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Finance Act 1987

Status:

This is the original version (as it was originally enacted).

  1. Introductory Text

  2. Part I Customs and Excise and Value Added Tax

    1. Chapter I Customs and Excise

      1. Duties of excise

        1. 1.Unleaded petrol

        2. 2.Vehicles excise duty

        3. 3.Abolition of general betting duty on on-course bets

        4. 4.Gaming machine licence duty: rates

        5. 5.Gaming machine licence duty: other amendments

      2. Amendments of the Management Act

        1. 6.Access to approved wharves and transit sheds

        2. 7.Powers of search and access etc. in respect of vehicles

        3. 8.Local export control

        4. 9.Records relating to importation and exportation

        5. 10.Information powers

    2. Chapter II Value Added Tax

      1. 11.Accounting for and payment of tax

      2. 12.Credit for input tax

      3. 13.Supplies abroad etc.

      4. 14.Registration

      5. 15.Supplies to groups

      6. 16.Tour operators

      7. 17.Valuation of supplies at less than market value

      8. 18.Issue of securities

      9. 19.Interpretation and miscellaneous further amendments

  3. Part II Income Tax, Corporation Tax and Capital Gains Tax

    1. Chapter I General

      1. Tax rates

        1. 20.Charge of income tax for 1987-88

        2. 21.Charge of corporation tax for financial year 1987

        3. 22.Corporation tax: small companies

        4. 23.Deduction rate for sub-contractors in construction industry

      2. Personal reliefs etc.

        1. 24.Personal reliefs: operative date for PAYE

        2. 25.Relief for interest

        3. 26.Increased personal relief for those aged eighty and over

        4. 27.Invalid care allowance and unemployment benefit

        5. 28.Increased relief for blind persons

        6. 29.Income support etc.

      3. Friendly societies, trade unions and charities

        1. 30.Registered friendly societies

        2. 31.Relief in respect of certain income of trade unions

        3. 32.Charities: payroll deduction scheme

      4. Employees etc.

        1. 33.Employee share schemes, etc.

        2. 34.Employees seconded to educational bodies

        3. 35.Relief for costs of training etc.

      5. Companies

        1. 36.Time for payment of corporation tax by certain long-established companies and building societies

        2. 37.Close companies: meaning of "associate"

      6. Unit trusts and investment companies

        1. 38.Authorised unit trusts

        2. 39.Other unit trusts

        3. 40.Unit trusts: miscellaneous amendments

        4. 41.Investment companies, etc.

      7. Business expansion scheme

        1. 42.Carry-back of relief

        2. 43.Films

      8. Oil industry: advance corporation tax

        1. 44.Limited right to carry back surrendered ACT

        2. 45.Surrender of ACT where oil extraction company owned by a consortium

        3. 46.ACT on redeemable preference shares

    2. Chapter II Capital Gains

      1. 47.Retirement relief

  4. Part III Stamp Duty and Stamp Duty Reserve Tax

    1. Stamp duty

      1. 48.Unit trusts

      2. 49.Contract notes

      3. 50.Warrants to purchase Government stock, etc.

      4. 51.Bearer instruments relating to stock in foreign currencies

      5. 52.Clearance services

      6. 53.Borrowing of stock by market makers

      7. 54.Shared ownership transactions

      8. 55.Crown exemption

    2. Stamp duty reserve tax

      1. 56.Stamp duty reserve tax

  5. Part IV Inheritance Tax

    1. 57.Reduced rates of tax

    2. 58.Securities, other business property and agricultural property

    3. 59.Maintenance funds for historic buildings etc.

    4. 60.Acceptance in lieu: waiver of interest

  6. Part V Oil Taxation

    1. 61.Nomination of disposals and appropriations

    2. 62.Market value of oil to be determined on a monthly basis

    3. 63.Blends of oil from two or more fields

    4. 64.Relief for research expenditure

    5. 65.Cross-field allowance of certain expenditure incurred on new fields

    6. 66.Oil allowance: adjustment for final periods

    7. 67.Variation of decisions on claims for allowable expenditure

  7. Part VI Miscellaneous and Supplementary

    1. 68.Abolition of enactments relating to exchange control

    2. 69.Regulation of financial dealings

    3. 70.Arrangements specified in Orders in Council relating to double taxation relief etc.

    4. 71.Pre-consolidation amendments

    5. 72.Short title, interpretation, construction and repeals

  8. SCHEDULES

    1. SCHEDULE 1

      Vehicles Excise Duty

      1. Part I Tables Substituted in Part II of Schedule 4 to the Acts of 1971 and 1972

      2. Part II Recovery Vehicles

        1. Interpretation

          1. 1.In this Part of this Schedule— "the 1971 Act" means...

          2. 2.At the end of Part I of Schedule 3 to...

        2. The charge of duty

          1. 3.At the end of the Table in Part II of...

        3. Recovery vehicles not chargeable as goods vehicles

          1. 4.(1) In Part I of Schedule 4 to each of...

        4. Exclusion of recovery vehicles from trade licences

          1. 5.In section 16 of the 1971 Act (trade licences)—

          2. 6.In section 16 of the 1972 Act (trade licences)—

      3. Part III Miscellaneous Amendments

        1. Introductory

          1. 7.In this Part of this Schedule— "the 1971 Act" means...

        2. Additional liability for evasion of duty

          1. 8.In section 9(3) of the 1971 Act (circumstances in which...

          2. 9.In section 9(4) of the 1972 Act (circumstances in which...

          3. 10.In section 18A(7) of the 1971 Act (circumstances in which...

          4. 11.In section 18A(7) of the 1972 Act (circumstances in which...

          5. 12.In Part I of Schedule 7 to the 1971 Act...

          6. 13.In Part I of Schedule 9 to the 1972 Act...

        3. Offences relating to trade licences

          1. 14.In section 16(7) of the 1971 Act (offences relating to...

          2. 15.In section 16(8) of the 1972 Act (offences relating to...

        4. Regulations concerning transfer etc. of vehicles

          1. 16.(1) Section 23 of the 1971 Act (regulations with respect...

          2. 17.(1) Section 23(1) of the 1972 Act (regulations with respect...

        5. Increase of certain penalties for offences under regulations

          1. 18.(1) Section 37 of the 1971 Act (regulations) shall be...

          2. 19.(1) Section 34 of the 1972 Act (regulations) shall be...

        6. Dishonoured cheques

          1. 20.In subsection (3) of section 102 of the Customs and...

          2. 21.After paragraph 2 of Part II of Schedule 6 to...

    2. SCHEDULE 2

      Amendments of Value Added Tax Act 1983

      1. Supplies received from abroad

        1. 1.Section 7 of the principal Act (reverse charge on supplies...

      2. Repayment of tax on importation to those in business overseas

        1. 2.In subsection (1) of section 23 of the principal Act...

      3. Transfers of going concerns

        1. 3.In section 33 of the principal Act (transfers of going...

      4. Appeals

        1. 4.In section 40(1) of the principal Act (appeals) for paragraph...

    3. SCHEDULE 3

      Income Support

      1. Part I The Taxable Maximum

        1. 1.(1) For the purposes of subsections (3) and (4) of...

        2. 2.Where the income support is paid to one of a...

        3. 3.Where the income support is paid to one of a...

        4. 4.Where the income support is paid to a person who...

      2. Part II Consequential Amendments

        1. The Income and Corporation Taxes Act 1970

          1. 5.In subsection (2) of section 530 of the Taxes Act...

        2. The Finance Act 1981

          1. 6.In section 28(1) of the Finance Act 1981 (notification of...

          2. 7.In section 29 of the Finance Act 1981 (pay as...

    4. SCHEDULE 4

      Employee Share Schemes, etc.

      1. Part I Amendments of Schedule 10 to the Finance Act 1980 and Schedule 10 to the Finance Act 1984

        1. 1.(1) In Schedule 10 to the Finance Act 1980 (savings-related...

        2. 2.(1) In Schedule 10 of the Finance Act 1984 (approved...

      2. Part II Transitional Provisions

        1. 3.(1) Where an existing scheme is altered before 1st August...

      3. Part III Consequential Provisions Relating to Capital Gains Tax

        1. 4.In section 47 of the Finance Act 1980 (savings-related share...

        2. 5.In section 38 of the Finance Act 1984 (approved share...

      4. Part IV Material Interest Test

        1. Interests under trusts

          1. 6.(1) This paragraph applies in a case where—

        2. Options etc.

          1. 7.(1) For the purposes of paragraph (a) of subsection (6)...

        3. Shares held by trustees of approved profit sharing schemes

          1. 8.In applying section 285(6) of the Taxes Act (cases in...

    5. SCHEDULE 5

      Supplementary Provisions as to Training Costs

      1. Interpretation

        1. 1.(1) In this Schedule— "the principal section" means section 35...

      2. Qualifying courses of training

        1. 2.Subject to paragraph 3 below, a course is a qualifying...

        2. 3.A course shall not be regarded as a qualifying course...

      3. Courses undertaken with a view to retraining

        1. 4.(1) An employee shall not be regarded as undertaking a...

      4. Relevant expenses

        1. 5.(1) Where an employee undertakes a qualifying course of training,...

    6. SCHEDULE 6

      Transitional Provisions as to Corporation Tax Payment Dates

      1. Part I Companies

        1. Interpretation

          1. 1.(1) In this Part of this Schedule an "old company"...

        2. General rules

          1. 2.Subject to paragraph 5 below, with respect to the first...

          2. 3.Subject to paragraph 5 below, with respect to any accounting...

          3. 4.In relation to any accounting period of an old company...

          4. 5.If the accounting period referred to in paragraph 2 above...

        3. Consequential provisions

          1. 6.With respect to any accounting period of an old company...

          2. 7.In section 88 of the Taxes Management Act 1970 (interest...

          3. 8.With respect to any accounting period of an old company...

      2. Part II Building Societies

        1. 9.In this Part of this Schedule a "1989 accounting period"...

        2. 10.Where, by virtue of section 344(2)(a) of the Taxes Act,...

        3. 11.If, apart from this paragraph, the date on which, under...

        4. 12.With respect to a 1989 accounting period of a building...

    7. SCHEDULE 7

      Stamp Duty Reserve Tax

      1. 1.Part IV of the Finance Act 1986 shall be amended...

      2. Principal charge

        1. 2.(1) In section 87, after subsection (7) there shall be...

      3. Renounceable letters of allotment, etc.

        1. 3.(1) In section 88(3)(a), after the words "subsection (2)" there...

      4. Market makers in options

        1. 4.(1) In section 89, after subsection (1) there shall be...

      5. Clearance services

        1. 5.(1) In section 90, for subsection (5) there shall be...

      6. Charities etc.

        1. 6.(1) In section 90, at the end there shall be...

      7. Interest on tax repayments

        1. 7.(1) In section 92, after subsection (4) there shall be...

    8. SCHEDULE 8

      Securities, Other Business Property and Agricultural Property

      1. 1.In section 10 of the 1984 Act (dispositions not intended...

      2. 2.In section 98 of the 1984 Act (effect of alterations...

      3. 3.In section 100 of the 1984 Act (alterations of capital...

      4. 4.In section 104 of the 1984 Act (relief for business...

      5. 5.(1) Section 105 of the 1984 Act (relevant business property)...

      6. 6.In section 107 of the 1984 Act (replacements) in subsection...

      7. 7.After section 109 of the 1984 Act there shall be...

      8. 8.(1) In section 113A of the 1984 Act (application of...

      9. 9.In section 124A of the 1984 Act (application of agricultural...

      10. 10.In section 136 of the 1984 Act (transactions of close...

      11. 11.In section 140(2) of the 1984 Act (market value for...

      12. 12.(1) In section 168 of the 1984 Act (unquoted shares...

      13. 13.(1) In section 178 of the 1984 Act (sale of...

      14. 14.In section 180 of the 1984 Act (effect of purchases)...

      15. 15.(1) In section 227 of the 1984 Act (payment by...

      16. 16.(1) In section 228 of the 1984 Act (shares etc....

      17. 17.In section 272 of the 1984 Act (general interpretation) after...

      18. 18.(1) In Schedule 20 to the Finance Act 1986 (gifts...

    9. SCHEDULE 9

      Maintenance Funds for Historic Buildings etc.

      1. 1.The following section shall be inserted after section 57 of...

      2. 2.At the end of paragraph 3 of Schedule 4 to...

      3. 3.After paragraph 15 of that Schedule there shall be inserted—...

      4. 4.Paragraph 1 above shall have effect in relation to deaths...

      5. 5.Paragraph 2 above shall have effect in relation to directions...

      6. 6.Paragraph 3 above shall have effect where the occasion of...

    10. SCHEDULE 10

      Nomination Scheme for Disposals and Appropriations

      1. Interpretation

        1. 1.(1) In this Schedule—"month" means calendar month; "nominal volume" shall...

      2. Transactions which may be nominated

        1. 2.(1) The proposed transactions which may be nominated by a...

      3. Period for which nomination has effect

        1. 3.(1) Subject to sub-paragraph (3) below, a nomination shall have...

      4. Timing of nominations

        1. 4.(1) Subject to sub-paragraph (2) below, a nomination shall be...

      5. Content of nomination

        1. 5.(1) A nomination of a proposed transaction shall not be...

      6. Nominated price

        1. 6.(1) Subject to sub-paragraph (3) below, in the case of...

      7. Nominal volume

        1. 7.(1) Subject to sub-paragraph (3) below, in the case of...

      8. Revision of nominations

        1. 8.(1) Except as provided by this paragraph, a nomination may...

      9. Effective volume for nominated transactions

        1. 9.(1) The provisions of this paragraph have effect to determine,...

      10. Aggregate effective volume for a month

        1. 10.(1) Subject to the provisions of this paragraph, for each...

      11. Aggregate nominated proceeds for a month

        1. 11.(1) For each month, a participator's aggregate nominated proceeds for...

      12. Blended oil

        1. 12.In accordance with regulations made by the Board, a person...

      13. Returns

        1. 13.In paragraph 2 of Schedule 2 to the principal Act...

    11. SCHEDULE 11

      Market Value of Oil

      1. Part I Amendments of Paragraphs 2, 2a and 3 of Schedule 3 to Principal Act

        1. 1.(1) Paragraph 2 of Schedule 3 (definition of market value...

        2. 2.In paragraph 2A of that Schedule (modifications in the case...

        3. 3.In paragraph 3 of that Schedule (aggregate market value of...

      2. Part II Consequential Amendments of Principal Act

        1. 4.In section 5A (allowance of exploration and appraisal expenditure) in...

        2. 5.In section 12 (interpretation) in subsection (1) in the definition...

        3. 6.In section 14 (valuation of oil disposed of or appropriated...

        4. 7.In Schedule 9 (sales etc. at undervalue or overvalue) in...

    12. SCHEDULE 12

      Supplementary Provisions as to Blended Oil

      1. Interpretation

        1. 1.In this Schedule— (a) "the principal section" means section 63...

      2. Amendments of allocation by the Board

        1. 2.If at any time it appears to the Board that...

      3. Appeals

        1. 3.(1) Where the Board give notice to the participators in...

        2. 4.Any method or amended method of allocation having effect by...

    13. SCHEDULE 13

      Relief for Research Expenditure

      1. Part I Section to be Inserted after Section 5A of the Principal Act

      2. Part II Amendments Relating to the New Allowance

        1. The principal Act

          1. 1.In section 2(9) of the principal Act (amounts to be...

          2. 2.In section 3 of that Act, in subsection (3) (expenditure...

          3. 3.In section 9 of that Act (limit on amount of...

          4. 4.In paragraph 2 of Schedule 2 to that Act (returns...

          5. 5.(1) In Schedule 7 to that Act (claim for allowance...

        2. The Petroleum Revenue Tax Act 1980

          1. 6.In the Schedule to the Petroleum Revenue Tax Act 1980...

        3. The Finance Act 1980

          1. 7.In Schedule 17 to the Finance Act 1980 (transfers of...

        4. The Finance Act 1981

          1. 8.In section 111 of the Finance Act 1981 (restriction of...

        5. The Finance Act 1984

          1. 9.(1) In section 113 of the Finance Act 1984 (restriction...

      3. Part III Receipts to be Set Against Allowable Expenditure

        1. 10.In this Part of this Schedule— "allowable expenditure" means expenditure...

        2. 11.(1) A return made by a participator for a chargeable...

        3. 12.(1) This paragraph applies where— (a) a claim for allowable...

    14. SCHEDULE 14

      Cross-Field Allowance

      1. Part I Elections

        1. General

          1. 1.(1) An election shall be made in such form as...

        2. Earliest date for an election

          1. 2.(1) No election may be made in respect of an...

        3. Latest date for election

          1. 3.(1) Subject to sub-paragraph (2) below, an election by a...

        4. Two or more elections relating to same expenditure

          1. 4.Where more than one election is made in respect of...

      2. Part II Effect on Receiving Field

        1. 5.(1) In relation to an election, the assessment to tax...

        2. 6.In any case where— (a) an election is made in...

        3. 7.In any case where, following the giving of a notice...

      3. Part III Relevant New Fields and Associated Companies

        1. Relevant new fields

          1. 8.(1) For the purposes of the principal section "relevant new...

          2. 9.(1) In paragraph 8 above "development" means—

        2. Associated companies

          1. 10.(1) For the purposes of the principal section, a company...

      4. Part IV Supplemental and Consequential Provisions

        1. Notice of variation reducing expenditure qualifying for supplement

          1. 11.(1) This paragraph applies in any case where—

        2. Elections following variation increasing expenditure qualifying for supplement

          1. 12.(1) In any case where— (a) an amount of expenditure...

        3. Limit on amount of tax payable in respect of receiving field

          1. 13.(1) Where an election has been made by a participator,...

    15. SCHEDULE 15

      Pre-Consolidation Amendments: Income Tax and Corporation Tax

      1. The Capital Allowances Act 1968 (c. 3)

        1. 1.In section 34(4) of the Capital Allowances Act 1968 for...

      2. The Income and Corporation Taxes Act 1970 (c. 10)

        1. 2.(1) The Income and Corporation Taxes Act 1970 shall have...

      3. The Finance Act 1970 (c. 24)

        1. 3.In section 20(3) of the Finance Act 1970 for "an...

      4. The Finance Act 1972 (c. 41)

        1. 4.In paragraph 10(9) of Schedule 16 to the Finance Act...

      5. The Finance Act 1973 (c. 51)

        1. 5.In paragraph 1(6)(b) of Schedule 12 to the Finance Act...

      6. The Finance Act 1974 (c. 30)

        1. 6.In section 27(5) of the Finance Act 1974 for "specified...

      7. The Finance Act 1975 (c. 7)

        1. 7.(1) In section 12 of the Finance Act 1975 for...

      8. The Finance (No. 2) Act 1975 (c.45)

        1. 8.(1) In section 42(11) of the Finance (No.2) Act 1975...

      9. The Finance Act 1976 (c. 40)

        1. 9.In paragraph 13(4) of Schedule 4 to the Finance Act...

      10. The Finance Act 1977 (c. 36)

        1. 10.In section 38(2)(b) of the Finance Act 1977 for "subsection...

      11. The Finance Act 1978 (c. 42)

        1. 11.(1) Section 30(7)(c) of the Finance Act 1978 shall have...

      12. The Interpretation Act 1978 (c. 30)

        1. 12.In Schedule 1 to the Interpretation Act 1978 for the...

      13. The Finance Act 1980 (c. 48)

        1. 13.(1) At the end of section 53 of the Finance...

      14. The Finance Act 1981 (c. 35)

        1. 14.(1) In section 48(10) of the Finance Act 1981 for...

      15. The Finance Act 1983 (c. 28)

        1. 15.(1) At the end of paragraph 10(4) of Schedule 5...

      16. The Finance Act 1984 (c. 43)

        1. 16.(1) For section 96(6) of the Finance Act 1984 there...

      17. The Finance Act 1986 (c. 41)

        1. 17.At the end of paragraph 21(3) of Schedule 9 to...

    16. SCHEDULE 16

      Repeals

      1. Part I Vehicles Excise Duty

      2. Part II Betting and Gaming Duties

      3. Part III Management of Customs and Excise

      4. Part IV Value Added Tax

      5. Part V Income Tax and Corporation Tax: General

      6. Part VI Unit Trusts

      7. Part VII Income Tax and Corporation Tax: Pre-Consolidation Amendments

      8. Part VIII Stamp Duty

      9. Part IX Inheritance Tax

      10. Part X Oil Taxation

      11. Part XI Exchange Control

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