Finance Act 1973

PARTS I AND II U.K.

1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F1 U.K.

Textual Amendments

F1 S. 1 repealed by Finance (No. 2) Act 1975 (c. 45), ss. 8(1), 75(5), Sch. 14 Pt. I; Finance Act 1976 (c. 40), s. 132(5), Sch. 15 Pt. I; (with savings) Finance Act 1977 (c. 36), ss. 1(7), 59(5), Sch. 9 Pt. II

2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F2 U.K.

Textual Amendments

F2 S. 2 repealed by Customs and Excise Management Act 1979 (c. 2), s. 177(3), Sch. 6 Pt. I

3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F3 U.K.

Textual Amendments

F3 S. 3 repealed by Finance Act 1974 (c. 30), s. 57, Sch. 14 Pt. VI

4—8. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F4 U.K.

Textual Amendments

F4 Ss. 4–8 repealed (with savings) by Value Added Tax Act 1983 (c. 55), s. 50, Sch. 10 para. 5, Sch. 11

9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F5 U.K.

Textual Amendments

F5 S. 9 repealed by Finance (No. 2) Act 1975 (c. 45), s. 75(5), Sch. 14 Pt. IV

PART III U.K. INCOME TAX, CORPORATION TAX AND CAPITAL GAINS TAX

10—31. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F6 U.K.

Textual Amendments

F6 Ss. 10–31 repealed by Income and Corporation Taxes Act 1988 (c. 1, SIF 63:1), s. 844, Sch. 31

32 Information as to arrangements for transferring relief, etc. U.K.

(1) If a company—

(a) makes a claim for group relief, or

(b) being a party to a leasing contract, as defined in section [F7 395 of the Taxes Act 1988], claims relief as mentioned in subsection (1)(b) of that section, or

(c) being a member of a partnership, either claims any relief which, if subsection (2) of section [F7 116 of that Act], applied in relation to it, it would not be entitled to claim, or makes a return which is treated as a claim by virtue of section [F7 239(5) of that Act], or

(d) makes a claim under section [F7 240 of that Act] (surrender of advance corporation tax),

and the inspector has reason to believe that any relevant arrangements may exist, or may have existed at any time material to the claim, then at any time after the claim (or return) is made he may serve notice in writing on the company requiring it to furnish him, within such time being not less than thirty days from the giving of the notice as he may direct, with—

(i) a declaration in writing stating whether or not any such arrangements exist or existed at any material time, or

(ii) such information as he may reasonably require for the purpose of satisfying himself whether or not any such arrangements exist or existed at any material time, or

(iii) both such a declaration and such information.

(2) In this section “relevant arrangements”, in relation to a claim (including a return which is treated as a claim) falling within any of paragraphs (a) to (d) of subsection (1) above, means such arrangements as are referred to in that enactment which is specified in the corresponding paragraph below, that is to say,—

[F8 (a) section 410(1) or (2) of or paragraph 5(3) of Schedule 18 to the Taxes Act 1988;

(b) section 395(1)(c) of that Act;

(c) section 116(1) of that Act;

(d) paragraph 5(3) of Schedule 18 to or section 240(11) of that Act].

(3) In a case falling within paragraph (a) of subsection (1) above, a notice under that subsection may be served on the surrendering company, within the meaning of section [F7 402 of the Taxes Act], instead of or as well as on the company claiming relief.

(4) In a case falling within paragraph (c) of subsection (1) above, a notice under that subsection may be served on the partners instead of or as well as on the company alone, and accordingly may require them, instead of or as well as the company, to furnish the declaration, information or declaration and information concerned.

(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F9

(6) In this section, . . . F10 “arrangements” means arrangements of any kind, whether in writing or not.

Textual Amendments

F7 Words substituted by Income and Corporation Taxes Act 1988 (c. 1, SIF 63:1), Sch. 29, para. 32

F8 S. 32(2)(a)–(d) substituted by Income and Corporation Taxes Act 1988 (c. 1, SIF 63:1), Sch. 29 para. 32.

F9 S. 32(5) repealed by Income and Corporation Taxes Act 1988 (c. 1, SIF 63:1), s. 844, Sch. 31

F10 Words repealed by Income and Corporation Taxes Act 1988 (c. 1, SIF 63:1), s. 844, Sch. 31

33—36. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F11 U.K.

Textual Amendments

F11 Ss. 33–36 repealed by Income and Corporation Taxes Act 1988 (c. 1, SIF 63:1), s. 844, Sch. 31

37 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F12 U.K.

Textual Amendments

F12 S. 37 repealed by Capital Gains Tax Act 1979 (c. 14, SIF 63:2), s. 158, Sch. 8

38 Territorial extension of charge to income tax, capital gains tax and corporation tax. U.K.

(1) The territorial sea of the United Kingdom shall for all purposes of . . . F13 , capital gains tax and . . . F13 (including the following provisions of this section) be deemed to be part of the United Kingdom.

(2) In this section and in Schedule 15 to this Act—

(a) “exploration or exploitation activities” means activities carried on in connection with the exploration or exploitation of so much of the seabed and subsoil and their natural resources as is situated in the United Kingdom or a designated area; and

(b) “exploration or exploitation rights” means rights to assets to be produced by exploration or exploitation activities or to interests in or to the benefit of such assets; and

(c) references to the disposal of exploration or exploitation rights include references to the disposal of shares deriving their value or the greater part of their value directly or indirectly from such rights, other than shares quoted on a recognised stock exchange (within the meaning of the Corporation Tax Acts); and

(d) “shares” includes stock and any security as defined in section [F14 254(1) of the Tax Act 1988]; and

(e) “designated area” means an area designated by Order in Council under section 1(7) of the M1 Continental Shelf Act 1964.

(3) [F14 Any gains accruing on the disposal of exploration or exploitation rights] shall be treated for the purposes of [F15 the Capital Gains Tax Act 1979] as gains accruing on the disposal of assets situated in the United Kingdom.

[F16 (3A) Gains accruing on the disposal of—

(a) exploration or exploitation assets which are situated in a designated area, or

(b) unquoted shares deriving their value or the greater part of their value directly or indirectly from exploration or exploitation assets situated in the United Kingdom or a designated area or from such assets and exploration or exploitation rights taken together,

shall be treated for the purposes of the Capital Gains Tax Act 1979 as gains accruing on the disposal of assets situated in the United Kingdom.

(3B) For the purposes of this section, an asset disposed of is an exploration or exploitation asset if either—

(a) it is not a mobile asset and it is being or has at some time . . . F17 been used in connection with exploration or exploitation activities carried on in the United Kingdom or a designated area; or

(b) it is a mobile asset which [F18 has at some time] been used in connection with exploration or exploitation activities so carried on and is dedicated to an oil field in which the person making the disposal, or a person connected with him within the meaning of section [F14 839 of the Taxes Act 1988], is or has been a participator;

and expressions used in paragraphs (a) and (b) above have the same meaning as if those paragraphs were included in Part I of the Oil Taxation Act 1975.

(3C) In paragraph (b) of subsection (3A) above “unquoted shares” means shares other than those which are quoted on a recognised stock exchange (within the meaning of the Corporation Tax Acts); and references in subsections (4) and (5) below to exploration or exploitation assets include references to unquoted shares falling within that paragraph.]

[F19 (4) Gains accruing to a person not resident in the United Kingdom on the disposal of exploration or exploitation rights or of exploration or exploitation assets shall, for the purposes of capital gains tax or corporation tax on chargeable gains, be treated as gains accruing on the disposal of assets used for the purposes of a trade carried on by that person in the United Kingdom through a branch or agency.

This subsection shall have effect in relation to gains accruing on disposals before 13th March 1984 with the omission of the words “exploration or exploitation assets”.]

(5) In relation to exploration or exploitation rights [F20 or exploration or exploitation assets] disposed of by a company resident in a territory outside the United Kingdom to a company resident in the same territory or in the United Kingdom, sections 273 to 275 and 278 to 279 of [F14 the Taxes Act 1970] (transfer within group and company ceasing to be member of group) shall apply as if in section 272 of that Act (definition of “group” etc.) subsections (1)(a) and (2) were omitted.

(6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F21

(7) This section shall have effect for the purposes of income tax and capital gains tax for the year 1973-74 and subsequent years of assessment and for the purposes of corporation tax for the financial year 1973 and subsequent years.

(8) Schedule 15 to this Act shall have effect for supplementing this section.

Textual Amendments

F13 Words repealed by Income and Corporation Taxes Act 1988 (c. 1, SIF 63:1), s. 844, Sch. 31

F14 Words substituted by Income and Corporation Taxes Act 1988 (c. 1, SIF 63:1), Sch. 29, para. 32

F15 Words substituted by Capital Gains Tax Act 1979 (c. 14, SIF 63:2), s. 157, Sch. 7 para. 8

F16 S. 38(3A)–(3C) inserted by Finance Act 1984 (c. 43) s. 81(2) (in relation to disposals on or after 13th March 1984)

F17 Words repealed (where assets are disposed of on or after 14.3.1989) by Finance Act 1989 (c. 26, SIF 63:1), ss. 130(1)(a)(2), 187(1), Sch. 17 Pt. VII, Note 1

F18 Words substituted by Finance Act 1989 (c. 26, SIF 63:1), s. 130(1)(b)(2)

F19 S. 38(4) substituted by Income and Corporation Taxes Act 1988 (c.1, SIF 63:1), Sch. 29 para. 12

F20 Words inserted by Finance Act 1984 (c. 43), s. 81(1)(2)(4) (in relation to disposals after 13th March 1984)

F21 S. 38(6) repealed by Income and Corporation Taxes Act 1988 (c. 1, SIF 63:1), s. 844, Sch. 31

Modifications etc. (not altering text)

C1 Definition applied in connection with certain transactions of petroleum companies by Oil Taxation Act 1975 (c. 22), Sch. 9 para. 3 and company migration by Finance Act 1988 (c. 39, SIF 63:1, 2) s. 105.

C2 Definition applied in connection with company migration by Finance Act 1988 (c. 39, SIF 63:1, 2), s. 105.

C3 See Taxes Management Act 1970 (c. 9, SIF 63:1), s. 31(3): appeals against assessments made by virtue of this section, otherwise than under Sch.E, to go to Special Commissioners

Marginal Citations

M1 1964 c. 29.

39, 40. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F22 U.K.

Textual Amendments

F22 Ss. 39, 40 repealed by Income and Corporation Taxes Act 1988 (c. 1, SIF 63:1), s. 844, Sch. 31

41 General Commissioners’ divisions. U.K.

The boundaries of any division specified by an order made or having effect as if made under section 2(6) of the Taxes Management Act 1970 and in operation immediately before—

(a) 1st April 1974, if the division is in England or Wales; and

(b) 16th May 1975, if the division is in Scotland;

shall remain the same on and after that day as if there were then no change of local government areas (but without prejudice to the making of new orders under that section).

42 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F23 U.K.

Textual Amendments

F23 S. 42 repealed by Finance Act 1976 (c. 40), s. 49(2)(b), Sch. 15 Pt. III

43 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F24 U.K.

Textual Amendments

F24 S. 43 repealed by Income and Corporation Taxes Act 1988 (c. 1, SIF 63:1), s. 844, Sch. 31

44 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F25 U.K.

Textual Amendments

F25 S. 44 repealed by Finance Act 1987 (c. 16), s. 72(7), Sch. 16 Pt. VII.

PART IV U.K.

45,46 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .F26 U.K.

Textual Amendments

F26 Ss. 45, 46 repealed (with savings) by Finance Act 1975 (c. 7), ss. 50, 52(2)(3), 59, Sch. 13 Pt. I

Part V U.K. Stamp Duty

47, 48. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F27 U.K.

Textual Amendments

F27 Ss. 47, 48 repealed by Finance Act 1988 (c. 39, SIF 114), ss. 14(1)(2)(6), 148, Sch. 14 Pt. XI

49 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F28 U.K.

Textual Amendments

F28 S. 49 repealed by Finance Act 1988 (c. 39, SIF 114), s. 148, Sch. 14 Pt. XI

50 Temporary statutory effect of House of Commons resolution affecting stamp duties. U.K.

(1) Where the House of Commons passes a resolution which—

(a) provides for the variation or abolition of an existing stamp duty . . . F29 ; and

(b) is expressed to have effect for a period stated in the resolution in accordance with the following provisions of this section; and

(c) contains a declaration that it is expedient in the public interest that the resolution should have statutory effect under the provisions of this section;

then, subject to subsection (3) of this section, the resolution shall for the period so stated have statutory effect as if contained in an Act of Parliament.

(2) The period to be stated in a resolution is a period expressed as beginning on a date so stated and ending on, or thirty-one days or such less number of days as may be so stated after, the earliest of the dates mentioned in this subsection; and those dates are—

(a) the twenty-fifth day on which, after the day the resolution is passed, the House of Commons sits without a Bill containing provisions to the same effect as the resolution being read a second time and without a Bill being amended (whether by the House or a Committee of the House or a Standing Committee) so as to include such provisions;

(b) the rejection of such provisions during the passage through the House of a Bill containing them;

(c) the dissolution or prorogation of Parliament; and

(d) the expiration of the period of five months beginning with the day on which the resolution takes effect.

(3) A resolution shall cease to have statutory effect under this section if an Act comes into operation varying or abolishing the duty.

(4) The ending of the period for which a resolution has statutory effect under the provisions of this section shall not affect the validity of anything done during that period.

Textual Amendments

F29 Words repealed by Finance Act 1975 (c. 7), Sch. 13 Pt. I

Modifications etc. (not altering text)

C4 S. 50 extended (N.I.) by Finance (No. 2) Act 1975 (c. 45), s. 72.

PART VI U.K.

51 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F30 U.K.

Textual Amendments

F30 S. 51 repealed by Capital Gains Tax Act 1979 (c. 14), s. 158, Sch. 8

52, 53. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F31 U.K.

Textual Amendments

F31 Ss. 52, 53 repealed by Income and Corporation Taxes Act 1988 (c. 1, SIF 63:1), s. 844, Sch. 31

54 Amendments consequential on establishment of The Stock Exchange. U.K.

(1) In the enactments relating to . . . F32 , . . . F33 , . . . F34 . . . F32 stamp duty—

(a) references to the Stock Exchange, London or the London Stock Exchange, a stock exchange in the United Kingdom or a recognised stock exchange in the United Kingdom shall be construed as references to The Stock Exchange;

(b) references to quotation on a stock exchange in the United Kingdom on a recognised stock exchange in the United Kingdom shall be construed as references to listing in the Official List of The Stock Exchange; and

(c) references to a member of a stock exchange in the United Kingdom shall be construed as references to a member of The Stock Exchange;

and those enactments shall have effect subject to the amendments specified in Schedule 21 to this Act.

(2) This section shall be deemed to have come into operation on 25th March 1973 but shall not affect the operation of any enactment in relation to anything done before that day.

Textual Amendments

F32 Word(s) repealed by Income and Corporation Taxes Act 1988 (c. 1, SIF 63:1), s. 844, Sch. 31

F33 Words repealed by Capital Gains Tax Act 1979 (c. 14, SIF 63:2), s. 158, Sch. 8 (for 1979–80 et seq.)

F34 Words repealed by Finance Act 1975 (c. 7), s. 59, Sch. 13 Pt. I (in relation to deaths after 12th March 1975)

55 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F35 U.K.

Textual Amendments

F35 S. 55 repealed (with savings) by Value Added Tax Act 1983 (c. 55), s. 50, Sch. 10 para. 5, Sch. 11

56 Charges for services, etc., by Government departments. U.K.

(1) Where a Government department, in pursuance of any Community obligation or any international agreement or arrangement, provides any services or facilities or issues any authorisation, certificate or other document, it may, in connection therewith, require the payment of such fees or other charges as may be prescribed by, or determined under, regulations made by the Minister in charge of the department with the consent of the Treasury.

(2) Regulations under this section may provide for the recovery and disposal of any sums payable under the regulations and make different provision for different circumstances.

(3) The powers conferred by this section are without prejudice to any powers exercisable apart from this section to require the payment of fees or other charges.

(4) Regulations under this section shall be made by statutory instrument, which shall be subject to annulment in pursuance of a resolution of either House of Parliament.

(5) In this section “Government department” includes a department of the Government of Northern Ireland, and any regulations which the Minister in charge of such a department is empowered to make under this section may be made either by him or by the department, and with the consent of the [F36 Department of Finance] for Northern Ireland instead of the Treasury; and in relation to regulations so made subsection (4) of this section shall not apply but they shall be subject to negative resolution, within the meaning of section 41(6) of the M2 Interpretation Act (Northern Ireland) 1954, as if they were a statutory instrument within the meaning of that Act.

(6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F37

Textual Amendments

F36 Words substituted by virtue of Northern Ireland Constitution Act 1973 (c. 36), Sch. 5 para. 8(1)

F37 S. 56(6) repealed by Statute Law (Repeals) Act 1977 (c. 18), Sch. 1 Pt. XIII

Modifications etc. (not altering text)

C5 Reference to Minister in charge of Department of Government of Northern Ireland to be construed as reference to head of department: Northern Ireland Constitution Act 1973 (c. 36), Sch. 5 para. 7(2)

C6 S. 56 extended (1.12.1998) by 1998 c. 38, s. 29(4) (with ss. 139(2), 143(2)); S.I. 1998/2789, art. 2

C7 S. 56(4) restricted (1.12.1998) by 1998 c. 38, s. 29(5) (with ss. 139(2), 143(2)); S.I. 1998/2789, art. 2

Marginal Citations

M2 1954 c. 33 (N.I.)

57 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F38 U.K.

Textual Amendments

F38 S. 57 repealed by Agriculture (Miscellaneous Provisions) Act 1976 (c. 55), s. 26(3), Sch. 4 Pt. I

58 Trustee Investments Act 1961—dividends of water companies. U.K.

(1) The Treasury may by order make such amendments in paragraph 10 of Part II of Schedule 1 to the M3 Trustee Investments Acts 1961 (under which a trustee’s power to invest in certain securities depends on the amount of dividends paid) and in any enactment or instrument modifying that paragraph as appear to them required in consequence of the repeal by the Finance Act 1972 of the provisions relating to the deduction of income tax from distributions made by companies.

(2) An order under this section may be varied or revoked by a subsequent order under this section, and any such order shall be made by statutory instrument, which shall be subject to annulment in pursuance of a resolution of either House of Parliament.

Marginal Citations

M3 1961 c.62.

59 Citation, interpretation, construction, extent and repeals. U.K.

(1) This Act may be cited as the Finance Act 1973.

[F39 (2) In this Act—

(a) “the Taxes Act 1970” means the Income and Corporation Taxes Act 1970; and

(b) “the Taxes Act 1988” means the Income and Corporation Taxes Act 1988.]

(3) In this Act—

(a) Part I shall be construed as one with the Customs and Excise Act 1952;

(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F40

(c) Part III, so far as it relates to income tax, shall be construed as one with the Income Tax Acts, so far as it relates to corporation tax, shall be construed as one with the COrporation Tax Acts and, so far as it relates to capital gains tax, shall be construed as one with [F41 the Capital Gains Tax Act 1979];

(d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F42

(e) Part V shall be construed as one with the M4 Stamp Act 1891.

(4) Except so far as the context otherwise requires, any reference in this Act to any enactment shall be construed as a reference to that enactment as amended, and as including a reference to that enactment as applied, by or under any other enactment, including this Act.

(5) Except as otherwise expressly provided, such of the provisions of this Act as relate to matters in respect of which the Parliament of Northern Ireland has power to make laws do not extend to Northern Ireland.

(6) If the Parliament of Northern Ireland passes provisions amending or replacing any enactment of that Parliament referred to in this Act the reference shall be construed as a reference to the enactment as so amended or, as the case may be, as a reference to those provisions.

(7) The enactments mentioned in Schedule 22 to this Act (which include certain enactments which had ceased to have effect before the commencement of this Act) are hereby repealed to the extent specified in the third column of that Schedule, but subject to any provision at the end of any Part of that Schedule.

Textual Amendments

F39 S. 59(2) substituted by Income and Corporation Taxes Act 1988 (c. 1, SIF 63:1), Sch. 29, para. 32

F40 S. 59(3)(b) repealed (with savings) by Value Added Tax Act 1983 (c. 55), s. 50, Sch. 10 para. 5, Sch. 11

F41 Words substituted by Capital Gains Tax Act 1979 (c. 14, SIF 63:2), s. 157, Sch. 7 para. 8 (for 1979–80 et seq.)

F42 S. 59(3)(d) repealed (with savings) by Finance Act 1975 (c. 7), ss. 50(2)(3), 59, Sch. 13 Pt. I

Modifications etc. (not altering text)

C8 The text of s. 59(3)(a), Sch. 16A, Sch. 21 para. 5 and Sch. 22 is in the form in which it was originally enacted: it was not reproduced in Statutes in Force and does not reflect any amendments or repeals which may have been made prior to 1.2.1991.

Marginal Citations

M4 1891 c. 39.