Finance Act 2004

Part 2 U.K. Income Tax, Corporation Tax and Capital Gains Tax

(1) Transfer Pricing

These repeals have effect in accordance with section 37 of this Act.
Short title and chapter	Extent of repeal
Income and Corporation Taxes Act 1988 (c. 1)	In section 494— (a)  in subsection (2), paragraph (d) and the word “and” preceding it, and the third sentence; (b)  subsection (2B). In Schedule 24, paragraph 20. In Schedule 28AA— (a)  in paragraph 5, in sub-paragraph (1), the words “(but subject to sub-paragraph (2) below)” and sub-paragraphs (2) to (6); (b)  in paragraph 11, sub-paragraph (2), in sub-paragraph (3), paragraph (e) and the word “and” preceding it and, in sub-paragraph (4), the words “(2) or”.
Finance Act 1998 (c. 36)	In Schedule 17, paragraph 24.
Finance Act 2002 (c. 23)	In Schedule 29, in paragraph 92(3), paragraph (c) and the word “and” preceding it.
Finance Act 2003 (c. 14)	In Schedule 33, paragraph 13(10).

(2) Thin Capitalisation

These repeals have effect in accordance with section 37 of this Act.
Short title and chapter	Extent of repeal
Income and Corporation Taxes Act 1988 (c. 1)	Section 74(1)(n). In section 209— (a)  in subsection (2), paragraph (da) and, in paragraph (e), the words “or (da)”; (b)  in subsection (3), the words “, (da)”; (c)  in subsection (3A)(a), the words “, (da)”; (d)  subsections (8A) to (8F). In section 212— (a)  in subsection (1)(b), the words “paragraph (da) of section 209(2) or”; (b)  in subsection (3), the words “Without prejudice to subsection (4) below,” and the words from “and does not apply” to the end of the subsection; (c)  subsection (4). Section 710(3)(a). In section 730A(5), the words “and (da)”
Finance Act 1995 (c. 4)	Section 87(1), (3), (4) and (5).
Finance Act 1996 (c. 8)	In Schedule 9, in paragraph 11A— (a)  sub-paragraphs (2)(a) and (3)(a) ; (b)  in sub-paragraph (3)(b), the words “in a case falling within paragraph (b) of that sub-paragraph,”; (c)  in sub-paragraph (5)(b), the words “the terms would have been the same, except that”.

(3) Expenses: Companies with Investment Business and Insurance Companies

These repeals have effect in accordance with section 42 of this Act.
Short title and chapter	Extent of repeal
Income and Corporation Taxes Act 1988 (c. 1)	In section 77(1), the words from “and the incidental costs” onwards.
Finance Act 1989 (c. 26)	In section 85(2), the word “or” at the end of paragraph (a) and paragraphs (c) to (d). Section 86(5), (5A) and (7).
Finance Act 1990 (c. 29)	Section 44. In Schedule 7, paragraph 1.
Finance Act 1991 (c. 31)	Section 47. In Schedule 7, paragraph 13(1).
Finance Act 1995 (c. 4)	In Schedule 8, paragraphs 7 and 23(3).
Finance Act 1996 (c. 8)	Section 164(1), (2) and (6). In Schedule 11, in paragraph 4(3), the word “net”. In Schedule 14, paragraph 8. In Schedule 31, paragraph 3 (1) and (2).
Finance Act 1997 (c. 16)	Section 67(4)(a).
Finance (No. 2) Act 1997 (c. 58)	In Schedule 3, paragraph 1. In Schedule 6, paragraph 2.
Finance Act 1998 (c. 36)	In Schedule 3, paragraph 9. In Schedule 7, in paragraph 1 the words “86(2) definition of “deductible”,”.
Finance Act 2000 (c. 17)	In Schedule 27, paragraph 7.
Capital Allowances Act 2001 (c. 2)	In Schedule 2, paragraphs 15 and 70.
Finance Act 2001 (c. 9)	In Schedule 23, paragraph 2.
Finance Act 2003 (c. 14)	In Schedule 33, paragraphs 6(6), 8 (1) and 12(1).

(4) Loan Relationships

These repeals have effect in accordance with Schedule 8 to this Act.
Short title and chapter	Extent of repeal
Finance Act 1996 (c. 8)	In Schedule 9— (a)  paragraph 18(3A); (b)  in paragraph 20(1), paragraph (c) and the word “and” preceding it; (c)  paragraph 20(2).

(5) Derivative Contracts

This repeal has effect in accordance with Schedule 9 to this Act.
Short title and chapter	Extent of repeal
Finance Act 2002 (c. 23)	In Schedule 26, in paragraph 33(4)(b), the words “issued by the Financial Services Authority”.

(6) Amendment of Enactments That Operate By Reference To Accounting Practice

1 These repeals have effect in accordance with section 52(3) of this Act.
2 The repeals of section 92 of the Finance Act 1996, section 65(7) of the Finance Act 1999 and sections 72 and 73 of, and paragraph 5 of Schedule 23 to, the Finance Act 2002 have effect subject to the provisions of paragraph 9(2) and (3) of Schedule 10 to this Act.
3 The repeals of sections 93, 93A and 93B of the Finance Act 1996 and sections 75 to 77 of, and paragraph 18 of Schedule 27 to, the Finance Act 2002 have effect subject to the provisions of paragraph 11(2) and (3) of Schedule 10 to this Act.
Short title and chapter	Extent of repeal
Income and Corporation Taxes Act 1988 (c. 1)	In section 730A(6), paragraph (b) (but not the word “and” following it). Section 730BB(12).
Finance Act 1996 (c. 8)	In section 84— (a)  in subsection (1) the words “in accordance with an authorised accounting method”; (b)  subsections (2) and (4A). Section 84A(4) to (7). Section 88(2)(b) and (3)(b). Section 88A(5). Section 90. Sections 92 to 94 Section 96(3). In section 103(1)— (a)  the definition of “authorised accounting method”, “authorised accruals basis of accounting” and “authorised mark to market basis of accounting”; (b)  the definition of “statutory accounts”. Section 103(5). In Schedule 9— (a)  paragraph 5 (1) to (2A); (b)  in paragraph 5A(9), the words “by virtue of paragraph 5(2) above”; (c)  in paragraph 5A(15), the words “under paragraph 5(1)”; (d)  in paragraph 6(2), the words “in accordance with that accounting method”; (e)  in paragraph 6C(2), the words “by virtue of paragraph 5(2) above”; (f)  in paragraph 9(2), the word “or” at the end of paragraph (b) ; (g)  paragraph 10A(5); (h)  in paragraph 12(2A), paragraph (b) and the word “and” preceding it; (i)  in paragraph 13(1), the words “given by the authorised accounting method used”; (j)  in paragraph 14(1), the words “given by an authorised accounting method”; (k)  in paragraph 16(2), the words “, notwithstanding the provisions of any authorised accounting method,”; (l)  paragraph 19(10). In Schedule 10, in paragraphs 2A (1) and 2B (1), the words “, notwithstanding section 84(2)(b) of this Act”.
Finance Act 1997 (c. 16)	Section 83 (1) to (5).
Finance Act 1999 (c. 16)	Section 65(7).
Capital Allowances Act 2001 (c. 1)	In Schedule 2, paragraphs 88 and 89.
Finance Act 2002 (c. 23)	Sections 72 to 77. In section 103(4)— (a)  in paragraph (b), the words “93(2),”; (b)  in paragraph (d), the words “sections 84(2)(b) and 85(2)(a),”. In Schedule 23, paragraphs 4, 5 and 8. In Schedule 24, paragraphs 1 to 6. In Schedule 25, paragraphs 4 to 6, 10 and 12. In Schedule 26— (a)  in paragraph 15(1), the words “in accordance with an authorised accounting method and”; (b)  paragraph 15(2), (3) and (6); (c)  paragraph 16(4) to (7); (d)  paragraph 22 (1) to (4); (e)  in paragraph 22(5), paragraph (b) and the word “and” preceding it; (f)  paragraph 22A(5); (g)  in paragraph 23(2) and (3), the words “given by the authorised accounting method used”; (h)  in paragraph 25(1), the words “given by an authorised accounting method”; (i)  in paragraph 31A(2), the words “, notwithstanding the provisions of any authorised accounting method,”. (j)  in paragraphs 32 (1) and 33 (1), the words “, notwithstanding paragraph 15”; (k)  paragraph 52; (l)  in paragraph 54 (1) the definitions of “authorised accounting method”, “authorised accruals basis of accounting” and “authorised mark to market basis of accounting” and of “statutory accounts”. In Schedule 27, paragraph 18.
Finance Act 2003 (c. 14)	In Schedule 27, paragraph 3.

(7) Construction Industry Scheme

These repeals have effect in accordance with section 77 of this Act.
Short title and chapter	Extent of repeal
Taxes Management Act 1970 (c. 9)	In section 98, in the Table— (a)  in the first column, the entry relating to section 561(8) of the Income and Corporation Taxes Act 1988; (b)  in the second column, the entry relating to regulations under section 566(1), (2) or (2A) of that Act.
Income and Corporation Taxes Act 1988 (c. 1)	In Part 13, Chapter 4.
Companies Act 1989 (c. 40)	Section 139(5). In Schedule 10, paragraph 38(3).
Finance Act 1994 (c. 9)	In Schedule 17, paragraph 5.
Finance Act 1995 (c. 4)	Section 139. Schedule 27.
Finance Act 1996 (c. 8)	Section 72(3). Section 178.
Finance Act 1997 (c. 16)	Section 54(5).
Finance Act 1998 (c. 36)	Section 55(2). Section 57. Schedule 8.
Government of Wales Act 1998 (c. 38)	In Schedule 16, paragraph 58.
Finance Act 1999 (c. 16)	Section 53.
Finance Act 2002 (c. 23)	In section 40— (a)  subsection (1), (b) subsection (3), and (c)  in subsection (4), the second sentence.
Income Tax (Earnings and Pensions) Act 2003 (c. 1)	In Schedule 6, paragraphs 58, 59, 60 and 61.
Finance Act 2003 (c. 14)	Section 147(1).

(8) Exemption For Loaned Computers

This repeal has effect in accordance with section 79(4) of this Act.
Short title and chapter	Extent of repeal
Income Tax (Earnings and Pensions) Act 2003 (c. 1)	Section 320(4) and (5).

(9) Vans

The repeals in section 171 of, and Schedule 1 to, the Income Tax (Earnings and Pensions) Act 2003 have effect for the year 2007-08 and subsequent years of assessment and the other repeals have effect for the year 2005-06 and subsequent years of assessment.
Short title and chapter	Extent of repeal
Income Tax (Earnings and Pensions) Act 2003 (c. 1)	In section 114(2), the word “and” following paragraph (b). In section 171, in subsection (2), the words “or van” and, in subsection (3), the words “or a van”. In Part 2 of Schedule 1, in the entry relating to the age of a car or van (in Chapter 6 of Part 3) and in the entry relating to the date of first registration (in relation to a car or van) (in Chapter 6 of Part 3), the words “or van”. In Part 3 of Schedule 7, paragraph 24.

(10) Income Tax Relief Where National Insurance Contributions Met By Employee

1 These repeals come into force in accordance with section 85(2) of this Act.
2 The repeal of section 119A(8) of the Taxation of Chargeable Gains Act 1992 has effect subject to paragraph 6(4) of Schedule 16 to this Act.
3 The repeals in paragraphs 21(4) and 22C(4) of Schedule 23 to the Finance Act 2003 have effect subject to paragraph 5(6) of Schedule 16 to this Act.
Short title and chapter	Extent of repeal
Taxation of Chargeable Gains Act 1992 (c. 12)	Section 119A(8).
Income Tax (Earnings and Pensions) Act 2003 (c. 1)	Section 480(7). In section 484(7), the definition of “the Contributions and Benefits Act” and the word “and” preceding it.
Finance Act 2003 (c. 14)	In Schedule 23, in paragraphs 21(4) and 22C(4), the words “increased by any amounts deducted under sections 481 and 482 of that Act”.

(11) Employment-related Securities and Options: Other Provisions

1 The repeals in sections 429, 443, 446R and 449 of the Income Tax (Earnings and Pensions) Act 2003 have effect in accordance with section 86(8) of this Act.
2 The remaining repeals have effect in accordance with section 88(11) of this Act.
Short title and chapter	Extent of repeal
Income Tax (Earnings and Pensions) Act 2003 (c. 1)	Section 421G. Section 429(5). Section 443(5). Section 446R(5). Section 449(4). In section 519(1), the word “and” at the end of paragraph (a). In section 524(1), the word “and” at the end of paragraph (a). Section 701(2)(c)(ii).
Finance Act 2003 (c. 14)	In Schedule 21, paragraph 18(4).

(12) Minor Amendments of or Connected with the Income Tax (Earnings and Pensions) Act 2003

1 The repeals of paragraph 5(1ZA) of Schedule 20 to the Finance Act 2000, paragraph 5(1A) of Schedule 22 to the Finance Act 2001 and paragraph 245 of Schedule 6 to the Income Tax (Earnings and Pensions) Act 2003 have effect in accordance with paragraph 7(3) of Schedule 17 to this Act.
2 The repeal of paragraph 166(3) of Schedule 6 to the Income Tax (Earnings and Pensions) Act 2003 has effect in accordance with paragraph 5(2) of Schedule 17 to this Act.
Short title and chapter	Extent of repeal
Finance Act 2000 (c. 17)	In Schedule 20, paragraph 5(1ZA).
Finance Act 2001 (c. 9)	In Schedule 22, paragraph 5(1A).
Income Tax (Earnings and Pensions) Act 2003 (c. 1)	Section 577(3). In section 677(1), in Part 2 of Table B, the entry relating to compensation payments where child support reduced because of a change in legislation. In Schedule 6— (a)  paragraph 166(3); (b)  paragraph 245.

(13) Enterprise Incentives

1 The repeal in section 303A of the Taxes Act 1988 has effect in accordance with paragraph 8(2) of Schedule 18 to this Act.
2 The repeals in Schedule 28B to the Taxes Act 1988, and in section 73 of the Finance Act 1998, have effect in accordance with paragraph 16 of Schedule 19 to this Act.
3 The repeals of section 151A(3) of, in paragraph 2(4) of Schedule 5B to, and of Schedule 5C to, the Taxation of Chargeable Gains Act 1992, and the repeals in the Finance Act 1995, have effect in accordance with paragraph 7 of Schedule 19 to this Act.
4 The repeal in paragraph 14A of Schedule 5B to the Taxation of Chargeable Gains Act 1992 has effect in accordance with paragraph 18(2) of Schedule 18 to this Act.
5 The repeals in the Income Tax (Earnings and Pensions) Act 2003 have effect in accordance with section 96 of this Act.
6 The remaining repeals have effect in relation to shares issued on or after 17th March 2004.
Short title and chapter	Extent of repeal
Income and Corporation Taxes Act 1988 (c. 1)	In section 289(1)(a), the words “wholly in cash”. In section 289A(8)(b), the words “it is shown that”. In section 293(4A), the words “which is in administration or receivership”. Section 303A(6)(a). In section 308— (a)  in subsection (1)(a), the words from “and, except” to “relevant period”, (b)  subsection (2)(a) to (c), (c)  in subsection (3)(a), the words “it is shown that”, (d)  subsection (3)(b) and the word “and” immediately preceding it, (e)  in subsection (4), the words “within the relevant period” and “it is shown that”, (f)  subsection (5). In Schedule 28B— (a)  in paragraph 3(3), the words from “and for the purposes” to the end, (b)  paragraph 6(5), (c)  paragraph 10(3)(a) to (c), (d)  in paragraph 10(4), the words “it is shown”, the first “that” in paragraph (a) and the word “that” in paragraph (b), (e)  in paragraph 10(5), the words “it is shown that”, (f)  paragraph 10(6), (g)  in paragraph 11(4), the words “it is shown”, the first “that” in paragraph (a) and the word “that” in paragraph (b).
Taxation of Chargeable Gains Act 1992 (c. 12)	Section 151A(3). In Schedule 5B— (a)  in paragraph 1(2)(a), the words “wholly in cash”, (b)  in paragraph 2(4), the words “or Schedule 5C”, (c)  paragraph 14A(6)(a). Schedule 5C.
Finance Act 1995 (c. 4)	Section 72(4). Schedule 16.
Finance Act 1998 (c. 36)	In section 73— (a)  subsection (2), (b)  in subsection (3), the words from “and after paragraph (b)” to the end, (c)  in subsection (4), the words from “and after” to the end. In Schedule 13— (a)  paragraph 1(1)(a), (b)  paragraph 21.
Finance Act 2000 (c. 17)	In Schedule 15— (a)  paragraph 21(2)(a) to (c), (b)  in paragraph 24(1), the words “which is in administration or receivership”.
Income Tax (Earnings and Pensions) Act 2003 (c. 1)	In Schedule 5, paragraph 11(2)(a) to (c) and (3).

(14) Chargeable Gains: Gifts Relief etc

1 The repeals in section 260 of the Taxation of Chargeable Gains Act 1992 and in the Finance Act 1995 have effect in accordance with paragraph 10(8) of Schedule 21 to this Act.
2 The repeal in section 281 of the Taxation of Chargeable Gains Act 1992 has effect in relation to disposals on or after the passing of this Act.
Short title and chapter	Extent of repeal
Taxation of Chargeable Gains Act 1992 (c. 12)	Section 260(6A) and (6B). In section 281(3)(c), the words “nor dealt in on the Unlisted Securities Market”.
Finance Act 1995 (c. 4)	Section 72(6). In Schedule 13, paragraph 4(2).

(15) Chargeable Gains: Private Residence Relief

This repeal has effect in accordance with paragraph 7(2) of Schedule 22 to this Act.
Short title and chapter	Extent of repeal
Taxation of Chargeable Gains Act 1992 (c. 12)	In section 223(4)(a), the words “or those provisions as applied by section 225”.

(16) Manufactured Dividends

1 The repeal of paragraph 2A(1A)(a) of Schedule 23A to the Taxes Act 1988 has effect in accordance with paragraph 2(7) of Schedule 24 to this Act.
2 The other repeals in paragraph 2A(1A) of Schedule 23A to the Taxes Act 1988 and the repeals in paragraph 2A(1B) of that Schedule have effect in accordance with paragraph 2(11) of Schedule 24 to this Act.
3 The repeal of section 108(2) of the Finance Act 2002 has effect in accordance with paragraph 2(7) and (9) of Schedule 24 to this Act.
Short title and chapter	Extent of repeal
Income and Corporation Taxes Act 1988 (c. 1)	In Schedule 23A, in paragraph 2A— (a)  in sub-paragraph (1A), paragraph (a), paragraph (c) and the word “or” before it and the words following paragraph (c) ; (b)  in sub-paragraph (1B), paragraph (c) and the word “or” before it; (c)  in sub-paragraph (4), in paragraph (a), the words “or corporation tax” and in paragraph (b), the words “or, as the case may be, total profits”.
Finance Act 2002 (c. 23)	Section 108(2).

(17) Life Policies etc.: Restriction of Corresponding Deficiency Relief

This repeal has effect in accordance with section 140(4) to (6) of this Act.
Short title and chapter	Extent of repeal
Finance Act 2001 (c. 9)	In Schedule 28, paragraph 13.

(18) Offshore Funds

1 These repeals have effect in accordance with section 145(2) of this Act.
2 The repeal of paragraph 3 of Schedule 10 to the Finance Act 1996 has effect subject to paragraph 1(3) and (4) of Schedule 26 to this Act.
3 The repeal of paragraph 35 of Schedule 26 to the Finance Act 2002 has effect subject to paragraph 2(3) and (4) of Schedule 26 to this Act.
Short title and chapter	Extent of repeal
Income and Corporation Taxes Act 1988 (c. 1)	Section 759 (1) and (1A). In section 760— (a)  in subsection (3), paragraphs (b) to (d) and the word “or” preceding paragraph (b) ; (b)  subsections (4) to (7). In Schedule 27— (a)  paragraph 10; (b)  in paragraph 11 (1) and (4), the words “section 760(3) and”; (c)  paragraphs 12 and 13; (d)  in paragraph 16(1), the words “by a trustee or officer thereof”.
Taxation of Chargeable Gains Act 1992 (c. 12)	In Schedule 10, paragraph 14(46).
Finance Act 1995 (c. 4)	Section 134 (1) to (3) and (8).
Finance Act 1996 (c. 8)	In Schedule 10, paragraph 3.
Finance Act 2002 (c. 23)	In Schedule 26, paragraph 35.

(19) Meaning of “Offshore Installation”

1 The repeal in section 298 of the Taxes Act 1988 has effect in accordance with paragraph 4(5) and (6) of Schedule 27 to this Act.
2 The repeal in Schedule 28B to the Taxes Act 1988 has effect in accordance with paragraph 5(5) and (6) of Schedule 27 to this Act.
3 The repeal in Schedule 15 to the Finance Act 2000 has effect in accordance with paragraph 6(5) and (6) of Schedule 27 to this Act.
4 The repeal in Schedule 22 to the Finance Act 2000 has effect in accordance with paragraph 7(2) of Schedule 27 to this Act.
5 The repeals in the Capital Allowances Act 2001 have effect in accordance with paragraph 11 (1) of Schedule 27 to this Act.
6 The repeal in section 305 of the Income Tax (Earnings and Pensions) Act 2003 has effect in accordance with paragraph 16 of Schedule 27 to this Act.
7 The repeal in Schedule 5 to the Income Tax (Earnings and Pensions) Act 2003 has effect in accordance with paragraph 17(6) and (7) of Schedule 27 to this Act.
Short title and chapter	Extent of repeal
Income and Corporation Taxes Act 1988 (c. 1)	In section 298(5), the definition of “oil rig”. In paragraph 5 (1) of Schedule 28B, the definition of “oil rig”.
Finance Act 2000 (c. 17)	In paragraph 28(6) of Schedule 15, the definition of “oil rig”. In Schedule 22, paragraph 20(5).
Capital Allowances Act 2001 (c. 2)	Section 94(2)(b) and (3). Section 153(3).
Income Tax (Earnings and Pensions) Act 2003 (c. 1)	In section 305(6), the definition of “offshore installation”. In paragraph 18(8) of Schedule 5, the definition of “oil rig”.