. of intoxicating liquor), in paragraph 1 after the word " beer " insert the word " and " and omit the words " wine and British wine " and at the end of that paragraph add the words " and ' wine' and ' British wine ' have the same meanings respectively as they had for the purposes of that Act immediately before the end of 1975.

47 In section 201(1) of the [1964 c. 26.] Licensing Act 1964 (definitions for the purposes of that Act), for the definition of "wine" (added by Schedule 7 to the [1967 c. 54.] Finance Act 1967) substitute the following definition—

• " wine " means wine within the meaning of the Customs and Excise Act 1952 and made-wine within the meaning of that Act.

Section 14.

SCHEDULE 4 Wine : Rates of Duty

Description of wine (in strengths measured by reference to the following percentages of alcohol by volume at a temperature of 20° C.)	Rates of duty (per gallon)
	£
Wine of an alcoholic strength—
not exceeding 15%	2.6250
exceeding 15 but not exceeding 18%	2.9350
exceeding 18 but not exceeding 22%	3.3500
exceeding 22%	3.3500 plus
	£0.3850 for every 1% or part of 1 % in excess of 22%;
	each of the above rates of duty being, in the case of sparkling wine, increased by £0.6500 per gallon.

Section 15.

SCHEDULE 5 Made-Wine : Rates of Duty

Description of wine (in strengths measured by reference to the following percentages of alcohol by volume at a temperature of 20° C.)	Rates of duty (per gallon)
	£
Wine of an alcoholic strength—
not exceeding 10%	1.7000
exceeding 10 but not exceeding 15%	2.5450
exceeding 15 but not exceeding 18%	2.8300
exceeding 18%	2.8300 plus
	£0.3850 for every 1% or part of 1 % in excess of 18%;
	each of the above rates of duty being, in the case of sparkling wine, increased by £0.3000 per gallon.

Section 16.

SCHEDULE 6 Amendments of Customs and Excise Acts About Warehousing of Goods

1 In section 34(2)(b) of the Act of 1952 (rate of duty on imported goods entered for warehousing to be ascertained as provided in section 88) for the words " as provided in section 88 of this Act" substitute the words " in accordance with regulations under section 16(2) of the Finance (No. 2) Act 1975

2 In section 38 of the Act of 1952 (right to warehouse goods without payment of duty) after the word "allowed" insert the words " subject to such conditions or restrictions as may be imposed by or under regulations made under section 16(2)(a) of the Finance (No. 2) Act 1975 ".

3 In section 80(1) of the Act of 1952 (approval of warehouses for keeping goods subject to conditions) omit the following words, that is to say—

(a) in paragraph (a) the words from " subject" to " impose " ;

(b) in paragraphs (b) and (e), the words from " subject" to " as aforesaid " ;

and after paragraph (e) insert the words " subject to and in accordance with regulations under section 16(2) of the Finance (No. 2) Act 1975. "

4 In section 92(2) of the Act of 1952 (general offences relating to warehoused goods), in paragraph (b), after the word " Act" insert the words " or by or under regulations under section 16(2) of the Finance (No. 2) Act 1975. "

5 In section 101 of the Act of 1952 (penalty for excess or deficiency of stock), in subsection (3), after the word " section " insert the words " spirits used by a rectifier in warehouse in pursuance of regulations made under section 16(2)(c) of the Finance (No. 2) Act 1975 shall be deemed not to be spirits in his stock as a rectifier and " and after the word " possession " insert the words " (other than spirits so used) ".

6 In section 102 of the Act of 1952 (restrictions on use of spirits by rectifiers) after subsection (4) insert the following subsection—

“(5) Spirits used in warehouse in pursuance of regulations made under section 16(2)(c) of the Finance (No. 2) Act 1975 shall be treated for the purposes of this section as spirits on which duty has been duly paid”.

7 In section 104(3) of the Act of 1952 (exclusion of allowance under that section on British compounded spirits) after the word " section " insert the words " if those spirits were compounded in warehouse in pursuance of regulations made under section 16(2)(c) of the Finance (No. 2) Act 1975 or, in any other case, ".

8 In section 109(1) of the Act of 1952 (immature spirits not to be delivered for home use except in certain cases) after proviso (h) add the following proviso—

“(i) to spirits compounded in warehouse in pursuance of regulations made under section 16(2)(c) of the Finance (No. 2) Act 1975.”

Section 17.

SCHEDULE 7 VAT: Higher Rate

GROUP 1—DOMESTIC APPLIANCES

Item No.

1 Goods of a kind suitable for domestic use which are operated by electricity or, in the case of horticultural appliances, by electricity or by an internal combustion engine, except—

(a) boiling rings, ovens, ranges and stoves ;

(b) space heaters;

(c) appliances for water heating ordinarily installed as fixtures ;

(d) light fittings and torches;

(e) telephones of a kind supplied by the Post Office and ancillary equipment of a kind so supplied;

(f) tools of a kind used wholly or mainly for carpentry, metalwork Or masonry work ;

(g) clocks, watches and timing devices ;

(h) mechanical lighters ;

(i) hearing aids;

(j) goods suitable for domestic use as, and only as, parts of goods (whether operated by electricity or not) of a kind mentioned in paragraphs (a) to (i) ;

(k) goods within Group 2 or Group 5.

2 Refrigerators and freezers of a kind suitable for domestic use, not being goods within Item 1.

3 Accessories to goods within Item 1 or Item 2.

4 Accessories to goods excepted from Item 1 by paragraph (f) of that Item, if the accessories are for horticultural use.

5 Goods of a kind suitable for use as parts of goods comprised in Items 1 to 4, except—

(a) nuts, bolts, screws, screw caps, nails, washers, rivets, split pins, press studs, buckles, hose fittings, tube fittings, springs, bushes and bearings;

(b) hinges, brackets, latches, catches, locks and keys;

(c) electric batteries, fuses, mains plugs, electric filament light bulbs and fluorescent tubes;

(d) wheels (other than steering wheels), castors and tyres and parts of such goods ;

(e) goods of a kind used mainly as parts of engines for road vehicles;

(f) sewing machine needles.

6 The installation, alteration, testing, repair or maintenance of, or the provision of similar services in respect of, goods comprised in Items 1 to 5.

7 The supply of goods in connection with a supply of services within Item 6.

Notes:

(1)

The goods excepted from Item 1 by paragraph (a) of that Item do not include hotplates or other appliances for keeping food hot.

(2)

" Mechanical lighters " has the meaning assigned to it by section 221(4) of the [1952 c. 44.] Customs and Excise Act 1952.

GROUP 2—RADIO AND TELEVISION SETS, ETC.

Item No.

1 Goods of a kind suitable for domestic or recreational use which are, or are capable of use as, goods within the following paragraphs—

(a) television sets;

(b) radio receivers or transmitters ;

(c) gramophones or tape recorders ;

(d) electronic musical instruments.

2 Microphones, radio-tuners, turntables, amplifiers, loudspeakers and other goods capable of use as components of goods within Item 1, being of a kind suitable for domestic or recreational use.

3 Combinations of goods within Item 2.

4 Accessories to goods comprised in Items 1 to 3.

5 Goods of a kind suitable for use as parts of goods comprised in Items 1 to 4, except goods within the exceptions from Item 5 of Group 1.

6 The installation, alteration, testing, repair or maintenance of, or the provision of similar services in respect of, goods comprised in Items 1 to 5.

7 The supply of goods in connection with a supply of services within Item 6.

Notes:

(1)

Items 1 and 2 include goods which can be adapted to produce goods within those Items.

(2)

" Television sets " and " radio receivers" include apparatus designed to receive programmes transmitted by wire.

(3)

" Gramophones or tape recorders" includes video cassette machines and other equipment for recording or reproducing sound or visual images by means of gramophone records, magnetic tape or similar recording media.

(4)

" Electronic musical instruments " means musical instruments which incorporate, or are designed for use with, an amplifier.

(5)

On and after 1st August 1975 Item 1 shall not include any television set which was, and so long as it remains, supplied under a contract of hire entered into prior to 16th April 1975.

(6)

Item 3 does not include hearing aids.

(7)

" Accessories " includes aerials.

(8)

Item 4 does not include—

(i)

gramophone records, magnetic tape or other recording media ;

(ii)

goods for cleaning or storing goods within paragraph (i);

(iii)

tape splicers.

GROUP 3—BOATS AND AIRCRAFT

Item No.

1 Boats—

(a) of a gross tonnage of less than 15 tons; or

(b) designed for use for recreation or pleasure;

except boats which are of a kind used solely as liferafts and comply with the requirements of the rules for the time being in force under section 427 of the [1894 c. 60.] Merchant Shipping Act 1894 in relation to liferafts.

2 Boats adapted for use for recreation or pleasure.

3 Aircraft—

(a) of a weight of less than 8,000 kilogrammes ; or

(b) designed or adapted for use for recreation or pleasure.

4 Hovercraft designed or adapted for use for recreation or pleasure.

5 The following accessories to goods within Item 1 or Item 2, namely—

(a) outboard motors and other engines ;

(b) electricity generators;

(c) sails ;

(d) compasses, echo sounders, radar sets, logs, wind speed, wind direction and boat speed indicators, and other navigational and meteorological instruments and recorders ;

(e) automatic pilots and automatic steering gear ;

(f) trailers and trolleys.

6 Goods of a kind suitable for use as parts of goods within Item 1 or Item 5, except goods within the exceptions from Item 5 of Group 1.

7 Parts of aircraft which are of a weight of less than 8,000 kilogrammes and of a kind used for recreation or pleasure, except parts within the exceptions from Item 5 of Group 1.

8 The alteration, testing, repair or maintenance of, or the provision of similar services in respect of, goods within Item 1, Item 5 or Item 6.

9 The supply of materials or parts in connection with a supply of services within Item 8.

10 The classification or surveying of, or the making of arrangements for the supply of, goods comprised in Items 1 to 5.

Notes:

(1)

" Boats " includes ships, inflatable craft and submersibles.

(2)

" Aircraft" includes gliders and balloons.

(3)

" Hovercraft" has the same meaning as in the [1968 c. 50.] Hovercraft Act 1968.

(4)

This Group does not include the letting on hire of a boat—

(a)

as holiday accommodation for a period not exceeding 28 consecutive days by a person who customarily hires out boats to the public for such purposes; or

(b)

for a period of less than a day if the boat is customarily held out for letting for such periods ; or the making of arrangements for any such letting.

GROUP 4—CARAVANS

Item No.

1 Caravans suitable for use as trailers drawn by motor vehicles having an unladen weight of less than 2,030 kilogrammes.

2 Caravan units designed to be mounted and carried on, and de-mounted from, motor vehicles.

3 Goods of a kind suitable for use as parts of goods within Item 1 or Item 2, except goods within the exceptions from Item 5 of Group 1.

4 The alteration, repair or maintenance of, or the provision of similar services in respect of, goods comprised in Items 1 to 3

5 The supply of materials or parts in connection with a supply of services within Item 4.

6 The making of arrangements for the supply of goods within Item 1 or Item 2.

Notes:

(1)

Items 1 and 2 do not include removable contents of a kind not ordinarily installed as fixtures.

(2)

This Group does not include the letting on hire of a caravan—

(a)

for use solely on a specified site ; or

(b)

as holiday accommodation for a period not exceeding 28 consecutive days by a person who customarily hires out caravans to the public for such purposes;

or the making of arrangements for any such letting.

GROUP 5—PHOTOGRAPHIC EQUIPMENT, BINOCULARS, ETC.

Item No.

1 Goods within the following paragraphs if they are of a kind suitable for domestic or recreational use—

(a) photographic and cinematographic cameras ;

(b) apparatus for developing, printing, reproducing, enlarging, reducing, editing or otherwise processing photographic or cinematographic images on film, plates or paper;

(c) cinematographic, film strip or slide projectors, slide viewers, epidiascopes, projector screens and other apparatus for viewing photographic or cinematographic images.

2 Binoculars, monoculars, field glasses, opera glasses and terrestrial telescopes.

3 Accessories to goods comprised in Items 1 and 2.

4 Goods of a kind suitable for use as parts of goods comprised in Items 1 to 3, except goods within the exceptions from Item 5 of Group 1.

5 The installation, alteration, testing, repair or maintenance of, or the provision of similar services in respect of, goods comprised in Items 1 to 4.

6 The supply of goods in connection with a supply of services within Item 5.

Notes:

(1)

Item 1 includes goods which can be adapted to produce goods within that Item.

(2)

Items 1 and 3 do not include—

(a)

film, plates and paper;

(b)

chemicals;

(c)

disposable flash bulbs ;

(d)

albums, mounts, wallets and other photographic stationery ;

(e)

slide boxes and other storage equipment for developed film, plates or prints.

GROUP 6—FURS

Item No.

1 Clothing made wholly or partly of fur skin, except—

(a) headgear;

(b) gloves;

(c) footwear;

(d) buttons, belts and buckles;

(e) any garment merely trimmed with fur skin unless the trimming has an area greater than one-fifth of the area of the outside material or, in the case of a new garment, represents a cost to the manufacturer greater than the cost to him of the other components.

2 Rugs made wholly or partly of fur skin.

3 Fur skin, whether or not tanned or dressed.

4 The application to goods comprised in Items 1 to 3 of any process or treatment, except the cleaning of goods comprised in Items 1 and 2.

5 The supply of goods in connection with a supply of services within Item 4.

6 The storage of goods comprised in Items 1 to 3.

Notes:

(1)

" Fur skin " means any skin with fur, hair or wool attached except—

(a)

rabbit skin;

(b)

woolled sheep or lamb skin ; and

(c)

the skin, if neither tanned nor dressed, of bovine cattle (including buffalo), equine animals, goats or kids (other than Yemen, Mongolian and Tibetan goats or kids), swine (including peccary), chamois, gazelles, deer or dogs.

(2)

Item 3 does not include goods comprised in Items 1 and 2 or excepted from Item 1 but does include other goods made of fur skin and capable of being made into or incorporated in such goods.

(3)

Item 4 includes the repair or alteration of goods comprised in Items 1 to 3.

GROUP 7—JEWELLERY, GOLDSMITHS' AND SILVERSMITHS' WARES, ETC.

Item No.

1 Jewellery, goldsmiths' and silversmiths' wares and similar goods made (in each case) wholly or partly from—

(a) precious metal;

(b) precious stones;

(c) semi-precious stones mounted, set or strung ;

(d) real or cultured pearls.

2 Precious stones, except—

(a) uncut diamonds;

(b) diamond powder or dust.

3 Semi-precious stones in the form of gems, jewels or beads.

4 Real or cultured pearls.

5 Jade and articles of jade.

6 The design or valuation of, the application of any process or treatment to, or the provision of similar services in respect of, goods comprised in Items 1 to 5.

7 The supply of goods in connection with a supply of services within Item 6.

Notes:

(1)

" Precious metal" means gold, silver, platinum and any alloy containing any of those metals.

(2)

"Platinum " includes iridium, osmium, palladium, rhodium and ruthenium.

(3)

" Precious stones" means diamonds, rubies, sapphires and emeralds; and " precious stones " and " semi-precious stones " include synthetic stones which are similar to natural stones in respect of their physical properties and chemical composition.

(4)

In Item 1 " similar goods " includes—

(a)

articles of personal use of a kind normally carried in the pocket or handbag ;

(b)

trophy cups, shields and similar articles of a kind awarded as prizes ;

(c)

medals, medallions and the insignia of orders and decorations, and miniatures or reproductions of medals, medallions or such insignia.

(5)

Goods do not fall within Item 1 by reason only of one or more of the following—

(a)

that they are coated or plated with precious metal;

(b)

in the case of clocks and watches, that they contain precious or semi-precious stones as part of the movement;

(c)

in the case of fountain pens, that the nib contains precious metal.

(6)

Item 1 does not include goods of a kind suitable only for use—

(a)

in churches, chapels or other buildings used mainly as places of meeting for religious worship ; or

(b)

by ministers of religion.

(7)

Item 6 does not include the cleaning, repair or maintenance of the movements of clocks or watches.

GROUP 8—PETROL, ETC.

Item No.

1 Light oil, except where it is in containers not exceeding 20 fluid ounces and is intended for sale in those containers solely as fuel for mechanical lighters.

2 Petrol substitute.

3 Power methylated spirits.

Notes:

(1)

" Light oil ", " petrol substitute " and " power methylated spirits " have the same meanings as in the [1971 c. 12.] Hydrocarbon Oil (Customs & Excise) Act 1971.

(2)

" Mechanical lighters" has the meaning assigned to it by section 221(4) of the [1952 c. 44.] Customs and Excise Act 1952.

Section 34.

SCHEDULE 8 Stock Dividends : Supplementary Provisions

Meaning of " the appropriate amount in cash "

1 (1) Where a company issues any share capital to which the principal section applies (in this paragraph called " the share capital in question "), any reference in the principal section or this Schedule to " the appropriate amount in cash " shall, in relation to that share capital, have the meaning given by sub-paragraph (2) or (3) below, as the case may be.

(2) Subject to sub-paragraph (3) below, where the company issues the share capital in question—

(a) in consequence of the exercise of an option such as is mentioned in subsection (1)(a) of the principal section; or

(b) in a quantity which is determined by or determines the amount of a dividend in cash payable in respect of share capital in the company of a different class,

" the appropriate amount in cash " means the amount of the relevant cash dividend or, in a case in which subsection (3) of the principal section applies, a due proportion of that amount.

(3) In any case not falling within sub-paragraph (2)(a) or (b) above, and in any case so falling in which the amount of the relevant cash dividend is substantially greater or substantially less than the market value of the share capital in question on the relevant date, " the appropriate amount in cash " means the market value of the share capital in question on that date or, in a case in which subsection (3) of the principal section applies, a due proportion of that market value.

(4) In this paragraph—

• " the relevant cash dividend ", in a case falling within sub-paragraph (2)(a) above, means the cash dividend mentioned in subsection (1)(a) of the principal section or, in a case falling within sub-paragraph (2)(b) above, means, subject to sub-paragraph (5) below, the cash dividend there mentioned ;

• " the relevant date ", in the case of share capital listed in The Stock Exchange Daily Official List, means the date of first dealing and, in the case of share capital not so listed, means the due date of issue.

(5) Where, in a case falling within sub-paragraph (2)(b) above, the company on the occasion on which it issues the share capital in question also issues a dividend in cash (" the accompanying cash dividend") in respect of the shares in the company in respect of which that share capital is issued, " the relevant cash dividend " shall in this paragraph mean the cash dividend mentioned in sub-paragraph (2)(b) above reduced by the amount of the accompanying cash dividend.

2 (1) Subject to the provisions applied by sub-paragraphs (2) and (3) below, in the preceding paragraph " market value ", in relation to any share capital in a company, means the price which that share capital might reasonably be expected to fetch on a sale in the open market.

(2) Section 44(3) of the [1965 c. 25.] Finance Act 1965 (market value of shares or securities listed in The Stock Exchange Daily Official List) shall, with the omission of the reference to paragraph 22(3) of Schedule 6 to that Act, apply for the purposes of this paragraph as it applies for the purposes of Part III of that Act.

(3) In the case of shares or securities which are not quoted on a recognised stock exchange (within the meaning of the Corporation Tax Acts) at the time when their market value for the purposes of the preceding paragraph falls to be determined, subsection (3) of section 51 of the [1973 c. 51.] Finance Act 1973 shall apply with respect to the determination of their market value for those purposes as it applies with respect to a determination falling within subsection (1) of that section.

Close companies

3 (1) Where a company issues to a close company any share capital to which the principal section applies, the following provisions of this paragraph shall apply as regards that share capital; and in those provisions " the relevant accounting period " means the accounting period of the close company in which the due date of issue falls.

(2) The relevant income of the close company for the relevant accounting period, as determined under paragraph 8 of Schedule 16 to the [1972 c. 41.] Finance Act 1972, and the amount which, under paragraph 9 of that Schedule (read, where appropriate, with paragraph 13 of that Schedule), the relevant income of the close company for that period cannot exceed, shall each be increased by an amount equal to the appropriate amount in cash (or, if it would otherwise be nil, be treated as equal to the appropriate amount in cash).

(3) The amount, if any, which would otherwise be disregarded under paragraph 14(1) of the said Schedule 16 (legal restrictions on distributions) shall be reduced by an amount equal to the appropriate amount in cash.

(4) For the purposes of the definition of " apportioned amount" in paragraph 7(1) of the said Schedule 16 (consequences of apportionment: advance corporation tax), the amount of the company's income apportioned under paragraph 1 of that Schedule shall be treated as reduced by an amount equal to the appropriate amount in cash.

4 Where a close company issues any share capital to which the principal section applies as mentioned in subsection (4), (5) or (6) of the principal section or paragraph 3(1) above (read in each case with subsection (3) of that section), the company shall be treated for the purposes of paragraph 10(1) of Schedule 16 to the [1972 c. 41.] Finance Act 1972 (definition of " distributions " of a close company)—

(a) as if a dividend of an amount equal to the appropriate amount in cash had been paid on the due date of issue ; and

(b) where, in relation to that share capital, " the appropriate amount in cash" has the meaning given by paragraph 1(2) above, as if that dividend had been declared in respect of the accounting period (if any) in respect of which the relevant cash dividend (as defined in paragraph 1(4) above) was declared.

Capital gains tax

5 In applying paragraph 4(3) of Schedule 7 to the [1965 c. 25.] Finance Act 1965 (chargeable gains: reorganisation of share capital) in relation to the issue of any share capital to which the principal section applies, as involving a re-organisation of the company's share capital, there shall be allowed, as consideration given for so much of the new holding as was issued as mentioned in subsection (4), (5) or (6) of the principal section, or paragraph 3(1) above (read in each case with subsection (3) of that section), an amount equal to what is, for that much of the new holding, the appropriate amount in cash ; and this paragraph shall have effect notwithstanding the proviso to the said paragraph 4(3).

Company distributions

6 Any share capital to which the principal section applies which is issued by a company as mentioned in subsection (4), (5) or (6) of that section or paragraph 3(1) above (read in each case with subsection (3) of that section)—

(a) shall, notwithstanding paragraph (c) of subsection (2) of section 233 of the Taxes Act (definition of " distribution "), not constitute a distribution within the meaning of that subsection; and

(b) for the purposes of section 234(1) and 235(1) of that Act (bonus issues following repayment of share capital, and matters to be treated or not treated as repayments of share capital) shall not be treated as issued " as paid up otherwise than by the receipt of new consideration ".

Returns of issues of share capital to which the principal section applies

7 (1) A company shall for each of its accounting periods make, in accordance with this paragraph, returns to the inspector of all share capital to which the principal section applies which was issued by it in that period.

(2) The provisions of paragraph 1(2) and (3) of Schedule 14 to the [1972 c. 41.] Finance Act 1972 (periods for which returns are to be made, and meaning of " a return period ") shall apply for the purposes of this paragraph as they apply for the purposes of that Schedule, but with the substitution of " thirty days " for " fourteen days" in paragraph 1(3):

Provided that, in the case of a return period ending before the date of the passing of this Act, the said paragraph 1(3) as applied by this sub-paragraph shall be read as requiring a company to deliver a return for that period not later than the end of the period of thirty days beginning with that date.

(3) No return need be made under this paragraph by a company for any period in which it has issued no share capital to which the principal section applies.

(4) The return made by a company for any return period shall state—

(a) the date on which any share capital to which the principal section applies issued by it in the period was issued and, if different, the date on which the company was first required to issue it;

(b) particulars of the terms on which any such share capital so issued by it was issued ; and

(c) what is, in relation to any such share capital so issued, the appropriate amount in cash.

(5) If it appears to the inspector that a company ought to have, but has not, made a return for any return period, he may (notwithstanding sub-paragraph (3) above) by notice in writing require the company to make a return for that period within such time (not being less than thirty days) as may be specified in the notice; and a return required to be made under this sub-paragraph shall, if such be the case, state that no share capital to which the principal section applies was issued in the period in question.

(6) As regards any share capital included in a return made under this paragraph by a company, the inspector may, by notice in writing, require the company to furnish him within such time (not being less than thirty days) as may be specified in the notice with such further information relating thereto as he may reasonably require for the purposes of the principal section and this Schedule.

(7) For the purposes of this paragraph (including the provisions applied by sub-paragraph (2) above) an accounting period of a company beginning before 6th April 1975 and ending on or after that date shall be deemed to have begun on that date.

8 In the Table, in section 98 of the [1970 c. 9.] Taxes Management Act 1970 (penalty for failure to make returns etc.) the following shall be added in the first column—

“Paragraph 7(5) and (6) of Schedule 8 to the Finance (No. 2) Act 1975”

and the following shall be added in the second column—

“Paragraph 7(1) to (4) of Schedule 8 to the Finance (No. 2) Act 1975”.

Section 52.

SCHEDULE 9 Amendments of Enactments Relating to Friendly Societies

PART I Amendments of Friendly Societies Act 1974

1 The [1974 c. 46.] Friendly Societies Act 1974 shall be amended in accordance with the following provisions of this Part of this Schedule.

2 For subsection (3) of section 7 (societies which may be registered) substitute—

“(3) A friendly society or branch thereof may not be registered under this Act—

(a) if it contracts with any person for the assurance under tax exempt life or endowment business of more than £104 a year by way of annuity or more than £500 by way of gross sum ; or

(b) if it contracts with any person for the assurance of an annuity or of a gross sum in excess of the limits in section 64 below.

(3A) In the case of a registered friendly society or branch whose rales make no provision for it to carry on life or endowment business consisting of the assurance of gross sums exceeding £1,000 or of the granting of annuities of annual amounts exceeding £208, subsection (3)(a) above shall have effect with the substitution of references to £208 and £1,000 respectively for the references to £104 and £500.”

3 In section 7, at the end add—

“(5) In this section ' life or endowment business' and ' tax exempt life or endowment business ' have the meanings assigned to them by subsections (2) and (3) respectively of section 337 of the [1970 c. 10.] Income and Corporation Taxes Act 1970 ; and subsection (2) of section 64 below shall apply in relation to the limits in subsection (3) above (including, where applicable, those limits as modified by subsection (3A) above) as it applies in relation to the limits in section 64 below.”

4 In section 64(1) (maximum benefits), for the references to £500 and £104 in paragraphs (a) and (b) substitute references to £1,000 and £208 respectively.

PART II Amendments of Friendly Societies Act (Northern Ireland) 1970

5 The [1970 c. 31 (N.I.).] Friendly Societies Act (Northern Ireland) 1970 shall be amended in accordance with the following provisions of this Part of this Schedule.

6 For subsection (3) of section 1 (societies which may be registered), make the same substitution as is provided for in paragraph 2 above, but with the omission of the words " below " and " above ".

7 In section 1, at the end make the same addition as is provided for in paragraph 3 above, but with the substitution of the words " section 55 " for the words " section 64 below" in both places where they occur, and the omission of the word " above " in both places where it occurs.

8 In section 55(1) (maximum benefits), for the references to £500 and £104 in paragraphs (a) and (b) substitute references to £1,000 and £208 respectively.

9 In section 55(2), after " gross sum or annuity " insert " , any approved annuities as defined in section 226(13) of the [1970 c. 10.] Income and Corporation Taxes Act 1970 ".

10 For section 55(9)(a) substitute—

“(a) ' life or endowment business' has the meaning assigned to it by subsection (2) of section 337 of the Income and Corporation Taxes Act 1970.”

Section 54.

SCHEDULE 10 Relief for Increase in Value of Trading Stock and Work in Progress

PART I Income Tax

Entitlement to relief

1 (1) Where a person carries on a trade in respect of which he is chargeable to income tax under Case I of Schedule D and—

(a) the value of his trading stock at the end of his base period (in this Schedule referred to as his " closing stock value ") exceeds

(b) the value of his trading stock at the beginning of that period (in this Schedule referred to as his " opening stock value "),

he shall, subject to the provisions of this Schedule, be entitled to relief under this paragraph by reference to the amount of that excess ; and in the following provisions of this Schedule the amount of that excess is referred to as his " base period increase ".

(2) For the purposes of the Income Tax Acts other than this Schedule, in any case in which a person is entitled to relief under this paragraph—

(a) that person's closing stock value shall be treated as reduced by—

(i) an amount equal to his base period increase less 10 per cent, of his relevant income for his base period; and

(ii) if he began to carry on the trade before the year 1973-74 or has a period of account ending in that year, an amount equal to 5 per cent, of the amount referred to in sub-paragraph (i) above ; and

(b) the value of his trading stock at the beginning of the period of account which begins on the day following that as at which the closing stock value is determined shall be treated as reduced by the amount referred to in paragraph (a)(i) above ;

and all such adjustments shall be made in any assessment to income tax for any relevant year of assessment as are necessary to give effect to any relief under this paragraph.

(3) A person shall not be entitled to relief under this paragraph unless a claim for the relief is made within two years after the end of the year 1974-75.

(4) In this Part of this Schedule "period of account" means a period for which an account is made up in relation to the trade in question.

Base period

2 (1) A person has a base period for the purposes of relief under paragraph 1 above if—

(a) he began to carry on the trade before the beginning of the year 1974-75 and has one or more periods of account ending in that year or in the year 1975-76 ; or

(b) he began to carry on the trade in the year 1974-75 and has one or more periods of account ending in that year.

(2) A person's base period ends with the last day of—

(a) the period or the last of the periods of account ending in the year 1974-75 ; or

(b) if there is no period within paragraph (a) above, the period or the first of the periods of account ending in the year 1975-76.

(3) A person's base period begins 24 months before the day on which it ends except that—

(a) if the base period ends after the year 1974-75, the base period begins 24 months before the end of that year ;

(b) if the date which would be the beginning of the base period under the foregoing provisions is not the first day of a period of account, the base period begins with the first day of the period of account which is current on that date ; and

(c) if the person began to carry on the trade after the date on which the base period would begin under the foregoing provisions, that period begins on the day on which he began to carry on the trade.

3 (1) If a person began to carry on the trade before 6th April 1973 and his base period is longer than 24 months, then, for the purposes of paragraph 1 above—

(a) his base period increase ; and

(b) his relevant income for that period,

shall each be reduced by multiplying them by the fraction of which the numerator is 24 and the denominator is the number of months in the base period.

(2) If a person began to carry on the trade after 5th April 1973 and his base period ends after 5th April 1975, then, for the purposes of paragraph 1 above—

(a) his base period increase ; and

(b) his relevant income for that period,

shall each be reduced by multiplying them by the fraction of which the numerator is the number of months in the period beginning with the day on which he began to carry on the trade and ending with 5th April 1975 and the denominator is the number of months in the base period.

Commencement of trade

4 (1) Subject to the provisions of this paragraph, where a person claims relief under paragraph 1 above and, immediately before the beginning of his base period, he was not carrying on the trade to which the relief relates, he shall be treated for the purposes of that paragraph as having at the beginning of that period trading stock of such value as appears to the inspector to be reasonable and just.

(2) In determining, for the purposes specified in sub-paragraph (1) above, the value of trading stock to be attributed to a person at the beginning of his base period the inspector shall have regard to all the relevant circumstances of the case and, in particular—

(a) to movements during the person's base period in the costs of items of a kind comprised in his trading stock during that period; and

(b) to changes during that period in the volume of the trade in question carried on by that person.

(3) Any Commissioners dealing with an appeal from the decision of an inspector on a claim in a case where, in accordance with sub-paragraph (1) above, the inspector has attributed to a person at the beginning of his base period trading stock of a particular value shall, in hearing and determining the appeal, in so far as it relates to the value of the trading stock to be so attributed, determine such value as appears to them to be reasonable and just, having regard to those factors to which the inspector is required to have regard by virtue of sub-paragraph (2) above.

(4) This paragraph does not apply where the claimant acquired the initial trading stock of the trade in question on a sale or transfer from another person on that person's ceasing to carry on that trade and the stock so acquired is brought in at not less than market value at the beginning of the claimant's base period.

Cessation of trade

5 A person shall not be entitled to relief under paragraph 1 above in respect of any trade if he ceases to carry it on at or before the end of his base period.

PART II Corporation Tax

Entitlement to relief

6 (1) Where a company carries on a trade in respect of which it is within the charge to corporation tax under Case I of Schedule D and—

(a) the value of its trading stock at the end of its base period (in this Schedule referred to as its " closing stock value ") exceeds

(b) the value of its trading stock at the beginning of that period (in this Schedule referred to as its " opening stock value "),

the company shall, subject to the provisions of this Schedule, be entitled to relief under this paragraph by reference to the amount of that excess; and in the following provisions of this Schedule the amount of that excess is referred to as the company's " base period increase ".

(2) For the purposes of the Corporation Tax Acts other than this Schedule, in any case in which a company is entitled to relief under this paragraph—

(a) the company's closing stock value shall be treated as reduced by—

(i) an amount equal to its base period increase less 10 per cent, of its relevant income for its base period ; and

(ii) if it was excluded from section 18 of the [1975 c. 7.] Finance Act 1975 by virtue of subsection (5)(a) of that section (companies with closing stock value under £25,000), an amount equal to 5 per cent, of the amount mentioned in sub-paragraph (i) above ; or

(iii) if relief under that section was excluded wholly or in part by virtue of subsection (9)(b) of that section (" trading stock" not to include work in progress), an amount equal to 5 per cent, or, as the case may be, a corresponding part of 5 per cent, of the amount mentioned in sub-paragraph (i) above ; and

(b) the value of its trading stock at the beginning of the period of account which begins on the day following that as at which the closing stock value is determined shall be treated as reduced by the amount referred to in paragraph (a)(i) above;

and all such adjustments shall be made in any assessment to corporation tax for any relevant accounting period as are necessary to give effect to any relief under this paragraph.

(3) A company shall not be entitled to relief under this paragraph unless a claim for the relief is made within two years after the end of the accounting period, or the last of the accounting periods, ending in the financial year 1974.

Base period

7 (1) A company has a base period for the purposes of relief under paragraph 6 above if it has one or more accounting periods ending in the financial year 1974.

(2) A company's base period ends—

(a) if the accounting period, or the first of the accounting periods, ending in the financial year 1974 ends on the same day as a period of account, with that day ;

(b) in any other case, with the last day of the period of account which is current at the end of that accounting period.

(3) A company's base period begins 24 months before the day on which it ends except that—

(a) if the base period ends after the financial year 1974, the base period begins 24 months before the end of the accounting period ending in that year ;

(b) if the date which would be the beginning of the base period under the foregoing provisions is not the first day of a period of account, the base period begins with the first day of the period of account which is current on that date; and

(c) if the company began to carry on the trade after the date on which the base period would begin under the foregoing provisions, that period begins on the day on which it began to carry on the trade.

8 (1) If a company began to carry on the trade before 1st April 1973 and its base period is longer than 24 months, then, for the purposes of paragraph 6 above—

(a) its base period increase ; and

(b) its relevant income for that period,

shall each be reduced by multiplying them by the fraction of which the numerator is 24 and the denominator is the number of months in the base period.

(2) If a company began to carry on the trade after 31st March 1973, then, for the purposes of paragraph 6 above—

(a) its base period increase ; and

(b) its relevant income for that period,

shall each be reduced by multiplying them by the fraction of which the numerator is the number of months in the period beginning with the day on which it began to carry on the trade and ending with the last day of the accounting period, or the first of the accounting periods, ending in the financial year 1974 and the denominator is the number of months in the base period.

(3) Where a company's 1973 increase in stock value fell to be determined under Schedule 3 to the [1975 c. 7.] Finance Act 1975 by reference to the 1973 reference period as defined in that Schedule, and its base period ends on the same day as that reference period, the amount of the reduction under paragraph 6(2)(a)(i) above shall be diminished by the amount of the reduction under section 18(4)(a) of that Act.

Extra period of account following base period

9 (1) This paragraph has effect where a company has two or more periods of account ending in the financial year 1974.

(2) Without prejudice to the application of the foregoing provisions in relation to the company's base period as determined in accordance with paragraph 7(2) and (3) above, those provisions shall also apply as if the company had a further base period, or further base periods, ending with the last day of each of those periods of account other than the first and beginning at the same time as its base period as determined under paragraph 7(2) and (3).

(3) In the case of any such further base period the reduction to be made in the company's closing stock value shall be only such as is provided for by sub-paragraph (a)(i) of paragraph 6(2) above and its relevant income shall be computed without regard to any reduction under that paragraph.

Commencement of trade

10 Paragraph 4 above shall, with the necessary modifications, have effect in relation to companies claiming relief under paragraph 6 above as it has effect in respect of persons clairning relief under paragraph 1 above.

Cessation of trade

11 A company shall not be entitled to relief under paragraph 6 above if any accounting period ending in or at the same time as its base period ends by virtue of the company—

(a) ceasing to trade or to be, in respect of the trade concerned or of all the trades carried on by the company, within the charge to corporation tax ; or

(b) ceasing to be resident in the United Kingdom ; or

(c) ceasing to be within the charge to corporation tax.

PART III General

Partnerships

12 (1) For the purposes of this Schedule a person shall be treated as ceasing to carry on a trade if there is a change in the persons engaged in carrying it on notwithstanding that he continues to be so engaged immediately after the change.

(2) Where a trade is carried on by persons in partnership and one or more but not all of them are companies, the base period shall be determined in accordance with paragraph 2 above.

(3) Any claim for relief under this Schedule in relation to a trade carried on by persons in partnership shall be a single claim made in the partnership name.

(4) Subsection (7) of section 154 of the Taxes Act (meaning of change in persons carrying on trade) shall apply for the purposes of this paragraph as it applies for the purpose of that section.

Successions

13 (1) Where a company (" the predecessor ") ceases to carry on a trade during the financial year 1973 or 1974 and, on that company so ceasing, another company (" the successor ") begins to carry on that trade, then, if section 252 of the Taxes Act (company reconstructions) has effect in relation to that event, the successor shall be treated for the purposes of this Schedule as having carried on the trade since the predecessor began (or would be treated by virtue of this paragraph as having begun) to do so.

(2) Where there is a change in the persons engaged in carrying on a trade and—

(a) a person engaged in carrying it on immediately before the change continues to be so engaged immediately after the change; and

(b) the trading stock of the trade immediately before the change is the trading stock immediately after the change,

the person or persons engaged in carrying it on immediately after the change shall be treated for the purposes of this Schedule as having carried on the trade since the person or persons so engaged immediately before the change began (or would themselves be treated by virtue of this paragraph as having begun) to do so.

(3) Where at any time an individual ceases, or persons in partnership cease, to carry on a trade and a company begins to carry it on, then, if at that time not less than three-quarters of the ordinary share capital of the company is held by that individual or those persons, the company shall be treated for the purposes of this Schedule as having carried on the trade since that individual or those persons began (or would be treated by virtue of this paragraph as having begun) to do so.

(4) Subsection (7) of section 154 of the Taxes Act (meaning of change in persons carrying on trade) shall apply for the purposes of this paragraph as it applies for the purposes of that section.

Adjustments for special circumstances

14 Where a person has acquired or disposed of trading stock otherwise than in the normal conduct of the trade in question he shall be treated for the purposes of this Schedule as having, at the beginning or end of his base period, trading stock of such value as appears to the inspector (or, on appeal, to the Commissioners) to be reasonable and just having regard to all the relevant circumstances of the case.

Application to professions

15 The foregoing provisions of this Schedule shall, with the necessary modifications, have effect in relation to professions and vocations chargeable under Case II of Schedule D as they have effect in relation to trades chargeable under Case I of that Schedule.

Interpretation

16 (1) Subject to the provisions of this paragraph, "trading stock " means property of any description, whether real or personal, being either—

(a) property such as is sold in the ordinary course of the trade, profession or vocation in question, or would be so sold if it were mature or if its manufacture, preparation or construction were complete ; or

(b) materials such as are used in the manufacture, preparation or construction of any such property as is referred to in paragraph (a) above,

and includes work in progress.

(2) Sub-paragraph (1) above does not apply to—

(a) securities, which for this purpose includes shares and stock ; or

(b) land other than such as is ordinarily sold in the course of the trade, profession or vocation only—

(i) after being developed by the person carrying on the trade, profession or vocation, or

(ii) in the case of a company which is a member of a group, for the purpose of being developed by another company in that group ; or

(c) goods which the person carrying on the trade, profession or vocation has let on hire or hire-purchase.

(3) In sub-paragraph (2) above, references to development are references to the construction or substantial reconstruction of buildings on the land in question and " group " shall be construed in accordance with section 272 of the Taxes Act.

(4) For the purposes of this Schedule the value of a person's trading stock at any time shall be reduced to the extent to which payments on account have been received by that person at or before that time in respect of that stock.

(5) Where the value of a person's trading stock at the beginning of his base period is not calculated on the basis used for the calculation of the value of his trading stock at the end of that period, the value of his trading stock at the beginning of that period shall, for the purposes of this Schedule, be treated as what it would have been if it had been calculated on that basis.

(6) Animals treated as trading stock under Schedule 6 to the Taxes Act (farm animals) shall be so treated for the purposes of this Schedule except that, where a person makes an election for the herd basis under that Schedule which takes effect during the base period or immediately after it, animals forming part of any herd or herds with respect to which the election has effect shall be treated as not having been trading stock of that person at any time during that period.

17 In this Schedule " work in progress " means—

(a) any services performed in the ordinary course of the trade, profession or vocation, the performance of which was wholly or partly completed at the material time and for which it would be reasonable to expect that a charge will subsequently be made ; and

(b) any article produced, and any such material as is used, in the performance of any such services.

18 (1) Subject to sub-paragraph (2) below, in this Schedule " relevant income " means, in relation to a person carrying on a trade, profession or vocation, the income from that trade, profession or vocation computed in accordance with the rules applicable to Case I or, as the case may be, Case II of Schedule D.

(2) In computing relevant income for the purposes of this Schedule—

(a) no account shall be taken of any set-off or reduction of income by virtue of section 168, 171, 174, 177 or 178 of the Taxes Act (losses) ;

(b) no deduction or addition shall be made by virtue of section 73, 74 or 91 of the [1968 c. 3.] Capital Allowances Act 1968 (corporation tax allowances and charges and allowances for capital expenditure on scientific research); and

(c) no account shall be taken of any reduction in the value of trading stock under section 18(4) of the [1975 c. 7.] Finance Act 1975.

19 In any case where a base period consists of a number of complete months and a fraction of a month, or consist only of a fraction of a month, any reference in this Schedule to the number of months in that period shall be construed as including that fraction or as a reference to that fraction, as the case may be.

20 Any reference in this Schedule to a period of account or accounting period ending in any year includes a reference to a period of account or accounting period ending on the same day as that year.

Section 65.

SCHEDULE 11 Double Taxation Agreement with Republic of Ireland Agreement between the Government of the United Kingdom of Great Britain and Northern Ireland and the Government of the Republic of Ireland with Respect to Certain Exemptions from Tax

The Government of the United Kingdom of Great Britain and Northern Ireland and the Government of the Republic of Ireland ;

With a view to extending for a further year the arrangements concerning dividends provided by the Agreement made between them on 2nd May 1973 which amended certain provisions of the Agreement made on 14th April 1926 between the British Government and the Government of the Irish Free State in respect of Double Income Tax;

Have agreed as follows:

ARTICLE 1

Notwithstanding the provisions of Article 4 of the Agreement made on 2nd May 1973 the amendments made by paragraph (2) of Article 1 and Article 2 of that Agreement to paragraphs (a) and (b) of Article 1 of the Agreement made on 14th April 1926 shall have effect as respects dividends paid on or after 6th April 1975 and not later than 5th April 1976.

ARTICLE 2

This Agreement shall enter into force on the exchange of Notes confirming that the necessary steps have been taken to give it the force of law in the United Kingdom and the Republic of Ireland.

In witness whereof the undersigned, duly authorised thereto by their respective Governments, have signed this Agreement. Done in two originals at London this 3rd day of June 1975.

For the Government of the United Kingdom of Great Britain and Northern Ireland:	For the Government of the Republic of Ireland:
Roy Hattersley	Donal O'Sullivan.

Section 70.

SCHEDULE 12 Sub-Contractors in the Construction Industry: Conditions of Issue of Certificates

PART I Conditions to be Satisfied by Individuals

1 The applicant must be carrying on a business in the United Kingdom which satisfies the following conditions, that is to say—

(a) the business consists of or includes the carrying out of construction operations or the furnishing or arranging for the furnishing of labour in carrying out construction operations;

(b) the business is, to a substantial extent, carried on by means of an account with a bank;

(c) the business is carried on with proper records and in particular with records which are proper having regard to the obligations referred to in paragraphs 3 and 4 below; and

(d) the business is carried on from proper premises and with proper equipment, stock and other facilities.

2 The applicant, unless he is the holder of a certificate which is in force under section 30 of the [1971 c. 68.] Finance Act 1971 or under section 70 of this Act, must throughout the period of three years ending with the date of his application for a certificate under section 70 of this Act (in this Part of this Schedule referred to as " the qualifying period "), have been employed in the United Kingdom as the holder of an office or employment or as a person carrying on a trade, profession or vocation.

3 (1) The applicant must, subject to sub-paragraph (2) below, have complied with all obligations imposed on him by or under the [1970 c. 9.] Income Tax Acts or the Taxes Management Act 1970 in respect of periods ending within the qualifying period and with all requests to supply to an inspector accounts of, or other information about, any business of his in respect of periods so ending.

(2) An applicant who has failed to comply with such an obligation or request as is referred to in sub-paragraph (1) above shall nevertheless be treated as satisfying this condition as regards that obligation or request if the Board are of the opinion that in all the circumstances the failure ought to be disregarded for the purposes of his application for a certificate under section 70 of this Act.

4 The applicant must, if any contribution has at any time during the qualifying period become due from him under Part I of the [1965 c. 96.] National Insurance Act 1965 or Part I of the [1966 c. 6 (N.I.).] National Insurance Act (Northern Ireland) 1966, as the case may be, or under Part I of the [1975 c. 14.] Social Security Act 1975 or Part I of the [1975 c. 15.] Social Security (Northern Ireland) Act 1975, as the case may be, have paid the contribution when the contribution became due.

5 The applicant must, if he is required to be registered under the [1916 c. 58.] Registration of Business Names Act 1916 in respect of the business referred to in paragraph 1 above, have been duly registered under that Act in respect of that business.

6 (1) Subject to sub-paragraph (2) below, there must be in force a policy or policies of insurance covering the applicant's relevant public liability in respect of the business referred to in paragraph 1 above and effected by him with an authorised insurer or insurers in a sum not less or not less in the aggregate than £250,000.

(2) Sub-paragraph (1) above does not apply to an applicant whose business consists of the furnishing or arranging for the furnishing of labour in carrying out construction operations or whose business includes any of those activities but does not also include the carrying out of construction operations.

7 There must be reason to expect that the applicant will, in respect of periods ending after the end of the qualifying period, comply with such obligations as are referred to in paragraphs 3 and 4 above and with such requests as are referred to in paragraph 3 above.

PART II Conditions to be Satisfied by Partners Who are Individuals

1 The partner, unless he is the holder of a certificate in force under section 30 of the [1971 c. 68.] Finance Act 1971 or under section 70 of this Act, must throughout the period of three years ending with the date of his application for a certificate under section 70 of this Act (in this Part of this Schedule referred to as " the qualifying period ") have been employed in the United Kingdom as the holder of an office or employment or as a person carrying on a trade, profession or vocation.

2 (1) The partner must, subject to sub-paragraph (2) below, have complied with all obligations imposed on him by or under the [1970 c. 9.] Income Tax Acts or the Taxes Management Act 1970 in respect of periods ending within the qualifying period and with all requests to supply to an inspector accounts of, or other information about, any business of his in respect of periods so ending.

(2) A partner who has failed to comply with such an obligation or request as is referred to in sub-paragraph (1) above shall nevertheless be treated as satisfying this condition as regards that obligation or request if the Board are of the opinion that in all the circumstances the failure ought to be disregarded for the purposes of his application for a certificate under section 70 of this Act.

3 The partner must, if any contribution has at any time during the qualifying period become due from him under Part I of the [1965 c. 96.] National Insurance Act 1965 or Part I of the [1966 c. 6 (N.I.).] National Insurance Act (Northern Ireland) 1966, as the case may be, or under Part I of the [1975 c. 14.] Social Security Act 1975 or Part I of the [1975 c. 15.] Social Security (Northern Ireland) Act 1975, as the case may be, have paid the contribution when the contribution became due.

4 There must be reason to expect that the partner will, in respect of periods ending after the end of the qualifying period, comply with such obligations as are referred to in paragraphs 2 and 3 above and with such requests as are referred to in paragraph 2 above.

PART III Conditions to be Satisfied by Firms

1 The firm's business must be carried on in the United Kingdom and must satisfy the conditions mentioned in paragraph 1(a) to (d) of Part I of this Schedule.

2 (1) Subject to sub-paragraph (2) below, any income tax or corporation tax which became due from any partner in the firm in respect of the firm's business at any time in the period of three years ending with the date of the application for a certificate under section 70 of this Act (in this Part of this Schedule referred to as "the qualifying period ") must have been paid when the tax was demanded.

(2) Where the obligation referred to in sub-paragraph (1) above has not been complied with in the case of any firm, the firm shall nevertheless be treated as satisfying this condition as regards that tax if the Board are of the opinion that in all the circumstances the failure ought to be disregarded for the purposes of the application under section 70 of this Act.

3 The firm must, if it is required to be registered under the [1916 c. 58.] Registration of Business Names Act 1916 in respect of the business referred to in paragraph 1 above, have been duly registered under that Act in respect of that business.

4 (1) Subject to sub-paragraph (2) below, there must be in force a policy or policies of insurance covering the relevant public liability of every partner in the firm in respect of the business referred to in paragraph 1 above and effected on behalf of the firm with an authorised insurer or insurers in a sum not less or not less in the aggregate than £250,000.

(2) Sub-paragraph (1) above does not apply to a firm whose business consists of the furnishing or arranging for the furnishing of labour in carrying out construction operations or whose business includes any of those activities but does not also include the carrying out of construction operations.

5 There must be reason to expect that income tax or corporation tax becoming due in respect of the firm's business in respect of periods ending after the end of the qualifying period will be paid when it is demanded.

PART IV Conditions to be Satisfied by Companies

1 The company must be carrying on (whether or not in partnership) a business in the United Kingdom and that business must satisfy the conditions mentioned in paragraph 1(a) to (d) of Part I of this Schedule.

2 (1) The company must, subject to sub-paragraph (2) below, have complied with all obligations imposed on it by or under the Income Tax Acts, the Corporation Tax Acts or the [1970 c. 9.] Taxes Management Act 1970 in respect of periods ending within the qualifying period and with all requests to supply to an inspector accounts of, or other information about, the business of the company in respect of periods so ending.

(2) A company which has failed to comply with such an obligation or request as is referred to in sub-paragraph (1) above shall nevertheless be treated as satisfying this condition as regards that obligation or request if the Board are of the opinion that in all the circumstances the failure ought to be disregarded for the purposes of the company's application for a certificate under section 70 of this Act.

(3) "Qualifying period ", in this Part of this Schedule, means the period of three years ending with the date of the company's application for a certificate under section 70 of this Act.

3 The company must, if any contribution has at any time during the qualifying period become due from the company under Part I of the [1965 c. 96.] National Insurance Act 1965 or Part I of the [1966 c. 6 (N.I.).] National Insurance Act (Northern Ireland) 1966, as the case may be, or under Part I of the [1975 c. 14.] Social Security Act 1975 or Part I of the [1975 c. 15.] Social Security (Northern Ireland) Act 1975, as the case may be, have paid the contribution when the contribution became due.

4 The company must, if it is required to be registered under the [1916 c. 58.] Registration of Business Names Act 1916 in respect of the business referred to in paragraph 1 above, have been duly registered under that Act in respect of that business.

5 (1) Subject to sub-paragraphs (2) and (3) below, there must be in force a policy or policies of insurance covering the company's relevant public liability in respect of the business referred to in paragraph 1 above and effected by the company with an authorised insurer or insurers in a sum not less or not less in the aggregate than £250,000.

(2) Sub-paragraph (1) above does not apply to a company whose business consists of the furnishing or arranging for the furnishing of labour in carrying out construction operations or whose business includes any of those activities but does not also include the carrying out of construction operations.

(3) Sub-paragraph (1) above does not apply where—

(a) the company carries on the business referred to in paragraph 1 above in partnership with another person;

(b) the company's application for the issue of a certificate under section 70 of this Act is for its issue to the company as a partner in that firm ; and

(c) there is in force a policy or policies of insurance covering the relevant public liability of every partner in that firm in respect of the firm's business in so far as it is required by paragraph 4 of Part III of this Schedule.

6 (1) The company must have complied with any obligations imposed on the company by the following provisions of the [1948 c. 38.] Companies Act 1948 or by the corresponding provisions of the [1960 c. 22 (N.I.).] Companies Act (Northern Ireland) 1960, as the case may be, in so far as those obligations fell to be complied with within the qualifying period, that is to say—

(a) section 107 (registered office and notification of changes therein);

(b) section 124 (annual return of company having a share capital);

(c) section 125 (annual return of company not having a share capital);

(d) section 126 (time for completion of annual return);

(e) section 127 (documents to be annexed to annual return);

(f) section 200(4) (return of directors and secretary and notification of changes therein);

(g) section 407 (registration of constitutional documents and list of directors and secretary of oversea company);

(h) section 409 (notification of changes in constitution or directors or secretary of oversea company);

(i) section 410 (accounts of oversea company);

(j) section 411 (oversea company to state its name and country of incorporation);

(k) section 416 (obligations of companies incorporated in Channel Islands or Isle of Man).

(2) In this paragraph " the corresponding provisions of the Companies Act (Northern Ireland) 1960 " means the following provisions of that Act, that is to say, sections 104, 119, 120, 121, 122, 191(6), 356, 358, 359 and 360.

7 There must be reason to expect that the company will, in respect of periods ending after the end of the qualifying period, comply with such obligations as are referred to in paragraphs 2, 3 and 6 above and with such requests as are referred to in paragraph 2 above.

Section 71.

SCHEDULE 13 Construction Operations

PART I Operations Included

• Construction, alteration, repair, extension, demolition or dismantling of buildings and structures (whether permanent or not), including offshore installations (that is to say, installations which are maintained, or are intended to be established, for underwater exploitation or exploration to which the [1971 c. 61.] Mineral Workings (Offshore Installations) Act 1971 applies.

• Construction, alteration, repair, extension or demolition of any works forming, or to form, part of the land, including (without prejudice to the foregoing) walls, roadworks, power-lines, telegraphic lines (within the meaning of the [1878 c. 76.] Telegraph Act 1878) aircraft runways, docks and harbours, railways, inland waterways, pipe-lines, reservoirs, water-mains, wells, sewers, industrial plant and installations for purposes of land drainage, coast protection or defence.

• Installation in any building or structure of systems of heating, lighting, air-conditioning, ventilation, power supply, drainage, sanitation, water supply or fire protection.

• Internal cleaning of buildings and structures, so far as carried out in the course of their construction, alteration, extension, repair or restoration.

• Operations which form an integral part of, or are preparatory to, or are for rendering complete, such operations as are previously described in this Schedule, including site clearance, earth-moving, excavation, tunnelling and boring, laying of foundations, erection of scaffolding, site restoration, landscaping and the provision of roadways and other access works.

• Painting or decorating the internal or external surfaces of any building or structure.

PART II Operations Excluded

• Drilling for, or extraction of, oil or natural gas.

• Extraction (whether by underground or surface working) of minerals ; tunnelling or boring, or construction of underground works, for this purpose.

• Manufacture of building or engineering components or equipment, materials, plant or machinery ; delivery of any of these things to site.

• Manufacture of components for systems of heating, lighting, air-conditioning, ventilation, power supply, drainage, sanitation, water supply or fire protection ; delivery of any of these things to site.

• The professional work of architects or surveyors, or of consultants in building, engineering, interior or exterior decoration or in the laying-out of landscape.

Section 75.

SCHEDULE 14 Enactments Repealed

PART I Conversion of Revenue Duties

Chapter	Short Title	Extent of Repeal
1. These repeals take effect on 1st January 1976. 2. So far as these repeals relate to any drawback or other relief from a duty replaced by sections 9 to 15 of this Act they shall not have effect in relation to any duty charged before 1st January 1976.
18 & 19 Geo. 5. c. 17.	The Finance Act 1928.	Section 6(1).
15 & 16 Geo. 6 & 1 Eliz. 2. c. 44.	The Customs and Excise Act 1952.	Sections 81 to 84 except section 82(3).
		Sections 86 to 89.
		Section 139.
		Section 141.
		In section 142, subsection (2).
		Section 143.
		In section 144, subsection (2).
		In section 145, subsections (1) and (2) and, in subsection (4), paragraph (a) and the words " or failure ".
1 & 2 Eliz. 2. c. 34.	The Finance Act 1953.	In section 3, subsections (1), (2) and (4).
4 & 5 Eliz. 2. c. 54.	The Finance Act 1956.	Section 2.
6 & 7 Eliz. 2. c. 6.	The Import Duties Act 1958.	In section 3, subsections (1) to (3) and in subsection (5) the words from " as being " to " reason ".
7 & 8 Eliz. 2. c. 51.	The Licensing (Scotland) Act 1959.	In section 199(1), the definition of " sweets ".
8 & 9 Eliz. 2. c. 44.	The Finance Act 1960.	In section 7, in subsection (1) the words from " and subject " to the end and subsections (2) and (5).
1962 c. 44.	The Finance Act 1962.	In section 1, subsection (4) so far as unrepealed.
1963 c. 25.	The Finance Act 1963.	In section 4, subsections (1) and (3).
1964 c. 26.	The Licensing Act 1964.	In section 55(6), the words from " or " to the end.
1964 c. 49.	The Finance Act 1964.	In section 1, subsections (1) to (3) and (6) and (7).
		In section 2, subsections (1) to (4).
		Section 3.
		Schedules 1 to 4.
1971 c. 12.	The Hydrocarbon Oil (Customs & Excise) Act 1971.	In section 2, in subsection (2) and in subsection (4) the words " customs or".
		In section 4, subsection (1).
		In section 6, paragraph (a).
		In section 7, in subsection (1) and in subsection (5) the words " customs or".
		In section 9, the words " customs or".
		In section 12(1), the words " customs or".
		In section 13(1), the words " customs or".
		In section 18(1)(c), the words " customs or ".
		In Schedule 3, the words from " In this Part" to " hydrocarbon oil".
1972 c. 41.	The Finance Act 1972.	In section 57, subsections (1) and (2).
1972 c. 68.	The European Communities Act 1972.	In section 6(5), in paragraph (a), the words " as well as section 88(4) of that Act as so amended ".
		In Schedule 4, in paragraph 2(2) the words from " and in section 86 " to the end, in paragraph 2(5) the words from "and in section 88(1) " to the end and paragraph 2(6).
1973 c. 51.	The Finance Act 1973.	In section 1, subsection (1) except so far as it relates to Schedule 5 to that Act and subsections (2), (3) and (9).
		Schedules 1 to 4, 6 and 7.
1974 c. 30.	The Finance Act 1974.	In section 1, subsections (1) to (5).
1975 c. 45.	The Finance (No. 2) Act 1975.	In section 1, subsections (1) to (5).

PART II Other Customs and Excise Repeals

Chapter	Short Title	Extent of Repeal
1. The repeals in the Vehicles (Excise) Act 1971 have effect as from 16th April 1975. 2. The repeals of paragraphs 18 and 19 of Schedule 2 to the Betting and Gaming Duties Act 1972 and of section 59 of the Finance Act 1972 do not have effect in relation to gaming licences for a period ending before 1st October 1975.
1971 c. 10.	The Vehicles (Excise) Act 1971.	In section 4(1)(e), the words " not being tramcars used for the conveyance of passengers ".
		In paragraph 1 of Part I of Schedule 2, the words " of any description " and "in relation to carriages of that description ".
1972 c. 25.	The Betting and Gaming Duties Act 1972.	In section 16(2), in the definition of " rateable value ", the words from " but" to " that Schedule ".
		In Schedule 2, paragraphs 18 and 19.
		In Schedule 3, paragraph 4(3).
1972 c. 41.	The Finance Act 1972.	Section 59.
1974 c. 30.	The Finance Act 1974.	Section 3.

PART III Payment of Tax

Chapter	Short Title	Extent of Repeal
These repeals do not have effect in relation to tax charged by assessments notice of which was issued before the passing of this Act.
1970 c. 9.	The Taxes Management Act 1970.	In Schedule 4, paragraph 9(1).
1971 c. 68.	The Finance Act 1971.	In Schedule 6, paragraph 86.
		In Schedule 14, in Part II, the entry relating to section 55(1)(b) of the Taxes Management Act 1970.
1972 c. 41.	The Finance Act 1972.	In Schedule 24, paragraphs 8 and 9.

PART IV Miscellaneous

Chapter	Short Title	Extent of Repeal
1. The repeals in section 98 of the Taxes Management Act 1970 and the repeals of sections 29 to 31 of and Schedule 5 to the Finance Act 1971, of section 25 of the Finance Act 1974, and of section 39 of the Finance (No. 2) Act 1975 take effect on the day which is appointed under section 68 of this Act for the purposes of Chapter II of Part III of this Act except in relation to sums payable before that day under the said section 29. 2. The repeal in section 76(3) of the Finance Act 1972 has effect in relation to interest paid or income arising after 29th April 1975.
1965 c. 25.	The Finance Act 1965.	Section 27(3).
		Schedule 9 so far as unrepealed.
1966 c. 18.	The Finance Act 1966.	Section 29(4) and (9), so far as unrepealed.
		In Schedule 8, Part II so far as unrepealed.
1969 c. 32.	The Finance Act 1969.	Section 41(8).
1970 c. 9.	The Taxes Management Act 1970.	In section 98, in the Table, the words " Regulations under section 29 of the Finance Act 1971 ", " Section 30(4) of the Finance Act 1971 ", and " Regulations under section 30(7) of the Finance Act 1971 ".
		In Schedule 3, in rule 6, in column 2, the second paragraph.
1970 c. 10.	The Income and Corporation Taxes Act 1970.	Section 7.
		In section 343(3), in paragraph (ii) of the proviso, the words from " not being " to " this Act".
		In Schedule 15, paragraph 3(2) and (3).
1971 c. 68.	The Finance Act 1971.	Sections 29 to 31.
		Schedule 5.
		In Schedule 6, paragraph 4, paragraph 12(c) and (d) and, in paragraph 40(f), the words from " not being " to " this Act"
1972 c. 41.	The Finance Act 1972.	In section 52(4)(c), the word " caravans ".
		In section 76(3), the words " which is not a trading company ".
		In section 93(2)(b), the words " five-eighths or " and " other ".
1973 c. 51.	The Finance Act 1973.	Section 9.
1974 c. 30.	The Finance Act 1974.	In section 14, subsections (2), (4) and (5).
		Section 25.
1975 c. 7.	The Finance Act 1975.	Section 2.
1975 c. 45.	The Finance (No. 2) Act 1975.	Section 39.