SCHEDULES
SCHEDULE 3 Married Couples: Minor and Consequential Provisions
Part I Amendments of the Taxes Act 1988
Introductory
1
The Taxes Act 1988 shall have effect subject to the following amendments.
Commencement of trade etc.
F122
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Discontinuance of trade etc.
F133
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Underpayments
F114
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Additional relief in respect of children
F15
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F26
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Widow’s bereavement allowance
7
1
The section set out in sub-paragraph (2) below shall have effect in substitution for section 262 (widow’s bereavement allowance) in relation to deaths occurring during the year 1989-90, and the section set out in sub-paragraph (3) below shall have effect in substitution for that section in relation to deaths occurring during the year 1990-91 or any subsequent year of assessment.
2
The section first referred to in sub-paragraph (1) above is—
262 Widow’s bereavement allowance.
Where a man dies in the year 1989-90 and for that year he is entitled to the higher (married person’s) relief under section 257(1), or would be so entitled but for an election under section 261 or 287, his widow shall be entitled—
a
for that year of assessment, to a deduction from her total income of an amount equal to the amount referred to in section 259(2), and
b
(unless she marries again before the beginning of it) for the year 1990-91, to a deduction from her total income of an amount equal to the amount specified in section 257A(1) for that year.
F33
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Blind person’s allowance
F198
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Payments securing annuities
F1810
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Married couples living together
F1511
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Business expansion scheme
12
1
For the year 1990-91 and subsequent years of assessment section 304 (business expansion scheme: husband and wife) shall have effect—
a
with the omission of subsections (1) to (4), and
b
with the substitution of the following subsections for subsections (5) and (6)—
5
Subsection (1) of section 299 shall not apply to a disposal made by a married man to his wife or a married woman to her husband at a time when they are living together; but where shares issued to one of them have been transferred to the other by a transaction inter vivos that subsection shall apply on the disposal of the shares by the transferee to a third person and any assessment for withdrawing relief in respect of the shares shall be made on the transferee.
6
If any relief given for the year 1989-90 or any earlier year of assessment in respect of shares for which a married man or married woman has subscribed and which were issued while they were living together falls to be withdrawn in the year 1990-91 or any subsequent year of assessment by virtue of a disposal of those shares by the person who subscribed for them, any assessment for withdrawing that relief shall be made on the person making the disposal and shall be made by reference to the reduction of tax flowing from the amount of the relief regardless of any allocation of that relief under section 280 or of any allocation of the reduction under section 284 for the year of assessment for which the relief was given.
2
Sub-paragraph (3) below applies where—
a
an amount is subscribed for shares in the year 1990-91 by one of a married couple who are living together,
b
the couple were married and living together throughout the year 1989-90, and
c
the subscriber claims that relief in respect of the amount be given partly by way of deduction from total income for the year 1989-90 in accordance with section 289(6).
3
Where this sub-paragraph applies—
a
the deduction shall be made from the husband’s total income (references in Chapter II of Part VII to the relief to which an individual is entitled in respect of any shares being construed accordingly), and
b
the limits in sections 289(7) and 290 shall apply jointly to the husband and wife for the year 1989-90 as respects the amount subscribed.
Qualifying maintenance payments
F2213
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Home loans
F414
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Close company loans
F2016
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Trade unions and employers’ associations
F2017
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Retirement benefit schemes
F1418
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Partnership retirement annuities
19
For the year 1990-91 and subsequent years of assessment section 628(1)
(partnership retirement annuities) shall have effect with the substitution of the words “a widow, widower or dependant of the former partner” for the words “
his widow or a dependant of his
”
.
F520
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Earned income
F2121
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total income
F1722
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Part II Other Provisions
Capital allowances
F623
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F724
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
The transition
25
The operation of section 279(1) of the Taxes Act 1988 for a year of assessment earlier than the year 1990-91 in the case of a married woman shall not affect the question whether there is any income of hers chargeable to income tax for the year 1990-91 or any subsequent year of assessment or, if there is, what is to be taken to be its amount for income tax purposes.
Returns
26
Where a man is required under section 8 of the M1Taxes Management Act 1970 to deliver a return which is—
a
so far as relates to certain sources of income, a return of income chargeable to income tax for the year 1990-91, and
b
so far as relates to the remaining sources of income, a return of income chargeable to income tax for the year 1989-90,
the same particulars shall be included in the return as would have been required had section 279 of the Taxes Act 1988 not been repealed by this Act.
27
Where a man delivers a return such as is mentioned in paragraph 26 above, the reference in sections 93(2) and 95(2) of the Taxes Management Act 1970 (penalties) to tax charged on or payable by him shall include a reference to tax charged on or payable by his wife in respect of any income of hers.
28
Where a woman is liable to a penalty under section 93(1) or 95(1) of the Taxes Management Act 1970, section 93(2) or 95(2) shall apply as if the reference to tax charged on or payable by her included a reference to any tax which is charged on or payable by her husband by virtue of section 279 of the Taxes Act 1988.
Time limits for assessments
F829
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Transfers of allowances
30
For the year 1990-91 and subsequent years of assessment the Taxes Management Act 1970 shall have effect with the insertion of the following section after section 37—
37A Effect of assessment where allowances transferred.
Where an assessment is made on any person for the purpose of making good a loss of tax wholly or partly attributable to fraud, wilful default or neglect, the fact that the person’s total income for any year of assessment is assessed as greater than it was previously taken to be shall not affect the validity of any deduction made from the total income of the person’s spouse by virtue of section 257B, 257D or 265 of the principal Act; and where any such deduction has been made in such a case, the total amount which the first-mentioned person is entitled to deduct from total income for the year in question shall be correspondingly reduced.
Class 4 social security contributions
F931
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Annual payments
32
Section 36 of this Act shall have effect in relation to a payment which is due from a husband to his wife or from a wife to her husband at a time after 5th April 1990 when they are living together, notwithstanding that the payment is made in pursuance of an obligation which is an existing obligation for the purposes of subsection (3) of that section.
Maintenance payments
F1033
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .