Finance Act 2002

1. Introductory Text

2. Part 1 Excise duties

   1. Tobacco products duty

      1. 1. Rates of tobacco products duty

   2. Alcoholic liquor duties

      1. 2. Rates of duty on cider

      2. 3. Duty on beverages made with spirits to be at spirits rate

      3. 4. Reduced rates of duty on beer from small breweries

   3. Hydrocarbon oil duties

      1. 5. Biodiesel

      2. 6. Regulating trade in rebated heavy oil etc

      3. 7. Fuel substitutes

   4. Betting and gaming duties

      1. 8. Amusement machine licences: excepted machines

      2. 9. Amusement machine licence duty: rates

      3. 10. Rates of gaming duty

      4. 11. Gaming duty to be chargeable in respect of sic bo and three card poker

      5. 12. Pool betting duty etc

      6. 13. General betting duty: spread bets

      7. 14. General betting duty: overseas bet-brokers

   5. Vehicle excise duty

      1. 15. Cars registered on or after 1st March 2001: rates of duty

      2. 16. Vans registered on or after 1st March 2001: rates of duty

      3. 17. Disclosure of information for vehicle excise duty exemptions

      4. 18. Motorcycles (and motorcycle trade licences): rates of duty

      5. 19. Registered vehicles etc

      6. 20. Calculating cylinder capacity of vehicles

   6. General

      1. 21. Drawback of excise duty

3. Part 2 Value added tax

   1. 22. Disallowance of input tax where consideration not paid

   2. 23. Flat-rate scheme

   3. 24. Invoices

   4. 25. Relief from VAT on acquisition if importation would attract relief

4. Part 3 Income tax, corporation tax and capital gains tax

   1. Chapter 1 Charge and rate bands

      1. Income tax

         1. 26. Charge and rates for 2002-03

         2. 27. Indexed rate bands for 2002-03: PAYE deductions etc

         3. 28. Personal allowance for 2003-04 for those aged under 65

         4. 29. Personal allowances for 2003-04 for those aged 65 or over

      2. Corporation tax

         1. 30. Charge and main rate for financial year 2003

         2. 31. Small companies’ rate and fraction for financial year 2002

         3. 32. Corporation tax starting rate and fraction for financial year 2002

   2. Chapter 2 Other provisions

      1. Employment income and related matters

         1. 33. Employer-subsidised public transport bus services

         2. 34. Car fuel: calculation of cash equivalent of benefit

         3. 35. Statutory paternity pay and statutory adoption pay

         4. 36. Exemption of minor benefits: application to non-cash vouchers

         5. 37. Minor amendments to Schedule E charge

         6. 38. Provision of services through an intermediary: minor amendments

         7. 39. Employee share ownership plans: minor amendments

         8. 40. Treatment of deductions from payments to sub-contractors

         9. 41. Parliamentary visits to EU candidate countries: tax treatment of members’ expenses

      2. Chargeable gains

         1. 42. Reallocation within group of gain or loss accruing under section 179

         2. 43. Roll-over of degrouping charge on business assets

         3. 44. Exemptions for disposals by companies with substantial shareholding

         4. 45. Share exchanges and company reconstructions

         5. 46. Taper relief: holding period for business assets

         6. 47. Taper relief: minor amendments

         7. 48. Use of trading losses against chargeable gains

         8. 49. Election to forgo roll-over relief on transfer of business

         9. 50. Shares acquired on same day: election for alternative treatment

         10. 51. Deduction of personal losses from gains treated as accruing to settlors

         11. 52. Capital gains tax: variation of dispositions taking effect on death

      3. New reliefs

         1. 53. Tax relief for expenditure on research and development

         2. 54. Tax relief for expenditure on vaccine research etc

         3. 55. Gifts of medical supplies and equipment

         4. 56. R&D tax relief for small and medium-sized enterprises: minor and consequential amendments

         5. 57. Community investment tax relief

         6. 58. Relief for community amateur sports clubs

      4. Capital allowances and related matters

         1. 59. Cars with low carbon dioxide emissions

         2. 60. Expense of hiring cars with low carbon dioxide emissions

         3. 61. Plant or machinery for gas refuelling station: first-year allowances

         4. 62. Expenditure on green technologies: leasing

         5. 63. First-year allowances for expenditure wholly for a ring fence trade

      5. Computation of profits

         1. 64. Adjustment on change of basis

         2. 65. Postponement of change to mark to market in certain cases

         3. 66. Election to continue postponement of mark to market

         4. 67. Mark to market: miscellaneous amendments

         5. 68. Expenditure involving crime

      6. Financial instruments

         1. 69. Qualifying contracts for unallowable purposes

         2. 70. Forward premiums and discounts under currency contracts

      7. Loan relationships

         1. 71. Accounting method where rate of interest etc is reset

         2. 72. Convertible securities etc: loan relationships

         3. 73. Convertible securities etc: issuing company not to be connected company

         4. 74. Convertible securities etc: debtor relationships

         5. 75. Asset-linked loan relationships

         6. 76. Asset-linked loan relationships involving guaranteed returns

         7. 77. Loan relationships ceasing to be within section 93 of the Finance Act 1996

         8. 78. Guaranteed returns on transactions involving futures and options

      8. Foreign exchange gains and losses, loan relationships and currency

         1. 79. Forex and exchange gains and losses from loan relationships etc

         2. 80. Corporation tax: currency

         3. 81. Transitional provision

      9. Loan relationships and other money debts

         1. 82. Loan relationships: general amendments

      10. Derivative contracts

          1. 83. Derivative contracts

      11. Intangible fixed assets

          1. 84. Gains and losses from intangible fixed assets of company

      12. Insurance

          1. 85. Gains of insurance company from venture capital investment partnership

          2. 86. Lloyd’s underwriters

          3. 87. Life policies etc: chargeable events

      13. International matters

          1. 88. Extension of power to give effect to double taxation arrangements

          2. 89. Controlled foreign companies: territorial exclusions from s.748 exemptions

          3. 90. Controlled foreign companies and treaty non-resident companies

      14. Supplementary charge in respect of ring fence trades

          1. 91. Supplementary charge in respect of ring fence trades

          2. 92. Assessment, recovery and postponement of supplementary charge

          3. 93. Supplementary charge: transitional provisions

      15. Deduction of tax

          1. 94. Deduction of tax: payments to exempt bodies etc

          2. 95. Deduction of tax by persons dealing in financial instruments

          3. 96. Cross-border royalties

      16. Charitable giving

          1. 97. Gifts of real property to charity

          2. 98. Gift aid: election to be treated as if gift made in previous tax year

      17. Films

          1. 99. Restriction of relief to films genuinely intended for theatrical release

          2. 100. Exclusion of deferments from production expenditure

          3. 101. Restriction of relief for successive acquisitions of the same film

      18. Miscellaneous

          1. 102. Distributions: reasonable commercial return for use of principal secured

          2. 103. References to accounting practice and periods of account

          3. 104. Discounted securities etc

          4. 105. Financial trading stock

          5. 106. Valuation of trading stock on transfer of trade

          6. 107. Banks etc in compulsory liquidation

          7. 108. Manufactured dividends and interest

          8. 109. Venture capital trusts

5. Part 4 Stamp duty and stamp duty reserve tax

   1. Stamp duty

      1. 110. Land in disadvantaged areas

      2. 111. Withdrawal of group relief

      3. 112. Restriction of relief for company acquisitions

      4. 113. Withdrawal of relief for company acquisitions

      5. 114. Penalties for late stamping

      6. 115. Contracts for the sale of an estate or interest in land chargeable as conveyances

      7. 116. Abolition of duty on instruments relating to goodwill

   2. Stamp duty and stamp duty reserve tax

      1. 117. Power to extend exceptions relating to recognised exchanges

6. Part 5 Other taxes

   1. Inheritance tax

      1. 118. IHT: rate bands

      2. 119. IHT: powers over, or exercisable in relation to, settled property or a settlement

      3. 120. IHT: variation of dispositions taking effect on death

   2. Air passenger duty

      1. 121. Air passenger duty: extension of area to which EEA rates apply

   3. Landfill tax

      1. 122. Landfill tax: rate

   4. Climate change levy

      1. 123. Climate change levy: electricity produced in combined heat and power station

      2. 124. Climate change levy: certification requirement

      3. 125. Climate change levy: exemption for renewable sources

      4. 126. Climate change levy: electricity produced from coal mine methane

      5. 127. Climate change levy: incorrect certificates

      6. 128. Climate change levy: invoices incorrectly showing levy due

   5. Aggregates levy

      1. 129. Aggregates levy: transitional relief for Northern Ireland

      2. 130. Aggregates levy: amendments to provisions exempting spoil etc

      3. 131. Aggregates levy: crushing and cutting rock

      4. 132. Aggregates levy: miscellaneous amendments

      5. 133. Aggregates levy: amendments to provisions about civil penalties

7. Part 6 Miscellaneous and supplementary provisions

   1. Recovery of taxes etc due in other member States

      1. 134. Recovery of taxes etc due in other member States

   2. Mandatory e-filing

      1. 135. Mandatory e-filing

      2. 136. Use of electronic communications under other provisions

   3. Lorry road-user charge

      1. 137. Lorry road-user charge

   4. Registers of UK gilts

      1. 138. Authority of Bank of England to discharge functions in place of Bank of Ireland

      2. 139. Closure of UK gilts registers kept in Ireland

      3. 140. Administration of UK gilts

   5. Supplementary

      1. 141. Repeals

      2. 142. Interpretation

      3. 143. Short title

8. SCHEDULES

   1. SCHEDULE 1

      Beer from small breweries: reduced rate of duty

      1. 1. (1) Section 36 of the Alcoholic Liquor Duties Act 1979...

      2. 2. In that Act, after that section (and before the heading...

      3. 3. In section 49(1) of the Alcoholic Liquor Duties Act 1979...

      4. 4. (1) The Finance Act 1994 (c. 9) is amended as...

   2. SCHEDULE 2

      Hydrocarbon oil duties: minor and consequential amendments relating to biodiesel

      1. 1. Introduction

      2. 2. Biodiesel and bioblend not to be treated as fuel substitute

      3. 3. Exclusion of bioblend from rebates on heavy oil

      4. 4. Repayment of duty in case of biodiesel used otherwise than as road fuel

      5. 5. Mixing biodiesel and rebated heavy oil

      6. 6. Interpretation

      7. 7. Provision in relation to bioblend corresponding to that made by section 6 of the Finance Act 1998 in relation to section 6 of the Hydrocarbon Oil Duties Act 1979

   3. SCHEDULE 3

      Hydrocarbon oil duties: rebated heavy oil etc

      1. Part 1 Regulating traders in rebated heavy oil

         1. 1. In the Hydrocarbon Oil Duties Act 1979 (c. 5), after...

         2. 2. In section 100H(1) of the Customs and Excise Management Act...

         3. 3. In the Hydrocarbon Oil Duties Act 1979 (c. 5), after...

         4. 4. (1) Section 27 of the Hydrocarbon Oil Duties Act 1979...

      2. Part 2 Minor amendments relating to rebates

         1. 5. The Hydrocarbon Oil Duties Act 1979 is amended as follows....

         2. 6. In section 12(1) (no rebate allowed on heavy oil intended...

         3. 7. In section 12(2) (oil not to be used in road...

         4. 8. In section 24(2) (regulations made for the purposes of section...

         5. 9. In section 27(1) (interpretation), in the definition of “rebate", after...

   4. SCHEDULE 4

      Pool betting duty etc

      1. Part 1 Amendments of the Betting and Gaming Duties Act 1981

         1. 1. The Betting and Gaming Duties Act 1981 (c. 63) is...

         2. 2. For sections 6 to 8 (pool betting duty: charge, rate...

         3. 3. In section 2(2) (bets to which section 2(1) does not...

         4. 4. In section 4(6) (bets to which subsections (1) to (3)...

         5. 5. In section 9(2) (bets to which section applies), omit “or...

         6. 6. In section 9(3) (bets to which section does not apply)—...

         7. 7. For section 9(6) substitute— (6) Section 8C(1) to (3) above...

         8. 8. Omit section 11 (definition of coupon betting).

         9. 9. In section 12(3) (interpretation of sections 1 to 10 etc),...

         10. 10. (1) Schedule 1 (administration etc of betting duties) is amended...

      2. Part 2 Minor amendments and transitional provisions

         1. 11. Amendment in the Excise Duties (Surcharges or Rebates) Act 1979

         2. 12. Amendments in Schedule 5 to the Finance Act 1994

         3. 13. Duty charged before 31st March 2002

         4. 14. Notifications under paragraph 4(4) of Schedule 1 to that Act of premises used in connection with coupon betting

   5. SCHEDULE 5

      Vehicle excise duty: registered vehicles etc

      1. 1. The Vehicle Excise and Registration Act 1994 (c. 22) is...

      2. 2. For section 1(1) substitute— (1) A duty of excise (“vehicle...

      3. 3. For section 2(2) to (4) (rates where duty charged in...

      4. 4. For section 7(4) (vehicle licence valid only for vehicle for...

      5. 5. After section 7 insert— Supplement payable on late renewal of...

      6. 6. (1) In section 22 (registration regulations), in subsection (1D) (power...

      7. 7. In section 29(7) (rate of duty by reference to which...

      8. 8. After section 31 insert— Offence of being registered keeper of...

      9. 9. (1) In section 32 (sections 29 to 31: supplementary), in...

      10. 10. In section 33(3)(b) (offences of not exhibiting licence are without...

      11. 11. In section 34(4) (rate of duty by reference to which...

      12. 12. In section 47 (proceedings in England and Wales or Northern...

      13. 13. In section 48(3)(a) (proceedings in Scotland: time limit), after “section...

      14. 14. In section 53 (burden of proof of certain matters in...

      15. 15. In section 54 (single witness sufficient in Scottish proceedings), after...

      16. 16. In section 57 (regulations), after subsection (7) insert—

      17. 17. In section 62(1) (definitions), for the definition of “vehicle" substitute—...

   6. SCHEDULE 6

      Minor amendments to Schedule E charge

      1. 1. Share options

      2. 2. Credit-tokens and non-cash vouchers

      3. 3. In each of the following provisions of the Taxes Act...

      4. 4. Taxation of benefit where income received free of tax

      5. 5. Benefits in connection with termination of employment or change in duties or emoluments

      6. 6. Priority between charges under sections 148 and 595 of the Taxes Act 1988

   7. SCHEDULE 7

      Chargeable gains: roll-over of degrouping charge: modification of enactments

   8. SCHEDULE 8

      Chargeable gains: exemptions in case of substantial shareholding

      1. Part 1 New Schedule 7AC to the Taxation of Chargeable Gains Act 1992

         1. 1. The following Schedule is inserted after Schedule 7AB to the...

      2. Part 2 Consequential amendments

         1. 2. Degrouping: time of accrual of chargeable gain or allowable loss

         2. 3. Treatment of furnished holiday lettings

         3. 4. Overseas life insurance companies

         4. 5. Corporate venturing scheme

   9. SCHEDULE 9

      Chargeable gains: share exchanges and company reconstructions

      1. Part 1 Provisions replacing sections 135 and 136 of the Taxation of Chargeable Gains Act 1992

         1. 1. Share exchanges

         2. 2. Scheme of reconstruction involving issue of securities

         3. 3. Meaning of “scheme of reconstruction"

      2. Part 2 Consequential amendments

         1. 4. Taxes Act 1988

         2. 5. Taxation of Chargeable Gains Act 1992

         3. 6. Finance Act 2000

      3. Part 3 Commencement

         1. 7. General commencement date

         2. 8. Commencement provision for certain consequential amendments

   10. SCHEDULE 10

       Chargeable gains: taper relief: minor amendments

       1. 1. Introduction

       2. 2. Periods of share ownership that do not count because of change of activity by company

       3. 3. Periods of share ownership not to count where company is not active

       4. 4. Meaning of “holding company"

       5. 5. Meaning of “interest in shares"

       6. 6. Meaning of “joint venture company" and “qualifying shareholding"

       7. 7. Meaning of “ordinary share capital"

       8. 8. Debentures to be treated as shares

       9. 9. Meaning of “trading company"

       10. 10. Meaning of “trading group"

       11. 11. Joint venture companies

       12. 12. Joint enterprise companies

   11. SCHEDULE 11

       Chargeable gains: deduction of personal losses from gains treated as accruing to settlors

       1. 1. Introduction

       2. 2. Section 2

       3. 3. Section 77

       4. 4. Section 86

       5. 5. Section 86A

       6. 6. Section 87

       7. 7. Commencement

       8. 8. Election for Schedule to apply for years earlier than 2003-04

   12. SCHEDULE 12

       Tax relief for expenditure on research and development

       1. Part 1 Entitlement to relief for R&D expenditure: large companies

          1. 1. Entitlement to relief under this Part

          2. 2. Meaning of “large company" and “small or medium-sized enterprise"

          3. 3. Qualifying R&D expenditure

          4. 4. Qualifying expenditure on direct research and development

          5. 5. Expenditure on research and development directly undertaken on company’s behalf

          6. 6. Qualifying expenditure on contributions to independent research and development

       2. Part 2 Entitlement to relief for R&D expenditure: work subcontracted to small or medium-sized enterprise

          1. 7. Entitlement to relief under this Part

          2. 8. Qualifying sub-contracted R&D expenditure

          3. 9. Expenditure on research and development directly undertaken by the SME

          4. 10. Expenditure on research and development directly undertaken on SME’s behalf

       3. Part 2A Entitlement of SME to additional relief available to large companies

          1. Entitlement to relief under this Part

             1. 10A. (1) A company (“ the SME ”) is entitled to...

          2. Qualifying additional Small or Medium-sized EnterpriseSME expenditure

             1. 10B. For the purposes of this Schedule, the SME ’s “...

          3. Capped SME expenditure

             1. 10C. For the purposes of this Schedule, the SME 's “capped...

       4. Part 3 The relief

          1. 11. Deduction in computing profits of trade

       5. Part 4 Special provision for giving relief to insurance companies

          1. 12. Treated as large companies

          2. 13. Entitlement to relief in respect of “I minus E" basis

       6. Part 5 Supplementary provisions

          1. 14. Research and development expenditure of group companies

          2. 15. Refunds of contributions to independent research and development etc

          3. 16. Artificially inflated claims for deduction

       7. Part 6 General provisions

          1. 17. Meaning of “relevant research and development”, “staffing costs”, “ software or consumable items ” , “relevant payments to the subjects of a clinical trial” and “qualifying expenditure on externally provided workers"

          2. 18. Meaning of “qualifying body"

          3. 19. Other definitions etc

          4. 20. Transitional provision

   13. SCHEDULE 13

       Tax relief for expenditure on vaccine research etc

       1. Part 1 Entitlement to relief

          1. 1. Entitlement to relief under this Schedule

          2. 2. Qualifying expenditure

          3. 3. Qualifying expenditure on direct research and development

          4. 4. Qualifying R&D activity

          5. 5. Meaning of “relevant R&D”, “small or medium-sized enterprise”, “staffing costs”, “software or consumable items”, “relevant payments to the subjects of a clinical trial”, “subsidised” and “qualifying expenditure on externally provided workers.

          6. 6. Qualifying expenditure on sub-contracted research and development

          7. 7. Conditions that must be satisfied by qualifying expenditure on sub-contracted research and development

          8. 8. Treatment of sub-contractor payment where principal and sub-contractor are connected persons

          9. 9. Relevant expenditure of the sub-contractor

          10. 10. Election for connected persons treatment

          11. 11. Treatment of sub-contractor payment in other cases

          12. 12. Qualifying expenditure on contributions to independent research and development

       2. Part 2 Manner of giving effect to relief: small and medium-sized companies

          1. 13. Application of this Part

          2. 14. Deduction in computing profits of trade

          3. 15. Alternative treatment of pre-trading expenditure: deemed trading loss

          4. 15A. Paragraphs 14 and 15: modifications for larger SMEs claiming R&D tax credits

          5. 16. Entitlement to tax credit

          6. 16A. Entitlement to tax credit: modification for larger SMEs

          7. 17. Amount of credit

          8. 18. Payment in respect of tax credit

          9. 18A. Relief or tax credit only available where company is a going concern

          10. 19. Restriction on losses carried forward

          11. 20. Payment in respect of tax credit not income

       3. Part 3 Manner of giving effect to relief: large companies

          1. 21. Deduction in computing profits of trade

       4. Part 4 Special provision for giving relief to insurance companies

          1. 22. Treated as large companies

          2. 23. Entitlement to relief in respect of “I minus E" basis

       5. Part 5 Supplementary provisions

          1. 24. Artificially inflated claims for deduction or tax credit

          2. 25. Refunds of contributions to independent research and development

          3. 26. Funding of tax credits

          4. 27. Interpretation

          5. 28. Commencement and transitional provision

   14. SCHEDULE 14

       Tax credits under Schedule 13: consequential amendments

       1. 1. Interest

       2. 2. Claim must be made in tax return

       3. 3. Recovery of excessive tax credits

       4. 4. Claims for tax credits

       5. 5. Commencement

   15. SCHEDULE 15

       R&D tax relief for small and medium-sized enterprises: minor and consequential amendments

       1. 1. Schedule 20 to the Finance Act 2000 (c. 17) (R&D...

       2. 2. (1) In paragraph 1 (entitlement to R&D tax relief)—

       3. 3. In paragraph 5 (staffing costs)— (a) in sub-paragraph (1)(c) omit...

       4. 4. In paragraph 8 (subsidised expenditure), for the second sentence of...

       5. 5. In paragraph 12 (treatment of sub-contractor payments where principal and...

   16. SCHEDULE 16

       Community investment tax relief

       1. Part 1 Introduction

          1. 1. Eligibility for tax relief

          2. 2. Meaning of “investment"

          3. 3. Meaning of “the five year period"

       2. Part 2 Accredited community development finance institutions

          1. Application of Chapter 2 of Part 7 of ITA 2007

             1. 4. (1) Chapter 2 of Part 7 of ITA 2007 applies...

       3. Part 3 Qualifying investments

          1. 8. Introduction

          2. 9. Conditions to be satisfied in relation to loans

          3. 10. Conditions to be satisfied in relation to securities

          4. 11. Conditions to be satisfied in relation to shares

          5. 12. Tax relief certificates

          6. 13. Pre-arranged protection against risks

       4. Part 4 General conditions

          1. 14. No control of CDFI by investor

          2. 15. Beneficial ownership

          3. 16. Investor must not be accredited

          4. 17. No acquisition of share in partnership

          5. 18. No tax avoidance purpose

       5. Part 5 Form of relief

          1. 19. Individual investors

          2. 20. Company investors

          3. 21. Determination of “the invested amount"

          4. 22. Loans: no claim after disposal or excessive repayments or receipts of value

          5. 23. Securities or shares: no claim after disposal or excessive receipts of value

          6. 24. Loss of accreditation by the CDFI

          7. 25. Accreditation of the investor

          8. 26. Attribution

       6. Part 6 Withdrawal of relief

          1. 27. Manner of withdrawal of relief

          2. 28. Disposal of loan during five year period

          3. 29. Disposal of shares or securities during five year period

          4. 30. Repayments of loan capital

          5. 31. Value received treated as repayment of loan

          6. 32. Value received by investor where the investment consists of securities or shares

          7. 33. Meaning of “period of restriction"

          8. 34. Aggregation of receipts of insignificant value

          9. 35. When value is received

          10. 36. The amount of value received

          11. 37. Value received where there is more than one investment

          12. 38. Effect of receipt of value on future claims for relief

          13. 39. Receipts of value by and from connected persons

       7. Part 7 Restructuring of CDFI

          1. 40. Rights issues etc

          2. 41. Company reconstructions etc

       8. Part 8 Supplementary and general

          1. 42. Information to be provided by the investor

          2. 43. Disclosure

          3. 44. Nominees

          4. 45. Application for postponement of tax pending appeal

          5. 46. Meaning of “issue of securities or shares"

          6. 47. Identification of securities or shares on a disposal

          7. 48. Meaning of “disposal"

          8. 49. Construction of references to investment being “held continuously"

          9. 50. Meaning of “associate"

          10. 51. Minor definitions etc

          11. 52. Index of defined expressions

   17. SCHEDULE 17

       Community investment tax relief: consequential amendments

       1. 1. In section 98 of the Taxes Management Act 1970 (c....

       2. 2. In section 289A of the Taxes Act 1988 (form of...

       3. 3. In Schedule 15B to that Act (venture capital trusts: relief...

       4. 4. In section 25 of the Finance Act 1990 (c. 29)...

       5. 5. In Schedule 18 to the Finance Act 1998 (c. 36)...

   18. SCHEDULE 18

       Relief for community amateur sports clubs

       1. Part 1 Clubs entitled to be registered

          1. 1. The requirements

          2. 2. Open to the whole community

          3. 3. Organised on an amateur basis

       2. Part 2 Exemptions for registered clubs

          1. 4. Exemption for trading income

          2. 5. Exemption for interest and gift aid income

          3. 6. Exemption for property income

          4. 7. Exemption for chargeable gains

          5. 8. Exemption reduced where club incurs non-qualifying expenditure

       3. Part 3 Reliefs for donors

          1. 9. (1) Chapter 2 of Part 8 of ITA 2007 (gift...

       4. Part 4 Chargeable gains: property ceasing to be held for qualifying purposes

          1. 10. (1) This paragraph applies where a club holds property and,...

       5. Part 5 Registration

          1. 11. Registration and termination

          2. 12. Information etc

          3. 13. Appeals

       6. Part 6 Interpretation

          1. 14. “Eligible sport"

          2. 15. “Inland Revenue"

          3. 16. Other expressions

   19. SCHEDULE 19

       Capital allowances: cars with low carbon dioxide emissions

       1. 1. Introductory

       2. 2. Types of expenditure for which first-year allowances available

       3. 3. First-year qualifying expenditure: car with low carbon dioxide emissions

       4. 4. General exclusions affecting first-year qualifying expenditure

       5. 5. Amount of first-year allowances

       6. 6. Single asset pool in relation to cars above cost threshold

   20. SCHEDULE 20

       Capital allowances: plant or machinery for gas refuelling station

       1. 1. Introductory

       2. 2. Types of expenditure for which first-year allowances available

       3. 3. First-year qualifying expenditure: plant or machinery for gas refuelling station

       4. 4. General exclusions affecting first-year qualifying expenditure

       5. 5. Amount of first-year allowance

   21. SCHEDULE 21

       First-year allowances for expenditure wholly for a ring fence trade

       1. Part 1 Plant and machinery

          1. 1. Introductory

          2. 2. Types of expenditure for which first-year allowances available

          3. 3. First-year qualifying expenditure: plant and machinery for use wholly in a ring fence trade

          4. 4. Plant or machinery used for less than five years in a ring fence trade

          5. 5. General exclusions affecting first-year qualifying expenditure

          6. 6. Amount of first-year allowances

          7. 7. Penalty for failure to provide information etc

       2. Part 2 Mineral extraction allowances

          1. 8. Introductory

          2. 9. First-year qualifying expenditure

          3. 10. First-year allowances

          4. 11. Artificially inflated claims for first-year allowances

          5. 12. Amount of allowances and charges: balancing charge for period in which expenditure incurred

          6. 13. Unrelieved qualifying expenditure: effect of first-year qualifying expenditure

   22. SCHEDULE 22

       Computation of profits: adjustment on change of basis

       1. Part 1 Introduction

          1. 1. General scheme

       2. Part 2 General rules

          1. 2. Calculation of adjustment

          2. 3. Meaning of items being brought into account

          3. 4. Giving effect to positive adjustment

          4. 5. Giving effect to negative adjustment

       3. Part 3 Special rules for certain cases

          1. 6. No adjustment for certain expenses previously brought into account

          2. 7. Cases where adjustment not required until asset realised or written off

          3. 8. Change from realisation basis to mark to market

          4. 9. Election for spreading where paragraph 8 applies

          5. 10. Application of paragraphs 8 and 9 in case of transfer of insurance business

          6. 11.

          7. 12.

       4. Part 4 Supplementary provisions

          1. 13. Application of provisions to partnerships

          2. 14.

          3. 15. Interpretation

       5. Part 5 Commencement

          1. 16. General rule

          2. 17. Application of provisions to certain earlier changes of basis

          3. 18. Period in which change of basis takes effect

   23. SCHEDULE 23

       Exchange gains and losses from loan relationships etc

       1. Part 1 Amendments of the Finance Act 1996

          1. 1. Introductory

          2. 2. Meaning of “related transaction”

          3. 3. Exchange gains and losses from loan relationships etc

          4. 4. Authorised accounting methods

          5. 5. Convertible securities etc: exchange gains and losses

          6. 6. Extension of section 100 to exchange gains and losses and to items other than money debts

          7. 7. Interpretation

          8. 8. Bad debt etc: cases where departure allowed from assumption of prompt payment in full

          9. 9. Bad debts etc where parties have a connection

          10. 10. Transactions not at arm’s length

          11. 11. Exchange gains and losses where loan not on arm’s length terms

          12. 12. Continuity of treatment: groups etc

          13. 13. Loan relationships for unallowable purposes

          14. 14. Life assurance business

          15. 15. Special provisions for insurers: apportionments

          16. 16. Savings and transitional provisions in the Finance Act 1996

       2. Part 2 Amendments of other legislation

          1. The Income and Corporation Taxes Act 1988

             1. 17. Charges on income

             2. 18. Supplementary charge in respect of ring fence trades

             3. 19.

             4. 20. Double taxation relief

             5. 21. Provision not at arm’s length: foreign exchange gains and losses

          2. The Finance Act 1995

             1. 22. Miscellaneous amendments

          3. The Finance Act 2000

             1. 23. Tonnage tax

          4. The Finance Act 2002

             1. 24. Intangible fixed assets: assets entirely excluded: financial assets

       3. Part 3 Transitional provisions etc

          1. 25. Anti-avoidance: change of accounting period

          2. 26. Deferred foreign exchange gains

   24. SCHEDULE 24

       Corporation tax: currency

       1. The Finance Act 1993

          1. 1. Introductory

          2. 2. The basic rule: sterling to be used

          3. 3. Use of currency other than sterling: accounts as a whole etc in foreign currency

          4. 4. Use of currency other than sterling: accounts etc partly from statements in foreign currency

          5. 5. Rules for ascertaining currency equivalents: general

          6. 6. Rules for ascertaining sterling equivalent for section 93(4) or (5)

       2. The Finance Act 1994

          1. 7. Lloyd’s underwriters: corporations etc

   25. SCHEDULE 25

       Loan relationships

       1. Part 1 Amendments of the Finance Act 1996

          1. 1. Introductory

          2. 2. Meaning of “loan relationship” etc: method of settlement

          3. 3. Non-trading deficit on loan relationships

          4. 4. Debits and credits brought into account

          5. 5. Authorised accounting methods

          6. 6. Application of accounting methods

          7. 7. Accounting method where parties have a connection

          8. 8. Meaning of “control” in section 87

          9. 9. Inconsistent application of accounting methods

          10. 10. Changes of accounting method

          11. 11. Payments subject to deduction of tax

          12. 12. Indexed gilt-edged securities

          13. 13. Manufactured interest

          14. 14. Interpretation: “shares” not to include building society shares

          15. 15. Interpretation: miscellaneous

          16. 16. Provision continuing to be made on accruals basis after company ceases to be party

          17. 17. Claims to treat deficit as eligible for group relief

          18. 18. Claim to carry back deficit to previous accounting periods

          19. 19. Deficit carried forward and set against non-trading profits of succeeding accounting periods

          20. 20. Distributions

          21. 21. Life assurance policies and capital redemption policies

          22. 22. Late interest: further cases where paragraph 2 of Schedule 9 applies

          23. 23. Bad debts and consortium relief

          24. 24. Bad debt etc where parties have a connection

          25. 25. Bad debt etc: parties having connection and creditor company in insolvent liquidation etc

          26. 26.

          27. 27. Bad debt etc: departure not permitted by paragraph 6: subsequent cessation of connection

          28. 28. Imported losses etc

          29. 29. Continuity of treatment: groups etc

          30. 30. Loan relationships for unallowable purposes

          31. 31. Debits and credits treated as relating to capital expenditure

          32. 32. Repo transactions and stock lending

          33. 33. Discounted securities where companies have a connection

          34. 34. Discounted securities of close companies

          35. 35. Partnerships involving companies

          36. 36. Interpretation of Schedule 9: “major interest”

          37. 37. Investment trusts and venture capital trusts: treatment of capital reserves

          38. 38. Authorised unit trusts and open-ended investment companies

          39. 39. Distributing offshore funds

          40. 40. Life assurance business

          41. 41. Adjustments in the case of chargeable assets etc

          42. 42. Reduction of paragraph 11 credit where s.251(4) of 1992 Act prevents paragraph 8 loss

       2. Part 2 Amendments of other enactments

          1. The Taxes Act 1988

             1. 43. Introductory

             2. 44. Incidental costs of obtaining loan finance

             3. 45. Group relief

             4. 46.

             5. 47. Building society shares: regulations for deduction of tax

             6. 48. Building society shares: incidental costs of issuing qualifying shares

             7. 49. European Economic Interest Groupings

             8. 50. Funding bonds issued in respect of interest on certain debts

             9. 51. Transfers of income arising from securities

             10. 52. Treatment of price differential on sale and repurchase of securities

             11. 53. Restriction of relief for payments of interest

             12. 54. Limits on credit: corporation tax

             13. 55. Foreign tax on items giving rise to a non-trading credit

             14. 56. Investment trusts

             15. 57. Venture capital trusts

             16. 58. Change in ownership of investment company

          2. The Finance Act 1988

             1. 59. Commercial woodlands

          3. The Taxation of Chargeable Gains Act 1992

             1. 60. Interest charged to capital

       3. Part 3 Transitional provisions

          1. 61. Interpretation

          2. 61A. Non-trading deficit carried forward from last old accounting period

          3. 62. Discounted securities where companies have a connection

          4. 63. Discounted securities of close companies

          5. 64. Authorised unit trusts and open-ended investment companies

   26. SCHEDULE 26

       Derivative contracts

       1. Part 1 Introduction

          1. 1. Profits arising from derivative contracts

       2. Part 2 Derivative contracts

          1. 2. Derivative contracts and relevant contracts

          2. 2A. Non-financial contracts with embedded derivatives

          3. 2B. Hybrid derivatives

          4. 3. Contracts to satisfy accounting requirements etc

          5. 4. Contracts excluded by virtue of their underlying subject matter

          6. 4A. Contracts which become derivative contracts: chargeable assets

          7. 4B. (1) This paragraph applies to a company if the conditions...

          8. 4D. Treatment of credits and debits on former chargeable asset

          9. 5.

          10. 5A.

          11. 6.

          12. 7.

          13. 8.

          14. 9. Underlying subject matter which is subordinate or of small value disregarded

          15. 10.

          16. 11. Meaning of “underlying subject matter”

          17. 12. Definition of terms relating to derivative contracts

          18. 13. Power to amend paragraphs 2 to 12 and Part 9

       3. Part 3 Method of taxation

          1. 14. Method of bringing amounts into account

          2. 15. Credits and debits brought into account

          3. 16. Exchange gains and losses arising from derivative contracts

       4. Part 4 Computation of amounts to be brought into account

          1. 17A. Computation in accordance with generally accepted accounting practice

          2. 17B. Amounts recognised in determining company’s profit or loss

          3. 17C. Power to make further provision by regulations

          4. 21. Basis of accounting for contracts falling within paragraph 6, 7 or 8

       5. Part 5 Special provision for release of liability

          1. 22. Release of liability under derivative contract

       6. Part 6 Special computational provisions

          1. 22A. Deemed assignment of derivative contracts on company ceasing to be resident in UKetc

          2. 23. Derivative contracts for unallowable purposes

          3. 24. Derivative contracts for unallowable purposes: supplementary

          4. 25. Debits and credits treated as relating to capital expenditure

          5. 25A. Debits and credits recognised in equity or shareholders' funds

          6. 26. Transfers of value to connected companies

          7. 27. Exchange gains and losses where derivative contracts not on arm’s length terms

          8. 27A. Disposals for consideration not fully recognised by accounting practice

          9. 28. Transactions within groups

          10. 29. Transactions within groups: exceptions relating to insurance

          11. 30. Transactions within groups: fair value accounting

          12. 30A. Transferee leaving group after replacing transferor as party to derivative contract

          13. 30B. (1) This paragraph applies on a merger which satisfies the...

          14. 30C. (1) This paragraph applies on a merger which satisfies the...

          15. 30D. (1) This paragraph applies where— (a) a company resident in...

          16. 30E. (1) This paragraph applies where— (a) a company resident in...

          17. 30F. (1) Paragraph 30D or 30E shall apply in relation to...

          18. 30G. (1) This paragraph applies in relation to a transfer of...

          19. 30H. (1) This paragraph applies in relation to a merger if—...

          20. 30I. (1) In paragraphs 30B to 30H and this paragraph ,...

          21. 31. Derivative contracts with non-residents

          22. 31A. Amounts imputed under Schedule 28AA to the Taxes Act 1988

       7. Part 7 Collective investment schemes

          1. 32. Authorised unit trusts: capital profits and losses

          2. 33. Open-ended investment companies: capital profits and losses

          3. 34. Power to amend paragraphs 32 and 33

          4. 35. Distributing offshore funds

          5. 36. Contracts relating to holdings in unit trust schemes, open-ended investment companies and offshore funds

          6. 37. Contract which becomes contract to which paragraph 36 applies

          7. 38. Investment trusts: capital profits, gains or losses

          8. 38A. Venture capital trusts: capital profits, gains or losses

          9. 39. Investment trusts: approval for purposes of section 842 of the Taxes Act 1988

          10. 40. Venture capital trusts: approval for purposes of section 842AA of the Taxes Act 1988

       8. Part 8 Insurance and mutual trading companies

          1. 41. Application of Schedule to insurance and mutual trading companies

          2. 41A. Application of section 103(3)(c) of the Finance Act 1996

          3. 42. ...

          4. 43.

          5. 43. Mutual trading and non-life mutual business

       9. Part 9 Miscellaneous

          1. 43A. Contracts which become derivative contracts

          2. 43B. Contracts which cease to be derivative contracts

          3. 44.

          4. 45.

          5. 45A. Derivative contracts which are to be taxed on a chargeable gains basis

          6. 45B. Carry back of net losses on derivative contracts to which paragraph 45A applies

          7. 45C. Derivative contracts relating to land or certain tangible movable property

          8. 45D. Creditor relationships: embedded derivatives which are options

          9. 45E. Exclusions from paragraph 45D

          10. 45F. Creditor relationships: embedded derivatives which are exactly tracking contracts for differences

          11. 45FA. Creditor relationships: existing assets

          12. 45G. Property based total return swaps

          13. 45H. Treatment of net gains and losses on terminal exercise of option

          14. 45HZA. Treatment of net gains and losses on disposal of certain embedded derivatives

          15. 45HA. Treatment of credits and debits on terminal exercise of non-embedded option or running to delivery of future

          16. 45H.

          17. 45I. Index-linked gilt-edged securities with embedded contracts for differences

          18. 45J. Issuers of securities with embedded derivatives: deemed options

          19. 45JA. Issuers of securities with embedded derivatives: equity instruments

          20. 45K. Issuers of securities with embedded derivatives: deemed contracts for differences

          21. 45KA. Securities with embedded options: existing liabilities

          22. 45L. Derivatives not embedded in a loan relationship

          23. 45LA. Elections under paragraph 45L(2A): further provisions

          24. 45M. Treatment of host contract as a loan relationship

          25. 46. Contracts where part of underlying subject matter of excluded type

          26. 47.

          27. 48.

          28. 48A.

          29. 49. Partnerships involving companies

          30. 50. Partnerships involving companies: use of fair value accounting

          31. 50A. Adjustment on company changing to international accounting standards

          32. 51. Prevention of deduction of tax

       10. Part 10 Interpretation

           1. 52. Statutory accounts

           2. 53. Derivative and relevant contracts of person

           3. 54. General interpretation

   27. SCHEDULE 27

       Derivative contracts: minor and consequential amendments

       1. 1. The Taxes Act 1988

       2. 2. In section 15(1) (Schedule A) in paragraph 2(3) of Schedule...

       3. 3. (1) . . . . . . . . ....

       4. 4. (1) . . . . . . . . ....

       5. 5. In section 440 (transfers between categories of assets held by...

       6. 6. Omit section 468AA (authorised unit trusts: futures and options).

       7. 7. (1) Section 468L (interest distributions) is amended as follows.

       8. 8. In section 501A (supplementary charge in respect of ring fence...

       9. 9. In section 768B (change in ownership of investment company: deductions...

       10. 10. In section 768C (deductions: asset transferred within group) in subsection...

       11. 11. In section 798B (restriction of relief on certain interest and...

       12. 12. (1) Section 807A (disposals and acquisitions of company loan relationships...

       13. 13. In section 834(1) (interpretation of the Corporation Tax Acts) insert...

       14. 14. . . . . . . . . . ....

       15. 15. (1) Schedule 28AA (provision not at arm’s length) is amended...

       16. 16. The Finance Act 1994

       17. 17. The Finance Act 1996

       18. 18. . . . . . . . . . ....

       19. 19. (1) Section 101 (financial instruments) is amended as follows.

       20. 20. (1) Schedule 10 (loan relationships: collective investment schemes) is amended...

       21. 21. Omit Schedule 12(meaning of debt contract or option).

       22. 22. The Finance Act 2000

       23. 23. (1) Schedule 22 (tonnage tax) is amended as follows.

       24. 24. The Finance Act 2002

       25. 25. Section 78 (which amends the provision made by Schedule 5AA...

       26. 26. In Schedule 29 (taxation of intangible fixed assets) in paragraph...

   28. SCHEDULE 28

       Derivative contracts: transitional provisions etc

       1. 1. Anti-avoidance: change of accounting period

       2. 2. Qualifying contracts to which company ceases to be party before commencement day

       3. 3. Qualifying contracts which become derivative contracts

       4. 4. Contracts which become derivative contracts: chargeable assets

       5. 5. Contracts: election to treat as two assets

       6. 6. Contracts which become derivative contracts: contracts within Schedule 5AA to the Taxes Act 1988

       7. 7. Interpretation

   29. SCHEDULE 29

       Gains and losses of a company from intangible fixed assets

       1. Part 1 Introduction

          1. 1. Gains and losses in respect of intangible fixed assets

          2. 2. Intangible assets

          3. 3. Intangible fixed assets

          4. 4. Goodwill

          5. 5. Company not drawing up correct accounts

          6. 6. Reference to consolidated group accounts

       2. Part 2 Debits in respect of intangible fixed assets

          1. 7. Introduction

          2. 8. Expenditure written off as it is incurred

          3. 9. Writing down on accounting basis

          4. 10. Writing down at fixed rate: election for fixed-rate basis

          5. 11. Writing down at fixed rate: calculation

          6. 12. Reversal of previous accounting gain

       3. Part 3 Credits in respect of intangible fixed assets

          1. 13. Introduction

          2. 14. Receipts recognised as they accrue

          3. 14A. Receipts in respect of royalties so far as not dealt with under paragraph 14

          4. 15. Revaluation

          5. 16. Negative goodwill

          6. 17. Reversal of previous accounting loss

       4. Part 4 Realisation of intangible fixed assets

          1. 18. Introduction

          2. 19. Meaning of “realisation"

          3. 20. Realisation of asset written down for tax purposes

          4. 21. Realisation of asset shown in balance sheet and not written down for tax purposes

          5. 22. Apportionment in case of part realisation

          6. 23. Realisation of asset not shown in balance sheet

          7. 24. Meaning of “proceeds of realisation"

          8. 25. Relief in case of reinvestment

          9. 26. Abortive expenditure on realisation

       5. Part 5 Calculation of tax written down value

          1. 27. Asset written down on accounting basis

          2. 28. Asset written down at fixed rate

          3. 29. Effect of part realisation of asset

       6. Part 6 How credits and debits are given effect

          1. 30. Introduction

          2. 31. Asset held for purposes of trade

          3. 32. Asset held for purposes of property business

          4. 33. Assets held for purposes of mines, transport undertakings, etc

          5. 34. Non-trading credits and debits

          6. 35. Claim to set non-trading loss against total profits

          7. 36. Special provisions relating to insurance companies

       7. Part 7 Roll-over relief in case of realisation and reinvestment

          1. 37. The relief

          2. 38. Conditions to be met in relation to the old asset and its realisation

          3. 39. Conditions to be met in relation to the expenditure on other assets

          4. 40. Claim for relief

          5. 41. How the relief is given: general

          6. 42. Determination of appropriate proportion or adjusted cost

          7. 42A. References to cost of asset where asset affected by change of accounting policy

          8. 43. Declaration of provisional entitlement to relief

          9. 44. Realisation and reacquisition

          10. 45. Deemed realisations and deemed acquisitions to be disregarded

       8. Part 8 Groups of companies

          1. 46. Introduction

          2. 47. General rule: a company and its 75% subsidiaries form a group

          3. 48. Membership of group restricted to effective 51% subsidiaries of principal company

          4. 49. Principal company cannot be 75% subsidiary of another company

          5. 50. Company cannot be member of more than one group

          6. 51. Continuity of identity of group

          7. 51A. For the purposes of this Schedule where the principal company...

          8. 52. Meaning of “effective 51% subsidiary"

          9. 53. Meaning of equity holder and profits or assets available for distribution

          10. 54. Supplementary provisions

       9. Part 9 Application of provisions to groups of companies

          1. 55. Transfers within a group

          2. 56. Roll-over relief on reinvestment: application to group member

          3. 57. Roll-over relief on reinvestment: acquisition of group company treated as equivalent to acquisition of underlying assets

          4. 58. Company ceasing to be member of group (“degrouping")

          5. 59. Degrouping: associated companies leaving group at the same time

          6. 60. Degrouping: principal company becoming member of another group

          7. 61. Degrouping: company ceasing to be member of group by reason of exempt distribution

          8. 62. Degrouping: merger carried out for bona fide commercial reasons

          9. 63. Degrouping: group member ceasing to exist

          10. 64. Degrouping: supplementary provisions

          11. 65. Degrouping: application of roll-over relief in relation to degrouping charge

          12. 66. Reallocation of degrouping charge within group

          13. 67. Application of roll-over relief in relation to reallocated degrouping charge

          14. 68. Recovery of degrouping charge from another group company or controlling director

          15. 69. Recovery of degrouping charge from another group company or controlling director: procedure etc

          16. 70. Recovery of degrouping charge from another group company or controlling director: time limit

          17. 71. Payments between group members in respect of reliefs

       10. Part 10 Excluded assets

           1. 72. Introduction

           2. 73. Assets entirely excluded: rights over tangible assets

           3. 73A. Assets entirely excluded: assets in respect of which capital allowance previously made

           4. 74. Assets entirely excluded: oil licences

           5. 75. Assets entirely excluded: financial assets

           6. 76. Assets entirely excluded: rights in companies, trusts, etc

           7. 77. Assets entirely excluded: non-commercial purposes etc

           8. 78. Assets excluded except as regards royalties: life assurance business

           9. 79. Assets excluded except as regards royalties: mutual trade or business

           10. 80. Assets excluded except as regards royalties: films and sound recordings

           11. 80A. Assets excluded: certain films

           12. 80B. Assets excluded except as regards royalties: sound recordings

           13. 81. Assets excluded except as regards royalties: computer software treated as part of cost of related hardware

           14. 82. Assets excluded to extent specified: research and development

           15. 83. Assets excluded to extent specified: election to exclude capital expenditure on computer software

       11. Part 11 Transfer of business or trade

           1. 84. Company reconstruction involving transfer of business

           2. 85. Transfer of UK business between companies resident in different EU member States

           3. 85A. European cross-border merger: transfer of UK business

           4. Transparent entities

              1. 85B. (1) This paragraph applies in relation to a transfer of...

              2. 85C. (1) This paragraph applies in relation to a merger if—...

              3. 85D. (1) In paragraphs 85, 85A, 85B, 85C, 87 and 87A...

           5. 86. Postponement of charge on transfer of assets to non-resident company.

           6. 87. Transfer of non-UK business

           7. 87A. European cross-border merger: transfer of non-UK business

           8. 88. Procedure on application for clearance

           9. 89. Transfer of life assurance business

           10. 90. Transfer of business of building society to company

           11. 91. Amalgamation of or transfer of engagements by certain societies

       12. Part 12 Transactions between related parties

           1. 92. Transfer between company and related party treated as being at market value

           2. 93. Exclusion of roll-over relief in case of part realisation involving related party

           3. 94. Delayed payment of royalty payable by company to related party

           4. 95. Meaning of “related party"

           5. 95A. Persons treated as “related parties”

           6. 96. Meaning of “control" and “major interest"

           7. 97. Rights and powers to be taken into account: general

           8. 98. Rights and powers to be taken into account: rights and powers held jointly

           9. 99. Rights and powers to be taken into account: partnerships

           10. 100. Meaning of “participator" and “associate"

           11. 101. Connected persons

       13. Part 13 Supplementary provisions

           1. 102. Treatment of grants and other contributions to expenditure

           2. 103. Grants to be left out of account for tax purposes

           3. 104. Finance leasing etc

           4. 105. Assets acquired or realised together

           5. 106. Deemed market value acquisition: adjustment of amounts in case of nil accounting value

           6. 107. Treatment of fungible assets

           7. 108. Asset ceasing to be chargeable intangible asset: deemed realisation at market value

           8. 109. Asset ceasing to be chargeable intangible asset: postponement of gain in certain cases

           9. 110. Asset becoming chargeable intangible asset

           10. 111. Tax avoidance arrangements to be disregarded

           11. 112. Debits not allowed in respect of expenditure not generally deductible for tax purposes

           12. 113. Delayed payment of employees' remuneration

           13. 114. Delayed payment of pension contributions

           14. 115. Bad debts etc

           15. 116. Assumptions for computing chargeable profits of controlled foreign companies

       14. Part 13A Adjustment on change of accounting policy

           1. 116A. Introduction

           2. 116B. Change of accounting policy involving change of value

           3. 116C. Change of accounting policy involving disaggregation

           4. 116D. Change of accounting policy involving disaggregation: original asset subject to fixed rate writing down

           5. 116E. Change of accounting policy involving disaggregation: election for fixed rate writing down in relation to resulting asset

           6. 116F. Cap on credit to be brought into account on change of accounting policy

           7. 116G. Exclusion of debits or credits brought into account under other provisions

           8. 116H. Subsequent events affecting asset subject to adjustment under this Part

       15. Part 14 Commencement and transitional provisions

           1. 117. Commencement date

           2. 118. Application of Schedule to assets created or acquired after commencement

           3. 119. Application of Schedule to royalties

           4. 120. Assets regarded as created or acquired when expenditure incurred

           5. 121. Internally-generated goodwill: whether created before or after commencement

           6. 122. Certain other internally-generated assets: whether created before or after commencement

           7. 123. Expenditure on acquisition treated as incurred when recognised for accounting purposes

           8. 124. When expenditure treated as incurred: chargeable gains rule to be followed in certain cases

           9. 125. When expenditure treated as incurred: capital allowances general rule to be followed in certain cases

           10. 126. Application of Schedule to fungible assets

           11. 127. Certain assets acquired on transfer of business treated as existing assets

           12. 127A. Assets whose value derives from existing assets treated as existing assets

           13. 127B. Assets acquired in connection with disposals of existing assets treated as existing assets

           14. 128. Application of Schedule to certain existing telecommunication rights

           15. 129. Application of Schedule to existing Lloyd’s syndicate capacity

           16. 130. Roll-over relief: application in relation to disposal of existing asset after commencement

           17. 131. Roll-over relief: application in relation to degrouping charge on existing asset arising after commencement

           18. 132. Roll-over relief: transitory interaction with relief on replacement of business asset

       16. Part 15 Interpretation

           1. 133. References to expenditure on an asset

           2. 134. References to amounts recognised in determining profit or loss

           3. 135. Meaning of “accounting value"

           4. 136. Meaning of “adjustments required for tax purposes"

           5. 137. Meaning of “chargeable intangible asset" and “chargeable realisation gain"

           6. 138. Interpretation provisions relating to insurance companies

           7. 139. Meaning of “royalty"

           8. 140. Meaning of “tax-neutral transfer"

           9. 141. Meaning of “the Inland Revenue"

           10. 142. Meaning of “the Taxes Acts"

           11. 143. Index of defined expressions

   30. SCHEDULE 30

       Gains and losses of a company from intangible fixed assets: consequential amendments

       1. 1. General provisions about deductions

       2. 2. Surrender of non-trading loss by way of group relief

       3. 3. Extension of charitable exemption to non-trading gains

       4. 4. Change in ownership of company with unused non-trading loss

       5. 5. Double taxation relief

       6. 6. Value-shifting provisions

   31. SCHEDULE 31

       Gains of insurance company from venture capital investment partnership

   32. SCHEDULE 32

       Lloyd’s underwriters

       1. 1. Individuals

       2. 2. In section 178(stop loss and quota share insurance), in subsection...

       3. 3. After subsection (3) of that section insert—

       4. 4. For subsection (4) of that section substitute—

       5. 5. In section 184(1) (interpretation), in the definition of “stop-loss insurance",...

       6. 6. Corporate bodies

       7. 7. In section 225 (stop loss and quota share insurance), in...

       8. 8. After subsection (3) of that section insert—

       9. 9. For subsection (4) of that section substitute—

       10. 10. In section 230(1) (interpretation), in the definition of “stop-loss insurance",...

   33. SCHEDULE 33

       Venture capital trusts

       1. Part 1 Venture capital trusts: winding up

          1. 1. Meaning of “VCT-in-liquidation"

          2. 2. Power to treat VCT-in-liquidation as VCT

          3. 3. Power to treat conditions for VCT approval as fulfilled with respect to VCT-in-liquidation

          4. 4. Power to make provision about distributions by VCT-in-liquidation

          5. 5. Power to facilitate disposals to VCT by VCT-in-liquidation

          6. 6. Provision in respect of periods before and after winding-up

          7. 7. Part 1: supplementary provisions and interpretation

       2. Part 2 Venture capital trusts: mergers

          1. 8. Power to facilitate mergers of VCTs

          2. 9. Provision that may be made by regulations under paragraph 8(1)

          3. 10. Meaning of “merger" and “successor company"

       3. Part 3 Time allowed for VCT to invest money raised by further share issue

          1. 11. Power to disapply, or limit operation of, section 842AA(5B) of the Taxes Act 1988

          2. 12. Withdrawal of VCT approval in cases for which provision made under paragraph 11

          3. 13. Consequential amendment in section 842AA(5A) of the Taxes Act 1988

       4. Part 4 Supplementary

          1. 14. Extension of existing powers to give effect to VCT reliefs

          2. 15. Penalties for non-compliance with regulations under this Schedule

          3. 16. Regulations under this Schedule: inclusion of supplementary etc provisions

          4. 17. Interpretation of Schedule

   34. SCHEDULE 34

       Stamp duty: withdrawal of group relief: supplementary provisions

       1. 1. Introduction

       2. 2. Relief not withdrawn if transferor company leaves group

       3. 3. Relief not withdrawn in case of winding-up

       4. 4. Relief not withdrawn in case of exempt acquisition

       5. 5. Interest

       6. 6. Duty of transferee company to notify particulars

       7. 7. Determination, collection and recovery of duty and interest

       8. 8. Recovery of group relief from from another group company or controlling director

       9. 9. Recovery of group relief from another group company or controlling director: procedure and time limit

       10. 10. Power to require information

       11. 11. Supplementary

   35. SCHEDULE 35

       Stamp duty: withdrawal of relief for company acquisitions: supplementary provisions

       1. 1. Introduction

       2. 2. Change of control due to exempt transfer

       3. 3. Change of control due to intra-group transfer

       4. 4. Change of control due to exempt share acquisition

       5. 5. Change of control due to interest of loan creditor

       6. 6. Interest

       7. 7. Duty of acquiring company to notify particulars

       8. 8. Determination, collection and recovery of duty and interest

       9. 9. Recovery of section 76 relief from from another group company or controlling director

       10. 10. Recovery of section 76 relief from another group company or controlling director: procedure and time limit

       11. 11. Power to require information

       12. 12. Supplementary

   36. SCHEDULE 36

       Stamp duty: contracts chargeable as conveyances: supplementary provisions

       1. Part 1 Subsales

          1. 1. Introduction

          2. 2. Meaning of “subsale"

          3. 3. Relief where duty paid on original sale or earlier subsale

       2. Part 2 Subsequent conveyance or transfer

          1. 4. Introduction

          2. 5. Conveyance or transfer of property contracted to be sold

          3. 6. Repayment of duty in certain cases

       3. Part 3 General supplementary provisions

          1. 7. Construction of references to duty on transactions

          2. 8. Transactions relating to land in the UK and to other property

          3. 9. Person claiming relief to establish entitlement

          4. 10. Construction as one

   37. SCHEDULE 37

       Stamp duty: abolition of duty on instruments relating to goodwill: supplementary provisions

       1. 1. Reduction of stamp duty where instrument partly relating to goodwill

       2. 2. Apportionment of consideration for stamp duty purposes

       3. 3. Certification of instruments for stamp duty purposes

       4. 4. Acquisition under statute

       5. 5. Interpretation

   38. SCHEDULE 38

       Aggregates levy amendments

       1. 1. Introduction

       2. 2. The charge

       3. 3. Meaning of “aggregate" etc

       4. 4. Exempt processes

       5. 5. Commercial exploitation

       6. 6. Responsibility for commercial exploitation

       7. 7. The register

       8. 8. Insolvency etc

       9. 9. Notification of registrability etc

       10. 10. Restriction on powers to provide for set-off

   39. SCHEDULE 39

       Recovery of taxes etc due in other member States

       1. 1. Introduction

       2. 2. Enforcement of claims in the United Kingdom

       3. 3. Power to make supplementary provision by regulations

       4. 4. Proceedings on contested claims

       5. 5. Claims determined in taxpayer’s favour

       6. 6. Other supplementary provisions

   40. SCHEDULE 40

       Repeals

       1. Part 1 Excise duties

       2. Part 2 Value added tax

       3. Part 3 Income tax, corporation tax and capital gains tax

       4. Part 4 Other taxes

       5. Part 5 Miscellaneous