Paragraph 8(2) of Schedule 11 to the Electricity Act 1989 (treatment of certain debentures for the purposes of the Corporation Tax Acts) shall have effect, and be deemed always to have had effect, with the addition after paragraph (b) of the words—
“ and if any such debenture includes provision for the payment of a sum expressed as interest in respect of a period which falls wholly or partly before the issue of the debenture, any payment made in pursuance of that provision in respect of that period shall be treated for the purposes of the Corporation Tax Acts as if the debenture had been issued at the commencement of that period and, accordingly, as interest on the principal sum payable under the debenture. ”
(1) In the Taxes Management Act 1970, the following section shall be inserted after section 99—
Certificates of non-liability to income tax.
99A If a person who gives a certificate of non-liability to income tax in pursuance of regulations under section 477A of the principal Act (building societies) or section 480B of that Act (deposit-takers)—
(a) gives the certificate fraudulently or negligently, or
(b) fails to comply with any undertaking contained in the certificate in pursuance of the regulations,
he shall be liable to a penalty not exceeding £3,000.
(2) So far as relating to the giving of a certificate, this section shall apply in relation to certificates given on or after the day on which this Act is passed.
(3) So far as relating to failure to comply with an undertaking contained in a certificate, this section shall apply in relation to certificates whenever given, but not so as to impose liability for a failure occurring before the day on which this Act is passed.
103 Allowance of certain expenditure relating to abandonment, decommissioning assets, etc.
(1) Section 3 of the principal Act (allowance of certain expenditure) shall be amended in accordance with subsections (2) to (6) below.
(2) With respect to expenditure incurred on or after 19th March 1991, in subsection (1), after paragraph (h) there shall be inserted the following paragraph—
(hh) obtaining an abandonment guarantee, as defined in section 104 of the Finance Act 1991
.
(3) With respect to expenditure incurred after 30th June 1991, in subsection (1), for paragraph (i) there shall be substituted the following paragraphs—
(i) closing down, decommissioning, abandoning or wholly or partially dismantling or removing any qualifying asset;
(j) carrying out qualifying restoration work consequential upon the closing down of the field or any part of it.
(4) After subsection (1) there shall be inserted the following subsections—
(1A) In this section “qualifying asset has the same meaning as in the Oil Taxation Act 1983; and, in the case of a qualifying asset which was leased or hired, the reference in subsection (1)(i) above to decommissioning includes a reference to carrying out any restoration or similar work which is required to be carried out to comply with the terms of the contract of lease or hire.
(1B) In subsection (1)(j) above “qualifying restoration work, in relation to a participator in an oil field, means—
(a) restoring (including landscaping) land on which a qualifying asset is or was situated; or
(b) restoring the seabed (including the subsoil thereof) on which a qualifying asset is or was situated.
(1C) In any case where—
(a) expenditure is incurred by a participator for any of the purposes mentioned in paragraph (i) or paragraph (j) of subsection (1) above, and
(b) the participator is or was a participator in two or more oil fields and the qualifying asset which is relevant to the incurring of that expenditure is, at the end of the claim period concerned, a qualifying asset in respect of more than one of those oil fields,
the expenditure shall be apportioned between those oil fields in such manner as is just and reasonable.
(1D) Without prejudice to any apportionment under subsection (1C) above, in any case where—
(a) any expenditure incurred by a participator would, apart from this subsection, be regarded as wholly incurred for any of the purposes mentioned in paragraph (i) or paragraph (j) of subsection (1) above, and
(b) the qualifying asset which is relevant to the incurring of that expenditure has at some time been used otherwise than in connection with an oil field,
only such portion of the expenditure as it is just and reasonable to apportion to the use in connection with an oil field shall be regarded as allowable for any of the purposes referred to in paragraph (a) above.
(5) After subsection (5A) there shall be inserted the following subsection—
(5B) Expenditure incurred by a participator in an oil field shall be taken to be incurred for the purpose mentioned in paragraph (hh) of subsection (1) above if, and only if,—
(a) it consists of fees, commission or incidental costs incurred wholly and exclusively for the purposes of obtaining an abandonment guarantee; and
(b) the abandonment guarantee is obtained in order to comply with a term of a relevant agreement relating to that field under which the participator is required to provide security (whether or not specifically in the form of an abandonment guarantee) in respect of his liabilities to contribute to field abandonment costs;
and expressions used in this subsection shall be construed in accordance with section 104 of the Finance Act 1991.
(6) In subsection (6) (apportionment of expenditure)—
(a) at the beginning there shall be inserted “Without prejudice to any apportionment under subsection (1C) or subsection (1D) above ”; and
(b) after the words “subsections (1) and (5) above” there shall be inserted “other than paragraph (hh) of subsection (1) ”.
(7) In section 10 of the principal Act (exempt gas)—
(a) in subsection (2) for the words “and (i) of subsection (1)” there shall be substituted “(hh), (i) and (j) of subsection (1) and subsection (1D) ”;
(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(8) So far as they relate to the paragraph (hh) inserted by subsection (2) above, the amendments in subsections (5) to (7) above have effect with respect to expenditure incurred on or after 19th March 1991 and, subject to that, the amendments in subsections (4) to (7) above have effect with respect to expenditure incurred after 30th June 1991.
(1) Subject to subsection (2) below, for the purposes of section 3 of the principal Act ..., an abandonment guarantee is a contract under which a person ( “the guarantor) undertakes to make good any default by a participator in an oil field ( “the relevant participator) in meeting the whole or any part of those liabilities of his which—
(a) arise under a relevant agreement relating to that field; and
(b) are liabilities to contribute to field abandonment costs;
and such a contract is an abandonment guarantee regardless of the form of the undertaking of the guarantor and, in particular, whether or not it is expressed as a guarantee or arises under a letter of credit, a performance bond or any other instrument.
(2) For the purposes of section 3 of the principal Act ... a contract is not an abandonment guarantee—
(a) unless it is entered into in good faith and on terms reasonably appropriate to the nature and extent of the guarantee; or
(b) if the guarantor undertakes any liability beyond that of making good any such default as is referred to in subsection (1) above; or
(c) if it can be revoked by the guarantor otherwise than on account of some fraud, misrepresentation or other fault on the part of the relevant participator occurring prior to the making of the contract; or
(d) if, subject to subsection (3) below, the guarantor is, or is a person connected with, a participator in one or more oil fields.
(3) Paragraph (d) of subsection (2) above does not apply if—
(a) the main business carried on by the guarantor is such that it is in the ordinary course of that business to provide guarantees; and
(b) the relevant participator is not connected with the guarantor;
and section 1122 of the Corporation Tax Act 2010 (connected persons) applies for the purposes of this subsection and subsection (2) above.
(4) Without prejudice to the generality of paragraph (a) of subsection (2) above, a contract shall not be regarded as entered into in good faith if, as a result of any arrangement, the liability to make good any such default as is referred to in subsection (1) above will be met, directly or indirectly, by such a person that, if he were the guarantor under the contract, the contract could not be an abandonment guarantee by virtue of paragraph (d) of subsection (2) above.
(5) In this section and in section 3(5B) of the principal Act—
(a) in relation to an oil field, a “relevant agreement means a joint operating agreement, a unitisation agreement (within the meaning of paragraph 1(1) of Schedule 17 to the Finance Act 1980) or an agreement entered into by some or all of the parties to a joint operating agreement or such a unitisation agreement; and
(b) in relation to an oil field, “field abandoNment costs means costs incurred in closing down the field or any part of it, together with any costs incurred in discharging any continuing liabilities resulting directly from that closure.
107 Allowance of expenditure of participator meeting defaulter’s field abandonment expenditure.
(1) In Schedule 5 to the principal Act (procedure for allowance of expenditure) at the beginning of paragraph (b) of sub-paragraph (4) of paragraph 2 (claim must state the shares, by reference to their respective interests in the oil field, in which participators propose to divide expenditure) there shall be inserted “Subject to paragraph 2A below ”.
(2) After paragraph 2 of Schedule 5 to the principal Act there shall be inserted the following paragraph—
2A (1) This paragraph applies where—
(a) a claim is made under this Schedule for the allowance of any expenditure which is incurred after 30th June 1991 and is allowable for an oil field by virtue of paragraph (i) or paragraph (j) of subsection (1) of section 3 of this Act (in this paragraph referred to as “the abandonment expenditure);
(b) a participator (in this paragraph referred to as “the defaulter) has defaulted on his liability under a relevant agreement to make a payment towards the abandonment expenditure;
(c) at the end of the claim period for which the claim is made, the defaulter still has an interest in the oil field which falls to be taken into account in determining, under paragraph 2(4)(b) above, the shares of each of the participators in the abandonment expenditure;
(d) the participators (other than any who have defaulted as mentioned in paragraph (b) above) have taken all reasonable steps by way of legal remedy to secure that the defaulter meets the whole of the liability referred to in paragraph (b) above and to enforce any guarantee or other security provided in respect of that liability; and
(e) one or more of those participators has paid an amount in or towards meeting the whole or any part of the payment for which the defaulter was liable as mentioned in paragraph (b) above.
(2) For the purposes of this paragraph, a participator is to be regarded as defaulting on his liability to make a payment as mentioned in sub-paragraph (1)(b) above if he has failed to make the payment in full on the date on which it becomes due under the relevant agreement and either—
(a) on the sixtieth day after that due date any of the payment remains unpaid; or
(b) before that sixtieth day the participator’s interest in a relevant licence becomes liable under the relevant agreement to be sold or forfeited, in whole or in part, by reason of his failure to meet his liability.
(3) In this paragraph—
(a) “relevant agreement has the meaning given by section 104(5)(a) of the Finance Act 1991;
(b) “the sum in default means so much of the payment referred to in sub-paragraph (1)(b) above as has neither been paid by the defaulter nor met by virtue of any such guarantee or security as is referred to in sub-paragraph (1)(d) above;
(c) the “default payment means the amount which the qualifying participator has paid as mentioned in sub-paragraph (1)(e) above; and
(d) a “qualifying participator means a participator who falls within sub-paragraph (1)(e) above and who is not connected with the defaulter, applying section 839 of the Taxes Act (connected persons) for the purposes of this paragraph.
(4) For the purposes of paragraphs 2(4)(b) and 3(1)(c) of this Schedule, there shall be attributed to a qualifying participator (as an addition to the share of the abandonment expenditure referable to his own interest in the oil field) whichever is the less of—
(a) the default payment; and
(b) subject to sub-paragraph (5) below, that portion of the sum in default which, in accordance with the relevant agreement, the qualifying participator is required to meet in the event of a failure by the defaulter to meet his liability to pay in full the payment referred to in sub-paragraph (1)(b) above.
(5) If, in the case of any oil field, there are only two participators and one of them is the defaulter, the portion referred to in sub-paragraph (4)(b) above is the whole.
(6) Where this paragraph applies, account shall, in the first instance, be taken under paragraph 2(4)(b) above of the whole of the defaulter’s interest in the oil field in determining the share of the abandonment expenditure which, apart from sub-paragraph (4) above, is to be attributed to each of the other participators; but the amount of the abandonment expenditure which, apart from this paragraph, would be attributed to the defaulter by reference to his interest in the oil field shall be reduced (or, as the case may be, extinguished) by deducting therefrom any expenditure attributed to the other participators under sub-paragraph (4) above.
(1) In Schedule 2 to the principal Act (management and collection of petroleum revenue tax) the Table in paragraph 1(1) shall be amended as follows.
(2) The following shall be substituted for the entries relating to section 100 of the Taxes Management Act 1970—
Section 100C(1) | For the words from “General” to the end substitute “Special Commissioners for any penalty”.
(2) | Before “Commissioners” insert “Special”.
(3) | Before “Commissioners” insert “Special”.
(4)
(5)
.
(3) The following shall be substituted for the entries relating to section 103 of the Taxes Management Act 1970—
Section 103(1) | For the words from the beginning to “court—” substitute “Where the amount of a penalty is to be ascertained by reference to tax payable by a person for any period, proceedings for the penalty may be commenced before the Special Commissioners—”.
(4) | For the words from the beginning to “court,” substitute “Proceedings for a penalty to which subsection (1) above does not apply may be commenced before the Special Commissioners”.
(1) Where apart from this section stamp duty under any of the provisions of Schedule 13 to the Finance Act 1999 would be chargeable on an instrument, stamp duty shall not be so chargeable if the property consists entirely of exempt property.
(5) For the purposes of this section exempt property is property other than—
(a) land,
(b) an interest in the proceeds of the sale of land held on trust for sale, or
(c) a licence to occupy land.
(6) This section applies to—
(a) an instrument executed in pursuance of a contract made on or after the abolition day;
(b) an instrument which is not executed in pursuance of a contract and is executed on or after the abolition day.
(7) For the purposes of this section the abolition day is such day as may be appointed under section 111(1) of the Finance Act 1990 (abolition of stamp duty for securities etc).
(1) This section applies where—
(a) stamp duty under Part I of Schedule 13 to the Finance Act 1999 (conveyance or transfer on sale) is chargeable on an instrument to which this section applies, and
(b) part of the property concerned consists of exempt property.
(2) In such a case—
(a) the consideration in respect of which duty would be charged (apart from this section) shall be apportioned, on such basis as is just and reasonable, as between the part of the property which consists of exempt property and the part which does not, and
(b) the instrument shall be charged only in respect of the consideration attributed to such of the property as is not exempt property.
(3) In this section “exempt property has the same meaning as in section 110 above.
(4) This section applies to—
(a) an instrument executed in pursuance of a contract made on or after the abolition day;
(b) an instrument which is not executed in pursuance of a contract and is executed on or after the abolition day.
(5) In this section “the abolition day has the same meaning as in section 110 above.
112 Apportionment of consideration for stamp duty purposes.
(1) Subsection (2) below applies where part of the property referred to in section 58(1) of the Stamp Act 1891 (consideration to be apportioned between different instruments as parties think fit) consists of exempt property.
(2) Section 58(1) shall have effect as if “the parties think fit” read “is just and reasonable”.
(3) Subsection (4) below applies where—
(a) part of the property referred to in section 58(2) of the Stamp Act 1891 (property contracted to be purchased by two or more persons etc.) consists of exempt property, and
(b) both or (as the case may be) all the relevant persons are connected with one another.
(4) Section 58(2) shall have effect as if the words from “for distinct parts of the consideration” to the end of the subsection read “, the consideration is to be apportioned in such manner as is just and reasonable, so that a distinct consideration for each separate part or parcel is set forth in the conveyance relating thereto, and such conveyance is to be charged withad valoremduty in respect of such distinct consideration.”
(5) In a case where subsection (2) or (4) above applies and the consideration is apportioned in a manner that is not just and reasonable, the enactments relating to stamp duty shall have effect as if—
(a) the consideration had been apportioned in a manner that is just and reasonable, and
(b) the amount of any distinct consideration set forth in any conveyance relating to a separate part or parcel of property were such amount as is found by a just and reasonable apportionment (and not the amount actually set forth).
(6) In this section “exempt property has the same meaning as in section 110 above.
(7) For the purposes of subsection (3) above—
(a) a person is a relevant person if he is a person by or for whom the property is contracted to be purchased;
(b) the question whether persons are connected with one another shall be determined in accordance with section 1122 of the Corporation Tax Act 2010.
(8) This section applies where the contract concerned is made on or after the abolition day.
(9) In this section “the abolition day has the same meaning as in section 110 above.
113 Certification of instruments for stamp duty purposes.
(1) For the purposes of paragraph 6(1) of Schedule 13 to the Finance Act 1999 (meaning of instrument being certified at an amount)—
(a) a sale or contract or agreement for the sale of exempt property within the meaning of section 110 above shall be disregarded; and
(b) any statement as mentioned in that provision shall be construed as leaving out of account any matter which is to be so disregarded.
(4) This section applies to—
(a) an instrument executed in pursuance of a contract made on or after the abolition day;
(b) an instrument which is not executed in pursuance of a contract and is executed on or after the abolition day.
(5) In this section “the abolition day has the same meaning as in section 110 above.
(1) Section 36 of the Finance Act 1949 and section 9 of the Finance Act (Northern Ireland) 1949 shall be amended as mentioned in subsections (2) and (3) below.
(2) In subsection (4) of each of those sections (goods not affected by section 12 of the Finance Act 1895, which relates to duty on property acquired under statute) for the words “goods, wares or merchandise” (in each place where they occur) there shall be substituted the words “exempt property ”.
(3) In each of those sections the following subsection shall be inserted after subsection (4)—
(5) In subsection (4) above “exempt property has the same meaning as in section 110 of the Finance Act 1991.
(4) This section applies where the Act mentioned in section 12 of the Finance Act 1895, and by virtue of which property is vested or a person is authorised to purchase property, is passed on or after the abolition day.
(5) In this section “the abolition day has the same meaning as in section 110 above.
116 Investment exchanges, clearing houses and central securities depositories: stamp duty
(1) The Treasury may make regulations providing as mentioned in this section with regard to any circumstances which—
(a) would (apart from the regulations) give rise to a charge to stamp duty,
(b) involve a prescribed relevant entity, or a member or nominee (or member or nominee of a prescribed description) of such a relevant entity, or a nominee (or nominee of a prescribed description) of a member of such a relevant entity, and
(c) are such as are prescribed.
(2) The regulations may provide that the charge to stamp duty shall be treated as not arising or (depending on the terms of the regulations) as reduced.
(3) Regulations under this section—
(a) shall be made by statutory instrument subject to annulment in pursuance of a resolution of the House of Commons;
(b) may include such supplementary, incidental, consequential or transitional provisions as appear to the Treasury to be necessary or expedient;
(c) may make different provision for different circumstances;
(d) may make any provision in such way as the Treasury think fit (whether by amending enactments or otherwise).
(4) In this section—
(aa) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(a) “prescribed means prescribed by the regulations, and
(b) “relevant entity” means any of the following—
(i) a UK regulated market (within the meaning given by Article 2.1(13A) of Regulation (EU) No 600/2014 of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments);
(ia) a UK multilateral trading facility (within the meaning given by Article 2.1(14A) of that Regulation);
(ib) an EU regulated market (within the meaning given by Article 2.1(13B) of that Regulation);
(ic) an EU multilateral trading facility (within the meaning given by Article 2.1 (14B) of that Regulation);
(id) a Gibraltar regulated market (within the meaning given by Article 26(11)(b)(i) of that Regulation);
(ie) a Gibraltar multilateral trading facility (within the meaning given by Article 26(11)(b)(ii) of that Regulation);
(ii) a recognised clearing house, a recognised CSD ..., a third country CSD, a recognised investment exchange ... and a third country central counterparty (within the meaning of section 285 of the Financial Services and Markets Act 2000).
(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
117 Investment exchanges, clearing houses and central securities depositories: SDRT
(1) The Treasury may make regulations providing as mentioned in this section with regard to any circumstances which—
(a) would (apart from the regulations) give rise to a charge to stamp duty reserve tax,
(b) involve a prescribed relevant entity, or a member or nominee (or member or nominee of a prescribed description) of such a relevant entity, or a nominee (or nominee of a prescribed description) of a member of such a relevant entity, and
(c) are such as are prescribed.
(2) The regulations may provide that the charge to stamp duty reserve tax shall be treated as not arising or (depending on the terms of the regulations) as reduced.
(3) Subsections (3) and (4) of section 116 above shall apply for the purposes of this section as they apply for the purposes of that.
118 Designated international organisations: miscellaneous exemptions.
(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(2) In section 828(4) of that Act (Treasury orders not subject to annulment in pursuance of a resolution of the House of Commons) after “377(8),” there shall be inserted “582A(1), ”.
(1) The Government Trading Funds Act 1973 shall be amended as follows.
(2) In section 2 (assets and liabilities of funds) in subsections (1)(b) and (2) the words “at values or amounts determined by him in accordance with Treasury directions” shall be omitted.
(3) In that section, the following subsection shall be inserted after subsection (2)—
(2A) The values or amounts of assets and liabilities which are the subject of provision under subsection (1) or (2) above shall be determined by the responsible Minister in accordance with Treasury directions.