SCHEDULES
SCHEDULE 1 Gaming duty: administration, enforcement etc
Part I The gaming duty register
The Register
1
The Commissioners shall establish and maintain a register of persons involved in the provision of dutiable gaming.
Interpretation
2
1
In this Part of this Schedule—
F55“casino premises licence” has the same meaning as in Part 8 of the Gambling Act 2005 (see section 150(1)(a));
“club gaming permit” has the same meaning as in that Act (see section 271);
“the register” means the gaming duty register;
“registered person” means a person registered on the register; and
“registrable person” has the meaning given by paragraph 3 below.
2
For the purposes of this Part of this Schedule premises in the United Kingdom are “unlicensed premises” unless they are premises in Great Britain—
F56a
in respect of which a casino premises licence is for the time being in force, or
b
in respect of which a club gaming permit is for the time being in force.
3
References in this Part of this Schedule to being a member of a group and to being the representative member of a group shall be construed in accordance with paragraph 8 below.
Registration
3
1
The Commissioners shall, on receipt of a valid application made by—
a
a registrable person, or
b
a person who expects dutiable gaming to take place and to become a registrable person if it does,
add that person to the register.
2
The following provisions of this paragraph have effect for the interpretation of sub-paragraph (1) above.
3
A valid application is one which is made in such form and manner, and is accompanied by such information, as the Commissioners may require.
4
Subject to sub-paragraph (5) below—
a
b
a provider of unlicensed premises is a registrable person if and for so long as dutiable gaming takes place on those premises;
c
a person is a registrable person if and for so long as he is concerned in the organisation or management of dutiable gaming that takes place on unlicensed premises.
5
A body corporate cannot be a registrable person if it—
a
is a member of a group, but
b
is not the representative member of that group.
6
A body corporate which—
a
is the representative member of a group, and
b
is not a registrable person in its own right,
is a registrable person if another body corporate which is a member of that group would be a registrable person but for sub-paragraph (5) above.
Cancellation of registration
4
1
This paragraph has effect for determining when a registered person is to be removed by the Commissioners from the register.
2
Where the Commissioners receive a valid notice from a registered person stating that he has ceased to be a registrable person, he shall be removed from the register.
3
Where the Commissioners receive a valid notice from a registered person stating that he will, from a time specified in the notice, cease to be a registrable person, he shall be removed from the register with effect from that time.
4
Where—
a
a registered person has been added to the register on an application made under paragraph 3(1)(b) above, and
b
the Commissioners receive a valid notice from him stating—
i
that the dutiable gaming which he expected to take place has not taken place, and
ii
that he no longer expects it to take place,
he shall be removed from the register.
5
Where it appears to the Commissioners that a registered person has ceased to be a registrable person, he shall be removed from the register.
6
A registered person shall be removed from the register if—
a
he has been added to the register on an application made under paragraph 3(1)(b) above, and
b
it appears to the Commissioners that the dutiable gaming which he expected to take place has not taken place and can no longer be expected to take place.
7
For the purposes of this paragraph, a valid notice is one which is given in such form and manner, and accompanied by such information, as the Commissioners may require.
Penalties in connection with registration
5
1
There is a contravention of this sub-paragraph by every person who is a responsible person in relation to any premises if—
a
dutiable gaming takes place on those premises on or after 1st October 1997; and
b
at the time when the gaming takes place, no person by whom those premises are notifiable is registered on the register.
2
For the purposes of this paragraph, a person is a responsible person in relation to any premises if—
a
he is a registrable person; and
b
those premises are notifiable by him.
3
Where a person contravenes sub-paragraph (1) above, that contravention shall attract a penalty under section 9 of the M1Finance Act 1994 (civil penalties) and shall also attract daily penalties.
4
References in this paragraph to premises being notifiable are references to them being notifiable for the purposes of paragraph 6 below.
Notification of premises
6
1
This paragraph has effect for determining the premises to be specified in a registered person’s entry on the register.
2
A person who makes an application under paragraph 3(1) above shall, on making that application, notify the Commissioners of all the premises which—
a
are notifiable by him, or
b
in a case where his application is made under paragraph 3(1)(b), will become notifiable by him if the expected gaming takes place;
and the Commissioners shall, on registering him on the register, cause those premises to be specified in his entry on the register.
3
Where any premises not currently notified by a registered person become notifiable by him—
a
he shall notify the Commissioners of those premises, and
b
the Commissioners shall cause those premises to be specified in his entry on the register.
4
Subject to sub-paragraph (5) below, where any premises currently notified by a registered person cease to be notifiable by him—
a
he shall notify the Commissioners of that fact, and
b
they shall cause those premises to be no longer specified in his entry on the register.
5
A registered person is not required to notify the Commissioners as mentioned in sub-paragraph (4) above in a case where—
a
he gives notice to the Commissioners under paragraph 4(2) above; or
b
the premises ceasing to be notifiable by him so cease in accordance with a notification previously given by him to the Commissioners under sub-paragraph (6) below.
6
Where—
a
any premises are currently notified by a registered person, and
b
he notifies the Commissioners of the date on which those premises will cease to be notifiable by him,
the Commissioners shall ensure that those premises cease, with effect from that date, to be specified in his entry on the register.
7
Subject to sub-paragraph (8) below, where—
a
any premises are currently notified by a registered person,
b
that person has been added to the register on an application made under paragraph 3(1)(b) above,
c
any of the dutiable gaming which he expected to take place has not taken place,
d
he no longer expects that gaming to take place, and
e
in consequence of events turning out as mentioned in paragraphs (c) and (d) above, those premises have not and will not become notifiable by him,
he shall notify the Commissioners accordingly and they shall cause those premises to be no longer specified in his entry on the register.
8
A registered person is not required to notify the Commissioners as mentioned in sub-paragraph (7) above in a case where he gives notice to the Commissioners under paragraph 4(4) above.
9
For the purposes of this paragraph premises are currently notified by any person at any time if at that time they are specified in his entry on the register.
10
For the purposes of this paragraph, in the case of a person who is not a body corporate, or who is a body corporate that is not a member of any group—
a
premises in respect of which a F59casino premises licence or club gaming permit is for the time being in force are notifiable by him if and for so long as—
i
he is the holder of the licence F90or permit, and
ii
dutiable gaming takes place on those premises;
b
unlicensed premises of which he is a provider are notifiable by him if and for so long as dutiable gaming takes place on those premises; and
c
any unlicensed premises of which he is not a provider are notifiable by him if and for so long as—
i
dutiable gaming takes place on those premises, and
ii
he is concerned in the organisation or management of that gaming.
11
For the purposes of this paragraph, in the case of a body corporate which is the representative member of a group—
a
premises in respect of which a F60casino premises licence or club gaming permit is for the time being in force are notifiable by the representative member if and for so long as—
i
it, or another body corporate which is a member of that group, is the holder of the licence F89or permit, and
ii
dutiable gaming takes place on those premises;
b
unlicensed premises of which the representative member or any such other body corporate is a provider are notifiable by the representative member if and for so long as dutiable gaming takes place on those premises; and
c
unlicensed premises which are not notifiable by the representative member by virtue of paragraph (b) above are notifiable by it if and for so long as—
i
dutiable gaming takes place on those premises, and
ii
it or any such other body corporate is concerned in the organisation or management of that gaming.
Penalties in connection with notification
7
1
Where, in contravention of paragraph 6(2) above, a person fails to notify the Commissioners of any premises, that failure shall attract a penalty under section 9 of the M2Finance Act 1994 (civil penalties).
2
Where—
a
by virtue of paragraph 6(3), (4) or (7) above, a person at any time becomes subject to a requirement to notify the Commissioners of any premises or fact, and
b
he fails to comply with that requirement before the end of the period of seven days beginning with the day on which that time falls,
that failure shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties) and shall also attract daily penalties for every day after the end of that period on which the failure to notify continues.
Groups
8
1
Two or more bodies corporate are eligible to be treated as members of a group for the purposes of this Part of this Schedule if each is resident or has an established place of business in the United Kingdom and—
a
one of them controls each of the others;
b
one person (whether a body corporate or an individual) controls all of them; or
c
two or more individuals carrying on a business in partnership control all of them.
2
Subject to sub-paragraph (3) below, where an application for the purpose is made to the Commissioners with respect to two or more bodies corporate eligible to be treated as members of a group, then, from such date as may be specified in the application—
a
they shall be so treated for the purposes of this Part of this Schedule; and
b
such one of them as may be specified in the application shall be the representative member for those purposes.
3
The Commissioners may refuse an application under sub-paragraph (2) above if, and only if, it appears to them necessary to do so for the protection of the revenue from gaming duty.
4
Where any bodies corporate are treated as members of a group for the purposes of this Part of this Schedule and an application for the purpose is made to the Commissioners, then, from such time as may be specified in the application—
a
a further body eligible to be so treated shall be included among the bodies so treated; or
b
a body corporate shall be excluded from the bodies so treated; or
c
another member of the group shall be substituted as the representative member; or
d
the bodies corporate shall no longer be treated as members of a group.
5
If it appears to the Commissioners necessary to do so for the protection of the revenue from gaming duty, they may—
a
refuse any application made for the purpose mentioned in paragraph (a) or (c) of sub-paragraph (4) above; or
b
refuse any application made for the purpose mentioned in paragraph (b) or (d) of that sub-paragraph in a case that does not appear to them to fall within sub-paragraph (6)(a) and (b) below.
6
Where—
a
a body corporate is treated as a member of a group for the purposes of this Part of this Schedule by virtue of being controlled by any person, and
b
it appears to the Commissioners that it has ceased to be so controlled,
they shall, by notice given to that person, terminate that treatment from such date as may be specified in the notice.
7
Where—
a
a notice under sub-paragraph (6) above is given to a body corporate which is the representative member of a group,
b
there are two or more other bodies corporate who will continue to be treated as members of the group after the time when that notice takes effect, and
c
none of those bodies corporate is substituted from that time, or from before that time, as the representative member of the group in pursuance of an application under sub-paragraph (4)(c) above,
the Commissioners shall, by notice given to such one of the bodies corporate mentioned in paragraph (b) above as they think fit, substitute that body corporate as the representative member as from that time.
8
Where a notice under sub-paragraph (6) above is given to one member of a group of which there is only one other member, then (subject to any further application under this paragraph) the other member shall also cease, from the time specified in the notice, to be treated for the purposes of this Part of this Schedule as a member of the group.
9
An application under this paragraph with respect to any bodies corporate—
a
must be made by one of those bodies or by the person controlling them; and
b
must be made not less than 90 days before the date from which it is to take effect, or at such later time as the Commissioners may allow.
10
For the purposes of this paragraph a body corporate shall be taken to control another body corporate if—
a
it is empowered by statute to control that body’s activities; or
b
and an individual or individuals shall be taken to control a body corporate if (were he or they a company) he or they would be that body’s holding company within the meaning of that Act.
11
Part II Other provisions
Accounting periods
9
1
Where, in the case of any premises, the Commissioners and every relevant person so agree, the provisions of sections 10 to 15 of this Act and this Schedule shall have effect in relation to those premises as if accounting periods for the purposes of those provisions were periods of six months beginning on such dates other than 1st October and 1st April as may be specified in the agreement.
2
For the purposes of sub-paragraph (1) above, a person is a relevant person in relation to any premises if—
a
he is registered on the gaming duty register, and
b
the entry relating to him on the register specifies those premises.
3
The Commissioners shall not enter into an agreement under this paragraph for a change in the date on which an accounting period begins in relation to any premises unless they are satisfied that appropriate transitional provision for the protection of the revenue is contained in the agreement.
4
The provision which, for the purposes of sub-paragraph (3) above, may be contained in any agreement under this paragraph shall include any such provision as may be contained in regulations under section 11(5) of this Act.
5
Sections F6613A to 16 of the Finance Act 1994 (review and appeals) shall have effect in relation to any refusal of the Commissioners to enter into an agreement under this paragraph, or to enter into such an agreement on particular terms, as if that refusal were a decision of a description F67falling within section 13(A)(2)(j) of that Act.
Directions as to the making of returns
10
1
The Commissioners may give directions as to the making of returns in connection with gaming duty by—
a
persons registered on the gaming duty register;
b
persons liable to pay any gaming duty.
2
Directions under this paragraph may, in particular, make provision as to—
a
when any returns are to be made;
b
the persons by whom any returns are to be made;
c
the form in which any returns are to be made;
d
the information to be given in any returns;
e
the declarations to be contained in returns and the manner in which returns are to be authenticated;
f
returns being treated as not made until received by the Commissioners;
g
the places to which returns are to be made.
3
Where a person fails to comply with any provision of a direction given under this paragraph, that failure shall attract a penalty under section 9 of the M4Finance Act 1994 (civil penalties) and shall also attract daily penalties.
Regulations
11
1
The Commissioners may make regulations providing for any matter for which provision appears to them to be necessary or expedient for the administration or enforcement of gaming duty, or for the protection of the revenue from that duty.
2
Regulations under this paragraph may, in particular, include provision as to the giving and operation of directions under section 11(6) of this Act.
3
Where any person contravenes or fails to comply with any of the provisions of any regulations under this paragraph, his contravention or failure to comply shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties).
Offences
12
1
Any person who obstructs any officer in the exercise of his functions in relation to gaming duty shall be guilty of an offence and liable, on summary conviction, to a penalty of level 5 on the standard scale.
2
Any person who—
a
in connection with gaming duty, makes any statement which he knows to be false in a material particular or recklessly makes any statement which is false in a material particular,
b
in that connection, with intent to deceive, produces or makes use of any book, account, record, return or other document which is false in a material particular, or
c
is knowingly concerned in, or in the taking of steps with a view to, the fraudulent evasion (by him or any other person) of any gaming duty or of any obligation to make a payment on account of gaming duty,
shall be guilty of an offence.
3
A person guilty of an offence under sub-paragraph (2) above shall be liable—
a
on summary conviction, to a penalty of—
i
the statutory maximum, or
ii
if greater, three times the duty or other amount which is unpaid or the payment of which is sought to be avoided,
or to imprisonment for a term not exceeding six months, or to both;
b
on conviction on indictment, to a penalty of any amount, or to imprisonment for a term not exceeding—
i
two years in the case of an offence by virtue of sub-paragraph (2)(a) above, and
ii
seven years in any other case,
or to both.
4
Section 27 of the M5Betting and Gaming Duties Act 1981 (offences by bodies corporate) shall have effect for the purposes of any offence under this paragraph as it has effect for the purposes of the offences mentioned in that section.
5
Where a person has committed an offence under sub-paragraph (2) above, all designated items related to the relevant gaming shall be liable to forfeiture if—
a
at the time the offence was committed that person was not registered on the gaming duty register; and
b
the relevant gaming did not take place on premises which, at the time the offence was committed, were specified in any person’s entry on that register.
6
In sub-paragraph (5) above, “the relevant gaming” means—
a
in relation to an offence under sub-paragraph (2)(a) or (b) above, any gaming to which the false statement or (as the case may be) the false document related; and
b
in relation to an offence under sub-paragraph (2)(c) above, any gaming on the premises the gaming duty on which was, or was sought to be, fraudulently evaded.
7
For the purposes of sub-paragraph (5) above, the designated items related to any gaming are—
a
any furniture, machines and other articles and equipment which—
i
are on the premises where the gaming takes place; and
ii
have been or are being, or are capable of being, used for or in connection with gaming;
and
b
any cash and gaming chips in the custody or under the control of any person who—
i
is a provider of the premises on which the gaming takes place, or
ii
is in any way concerned with the organisation or management of the gaming.
8
For the purposes of sub-paragraph (7)(b) above the cash and gaming chips taken to be under the control of a person who is the provider of any premises or is concerned with the organisation or management of gaming on any premises shall include all cash and gaming chips in play or left on a gaming table on those premises.
Distress and poinding
13
F11
Sections 28 and 29 of the Betting and Gaming Duties Act 1981 (recovery of duty) shall have effect as follows so as to apply in relation to gaming duty as they applied in relation to the duty on gaming licences—
a
in subsection (1) of each section, for “or 14 above or of Schedule 2 to this Act” there shall be substituted “
above or sections 10 to 15 of, and Schedule 1 to, the Finance Act 1997
”
; and
b
in subsections (2) and (3) of each section, for the words “the duty on a gaming licence” there shall be substituted—
i
in the first place where they occur in subsection (2), the words “
the gaming duty
”
; and
ii
in the other places where they occur, the words “
gaming duty
”
.
2
Sub-paragraph (1) above shall cease to have effect on such day as the Commissioners may by order made by statutory instrument appoint, and different days may be appointed under this sub-paragraph for different purposes.
Disclosure of information
14
1
No obligation as to secrecy or other restriction on the disclosure of information imposed by statute or otherwise shall prevent—
a
b
2
Information obtained by virtue of a disclosure authorised by this paragraph shall not be disclosed except—
a
b
for the purposes of any proceedings connected with a matter in relation to which the Commissioners or F52that Commission carry out the functions mentioned in sub-paragraph (1) above.
Evidence by certificate
15
Section 29A of the M6Betting and Gaming Duties Act 1981 (evidence by certificate) shall apply for the purposes of sections 10 to 15 of this Act and this Schedule as it applies for the purposes of that Act.
Protection of officers
16
Section 31 of the Betting and Gaming Duties Act 1981 (protection of officers) shall apply for the purposes of gaming duty as it applies for the purposes of general betting duty.
SCHEDULE 2 Gaming duty: consequential and incidental amendments
Part I Amendments of the Customs and Excise Management Act 1979
Introductory
1
The M7Customs and Excise Management Act 1979 shall be amended in accordance with the provisions of this Part of this Schedule.
Meaning of “revenue trade provisions” and “revenue trader”
2
1
This paragraph amends section 1(1) (interpretation).
2
In the definition of “the revenue trade provisions of the customs and excise Acts”, after paragraph (d) there shall be inserted the following paragraph—
- e
the provisions of sections 10 to 15 of, and Schedule 1 to, the Finance Act 1997;
3
In paragraph (a) of the definition of “revenue trader”, after sub-paragraph (ia) there shall be inserted the following sub-paragraphs—
- ib
being (within the meaning of sections 10 to 15 of the Finance Act 1997) the provider of any premises for gaming;
- ic
the organisation, management or promotion of any gaming (within the meaning of the M8Gaming Act 1968 or the M9Betting, Gaming, Lotteries and Amusements (Northern Ireland) Order 1985); or
4
In sub-paragraph (ii) of that paragraph, for “or (ia)” there shall be substituted “
, (ia), (ib) or (ic)
”
.
Amendments of Part IXA
3
In section 118B (furnishing of information etc. by revenue traders)—
a
in subsection (1)(a), after sub-paragraph (ii) there shall be inserted
or
iii
any transaction or activity effected or taking place in the course or furtherance of a business,
b
in subsection (1)(b), at the end there shall be inserted “
or to the transaction or activity
”
; and
c
in subsection (3), after “any business” there shall be inserted “
, or to any transaction or activity effected or taking place in the course or furtherance of any business,
”
.
4
1
This paragraph amends section 118C (powers of entry and search).
2
After subsection (2) there shall be inserted the following subsections—
2A
Where an officer has reasonable cause to believe that any premises are premises where gaming to which section 10 of the Finance Act 1997 (gaming duty) applies is taking place, has taken place or is about to take place, he may at any reasonable time enter and inspect those premises and inspect any relevant materials found on them.
2B
In subsection (2A) above “relevant materials” means—
a
any accounts, records or other documents found on the premises in the custody or control of any person who is engaging, or whom the officer reasonably suspects of engaging—
i
in any such gaming, or
ii
in any activity by reason of which he is or may become liable to gaming duty,
and
b
any equipment which is being, or which the officer reasonably suspects of having been or of being intended to be, used on the premises for or in connection with any such gaming.
F613
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F614
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F615
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Part II Other amendments
Licences under the Gaming Act 1968
5
1
Schedule 2 to the M10Gaming Act 1968 (grant etc. of licences) shall be amended in accordance with the provisions of this paragraph.
2
In paragraph 20(1) (grounds for refusing to grant or renew a licence), after paragraph (f) there shall be inserted the following paragraph—
g
that any gaming duty charged on the premises remains unpaid.
3
In paragraph 48(1) (cancellation of licence on conviction for second or subsequent offence), after “the enactments consolidated by that Act)” there shall be inserted “
or of an offence under paragraph 12 of Schedule 1 to the Finance Act 1997
”
.
4
In paragraph 60(c) (transfer of licence may be refused if duty unpaid), after “bingo duty” there shall be inserted “
or gaming duty
”
.
Preferential debts on insolvency
F416
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Assessments to duty
7
In section 12(2)(c) of the M11Finance Act 1994 (duty may be assessed upon the occurrence of certain defaults in connection with betting duties and bingo duty), after “under Schedule 1 or 3 to the M12Betting and Gaming Duties Act 1981” there shall be inserted “
or Schedule 1 to the Finance Act 1997
”
.
SCHEDULE 3 Vehicle excise duty: exempt vehicles
Interpretation
1
In this Schedule “the 1994 Act” means the M13Vehicle Excise and Registration Act 1994.
Registration of vehicle on issue of nil licence
2
In section 21 of the 1994 Act (registration of vehicles), for subsection (1) there shall be substituted the following subsection—
1
Subject to subsection (3), on the issue by the Secretary of State for a vehicle which is not registered under this section of either—
a
a vehicle licence, or
b
a nil licence,
the Secretary of State shall register the vehicle in such manner as he thinks fit without any further application by the person to whom the licence is issued.
Return of nil licence
3
In section 22 of the 1994 Act (registration regulations), after subsection (3) there shall be inserted the following subsection—
4
Regulations made by the Secretary of State may make provision for the return of any nil licence to the Secretary of State in such circumstances as may be prescribed by the regulations.
Offence of not exhibiting nil licence
4
1
In section 33 of the 1994 Act (not exhibiting licence), after subsection (1) there shall be inserted the following subsection—
1A
A person is guilty of an offence if—
a
he uses, or keeps, on a public road an exempt vehicle,
b
that vehicle is one in respect of which regulations under this Act require a nil licence to be in force, and
c
there is not fixed to and exhibited on the vehicle in the manner prescribed by regulations made by the Secretary of State a nil licence for that vehicle which is for the time being in force.
2
In subsection (2) of that section, after “(1)” there shall be inserted “
or (1A)
”
.
3
For subsection (3) of that section there shall be substituted the following subsection—
3
Subsections (1) and (1A)—
a
have effect subject to the provisions of regulations made by the Secretary of State, and
b
are without prejudice to sections 29 and 43A.
4
In subsection (4) of that section, for “in respect of which excise duty is chargeable” there shall be substituted “
which is kept or used on a public road
”
.
5
After that subsection there shall be inserted the following subsection—
5
The reference to a licence in subsection (4) includes a reference to a nil licence.
Offence of failing to have nil licence for exempt vehicle
5
Immediately before section 44 of the 1994 Act there shall be inserted the following section—
43A Failure to have nil licence for exempt vehicle.
1
A person is guilty of an offence if—
a
he uses, or keeps, on a public road an exempt vehicle,
b
that vehicle is one in respect of which regulations under this Act require a nil licence to be in force, and
c
a nil licence is not for the time being in force in respect of the vehicle.
2
A person guilty of an offence under subsection (1) is liable on summary conviction to a fine not exceeding level 2 on the standard scale.
3
Subsection (1) has effect subject to the provisions of regulations made by the Secretary of State.
4
The Secretary of State may, if he thinks fit, compound any proceedings for an offence under this section.
Offence of forging or fraudulently using etc. nil licence
6
In subsection (2) of section 44 of the 1994 Act (forgery and fraud), for paragraph (c) there shall be substituted the following paragraph—
c
a nil licence,
Supplemental provisions
7
1
In section 46 of the 1994 Act (duty to give information)—
a
in subsection (1), for “or 37” there shall be substituted “
, 37 or 43A
”
;
b
in subsections (2) and (3), after “section 29” there shall be inserted “
or 43A
”
.
2
In subsection (1) of section 51 of that Act (admissions), for “or 34” there shall be substituted “
, 34 or 43A
”
.
3
In subsection (1) of section 62 of that Act (other definitions), after the definition of “motor trader” there shall be inserted the following definition—
“nil licence” means a document which is in the form of a vehicle licence and is issued by the Secretary of State in pursuance of regulations under this Act in respect of a vehicle which is an exempt vehicle,
4
In paragraph 20 of Schedule 2 to that Act (exempt vehicles), sub-paragraph (4) shall cease to have effect.
Further amendments
8
1
In Schedule 3 to the M14Road Traffic Offenders Act 1988 (fixed penalty offences), in column 2 of the entry relating to section 33 of the 1994 Act, for “licence” there shall be substituted “
vehicle licence, trade licence or nil licence
”
.
2
In Article 198 of the M15Road Traffic (Northern Ireland) Order 1981 (offences punishable without prosecution), in paragraph (1)(f) for “licence” there shall be substituted “
vehicle licence, trade licence or nil licence
”
.
Commencement
P19
This Schedule shall come into force on such day as the Secretary of State may by order made by statutory instrument appoint; and different days may be appointed under this paragraph for different purposes.
SCHEDULE 4 Insurance premium tax: the higher rate
Schedule to be inserted into the Finance Act 1994
SCHEDULE 6A Premiums liable to tax at the higher rate
Part I Interpretation
1
1
In this Schedule—
“insurance-related service” means any service which is related to, or connected with, insurance;
“supply” includes all forms of supply; and “supplier” shall be construed accordingly.
2
For the purposes of this Schedule, any question whether a person is connected with another shall be determined in accordance with section 839 of the Taxes Act 1988.
Part II Descriptions of premium
Insurance relating to motor cars or motor cycles
2
1
A premium under a taxable insurance contract relating to a motor car or motor cycle falls within this paragraph if—
a
the contract is arranged through a person falling within sub-paragraph (2) below, or
b
the insurer under the contract is a person falling within that sub-paragraph,
unless the insurance is provided to the insured free of charge.
2
A person falls within this sub-paragraph if—
a
he is a supplier of motor cars or motor cycles;
b
he is connected with a supplier of motor cars or motor cycles; or
c
he pays—
i
the whole or any part of the premium received under the taxable insurance contract, or
ii
a fee connected with the arranging of that contract,
to a supplier of motor cars or motor cycles or to a person who is connected with a supplier of motor cars or motor cycles.
3
Where a taxable insurance contract relating to a motor car or motor cycle is arranged through a person who is connected with a supplier of motor cars or motor cycles, the premium does not fall within this paragraph by virtue only of sub-paragraph (2)(b) above except to the extent that the premium is attributable to cover for a risk which relates to a motor car or motor cycle supplied by a supplier of motor cars or motor cycles with whom that person is connected.
4
Where the insurer under a taxable insurance contract relating to a motor car or motor cycle is connected with a supplier of motor cars or motor cycles, the premium does not fall within this paragraph by virtue only of sub-paragraph (2)(b) above except to the extent that the premium is attributable to cover for a risk which relates to a motor car or motor cycle supplied by a supplier of motor cars or motor cycles with whom the insurer is connected.
5
For the purposes of this paragraph, the cases where insurance is provided to the insured free of charge are those cases where no charge (whether by way of premium or otherwise) is made—
a
in respect of the taxable insurance contract, or
b
at or about the time when the taxable insurance contract is made and in connection with that contract, in respect of any insurance-related service,
by any person falling within sub-paragraph (2) above to any person who is or becomes the insured (or one of the insured) under the contract or to any person who acts, otherwise than in the course of a business, for or on behalf of such a person.
6
In this paragraph—
“motor car” and “motor cycle” have the meaning given—
“supplier” does not include an insurer who supplies a car or motor cycle as a means of discharging liabilities arising by reason of a claim under an insurance contract.
Insurance relating to domestic appliances etc.
3
1
A premium under a taxable insurance contract relating to relevant goods falls within this paragraph if—
a
the contract is arranged through a person falling within sub-paragraph (2) below, or
b
the insurer under the contract is a person falling within that sub-paragraph,
unless the insurance is provided to the insured free of charge.
2
A person falls within this sub-paragraph if—
a
he is a supplier of relevant goods;
b
he is connected with a supplier of relevant goods; or
c
he pays—
i
the whole or any part of the premium received under the taxable insurance contract, or
ii
a fee connected with the arranging of that contract,
to a supplier of relevant goods or to a person who is connected with a supplier of relevant goods.
3
Where a taxable insurance contract relating to relevant goods is arranged through a person who is connected with a supplier of relevant goods, the premium does not fall within this paragraph by virtue only of sub-paragraph (2)(b) above except to the extent that the premium is attributable to cover for a risk which relates to relevant goods supplied by a supplier of relevant goods with whom that person is connected.
4
Where the insurer under a taxable insurance contract relating to relevant goods is connected with a supplier of relevant goods, the premium does not fall within this paragraph by virtue only of sub-paragraph (2)(b) above except to the extent that the premium is attributable to cover for a risk which relates to relevant goods supplied by a supplier of relevant goods with whom the insurer is connected.
5
For the purposes of this paragraph, the cases where insurance is provided to the insured free of charge are those cases where no charge (whether by way of premium or otherwise) is made—
a
in respect of the taxable insurance contract, or
b
at or about the time when the taxable insurance contract is made and in connection with that contract, in respect of any insurance-related service,
by any person falling within sub-paragraph (2) above to any person who is or becomes the insured (or one of the insured) under the contract or to any person who acts, otherwise than in the course of a business, for or on behalf of such a person.
6
In this paragraph—
“relevant goods” means any electrical or mechanical appliance of a kind—
- a
which is ordinarily used in or about the home; or
- b
which is ordinarily owned by private individuals and used by them for the purposes of leisure, amusement or entertainment;
“supplier” does not include an insurer who supplies relevant goods as a means of discharging liabilities arising by reason of a claim under an insurance contract.
7
In sub-paragraph (6) above—
“appliance” includes any device, equipment or apparatus;
“the home” includes any private garden and any private garage or private workshop appurtenant to a dwelling.
Travel insurance
4
1
A premium under a taxable insurance contract relating to travel risks falls within this paragraph if—
a
the contract is arranged through a person falling within sub-paragraph (2) below, or
b
the insurer under the contract is a person falling within that sub-paragraph,
unless the insurance is provided to the insured free of charge.
2
A person falls within this sub-paragraph if—
a
he is a tour operator or travel agent;
b
he is connected with a tour operator or travel agent; or
c
he pays—
i
the whole or any part of the premium received under the contract, or
ii
a fee connected with the arranging of the contract,
to a tour operator or travel agent or to a person who is connected with a tour operator or travel agent.
3
Where a taxable insurance contract relating to travel risks is arranged through a person who is connected with a tour operator or travel agent, the premium does not fall within this paragraph by virtue only of sub-paragraph (2)(b) above except to the extent that the premium is attributable to cover for a risk which relates to services supplied by a tour operator or travel agent with whom that person is connected.
4
Where the insurer under a taxable insurance contract relating to travel risks is connected with a tour operator or travel agent, the premium does not fall within this paragraph by virtue only of sub-paragraph (2)(b) above except to the extent that the premium is attributable to cover for a risk which relates to services supplied by a tour operator or travel agent with whom the insurer is connected.
5
For the purposes of sub-paragraphs (3) and (4) above, a travel agent shall be treated as supplying any services whose provision he secures or arranges.
6
For the purposes of this paragraph, the cases where insurance is provided to the insured free of charge are those cases where no charge (whether by way of premium or otherwise) is made—
a
in respect of the taxable insurance contract, or
b
at or about the time when the taxable insurance contract is made and in connection with that contract, in respect of any insurance-related service,
by any person falling within sub-paragraph (2) above to any person who is or becomes the insured (or one of the insured) under the contract or to any person who acts, otherwise than in the course of a business, for or on behalf of such a person.
7
In this paragraph—
“tour operator” includes any person who carries on a business which consists of or includes the provision, or the securing of the provision, of—
- a
services for the transport of travellers; or
- b
accommodation for travellers;
“travel agent” includes any person who carries on a business which consists of or includes the making of arrangements, whether directly or indirectly, with a tour operator for the transport or accommodation of travellers;
“travel risks” means—
- a
risks associated with, or related to, travel or intended travel; or
- b
risks to which a person travelling may be exposed at any place at which he may be in the course of his travel.
SCHEDULE 5 Indirect taxes: overpayments etc
Part I Unjust enrichment
Application of Part I
1
1
This Part of this Schedule has effect for the purposes of the following provisions (which make it a defence to a claim for repayment that the repayment would unjustly enrich the claimant), namely—
a
section 137A(3) of the M18Customs and Excise Management Act 1979 (excise duties);
b
paragraph 8(3) of Schedule 7 to the M19Finance Act 1994 (insurance premium tax); and
c
paragraph 14(3) of Schedule 5 to the M20Finance Act 1996 (landfill tax).
2
Those provisions are referred to in this Part of this Schedule as unjust enrichment provisions.
3
In this Part of this Schedule—
“the Commissioners” means the Commissioners of Customs and Excise;
“relevant repayment provision” means—
- a
section 137A of the Customs and Excise Management Act 1979 (recovery of overpaid excise duty);
- b
paragraph 8 of Schedule 7 to the Finance Act 1994 (recovery of overpaid insurance premium tax); or
- c
paragraph 14 of Schedule 5 to the Finance Act 1996 (recovery of overpaid landfill tax);
- a
“relevant tax” means any duty of excise, insurance premium tax or landfill tax; and
“subordinate legislation” has the same meaning as in the M21Interpretation Act 1978.
Disregard of business losses
2
1
This paragraph applies where—
a
there is an amount paid by way of relevant tax which (apart from an unjust enrichment provision) would fall to be repaid under a relevant repayment provision to any person (“the taxpayer”), and
b
the whole or a part of the cost of the payment of that amount to the Commissioners has, for practical purposes, been borne by a person other than the taxpayer.
2
Where, in a case to which this paragraph applies, loss or damage has been or may be incurred by the taxpayer as a result of mistaken assumptions made in his case about the operation of any provisions relating to a relevant tax, that loss or damage shall be disregarded, except to the extent of the quantified amount, in the making of any determination—
a
of whether or to what extent the repayment of an amount to the taxpayer would enrich him; or
b
of whether or to what extent any enrichment of the taxpayer would be unjust.
3
In sub-paragraph (2) above “the quantified amount” means the amount (if any) which is shown by the taxpayer to constitute the amount that would appropriately compensate him for loss or damage shown by him to have resulted, for any business carried on by him, from the making of the mistaken assumptions.
4
The reference in sub-paragraph (2) above to provisions relating to a relevant tax is a reference to any provisions of—
a
any enactment, subordinate legislation or F91EU legislation (whether or not still in force) which relates to that tax or to any matter connected with it; or
b
any notice published by the Commissioners under or for the purposes of any such enactment or subordinate legislation.
5
This paragraph has effect for the purposes of making any repayment on or after the day on which this Act is passed, even if the claim for that repayment was made before that day.
Reimbursement arrangements
3
1
The Commissioners may by regulations make provision for reimbursement arrangements made by any person to be disregarded for the purposes of any or all of the unjust enrichment provisions except where the arrangements—
a
contain such provision as may be required by the regulations; and
b
are supported by such undertakings to comply with the provisions of the arrangements as may be required by the regulations to be given to the Commissioners.
2
In this paragraph “reimbursement arrangements” means any arrangements for the purposes of a claim under a relevant repayment provision which—
a
are made by any person for the purpose of securing that he is not unjustly enriched by the repayment of any amount in pursuance of the claim; and
b
provide for the reimbursement of persons who have for practical purposes borne the whole or any part of the cost of the original payment of that amount to the Commissioners.
3
Without prejudice to the generality of sub-paragraph (1) above, the provision that may be required by regulations under this paragraph to be contained in reimbursement arrangements includes—
a
provision requiring a reimbursement for which the arrangements provide to be made within such period after the repayment to which it relates as may be specified in the regulations;
b
provision for the repayment of amounts to the Commissioners where those amounts are not reimbursed in accordance with the arrangements;
c
provision requiring interest paid by the Commissioners on any amount repaid by them to be treated in the same way as that amount for the purposes of any requirement under the arrangements to make reimbursement or to repay the Commissioners;
d
provision requiring such records relating to the carrying out of the arrangements as may be described in the regulations to be kept and produced to the Commissioners, or to an officer of theirs.
4
Regulations under this paragraph may impose obligations on such persons as may be specified in the regulations—
a
to make the repayments to the Commissioners that they are required to make in pursuance of any provisions contained in any reimbursement arrangements by virtue of sub-paragraph (3)(b) or (c) above;
b
to comply with any requirements contained in any such arrangements by virtue of sub-paragraph (3)(d) above.
5
Regulations under this paragraph may make provision for the form and manner in which, and the times at which, undertakings are to be given to the Commissioners in accordance with the regulations; and any such provision may allow for those matters to be determined by the Commissioners in accordance with the regulations.
6
Regulations under this paragraph may—
a
contain any such incidental, supplementary, consequential or transitional provision as appears to the Commissioners to be necessary or expedient; and
b
make different provision for different circumstances.
7
Regulations under this paragraph may have effect (irrespective of when the claim for repayment was made) for the purposes of the making of any repayment by the Commissioners after the time when the regulations are made; and, accordingly, such regulations may apply to arrangements made before that time.
8
Regulations under this paragraph shall be made by statutory instrument subject to annulment in pursuance of a resolution of the House of Commons.
Contravention of requirement to repay Commissioners
4
1
Where any obligation is imposed by regulations made by virtue of paragraph 3(4) above, a contravention or failure to comply with that obligation shall, to the extent that it relates to amounts repaid under section 137A of the M22Customs and Excise Management Act 1979, attract a penalty under section 9 of the Finance Act 1994 (penalties in connection with excise duties).
2
For the purposes of Schedule 7 to the M23Finance Act 1994 (insurance premium tax), a contravention or failure to comply with an obligation imposed by regulations made by virtue of paragraph 3(4) above shall be deemed, to the extent that it relates to amounts repaid under paragraph 8 of that Schedule (recovery of overpaid insurance premium tax), to be a failure to comply with a requirement falling within paragraph 17(1)(c) of that Schedule (breach of regulations).
3
Paragraph 23 of Schedule 5 to the M24Finance Act 1996 (power to provide for penalty) shall have effect as if an obligation imposed by regulations made by virtue of paragraph 3(4) above were, to the extent that it relates to amounts repaid under paragraph 14 of that Schedule (recovery of overpaid landfill tax), a requirement imposed by regulations under Part III of that Act; and the provisions of that Schedule in relation to penalties under Part V of that Schedule shall have effect accordingly.
Part II Time limits
Repayments
5
1
For subsection (4) of section 137A of the M25Customs and Excise Management Act 1979 (time limit on recovery of overpaid excise duty) there shall be substituted the following subsection—
4
The Commissioners shall not be liable, on a claim made under this section, to repay any amount paid to them more than three years before the making of the claim.
2
For sub-paragraphs (4) and (5) of paragraph 8 of Schedule 7 to the M26Finance Act 1994 (time limit on recovery of overpaid insurance premium tax) there shall be substituted the following sub-paragraph—
4
The Commissioners shall not be liable, on a claim made under this paragraph, to repay any amount paid to them more than three years before the making of the claim.
3
For sub-paragraph (4) of paragraph 14 of Schedule 5 to the M27Finance Act 1996 (time limit on recovery of overpaid landfill tax) there shall be substituted the following sub-paragraph—
4
The Commissioners shall not be liable, on a claim made under this paragraph, to repay any amount paid to them more than three years before the making of the claim.
Assessments
6
1
In each of the enactments specified in sub-paragraph (2) below (which provide for the time limits applying to the making of assessments), for the words “six years”, wherever they occur, there shall be substituted the words “
three years
”
.
2
Those enactments are—
a
section 12(4)(a) and (5) of the Finance Act 1994 (excise duties);
F78b
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F78c
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Part III Interest
Interest on overpaid air passenger duty
7
1
Paragraph 9 of Schedule 6 to the Finance Act 1994 (interest payable by the Commissioners in connection with air passenger duty) shall have effect, and be deemed always to have had effect, with the amendments for which this paragraph provides.
2
After sub-paragraph (1) there shall be inserted the following sub-paragraph—
1A
In sub-paragraph (1) above the reference to an amount which the Commissioners are liable to repay in consequence of the making of a payment that was not due is a reference to only so much of that amount as is the subject of a claim that the Commissioners are required to satisfy or have satisfied.
3
For sub-paragraph (6) (claims for interest to be made within six years of discovery of error) there shall be substituted the following sub-paragraph—
6
A claim under this paragraph shall not be made more than three years after the end of the applicable period to which it relates.
4
For sub-paragraph (7) there shall be substituted the following sub-paragraph—
7
Any reference in this paragraph to the authorisation by the Commissioners of the payment of any amount includes a reference to the discharge by way of set-off of the Commissioners’ liability to pay that amount.
8
1
In sub-paragraph (2) of that paragraph (applicable period), the words after paragraph (b) shall be omitted; and the following sub-paragraphs shall be substituted for sub-paragraphs (3) and (4)—
2A
In determining the applicable period for the purposes of this paragraph there shall be left out of account any period by which the Commissioners’ authorisation of the payment of interest is delayed by the conduct of the person who claims the interest.
2B
The reference in sub-paragraph (2A) above to a period by which the Commissioners’ authorisation of the payment of interest is delayed by the conduct of the person who claims it includes, in particular, any period which is referable to—
a
any unreasonable delay in the making of the claim for interest or in the making of any claim for the repayment of the amount on which interest is claimed;
b
any failure by that person or a person acting on his behalf or under his influence to provide the Commissioners—
i
at or before the time of the making of a claim, or
ii
subsequently in response to a request for information by the Commissioners,
with all the information required by them to enable the existence and amount of the claimant’s entitlement to a repayment, and to interest on the amount of that repayment, to be determined; and
c
the making, as part of or in association with either—
i
the claim for interest, or
ii
any claim for the payment or repayment of the amount on which interest is claimed,
of a claim to anything to which the claimant was not entitled.
3
In determining for the purposes of sub-paragraph (2B) above whether any period of delay is referable to a failure by any person to provide information in response to a request by the Commissioners, there shall be taken to be so referable, except so far as may be prescribed, any period which—
a
begins with the date on which the Commissioners require that person to provide information which they reasonably consider relevant to the matter to be determined; and
b
ends with the earliest date on which it would be reasonable for the Commissioners to conclude—
i
that they have received a complete answer to their request for information;
ii
that they have received all that they need in answer to that request; or
iii
that it is unnecessary for them to be provided with any information in answer to that request.
2
Sub-paragraph (1) above shall have effect for the purposes of determining whether any period beginning on or after the day on which this Act is passed is left out of account.
Interest on overpaid landfill tax
11
1
Paragraph 29 of Schedule 5 to the M29Finance Act 1996 (interest payable by the Commissioners in connection with landfill tax) shall have effect, and be deemed always to have had effect, with the amendments for which this paragraph provides.
2
After sub-paragraph (1) there shall be inserted the following sub-paragraph—
1A
In sub-paragraph (1) above—
a
the reference in paragraph (a) to an amount which the Commissioners are liable to repay in consequence of the making of a payment that was not due is a reference to only so much of that amount as is the subject of a claim that the Commissioners are required to satisfy or have satisfied; and
b
the amounts referred to in paragraph (c) do not include any amount payable under this paragraph.
3
For sub-paragraph (8) (claims for interest to be made within six years of discovery of error) there shall be substituted the following sub-paragraph—
8
A claim under this paragraph shall not be made more than three years after the end of the applicable period to which it relates.
4
For sub-paragraph (9) there shall be substituted the following sub-paragraph—
9
References in this paragraph—
a
to receiving payment of any amount from the Commissioners, or
b
to the authorisation by the Commissioners of the payment of any amount,
include references to the discharge by way of set-off (whether in accordance with regulations under paragraph 42 or 43 below or otherwise) of the Commissioners’ liability to pay that amount.
12
1
For sub-paragraphs (4) to (6) of that paragraph (periods left out of account in computing periods for which the Commissioners are liable to interest) there shall be substituted the following sub-paragraphs—
4
In determining the applicable period for the purposes of this paragraph there shall be left out of account any period by which the Commissioners’ authorisation of the payment of interest is delayed by the conduct of the person who claims the interest.
4A
The reference in sub-paragraph (4) above to a period by which the Commissioners’ authorisation of the payment of interest is delayed by the conduct of the person who claims it includes, in particular, any period which is referable to—
a
any unreasonable delay in the making of the claim for interest or in the making of any claim for the payment or repayment of the amount on which interest is claimed;
b
any failure by that person or a person acting on his behalf or under his influence to provide the Commissioners—
i
at or before the time of the making of a claim, or
ii
subsequently in response to a request for information by the Commissioners,
with all the information required by them to enable the existence and amount of the claimant’s entitlement to a payment or repayment, and to interest on that payment or repayment, to be determined; and
c
the making, as part of or in association with either—
i
the claim for interest, or
ii
any claim for the payment or repayment of the amount on which interest is claimed,
of a claim to anything to which the claimant was not entitled.
5
In determining for the purposes of sub-paragraph (4A) above whether any period of delay is referable to a failure by any person to provide information in response to a request by the Commissioners, there shall be taken to be so referable, except so far as may be provided for by regulations, any period which—
a
begins with the date on which the Commissioners require that person to provide information which they reasonably consider relevant to the matter to be determined; and
b
ends with the earliest date on which it would be reasonable for the Commissioners to conclude—
i
that they have received a complete answer to their request for information;
ii
that they have received all that they need in answer to that request; or
iii
that it is unnecessary for them to be provided with any information in answer to that request.
2
Sub-paragraph (1) above shall have effect for the purposes of determining whether any period beginning on or after the day on which this Act is passed is left out of account.
Part IV Set-off involving landfill tax
13
1
In paragraph 42 of Schedule 5 to the M30Finance Act 1996 (set-off of amounts), after sub-paragraph (4) there shall be inserted the following sub-paragraph—
4A
The regulations may provide for any limitation on the time within which the Commissioners are entitled to take steps for recovering any amount due to them in respect of landfill tax to be disregarded, in such cases as may be described in the regulations, in determining whether any person is under such a duty to pay as is mentioned in sub-paragraph (1)(a) above.
2
In paragraph 43 of that Schedule (set-off of amounts), after sub-paragraph (4) there shall be inserted the following sub-paragraph—
4A
The regulations may provide for any limitation on the time within which the Commissioners are entitled to take steps for recovering any amount due to them in respect of any of the taxes under their care and management to be disregarded, in such cases as may be described in the regulations, in determining whether any person is under such a duty to pay as is mentioned in sub-paragraph (1)(a) above.
Part V Recovery of excess payments by the Commissioners
Assessment for excessive repayment
14
1
Where—
a
any amount has been paid at any time to any person by way of a repayment under a relevant repayment provision, and
b
the amount paid exceeded the amount which the Commissioners were liable at that time to repay to that person,
the Commissioners may, to the best of their judgement, assess the excess paid to that person and notify it to him.
2
Where any person is liable to pay any amount to the Commissioners in pursuance of an obligation imposed by virtue of paragraph 3(4)(a) above, the Commissioners may, to the best of their judgement, assess the amount due from that person and notify it to him.
3
In this paragraph “relevant repayment provision” means—
a
section 137A of the M31Customs and Excise Management Act 1979 (recovery of overpaid excise duty);
b
c
paragraph 14 of Schedule 5 to the Finance Act 1996 (recovery of overpaid landfill tax) F3or
d
Part 1 of Schedule 3 to the Finance Act 2001 (payments made and rebates disallowed in error).
Assessment for overpayments of interest
15
1
Where—
a
any amount has been paid to any person by way of interest under a relevant interest provision, but
b
that person was not entitled to that amount under that provision,
the Commissioners may, to the best of their judgement, assess the amount so paid to which that person was not entitled and notify it to him.
2
In this paragraph “relevant interest provision” means—
F4a
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
b
paragraph 22 of Schedule 7 to that Act (interest payable by the Commissioners on overpayments etc. of insurance premium tax); F5. . .
c
d
Part 2 of Schedule 3 to the Finance Act 2001 (interest).
Assessments under paragraphs 14 and 15
16
1
An assessment under paragraph 14 or 15 above shall not be made more than two years after the time when evidence of facts sufficient in the opinion of the Commissioners to justify the making of the assessment comes to the knowledge of the Commissioners.
2
Where an amount has been assessed and notified to any person under paragraph 14 or 15 above, it shall be recoverable (subject to any provision having effect in accordance with paragraph 19 below) as if it were relevant tax due from him.
3
Sub-paragraph (2) above does not have effect if, or to the extent that, the assessment in question has been withdrawn or reduced.
Interest on amounts assessed
17
1
Where an assessment is made under paragraph 14 or 15 above, the whole of the amount assessed shall carry interest at the rate applicable under section 197 of the Finance Act 1996 from the date on which the assessment is notified until payment.
2
Where any person is liable to interest under sub-paragraph (1) above the Commissioners may assess the amount due by way of interest and notify it to him.
3
Without prejudice to the power to make assessments under this paragraph for later periods, the interest to which an assessment under this paragraph may relate shall be confined to interest for a period of no more than two years ending with the time when the assessment under this paragraph is made.
4
Interest under this paragraph shall be paid without any deduction of income tax.
5
A notice of assessment under this paragraph shall specify a date, being not later than the date of the notice, to which the amount of interest is calculated; and, if the interest continues to accrue after that date, a further assessment or assessments may be made under this paragraph in respect of amounts which so accrue.
6
If, within such period as may be notified by the Commissioners to the person liable for interest under sub-paragraph (1) above, the amount referred to in that sub-paragraph is paid, it shall be treated for the purposes of that sub-paragraph as paid on the date specified as mentioned in sub-paragraph (5) above.
7
Where an amount has been assessed and notified to any person under this paragraph it shall be recoverable as if it were relevant tax due from him.
8
Sub-paragraph (7) above does not have effect if, or to the extent that, the assessment in question has been withdrawn or reduced.
Supplementary assessments
18
If it appears to the Commissioners that the amount which ought to have been assessed in an assessment under paragraph 14, 15 or 17 above exceeds the amount which was so assessed, then—
a
under the same paragraph as that assessment was made, and
b
on or before the last day on which that assessment could have been made,
the Commissioners may make a supplementary assessment of the amount of the excess and shall notify the person concerned accordingly.
Review of decisions and appeals
19
1
Sections F6813A to 16 of the M34Finance Act 1994 (review and appeals) shall have effect in relation to any decision which—
a
is contained in an assessment under paragraph 14, 15 or 17 above,
b
is a decision about whether any amount is due to the Commissioners or about how much is due, and
c
as if that decision were such a decision as is mentioned in section F6913A(2)(b) of that Act of 1994.
2
Sections F7059 to 60 of that Act of 1994 (review and appeal in the case of insurance premium tax) shall have effect in relation to any decision which—
a
is contained in an assessment under paragraph 14, 15 or 17 above,
b
is a decision about whether any amount is due to the Commissioners or about how much is due, and
c
is made in a case in which the relevant repayment provision is paragraph 8 of Schedule 7 to that Act or the relevant interest provision is paragraph 22 of that Schedule,
as if that decision were a decision to which section 59 of that Act applies.
3
Sections 54 to 56 of the M36Finance Act 1996 (review and appeal in the case of landfill tax) shall have effect in relation to any decision which—
a
is contained in an assessment under paragraph 14, 15 or 17 above,
b
is a decision about whether any amount is due to the Commissioners or about how much is due, and
c
is made in a case in which the relevant repayment provision is paragraph 14 of Schedule 5 to that Act or the relevant interest provision is paragraph 29 of that Schedule,
as if that decision were a decision to which section 54 of that Act applies.
Interpretation of Part V
20
1
In this Part of this Schedule “the Commissioners” means the Commissioners of Customs and Excise.
2
In this Part of this Schedule “relevant tax”, in relation to any assessment, means—
a
a duty of excise if the assessment relates to—
i
a repayment of an amount paid by way of such a duty,
ii
an overpayment of interest under F8Part 2 of Schedule 3 to the Finance Act 2001, or
iii
interest on an amount specified in an assessment in relation to which the relevant tax is a duty of excise;
b
insurance premium tax if the assessment relates to—
i
a repayment of an amount paid by way of such tax,
ii
an overpayment of interest under paragraph 22 of Schedule 7 to the Finance Act 1994, or
iii
interest on an amount specified in an assessment in relation to which the relevant tax is insurance premium tax;
and
c
landfill tax if the assessment relates to—
i
a repayment of an amount paid by way of such tax,
ii
an overpayment of interest under paragraph 29 of Schedule 5 to the M37Finance Act 1996, or
iii
interest on an amount specified in an assessment in relation to which the relevant tax is landfill tax.
3
For the purposes of this Part of this Schedule notification to a personal representative, trustee in bankruptcy, interim or permanent trustee, receiver, liquidator or person otherwise acting in a representative capacity in relation to another shall be treated as notification to the person in relation to whom he so acts.
Consequential amendment
21
In section 197(2) of the Finance Act 1996 (enactments for which interest rates are set under section 197), after paragraph (d) there shall be inserted
and
e
paragraph 17 of Schedule 5 to the Finance Act 1997 (interest on amounts repayable in respect of overpayments by the Commissioners in connection with excise duties, insurance premium tax and landfill tax).
SCHEDULE 6 Assessments for excise duty purposes
Assessment of amounts payable to the Commissioners
1
1
After section 12 of the Finance Act 1994 there shall be inserted the following sections—
12A Other assessments relating to excise duty matters.
1
This subsection applies where any relevant excise duty relief other than an excepted relief—
a
has been given but ought not to have been given, or
b
would not have been given had the facts been known or been as they later turn out to be.
2
Where subsection (1) above applies, the Commissioners may assess the amount of the relief given as being excise duty due from the liable person and notify him or his representative accordingly.
3
Where an amount has been assessed as due from any person under—
a
subsection (2) above,
b
section 94 or 96 of the Management Act, or
c
section 10, 13, 14, 23 or 24 of the M38Hydrocarbon Oil Duties Act 1979,
and notice has been given accordingly, that amount shall, subject to any appeal under section 16 below, be deemed to be an amount of excise duty due from that person and may be recovered accordingly, unless, or except to the extent that, the assessment has subsequently been withdrawn or reduced.
4
No assessment under any of the provisions referred to in subsection (3) above, or under section 61 or 167 of the Management Act, shall be made at any time after whichever is the earlier of the following times, that is to say—
a
subject to subsection (6) below, the end of the period of three years beginning with the relevant time; and
b
the end of the period of one year beginning with the day on which evidence of facts, sufficient in the opinion of the Commissioners to justify the making of the assessment, comes to their knowledge.
5
Subsection (4) above shall be without prejudice, where further evidence comes to the knowledge of the Commissioners at any time after the making the assessment concerned, to the making of a further assessment within the period applicable by virtue of that subsection in relation to that further assessment.
6
Subsection (4) above shall have effect as if the reference in paragraph (a) to three years were a reference to twenty years in any case where the assessment has been postponed or otherwise affected by, or the power to make the assessment arises out of, conduct falling within subsection (5)(a) or (b) of section 12 above (construed in accordance with subsection (7) of that section).
12B Section 12A: supplementary provisions.
1
For the purposes of section 12A above and this section, relevant excise duty relief has been given if (and only if)—
a
an amount of excise duty which a person is liable to pay has been remitted or payment of an amount of excise duty which a person is liable to pay has been waived;
b
an amount of excise duty has been repaid to a person;
c
an amount by way of drawback of excise duty has been paid to a person;
d
an allowance of excise duty in any amount has been made to a person;
e
an amount by way of rebate has been allowed to a person;
f
the liability of a person to repay an amount paid by way of drawback of excise duty has been waived;
g
an amount has been paid to a person under section 20(3) of the Hydrocarbon Oil Duties Act 1979 (payments in respect of contaminated or accidentally mixed oil); or
h
an amount of relief has been allowed to a person by virtue of section 20AA of that Act (power to allow reliefs), or in accordance with paragraph 10 of Schedule 3 to that Act (power to make regulations for the purpose of relieving from excise duty oil intended for exportation or shipment as stores);
and the amount of the relief is the amount mentioned in relation to the relief in this subsection.
2
For the purposes of section 12A above the relevant time is—
a
in the case of an assessment under section 61 of the Management Act, the time when the ship or aircraft in question returned to a place within the United Kingdom;
b
in the case of an assessment under section 94 of that Act, the time at which the goods in question were warehoused;
c
in the case of an assessment under that section as it has effect by virtue of section 95 of that Act, the time when the goods in question were lawfully taken from the warehouse;
d
in the case of an assessment under section 96 of that Act, the time when the goods in question were moved by pipe-line or notified as goods to be moved by pipe-line;
e
in the case of an assessment under section 167 of that Act—
i
if the assessment relates to unpaid duty, the time when the duty became payable or, if later, the time when the document in question was delivered or the statement in question was made; and
ii
if the assessment relates to an overpayment, the time when the overpayment was made;
f
in the case of an assessment under section 10, 13, 14 or 23 of the M39Hydrocarbon Oil Duties Act 1979, the time of the action which gave rise to the power to assess;
g
in the case of an assessment under section 24(4A) or (4B) of that Act, the time when the rebate was allowed or the oil was delivered without payment of duty (as the case may be);
h
in the case of an assessment under section 12A(2) above, the time when the relevant excise duty relief in question was given.
3
In section 12A above “the liable person” means—
a
in the case of excise duty which has been remitted or repaid under section 130 of the Management Act on the basis that goods were lost or destroyed while in a warehouse, the proprietor of the goods or the occupier of the warehouse;
b
in the case of a rebate which has been allowed on any oil under section 11 of the Hydrocarbon Oil Duties Act 1979, the person to whom the rebate was allowed or the occupier of any warehouse from which the oil was delivered for home use;
c
in the case of a rebate allowed on any petrol under section 13A of that Act, the person to whom the rebate was allowed or the occupier of any warehouse from which the petrol was delivered for home use;
d
in any other case, the person mentioned in subsection (1) above to whom the relief in question was given.
4
In section 12A above—
“excepted relief” means any relief which is given by the making of a repayment on a claim made under section 137A of the Management Act;
“representative”, in relation to any person from whom the Commissioners assess an amount as being excise duty due, means his personal representative, trustee in bankruptcy or interim or permanent trustee, any receiver or liquidator appointed in relation to him or any of his property or any other person acting in a representative capacity in relation to him.
2
After section 14(1)(b) of that Act there shall be inserted the following paragraph—
ba
any decision by the Commissioners to assess any person to excise duty under section 12A(2) above, section 61, 94, 96 or 167 of the Management Act or section 10, 13, 14, 23 or 24 of the M40Hydrocarbon Oil Duties Act 1979, or as to the amount of duty to which a person is to be assessed under any of those provisions;
3
In sections 12(8) and 13(7) of that Act (definition of “representative” for the purposes of sections 12 and 13), for “or trustee in bankruptcy,” there shall be substituted “
, trustee in bankruptcy or interim or permanent trustee,
”
.
Assessments in cases of a deficiency in stores
2
1
After subsection (7) of section 61 of the M41Customs and Excise Management Act 1979 (duty payable where deficiency or excess deficiency discovered in goods on return of ship or aircraft to United Kingdom) there shall be inserted the following subsection—
7A
No amount of excise duty shall be payable under subsection (7) above unless the Commissioners have assessed that amount as being excise duty due from the master of the ship or the commander of the aircraft and notified him or his representative accordingly.
2
In subsection (8) of that section (duty payable under subsection (7) recoverable as a civil debt) after “duty” there shall be inserted “
, other than excise duty,
”
.
3
After that subsection there shall be inserted the following subsection—
8A
An amount of excise duty assessed as being due under subsection (7A) above shall, unless, or except to the extent that, the assessment has subsequently been withdrawn or reduced and subject to any appeal under section 16 of the M42Finance Act 1994, be recoverable summarily as a civil debt.
4
In section 1(1) of that Act (interpretation), after the definition of “registered excise dealers and shippers regulations” there shall be inserted—
“representative”, in relation to any person from whom the Commissioners assess an amount as being excise duty due, means his personal representative, trustee in bankruptcy or interim or permanent trustee, any receiver or liquidator appointed in relation to him or any of his property or any other person acting in a representative capacity in relation to him;
Assessments in cases of a deficiency in warehoused goods
3
1
Section 94 of the M43Customs and Excise Management Act 1979 shall be amended in accordance with sub-paragraphs (2) to (6) below.
2
In subsection (3) (power to require payment of duty or repayment of drawback or allowance where warehoused goods are deficient), for the words from “require” to the end there shall be substituted the following paragraphs—
a
require the occupier of the warehouse or the proprietor of the goods to pay immediately any duty, other than excise duty, chargeable or deemed under warehousing regulations to be chargeable on the relevant goods or, in the case of goods warehoused on drawback which could not lawfully be entered for home use, an amount equal to any drawback or allowance of such duty paid in respect of the relevant goods;
b
assess, as being excise duty due from the occupier of the warehouse or the proprietor of the goods, the excise duty chargeable or deemed under warehousing regulations to be chargeable on the relevant goods or, in the case of goods warehoused on drawback which could not lawfully be entered for home use, an amount equal to any drawback or allowance of excise duty paid in respect of the relevant goods.
3
After subsection (3) there shall be inserted the following subsection—
3A
Where the Commissioners make an assessment under subsection (3)(b) above they shall notify the person assessed or his representative accordingly.
4
In subsection (4) for “(3)” there shall be substituted “
(3)(a)
”
.
5
After subsection (4) there shall be inserted the following subsections—
4A
If—
a
the occupier of the warehouse or the proprietor of the goods refuses to pay any amount of excise duty to which he has been assessed under subsection (3)(b) above, and
b
the conditions set out in subsection (4B) below are fulfilled,
he shall be liable on summary conviction to a penalty of double that amount.
4B
The conditions are that—
a
the period of forty-five days referred to in section 14(3) of the M44Finance Act 1994 (period during which review may be required) has expired;
b
on any review under Chapter II of Part I of that Act the Commissioners’ decision (“the original decision”) in relation to the assessment has been confirmed (or treated as confirmed by virtue of section 15(2) of that Act), or confirmed subject only to a reduction in the amount of duty due under the assessment; and
c
the final result of any further appeal is that the original decision has been confirmed, subject only to any reduction in the amount of duty due under the assessment; and “final result” means the result of the last of any such appeals, against which no appeal may be made (whether because of expiry of time or for any other reason).
4C
Where the amount of excise duty due under subsection (3)(b) above is reduced in consequence of a review or appeal, the penalty to which the person assessed is liable under subsection (4A) above shall be a penalty of double the reduced amount.
6
After subsection (5) there shall be inserted the following subsection—
5A
In this section “the relevant goods” means the missing goods or the whole or any part of the deficiency, as the Commissioners see fit.
7
In section 95 of that Act (application of section 94 to certain goods in the course of removal from warehouse), in subsection (2)(b) (section 94 to apply with the omission of references in subsections (3) and (4) to the occupier of the warehouse) for “and (4)” there shall be substituted “
, (4) and (4A)
”
.
Assessments in cases of a deficiency in goods moved by pipe-line
4
1
Section 96 of the M45Customs and Excise Management Act 1979 shall be amended in accordance with sub-paragraphs (2) to (6) below.
2
In subsection (2) (power to require payment of unpaid or repaid duty, or repayment of drawback, where goods moved by pipe-line are deficient) for the words from “require” to the end there shall be substituted the following paragraphs—
a
require the owner of the pipe-line or the proprietor of the goods to pay immediately any duty, other than excise duty, unpaid or repaid on the relevant goods or, as the case may be, an amount equal to any drawback of such duty paid on the relevant goods;
b
assess, as being excise duty due from the owner of the pipe-line or the proprietor of the goods, the excise duty unpaid or repaid on the relevant goods or, as the case may be, an amount equal to any drawback of excise duty paid on the relevant goods.
3
After subsection (2) there shall be inserted the following subsection—
2A
Where the Commissioners make an assessment under subsection (2)(b) above they shall notify the person assessed or his representative accordingly.
4
In subsection (3) for “(2)” there shall be substituted “
(2)(a)
”
.
5
After subsection (3) there shall be inserted the following subsections—
3A
If—
a
any person refuses to pay any amount of excise duty to which he has been assessed under subsection (2)(b) above, and
b
the conditions set out in paragraphs (a) to (c) of section 94(4B) above (exhaustion of opportunities for review and appeal) are fulfilled,
he shall be liable on summary conviction to a penalty of double that amount.
3B
Where the amount of excise duty due under subsection (2)(b) above is reduced in consequence of a review or appeal, the penalty to which the person assessed is liable under subsection (3A) above shall be a penalty of double the reduced amount.
6
After subsection (5) there shall be inserted the following subsection—
5A
In this section “the relevant goods” means the missing goods or the whole or any part of the deficiency, as the Commissioners see fit.
Assessments in cases of untrue declarations etc.
5
After section 167(4) of the Customs and Excise Management Act 1979 (recovery as a debt due to the Crown or as a civil debt of amounts of duty not paid, and of overpayments in respect of drawback etc. made, by reason of untrue declaration etc.) there shall be inserted the following subsection—
5
An amount of excise duty, or the amount of an overpayment in respect of any drawback, allowance, rebate or repayment of any excise duty, shall not be recoverable as mentioned in subsection (4) above unless the Commissioners have assessed the amount of the duty or of the overpayment as being excise duty due from the person mentioned in subsection (1) or (3) above and notified him or his representative accordingly.
Assessments relating to hydrocarbon oil duty
6
1
In section 10(3) of the M46Hydrocarbon Oil Duties Act 1979 (power to recover excise duty where restrictions on use of duty-free oil infringed), for the words from “recover” to the end there shall be substituted “
assess an amount equal to the excise duty on like oil at the rate in force at the time of the contravention as being excise duty due from him, and notify him or his representative accordingly.
”
F92
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3
In section 14(4) of that Act (power to recover rebate where light oil delivered for use as furnace fuel is misused), for the words from “recover” to the end there shall be substituted “
assess the amount of rebate allowed on the oil as being excise duty due from him, and notify him or his representative accordingly.
”
4
After subsection (1A) of section 23 of that Act (prohibition on use of road fuel gas on which duty has not been paid) there shall be inserted the following subsection—
1B
Where any person—
a
uses as fuel in, or
b
takes as fuel into,
a road vehicle any road fuel gas on which the excise duty chargeable under section 8 above has not been paid, the Commissioners may assess the amount of that duty as being excise duty due from that person and notify him or his representative accordingly.
F625
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6
After subsection (4) of section 24 of that Act (control of use of duty-free and rebated oil) there shall be inserted the following subsections—
4A
Where—
a
a rebate of duty is allowed on any oil, and
b
a person contravenes or fails to comply with any requirement which, by virtue of any regulations made under this section, is a condition of allowing the rebate,
the Commissioners may assess an amount equal to the rebate as being excise duty due from that person, and notify him or his representative accordingly.
4B
Where—
a
any oil is delivered without payment of duty, and
b
a person contravenes or fails to comply with any requirement which, by virtue of any regulations made under this section, is a condition of allowing the oil to be delivered without payment of duty,
the Commissioners may assess an amount equal to the excise duty on like oil at the rate in force at the time of the contravention or failure to comply as being excise duty due from that person, and notify him or his representative accordingly.
7
In the Table set out in section 27(3) of that Act (interpretation), under the heading “Management Act” there shall be inserted at the appropriate place “
“representative”
”
.
Commencement
P27
This Schedule shall come into force on such day as the Commissioners of Customs and Excise may by order made by statutory instrument appoint; and different days may be appointed under this paragraph for different purposes.
C3SCHEDULE 7 Special treatment for certain distributions
Distributions to which Schedule applies
F101
1
Subject to paragraphs 4 to 7 below, this Schedule applies to any qualifying distribution which—
a
falls within either or both of sub-paragraphs (2) and (3) below; and
b
is a distribution made on or after 8th October 1996 by a company resident in the United Kingdom.
2
A qualifying distribution of a company falls within this sub-paragraph if it is a payment made by that company—
a
on the redemption, repayment or purchase of its own shares, or
b
on the purchase of rights to acquire its own shares.
3
A qualifying distribution of a company falls within this sub-paragraph if—
a
arrangements are or have been made by virtue of which any one or more of the specified matters is or was made referable (in some way and to any extent) to, or to the carrying out of, a transaction in securities; and
b
that transaction is a transaction completed on or after 8th October 1996, or some or all of those arrangements are arrangements made on or after that date.
4
For the purposes of this Schedule the specified matters, in relation to a qualifying distribution, are—
a
whether the distribution is made,
b
the time when it is made,
c
its form, and
d
its amount.
5
In this Schedule—
“arrangements” means arrangements of any kind, whether in writing or not;
“qualifying distribution” has the same meaning as in the Taxes Act 1988;
“shares” has the same meaning as in sections 219 to 228 of that Act (purchase of own shares);
“transaction in securities” has the same meaning as in Chapter I of Part XVII of that Act (cancellation of tax advantages from certain transactions in securities).
Distributions treated as FIDs
F112
C11
The Tax Acts shall have effect, and be deemed in relation to any time on or after 8th October 1996 to have had effect, as if a qualifying distribution to which this Schedule applies were a foreign income dividend within the meaning of Chapter VA of Part VI of the Taxes Act 1988 and, accordingly, as if the making of the distribution were the payment of a foreign income dividend.
2
In section 246A of the Taxes Act 1988 (elections for dividends to be treated as foreign income dividends), after subsection (2) there shall be inserted the following subsection—
2A
An election under this section cannot be made as regards a distribution which already falls to be treated as a foreign income dividend by virtue of paragraph 2(1) of Schedule 7 to the Finance Act 1997.
3
Sub-paragraph (1) above has effect subject to—
F12a
section 95(1A)(b) of the Taxes Act 1988 (receipt of qualifying distribution by dealer not to be treated as FID for certain purposes); and
b
section 247(5B) to (5D) F13of the Taxes Act 1988 (distributions that are subject to group income elections).
4
Sub-paragraph (2) above has effect in relation to the making of elections on or after 8th October 1996.
Distributions treated as section 686 income of trustees
F143
1
This paragraph applies where—
a
a qualifying distribution to which this Schedule applies by virtue of its falling within paragraph 1(2) above is or has been made to trustees; and
b
those trustees are not or, as the case may be, were not the trustees of a unit trust scheme within the meaning of section 469 of the Taxes Act 1988.
2
The relevant part of that distribution (and, accordingly, the corresponding part of the foreign income dividend that paragraph 2(1) above deems the distribution to be) shall be treated for the purposes of the Tax Acts as if it were income to which section 686 of the Taxes Act 1988 (application of rate applicable to trusts to income of certain discretionary trusts) applies.
3
In sub-paragraph (2) above the reference to the relevant part of the distribution is a reference to so much (if any) of that distribution as—
a
is not income falling within paragraph (a) of section 686(2) of the Taxes Act 1988 (income which is to be accumulated or which is payable at any person’s discretion);
b
does not fall to be treated for the purposes of the Income Tax Acts as income of a settlor;
c
is not income arising under a trust established for charitable purposes; and
d
is not income from investments, deposits or other property held for any such purposes as are mentioned in sub-paragraph (i) or (ii) of section 686(2)(c) of the Taxes Act 1988 (property held for pension purposes).
4
Subsection (6) of section 686 of the Taxes Act 1988 (meaning of “trustees” etc.) shall apply for the purposes of this paragraph as it applies for the purposes of that section.
5
This paragraph has effect for the year 1997-98 and subsequent years of assessment and shall be deemed to have had effect for the year 1996-97 in relation to distributions made on or after 5th December 1996.
Stock options
F154
1
A qualifying distribution does not fall within paragraph 1(3) above by reason only that it is made in consequence of the exercise of such an option as is mentioned in section 249(1)(a) of the Taxes Act 1988 (option to receive either a cash dividend or additional share capital).
2
Section 251(1)(c) of the Taxes Act 1988 (interpretation of references to the exercise of an option to receive either a cash dividend or additional share capital) shall apply for the purposes of this paragraph as it applies for the purposes of sections 249 and 250 of that Act.
Pre-sale distributions
F206
1
A qualifying distribution which is an excepted pre-sale distribution does not fall within paragraph 1(3) above if the only transactions in securities to which any of the specified matters are referable are relevant transactions.
2
For the purposes of this paragraph, a qualifying distribution of a company is an excepted pre-sale distribution if, in the period beginning with the making of the distribution and ending with the fourteenth day after the day on which the distribution is made, there is a major change in the ownership of that company.
3
For the purposes of sub-paragraph (2) above, there is a major change in the ownership of a company in any period if, in that period—
a
a single person acquires a holding of 75 per cent. or more of the ordinary share capital of the company; or
b
each of two or more persons acquires a holding of ordinary share capital of the company, and the holdings together amount to 75 per cent. or more of the ordinary share capital of the company.
4
For the purposes of this paragraph a relevant transaction, in relation to any excepted pre-sale distribution, is any transaction in securities by which the holding or, as the case may be, any of the holdings mentioned in sub-paragraph (3) above is acquired.
5
In applying sub-paragraph (3) above—
a
the circumstances at any two points in time falling within the period in question may be compared, and a holder at the later time may be regarded as having acquired in that period whatever he did not hold at the earlier time, irrespective of what he has acquired or disposed of in between;
b
to allow for any issue of shares or other reorganisation of capital, any such comparison may be made in terms of percentage holdings of the total ordinary share capital at the respective times, so that a person whose percentage holding is greater at the later time may be regarded as having acquired in the period a percentage holding equal to the increase;
c
any acquisition of shares under the will or on the intestacy of a deceased person, and any gift of shares which is unsolicited and made without regard to the provisions of paragraphs 2 and 3 above, shall be left out of account.
6
For the purposes of this paragraph, where—
a
persons, whether company members or not, possess extraordinary rights or powers under the articles of association of a company or under any other document regulating the company, and
b
because of that fact, ownership of the ordinary share capital may not be an appropriate test of whether there has been a major change in the ownership of the company,
then, in considering whether there has been a major change in the ownership of the company, holdings of all kinds of share capital, including preference shares, or of any particular kind of share capital, or voting power or any other special kind of power, shall be taken into account, and holdings of ordinary share capital shall be disregarded, to such extent as may be appropriate.
7
For the purposes of this paragraph, references to ownership shall be construed as references to beneficial ownership, and references to acquisition shall be construed accordingly.
Manufactured payments
F217
1
A manufactured dividend shall not be taken to be a qualifying distribution to which this Schedule applies except in pursuance of sub-paragraph (2) below.
2
Where a payment is made which is representative of a qualifying distribution to which this Schedule applies, that payment shall be deemed to be such a distribution for all the purposes of the Tax Acts, except those for which Schedule 23A to the Taxes Act 1988 (manufactured payments) makes provision in relation to the payment which is different from the provision applying to distributions to which this Schedule applies.
3
For the purposes of Schedule 23A to the Taxes Act 1988 a payment which is representative of a payment falling within paragraph 1(2) above shall be treated as if it were representative of a dividend on the shares redeemed, repaid or purchased or, as the case may be, on the shares to which the right relates.
4
In this paragraph “manufactured dividend” has the same meaning as in Schedule 23A to the Taxes Act 1988.
Amendment of section 95 of the Taxes Act 1988
8
F711
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2
In that Act—
F44a
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
b
in section 234(1)
(information relating to distributions), for “95(1)(c)” there shall be substituted “
95(1A)(c)
”
.
3
This paragraph has effect in relation to distributions made on or after 26th November 1996.
Information to be provided about deemed FID
F229
1
In section 246G(1)(d) of that Act (information to be provided about a foreign income dividend), after “carries no entitlement to a tax credit” there shall be inserted “
and, in the case of a qualifying distribution to which Schedule 7 to the Finance Act 1997 applies, that it is a foreign income dividend by virtue of paragraph 2(1) of that Schedule
”
.
2
This paragraph has effect in relation to distributions made on or after 26th November 1996.
Group income
F2310
C21
In subsection (5A) of section 247 of that Act (under which the group income provisions do not apply to FIDs), at the beginning there shall be inserted the words “
Subject to subsections (5B) to (5D) below,
”
; and after that subsection there shall be inserted the following subsections—
5B
Where—
a
a company falling within subsection (5C) below and resident in the United Kingdom receives a dividend, and
b
that dividend would, apart from subsection (5D) below, be a distribution to which Schedule 7 to the Finance Act 1997 (special treatment for certain distributions) applies,
the dividend shall be taken to be one in relation to which an election under subsection (1) above may have effect in accordance with this section.
5C
The receiving company falls within this subsection if—
a
it directly or indirectly owns all the ordinary share capital of the paying company, or
b
all the ordinary share capital of the paying company is owned directly or indirectly by a company resident in the United Kingdom which also owns, directly or indirectly, all the ordinary share capital of the receiving company;
and section 838 shall apply for construing the references in this subsection to directly or indirectly owning ordinary share capital of a company.
5D
If an election under subsection (1) above has effect in relation to such a distribution as is mentioned in subsection (5B) above, that distribution shall be deemed to be a distribution to which Schedule 7 to the Finance Act 1997 does not apply.
2
This paragraph has effect in relation to distributions made on or after 26th November 1996.
Distribution accounts
F2411
1
In section 468I of that Act (distribution accounts of authorised unit trusts), after subsection (5) there shall be inserted the following subsection—
5A
The following amounts shown as available for distribution in the distribution accounts must be shown in those accounts as available for distribution as foreign income dividends—
a
amounts deriving from qualifying distributions to which Schedule 7 to the Finance Act 1997 (special treatment for certain distributions) applies; and
b
so much of any amounts not falling within paragraph (a) above as, if shown as available for distribution as dividends, would fall to be treated as distributions to which that Schedule applies.
2
This paragraph applies to distribution accounts for any distribution period ending on or after 26th November 1996.
Amendments consequential on paragraph 3 above
12
1
In section 686 of that Act (application of rate applicable to trusts to income of certain discretionary trusts), paragraph (d) of subsection (2) shall be omitted; F47...
F462
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F433
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4
This paragraph has effect for the year 1997-98 and subsequent years of assessment and shall be deemed to have had effect for the year 1996-97.
F45SCHEDULE 8 Enterprise investment scheme: qualifying companies
Sch. 8 repealed (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 3 Pt. 2 (with Sch. 2)
F45 Introductory
F451
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F45 Requirements to be satisfied by the company for whose business activity money is raised
F452
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F45 Limit on relief for trading groups which let or operate ships
F453
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F45 Meaning of “qualifying company”
F454
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F45 Consequential amendments of section 297
F455
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F45 Consequential repeals of provisions about subsidiaries
F456
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F50SCHEDULE 9 Venture capital trusts: qualifying holdings
Sch. 9 repealed (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 3 Pt. 1 (with Sch. 2)
F50 Introductory
F501
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F50 Consequential amendment of paragraph 4(7)
F503
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F50 Application of investment
F504
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F50 Qualifying subsidiaries
F505
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F50 Commencement
F506
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
SCHEDULE 10 Stock lending arrangements and manufactured payments
Part I Stock lending
Approved stock lending arrangements: traders
1
1
Section 129 of the Taxes Act 1988 (treatment of approved stock lending arrangements when computing the profits of a trade) shall cease to have effect.
2
Section 129A of, and Schedule 5A to, that Act (interest on cash collateral for approved stock lending arrangements) shall also cease to have effect.
Stock lending fees
2
1
In subsection (3) of section 129B of the Taxes Act 1988 (stock lending fees under approved stock lending arrangements), for “an approved” there shall be substituted “
any
”
.
2
For subsection (4) of that section (meaning of approved stock lending arrangement) there shall be substituted the following subsection—
4
In this section “stock lending arrangement” has the same meaning as in section 263B of the 1992 Act.
Stock lending agreements under which manufactured payments are not made
F793
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Manufactured payments in stock lending cases etc.
4
In Schedule 23A to the Taxes Act 1988 (manufactured payments)—
a
paragraph 6 (unapproved manufactured payments) shall cease to have effect; and
b
in paragraph 7(3)—
i
in paragraph (a), the words “except where paragraph 6 above applies, and” shall be omitted;
ii
paragraph (b) shall be omitted; and
F80iii
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Stock lending arrangements: capital gains
5
1
After section 263A of the M47Taxation of Chargeable Gains Act 1992 (agreements for sale and repurchase of securities) there shall be inserted the following sections—
263B Stock lending arrangements.
1
In this section “stock lending arrangement” means so much of any arrangements between two persons (“the borrower” and “the lender”) as are arrangements under which—
a
the lender transfers securities to the borrower otherwise than by way of sale; and
b
a requirement is imposed on the borrower to transfer those securities back to the lender otherwise than by way of sale.
2
Subject to the following provisions of this section and section 263C(2), the disposals and acquisitions made in pursuance of any stock lending arrangement shall be disregarded for the purposes of capital gains tax.
3
Where—
a
the borrower under any stock lending arrangement disposes of any securities transferred to him under the arrangement,
b
that disposal is made otherwise than in the discharge of the requirement for the transfer of securities back to the lender, and
c
that requirement, so far as it relates to the securities disposed of, has been or will be discharged by the transfer of securities other than those transferred to the borrower,
any question relating to the acquisition of the securities disposed of shall be determined (without prejudice to the provisions of Chapter I of Part IV) as if the securities disposed of were the securities with which that requirement (so far as relating to the securities disposed of) has been or will be discharged.
4
Where, in the case of any stock lending arrangement, it becomes apparent, at any time after the making of the transfer by the lender, that the requirement for the borrower to make a transfer back to the lender will not be complied with—
a
the lender shall be deemed for the purposes of this Act to have made a disposal at that time of the securities transferred to the borrower;
b
the borrower shall be deemed to have acquired them at that time; and
c
subsection (3) above shall have effect in relation to any disposal before that time by the borrower of securities transferred to him by the lender as if the securities deemed to have been acquired by the borrower in accordance with paragraph (b) above were to be used for discharging a requirement to transfer securities back to the lender.
5
References in this section, in relation to a person to whom securities are transferred, to the transfer of those securities back to another person shall be construed as if the cases where those securities are taken to be transferred back to that other person included any case where securities of the same description as those securities are transferred to that other person either—
a
in accordance with a requirement to transfer securities of the same description; or
b
in exercise of a power to substitute securities of the same description for the securities that are required to be transferred back.
6
For the purposes of this section securities shall not be taken to be of the same description as other securities unless they are in the same quantities, give the same rights against the same persons and are of the same type and nominal value as the other securities.
7
In this section—
“interest” includes dividends; and
“securities” means United Kingdom equities, United Kingdom securities or overseas securities (within the meaning, in each case, of Schedule 23A to the Taxes Act).
263C Stock lending involving redemption.
1
In section 263B references to the transfer back to a person of securities transferred by him shall be taken to include references to the payment to him, in pursuance of an obligation arising on any person’s becoming entitled to receive an amount in respect of the redemption of those securities, of an amount equal to the amount of the entitlement.
2
Where, in pursuance of any such obligation, the lender under any stock lending arrangement is paid any amount in respect of the redemption of any securities to which the arrangement relates—
a
that lender shall be deemed for the purposes of this Act to have disposed, for that amount, of the securities in respect of whose redemption it is paid (“the relevant lent securities”);
b
the borrower shall not, in respect of the redemption, be taken for the purposes of this Act to have made any disposal of the relevant lent securities; and
c
section 263B(3) shall have effect in relation to disposals of any of the relevant lent securities made by the borrower before the redemption as if—
i
the amount paid to the lender were an amount paid for the acquisition of securities, and
ii
the securities acquired were to be used by the borrower for discharging a requirement under the arrangement to transfer the relevant lent securities back to the lender.
3
Expressions used in this section and section 263B have the same meanings in this section as in that section.
2
Section 271(9) of that Act (treatment of approved stock lending arrangements) shall cease to have effect.
F483
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Commencement
7
P31
This Part of this Schedule (except paragraph 4 above) has effect in relation to, and to transfers under, any arrangement made on or after such day as the Treasury may by order made by statutory instrument appoint.
2
Paragraph 4 above has effect in relation to any manufactured payment made on or after the day appointed under sub-paragraph (1) above.
Part II Manufactured payments
Repeal of section 737 of the Taxes Act 1988
8
Section 737 of the Taxes Act 1988 (manufactured dividends: treatment of tax deducted) shall cease to have effect.
Meaning of “foreign income dividend”
F259
In paragraph 1(1) of Schedule 23A to that Act (interpretation of that Schedule), after the definition of “dividend manufacturing regulations” there shall be inserted the following definition—
“foreign income dividend” shall be construed in accordance with Chapter VA of Part VI;
Manufactured dividends on UK equities
F8110
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Manufactured interest on UK securities
F4911
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Repeal of paragraph 5 of Schedule 23A
12
Paragraph 5 of Schedule 23A to that Act (dividends and interest passing through the market) shall cease to have effect.
Consequential amendments in Schedule 23A
F8213
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Amendments of Taxes Management Act 1970
14
1
Section 21 of the M50Taxes Management Act 1970 (information about a market maker’s business) shall be amended as follows.
2
For subsection (1) there shall be substituted the following subsection—
1
The Board may exercise the powers conferred by this section as respects, and in connection with, any business consisting in or involving dealings in securities; and for the purposes of this section it shall be immaterial whether those dealings are or, as the case may be, were—
a
on behalf of persons other than the person carrying on the business;
b
by that person on his own behalf; or
c
a mixture of the two.
3
In subsection (2)—
a
for the word “transactions”, in the first place where it occurs, there shall be substituted “
securities transactions
”
; and
b
for “market maker” there shall be substituted “
person
”
.
4
In subsection (3), for “transactions in the course of” there shall be substituted “
securities transactions in the course of any business of a person other than the broker which is
”
.
5
For subsection (4) there shall be substituted the following subsections—
4
Where a person (“the recipient”) who is not a broker has directly or indirectly received from another person any payment which—
a
is made by that other person in the course of a business within subsection (1) above, and
b
is a payment treated by that other person as made in respect of interest on securities,
the Board may by notice in writing require the recipient to state, within a time specified in the notice, whether the amount received is in whole or in part received on behalf of, or for payment on to, a third person and (if it is) to furnish the name and address of that third person.
4A
Where a person (“the payer”) has directly or indirectly paid to another person any sum which—
a
constitutes a receipt by that other person in the course of a business within subsection (1) above, and
b
is a receipt treated by that other person as accruing in respect of interest on securities,
the Board may by notice in writing require the payer to state, within a time specified in the notice, whether the amount paid is in whole or in part received from, or paid on account of, a third person and (if it is) to furnish the name and address of that third person.
6
In subsection (5)—
a
for “whether brokers or market makers or not” there shall be substituted “
at all
”
; and
b
for “transactions” there shall be substituted “
securities transactions
”
.
7
After that subsection there shall be inserted the following subsection—
5A
Where it appears to the Board that a person may have incurred a liability to pay or account for tax under Schedule 23A to the principal Act (manufactured payments), the Board may by notice served on that person require him, within such period (not being less than 28 days) as may be specified in the notice, to provide the Board with information which—
a
is available to that person; and
b
is or may be relevant to whether that person has incurred such a liability, or to the extent of such a liability.
8
For subsection (7) there shall be substituted the following subsection—
7
In this section—
“broker” means any person who is a member of a recognised investment exchange, within the meaning of the M51Financial Services Act 1986;
“interest” includes dividends;
“securities” includes shares and stock; and
“securities transaction” means—
- a
any transaction in securities;
- b
any transaction under which a payment which is representative of any interest on a security has been, is to be or may be made; or
- c
the making or receipt of such a payment.
Repeal of powers to modify information provisions
15
Commencement
16
P41
Subject to the following provisions of this paragraph, this Part of this Schedule has effect in relation to any payment of a manufactured dividend or manufactured interest which is a payment made on or after such day as the Treasury may by order made by statutory instrument appoint.
P42
Paragraph 14 above has effect (instead of in accordance with sub-paragraph (1) above but subject to sub-paragraph (3) below) for the purpose of conferring powers for obtaining information about—
a
transactions entered into on or after such day as the Treasury may by order made by statutory instrument appoint; and
b
payments made on or after that day (whether under such transactions or under transactions entered into before that day).
3
Nothing in this Part of this Schedule shall affect the exercise, at any time on or after the day appointed under sub-paragraph (2) above, of the powers conferred apart from this Schedule by—
a
section 21 of the M54Taxes Management Act 1970, or by any regulations modifying that section, or
b
section 737(8) of the Taxes Act 1988,
for obtaining information about transactions entered into, or payments made, before that day.
F42SCHEDULE 11 Futures and options: taxation of guaranteed returns
Sch. 11 repealed (6.4.2005) by Income Tax (Trading and Other Income) Act 2005 (c. 5), s. 883(1), Sch. 3 (with Sch. 2)
F42 Schedule to be inserted as Schedule 5AA to the Taxes Act 1988
F42
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
SCHEDULE 12 Leasing arrangements: finance leases and loans
Part I Leasing arrangements where any of the return on investment is in capital form
Purpose of this Part of this Schedule
F86F751
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Application of this Part of this Schedule
F86F752
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
The conditions
F86F753
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
The arrangements and circumstances in paragraph 3(5)
F86F754
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Current lessor to be taxed by reference to accountancy rental earnings
F86F755
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Reduction of taxable rent by certain excesses
F86F756
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Assignments on which neither a gain nor a loss accrues
F86F757
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Relief for bad debts etc: corporation tax under Schedule A
F268
C41
Section 41 of the Taxes Act 1988 (which gives a person relief from corporation tax under Schedule A for rent etc not paid, by treating him as if he had never been entitled to the rent) shall be disregarded in determining for the purposes of this Part of this Schedule the amount of—
a
the accountancy rental earnings in respect of the lease, or
b
the normal rent from the lease,
for any period of account.
C42
Where for any period of account—
a
a person is treated under paragraph 5 above as if he had been entitled to receive an amount of rent, and
b
the amount is in respect of rents on the profits or gains arising from which that person is chargeable to corporation tax under Schedule A,
section 41 of the Taxes Act 1988 shall not have effect in relation to amounts in respect of rents from the lease of the asset for that or any subsequent period of account of his, or of any person to whom the lessor’s interest under the lease is assigned, until the lease terminates or is assigned in circumstances such that paragraph 7 above does not apply.
C43
Where, by virtue of sub-paragraph (2) above, section 41 of the Taxes Act 1988 does not apply, sub-paragraph (4) below shall apply instead.
C44
In computing the profits or gains on which a person is chargeable to corporation tax under Schedule A in a case falling within sub-paragraph (2) above, any sums falling within sub-paragraph (i), (ii) or (iii) of section 74(1)(j) of the Taxes Act 1988 in respect of amounts in respect of rents from the lease of the asset shall be deductible in a period of account as an expense to the extent that they would be deductible in that period of account if—
a
amounts in respect of rents from the lease of the asset fell to be taken into account as trading receipts in computing the F27profits of a trade carried on by the person;
b
the asset were leased in the course of that trade; and
c
the charge to corporation tax under Schedule A were in respect of such annual profits or gains as are described in that Schedule arising from a trade.
C45
Any such expense as is mentioned in sub-paragraph (4) above shall be treated for the purposes of section 25 of the Taxes Act 1988 (deductions from rent for the purposes of corporation tax under Schedule A) as if that expense—
a
were included among the permitted deductions, within the meaning of that section;
b
were a payment made in respect of the premises comprised in the lease; and
c
were a payment which became due, and was made, immediately before the end of the period of account mentioned in sub-paragraph (4) above.
C46
Where—
a
a deduction has been made by virtue of sub-paragraph (4) above in respect of an amount, but
b
subsequently an amount (“the relevant credit”) is recovered or credited in respect of the amount in respect of which the deduction was made, and
c
the relevant credit would, on the suppositions in paragraphs (a) to (c) of sub-paragraph (4) above, be brought into account for tax purposes as a trading receipt for a period of account of the current lessor,
the taxable rent for that period of account shall be increased by the amount of the relevant credit.
C47
In sub-paragraph (6) above, “the taxable rent”, in the case of a period of account of the current lessor, means the amount which would, apart from that sub-paragraph, be treated for tax purposes as rent from the lease—
a
which arises to him, and
b
if rent arising to him from the lease is chargeable to corporation tax under Schedule A, to which he is entitled,
in that period of account for the purpose of determining his liability to tax for the related chargeable period or periods.
C58
After the time when the conditions in paragraph 3 above become satisfied as respects any particular lessor, no claim under section 41 of the Taxes Act 1988 shall be made in respect of any amount which that lessor was entitled to receive in respect of rents from the lease of the asset.
C69
Where—
a
before the time at which the conditions in paragraph 3 above become satisfied as respects any particular lessor, a claim under section 41 of the Taxes Act 1988 in respect of an amount which he was entitled to receive in respect of any rents from the lease of the asset has been made, and
b
the claim is to any extent allowed,
no amount shall be deductible under sub-paragraph (4) above in respect of that amount so far as so allowed.
Relief for bad debts etc: cumulative accountancy rental excess
F85F769
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Relief for bad debts etc: cumulative normal rental excess
F85F7610
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Capital allowances
F85F7611
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Chargeable gains
F7612
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Existing schemes where this Part does not at first apply
F84F7613
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
New schemes where this Part begins to apply after Part II has applied
F83F7614
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Part II Other finance leases
Purpose of this Part of this Schedule
F88F7615
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Application of this Part of this Schedule
F88F7616
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Application of provisions of Part I for purposes of Part II
F88F7617
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Part III Insurance companies
Accounting purposes
F5318
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Companies carrying on life assurance business
19
F541
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F542
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F543
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F634
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F285
In this paragraph “life assurance business” has the same meaning as in Chapter I of Part XII of the Taxes Act 1988.
Part IV Supplementary provisions
Normal rent
F87F7720
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accountancy rental earnings
F87F7721
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Rental earnings
F87F7722
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Periods of account which straddle 26th November 1996
F87F7723
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Time apportionment where periods do not coincide
F87F7724
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Connected persons
F87F7725
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Assets which represent the leased asset
F87F7726
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Existing schemes and new schemes
F87F7727
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accounting purposes and normal accountancy practice
F87F7728
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Assessments and adjustments
F87F7729
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interpretation
F87F7730
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
SCHEDULE 13 Loan relationships: amendment of transitional provisions
Introductory
1
Schedule 15 to the M55Finance Act 1996 (transitional provisions and savings for loan relationships) shall be amended as follows.
Transitional rules for transitional accounting periods
F722
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Opening valuations as at 1st April 1996
F733
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Adjustments in the case of pre-commencement trading relationships
4
In paragraph 5 (pre-commencement trading relationships), after sub-paragraph (4) there shall be inserted the following sub-paragraphs—
4A
In sub-paragraph (4) above the reference, in relation to a creditor relationship, to the amount deductible as representing the cost of a company’s becoming a party to the relationship shall not, except where sub-paragraph (4B) or (4C) below applies, include a reference to so much of that amount as would represent the cost of acquiring any right to accrued interest under the loan relationship.
4B
This sub-paragraph applies where—
a
the company became a party to the relationship before the beginning of its first relevant accounting period,
b
interest accruing under the relationship before the company became a party to it was paid to the company after it became a party to it but before the beginning of the company’s first relevant accounting period, and
c
the interest under the relationship which, in the case of that company, has been brought into account for the purposes of corporation tax has included interest accruing under the relationship before the company became a party to it but paid afterwards.
4C
This sub-paragraph applies where—
a
the company became a party to the loan relationship in a transitional accounting period, and
b
in the case of that company, interest under the relationship which—
i
accrued before the company became a party to the relationship, but
ii
became due and payable afterwards,
is brought into account for the purposes of this Chapter in accordance with an authorised mark to market basis of accounting.
Chargeable assets held after commencement
5
In paragraph 8 (transitional provision for chargeable assets held after commencement), after sub-paragraph (5) there shall be inserted the following sub-paragraph—
5A
In any case where the relevant event has not occurred before 14th November 1996, the deemed chargeable gain or deemed allowable loss falling to be brought into account in accordance with sub-paragraph (3) above shall be computed without any account being taken of the provisions of section 119(6) and (7) of the 1992 Act (transfer of securities with or without accrued interest).
Adjustments in the case of chargeable assets
6
In paragraph 11 (adjustments in the case of chargeable assets), for sub-paragraphs (2) to (4) there shall be substituted the following sub-paragraphs—
2
Those amounts are—
a
the notional closing value of the relationship as at 31st March 1996; and
b
the amount which would be taken on a computation made—
i
in accordance with an authorised accruals basis of accounting, and
ii
on the assumption that such a basis of accounting had always been used as respects that relationship,
to represent the accrued value of the loan relationship in question on 1st April 1996.
3
Where there is a difference between the amounts mentioned in sub-paragraph (2) above, that difference shall be brought into account—
a
where the amount mentioned in paragraph (a) of that sub-paragraph is the smaller, as a credit given for the purposes of this Chapter for the accounting period in which the company ceases to be a party to the relationship; and
b
in any other case, as a debit so given.
Commencement of Schedule
7
1
Subject to sub-paragraph (2) below, this Schedule has effect for the purpose of determining the credits and debits to be brought into account in any accounting period ending on or after 14th November 1996.
2
Paragraphs 4 and 6 above do not apply in the case of a loan relationship to which the company in question has ceased to be a party before 14th November 1996 unless—
a
that company ceased to be a party to the relationship as a result of being directly or indirectly replaced as a party to that relationship by another company, and
b
the transaction, or series of transactions, by virtue of which the replacement took place fell within any of paragraphs (a) to (d) of paragraph 12(1) of Schedule 9 to the M56Finance Act 1996 (continuity of treatment in the case of groups and certain transfers of insurance business).
3
A credit or debit a fraction of which falls to be brought into account under paragraph 6(4) of Schedule 15 to the Finance Act 1996 (election as to adjustments) in an accounting period ending on or after 14th November 1996 shall be determined, for the purposes mentioned in sub-paragraph (1) above, without applying sub-paragraph (2) above in relation to the relevant assumption.
F29SCHEDULE 14
Introductory
1
The M59Capital Allowances Act 1990 shall be amended as follows.
New Chapter on long-life assets
2
In Part II (machinery and plant), the following new Chapter shall be inserted after Chapter IV (short-life assets)—
Chapter IVA Long-life assets
Expenditure to which Chapter applies
38A Application of Chapter.
1
Subject to sections 38B to 38D and 38H, this Chapter applies to any capital expenditure incurred by a person on the provision of machinery or plant if that machinery or plant is a long-life asset.
2
For the purposes of this Chapter machinery or plant is a long-life asset if—
a
in the case of machinery or plant that is new, it is reasonable to expect that the machinery or plant will have a useful economic life of at least twenty-five years; or
b
in any other case, it was reasonable, when the machinery or plant was new, to expect that it would have a useful economic life of at least twenty-five years.
3
For the purposes of this section the useful economic life of machinery or plant is the period which—
a
begins with the first occasion on which the machinery or plant is brought into use by any person for any purpose; and
b
continues until the machinery or plant ceases to be machinery or plant that is or is likely to be used (whether or not by the person who first brought it into use and whether or not in a manner in which he used it) as a fixed asset of a business.
4
Where, by virtue of any of the following provisions of this Chapter, this Chapter applies to part only of the expenditure incurred by any person on the provision of any long-life asset, this Act shall have effect in relation to that expenditure as if the part to which this Chapter applies and the part to which it does not were, in each case, expenditure on a separate item of machinery or plant.
5
For the purposes of subsection (4) above all such apportionments shall be made as may be just and reasonable.
38B Expenditure excluded from the application of the Chapter.
1
This Chapter does not apply to expenditure on the provision of machinery or plant which is a fixture in, or is provided for use in, any building used wholly or mainly—
a
as a dwelling-house, retail shop, showroom, hotel or office; or
b
for purposes ancillary to the purposes of a dwelling-house, retail shop, showroom, hotel or office.
2
This Chapter does not apply to any expenditure on the provision of—
a
a motor car; or
b
a mechanically propelled road vehicle which would be a motor car but for section 36(1)(c).
3
This Chapter does not apply to any expenditure incurred before 1st January 2011 on the provision of a ship of a sea-going kind if each of the following conditions is satisfied—
a
that ship is not an offshore installation for the purposes of the M60Mineral Workings (Offshore Installations) Act 1971;
b
that ship would not be such an installation if the activity for the carrying on of which it is or is to be established or maintained were carried on in or under controlled waters (within the meaning of that Act); and
c
the primary use to which ships of the same kind as that ship are put by the persons to whom they belong (or, where their use is made available to others, by those others) is a use otherwise than for sport or recreation.
4
This Chapter does not apply to any expenditure incurred before 1st January 2011 on the provision of a railway asset provided for use (whether by the person incurring the expenditure or by any other person) wholly and exclusively for the purposes of a railway business.
5
In this section—
“fixture” has the same meaning as in Chapter VI of this Part;
“goods” has the same meaning as in Part I of the M61Railways Act 1993;
“light maintenance depot” means—
- a
any light maintenance depot within the meaning of Part I of the Railways Act 1993, or
- b
any land or other property which, in relation to anything which is a railway only where “railway” has the wider meaning given by section 81(2) of that Act, is the equivalent of such a depot;
“railway” has the wider meaning given by section 81(2) of the Railways Act 1993 (which defines railway so as to include tramways and other systems of guided transport);
“railway asset” means any of the following—
- a
any locomotive, tram or other vehicle designed or adapted for use on a railway;
- b
any carriage, wagon or other rolling stock designed or adapted for such use;
- c
anything which is or is to be comprised in any railway track, railway station or light maintenance depot; and
- d
any apparatus falling to be installed in association with anything within paragraph (c) above;
“railway business” means so much of any business as is carried on for the provision of a service to the public for the carriage of goods or passengers by means of a railway in the United Kingdom or the Channel Tunnel;
“railway station” includes anything included in the definition of “station” in section 83 of the M62Railways Act 1993 and anything that would be so included if, in that section, “railway” had the wider meaning given by section 81(2) of that Act;
“railway track” includes anything included in the definition of “track” in section 83 of the Railways Act 1993 and anything that would be so included if, in that section, “railway” had the wider meaning given by section 81(2) of that Act;
“retail shop” includes any premises of a similar character where retail trade or business (including repair work) is carried on.
6
For the purposes of subsection (4) above a railway asset falling within paragraph (a) or (b) of the definition in subsection (5) above shall not be treated as used otherwise than wholly and exclusively for the purposes of a railway business by reason only that it is used to carry goods or passengers from places in the United Kingdom to places outside the United Kingdom or vice versa.
38C Exclusion of Chapter where limit for individuals and partnerships not exceeded.
1
Subject to section 38F(3), this Chapter does not apply to any expenditure incurred by an individual, or by a partnership of which all the members are individuals, unless that expenditure is—
a
expenditure incurred in a chargeable period the relevant limit for which is exceeded in the case of that individual or partnership; or
b
expenditure which is not subject to that limit.
2
For the purposes of this section the relevant limit for a chargeable period is exceeded in the case of an individual or partnership if the total amount of capital expenditure which—
a
is incurred in that period by that individual or partnership,
b
is subject to the limit, and
c
is or, disregarding this section, would be expenditure to which this Chapter applies,
exceeds the limit applying to that period.
3
For the purposes of this section expenditure incurred by an individual is subject to the relevant limit for a chargeable period if—
a
it was incurred by him for the purposes of a trade or profession carried on by him;
b
that individual devotes substantially the whole of his time in that chargeable period to the carrying on of that trade or profession; and
c
the expenditure is not excluded from the operation of the limit.
4
For the purposes of this section expenditure incurred by a partnership is subject to the relevant limit for a chargeable period if—
a
it was incurred by the partnership for the purposes of a trade or profession carried on by that partnership;
b
at all times throughout that period at least half of the individuals who are for the time being members of the partnership are devoting substantially the whole of their time to the carrying on of that trade or profession; and
c
the expenditure is not excluded from the operation of the limit.
5
For the purposes of this section the expenditure which is excluded from the operation of the relevant limit for a chargeable period is any expenditure falling within any of the following paragraphs, that is to say—
a
expenditure on the provision of a share in machinery or plant;
b
expenditure which is treated as expenditure on the provision of machinery or plant by virtue of section 154 (contributions);
c
expenditure incurred on the provision of machinery or plant for leasing (whether or not the leasing is in the course of a trade).
6
The limit applying for the purposes of this section to a chargeable period of twelve months is £100,000.
7
The limit applying for the purposes of this section to a chargeable period which is not twelve months is the amount given by a proportional reduction or, as the case may require, increase of £100,000.
8
Where, in the case of any contract for the provision of machinery or plant, the capital expenditure which is or is to be incurred under that contract is or may fall to be treated for the purposes of this Act as incurred in different chargeable periods, all of the expenditure falling to be incurred under that contract on the provision of that machinery or plant shall be treated for the purposes of this section as incurred in the first chargeable period in which any of that expenditure is incurred.
9
This section does not apply for the purposes of corporation tax.
38D Exclusion of Chapter where company’s limit not exceeded.
1
Subject to section 38F(3), this Chapter does not apply for the purposes of corporation tax to any expenditure by a company unless that expenditure is—
a
expenditure incurred in a chargeable period the relevant limit for which is exceeded in relation to that company; or
b
expenditure excluded from the operation of that limit.
2
For the purposes of this section the relevant limit for a chargeable period is exceeded in relation to a company only if the total amount of capital expenditure which—
a
is incurred by that company in that period,
b
is not excluded from the operation of that limit, and
c
is or, disregarding this section, would be expenditure to which this Chapter applies,
exceeds the limit applying to that period.
3
Subject to subsection (5) below, the limit applying for the purposes of this section to a chargeable period of twelve months is £100,000.
4
Subject to subsection (5) below, the limit applying for the purposes of this section to a chargeable period of less than twelve months is the amount given by a proportional reduction of £100,000.
5
Where, in a chargeable period, a company has one or more associated companies, the limit applying to that period for the purposes of this section shall be the amount produced by—
a
taking the amount given for that period by subsection (3) or, as the case may be, subsection (4) above; and
b
dividing that amount by one plus the number of those companies.
6
Subsections (4) and (5) of section 13 of the principal Act (which identify the companies that are to count as associated companies for the purposes of section 13(3) of that Act) shall apply for the purposes of subsection (5) above as they apply for the purposes of subsection (3) of that section.
7
Subsections (5) and (8) of section 38C apply for the purposes of this section as they apply for the purposes of that section.
Rules applying to expenditure on long-life assets
38E Separate pools for expenditure on long-life assets.
1
Where expenditure to which this Chapter applies has been incurred on the provision of machinery or plant wholly and exclusively for the purposes of a trade (“the actual trade”), the following provisions of this section shall have effect with respect to the allowances and charges to be made under section 24 in the case of the actual trade.
2
It shall be assumed for the purposes of sections 24, 25 and 26—
a
that the person carrying on the actual trade incurred the expenditure on the provision of the machinery or plant wholly and exclusively for the purposes of a trade carried on by him separately from the actual trade and from any other trade which he in fact carries on or is assumed for any purpose to carry on;
b
that the purposes for which the machinery or plant is used (whether wholly or partly) are purposes of the separate trade if they are purposes of the actual trade, but not otherwise; and
c
that the separate trade is permanently discontinued if the actual trade is or is treated as permanently discontinued, but not otherwise.
3
Any allowance or charge under section 24 which, on those assumptions and having regard to subsection (4) below, would fall to be made for any chargeable period in the case of the separate trade shall be made for that period in the case of the actual trade.
4
If an allowance under section 24 falling by virtue of this section to be made for any chargeable period (“the earlier period”) in the case of the actual trade—
a
is not claimed, or
b
is reduced in amount in accordance with a requirement under subsection (3) of that section,
then, in determining the allowance or charge under that section which would fall to be made for any subsequent chargeable period in the case of the separate trade, any allowance falling to be made in the case of the separate trade for the earlier period shall be treated as not claimed or, as the case may require, as proportionately reduced.
5
Where there is more than one item of machinery or plant to which subsection (2) above applies in the case of any person, this section shall have effect as if the separate trade for which, in that person’s case, each of those items is treated as used were the same separate trade.
6
The reference in subsection (1) above to expenditure incurred on the provision of machinery or plant wholly and exclusively for the purposes of a trade does not include a reference to any amount falling by virtue of section 31, 61, 79 or 80 to be treated as incurred on the provision of machinery or plant wholly and exclusively for the purposes of the separate trade mentioned in that section.
38F Modifications applying to pools for long-life assets.
1
Where sections 24, 25 and 26 apply, in any of the cases mentioned in subsection (2) below, to any expenditure to which this Chapter applies, they shall so apply as if the reference in section 24(2) to 25 per cent. were a reference to 6 per cent.
2
Those cases are—
a
any case where sections 24, 25 and 26 apply in accordance with section 31, 38E, 79 or 80; and
b
any case where the machinery or plant in question is machinery or plant to which section 61 applies.
3
Where—
a
any person entitled to do so has made a Part II claim in respect of expenditure incurred on the provision of any plant or machinery,
b
that expenditure was expenditure falling to be treated for the purposes of that claim as expenditure to which this Chapter applies,
c
at any time after the making of that claim, that person or another person makes a Part II claim in respect of any capital expenditure incurred at any time (including a time before the incurring of the expenditure to which the earlier claim relates) on the provision of the same machinery or plant,
d
the expenditure to which the later claim relates would not (but for this subsection) be treated for the purposes of the later claim as expenditure to which this Chapter applies, and
e
the expenditure to which the later claim relates does not fall within paragraph (d) above by virtue of being expenditure which is prevented by section 38B from being expenditure to which this Chapter applies,
this Part shall have effect in relation to the later claim as if the expenditure to which it relates were expenditure to which this Chapter applies.
4
References in this section to the making of a Part II claim in respect of any expenditure are references to any of the following—
a
the making of a return in which that expenditure is taken into account in determining a person’s qualifying expenditure for the purposes of section 24;
b
the giving of notice of any such amendment of a return as provides for the expenditure to be so taken into account;
c
the making, in any other manner, of a claim for the expenditure to be so taken into account.
5
In subsection (4) above “return” means any return required to be made under the M63Taxes Management Act 1970 for income tax or corporation tax purposes.
6
In the case of expenditure falling within subsection (1) of section 42, this section has effect subject to subsections (3) to (7) of that section.
38G Disposal value of long-life assets.
1
If, in a case where sections 24, 25 and 26 have had effect in accordance with section 38F(1) in relation to any expenditure incurred by a person (“the charged person”)—
a
an event occurs by reason of which a disposal value of that machinery or plant is to be brought into account by the charged person in accordance with section 24,
b
the amount of the disposal value to be so brought into account would (but for this section) be less than the notional written-down value of the machinery or plant, and
c
the event is comprised in, or occurs in pursuance of, any scheme or arrangement which has avoidance as its main object, or as one of its main objects,
this Part shall have effect in relation to the charged person as if the amount of the disposal value to be brought into account were equal to the notional written-down value of the machinery or plant.
2
In this section “the notional written-down value”, in relation to any machinery or plant, means the amount which, if—
a
it were the disposal value falling to be brought into account as mentioned in subsection (1) above, and
b
the assumptions set out in subsection (3) below were made,
would give rise to neither a balancing allowance nor a balancing charge for the chargeable period for which that disposal value is to be brought into account.
3
The assumptions mentioned in subsection (2) above are—
a
subject to paragraph (b) below, that expenditure on the provision of the machinery or plant were the only expenditure ever taken into account in determining the charged person’s qualifying expenditure for the purposes of section 24;
b
that that expenditure were not, in the charged person’s case, prevented by section 38C or 38D from being expenditure to which this Chapter applies; and
c
that the full amount of every allowance to which the charged person was entitled in respect of that expenditure had been made to him.
4
The reference in subsection (1) above to avoidance is a reference to—
a
the obtaining under this Part for the charged person of an allowance or deduction or of a greater allowance or deduction, or
b
the avoidance or reduction of a charge under this Part on the charged person.
Transitional provisions
38H Transitional provisions.
1
This Chapter does not apply—
a
to any expenditure incurred before 26th November 1996; or
b
to any expenditure incurred before 1st January 2001 in pursuance of a contract entered into before 26th November 1996.
2
This Chapter does not apply to expenditure incurred by any person (“the purchaser”) on the acquisition of any long-life asset from another person (“the seller”) in a case where—
a
the seller has made a Part II claim in respect of expenditure incurred on the provision of that asset (“the seller’s expenditure”),
b
that claim is one which the seller was entitled to make,
c
the seller’s expenditure was not expenditure falling for the purposes of that claim to be treated as expenditure to which this Chapter applies, and
d
the seller’s expenditure would have fallen to be so treated if one or more of the assumptions specified in subsection (3) below were made.
3
Those assumptions are—
a
that expenditure falling within paragraph (a) or (b) of subsection (1) above is not prevented by that paragraph from being expenditure to which this Chapter applies;
b
that the seller’s expenditure was not prevented by subsection (2) above from being expenditure to which this Chapter applies; and
c
that this Chapter or, as the case may require, provision corresponding to it applied for chargeable periods ending before 26th November 1996.
4
The reference in subsection (1) above to expenditure incurred in pursuance of a contract entered into before 26th November 1996 does not, in the case of a contract varied at any time on or after that date, include a reference to so much of the expenditure incurred under that contract as exceeds the amount of the expenditure that would have been incurred if that contract had not been so varied.
5
Subsections (4) and (5) of section 38F have effect for the purposes of this section as they have effect for the purposes of that section.
Consequential amendments
3
In section 37(1), after paragraph (b) (election to treat assets as short-life assets), there shall be inserted the following paragraph—
ba
the expenditure is not expenditure to which Chapter IVA of this Part applies; and
4
For subsection (6) of section 41 (cases where the provision for separate pools for leased assets and inexpensive cars do not apply) there shall be substituted the following subsection—
6
This section does not apply—
a
to machinery or plant in relation to which sections 24, 25 and 26 apply in accordance with section 34, 79 or 80; or
b
to machinery or plant the expenditure on which is expenditure to which Chapter IVA of this Part applies.
5
In section 42(2) (rate of writing down assets leased outside the United Kingdom), after “above” there shall be inserted “
which is not expenditure to which Chapter IVA of this Part applies
”
.
6
In section 43(3) (apportionments in leasing cases), after “26,” there shall be inserted “
38E,
”
.
7
In section 46(7)(c) (leasing of ships to non-residents), for “section 41” there shall be inserted “
whichever of sections 38E and 41 is applicable
”
.
8
In section 50(3) (interpretation of Chapter V), in the definition of “normal writing down allowance”, for “section 42(2)” there shall be substituted “
sections 38F(1) and 42(2)
”
.
9
In section 77(8) (provisions that do not apply where an election is made in the case of a connected person succeeding to a trade), after “Sections” there shall be inserted “
38G,
”
.
Commencement
10
This Schedule applies in relation to chargeable periods ending on or after 26th November 1996.
SCHEDULE 15 Capital allowances: Schedule A cases etc
Repeal of existing rules
1
Section 32 of the Taxes Act 1988 (capital allowances in Schedule A cases) shall cease to have effect, both for the purposes of income tax and for the purposes of corporation tax.
Removal of restriction on set-off of losses
2
1
In section 379A(2) of the Taxes Act 1988 (cases in which Schedule A losses may be set against other income of the same year or the following year)—
a
in paragraph (a) (losses attributable to relevant capital allowances), the word “relevant” shall be omitted; and
b
the words after paragraph (b) (which define the relevant capital allowances) shall cease to have effect.
F302
In section 503 of that Act (letting of furnished holiday accommodation treated as trade), after subsection (1) there shall be inserted the following subsection—
1A
In its application by virtue of subsection (1) above, section 384 shall have effect with the omission of subsections (6) to (8) and of the words after paragraph (b) in subsection (10) (restrictions on right to set off losses attributable to capital allowances).
New general provision
F313
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F324
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Manner of making allowances and charges
5
F331
In subsection (3) of section 67 of that Act of 1990 (manner of giving allowance on thermal insulation), the words from “shall be made” to “corporation tax,” shall be omitted.
F332
After that subsection there shall be inserted the following subsection—
3A
Subsections (2) and (3) above have effect for the purposes of corporation tax only.
F343
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F356
1
In section 73 of that Act of 1990 (manner of making allowances and charges under Part II), in subsection (1), for “subsection (2)” there shall be substituted “
subsections (1A) and (2)
”
.
2
After subsection (1) of that section there shall be inserted the following subsection—
1A
Any allowance or charge made to or on any company by virtue of section 28A shall be made for the purposes of corporation tax by way of discharge or repayment of tax and, for that purpose—
a
any such allowance shall be available primarily against income chargeable to tax under Schedule A; and
b
the amount on which any such charge is to be made shall be treated as income so chargeable.
Meaning of capital expenditure
F367
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Consequential amendment of section 434E of the Taxes Act 1988
F378
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Commencement
9
1
Subject to sub-paragraph (2) below, this Schedule has effect—
a
for the purposes of income tax, in relation to the year 1997-98 and subsequent years of assessment; and
b
for the purposes of corporation tax, in relation to accounting periods ending on or after 1st April 1997.
F382
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F39SCHEDULE 16
Part I Amendments of the Capital Allowances Act 1990
Introductory
1
The M64Capital Allowances Act 1990 shall be amended in accordance with the following provisions of this Part of this Schedule.
Interpretation of Chapter VI of Part II
2
1
In subsection (2) of section 51 (definitions), after the definition of “relevant land” there shall be inserted the following definition—
“return” means (subject to section 59C(10)) any return required to be made under the M65Taxes Management Act 1970 for income tax or corporation tax purposes.
2
In subsection (5) of that section—
a
in paragraph (b), for “that expenditure is” there shall be substituted “
that person is entitled to have that expenditure
”
; and
b
in sub-paragraph (iii), for “he is required” there shall be substituted “
he would be required (disregarding section 24(7))
”
.
3
After that subsection there shall be inserted the following subsection—
5A
In this Chapter references to making a claim for an allowance in respect of any expenditure include references—
a
to making a return in which the expenditure is taken into account, as expenditure on the provision of a fixture, in determining a person’s qualifying expenditure for the purposes of section 24, and
b
to giving notice of any such amendment of a return as provides for that expenditure to be so taken into account.
4
After subsection (6) of that subsection there shall be inserted the following subsection—
6A
Where a person who has made a return becomes aware that anything contained in that return has, after being made, become incorrect by reason of—
a
the making an election under section 59B, or
b
the operation, in his case, of section 56A(1), section 56B(1) or section 59C(3),
he shall, within three months of first becoming so aware, give notice to an officer of the Board of the amendments that are necessitated in his return in the light of the matter of which he has become aware.
5
In subsection (8), paragraph (b) (expenditure under commitments made before 12th July 1984 not subject to the provisions of the Chapter) shall cease to have effect.
6
Subject to sub-paragraphs (7) and (8) below, this paragraph has effect for chargeable periods ending on or after 24th July 1996.
7
Where, but for this sub-paragraph, the latest time for the giving of a notice under subsection (6A) of section 51 would be before the end of the period of three months beginning with the day on which this Act is passed, that subsection shall have effect as if the latest time for the giving of that notice were the end of that period of three months.
8
Section 59(10) shall not apply by virtue of sub-paragraph (5) above in any case where it would not have applied apart from that sub-paragraph and the fixture is treated as having ceased to belong to the former owner before 24th July 1996.
Allowances in respect of expenditure by equipment lessors
3
1
In subsection (1) of section 53 (cases where allowance may be made in respect of expenditure of an equipment lessor), at the beginning there shall be inserted “
Subject to subsections (1A) to (1C) below,
”
.
2
In paragraph (b) of that subsection (agreement must be entered into for the purposes of a trade carried on by the equipment lessee etc.), after the word “trade”, in the first place where it occurs, there shall be inserted “
which is or is to be
”
.
3
After paragraph (b) of that subsection there shall be inserted the following paragraphs—
ba
that agreement is not an agreement for the lease of the machinery or plant for use in a dwelling-house, and
bb
the equipment lessee is within the charge to tax in the United Kingdom on the profits of, as the case may be—
i
the trade for the purposes of which he has entered into that agreement, or
ii
the leasing of the machinery or plant by him to another,
and
4
In paragraph (d) of that subsection, for the words from “the fixture” to the end of the paragraph there shall be substituted “
the equipment lessee would, by virtue of section 52, have been entitled to an allowance in respect of the expenditure, as expenditure incurred on the provision of that fixture, and
”
.
5
After that subsection there shall be inserted the following subsections—
1A
Where the condition specified in paragraph (b) of subsection (1) above is satisfied in any case by reference to an agreement entered into for the purposes of a trade which the equipment lessee has not begun to carry on at the time of the agreement, that subsection shall have effect in that case as if the reference in the words after paragraph (e) to the time at which the expenditure is incurred were a reference to whichever is the later of that time and the time when the equipment lessee begins to carry on that trade.
1B
Where the conditions set out in subsection (1C) below are satisfied in any case, subsection (1) above shall have effect in that case as if the following were omitted, that is to say—
a
in paragraph (b), the words from “for the purposes of” to “course of a trade”; and
b
paragraphs (bb) and (d).
1C
Those conditions are as follows—
a
that the machinery or plant becomes a fixture by virtue of being fixed to land that is neither a building nor part of a building;
b
that the equipment lessee has an interest in that land at the time when he takes possession of the machinery or plant under the agreement for the lease of it;
c
that, under the terms of that agreement, the equipment lessor is entitled to sever the machinery or plant, at the end of the period for which it is leased, from the land to which it is fixed at that time;
d
that, under the terms of that agreement, the machinery or plant will belong to the equipment lessor on its severance from that land in accordance with that agreement;
e
that the nature of the machinery or plant and the way in which it is fixed to land are such that its use on one set of premises does not, to any material extent, prevent it from being used, once severed, for the same purposes on a different set of premises; and
f
that the agreement for the lease of the machinery or plant is such as falls, for the purposes of the accounts of equipment lessors who are companies incorporated in a part of the United Kingdom, to be treated, in accordance with normal accountancy practice, as an operating lease.
6
Sub-paragraphs (1), (2) and (5) above have effect for chargeable periods ending on or after the day on which this Act is passed in relation to any case in which the agreement for the lease of the machinery or plant is entered into on or after that day.
7
Sub-paragraphs (3) and (4) above have effect for chargeable periods ending on or after 24th July 1996 in relation to any case in which the expenditure incurred by the equipment lessor is expenditure incurred on or after that date.
Fixtures in respect of which more than one person gets an allowance
4
1
After section 56 there shall be inserted the following sections—
56A Restriction on duplicate allowances under sections 54 and 56.
1
Where the relevant conditions are satisfied in relation to any case in which the provisions of section 54(1) or section 56 would (but for this section) be treated as applying, those provisions shall not apply in that case, and shall be treated as never having applied in that case.
2
The relevant conditions are as follows—
a
that an interest in any land in which the whole or any part of the relevant land is comprised is held by any person immediately after the relevant time;
b
that that interest is not the one which—
i
in a case falling within section 54(1)(a), is acquired by the purchaser; or
ii
in a case falling within section 56(a), is acquired by the lessee in consequence of the grant of the lease;
c
that the person with that interest is a person falling to be treated for the purposes of this Part as a person to whom the fixture belonged immediately before the relevant time in consequence of the incurring by him of expenditure on the provision of the fixture;
d
that that person does not fall to be so treated by virtue of section 154;
e
that that person is entitled to an allowance in respect of that expenditure and makes or has made a claim for that allowance; and
f
that the relevant time is on or after 24th July 1996.
3
In this section “the relevant time” means, as the case may be—
a
the time when the purchaser acquires his interest in the relevant land; or
b
the time of the grant of the lease.
56B Fixtures on which a former owner had an allowance.
1
Where—
a
any machinery or plant falls to be treated for the purposes of this Part as a fixture belonging to any person (“the new claimant”) in consequence of his incurring capital expenditure on the provision of that machinery or plant, and
b
the requirements of subsection (2) below are satisfied in the case of that machinery or plant,
so much (if any) of that expenditure as exceeds the maximum allowable amount shall be disregarded for the purposes of this Part or, as the case may be, shall be taken to be expenditure that should never have been taken into account for those purposes.
2
The requirements of this subsection are satisfied in the case of any machinery or plant where—
a
it falls or has fallen, otherwise than by virtue of section 154, to be treated as having belonged at a relevant earlier time to any person (“the prior claimant”) in consequence of his incurring expenditure (“the other expenditure”) which is not the expenditure mentioned in subsection (1)(a) above;
b
the prior claimant, as a consequence of having made a claim for an allowance in respect of the other expenditure, is or has been required to bring a disposal value of the machinery or plant into account; and
c
the event by reason of which that disposal value has been or is to be brought into account is an event occurring on or after 24th July 1996.
3
For the purposes of this section the new claimant and the prior claimant may be the same person.
4
Subject to subsection (5) below, the maximum allowable amount for the purposes of this section is the sum of—
a
the disposal value of the machinery or plant which the prior claimant has been or is required to bring into account; and
b
so much (if any) of the expenditure mentioned in subsection (1)(a) above as is deemed by virtue of section 66 (installation costs) to be expenditure on the provision of the machinery or plant.
5
Subsection (4) above shall have effect where the requirements of subsection (2) above are satisfied by reference to more than one such event as is mentioned in subsection (2)(c) above as if they were satisfied by reference only to the most recent of those events.
6
In this section “a relevant earlier time” means a time which—
a
is before the time which is taken for the purposes of this Part to be the earliest time when the machinery or plant belonged to the new claimant in consequence of his incurring the expenditure mentioned in subsection (1)(a) above; and
b
does not fall to be disregarded under subsection (7) below.
7
For the purposes of subsection (6) above a time must be disregarded if—
a
in consequence of any sale of the machinery or plant, it has ceased, at any time after that time and before the time mentioned in paragraph (a) of that subsection, to belong to any person;
b
that person and the purchaser were not connected with each other, within the terms of section 839 of the principal Act, at the time of sale; and
c
the sale was not a sale of the machinery or plant as a fixture.
56C Fixtures on which an allowance has been given under Part I.
1
Where—
a
a person has at any time made a claim for an allowance to which he is entitled under Part I in respect of expenditure incurred on the construction of a building or structure,
b
that expenditure was or included expenditure on the provision of machinery or plant,
c
that person has made a transfer of the relevant interest in the building or structure (“the relevant transfer”),
d
the person to whom the relevant transfer is made, or any person to whom for the purposes of this Part the machinery or plant is subsequently treated as belonging, makes a claim for an allowance under this Part, and
e
that claim is for an allowance in respect of capital expenditure incurred, at a time on or after 24th July 1996 when it is a fixture in the building or structure, on the provision of the machinery or plant,
the amount taken for the purposes of the claim mentioned in paragraph (d) above to have been incurred on the provision of the fixture shall not exceed the relevant amount.
2
In subsection (1) above “the relevant amount” means the amount equal, on the relevant assumption, to the portion of the consideration for the relevant transfer which would have been attributable to the fixture.
3
The relevant assumption for the purposes of subsection (2) above is that the relevant transfer was a sale of the relevant interest in the building or structure for the amount which immediately after that transfer represented the residue of the expenditure incurred on the construction of the building or structure.
4
Expressions used both in this section and in Part I have the same meanings in this section as in that Part.
56D Fixtures on which an allowance has been given under Part VII.
1
Where—
a
a person has at any time made a claim for an allowance to which he is entitled under Part VII in respect of any allowable scientific research expenditure of a capital nature (“the Part VII expenditure”),
b
the Part VII expenditure was or included expenditure on the provision of machinery or plant,
c
an asset representing the whole or any part of the Part VII expenditure (“the Part VII asset”) has ceased, on any occasion, to belong to that person,
d
the person who acquired the Part VII asset on that occasion, or any person to whom for the purposes of this Part the machinery or plant is subsequently treated as belonging, makes a claim for an allowance under this Part, and
e
that claim is for an allowance in respect of capital expenditure incurred, at a time on or after 24th July 1996 when it is a fixture, on the provision of the machinery or plant,
the amount taken for the purposes of the claim mentioned in paragraph (d) above to have been incurred on the provision of the fixture shall not exceed the relevant amount.
2
In subsection (1) above “the relevant amount” means the amount equal, on the relevant assumption, to the portion of the consideration for the disposal of the Part VII asset which would have been attributable to the fixture.
3
The relevant assumption for the purposes of subsection (2) above is that the occasion mentioned in subsection (1)(c) above was a disposal of the Part VII asset for the amount equal to whichever is the smaller of—
a
the disposal value of the asset on that occasion; and
b
so much of the Part VII expenditure as related to the provision of the Part VII asset.
4
Expressions used both in subsection (1) above and in Part VII have the same meanings in that subsection as in that Part.
2
In section 54(1)—
a
paragraph (c) (cases where another person has had an entitlement), and the word “and” immediately preceding it, shall cease to have effect; and
b
in the words after that paragraph, for “section 57” there shall be substituted “
the following provisions of this Chapter
”
.
3
In section 56—
a
paragraph (c) (cases where another person has had an entitlement) shall cease to have effect;
b
in paragraph (d), for “that time” there shall be substituted “
the time of the grant of the lease
”
; and
c
in the words after paragraph (d), for “section 57” there shall be substituted “
the following provisions of this Chapter
”
.
4
This paragraph has effect, subject to sub-paragraphs (5) and (6) below, for chargeable periods ending on or after 24th July 1996.
5
Sub-paragraph (2)(a) above does not apply where the purchaser acquired the relevant interest before 24th July 1996.
6
Sub-paragraph (3)(a) above does not apply where the lease was granted before 24th July 1996.
Disposal value in avoidance cases
5
1
In subsection (1) of section 59 (disposal value of fixtures determined in accordance with subsections (2) to (6)), after “determined” there shall be inserted “
(subject to sections 59A and 59B)
”
.
2
In Chapter VI of Part II, after that section there shall be inserted the following section—
59A Disposal values in avoidance cases.
1
If, in a case where machinery or plant has been treated by virtue of this Chapter as belonging to any person (“the charged person”) in consequence of his incurring any expenditure—
a
an event occurs by reason of which a disposal value of that machinery or plant is to be brought into account by the charged person in accordance with section 24,
b
the amount of the disposal value to be so brought into account would (but for this section) be less than the notional written-down value of the machinery or plant, and
c
the event is comprised in, or occurs in pursuance of, any scheme or arrangement which has avoidance as its main object, or as one of its main objects,
this Part shall have effect in relation to the charged person as if the amount of the disposal value to be brought into account were equal to the notional written-down value of the machinery or plant.
2
In this section “the notional written-down value”, in relation to any machinery or plant, means the amount which, if—
a
it were the disposal value falling to be brought into account as mentioned in subsection (1) above, and
b
the assumptions set out in subsection (3) below were made,
would give rise to neither a balancing allowance nor a balancing charge for the chargeable period for which that disposal value is to be brought into account.
3
Those assumptions are—
a
that expenditure on the provision of the machinery or plant were the only expenditure ever taken into account in determining the charged person’s qualifying expenditure for the purposes of section 24; and
b
that the full amount of every allowance to which that person was entitled in respect of that expenditure had been made to him.
4
The reference in subsection (1) above to avoidance is a reference to—
a
the obtaining under this Part for the charged person of an allowance or deduction or of a greater allowance or deduction, or
b
the avoidance or reduction of a charge under this Part on the charged person.
3
This paragraph has effect for chargeable periods ending on or after 24th July 1996 wherever the time of the occurrence of the event by virtue of which the disposal value falls to be brought into account is a time on or after that date.
Apportionment of expenditure by election
6
1
In Chapter VI of Part II, after the section 59A inserted by paragraph 5 above there shall be inserted the following sections—
59B Election to use alternative apportionment.
1
This section applies where, in a case in which a disposal value of a fixture is required to be brought into account by the former owner, the price referred to in subsection (1) of section 59 falls to be determined in accordance with subsection (2) or (3) of that section.
2
Subject to sections 56C, 56D and 59A and to the following provisions of this section, the purchaser and the former owner may jointly, by an election under this section, fix the amount which, for all the purposes of this Part, is to be taken—
a
in a case to which subsection (2) of section 59 applies, to be the portion of the sale price referred to in that subsection; or
b
in a case to which subsection (3) of that section applies, to be the portion of the capital sum referred to in section 55(1)(c) that falls to be treated as expenditure by the purchaser on the provision of the fixture.
3
The amount fixed by an election under this section shall not exceed either of the following amounts, that is to say—
a
the amount of the capital expenditure which was taken for the purposes of this Part to have been incurred by the former owner on the provision of the fixture or of the machinery or plant which became the fixture; and
b
the actual amount of the sale price or capital sum referred to in section 59(2) or, as the case may be, section 55(1)(c).
4
Where the portion of any amount which is to be taken as attributable to the provision of a fixture is fixed by an election under this section—
a
the remainder (if any) of that amount shall be taken for the purposes of this Act to be expenditure attributable to the acquisition of the property which is not the fixture but is acquired for that amount;
b
if there is no remainder, the expenditure so attributable shall be taken for those purposes to be nil.
5
An apportionment by virtue of an election under this section shall have effect in place of any apportionment that would otherwise be made under section 150.
6
In this section—
“the former owner” shall be construed in accordance with subsection (1) of section 59; and
“the purchaser” means the purchaser or lessee referred to in subsection (2) or, as the case may be, subsection (3) of that section.
59C Elections under section 59B: supplemental.
1
A section 59B election must be made by notice given to an officer of the Board.
2
A notice containing a section 59B election (in addition to specifying the amount fixed by the election) must contain the following information—
a
the name of each of the persons making the election;
b
information sufficient to identify the machinery or plant;
c
information sufficient to identify the relevant land;
d
particulars of the interest acquired by the purchaser or, as the case may be, of the lease granted to him; and
e
the tax district references of each of the persons making the election.
3
The amount specified as the amount fixed by a section 59B election must be quantified at the time when the election is made; but if, as a result of circumstances arising after the making of the election, the maximum amount which could be fixed by the election is reduced to an amount which is less than the amount specified in the election, that election shall be deemed for the purposes of this Act to have specified the amount to which the maximum is reduced.
4
A section 59B election shall not be made more than two years after the time when the purchaser acquires the interest in question or, as the case may be, is granted the lease in question.
5
Where a person who has joined in making a section 59B election subsequently makes a return for his relevant period, a copy of the notice containing the election must accompany the return.
6
A section 59B election shall be irrevocable once made.
7
Nothing in section 42 of, or Schedule 1A to, the M66Taxes Management Act 1970 (claims in returns and claims not included in returns) shall apply to a section 59B election.
8
Where any question relating to a section 59B election falls to be determined by any body of Commissioners for the purposes of any proceedings before them—
a
each of the persons who has joined in making the election shall be entitled to appear and be heard by the Commissioners, or to make representations to them in writing;
b
the Commissioners shall determine that question separately from any other questions in those proceedings; and
c
their determination on that question shall have effect as if made in an appeal to which each of those persons was a party.
9
In this section—
“relevant period”, in relation to any person who has joined in making a section 59B election, means the period for which a return is made by that person which is the first such period in which the election has an effect in his case for the purposes of income tax or corporation tax; and
“a section 59B election” means an election under section 59B;
and subsection (6) of section 59B applies for the purposes of this section as it applies for the purposes of that section.
10
In the case of an election for the purposes of a trade, profession or business carried on by persons in partnership, the references in this section to a return shall be construed, in relation to those persons, as references to a return under section 12AA of the M67Taxes Management Act 1970 (partnership returns).
2
This paragraph has effect for chargeable periods ending on or after the day on which this Act is passed wherever the time when the fixture in question is or would be treated as ceasing to belong to the former owner is a time on or after that day.
Prohibition of double allowances
7
1
In section 147 (exclusion of double allowances), after subsection (2) there shall be inserted the following subsections—
2A
Subject to subsection (2B) below, where—
a
a person entitled to do so has at any time made a claim for an allowance under any of the preceding Parts of this Act, other than Part II, and
b
that claim is for an allowance in respect of capital expenditure relating, in whole or in part, to the construction, acquisition or provision of an asset,
no capital expenditure (whenever incurred) relating to the provision of that asset shall, by virtue of Chapter VI of Part II, be brought into account at any time after that time by any person at all.
2B
Subsection (2A) above shall not prevent capital expenditure from being brought into account by virtue of Chapter VI of Part II where—
a
the only claim made under a provision of this Act not contained in Part II is a claim under Part I or Part VII; and
b
section 56C or 56D would apply by reference to that claim in relation to any claim for that expenditure to be so brought into account.
2C
Where capital expenditure relating to the provision of any asset has at any time been brought into account by virtue of Chapter VI of Part II by any person entitled to do so, no capital expenditure (whenever incurred) relating to the construction, acquisition or provision of that asset shall, at any time after that time, be the subject of a claim made, by any person at all, for an allowance under any of the preceding Parts of this Act other than Part II.
2D
For the purposes of subsections (2A) to (2C) above a person shall be taken to bring an amount of capital expenditure into account by virtue of Chapter VI of Part II if—
a
he makes a claim for an allowance in respect of that expenditure, as expenditure on the provision of a fixture within the meaning of that Chapter,
b
he makes a return in which that expenditure is taken into account, as expenditure on the provision of such a fixture, in determining his qualifying expenditure for the purpose of an allowance or charge under section 24, or
c
he gives notice of any such amendment of a return as provides for that expenditure to be taken into account as mentioned in paragraph (b) above.
2
In subsection (3) of that section after the definition of “capital expenditure” there shall be inserted
and
“return” means any return required to be made under the M68Taxes Management Act 1970 for income tax or corporation tax purposes,
3
This paragraph has effect for chargeable periods ending on or after 24th July 1996 but shall not be taken to prevent any allowance from being made, or any amount from being taken into account, in respect of expenditure incurred before that date.
Construction of amendments
8
Notwithstanding anything in subsection (1) of section 163 of the M69Capital Allowances Act 1990 (continuity of the law), subsection (2) of that section (under which references in that Act to provisions of that Act include references to repealed enactments) applies for construing that Act as amended by this Schedule as it applies for construing the provisions of that Act as originally enacted.
Part II Consequential amendment of the Taxes Management Act 1970
9
In the second column of the Table in section 98 of the M70Taxes Management Act 1970 (penalties in respect of certain information provisions), in the entry relating to sections 23(2), 33F(4), 48 and 49(2) of the M71Capital Allowances Act 1990, for “and 49(2)” there shall be substituted “
, 49(2) and 51(6A)
”
.
SCHEDULE 17 Chargeable gains: re-investment relief
Introductory
1
The M57Taxation of Chargeable Gains Act 1992 shall be amended in accordance with the provisions of this Schedule.
Qualifying investments
2
1
In subsection (8) of section 164A (cases where eligible shares are not a qualifying investment), after “in a qualifying company shall” there shall be inserted “
, subject to subsection (8A) below,
”
.
2
After that subsection there shall be inserted the following subsections—
8A
Where the eligible shares acquired by any person in a qualifying company are shares which he acquires by their being issued to him, his acquisition of the shares shall not be regarded as the acquisition of a qualifying investment unless the qualifying company, or a qualifying subsidiary of that company, is intending to employ the money raised by the issue of the shares wholly for the purposes of a qualifying trade carried on by it.
8B
For the purposes of subsection (8A) above—
a
the purposes of a trade include the purpose of preparing for the carrying on of the trade; and
b
“qualifying subsidiary” has the same meaning as in section 164G.
Loss of relief
3
1
In subsection (1) of section 164F (failure of conditions of relief), after “or this section” there shall be inserted “
or section 164FA
”
.
2
After that section there shall be inserted the following section—
164FA Loss of relief in cases where shares acquired on being issued.
1
Subsection (5) below applies in any case falling within any of subsections (2) to (4) below which is a case where—
a
a person has acquired any eligible shares in a qualifying company (“the acquired holding”) for a consideration which is treated as reduced, under section 164A or 164F or this section, by any amount (“the held-over gain”); and
b
that person acquired those shares by their being issued to him.
2
A case falls within this subsection if—
a
the money raised by the issue of the shares comprised in the acquired holding was, at the time when those shares were acquired, intended to be employed for the purposes of a qualifying trade then being carried on; and
b
that money has not been wholly employed for permissible purposes by the end of the initial utilisation period.
3
A case falls within this subsection if—
a
the money raised by the issue of the shares comprised in the acquired holding was, at the time when those shares were acquired, intended to be employed for the purposes of a qualifying trade not then being carried on;
b
that trade begins to be carried on before the end of the period of 2 years from that time; and
c
that money (apart from any part of it wholly employed for permissible purposes within the initial utilisation period) has not been wholly employed for the purposes of that trade by the end of the period of 1 year from the time when that trade begins to be carried on (“the first trading year”).
4
A case falls within this subsection if—
a
the money raised by the issue of the shares comprised in the acquired holding was, at the time when those shares were acquired, intended to be employed for the purposes of a qualifying trade not then being carried on;
b
that trade does not begin to be carried on before the end of the period of 2 years from that time; and
c
that money has not been wholly employed for permissible purposes by the end of the initial utilisation period.
5
In a case in which this subsection applies, but subject to the following provisions of this section, a chargeable gain equal to the appropriate portion of the held-over gain shall be treated as accruing to the person mentioned in subsection (1) above immediately before the utilisation time; and in this subsection “the utilisation time” means—
a
in relation to a case falling within subsection (2) above, the end of the initial utilisation period;
b
in relation to a case falling within subsection (3) above, the end of the first trading year; and
c
in relation to a case falling within subsection (4) above, the end of the period of 2 years mentioned in that subsection.
6
If, in a case in which subsection (5) above applies, part (but only part) of the money raised by the issue of the shares comprised in the acquired holding has been permissibly employed, this Chapter shall have effect in relation to that holding—
a
as if it were two separate holdings consisting of—
i
a holding from which that part of the money was raised; and
ii
a holding from which the remainder was raised;
and
b
as if its value were to be apportioned accordingly between those two holdings;
but nothing in this subsection shall require any money whose use is disregarded by virtue of subsection (8)(e) below to be treated as raised by a different holding.
7
For the purposes of subsection (6) above a part of the money raised by the issue of the shares comprised in the acquired holding shall be taken to have been permissibly employed if—
a
in a case falling within subsection (2) or (4) above, that part has been wholly employed for permissible purposes within the initial utilisation period; or
b
in a case falling within subsection (3) above that part has been wholly employed—
i
for permissible purposes within the initial utilisation period, or
ii
for the purposes of the trade mentioned in that subsection before the end of the first trading year.
8
For the purposes of this section—
a
the appropriate portion of the held-over gain is so much, if any, of that gain as has not already been charged on any disposal or under section 164F or this section;
b
“the initial utilisation period” means the period of 1 year from the time when the acquired holding was acquired;
c
“permissible purposes”, in relation to a company, means the purposes of any qualifying trade carried on by it or by any of its qualifying subsidiaries;
d
“qualifying subsidiary” has the same meaning as in section 164G;
e
money shall not be treated as employed otherwise than wholly for particular purposes if the only amount employed for other purposes is an amount which is not a significant amount; and
f
the purposes of a qualifying trade shall be taken to include the purpose of preparing for the carrying on of the trade.
9
Subsections (4) to (5) and (10A) to (11) of section 164F shall apply for the purposes of this section as they apply for the purposes of that section, but—
a
subsection (5) of that section shall so apply—
i
with the omission of paragraphs (e) to (g), and
ii
as if the reference in paragraph (d) to any charge under subsection (2) of that section were a reference to any charge under subsection (5) of this section;
and
b
subsection (10A) of that section shall so apply as if the reference to subsection (2) of that section were a reference to subsection (5) of this section.
Meaning of “qualifying company”
4
1
For paragraphs (b) and (c) of subsection (2) of section 164G (company must be of one of the given descriptions) there shall be substituted
or
aa
an unquoted company which is the parent company of a trading group.
2
For subsections (4) and (5) of that section (meaning of “qualifying subsidiary”) there shall be substituted the following subsections—
4
In this section “qualifying subsidiary”, in relation to a company (“the holding company”), means any company which is a member of a group of companies of which the holding company is the principal company.
4A
For the purposes of this section a company is the parent company of a trading group if—
a
it is the principal company of a group of companies; and
b
the requirements of subsection (4B) below are fulfilled by what would be the business of the company and its qualifying subsidiaries if all the activities, taken together, of the company and its qualifying subsidiaries were regarded as one business.
4B
A business fulfils the requirements of this subsection if—
a
it is carried on wholly or mainly in the United Kingdom; and
b
neither the business nor a substantial part of it consists in, or in either of, the following, that is to say—
i
activities falling within section 164I(2) but not within subsection (4C) below; and
ii
activities carried on otherwise than in the course of a trade.
4C
The activities falling within this subsection are—
a
the receiving of royalties or licence fees in circumstances where the requirements mentioned in paragraphs (a) and (b) of section 164I(5) or (6) are satisfied in relation to the company receiving them;
b
the letting of ships, other than oil rigs or pleasure craft, on charter in circumstances where the requirements mentioned in paragraphs (a) to (d) of section 164I(7) are satisfied in relation to the company so letting them.
4D
Activities of a company or of any of its qualifying subsidiaries shall be disregarded for the purposes of subsections (4A) to (4C) above to the extent that they consist in—
a
the holding of shares in or securities of, or the making of loans to, one or more of the company’s qualifying subsidiaries; or
b
the holding and managing of property used by the company or any of its qualifying subsidiaries for the purposes of—
i
research and development from which it is intended that a qualifying trade to be carried on by the company or any of its qualifying subsidiaries will be derived; or
ii
one or more qualifying trades so carried on.
4E
Activities of a qualifying subsidiary of a company shall also be disregarded for the purposes of subsections (4A) to (4C) above to the extent that they consist in—
a
the making of loans to the company; or
b
in the case of a mainly trading subsidiary, activities carried on in pursuance of its insignificant purposes (within the meaning given by subsection (4F) below).
4F
In subsection (4E) above “mainly trading subsidiary” means a qualifying subsidiary which, apart from purposes (“its insignificant purposes”) capable of having no significant effect (other than in relation to incidental matters) on the extent of its activities, exists wholly for the purpose of carrying on one or more qualifying trades.
Meaning of “qualifying trade”
5
1
In paragraph (a) of subsection (1) of section 164I (meaning of “qualifying trade”), after “complies with the requirements of this section” there shall be inserted “
and is carried on wholly or mainly in the United Kingdom
”
.
2
In paragraph (b) of that subsection—
a
after the words “the carrying on” (where they first occur) there shall be inserted “
, wholly or mainly in the United Kingdom,
”
; and
b
after “complying with those requirements” there shall be inserted “
, and to be carried on wholly or mainly in the United Kingdom,
”
.
Interpretation of Chapter IA of Part V
6
1
For subsection (2) of section 164N (application of section 170 for the interpretation of sections 164G and 164I) there shall be substituted the following subsection—
2
Section 170 shall apply for the interpretation of sections 164G and 164I as it would apply for the interpretation of sections 171 to 181 if section 170(2)(a) together with the words “(although resident in the United Kingdom)” in section 170(9)(b) were omitted.
2
In section 164N (interpretation of Chapter IA), after subsection (4) there shall be inserted the following subsection—
5
For the purposes of this Chapter, any allotment of shares before their issue shall be disregarded in determining whether and when a person acquires shares by their issue to him.
Commencement
7
1
This Schedule—
a
applies in relation to shares acquired after 26th November 1996; and
b
subject to sub-paragraph (3) below, applies after 26th November 1996 in relation to shares that fall within sub-paragraph (2) below.
2
Shares fall within this sub-paragraph if—
a
they were acquired by a person at any time on or before 26th November 1996;
b
they were held by him throughout the period beginning with that time and ending with 26th November 1996; and
c
at all times in that period they were, for the purposes of Chapter IA of Part V of the M58Taxation of Chargeable Gains Act 1992, eligible shares in a qualifying company.
3
The application of the preceding provisions of this Schedule in relation to any shares falling within sub-paragraph (2) above shall not prevent those shares from being (or having been) shares in a qualifying company at any relevant time when those shares would have been shares in such a company if this Schedule had not been enacted.
4
For the purposes of sub-paragraph (3) above a time is a relevant time in relation to any shares falling within sub-paragraph (2) above if it is a time after 26th November 1996 and within the period of 3 years after the acquisition of the shares.
C8SCHEDULE 18Repeals
S. 76(7) amendment to earlier affecting provision S.I. 1992/1655, reg. 4 (19.3.1997) by The Friendly Societies (Modification of the Corporation Tax Acts) (Amendment) Regulations 1997 (S.I. 1997/471), reg. 4
Part I Hydrocarbon Oil Duty
Chapter | Short title | Extent of repeal |
|---|---|---|
1979 c. 5. | The Hydrocarbon Oil Duties Act 1979. | In section 11(2), the definition of “gas oil” and the word “and” immediately preceding that definition. |
In section 27(1), the word “and” immediately following the definition of “road fuel gas”. |
The power in subsection (10) of section 7 of this Act applies in relation to these repeals as it applies in relation to the provisions of that section.
Part II Gaming Duty
Chapter | Short title | Extent of repeal |
|---|---|---|
1979 c. 2. | The Customs and Excise Management Act 1979. | In section 1(1)— (a) the word “and” at the end of paragraph (c) of the definition of “the revenue trade provisions of the customs and excise Acts”; and (b) the word “or” at the end of paragraph (a)(ia) of the definition of “revenue trader”. |
1981 c. 63. | The Betting and Gaming Duties Act 1981. | Sections 13 to 16. |
In section 27, the words “15 or” and “paragraph 7 of Schedule 2,”. | ||
In section 31, the words “gaming licences or”. | ||
In section 32— (a) in subsection (2), the words “Subject to subsection (3) below,”; and (b) subsection (3). | ||
In section 35(3), paragraphs (a) and (c) and the words after paragraph (d). Schedule 2. | ||
1984 c. 60. | The Police and Criminal Evidence Act 1984. | In Schedule 6, paragraph 39(a). |
1985 c. 66. | The Bankruptcy (Scotland) Act 1985. | In paragraph 2(3) of Schedule 3, paragraph (c) and the word “or” immediately preceding it. |
1986 c. 45. | The Insolvency Act 1986. | In paragraph 5 of Schedule 6, paragraph (c) and the word “or” immediately preceding it. |
1988 c. 39. | The Finance Act 1988. | In section 12(4), the words “and paragraph 7 of Schedule 2” and the word “each”. |
S.I. 1989/2405 (N.I. 19). | The Insolvency (Northern Ireland) Order 1989. | In paragraph 5 of Schedule 4, paragraph (c) and the word “or” immediately preceding it. |
1991 c. 31. | The Finance Act 1991. | Section 6. |
1994 c. 9. | The Finance Act 1994. | In section 12(7)(b), the words “, paragraph 7(3) of Schedule 2”. |
In Schedule 4, paragraph 63. |
1
The repeals in the Bankruptcy (Scotland) Act 1985, the Insolvency Act 1986 and the Insolvency (Northern Ireland) Order 1989 shall not apply in relation to any amount due in respect of duty chargeable for a period beginning before 1st October 1997.
2
The other repeals have effect in relation to any gaming on or after 1st October 1997.
Part III Vehicle Excise and Registration: Exempt vehicles
Chapter | Short title | Extent of repeal |
|---|---|---|
1994 c. 22. | The Vehicle Excise and Registration Act 1994. | In Schedule 2, paragraph 20(4). |
The power in paragraph 9 of Schedule 3 to this Act applies in relation to this repeal as it applies in relation to the provisions of that Schedule.
Part IV Value Added Tax
Chapter | Short title | Extent of repeal |
|---|---|---|
1994 c. 23. | The Value Added Tax Act 1994. | In Schedule 1, in paragraph 2— (a) in sub-paragraph (2)(b), the words from “which should properly” to “described in the direction”; (b) paragraph (d) of sub-paragraph (2) and the word “and” immediately preceding it; and (c) in sub-paragraph (4), the word “properly”. |
These repeals have effect in relation to the making of directions on or after the day on which this Act is passed.
Chapter | Short title | Extent of repeal |
|---|---|---|
1994 c. 23. | The Value Added Tax Act 1994. | In Schedule 10, paragraphs 2(3A) and 3(8A). |
These repeals have effect in accordance with section 37(1) of this Act.
Chapter | Short title | Extent of repeal |
|---|---|---|
1994 c. 23. | The Value Added Tax Act 1994. | In section 36(4), paragraph (b) and the word “and” immediately preceding it. In Schedule 13, paragraph 9(1). |
These repeals have effect in accordance with section 39 of this Act.
Part V Indirect taxes
Sch. 18 Pt. V(2) note power fully exercised (9.6.1997): 1.7.1997 appointed by S.I. 1997/1433, art. 2
Chapter | Short title | Extent of repeal |
|---|---|---|
1994 c. 9. | The Finance Act 1994. | In Schedule 6, in paragraph 9(2), the words after paragraph (b). |
1996 c. 8. | The Finance Act 1996. | In section 197(2), the word “and” at the end of paragraph (c). |
The repeal in the Finance Act 1994 has effect in accordance with paragraph 8 of Schedule 5 to this Act.
Chapter | Short title | Extent of repeal |
|---|---|---|
1979 c. 2. | The Customs and Excise Management Act 1979. | In section 117— (a) subsections (5) to (7A); (b) in subsection (9), paragraphs (c) to (f); and (c) subsection (10). |
1981 c. 35. | The Finance Act 1981. | In Schedule 8, paragraph 8. |
1981 c. 63. | The Betting and Gaming Duties Act 1981. | Sections 28 and 29. |
1986 c. 41. | The Finance Act 1986. | In Schedule 4, paragraphs 8 and 9. |
1987 c. 18. | The Debtors (Scotland) Act 1987. | In Schedule 6, paragraph 23. |
1992 c. 48. | The Finance (No. 2) Act 1992. | In paragraph 5(a) of Schedule 2, the words “and (5)”. |
1994 c. 9. | The Finance Act 1994. | In section 18— (a) in subsection (2), in paragraph (a), the words “, not being an amount in relation to which subsection (4) below applies,” and the word “and”; (b) paragraph (b) of that subsection; and (c) subsection (4). |
In Schedule 7, paragraph 7(7) to (12). | ||
1994 c. 23. | The Value Added Tax Act 1994. | In Schedule 11, paragraph 5(4) to (10). |
1995 c. 4. | The Finance Act 1995. | In Schedule 5, paragraph 9. |
1996 c. 8. | The Finance Act 1996. | In Schedule 5, paragraph 13. |
P5These repeals come into force on such day as the Commissioners of Customs and Excise may by order made by statutory instrument appoint, and different days may be appointed for different purposes.
Part VI Income Tax, Corporation Tax and Capital Gains Tax
Sch. 18 Pt. VI(3) extended (31.7.1998) by 1997 c. 58, s. 4(7) (with s. 3(3))
Chapter | Short title | Extent of repeal |
|---|---|---|
1988 c. 1. | The Income and Corporation Taxes Act 1988. | In section 832(1), the definition of “additional rate”. |
1988 c. 39. | The Finance Act 1988. | Section 24(4). |
These repeals have effect in relation to the year 1997-98 and subsequent years of assessment.
Chapter | Short title | Extent of repeal |
|---|---|---|
1970 c. 9. | The Taxes Management Act 1970. | In section 42(7)(a) (as it has effect by virtue of section 196 of the Finance Act 1994), the words “120(2),”. |
1988 c. 1. | The Income and Corporation Taxes Act 1988. | In section 1A(2)(a)(ii), the words “or 120”. |
In section 3, paragraph (c) and the word “or” immediately preceding it. | ||
Section 74(1)(q). | ||
In section 120— (a) in subsection (1), the words from “and, subject to” onwards; (b) subsections (2) to (4); and (c) in subsection (5), paragraph (c) and the word “and” immediately preceding it. | ||
In section 348(2), paragraph (b) and the word “or” immediately preceding it. | ||
In section 349(1), paragraph (c) and the word “or” immediately preceding it. | ||
Section 387(3)(c). | ||
In section 821(3), paragraph (c) and the word “and” immediately preceding it. |
These repeals have effect in relation to payments made on or after 6th April 1997.
Chapter | Short title | Extent of repeal |
|---|---|---|
1970 c. 9. | The Taxes Management Act 1970. | In section 98, in the Table— (a) in the first column, the entry relating to section 181(1) of the Taxes Act 1988; and (b) in the second column, the entry relating to section 180(1) of that Act. |
1988 c. 1. | The Income and Corporation Taxes Act 1988. | Sections 169 to 184. |
Schedule 8. | ||
1988 c. 39. | The Finance Act 1988. | In Schedule 13, paragraph 4. |
1989 c. 26. | The Finance Act 1989. | Section 42(4). |
Section 61. | ||
Schedule 4. | ||
In Schedule 12, paragraph 18. | ||
1989 c. 40. | The Companies Act 1989. | In Schedule 10, paragraph 38(2). |
S.I. 1990/593 (N.I. 5). | The Companies (Northern Ireland) Order 1990. | In Schedule 10, paragraph 30(1). |
1991 c. 31. | The Finance Act 1991. | Section 37. |
1994 c. 9. | The Finance Act 1994. | Sections 98 and 99. |
1995 c. 4. | The Finance Act 1995. | Section 136. |
Section 137(1) and (6). |
1
These repeals have effect (subject to Notes 2 and 3 below) in accordance with section 61(2) and (3) of this Act.
2
These repeals do not affect the operation of any of the repealed provisions, or prevent the exercise of any power under those provisions, in relation to profit periods beginning before 1st January 2000 or for purposes connected with, or with the doing or not doing of anything in or in relation to, any such periods.
3
The repeal of Schedule 8 to the Taxes Act 1988 does not affect the application of any of the provisions of paragraph 7 of that Schedule by any of—
a
section 360A(5) and (7) of that Act;
F40b
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
c
paragraph 16(4) and (6) of Schedule 5 to the Finance Act 1989.
Chapter | Short title | Extent of repeal |
|---|---|---|
1988 c. 1. | The Income and Corporation Taxes Act 1988. | In section 200A(3)(b), the word “either” before sub-paragraph (i). |
This repeal has effect in accordance with section 63(3) of this Act.
Chapter | Short title | Extent of repeal |
|---|---|---|
1988 c. 1. | The Income and Corporation Taxes Act 1988. | In section 617(3), the words “and (5)”. |
This repeal has effect in accordance with section 65 of this Act.
Chapter | Short title | Extent of repeal |
|---|---|---|
1988 c. 1. | The Income and Corporation Taxes Act 1988. | In section 76(2A)(b), sub-paragraph (iv) and the word “and” immediately preceding it. |
Section 434B(2). | ||
In section 490(2), the words from “but if” onwards. | ||
1991 c. 31. | The Finance Act 1991. | In Schedule 7, paragraph 16(3) and (4). |
1995 c. 4. | The Finance Act 1995. | In Schedule 8, paragraph 21(1). |
1996 c. 8. | The Finance Act 1996. | Section 165(3). |
These repeals have effect in relation to accounting periods beginning after 5th March 1997.
Chapter | Short title | Extent of repeal |
|---|---|---|
1988 c. 1. | The Income and Corporation Taxes Act 1988. | In section 118G(5)(a), the words “or applied in defraying expenses of the trustees”. In section 231(1), the words “95(1)(b),”. |
In section 481(4A), the words “or applied in defraying expenses of the trustees”. | ||
In section 686(2), paragraph (d) and the word “and” immediately preceding it. | ||
1992 c. 12. | The Taxation of Chargeable Gains Act 1992. | In section 5(2)— (a) paragraph (c); and (b) in paragraph (d), the words “or applied as mentioned in paragraph (c) above”. |
1
Subject to Note 2 below, these repeals have effect in accordance with paragraph 12(4) of Schedule 7 to this Act.
2
The repeal in section 231(1) of the Taxes Act 1988 has effect in accordance with paragraph 8(3) of that Schedule.
Chapter | Short title | Extent of repeal |
|---|---|---|
1988 c. 1. | The Income and Corporation Taxes Act 1988. | In section 308— (a) paragraph (b) of subsection (1), and the word “and” immediately preceding that paragraph; and (b) paragraphs (a) and (b) of subsection (5). |
These repeals have effect in accordance with paragraph 1 of Schedule 8 to this Act.
Chapter | Short title | Extent of repeal |
|---|---|---|
1988 c. 1. | The Income and Corporation Taxes Act 1988. | In Schedule 28B, paragraph 10(2). |
This repeal has effect in accordance with paragraph 6 of Schedule 9 to this Act.
Chapter | Short title | Extent of repeal |
|---|---|---|
1970 c. 9. | The Taxes Management Act 1970. | In section 98, in the first column of the Table, the entry relating to section 737(8) of the Taxes Act 1988. |
1986 c. 41. | The Finance Act 1986. | In Schedule 18, paragraphs 7 and 9. |
1988 c. 1. | The Income and Corporation Taxes Act 1988. | Sections 129 and 129A. |
In section 387(3), paragraph (f) and the word “or” immediately preceding it. | ||
In section 715(6) the words “section 737 or”. | ||
Section 727(1). | ||
Section 737. | ||
In section 737A(5), the words “section 737 and”. | ||
In section 737C— (a) in subsection (2)(b), the words “section 737 and paragraph 2 of Schedule 23A apply, or”; (b) subsections (5) and (6); (c) in subsection (7)(b), the words “(whether or not section 737 also applies in relation to that payment)”; (d) in subsection (9), the words “subsections (6) and (8) above apply, or where”; and (e) subsection (11B). | ||
Section 738(3) and (4). | ||
Schedule 5A. | ||
In Schedule 23A— (a) in paragraph 1(1), the definitions of “approved stock lending arrangement”, “market maker”, “recognised clearing house”, “recognised investment exchange”, “unapproved manufactured payment” and “unapproved stock lending arrangement”; (b) paragraph 1(2); (c) paragraph 5; (d) paragraph 6; (e) in paragraph 7(1), the words “Except where paragraph 5(2) or (4) above applies,”; (f) paragraph 7(2); and (g) in paragraph 7(3), in paragraph (a), the words “except where paragraph 6 above applies, and”, and paragraph (b). | ||
1991 c. 31. | The Finance Act 1991. | Section 57. |
In Schedule 13, paragraphs 2 to 4. | ||
1992 c. 12. | The Taxation of Chargeable Gains Act 1992. | Section 271(9). |
In Schedule 10, paragraph 14(8), (39) and (61). | ||
1993 c. 34. | The Finance Act 1993. | Section 174(4) and (5). |
Section 182(1)(ca)(i). In Schedule 6, paragraphs 19 and 25(3) and (4). | ||
1994 c. 9. | The Finance Act 1994. | Section 123(2) to (5) and (7). |
Section 222(4) and (5). | ||
Section 229(ca)(i). | ||
In Schedule 16, paragraphs 18 and 19. | ||
1995 c. 4. | The Finance Act 1995. | Section 82. |
Sections 84 and 85. | ||
Schedule 19. | ||
1996 c. 8. | The Finance Act 1996. | In section 97— (a) in subsection (4), the words “section 737 of, or”; and (b) subsection (5). |
In section 159— (a) subsections (2) and (3); and (b) in subsection (7), paragraph (b) and the word “and” immediately preceding it. | ||
In Schedule 6, paragraphs 18 and 19. | ||
In Schedule 14, paragraphs 38 and 52(2), (3), (5) and (6). |
1
These repeals (except those to which Notes 2 to 6 below apply) have effect in relation to, and to transfers under, any arrangement made on or after such day as may be appointed by order under paragraph 7(1) of Schedule 10 to this Act.
2
The repeal of paragraph 6 of Schedule 23A to the Taxes Act 1988 and—
a
the repeals in paragraph 1(1) of that Schedule of the definitions of “unapproved manufactured payment” and “unapproved stock lending arrangement”, and
b
the repeal of paragraph (b) of paragraph 1(2) of that Schedule, and
c
the repeals in paragraph 7(3) of that Schedule,
have effect in relation to manufactured payments made on or after such day as may be appointed by order under paragraph 7(1) of Schedule 10 to this Act.
3
Subject to Note 6 below, the repeals of the following provisions, that is to say—
a
sections 387(3)(f), 737, 737C(5), (6) and (11B) and 738(3) and (4) of the Taxes Act 1988,
b
paragraphs 5 and 7(2) of Schedule 23A to that Act, and
c
section 97(5) of the Finance Act 1996,
together with the repeals listed in Note 4 below, have effect in relation to payments made on or after such day as may be appointed by order under paragraph 16(1) of Schedule 10 to this Act.
4
The repeals mentioned in Note 3 above are—
a
any repeal of an enactment amending a provision specified in Note 3 above;
b
the repeal of the references to section 737 of the Taxes Act 1988 in sections 737A(5) and 737C(2)(b) and (7)(b) of that Act and in section 97(4) of the Finance Act 1996;
c
the repeal of the reference to section 737C(6) of the Taxes Act 1988 in section 737C(9) of that Act;
d
the repeal of the enactments amending paragraph 2 of Schedule 23A to that Act; and
e
the repeal in paragraph 7(1) of that Schedule.
5
The repeals of the provisions which amend, or authorise the amendment of, section 21 of the Taxes Management Act 1970 have effect in accordance with paragraph 16(2) and (3) of Schedule 10 to this Act.
6
The repeal of section 737(8) of the Taxes Act 1988 has effect subject to paragraph 16(3) of Schedule 10 to this Act; and the repeal of the entry relating to section 737(8) in the Table in section 98 of the Taxes Management Act 1970 has effect accordingly.
Chapter | Short title | Extent of repeal |
|---|---|---|
1988 c. 1. | The Income and Corporation Taxes Act 1988. | Section 32. |
In section 379A(2)— (a) in paragraph (a), the word “relevant”; and (b) the words after paragraph (b). | ||
1990 c. 1. | The Capital Allowances Act 1990. | In section 67(3), the words from “shall be made” to “corporation tax,”. |
Section 73(4). | ||
In section 141— (a) in subsection (2), the words “Subject to subsection (3) below,”; and (b) subsections (3), (4) and (6). | ||
In Schedule 1, paragraph 8(2). | ||
1995 c. 4. | The Finance Act 1995. | In Schedule 6, paragraphs 8, 31 and 33. |
1996 c. 8. | The Finance Act 1996. | In Schedule 21, paragraph 34. |
These repeals have effect in accordance with paragraph 9(1) of Schedule 15 to this Act.
Chapter | Short title | Extent of repeal |
|---|---|---|
1990 c. 1. | The Capital Allowances Act 1990. | In section 51(8), paragraph (b). |
In section 54(1), paragraph (c) and the word “and” immediately preceding it. | ||
In section 55(4), paragraph (b) and the word “or” immediately preceding it. | ||
In section 56, paragraph (c). | ||
Section 59(10). | ||
1991 c. 31. | The Finance Act 1991. | In Schedule 14, paragraph 10. |
1
These repeals have effect, subject to the following notes and paragraph 2(8) of Schedule 16 to this Act, for chargeable periods ending on or after 24th July 1996.
2
The repeal in section 54(1) of the Capital Allowances Act 1990 does not apply where the purchaser acquired the relevant interest before that date.
3
The repeals in sections 55(4) and 56 of that Act do not apply where the lease was granted before that date.
4
The repeal of section 59(10) of that Act does not apply where the fixture ceased to belong to the former owner before that date.
Part VII Stamp Duty and Stamp Duty Reserve Tax
Chapter | Short title | Extent of repeal |
|---|---|---|
1986 c. 41. | The Finance Act 1986. | Section 67(4). |
Section 69(6) to (8). | ||
Section 70(4). | ||
Section 72(4). | ||
Sections 80A to 80C. | ||
Sections 81 and 82. | ||
Section 87(7B). | ||
In section 88(1B)(b), the word “or” at the end of sub-paragraph (ii). | ||
Sections 88A and 88B. | ||
Section 89. | ||
Section 89AA. | ||
Section 89B. | ||
Section 90(3)(b). | ||
Section 93(5). | ||
Section 94(5) to (7). | ||
Section 96(3) and (11). | ||
1987 c. 16. | The Finance Act 1987. | Section 53. |
In Schedule 7, paragraph 4. | ||
1988 c. 39. | The Finance Act 1988. | In Schedule 13, paragraph 23. |
1996 c. 8. | The Finance Act 1996. | Section 191. |
Section 194(2)(b) and (4)(b). | ||
1997 c. 16. | The Finance Act 1997. | Sections 97 to 106. |
1
The repeals of sections 80A to 80C of the Finance Act 1986 and sections 97 to 99 of this Act have effect in accordance with section 108 of the Finance Act 1990.
2
The repeals in sections 67, 69, 70 and 72 of the Finance Act 1986 have effect in accordance with section 99 of this Act.
3
The repeal of section 81 of the Finance Act 1986 has effect in accordance with section 97 of this Act.
4
The repeals of section 82 of the Finance Act 1986 and section 53 of the Finance Act 1987 have effect in accordance with section 98 of this Act.
5
The repeals in sections 87 and 88 of the Finance Act 1986 have effect in accordance with section 106 of this Act.
6
The repeals of sections 88A, 88B and 89AA of the Finance Act 1986 and sections 100 to 106 of this Act have effect in accordance with section 110 of the Finance Act 1990.
7
The repeal of section 89 of the Finance Act 1986 and the repeal in Schedule 7 to the Finance Act 1987 have effect in accordance with section 102 of this Act.
8
The repeals of section 89B of the Finance Act 1986 and section 191 of the Finance Act 1996 have effect in accordance with section 103 of this Act.
9
The repeal of section 90(3)(b) of the Finance Act 1986 has effect in accordance with section 105 of this Act.
10
The repeals in sections 93, 94 and 96 of the Finance Act 1986, in Schedule 13 to the Finance Act 1988 and in section 194 of the Finance Act 1996 have effect in accordance with section 104 of this Act.
Sch. 7 excluded (28.4.1997) by S.I. 1997/1154, reg. 25(10)