Law

Finance Act 1991

United Kingdom · statute

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In force since 2020-12-31, as the publisher states.

Copy read on 2026-11-08. The page it was read from

Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.

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Contents: 144 provisions
  1. Title and introductory text
  2. 1 Spirits, beer, wine, made-wine and cider.
  3. 2 Tobacco products.
  4. 3 Hydrocarbon oil.
  5. 4
  6. 5 Pool betting duty.
  7. 6
  8. 7 Beer duty.
  9. 8 Vehicles excise duty: exemptions.
  10. 9
  11. 10
  12. 11 Revenue traders and registered excise dealers and shippers.
  13. 12 Protection of the revenues derived from excise duties.
  14. 13
  15. 14 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  16. 15
  17. 16
  18. 17
  19. 18
  20. 19 Vehicles leased to the handicapped.
  21. 20 Research vehicles.
  22. 21 Charge and rates of income tax for 1991-92.
  23. 22 Married couple’s allowance.
  24. 23 Rate of corporation tax for 1990.
  25. 24 Charge and rate of corporation tax for 1991.
  26. 25 Small companies.
  27. 26 Relief for interest.
  28. 27 Abolition of higher rate relief on certain mortgage interest etc.
  29. 28 Mortgage interest relief: caravans.
  30. 29 Car benefits.
  31. 30 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  32. 31
  33. 32 Relief.
  34. 33 Section 32: supplementary.
  35. 34 Conditions for approval: amendments.
  36. 35 Cessation of approval.
  37. 36 Cessation of approval: general provisions.
  38. 37
  39. 38 Employee share schemes: non-discrimination.
  40. 39 Approved share option schemes: price at which shares may be acquired.
  41. 40 Savings-related share option schemes.
  42. 41 Profit sharing schemes.
  43. 42 Costs of establishing share option or profit sharing schemes: relief.
  44. 43 Costs of establishing employee share ownership trusts: relief.
  45. 44 Priority share allocations for employees etc.
  46. 45
  47. 46 Workers in Kuwait or Iraq.
  48. 47 Investor protection schemes.
  49. 48 Assimilation of basic life assurance business and general annuity business.
  50. 49 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  51. 50 Friendly societies.
  52. 51 Qualifying shares.
  53. 52 Marketable securities.
  54. 53 Income Tax (Building Societies) Regulations 1986.
  55. 54 New issues.
  56. 55 Purchase and sale of securities: options.
  57. 56
  58. 57 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  59. 58 Manufactured dividends and interest.
  60. 59 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  61. 60 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  62. 61 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  63. 62 Expenditure on and under abandonment guarantees.
  64. 63 Relief for reimbursement expenditure under abandonment guarantees.
  65. 64 Relief for expenditure incurred by a participator in meeting defaulter’s abandonment expenditure.
  66. 65 Reimbursement by defaulter in respect of certain abandonment expenditure.
  67. 66 Restriction on setting ACT against liability to corporation tax on profits from oil extraction activities etc.
  68. 67 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  69. 68 Gifts to educational establishments.
  70. 69 Expenses of entertainers.
  71. 70 Personal equity plans.
  72. 71 Donations to charity.
  73. 72 Deduction of trading losses.
  74. 73 Relief for company trading losses.
  75. 74 Trade unions and employers’ associations.
  76. 75 Audit powers in relation to non-residents.
  77. 76 Capital element in annuities.
  78. 77 Definition of “normal commercial loan”.
  79. 78 Sharing of transmission facilities.
  80. 79 Abolition of CRT: consequential amendment.
  81. 80 Interest on certain debentures.
  82. 81 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  83. 82 Certificates of non-liability to tax.
  84. 83 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  85. 84 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  86. 85 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  87. 86 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  88. 87 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  89. 88 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  90. 89 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  91. 90 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  92. 91 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  93. 92 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  94. 93 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  95. 94 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  96. 95 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  97. 96 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  98. 97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  99. 98 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  100. 99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  101. 100 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  102. 101 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  103. 102 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  104. 103 Allowance of certain expenditure relating to abandonment, decommissioning assets, etc.
  105. 104 Abandonment guarantees.
  106. 105 Restriction of expenditure relief by reference to payments under abandonment guarantees.
  107. 106 Relief for reimbursement expenditure under abandonment guarantees.
  108. 107 Allowance of expenditure of participator meeting defaulter’s field abandonment expenditure.
  109. 108 Reimbursement by defaulter in respect of certain abandonment expenditure.
  110. 109 PRT: proceedings for penalties.
  111. 110 Stamp duty abolished in certain cases.
  112. 111 Stamp duty reduced in certain cases.
  113. 112 Apportionment of consideration for stamp duty purposes.
  114. 113 Certification of instruments for stamp duty purposes.
  115. 114 Acquisition under statute: exempt property.
  116. 115 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  117. 116 Investment exchanges, clearing houses and central securities depositories: stamp duty
  118. 117 Investment exchanges, clearing houses and central securities depositories: SDRT
  119. 118 Designated international organisations: miscellaneous exemptions.
  120. 119 Trading funds.
  121. 120 National savings: date of issue of repayment warrants etc.
  122. 121 Pools payments to support games etc.
  123. 122 Interpretation etc.
  124. 123 Repeals.
  125. 124 Short title.
  126. SCHEDULE 1
  127. SCHEDULE 2 AMENDMENTS RELATING TO BEER DUTY
  128. SCHEDULE 3 MODIFICATION OF ENACTMENTS EXTENDED TO NORTHERN IRELAND
  129. SCHEDULE 4 REGISTERED EXCISE DEALERS AND SHIPPERS
  130. SCHEDULE 5 PROTECTION OF THE REVENUES DERIVED FROM EXCISE DUTIES
  131. SCHEDULE 6 RESTRICTION OF HIGHER RATE RELIEF: BENEFICIAL LOANS ETC
  132. SCHEDULE 7 BASIC LIFE ASSURANCE AND GENERAL ANNUITY BUSINESS
  133. SCHEDULE 8
  134. SCHEDULE 9 FRIENDLY SOCIETIES
  135. SCHEDULE 10 BUILDING SOCIETIES: QUALIFYING SHARES
  136. SCHEDULE 11 BUILDING SOCIETIES: MARKETABLE SECURITIES
  137. SCHEDULE 12 SECURITIES: NEW ISSUES
  138. SCHEDULE 13 MANUFACTURED DIVIDENDS AND INTEREST
  139. SCHEDULE 14
  140. SCHEDULE 15 RELIEF FOR COMPANY TRADING LOSSES
  141. SCHEDULE 16
  142. SCHEDULE 17
  143. SCHEDULE 18
  144. SCHEDULE 19 REPEALS

Proposed changes to this act

No one has proposed a change to this act yet.

144 provisions

40 Savings-related share option schemes.

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Propose a change

41 Profit sharing schemes.

(1) In section 187(2) of the Taxes Act 1988, in the definition of “relevant amount” (limit on the value of shares that may be appropriated to a participant in a year of assessment) for “not less than £2,000 and not more than £6,000” there shall be substituted “not less than £3,000 and not more than £8,000 ”. (2) This section shall apply for the year 1991-92 and subsequent years of assessment.

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42 Costs of establishing share option or profit sharing schemes: relief.

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43 Costs of establishing employee share ownership trusts: relief.

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44 Priority share allocations for employees etc.

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45

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46 Workers in Kuwait or Iraq.

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47 Investor protection schemes.

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48 Assimilation of basic life assurance business and general annuity business.

Schedule 7 to this Act shall have effect.

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49 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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50 Friendly societies.

Schedule 9 to this Act (which makes provision about friendly societies) shall have effect.

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51 Qualifying shares.

Schedule 10 to this Act (which makes provision about certain kinds of building society share) shall have effect.

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52 Marketable securities.

(1) Schedule 11 to this Act (which makes provision about the deduction of income tax in the case of marketable securities issued by building societies) shall have effect. (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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53 Income Tax (Building Societies) Regulations 1986.

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54 New issues.

Schedule 12 to this Act (which contains provisions about securities issued after an issue of securities of the same kind) shall have effect.

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55 Purchase and sale of securities: options.

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56

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57 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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58 Manufactured dividends and interest.

(1) After section 736 of the Taxes Act 1988 there shall be inserted— Manufactured dividends and interest. 736A Schedule 23A to this Act shall have effect in relation to certain cases where under a contract or other arrangements for the transfer of shares or other securities a person is required to pay to the other party an amount representative of a dividend or payment of interest on the securities. (2) The enactments mentioned in Schedule 13 to this Act shall have effect with the amendments there specified. (3) This section shall have effect in relation to payments made on or after such day as the Treasury may specify for this purpose by regulations made by statutory instrument and different days may be so appointed for different provisions or different purposes.

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59 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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60 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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61 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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62 Expenditure on and under abandonment guarantees.

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63 Relief for reimbursement expenditure under abandonment guarantees.

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64 Relief for expenditure incurred by a participator in meeting defaulter’s abandonment expenditure.

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65 Reimbursement by defaulter in respect of certain abandonment expenditure.

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66 Restriction on setting ACT against liability to corporation tax on profits from oil extraction activities etc.

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67 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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68 Gifts to educational establishments.

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69 Expenses of entertainers.

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70 Personal equity plans.

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71 Donations to charity.

(1) Section 339A of the Taxes Act 1988 (maximum qualifying donations in the case of companies) shall cease to have effect. (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3) Subsections (1) and (2) above shall apply in relation to accounting periods beginning on or after 19th March 1991. (4) In its application to accounting periods beginning before 19th March 1991 and ending on or after that date, section 339A of the Taxes Act 1988 shall have effect as if— (a) in subsections (1) and (2), after the words “in that period”, in the first place where they occur, there were inserted “and before 19th March 1991”; and (b) in subsection (3)(b), after “that section” there were inserted “in respect of payments made before 19th March 1991”. (5) In section 25 of the Finance Act 1990 (donations to charity by individuals) subsection (2)(h) (maximum qualifying donations) shall cease to have effect. (6) Subsection (5) above shall apply in relation to gifts made on or after 19th March 1991.

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72 Deduction of trading losses.

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73 Relief for company trading losses.

(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2) Sections 393(2) to (6) and 394 of the Taxes Act 1988 (which are superseded by this section) shall cease to have effect. (3) Schedule 15 to this Act shall have effect. (4) This section shall have effect only in relation to losses incurred in accounting periods ending on or after 1st April 1991. (5) Any enactment amended by this section or that Schedule shall, in its application in relation to losses so incurred, be deemed to have had effect at all times with that amendment; and where any such enactment is the re-enactment of a repealed enactment, the repealed enactment shall, in its application in relation to losses so incurred, be deemed to have had effect at all times with a corresponding amendment.

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74 Trade unions and employers’ associations.

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75 Audit powers in relation to non-residents.

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76 Capital element in annuities.

(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2) Section 230 of the Income and Corporation Taxes Act 1970 (from which section 656 of the Taxes Act 1988 is derived) shall be deemed always to have had effect as if the subsections (7) to (9) set out in subsection (1) above had been contained in that section as subsections (8) to (10) respectively, but with the substitution for “(2)(a)” and “(4)(c)”, in each place where they occur, of “(2A)(a) ” and “(3)(c) ” respectively. (3) Section 27 of the Finance Act 1956 (from which section 230 of the Income and Corporation Taxes Act 1970 was derived) shall be deemed always to have had effect as if the subsections (7) and (9) set out in subsection (1) above had been contained in that section as subsections (8A) and (8B) respectively, but with the omission in subsection (7) of paragraph (a) and with the substitution of “(3)(c) ” for “(4)(c)” in both places where it occurs.

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77 Definition of “normal commercial loan”.

(1) In paragraph 1 of Schedule 18 to the Taxes Act 1988 (under which a person who is a loan creditor of a company in respect of a non-commercial loan is an equity holder of the company) after sub-paragraph (5D) there shall be inserted— (5E) For the purposes of sub-paragraph (5)(b) above, the amount to which the loan creditor is entitled by way of interest— (a) shall not be treated as depending to any extent on the results of the company’s business or any part of it by reason only of the fact that the terms of the loan provide for the rate of interest to be reduced in the event of the results of the company’s business or any part of it improving, and (b) shall not be treated as depending to any extent on the value of any of the company’s assets by reason only of the fact that the terms of the loan provide for the rate of interest to be reduced in the event of the value of any of the company’s assets increasing. (5F) Sub-paragraph (5H) below applies where— (a) a person makes a loan to a company on the basis mentioned in sub-paragraph (5G) below for the purpose of facilitating the acquisition of land, and (b) none of the land which the loan is used to acquire is acquired with a view to resale at a profit. (5G) The basis referred to above is that— (a) the whole of the loan is to be applied in the acquisition of land by the company or in meeting the incidental costs of obtaining the loan, (b) the payment of any amount due in connection with the loan to the person making it is to be secured on the land which the loan is to be used to acquire, and (c) no other security is to be required for the payment of any such amount. (5H) For the purposes of sub-paragraph (5)(b) above, the amount to which the loan creditor is entitled by way of interest shall not be treated as depending to any extent on the value of any of the company’s assets by reason only of the fact that the terms of the loan are such that the only way the loan creditor can enforce payment of an amount due is by exercising rights granted by way of security over the land which the loan is used to acquire. (5I) In sub-paragraph (5G)(a) above the reference to the incidental costs of obtaining the loan is to any expenditure on fees, commissions, advertising, printing or other incidental matters wholly and exclusively incurred for the purpose of obtaining the loan or of providing security for it. (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3) Except as provided by subsection (2) above, this section shall be deemed to have come into force on 1st April 1991.

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78 Sharing of transmission facilities.

(1) This section applies to any agreement relating to the sharing of transmission facilities— (a) to which the parties are national broadcasting companies, (b) which is entered into on or after the day on which this Act is passed and before 1st January 1992 or such later date as may be specified for the purposes of this paragraph by the Secretary of State, and (c) in relation to which the Secretary of State has certified that it is expedient that this section should apply. (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4) Where under an agreement to which this section applies one party to the agreement disposes of plant or machinery to another party to the agreement, the Capital Allowances Act shall apply— (a) in the case of the party making the disposal, as if the disposal value of the plant or machinery for the purposes of section 60 of that Act were equal to the capital expenditure incurred by that party on its provision, and (b) in the case of the party to whom the disposal is made, as if the amount expended by that party in acquiring the plant or machinery were equal to the capital expenditure so incurred. (5) In subsection (4) above, references to plant or machinery include a share in plant or machinery. (6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (8) In this section, “national broadcasting company means a body corporate engaged in the broadcasting for general reception by means of wireless telegraphy of radio or television services or both on a national basis.

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79 Abolition of CRT: consequential amendment.

(1) In Schedule 12 to the Finance Act 1988 (building societies: change of status) in paragraph 6(1)(b) for “section 476” there shall be substituted “section 477A ”. (2) This section shall apply where qualifying benefits are conferred on or after 6th April 1991.

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