Finance Act 1996

1. Introductory Text

2. Part I Excise Duties

   1. Alcoholic liquor duties

      1. 1. Spirits: rate of duty.

      2. 2. Wine and made-wine: rates.

      3. 3. Cider: rate of duty.

   2. Hydrocarbon oil duties

      1. 4. Rates of duty and rebate.

      2. 5. Misuse of rebated kerosene.

      3. 6. Mixing of rebated oil.

      4. 7. Marked oil used as fuel for road vehicles.

      5. 8. Relief for marine voyages.

   3. Tobacco products duty

      1. 9. Rates of duty.

   4. Betting duties: rates

      1. 10. General betting duty.

      2. 11. Pool betting duty.

   5. Amusement machine licence duty

      1. 12. Licences for machines as well as premises.

   6. Air passenger duty

      1. 13. Pleasure flights.

   7. Vehicle excise duty

      1. 14. Increase in general rate.

      2. 15. Electrically propelled vehicles.

      3. 16. Steam powered vehicles etc.

      4. 17. Vehicles capable of conveying loads.

      5. 18. Old vehicles.

      6. 19. Old vehicles: further provisions.

      7. 20. Exemptions for vehicle testing: general.

      8. 21. Exemptions for vehicle testing in Northern Ireland.

      9. 22. Other provisions relating to Northern Ireland.

      10. 23. Licensing and registration.

   8. Repeal of certain drawbacks and allowances

      1. 24. Repeal of certain drawbacks and allowances.

3. Part II Value Added Tax

   1. EC Second VAT Simplification Directive

      1. 25. EC Second VAT Simplification Directive.

      2. 26. Fiscal and other warehousing.

      3. 27. Value of imported goods.

      4. 28. Adaptation of aircraft and hovercraft.

      5. 29. Work on materials.

   2. Other provisions relating to charges to VAT

      1. 30. Refunds in connection with construction and conversion.

      2. 31. Groups: anti-avoidance.

      3. 32. Supplies of gold etc.

      4. 33. Small gifts.

   3. Payment and enforcement

      1. 34. Method of making payments on account.

      2. 35. Default surcharges.

      3. 36. Repeated misdeclaration penalty.

      4. 37. Penalties for failure to notify.

      5. 38. VAT invoices and accounting.

4. Part III Landfill Tax

   1. The basic provisions

      1. 39. Landfill tax.

      2. 40. Charge to tax.

      3. 41. Liability to pay tax.

      4. 42. Amount of tax.

   2. Exemptions

      1. 43. Material removed from water.

      2. 43A. Contaminated land.

      3. 43B. Contaminated land: certificates.

      4. 43C. Site restoration.

      5. 44. Mining and quarrying.

      6. 44A. Quarries.

      7. 45. Pet cemeteries.

      8. 46. Power to vary.

   3. Administration

      1. 47. Registration.

      2. 48. Information required to keep register up to date.

      3. 49. Accounting for tax and time for payment.

      4. 50. Power to assess.

   4. Credit

      1. 51. Credit: general.

      2. 52. Bad debts.

      3. 53. Bodies concerned with the environment.

   5. Review and appeal

      1. 54. Review of Commissioners’ decisions.

      2. 55. Appeals: general.

      3. 56. Appeals: other provisions.

      4. 57. Review and appeal: commencement.

   6. Miscellaneous

      1. 58. Partnership, bankruptcy, transfer of business, etc.

      2. 59. Groups of companies.

      3. 60. Information, powers, penalties, etc.

      4. 61. Taxable disposals: special provisions.

      5. 62. Taxable disposals: regulations.

      6. 63. Qualifying material: special provisions.

   7. Interpretation

      1. 64. Disposal of material as waste.

      2. 65. Disposal by way of landfill.

      3. 66. Landfill sites.

      4. 67. Operators of landfill sites.

      5. 68. Weight of material disposed of.

      6. 69. Taxable activities.

      7. 70. Interpretation: other provisions.

   8. Supplementary

      1. 71. Orders and regulations.

5. Part IV Income Tax, Corporation Tax and Capital Gains Tax

   1. Chapter I Principal provisions

      1. Income tax charge, rates and reliefs

         1. 72. Charge and rates of income tax for 1996-97.

         2. 73. Application of lower rate to income from savings.

         3. 74. Personal allowances for 1996-97.

         4. 75. Blind person’s allowance.

         5. 76. Limit on relief for interest.

      2. Corporation tax charge and rate

         1. 77. Charge and rate of corporation tax for 1996.

         2. 78. Small companies.

      3. Abolition of Schedule C charge etc.

         1. 79. Abolition of Schedule C charge etc.

   2. Chapter II Loan relationships

      1. Introductory provisions

         1. 80. Taxation of loan relationships.

         2. 81. Meaning of “loan relationship” etc.

      2. Taxation of profits and gains and relief for deficits

         1. 82. Method of bringing amounts into account.

         2. 83. Non-trading deficit on loan relationships.

      3. Computational provisions etc.

         1. 84. Debits and credits brought into account.

         2. 84A. Exchange gains and losses from loan relationships

         3. 85. Authorised accounting methods.

         4. 86. Application of accounting methods.

         5. 87. Accounting method where parties have a connection.

         6. 87A. Meaning of “control” in section 87

         7. 88. Exemption from section 87 in certain cases.

         8. 88A. Accounting method where rate of interest is reset

         9. 89. Inconsistent application of accounting methods.

         10. 90. Changes of accounting method.

         11. 91. Payments subject to deduction of tax.

      4. Special cases

         1. 92. Convertible securities etc.

         2. 92A. Convertible securities etc: debtor relationships

         3. 93. Relationships linked to the value of chargeable assets.

         4. 93A. Relationships linked to the value of chargeable assets: guaranteed returns

         5. 93B. Loan relationships ceasing to be within section 93

         6. 94. Indexed gilt-edged securities.

         7. 95. Gilt strips.

         8. 96. Special rules for certain other gilts.

         9. 97. Manufactured interest.

         10. 98. Collective investment schemes.

         11. 99. Insurance companies.

      5. Miscellaneous other provisions

         1. 100. Interest on judgments, imputed interest, etc.

         2. 101. Financial instruments.

         3. 102. Discounted securities: income tax provisions.

      6. Supplemental

         1. 103. Interpretation of Chapter.

         2. 104. Minor and consequential amendments.

         3. 105. Commencement and transitional provisions.

   3. Chapter III Provisions relating to the Schedule E charge

      1. 106. Living accommodation provided for employees.

      2. 107. Beneficial loans.

      3. 108. Incidental benefits for holders of certain offices etc.

      4. 109. Charitable donations: payroll deduction schemes.

      5. 110. PAYE settlement agreements.

   4. Chapter IV Share Options, Profit Sharing and Employee Share Ownership

      1. Share options

         1. 111. Amount or value of consideration for option.

         2. 112. Release and replacement.

      2. Savings-related share option schemes

         1. 113. Exercise of rights by employees of non-participating companies.

      3. Other share option schemes

         1. 114. Requirements to be satisfied by approved schemes.

         2. 115. Transitional provisions.

      4. Profit sharing schemes

         1. 116. The release date.

         2. 117. The appropriate percentage.

         3. 118. The appropriate allowance.

      5. Employee share ownership trusts

         1. 119. Removal of requirement for at least one year’s service.

         2. 120. Grant and exercise of share options.

   5. Chapter V Self Assessment, General Management etc.

      1. General

         1. 121. Returns and self assessment.

         2. 122. Notional tax deductions and payments.

         3. 123. Liability of partners.

         4. 124. Retention of original records.

         5. 125. Determination of tax where no return delivered.

         6. 126. PAYE regulations.

         7. 127. Repayment postponed pending completion of enquiries.

         8. 128. Claims for reliefs involving two or more years.

         9. 129. Claims for medical insurance and vocational training relief.

         10. 130. Procedure for giving notices.

         11. 131. Interest on overdue tax.

         12. 132. Overdue tax and excessive payments by the Board.

         13. 133. Claims and enquiries.

         14. 134. Discretions exercisable by the Board etc.

         15. 135. Time limits for claims etc.

         16. 136. Appeals.

      2. Companies

         1. 137. Schedules 13 and 16 to the Taxes Act 1988.

         2. 138. Accounting periods.

         3. 139. Surrenders of advance corporation tax.

      3. Chargeable gains

         1. 140. Transfer of company’s assets to investment trust.

         2. 141. Roll-over relief.

         3. 142. Premiums for leases.

   6. Chapter VI Miscellaneous provisions

      1. Reliefs

         1. 143. Annual payments under certain insurance policies.

         2. 144. Vocational training.

         3. 145. Personal reliefs for non-resident EEA nationals.

         4. 146. Exemptions for charities.

         5. 147. Withdrawal of relief for Class 4 contributions.

         6. 148. Mis-sold personal pensions etc.

         7. 149. Annual payments in residuary cases.

         8. 150. Income tax exemption for periodical payments of damages and compensation for personal injury.

      2. Taxation of benefits

         1. 151. Benefits under pilot schemes.

         2. 152. Jobfinder’s grant.

      3. Investments

         1. 153. Foreign income dividends.

         2. 154. FOTRA securities.

         3. 155. Directions for payment without deduction of tax.

         4. 156. Paying and collecting agents etc.

         5. 157. Stock lending fees.

         6. 158. Transfers on death under the accrued income scheme.

         7. 159. Manufactured payments, repos, etc.

         8. 160. Investments in housing.

         9. 161. Venture capital trusts: control of companies etc.

      4. Insurance policies

         1. 162. Qualifying life insurance policies: certification.

      5. Insurance companies

         1. 163. Life assurance business losses.

         2. 164. Limits on relief for expenses.

         3. 165. Annual payments under insurance policies: deductions.

         4. 166. Equalisation reserves.

         5. 167. Industrial assurance business.

         6. 168. Capital redemption business.

         7. 169. Provisional repayments in connection with pension business.

         8. 170. Time for amending and enquiring into returns.

      6. Friendly societies

         1. 171. Life or endowment business.

      7. Personal pension schemes

         1. 172. Return of contributions on or after death of member.

      8. Participators in close companies

         1. 173. Loans to participators etc.

         2. 174. Attribution of gains to participators in non-resident companies.

      9. Cancellation of tax advantages

         1. 175. Transactions in certain securities.

      10. Chargeable gains: reliefs

          1. 176. Retirement relief: age limits.

          2. 177. Reinvestment relief on disposal of qualifying corporate bond.

      11. Special cases

          1. 178. Sub-contractors in the construction industry.

          2. 179. Roll-over relief in respect of ships.

          3. 180. Scientific research expenditure: oil licences.

          4. 181. Overseas petroleum.

          5. 182. Controlled foreign companies.

6. Part V Inheritance tax

   1. 183. Rate bands.

   2. 184. Business property relief.

   3. 185. Agricultural property relief.

7. Part VI Stamp Duty and Stamp Duty Reserve Tax

   1. Stamp duty

      1. 186. Transfers of securities to members of electronic transfer systems etc.

   2. Stamp duty reserve tax

      1. 187. Territorial scope of the tax.

      2. 188. Removal of the two month period.

      3. 189. Transfers to members of electronic transfer systems etc.

      4. 190. Transfers between associated bodies.

      5. 191. Stock lending and collateral security arrangements.

      6. 192. Repayment or cancellation of tax.

      7. 193. Depositary receipts.

      8. 194. Rates of charge expressed as percentages.

      9. 195. Regulations concerning administration: sub-delegation to the Board.

   3. Clearance services

      1. 196. Election by operator for alternative system of charge.

8. Part VII Miscellaneous and supplemental

   1. Miscellaneous: indirect taxation

      1. 197. Setting of rates of interest.

   2. Miscellaneous: direct taxation

      1. 198. Banks.

      2. 199. Quotation or listing of securities.

      3. 200. Domicile for tax purposes of overseas electors.

      4. 201. Enactment of Inland Revenue concessions.

   3. Miscellaneous: other matters

      1. 202. Gilt stripping.

      2. 203. Modification of the Agriculture Act 1993.

   4. Supplemental

      1. 204. Interpretation.

      2. 205. Repeals.

      3. 206. Short title.