The Finance Act 2004, Sections 38 to 40 and 45 and Schedule 6 (Consequential Amendment of Enactments) Order 2004

1. Introductory Text

2. 1. Citation, commencement, effect and interpretation

3. 2. Amendments to enactments in consequence of sections 38, 40 and 45 of, and Schedule 6 to, the Finance Act 2004

4. Signature

5. 1. SCHEDULE

      EXPENSES OF COMPANIES WITH INVESTMENT BUSINESS AND INSURANCE COMPANIES

      1. Finance Act 1950

         1. 1. Treatment of enemy debts written off during World War II

      2. Taxes Act 1988

         1. 2. The Taxes Act 1988 is amended as follows.

         2. 3. Relief for contributions to certain bodies

         3. 4. Costs of establishing share option or profit sharing schemes: relief

         4. 5. Payment to trustees of approved profit sharing schemes

         5. 6. Costs of establishing employee share ownership trusts

         6. 7. Employees seconded to charities and educational establishments

         7. 8. Charitable donations: contributions to agent’s expenses

         8. 9. Payments to Export Credits Guarantee Department

         9. 10. Additional payments to redundant employees

         10. 11. Other grants under Industrial Development Act 1982 etc

         11. 12. Schedule A losses

         12. 13. Write-off of government investment

         13. 14. Group relief: meaning of “management expenses” in section 403

         14. 15. Computation of gross profits

         15. 16. Limitation of group relief in relation to certain dual resident companies

         16. 17. Losses from Schedule A business or overseas property business

         17. 18. General annuity business

         18. 19. Transfers of business

         19. 20. Authorised unit trusts

         20. 21. Interest distributions

         21. 22. Credit unions

         22. 23. Business entertaining expenses

         23. 24. Expenditure involving crime

         24. 25. Expenditure on car hire

         25. 26. Statutory redundancy payments

         26. 27. Gifts of shares, securities and real property to charities etc

         27. 28. Training courses for employees

         28. 29. Counselling services for employees

         29. 30. Exempt approved schemes

         30. 31. Social security benefits and contributions

         31. 32. Sale and lease-back: limitation on tax reliefs

         32. 33. Assets leased to traders and others

         33. 34. Limits on credit for foreign tax: corporation tax

         34. 35. Share incentive plans: corporation tax deductions

         35. 36. Modification of the Taxes Act 1988 in relation to overseas life insurance companies

         36. 37. Manufactured overseas dividends

         37. 38. Controlled foreign companies: relief against liability for tax in respect of chargeable profits

         38. 39. Change in ownership of investment company: deductions

         39. 40. Provision not at arm’s length

      3. Finance Act 1988

         1. 41. Consideration for certain restrictive undertakings

      4. Finance Act 1989

         1. 42. Investment and insurance companies: computation

         2. 43. Non-approved retirement benefit schemes

         3. 44. Management expenses

         4. 45. Corporation tax: policy holders' fraction of profits

         5. 46. Policy holder’s share of profits

      5. Finance Act 1991

         1. 47. Basic life assurance and general annuity business: transitional relief for old annuity contracts

      6. Taxation of Chargeable Gains Act 1992

         1. 48. Allowable deductions: consideration chargeable to tax on income

      7. Finance Act 1996

         1. 49. Interest, and exchange gains and losses, on debts etc not arising from the lending of money

         2. 50. Loan relationships: claims etc relating to deficits

      8. Finance Act 1999

         1. 51. Receipts by way of reverse premium: insurance companies carrying on life assurance business

      9. Capital Allowances Act 2001

         1. 52. Qualifying activities

         2. 53. Related definitions

         3. 54. Giving of allowances: managing investments of company with investment business

         4. 55. Life assurance business: different giving effect rules for different categories of business

         5. 56. Provisions supplementary to sections 255 and 256

         6. 57. Management assets

      10. Finance Act 2001

          1. 58. Remediation of contaminated land: entitlement to land remediation tax credit

          2. 59. Land remediation tax credit: restriction of losses carried forward

          3. 60. Land remediation tax credit: entitlement to relief: “I minus E” basis

          4. 61. Land remediation tax credit: giving effect to relief: enhanced expenses of management

          5. 62. Land remediation tax credit: entitlement to life assurance company tax credit

          6. 63. Land remediation tax credit: restriction on carrying forward expenses of management as follows

      11. Finance Act 2002

          1. 64. Tax relief for research and development: entitlement to relief in respect of “I minus E” basis

          2. 65. Expenditure on vaccine research etc: entitlement to relief in respect of “I minus E” basis

          3. 66. Loan relationships

          4. 67. Intangible fixed assets: special provisions relating to insurance companies

      12. ITEPA

          1. 68. Business entertainment and gifts: exception where employer’s expenses disallowed

      13. Finance Act 2003

          1. 69. Corporation tax relief for employee share acquisition: shares: method of giving relief

          2. 70. Corporation tax relief for employee share acquisition: options: method of giving relief

          3. 71. Restriction of deductions for employee benefit contributions: life assurance business

      14. The Energy Act 2004

          1. 72. Extinguishment of BNFL losses for tax purposes

      15. Amendments to secondary legislation

          1. 73. The Income Tax (Manufactured Overseas Dividends) Regulations 1993

          2. 74. The Insurance Companies (Taxation of Reinsurance Business) Regulations 1995

          3. 75. Friendly Societies (Modification of the Corporation Tax Acts) Regulations 1997

          4. 76. The Open-ended Investment Companies (Tax) Regulations 1997

          5. 77. The European Single Currency (Taxes) Regulations 1998

          6. 78. The Insurance Companies (Capital Redemption Business)(Modification of the Corporation Tax Acts) Regulations 1999

6. Explanatory Note