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Finance Act 1978

Status:

This is the original version (as it was originally enacted).

  1. Introductory Text

  2. PART I Customs and Excise

    1. 1.Tobacco products duty

    2. 2.Repayment of excise duty on beer etc.

    3. 3.Warehousing regulations

    4. 4.Control of movement of goods

    5. 5.Penalty for removing seals etc.

    6. 6.Anti-dumping measures on ECSC products

    7. 7.Gaming licence duty in Scotland

    8. 8.Vehicles excise duty: Great Britain

    9. 9.Vehicles excise duty: Northern Ireland

    10. 10.Continuation of powers under Finance Act 1961 s. 9

  3. PART II Value Added Tax

    1. 11.Registration

    2. 12.Bad debt relief

  4. PART III Income Tax, Corporation Tax and Capital Gains Tax

    1. CHAPTER I General

      1. 13.Charge of income tax for 1978-79

      2. 14.Lower rate income tax

      3. 15.Charge of corporation tax for financial year 1977

      4. 16.Rate of advance corporation tax for financial year 1978

      5. 17.Corporation tax: other rates and fractions

      6. 18.Relief for interest: limit for 1978-79

      7. 19.Alteration of personal reliefs

      8. 20.Child tax allowances and benefits in respect of children

      9. 21.Maintenance payments

      10. 22.Tax repayments to wives

      11. 23.Benefits in kind: threshold from 1979-80

      12. 24.Payments for loss of employment etc.

      13. 25.Life policies etc.

      14. 26.Retirement annuities

      15. 27.Relief for individuals carrying on trade etc. partly abroad

      16. 28.Farming and market gardening: relief for fluctuating profits

      17. 29.Divers and diving supervisors

      18. 30.Further relief for losses in early years of trade

      19. 31.Dealings in commodity futures: withdrawal of loss relief

      20. 32.Sale of land with right to repurchase: restriction of relief

      21. 33.Deduction rate for sub-contractors in the construction industry

      22. 34.Exemption for community land transactions

      23. 35.Close companies: relevant income

      24. 36.Close companies: acquisition of trades

      25. 37.Capital allowances: long leases

      26. 38.Capital allowances: hotels

      27. 39.Capital allowances: agricultural and forestry buildings and works

      28. 40.Capital allowances: sports grounds

      29. 41.Date for payment of tax for 1977-78

      30. 42.Deduction of tax from payments of interest in 1978-79

      31. 43.Repayment of tax paid under Police Regulations

    2. CHAPTER II Capital Gains

      1. 44.Relief for gains less than �9,500

      2. 45.Chattel exemption

      3. 46.Relief for gifts of business assets

      4. 47.Replacement of business assets

      5. 48.Transfer of business on retirement

      6. 49.Relief in respect of loans to traders

      7. 50.Relief for private residences

      8. 51.Part disposals of land

      9. 52.Alteration of dispositions taking effect on death

    3. CHAPTER III Profit Sharing Schemes

      1. 53.Approved profit sharing schemes: appropriated shares

      2. 54.The period of retention, the release date and the appropriate percentage

      3. 55.Disposal of scheme shares

      4. 56.Capital receipts in respect of scheme shares

      5. 57.Company reconstructions, amalgamations etc.

      6. 58.Excess or unauthorised shares

      7. 59.P.A.Y.E. deduction of tax

      8. 60.Schedule D deduction of payments to trustees

      9. 61.Interpretation and construction

  5. PART IV Capital Transfer Tax

    1. 62.Reduction of tax

    2. 63.Exemption limit for transfers to non-domiciled spouses

    3. 64.Further relief for business property

    4. 65.Further relief for woodlands

    5. 66.Definition of control of company

    6. 67.Employee trusts

    7. 68.Alteration of dispositions taking effect on death

    8. 69.Sales of interests under settlements

    9. 70.Charge on termination of discretionary trust

    10. 71.Protective trusts

    11. 72.Government securities in foreign ownership

    12. 73.Life policies and deferred annuity contracts

    13. 74.Increase in value of settled property by omission to exercise a right

  6. PART V Miscellaneous and Supplementary

    1. 75.National insurance surcharge

    2. 76.Development land tax

    3. 77.Disclosure of information to tax authorities in other member States

    4. 78.Local loans

    5. 79.Pre-consolidation amendments

    6. 80.Short title, interpretation, construction and repeals

  7. SCHEDULES

    1. SCHEDULE 1

      Amendments of Customs Duties (Dumping and Subsidies Act) 1969

      1. 1.In section 1 (charge of anti-dumping duties) in subsection (5)...

      2. 2.In section 2 (relief where margin of dumping lower than...

      3. 3.In section 3 (ascertainment of export price from country of...

      4. 4.(1) In section 4 (ascertainment of fair market price in...

      5. 5.(1) In section 5 (meaning of country of origin) in...

      6. 6.In section 6 (determination of export price and fair market...

      7. 7.In section 10 (additional provisions as to duties and reliefs)...

      8. 8.Section 11 (drawback on exportation) and section 12 (other reliefs...

      9. 9.In section 13 (construction of references to production of goods,...

      10. 10.In section 14 (power to require information from importers) subsections...

    2. SCHEDULE 2

      Lower Rate Income Tax

      1. 1.In section 30(3) of the Taxes Act for the words...

      2. 2.In section 34(1)(iii) of the Taxes Act after the words...

      3. 3.In section 36(1) of the Taxes Act for the words...

      4. 4.In section 287(1)(c) of the Taxes Act for the words...

      5. 5.In section 343(3) of the Taxes Act—

      6. 6.In section 399(4)(c) of the Taxes Act after the words...

      7. 7.In section 400(3) of the Taxes Act after the words...

      8. 8.In section 403(1) of the Taxes Act for the words...

      9. 9.In section 422(2) of the Taxes Act after the words...

      10. 10.In section 424(c) of the Taxes Act for the words...

      11. 11.In section 430(1) of the Taxes Act for the words...

      12. 12.In section 457(1) of the Taxes Act for the words...

      13. 13.In section 458(1) of the Taxes Act for the words...

      14. 14.In paragraph 2(2) of Schedule 7 to the Finance Act...

      15. 15.In section 87 of the Finance Act 1972—

      16. 16.In Schedule 16 to the Finance Act 1972—

      17. 17.In section 44 of the Finance Act 1973 for the...

      18. 18.In paragraph 19(1A) of Schedule 2 to the Finance Act...

      19. 19.In section 34(4)(c) of the Finance (No. 2) Act 1975...

    3. SCHEDULE 3

      Life Policies Etc

      1. Preliminary

        1. 1.In this Schedule references to any paragraphs not otherwise identified...

      2. Time of payment

        1. 2.The said Schedule 4 shall have effect as if any...

      3. Contracts for deferred annuities

        1. 3.In paragraph 1 (preliminary) for the words from " and...

      4. Personal accident insurance

        1. 4.After paragraph 2 there shall be inserted— (1) A policy which evidences a contract of insurance to...

      5. Non-resident members of armed forces, etc.

        1. 5.After paragraph 5 there shall be inserted— Paragraphs 4(2) and 5 above shall apply in relation to...

      6. Limit on deductions

        1. 6.Paragraph 6 (limit on deductions authorised under paragraph 5) shall...

      7. Payments to friendly societies and industrial assurance companies

        1. 7.(1) In paragraph 13 (1) (premiums to which the paragraph...

      8. Relief in respect of certain payments

        1. 8.(1) In paragraph 14 (notices excluding the application of paragraph...

        2. 9.—After paragraph 14 there shall be inserted— Where a person is entitled to relief under section 19...

      9. Regulations

        1. 10.In paragraph 16(2) (regulations for carrying Schedule into effect) the...

      10. Part payments to friendly societies

        1. 11.(1) Where— (a) a person is entitled to relief under...

      11. Part payments to trade unions

        1. 12.(1) Where a person makes a payment to a trade...

      12. Certification of qualifying policies

        1. 13.(1) Paragraph 11 of Schedule 1 to the Taxes Act...

    4. SCHEDULE 4

      Schedule D: Relief For Absence on Business Abroad

      1. PART I Computation of The Relief

        1. 1.In any year of assessment the relief to which an...

        2. 2.(1) Subject to sub-paragraph (2) below, any reference in this...

        3. 3.(1) For the purposes of this Schedule, for any year...

        4. 4.(1) Where for any year of assessment an individual is...

        5. 5.(1) The provisions of this paragraph apply where a claim...

        6. 6.Where, by virtue of section 154 of the Taxes Act...

      2. PART II Consequential Provisions

        1. 7.At the end of paragraph (c) of sub-paragraph (2) of...

        2. 8.In sub-paragraph (2) of paragraph 3 of Schedule 2 to...

    5. SCHEDULE 5

      Relevant Income of Close Companies—Amendments of Finance Act 1972, Schedule 16, Part II

      1. 1.At the end of paragraph 8 of Schedule 16 to...

      2. 2.After paragraph 12 of Schedule 16 to the Finance Act...

    6. SCHEDULE 6

      Capital Allowances: Hotels

      1. Initial allowances

        1. 1.In section 1(2) of the Capital Allowances Act 1968 for...

      2. Writing-down allowances

        1. 2.Section 2(3) of the said Act of 1968 shall apply...

      3. Balancing allowances and balancing charges

        1. 3.Subsection (1) of section 3 of the said Act of...

        2. 4.Where, after a building has ceased to be a qualifying...

        3. 5.The proviso to subsection (4) of the said section 3...

        4. 6.Where a balancing allowance or balancing charge falls to be...

      4. Temporary disuse

        1. 7.Paragraph 4 above has effect subject to section 12(1) of...

      5. Eligible expenditure

        1. 8.References in Chapter I of Part I of the said...

      6. Definitions

        1. 9.None of the provisions of section 7 of the said...

    7. SCHEDULE 7

      Relief for Gains Less than £9,500

      1. Preliminary

        1. 1.In this Schedule references to any subsections not otherwise identified...

      2. Husband and wife

        1. 2.(1) For any year of assessment during which a married...

        2. 3.(1) For any year of assessment during which or during...

      3. Personal representatives

        1. 4.For the year of assessment in which an individual dies...

      4. Trustees

        1. 5.(1) For any year of assessment during the whole or...

        2. 6.(1) For any year of assessment during the whole or...

    8. SCHEDULE 8

      Relief for Gifts of Business Assets

      1. PART I Agricultural Property and Settled Property

        1. Agricultural property

          1. 1.(1) This paragraph applies where— (a) after 11th April 1978...

        2. Settled property

          1. 2.(1) If, after 11th April 1978, a trustee is deemed,...

      2. PART II Reductions in Held-Over Gain

        1. Application and interpretation

          1. 3.(1) The provisions of this Part of this Schedule apply...

        2. Reductions peculiar to disposals of assets

          1. 4.If, in the case of a disposal of an asset,...

          2. 5.If, in the case of a disposal of an asset,...

        3. Reduction peculiar to disposal of shares

          1. 6.(1) If, in the case of a disposal of shares,...

        4. Reduction where gain partly relieved by retirement relief

          1. 7.(1) If, in the case of a disposal of an...

    9. SCHEDULE 9

      Profit Sharing Schemes

      1. PART I Approval of Schemes

        1. 1.(1) On the application of a body corporate (in this...

        2. 2.(1) The Board must be satisfied that at any time...

        3. 3.(1) If, at any time after the Board have approved...

        4. 4.If the company concerned is aggrieved by—

      2. PART II Conditions as to the Shares

        1. 5.The shares must form part of the ordinary share capital...

        2. 6.The shares must be either— (a) shares of a class...

        3. 7.The shares must be— (a) fully paid up; and

        4. 8.Except where the shares are in a company whose ordinary...

      3. PART III Individuals Ineligible to Participate

        1. 9.An individual shall not be eligible to have shares appropriated...

        2. 10.An individual shall not be eligible to have shares appropriated...

        3. 11.(1) An individual shall not be eligible to have shares...

      4. PART IV Provisions as to the Trust Instrument

        1. 12.The trust instrument shall provide that, as soon as practicable...

        2. 13.(1) The trust instrument must contain a provision prohibiting the...

        3. 14.The trust instrument must contain a provision requiring the trustees—...

        4. 15.The trust instrument must impose an obligation on the trustees—...

      5. PART V Interpretation

        1. 16.In this Schedule " control" shall be construed in accordance...

        2. 17.For the purposes of this Schedule a company is a...

    10. SCHEDULE 10

      Rates of Capital Transfer Tax

    11. SCHEDULE 11

      Employee Trusts

      1. The Finance Act 1975

        1. 1.(1) In paragraph 17(4) of Schedule 5 to the Finance...

      2. The Finance Act 1976

        1. 2.(1) In section 56 of the Finance Act 1976 for...

        2. 3.(1) In section 90 of the said Act of 1976,...

    12. SCHEDULE 12

      Customs and Excise Consolidation Amendments

      1. Alcoholic liquors

        1. 1.(1) Part IV of the Customs and Excise Act 1952...

        2. 2.In section 1(5) of the Finance Act 1964 (unfit spirituous...

        3. 3.In section 14(5) of the Finance (No. 2) Act 1975...

        4. 4.In section 15(6) of the Finance (No. 2) Act 1975...

        5. 5.In section 2(6) of the Finance Act 1976 (cider regulations),...

      2. Matches and mechanical lighters

        1. 6.(1) In section 220 of the 1952 Act (matches), the...

      3. Tobacco products

        1. 7.(1) In section 7 of the Finance Act 1963, in...

      4. Hydrocarbon oil

        1. 8.In sections 1(1), 2(3) and 21(3) of the Hydrocarbon Oil...

      5. Collection and management of, and certain reliefs from, duties

        1. 9.In section 37(1) of the 1952 Act (Channel Island goods)...

        2. 10.In section 43 of the 1952 Act (antiques, etc.), for...

        3. 11.In section 80(1) of the 1952 Act (warehoused goods) in...

        4. 12.In section 85(1) of the 1952 Act (deficiency in warehoused...

        5. 13.In section 259(1) of the 1952 Act (composite goods), for...

        6. 14.In section 263 of the 1952 Act (lost or destroyed...

        7. 15.In section 272(1) of the 1952 Act (duty-free goods for...

        8. 16.In section 285(2)(b) of the 1952 Act (imprisonment in default),...

        9. 17.In section 287 of the 1952 Act (application of penalties),...

        10. 18.After section 306 of the 1952 Act there shall be...

      6. Terminology

        1. 19.(1) In section 307(1) of the 1952 Act the following...

      7. Miscellaneous

        1. 20.In section 309(3) of the 1952 Act (Isle of Man)...

        2. 21.It is hereby declared that in section 17(1) of the...

        3. 22.It is hereby declared that in section 6(5) of the...

        4. 23.It is hereby declared that the references in section 8(3)...

        5. 24.(1) Sections 27, 28(2), (7) and (8), 31(5), (6), (8),...

        6. 25.In section 5 of the Import Duties Act 1958 (reliefs...

        7. 26.In section 13(4) of the Import Duties Act 1958 and...

    13. SCHEDULE 13

      Repeals

      1. PART I Customs and Excise

      2. PART II Value Added Tax

      3. PART III Income Tax

      4. PART IV Capital Gains

      5. PART V Capital Transfer Tax

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