Section 133.
Introductory
1 The Taxes Management Act 1970, as it has effect—
(a) for the purposes of income tax and capital gains tax, as respects the year 1996-97 and subsequent years of assessment, and
(b) for the purposes of corporation tax, as respects accounting periods ending on or after the day appointed under section 199 of the Finance Act 1994 for the purposes of Chapter III of Part IV of that Act (self-assessment management provisions),
shall be amended in accordance with the following provisions of this Schedule.
Matters subject to enquiry
2 In each of sections . . . 11AB(1),. . . (matters subject to enquiry), after paragraph (b) there shall be inserted
or
(c) any claim or election included in the return (by amendment or otherwise)
.
Power to call for documents
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Further amendments of section 28A
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Further amendments of section 28B
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Right of appeal against notice disallowing claim in return
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7 In section 50 (procedure on appeals), after subsection (7) there shall be inserted the following subsection—
(7A) If, on appeal, it appears to the Commissioners that a claim or election specified in a notice under section 28A(4A) of this Act should have been allowed or disallowed to an extent different from that specified in the notice, the claim or election shall be allowed or disallowed accordingly to the extent that appears to them appropriate, but otherwise the decision in the notice shall stand good.
Claims not included in returns
8 (1) In Schedule 1A (claims not included in returns), in paragraph 4 (giving effect to claims and amendments), in sub-paragraph (1) for “(1A) and (3)” there shall be substituted “ (1A), (3) and (4) ”.
(2) In sub-paragraph (2) of that paragraph, for “sub-paragraph (3)” there shall be substituted “ sub-paragraphs (3) and (4) ”.
(3) After sub-paragraph (3) there shall be inserted the following sub-paragraph—
(4) Nothing in this paragraph applies in relation to a claim or an amendment of a claim if the claim is not one for discharge or repayment of tax.
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Right of appeal against notice disallowing claim not in return
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(2) In sub-paragraph (2) of that paragraph, for “making of the amendment under paragraph 7(3) above” there shall be substituted “ date mentioned in sub-paragraph (1) above ”.
(3) In sub-paragraph (3) of that paragraph, for “under this paragraph” there shall be substituted “ against an amendment under paragraph 7(3) above ”.
(4) After sub-paragraph (4) of that paragraph there shall be inserted the following sub-paragraph—
(5) If, on appeal, it appears to the Commissioners that a claim specified in a notice under paragraph 7(3A) above should have been allowed or disallowed to an extent different from that specified in the notice, the claim shall be allowed or disallowed accordingly to the extent that appears to them appropriate, but otherwise the decision in the notice shall stand good.
SCHEDULE 20 Self-assessment: discretions exercisable by the Board etc.
Section 134.
The Taxes Act 1988
1 In section 24(2) of the Taxes Act 1988 (presumption as to sums being paid by way of premium unless the contrary is shown) for “is” there shall be substituted “ can be ”.
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4 In section 74(1)(j) of the Taxes Act 1988 (Case I or II of Schedule D: no deduction in respect of debts), in sub-paragraph (i) (deduction allowed for a bad debt proved to be such) the words “proved to be such” shall cease to have effect.
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11 In section 186(10) of the Taxes Act 1988 (value of the proceeds of certain disposals)—
(a) for paragraph (b) there shall be substituted the following paragraph—
(b) any other disposal falling within that subsection is not at arm’s length,
; and
(b) in paragraph (c) for “that sub-paragraph” there shall be substituted “ that subsection ”.
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13 In section 257 of the Taxes Act 1988 (personal allowance)—
(a) in subsection (2) (claimant entitled to deduction if he proves that he is 65 or over), and
(b) in subsection (3) (claimant entitled to deduction if he proves that he is 75 or over),
the words “proves that he” shall cease to have effect.
14 (1) Section 257A of the Taxes Act 1988 (married couple’s allowance) shall be amended in accordance with the following provisions of this paragraph.
(2) In subsection (1) (claimant entitled to reduction if he proves that he is a married man whose wife is living with him) for the words from the beginning to “he is” there shall be substituted “ If the claimant is, for the whole or any part of the year of assessment, ”.
(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
15 In section 257E(1) of the Taxes Act 1988 (claimant entitled to relief if his wife lives with him and he proves that for the year 1989-90 he was entitled as described in paragraph (a) or (b))—
(a) the words “he proves” shall cease to have effect; and
(b) the word “that”, in the first and third places where it occurs in each of paragraphs (a) and (b), shall cease to have effect.
16 (1) Section 257F of the Taxes Act 1988 (transitional relief: effect of preceding sections where claimant who does not live with his wife proves that paragraphs (a) to (c) apply) shall be amended in accordance with the following provisions of this paragraph.
(2) The words “the claimant proves” shall cease to have effect.
(3) In paragraph (a)—
(a) for “that he” there shall be substituted “ the claimant ”; and
(b) the word “that” in the second place where it occurs shall cease to have effect.
(4) In paragraph (b) the word “that” in the first place where it occurs shall cease to have effect.
(5) In paragraph (c) the word “that” in the first and third places where it occurs shall cease to have effect.
17 (1) Section 259 of the Taxes Act 1988 (additional relief in respect of children) shall be amended in accordance with the following provisions of this paragraph.
(2) In subsection (2) (claimant entitled to reduction if he proves that a qualifying child is resident with him) for the words from “if the claimant” to “he shall be entitled” there shall be substituted
if—
(a) the claimant is a person to whom this section applies, and
(b) a qualifying child is resident with him for the whole or a part of a year of assessment,
the claimant shall be entitled
.
(3) In subsection (6) (circumstances in which the reference in subsection (5) to a child receiving full-time instruction includes a child undergoing training for a trade, profession or vocation) the second paragraph (inspector’s power to require particulars of training) shall cease to have effect.
18 In section 261A(1) of the Taxes Act 1988 (person who proves that a qualifying child is resident with him in the year in which he and his wife separate is entitled to relief) for “who proves that a qualifying child is resident with him” there shall be substituted “ with whom a qualifying child is resident ”.
19 In section 265(1) of the Taxes Act 1988 (claimant entitled to blind person’s allowance if he proves that he is a registered blind person) the words “proves that he” shall cease to have effect.
20 In section 274(4) of the Taxes Act 1988 (effect of war insurance premiums on the limit on relief under section 266 or 273) in the second paragraph (definition of war insurance premiums: to include any part of any premium paid in respect of a life insurance policy which appears to the inspector to be attributable to risks arising from war or war service abroad) for “appears to the inspector to be” there shall be substituted “ is ”.
21 In section 278(2) of the Taxes Act 1988 (bar on relief for non-residents not to apply to an individual who satisfies the Board that he or she is a Commonwealth citizen etc) the words “satisfies the Board that he or she” shall cease to have effect.
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24 In section 381(4) of the Taxes Act 1988 (no relief unless it is shown that trade was on a commercial basis) the words “it is shown that” shall cease to have effect.
25 (1) In section 384 of the Taxes Act 1988 (restrictions on right of set-off) in subsection (1) (no relief unless it is shown that trade was on a commercial basis and with a view to the realisation of profits) the words “it is shown that” shall cease to have effect.
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30 In section 503(6) of the Taxes Act 1988 (apportionments where a letting relates only in part to holiday accommodation) for “appear to the inspector, or on appeal the Commissioners, to be” there shall be substituted “ are ”.
31 In section 570(2) of the Taxes Act 1988 (schemes for rationalizing industry: treatment of certain payments made under such schemes)—
(a) the words “on a claim it is shown in accordance with the provisions of Part II of Schedule 21 that” shall cease to have effect;
(b) after “the Tax Acts” there shall be inserted “ and a claim is made to that effect, ”;
(c) for “that Schedule”, where those words first occur, there shall be substituted “ Schedule 21 ”; and
(d) at the end there shall be added—
and paragraph 6 of that Schedule applies for the purposes of this subsection as it applies for the purposes of that Schedule.
32 In section 582(2)(b) of the Taxes Act 1988 (cases where retention of funding bonds is impracticable)—
(a) the words “the Board are satisfied that” shall cease to have effect; and
(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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43 In Schedule 21 to the Taxes Act 1988 (tax relief in connection with schemes for rationalizing industry and other redundancy schemes), paragraph 3 (no relief in respect of payments under schemes unless certain amounts are shown) shall cease to have effect.
The Capital Allowances Act 1990
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The Taxation of Chargeable Gains Act 1992
45 In the following provisions of this Schedule “the Gains Act” means the Taxation of Chargeable Gains Act 1992.
46 In section 30(4) of the Gains Act (section not to apply if it is shown that there was no tax avoidance purpose) for “if it is shown that” there shall be substituted “ in a case where ”.
47 In each of—
(a) subsections (5) and (6) of section 30 of the Gains Act (consideration to be increased or reduced by such amount as appears to the inspector etc to be just and reasonable),
(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
for “appears to the inspector, or on appeal the Commissioners concerned, to be” there shall be substituted “ is ”.
48 In section 48 of the Gains Act (consideration due after time of disposal and irrecoverable consideration) for the words following “if any part of the consideration so brought into account” there shall be substituted “ subsequently proves to be irrecoverable, there shall be made, on a claim being made to that effect, such adjustment, whether by way of discharge or repayment of tax or otherwise, as is required in consequence. ”
49 In section 49 of the Gains Act (contingent liabilities) for subsection (2) (adjustment to be made if it is shown to the satisfaction of the inspector that a contingent liability has become enforceable) there shall be substituted—
(2) If any such contingent liability subsequently becomes enforceable and is being or has been enforced, there shall be made, on a claim being made to that effect, such adjustment, whether by way of discharge or repayment of tax or otherwise, as is required in consequence.
50 In section 52(4) of the Gains Act (apportionments by such method as appears to the inspector etc to be just and reasonable) the words “such method as appears to the inspector or on appeal the Commissioners concerned to be” shall cease to have effect.
51 In section 116(13) of the Gains Act (subsection (12) not to apply where inspector, being satisfied sum is comparatively small, so directs) the words “the inspector is satisfied that” and “and so directs,” shall cease to have effect.
52 (1) In section 122 of the Gains Act (distribution which is not a new holding) in subsection (2) (treatment of distributions which the inspector is satisfied are comparatively small) the words “the inspector is satisfied that” and “and so directs” shall cease to have effect.
(2) Subsection (3) of that section (appeals from decisions of inspectors under subsection (2)) shall cease to have effect.
(3) In subsection (4)(a) of that section (subsections (2) and (3) not to apply in certain cases) for “subsections (2) and (3)” there shall be substituted “ subsection (2) ”.
53 (1) In section 133 of the Gains Act (premiums on conversion of securities) in subsection (2) (treatment of premiums which the inspector is satisfied are comparatively small) the words “the inspector is satisfied that” and “and so directs” shall cease to have effect.
(2) Subsection (3) of that section (appeals from decisions of inspectors under subsection (2)) shall cease to have effect.
(3) In subsection (4)(a) of that section (subsections (2) and (3) not to apply in certain cases) for “subsections (2) and (3)” there shall be substituted “ subsection (2) ”.
54 In each of sections 150(10)(a) and 150A(9)(a) of the Gains Act (reductions in relief to be apportioned in such a way as appears to the inspector etc to be just and reasonable) for “such a way as appears to the inspector, or on appeal to the Commissioners concerned, to be” there shall be substituted “ a way which is ”.
55 In section 164F(8)(a) of the Gains Act (section not to apply where it is shown that winding up etc is bona fide) the words “it is shown that” shall cease to have effect.
56 In section 164FG of the Gains Act (multiple claims for reductions under section 164A(2) or 164F(10A) of the Gains Act) in subsection (2) (reductions to be treated as claimed separately in such sequence as the claimant elects or an officer of the Board in default of an election determines) the words “or an officer of the Board in default of an election determines” shall cease to have effect.
57 (1) In each of subsections (4) and (6) of section 176 of the Gains Act (losses or gains on disposals where there have been depreciatory transactions to be reduced to such extent as appears to the inspector etc to be just and reasonable) for “appears to the inspector, or, on appeal, the Commissioners concerned, to be” there shall be substituted “ is ”.
(2) In subsection (5) of that section (footing on which decision under subsection (4) is to be made) for “The inspector or the Commissioners shall make the decision under subsection (4) above” there shall be substituted “ A reduction under subsection (4) above shall be made ”.
58 In section 181(1)(b) of the Gains Act (sections 178 and 179 not to apply where it is shown that merger was bona fide) the words “it is shown that”, and the word “that” in the second place where it occurs, shall cease to have effect.
59 (1) Section 222 of the Gains Act (relief on disposal of residence and land up to the permitted area, which is 0.5 of a hectare) shall be amended in accordance with the following provisions of this paragraph.
(2) For subsection (3) (which provides for the permitted area in certain cases to be such area, larger than 0.5 of a hectare, as the Commissioners may determine) there shall be substituted—
(3) Where the area required for the reasonable enjoyment of the dwelling-house (or of the part in question) as a residence, having regard to the size and character of the dwelling-house, is larger than 0.5 of a hectare, that larger area shall be the permitted area.
(3) In subsection (5) (determination of individual’s main residence)—
(a) paragraph (b) (which, subject to conclusive notice by the individual under paragraph (a), provides for the question to be determined by an inspector), and
(b) the words following that paragraph (right of appeal against inspector’s determination),
shall cease to have effect.
(4) In subsection (6), paragraph (b) (further provision about the right of appeal against determinations under subsection (5)(b)) and the word “and” immediately preceding it shall cease to have effect.
60 In section 224(2) of the Gains Act (adjustment of relief given by section 223 for changes occurring during period of ownership) for “may be adjusted in such manner as the Commissioners concerned may consider to be just and reasonable” there shall be substituted “ may be adjusted in a manner which is just and reasonable ”.
61 In section 226 of the Gains Act (relief in respect of private residence occupied by dependent relative before 6th April 1988) subsection (5) (power of inspector, before granting a claim for relief under that section, to require claimant to show that granting the claim will not preclude relief to claimant’s wife or husband) shall cease to have effect.
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63 (1) In section 271 of the Gains Act (miscellaneous exemptions) in subsections (1)(g) and (2), for “such extent as the Board are satisfied” there shall be substituted “ the extent ”.
(2) In subsection (2) of that section, in the second paragraph, the words “the Board are satisfied that” shall cease to have effect.
64 In section 279(1) of the Gains Act (claimant for deduction in respect of gains accruing from the disposal of foreign assets must show that conditions in subsection (3) are satisfied) for paragraph (b) there shall be substituted—
(b) the person charged or chargeable makes a claim, and
(c) the conditions set out in subsection (3) below are, so far as applicable, satisfied as respects those gains (“the qualifying gains”);
.
65 In section 280 of the Gains Act (payment of tax by instalments where consideration payable by instalments) for “if the person making the disposal satisfies the Board that he would otherwise suffer undue hardship, the tax on a chargeable gain accruing on the disposal may, at his option,” there shall be substituted “ at the option of the person making the disposal, the tax on a chargeable gain accruing on the disposal may ”.
66 (1) Schedule 6 to the Gains Act (retirement relief) shall be amended in accordance with the following provisions of this paragraph.
(2) In paragraph 3, in sub-paragraphs (1), (3) and (4) (under each of which a person is treated as having retired on ill-health grounds if, on production of such evidence as the Board may reasonably require, the Board are satisfied as there mentioned)—
(a) the words “on production of such evidence as the Board may reasonably require, the Board are satisfied” shall cease to have effect, and
(b) for “that he” (in each place where those words occur) there shall be substituted “ he ”.
(3) At the end of that paragraph there shall be added—
(5) In any case where—
(a) an officer of the Board gives notice to any person under section 9A(1) of, or paragraph 5(1) of Schedule 1A to, the Management Act (notice of intention to enquire into a return or claim or an amendment of a return or claim), and
(b) the enquiry to any extent relates to the question whether or not a person falls to be treated as having retired on ill-health grounds by virtue of the foregoing provisions of this paragraph,
then, without prejudice to any other powers of such an officer in relation to such an enquiry, an officer of the Board may at the same or any subsequent time by notice in writing require that person, within such time (which shall not be less than 30 days) as may be specified in the notice, to produce such evidence relating to the question mentioned in paragraph (b) above as may reasonably be specified in the notice.
(4) In paragraph 10 (limitation of retirement relief in certain cases)—
(a) in sub-paragraph (1) for “appears to the Board to be” there shall be substituted “ is ”; and
(b) in sub-paragraph (2) for “the Board shall have regard” there shall be substituted “ regard shall be had ”.
67 In Schedule 8 to the Gains Act (leases) in paragraph 10(2) (presumption as to sums being paid by way of premium unless the contrary is shown) for the words following “in so far as” there shall be substituted “ other sufficient consideration for the payment can be shown to have been given ”.
The Finance Act 1993
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The Finance Act 1994
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Section 135.
The Taxes Act 1988
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8 (1) Section 356B of the Taxes Act 1988 (residence basis: married couples) shall be amended in accordance with the following provisions of this paragraph.
(2) In subsection (2)(a) (election to be made before the end of the period of twelve months beginning with the end of the first year of assessment for which it is made or such longer period as the Board may in any particular case allow) for the words following “shall be made” there shall be substituted
on or before—
(i) the first anniversary of the 31st January next following the first year of assessment for which it is made, or
(ii) such later date as the Board may in any particular case allow,
.
(3) In subsection (4)(b) (notice of withdrawal not to be given after the end of the period of twelve months beginning with the end of the first year of assessment for which it is given or such longer period as the Board may in any particular case allow) for the words following “shall not be given after” there shall be substituted—
(i) the first anniversary of the 31st January next following the year of assessment for which it is given, or
(ii) such later date as the Board may in any particular case allow, and
.
9 In section 356C(6) of the Taxes Act 1988, for paragraph (a) (election to have effect for the period in which it is made and subsequent periods) there shall be substituted—
(a) shall be made on or before the first anniversary of the 31st January next following the year of assessment in which falls the first period for which it is made and shall have effect for that period and subsequent periods,
.
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12 In section 471 of the Taxes Act 1988 (exchange of securities in connection with conversion operations, nationalisation etc.) for subsection (2) (tax treatment under subsection (1) not to apply to a person who gives notice to the inspector that he desires not to be treated as mentioned in that subsection) there shall be substituted—
(2) Subsection (1) above shall not apply to a person who elects, by notice given to an officer of the Board, not to be treated as mentioned in that subsection.
(2A) A notice under subsection (2) above—
(a) for the purposes of income tax, shall be given on or before the first anniversary of the 31st January next following the year of assessment in whose basis period the exchange takes place;
(b) for the purposes of corporation tax, shall be given no later than two years after the end of the accounting period in which the exchange takes place.
(2B) In paragraph (a) of subsection (2A) above “basis period” means—
(a) in relation to a year of assessment for which a basis period is given by sections 60 to 63, that basis period;
(b) in relation to a year of assessment for which no basis period is given by those sections, the year of assessment.
13 (1) In section 472 of the Taxes Act 1988 (distribution of securities issued in connection with nationalisation etc.) in subsection (1) (dealer to be treated for tax purposes in the manner specified in subsections (2) and (3), unless he gives notice to the inspector that he desires not to be so treated) for “gives notice to the inspector not later than two years after the end of the chargeable period in which the distribution takes place that he desires” there shall be substituted “ elects, by notice given to an officer of the Board, ”.
(2) After subsection (3) of that section there shall be inserted—
(3A) A notice under subsection (1) above—
(a) for the purposes of income tax, shall be given on or before the first anniversary of the 31st January next following the year of assessment in whose basis period the distribution takes place;
(b) for the purposes of corporation tax, shall be given no later than two years after the end of the accounting period in which the distribution takes place.
(3B) In paragraph (a) of subsection (3A) above “basis period” means—
(a) in relation to a year of assessment for which a basis period is given by sections 60 to 63, that basis period;
(b) in relation to a year of assessment for which no basis period is given by those sections, the year of assessment.
14 (1) Section 504 of the Taxes Act 1988 shall be amended in accordance with the following provisions of this paragraph.
(2) In subsection (6) (claim to be made within two years after the year of assessment or accounting period in which holiday accommodation is let) for “two years after that year or period” there shall be substituted “ the time specified in subsection (6A) below ”.
(3) After subsection (6) there shall be inserted—
(6A) The time mentioned in subsection (6) above is—
(a) in the case of a claim for the purposes of income tax, the period ending with the first anniversary of the 31st January next following the year of assessment in which the accommodation was let;
(b) in the case of a claim for the purposes of corporation tax, the period of two years beginning at the end of the accounting period in which the accommodation was let.
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24 In Schedule 11 to the Taxes Act 1988, in paragraph 12 (election to be made by notice given to the inspector within six years after the year of assessment in which payment made) for “the inspector within six years after” there shall be substituted “ an officer of the Board on or before the fifth anniversary of the 31st January next following ”.
The Finance Act 1988 (c. 39)
25 In section 39(2)(b) of the Finance Act 1988 (election to be made not later than twelve months after the end of the first year of assessment for which it is to have effect) for “not later than twelve months after the end of” there shall be substituted “ on or before the first anniversary of the 31st January next following ”.
The Capital Allowances Act 1990 (c. 1)
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The Taxation of Chargeable Gains Act 1992 (c. 12)
35 In section 35(6) of the Taxation of Chargeable Gains Act 1992 (elections under section 35(5) to be made by notice to the inspector within period ending 2 years after the end of the year of assessment or accounting period in which the disposal is made or at such later time as the Board may allow)—
(a) for “the inspector” there shall be substituted “ an officer of the Board ”; and
(b) for paragraphs (a) and (b) there shall be substituted—
(a) in the case of an election for the purposes of capital gains tax, with the first anniversary of the 31st January next following the year of assessment in which the disposal is made;
(aa) in the case of an election for the purposes of corporation tax, 2 years after the end of the accounting period in which the disposal is made; or
(b) in either case, at such later time as the Board may allow;
.
36 In section 161 of the Taxation of Chargeable Gains Act 1992 (appropriations to and from stock) after subsection (3) there shall be inserted—
(3A) An election under subsection (3) above shall be made—
(a) for the purposes of capital gains tax, on or before the first anniversary of the 31st January next following the year of assessment in which ends the period of account in which the asset is appropriated for the purposes of the trade as trading stock;
(b) for the purposes of corporation tax, within 2 years after the end of the accounting period in which the asset is appropriated for the purposes of the trade as trading stock;
and in paragraph (a) above “period of account” means a period for which the accounts of the trade are made up.
37 In section 242 of the Taxation of Chargeable Gains Act 1992 (small part disposals) after subsection (2) there shall be inserted—
(2A) A claim under subsection (2) above shall be made—
(a) for the purposes of capital gains tax, on or before the first anniversary of the 31st January next following the year of assessment in which the transfer is made;
(b) for the purposes of corporation tax, within 2 years after the end of the accounting period in which the transfer is made.
38 In section 243 of the Taxation of Chargeable Gains Act 1992 (part disposal to authority with compulsory powers) after subsection (2) there shall be inserted—
(2A) A claim under subsection (2) above shall be made—
(a) for the purposes of capital gains tax, on or before the first anniversary of the 31st January next following the year of assessment in which the transfer is made;
(b) for the purposes of corporation tax, within 2 years after the end of the accounting period in which the transfer is made.
39 In section 244 of the Taxation of Chargeable Gains Act 1992 (part disposal: consideration exceeding allowable expenditure) after subsection (2) there shall be inserted—
(3) An election under subsection (2)(b) above shall be made—
(a) for the purposes of capital gains tax, on or before the first anniversary of the 31st January next following the year of assessment in which the part disposal is made;
(b) for the purposes of corporation tax, within 2 years after the end of the accounting period in which the part disposal is made.
40 In section 253 of the Taxation of Chargeable Gains Act 1992 (relief for loans to traders) after subsection (4) there shall be inserted—
(4A) A claim under subsection (4) above shall be made—
(a) for the purposes of capital gains tax, on or before the fifth anniversary of the 31st January next following the year of assessment in which the payment was made;
(b) for the purposes of corporation tax, within 6 years after the end of the accounting period in which the payment was made.
41 In section 279 of the Taxation of Chargeable Gains Act 1992 (foreign assets: delayed remittances) for subsection (5) (no claim under section 279 to be made more than 6 years after end of year of assessment in which chargeable gain accrues) there shall be substituted—
(5) No claim under this section in respect of a chargeable gain shall be made—
(a) in the case of a claim for the purposes of capital gains tax, at any time after the fifth anniversary of the 31st January next following the year of assessment in which the gain accrues; or
(b) in the case of a claim for the purposes of corporation tax, more than 6 years after the end of the accounting period in which the gain accrues.
42 (1) Schedule 2 to the Taxation of Chargeable Gains Act 1992 shall be amended in accordance with the following provisions of this paragraph.
(2) In paragraph 4 (election for pooling) in sub-paragraph (11) (election to be made by notice to the inspector not later than the expiration of 2 years from the end of the year of assessment or accounting period of a company in which the first relevant disposal is made, or such further time as the Board may allow) for the words following “notice to” there shall be substituted
an officer of the Board given—
(a) in the case of an election for the purposes of capital gains tax, on or before the first anniversary of the 31st January next following the year of assessment in which the first relevant disposal is made;
(b) in the case of an election for the purposes of corporation tax, not later than the expiration of 2 years from the end of the accounting period in which the first relevant disposal is made; or
(c) in either case, within such further time as the Board may allow.
(3) In paragraph 17 (election for valuation at 6th April) in sub-paragraph (3) (election to be made by notice to the inspector given within 2 years from the end of the year of assessment or accounting period of a company in which the disposal is made, or such further time as the Board may by notice allow) for the words following “by notice to” there shall be substituted
an officer of the Board given—
(a) in the case of an election for the purposes of capital gains tax, on or before the first anniversary of the 31st January next following the year of assessment in which the disposal is made;
(b) in the case of an election for the purposes of corporation tax, within 2 years from the end of the accounting period in which the disposal is made; or
(c) in either case, within such further time as the Board may by notice allow.
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44 (1) Schedule 6 to the Taxation of Chargeable Gains Act 1992 (retirement relief etc.) shall be amended in accordance with the following provisions of this paragraph.
(2) In paragraph 2(1) (election to be made by notice given to the Board not more than 2 years after the end of the year of assessment in which the disposal occurred) for “not more than 2 years after the end of” there shall be substituted “ on or before the first anniversary of the 31st January next following ”.
(3) In paragraph 5(2) (claim for relief to be made not later than 2 years after the end of the year of assessment in which the disposal occurred) for “not later than 2 years after the end of” there shall be substituted “ on or before the first anniversary of the 31st January next following ”.
(4) In paragraph 12(5)(b) (election to be made by giving notice to the inspector not later than 2 years after the end of the year of assessment in which capital distribution received)—
(a) for “not later than 2 years after the end of” there shall be substituted “ on or before the first anniversary of the 31st January next following ”; and
(b) for “the inspector” there shall be substituted “ an officer of the Board ”.
(5) In paragraph 16 (aggregation of spouse’s interest in the business: election to be made by giving notice to the inspector not later than 2 years after the end of the year of assessment in which material disposal occurred)—
(a) in sub-paragraph (1)(e) for “not later than 2 years after the end of” there shall be substituted “ on or before the first anniversary of the 31st January next following ”; and
(b) in sub-paragraph (2) for “the inspector” there shall be substituted “ an officer of the Board ”.
The Finance (No. 2) Act 1992 (c. 48)
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The Finance Act 1994 (c. 9)
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Section 136.
The Taxes Management Act 1970
1 The Taxes Management Act 1970 shall be amended in accordance with paragraphs 2 to 10 below.
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5 In section 33A (error or mistake in partnership statement), for subsection (8) there shall be substituted the following subsections—
(8) Subject to subsection (8A) below, the determination of the Special Commissioners of an appeal under subsection (6) above shall be final and conclusive (notwithstanding any provision having effect by virtue of section 56B of this Act).
(8A) Subsection (8) above does not apply in relation to a point of law arising in connection with the computation of profits.
6 Section 42(12) and Schedule 2 (Commissioners to whom appeal lies where appeal is against amendment of claim not included in return) shall be omitted.
7 For section 47 there shall be substituted the following sections—
Questions to be determined by Special Commissioners.
46B (1) In so far as the question in dispute on an appeal to which this section applies is a question which under this section is to be determined by the Special Commissioners, the question shall be determined by them.
(2) This section applies to—
(a) an appeal against an amendment under section 28A(2) or (4) of this Act of a self-assessment;
(b) an appeal against a decision contained in a notice under section 28A(4A) of this Act disallowing a claim or election in whole or in part;
(c) an appeal against an amendment under section 28B(3) or 30B(1) of this Act of a partnership statement;
(d) an appeal against an assessment to tax which is not a self-assessment;
(e) an appeal against an amendment under paragraph 7(3) of Schedule 1A to this Act of a claim or election made otherwise than by being included in a return;
(f) an appeal against a decision contained in a notice under paragraph 7(3A) of Schedule 1A to this Act disallowing in whole or in part a claim or election made otherwise than by being included in a return.
(3) Any question—
(a) of the value of any shares or securities in a company resident in the United Kingdom, other than shares or securities quoted in The Stock Exchange Daily Official List, and
(b) arising in relation to the taxation of chargeable gains (whether under capital gains tax or corporation tax) or in relation to a claim under the 1992 Act,
is a question to be determined by the Special Commissioners.
(4) Any question as to the application of any of the following provisions of the principal Act is a question to be determined by the Special Commissioners—
(a) Chapter IA or IB of Part XV (settlements);
(b) Part XVI (administration of estates);
(c) sections 740 and 743(1) (liability in respect of transfer of assets abroad);
(d) section 747(4)(a) (liability in respect of controlled foreign company).
(5) Any question as to the application of—
(a) section 830 of the principal Act, or
(b) section 276 of the 1992 Act,
(liability in relation to territorial sea and designated areas) is a question to be determined by the Special Commissioners.
Jurisdiction of Special Commissioners over certain claims included in returns.
46C (1) In so far as the question in dispute on an appeal to which this section applies concerns a claim made—
(a) to the Board, or
(b) under any of the provisions of the principal Act listed in subsection (3) below,
the question shall be determined by the Special Commissioners.
(2) This section applies to—
(a) an appeal against an amendment under section 28A(2) or (4) of this Act of a self-assessment;
(b) an appeal against an amendment under section 28B(3) or 30B(1) of this Act of a partnership statement.
(3) The provisions of the principal Act mentioned in subsection (1) above are—
(a) section 121(1) and (2) (management expenses of owner of mineral rights);
(b) sections 459 and 460 (exemption for certain friendly societies);
(c) section 467 (exemption for certain trade unions and employers’ associations);
(d) sections 527, 534, 536 and 538 (reliefs in respect of royalties, copyright payments etc.);
(e) Chapter I of Part XVIII.
Questions to be determined by Lands Tribunal.
46D (1) In so far as the question in dispute on an appeal to which this section applies—
(a) is a question of the value of any land or of a lease of land, and
(b) arises in relation to the taxation of chargeable gains (whether under capital gains tax or corporation tax) or in relation to a claim under the 1992 Act,
the question shall be determined by the relevant Lands Tribunal.
(2) This section applies to—
(a) an appeal against an amendment under section 28A(2) or (4) of this Act of a self-assessment;
(b) an appeal against a decision contained in a notice under section 28A(4A) of this Act disallowing a claim or election in whole or in part;
(c) an appeal against an amendment under section 28B(3) or 30B(1) of this Act of a partnership statement;
(d) an appeal against an assessment to tax which is not a self-assessment;
(e) an appeal against an amendment under paragraph 7(3) of Schedule 1A to this Act of a claim or election made otherwise than by being included in a return;
(f) an appeal against a decision contained in a notice under paragraph 7(3A) of Schedule 1A to this Act disallowing in whole or in part a claim or election made otherwise than by being included in a return.
(3) In this section “the relevant Lands Tribunal” means—
(a) in relation to land in England and Wales, the Lands Tribunal;
(b) in relation to land in Scotland, the Lands Tribunal for Scotland;
(c) in relation to land in Northern Ireland, the Lands Tribunal for Northern Ireland.
8 In section 57(3)(c) (power to make regulations authorising conditional decisions where more than one tribunal is determining questions in the proceedings), for “section 47” there shall be substituted “ section 46B, 46C or 46D ”.
9 In Schedule 1A (claims not included in returns), after paragraph 9 there shall be inserted the following paragraphs—
10 An appeal against an amendment under paragraph 7(3) above of a claim made—
(a) to the Board,
(b) under Part XVI of the principal Act (administration of estates), or
(c) under any of the provisions of the principal Act listed in section 46C(3) of this Act,
shall be to the Special Commissioners.
11 (1) Subject to paragraph 10 above and the following provisions of this paragraph, an appeal under paragraph 9(1) above shall be to the General Commissioners.
(2) The appellant may elect (in accordance with section 46(1) of this Act) to bring the appeal before the Special Commissioners.
(3) Such an election shall be disregarded if—
(a) the appellant and the officer of the Board agree in writing, at any time before the determination of the appeal, that it is to be disregarded; or
(b) the General Commissioners have given a direction under sub-paragraph (5) below and have not revoked it.
(4) At any time before the determination of an appeal in respect of which an election has been made an officer of the Board after giving notice to the appellant may refer the election to the General Commissioners.
(5) On any such reference the Commissioners shall, unless they are satisfied that the appellant has arguments to present or evidence to adduce on the merits of the appeal, give a direction that the election be disregarded.
(6) If, at any time after the giving of such a direction (but before the determination of the appeal) the General Commissioners are satisfied that the appellant has arguments to present or evidence to adduce on the merits of the appeal, they shall revoke the direction.
(7) Any decision to give or revoke such a direction shall be final.
(8) If—
(a) a person bringing an appeal under paragraph 9(1) above has another appeal pending to either body of Commissioners concerning an assessment on him, and
(b) the appeals relate to the same source of income,
the appeal under paragraph 9(1) above shall be to the body of Commissioners before whom the appeal concerning the assessment is being brought.
(9) This paragraph is subject to provision made by or under Part V of this Act.
10 The following Schedule shall be substituted for Schedule 3—
SCHEDULE 3
Rules for assigning proceedings to General Commissioners
Introductory
1 In this Schedule—
“the relevant place” means the place referred to in section 44(1) of this Act, which is used to identify the General Commissioners before whom proceedings are to be brought; and
“the taxpayer”, in relation to any proceedings, means the party to the proceedings who is neither the Board nor an officer of the Board.
General rule for income and capital gains tax proceedings
2 (1) In the case of any proceedings relating to income tax or capital gains tax the relevant place is whichever of the places specified in sub-paragraph (2) below is identified—
(a) except where the proceedings are commenced by an officer of the Board, by an election made by the taxpayer; and
(b) where the proceedings are so commenced, by an election made by the officer.
(2) Those places are—
(a) the place (if any) in the United Kingdom which, at the time when the election is made, is the taxpayer’s place of residence;
(b) the place (if any) which at that time is the taxpayer’s place of business in the United Kingdom;
(c) the place (if any) in the United Kingdom which at that time is the taxpayer’s place of employment;
and, in the case of a place of employment, it shall be immaterial for the purposes of this paragraph whether the proceedings in question relate to matters connected with the employment of the taxpayer.
(3) Where the taxpayer fails to make an election for the purposes of this paragraph before the time limit given by paragraph 5 below, an officer of the Board may elect which of the places specified in sub-paragraph (2) above is to be the relevant place.
(4) In sub-paragraph (2)(a) above “place of residence” means—
(a) in relation to an election made by the taxpayer, his usual place of residence; and
(b) in relation to an election made by an officer of the Board, the taxpayer’s usual place of residence or, if that is unknown, his last known place of residence.
(5) In sub-paragraph (2)(b) above “place of business” means—
(a) the place where the trade, profession, vocation or business with which the proceedings are concerned is carried on, or
(b) if the trade, profession, vocation or business is carried on at more than one place, the head office or place where it is mainly carried on.
(6) This paragraph does not apply in the case of any proceedings to which paragraph 3, 4 or 7 below applies.
PAYE appeals
3 (1) In the case of an appeal in exercise of a right of appeal conferred by regulations under section 203 of the principal Act, the relevant place is—
(a) except in a case falling in paragraph (b) below, the place determined by the regulations, and
(b) if the appellant elects for one of the places specified in paragraph 2(2) above to be the relevant place instead, the place identified by the election.
(2) This paragraph does not apply in the case of any proceedings to which paragraph 4 or 7 below applies.
Corporation tax etc.
4 (1) In the case of the proceedings mentioned in sub-paragraph (2) below the relevant place is whichever of the places specified in sub-paragraph (3) below is identified—
(a) except where the proceedings are commenced by an officer of the Board, by an election made by the company or other body corporate which is a party to the proceedings (“the corporate taxpayer”); and
(b) where the proceedings are so commenced, by an election made by the officer.
(2) The proceedings are—
(a) proceedings relating to corporation tax;
(b) proceedings relating to income tax which are proceedings to which a company resident in the United Kingdom and within the charge to corporation tax is a party;
(c) proceedings relating to tax assessable under sections 419 and 420 of the principal Act (close company loans).
(3) The places are—
(a) the place where, at the time when the election is made, the corporate taxpayer carries on its trade or business;
(b) the place where, at that time, the head office or principal place of business of the corporate taxpayer is situated;
(c) the place where, at that time, the corporate taxpayer resides.
(4) Where the corporate taxpayer fails to make an election for the purposes of this paragraph before the time limit given by paragraph 5 below, an officer of the Board may elect which of the places specified in sub-paragraph (3) above is to be the relevant place.
(5) This paragraph does not apply in the case of any proceedings to which paragraph 7 below applies.
Procedure for making elections, etc.
5 (1) An election by a taxpayer for the purposes of this Schedule shall be made by notice in writing to an officer of the Board.
(2) The time limit for the making of such an election in relation to proceedings is—
(a) the time when the taxpayer gives notice of appeal or, if the proceedings are not an appeal, otherwise commences the proceedings; or
(b) such later date as the Board allows.
(3) Such an election shall be irrevocable.
6 An election by an officer of the Board for the purposes of this Schedule shall be made by notice in writing served on the taxpayer.
Partnerships
7 In the case of proceedings relating to a partnership to which a partner of that partnership is a party, the relevant place is—
(a) the place where the trade, profession or business of the partnership is carried on, or
(b) if the trade, profession or business is carried on at more than one place, the place where it is mainly carried on.
Directions by the Board
8 (1) The Board may give a direction in relation to any class of proceedings specified in the direction that, notwithstanding the preceding provisions of this Schedule, the relevant place shall be taken to be a place in a division specified in the direction.
(2) A direction given under this paragraph shall not have effect in relation to any proceedings unless an officer of the Board has served on the taxpayer a notice in writing stating the effect of the direction in relation to those proceedings.
(3) A direction given under this paragraph shall not have effect if the taxpayer gives a notice in accordance with sub-paragraph (4) below objecting to the direction.
(4) The taxpayer gives a notice in accordance with this sub-paragraph if he gives it in writing to the Board within the period of 30 days beginning with the day on which the notice under sub-paragraph (2) above was served on him.
9 (1) The Board may give directions for determining the relevant place in cases where —
(a) the proceedings fall within paragraph 2, 4 or 7 above, but there is no place falling within paragraph 2(2), 4(3) or, as the case may be, paragraph 7; or
(b) the relevant place would, apart from the direction, be a place outside the United Kingdom.
(2) A direction given under this paragraph by the Board shall not have effect in relation to any proceedings unless an officer of the Board has served on the taxpayer a notice in writing stating the effect of the direction in relation to those proceedings.
(3) A direction under sub-paragraph (1) above may be given in relation to—
(a) proceedings falling within that sub-paragraph;
(b) any class of such proceedings specified in the direction; or
(c) proceedings specified in the direction.
Other provisions
10 The provisions of this Schedule have effect subject to sections 44(2), 46A and 57 of this Act, sections 102(1), 113(5), 343(10) and 783(9) of the principal Act and section 151 of the Capital Allowances Act 1990.
Section 102 of the Taxes Act 1988
11 In section 102(1)(a) of the Taxes Act 1988 (cases where jurisdiction exercised by General Commissioners) for “both the trades, professions or vocations” there shall be substituted “ each of the persons whose trade, profession or vocation is one of those ”.
Commencement of Schedule
12 This Schedule has effect in relation to—
(a) any proceedings relating to the year 1996-97 or any subsequent year of assessment, and
(b) any proceedings relating to an accounting period ending on or after the day appointed under section 199 of the Finance Act 1994 for the purposes of Chapter III of Part IV of that Act (self-assessment).
SCHEDULE 24 Self-assessment: accounting periods etc.
Section 138.
Part I Amendments of the Taxes Management Act 1970
Introductory
1 The Taxes Management Act 1970 shall be amended in accordance with this Part of this Schedule.
2 In section 11 (return of profits), after subsection (9) there shall be inserted the following subsection—
(10) In the following provisions of this Act “section 11 notice” means a notice under this section.
Power to enquire into return for wrong period, etc.
3 In section 11AA (return of profits to include self-assessment), after subsection (4) there shall be inserted the following subsections—
(5) This section, except subsection (4) above, applies in relation to a return for a period—
(a) which ends in or at the end of the period specified in the section 11 notice;
(b) which in the return is treated as an accounting period; but
(c) which is not, or may not be, an accounting period.
(6) In relation to such a return, “the filing date” means, in this section and section 11AB of this Act, the day which would be the day mentioned in section 11(4) of this Act if the period for which the return is made were an accounting period.
4 (1) In section 11AB(1) (power to enquire into return of profits), after paragraph (c) (which is inserted by paragraph 2 of Schedule 19 to this Act), there shall be inserted
or
(d) if it appears to the officer that a return delivered in response to a section 11 notice—
(i) is or may be a return for the wrong period, or
(ii) has become a return for the wrong period as a result of a direction under section 12(5A) of the principal Act,
the period for which the return should have been made;
.
(2) After subsection (3) of that section there shall be inserted the following subsections—
(4) For the purposes of subsection (1)(d) above a return is a return for the wrong period in each of the cases set out below.
(5) The first case is where—
(a) the return is made for a period which ends in or at the end of the period specified in the section 11 notice and which in the return is treated as an accounting period; but
(b) the period for which the return is made is not an accounting period of the company.
(6) The second case is where—
(a) the return is made for a part of the period specified in the section 11 notice which in the return is treated as not falling within an accounting period of the company; but
(b) there is an accounting period ending in or at the end of the period specified in the section 11 notice.
5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Amendment of return for wrong period
6 After section 28A there shall be inserted the following sections—
Amendment of return of profits made for wrong period.
28AA (1) Where an officer of the Board gives notice under section 11AB(1) of this Act to a company of his intention to enquire into the period for which a return should have been made, the officer’s enquiries shall be treated as completed at such time as he by notice—
(a) informs the company that he has completed his enquiries; and
(b) states his conclusions on the subject of his enquiries.
(2) Subsections (3) and (4) below apply where the officer in the conclusions stated under subsection (1) above designates a period, in accordance with subsections (6) to (8) below, as the accounting period for which the return should have been made.
(3) At any time in the period of 30 days beginning with the day on which the officer’s enquiries are completed, the company may amend the return for the purpose of making it a return appropriate to the designated period.
(4) At any time in the period of 30 days beginning immediately after the period mentioned in subsection (3) above, the officer may by notice to the company amend the return for the purpose of making it a return appropriate to the designated period.
(5) The power under subsections (3) and (4) above to amend a return includes the power to amend a self-assessment so as to make clear that it is a self-assessment for the designated period.
(6) If there is only one accounting period ending in or at the end of the period specified in the section 11 notice, the only period which the officer may designate is that period.
(7) If there is more than one accounting period ending in or at the end of the period specified in the section 11 notice, the only period which the officer may designate is the earliest of those accounting periods for which no return has been delivered.
(8) In designating a period, the officer must specify the dates on which the period begins and ends.
Provisions supplementary to section 28AA.
28AB (1) On an application made by the company, the Commissioners shall direct the officer to give a notice under section 28AA(1) of this Act within a period specified in the direction, unless they are satisfied that the officer has reasonable grounds for not giving such a notice.
(2) Proceedings under subsection (1) above shall be heard and determined in the same way as an appeal.
(3) An appeal may be brought against an amendment made under section 28AA(4) of this Act within the period of 30 days beginning with the date on which the notice of the amendment was issued.
(4) The provisions of this Act relating to appeals shall have effect in relation to an appeal under subsection (3) above as they have effect in relation to an appeal against an assessment to tax.
(5) Subsection (6) below applies where—
(a) a return is delivered in response to a section 11 notice;
(b) following a statement of conclusions under section 28AA of this Act, a period is finally determined to be the accounting period for which the return should have been made;
(c) the effect of the determination is that there is a period (“a further period”) which—
(i) before the determination was not an accounting period ending in or at the end of the period specified in the section 11 notice, and
(ii) as a result of the determination, becomes a period so ending;
and
(d) there is no return which can be amended under section 28AA of this Act so as to become a return for that further period.
(6) Where this subsection applies, the section 11 notice shall be taken to require a return for the further period before the postponed final day.
(7) The postponed final day is whichever is the later of—
(a) the final day determined under section 11(4) of this Act; and
(b) the last day of the period of 30 days beginning with the day on which the accounting period for the return mentioned in subsection (5)(a) above is finally determined.
(8) In relation to any return for the further period the provisions of this Act shall have effect as if any reference to the filing date in relation to that return were a reference to the postponed final day.
Failure to deliver return: determinations
7 After section 28C there shall be inserted the following sections—
Determination of corporation tax where no return delivered.
28D (1) Where—
(a) a section 11 notice has been served on a company, and
(b) no return is delivered to an officer of the Board in response to the notice before the relevant day,
the officer may make a determination of the amounts in which, to the best of his information and belief, the company is chargeable to corporation tax for the relevant period.
(2) In subsection (1) above “the relevant period” means—
(a) if there is only one accounting period ending in or at the end of the period specified in the section 11 notice, that accounting period;
(b) if there is more than one accounting period ending in or at the end of the period so specified, each of those accounting periods;
(c) if the officer has insufficient information to identify the accounting periods of the company, such period or periods ending in or at the end of the period so specified as he may determine.
(3) Subject to subsections (4) and (5) below, a determination under subsection (1) above shall have effect for the purposes of Parts VA, VI, IX and XI of this Act as if—
(a) it were a self-assessment made under section 11AA of this Act; and
(b) (where subsection (2)(c) above applies) the period for which the determination is made were an accounting period of the company.
(4) If—
(a) the company delivers a return for a period ending in or at the end of the period specified in the section 11 notice,
(b) the period is, or is treated in the return as, an accounting period, and
(c) the return includes a self-assessment under section 11AA of this Act,
the self-assessment shall supersede the determination under subsection (1) above or, if there is more than one determination under that subsection, the determination for the period which is, or most closely approximates to, the period for which the return is made.
(5) If the company shows—
(a) that there is no period ending in or at the end of the period specified in the section 11 notice which is an accounting period of the company, or
(b) that it has delivered a return containing a self-assessment for the accounting period, or each accounting period, ending in or at the end of the period specified in the section 11 notice,
any determination under subsection (1) above shall be of no effect.
Determination of corporation tax where notice complied with in part.
28E (1) Where—
(a) a company delivers a return for an accounting period ending in or at the end of the period specified in a section 11 notice served on the company, but
(b) there is another period so ending (an “outstanding period”) which it appears to an officer of the Board is or may be an accounting period but for which no return has been delivered before the relevant day,
the officer may make a determination of the amounts in which, to the best of his information and belief, the company is chargeable to corporation tax for the outstanding period.
(2) Subject to subsections (3) and (4) below, a determination under subsection (1) above shall have effect for the purposes of Parts VA, VI, IX and XI of this Act as if—
(a) it were a self-assessment made under section 11AA of this Act; and
(b) where the officer has insufficient information to determine whether the outstanding period is an accounting period, the period for which the determination is made were an accounting period of the company.
(3) If, after the determination is made—
(a) the company delivers a further return for a period ending in or at the end of the period specified in the section 11 notice,
(b) the period is, or is treated in the return as, an accounting period, and
(c) the return includes a self-assessment under section 11AA of this Act,
the self-assessment shall supersede the determination under subsection (1) above.
(4) If the company shows that it has delivered a return containing a self-assessment for the accounting period, or each accounting period, ending in or at the end of the period specified in the section 11 notice, the determination under subsection (1) above shall be of no effect.
Corporation tax determinations: supplementary.
28F (1) Notice of any determination under section 28D or 28E of this Act shall be served on the person in respect of whom it is made and shall state the date on which it is issued.
(2) No determination may be made under section 28D or 28E of this Act after the end of the period of five years beginning with the relevant day.
(3) A self-assessment shall not supersede a determination under section 28D or 28E of this Act if it is made after whichever is the later of—
(a) the end of the period of five years beginning with the relevant day; and
(b) the end of the period of twelve months beginning with the date of the determination.
(4) Where—
(a) an officer of the Board has commenced any proceedings for the recovery of any tax charged by a determination under section 28D or 28E of this Act, and
(b) before those proceedings are concluded, the determination is superseded by a self-assessment,
those proceedings may be continued as if they were proceedings for the recovery of so much of the tax charged by the self-assessment as is due and payable and has not been paid.
(5) In sections 28D and 28E of this Act and this section “the relevant day” means, in relation to a section 11 notice—
(a) if the final day for the delivery of any return required by the notice can be ascertained in accordance with section 11(4) of this Act, that day;
(b) in any other case, the day determined in accordance with subsection (6) below.
(6) The day is whichever is the later of—
(a) the last day of the period of 30 months from the end of the period specified in the section 11 notice; and
(b) the last day of the period of three months from the day on which the section 11 notice was served.
Commencement
8 (1) Paragraphs 3 to 6 above have effect in relation to returns made for periods ending on or after the day appointed under section 199 of the Finance Act 1994 for the purposes of Chapter III of Part IV of that Act (self-assessment).
(2) Paragraph 7 above has effect in relation to notices under section 11 of the Taxes Management Act 1970 specifying a period ending on or after the day so appointed.
Part II Other amendments
General
9 In this Part of this Schedule “the appointed day” means the day appointed as mentioned in paragraph 8(1) above.
Repeal of section 8A of the Taxes Act 1988
10 Section 8A of the Taxes Act 1988 (resolutions to reduce corporation tax) shall cease to have effect.
Determination of accounting date
11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Companies in liquidation
12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Construction of references to assessments
13 In section 197(1) of the Finance Act 1994 (construction of certain references), in paragraph (b) after “28C” there shall be inserted “ , 28D or 28E ”.
SCHEDULE 25 Self-assessment: surrenders of advance corporation tax
Section 139.
Amendments of section 240 of the Taxes Act 1988
1 (1) Section 240 of the Taxes Act 1988 (set-off of company’s advance corporation tax against subsidiary’s liability to corporation tax) shall be amended as follows.
(2) For subsection (1) there shall be substituted the following subsections—
(1) Where a company (“the surrendering company”) has paid an amount of advance corporation tax in respect of a dividend or dividends paid by it in an accounting period, it may under this section surrender the benefit of so much of that amount as is available for surrender, or any part of that amount that is available for surrender, to any company which was a subsidiary of it throughout that accounting period.
(1A) The surrender shall take effect on the surrendering company making a claim in accordance with Schedule 13A.
(1B) A claim to surrender an amount exceeding the amount the benefit of which, at the time the claim is made, is available for surrender shall be of no effect.
(3) For subsections (6) and (7) there shall be substituted the following subsections—
(5A) A claim under subsection (1A) above may be withdrawn by the surrendering company with the consent of the subsidiary to whom the surrender was made.
(5B) The withdrawal of a claim under subsection (1A) above to make a surrender for an accounting period of the surrendering company shall not prevent the making of a further claim under that subsection for that accounting period (whether to the same or a different subsidiary).
(5C) Where the surrendering company withdraws a claim by virtue of which an amount of advance corporation tax was treated under subsection (2) above as paid by its subsidiary in respect of a distribution made on a date determined under that subsection—
(a) the subsidiary shall be treated as if it had not paid that amount in respect of a distribution made by it on the date so determined; and
(b) subject to the effect of any further claim, the surrendering company shall be treated as having paid a corresponding amount of advance corporation tax in respect of a distribution made by it on the date so determined.
(5D) The amount of advance corporation tax the benefit of which is at any time available for surrender is the amount referred to in subsection (1) above less any amount which at that time falls within subsection (5E) below.
(5E) The amounts are—
(a) any amount which has been repaid to the surrendering company;
(b) any amount which has been dealt with under section 239(3);
(c) any amount surrendered under a claim for that period which has not been withdrawn.
(5F) Subject to subsection (5C)(b) above, no amount of advance corporation tax the benefit of which has been surrendered under this section shall be treated for the purposes of section 239 as advance corporation tax paid by the surrendering company.
(4) After subsection (13) there shall be inserted the following subsection—
(14) Schedule 13A (which makes supplementary provision with respect to surrenders of advance corporation tax) shall have effect.
The new Schedule 13A to the Taxes Act 1988
2 After Schedule 13 to the Taxes Act 1988 there shall be inserted the following Schedule—
SCHEDULE 13A
Surrenders of advance corporation tax
General
1 (1) In this Schedule any reference to a claim is to a claim under section 240(1A).
(2) In this Schedule “the relevant accounting period of the surrendering company” means, in relation to a claim by the surrendering company, the accounting period referred to in section 240(1).
Multiple claims
2 (1) Surrenders to different subsidiaries or to the same subsidiary at different times shall be treated as made by separate claims (however the claims are presented).
(2) Where a surrendering company makes more than one claim at the same time, the claims shall be treated as made in such sequence as the surrendering company at that time elects or as, in default of such an election, an officer of the Board determines.
Content of claims etc.
3 (1) A claim must specify—
(a) the amount the benefit of which is surrendered; and
(b) the subsidiary to whom the surrender is made.
(2) The amount specified in compliance with sub-paragraph (1)(a) above must be an amount which is quantified at the time when the claim is made.
Time limit for claims
4 A claim by the surrendering company must be made within the period of six years from the end of the relevant accounting period of the surrendering company.
Claim to be included in return where possible
5 (1) Where a claim could be made by being included in a return under section 11 of the Management Act, or an amendment of such a return, it must be so made.
(2) Section 42 of and Schedule 1A to the Management Act (procedure for making claims) shall not apply to the making of claims.
6 (1) A claim not included in a return or an amendment of a return must be made to an officer of the Board and must be supported by such documents as the officer may require.
(2) The claim shall be made in such form as the Board may determine.
(3) The form of claim shall provide for a declaration to the effect that all the particulars given in the form are correctly stated to the best of the information and belief of the person making the claim.
Contents of notices of withdrawal, etc.
7 (1) A claim shall not be withdrawn except by a notice given to an officer of the Board in such form as the Board may determine.
(2) A notice withdrawing a claim must specify—
(a) the surrendering company which made the claim;
(b) the amount the benefit of which was surrendered under the claim;
(c) the subsidiary to whom the surrender was made; and
(d) the relevant accounting period of the surrendering company in relation to the claim.
(3) A notice withdrawing a claim must be accompanied by a notice signifying the consent required by section 240(5A).
(4) Where a claim included in a return is withdrawn and the withdrawal could be made by an amendment of the return, it must be so made.
Simultaneous claims and withdrawals of claims
8 Where—
(a) a claim (“claim A”) is withdrawn, and
(b) at the time when claim A is withdrawn, another claim (“claim B”) is made,
claim A shall be treated as being withdrawn before claim B is treated as made.
Time limit for withdrawing claims
9 (1) Subject to sub-paragraph (3) below, a claim shall not be withdrawn after the earlier of—
(a) the end of the period of six years from the end of the relevant accounting period of the surrendering company; and
(b) the date on which an assessment for any relevant accounting period of the subsidiary in whose favour the claim was made becomes final.
(2) In this paragraph “relevant accounting period of the subsidiary” means, in relation to a claim, any period in which a distribution is treated under section 240(2) as made by virtue of the claim.
(3) In the circumstances given by sub-paragraph (4) below, a claim may be withdrawn at any time before the end of the period of six years from the end of the relevant accounting period of the surrendering company.
(4) The circumstances are that—
(a) the claim was made—
(i) after the date on which an assessment for a relevant accounting period of the subsidiary in whose favour the claim is made becomes final; and
(ii) after a further assessment has been made on the subsidiary for that period by an officer of the Board or the Board; and
(b) immediately before the claim is withdrawn, none of the advance corporation tax which, by virtue of the claim, is treated as paid by the subsidiary has been finally dealt with to the subsidiary’s advantage.
(5) For the purposes of sub-paragraph (4) above, advance corporation tax is finally dealt with to the subsidiary’s advantage if—
(a) it is set against any liability of the subsidiary under any assessment to corporation tax which has become final; or
(b) any of it is repaid to the subsidiary.
No amendment of claims
10 Nothing in the Management Act shall be read as allowing a claim to be amended.
Further self-assessments by the surrendering company
11 (1) Where—
(a) a claim is made after an assessment to corporation tax for the relevant accounting period of the surrendering company has become final,
(b) under section 239(1), advance corporation tax has been set against the company’s liability to corporation tax for that period, and
(c) the claim is a claim to surrender the benefit of an amount which is or includes the whole or a part of the amount set-off,
the claim must be accompanied by an assessment (a self-assessment) of the corporation tax due as a result of the claim.
(2) The tax shall be treated as due and payable, in accordance with section 59D of the Management Act, on the day following the expiry of nine months from the end of the relevant accounting period.
(3) The standard provisions about enquiries into self-assessments (given by paragraph 14 below) apply to self-assessments provided under this paragraph.
12 (1) Where—
(a) by virtue of section 239(4), advance corporation tax paid in the relevant accounting period of the surrendering company has been set against the company’s liability to corporation tax for a later accounting period,
(b) the claim is made after assessments to corporation tax for both periods have become final, and
(c) the claim is a claim to surrender the benefit of an amount which is or includes the whole or a part of the amount set-off,
the claim must be accompanied by an assessment (a self-assessment) of the corporation tax due as a result of the claim.
(2) The tax shall be treated as due and payable, in accordance with section 59D of the Management Act, on the day following the expiry of nine months from the end of the later accounting period.
(3) The standard provisions about enquiries into self-assessments (given by paragraph 14 below) apply to self-assessments provided under this paragraph.
(4) For the purposes of sub-paragraph (1)(a) above, advance corporation tax which was in fact paid in the relevant accounting period of the surrendering company shall be treated as set against the liability of the company to corporation tax for the later accounting period after any other advance corporation tax available to be so treated.
Further self-assessments by subsidiary
13 (1) Sub-paragraph (3) below applies where—
(a) under section 239(1), advance corporation tax has been set against the subsidiary’s liability to corporation tax for an accounting period (“the relevant accounting period”),
(b) the advance corporation tax is, includes or is part of advance corporation tax which is treated as paid by the subsidiary in respect of that period on the assumption that section 240(2) required that treatment, and
(c) after an assessment to corporation tax for that period has become final, the subsidiary becomes aware of facts (“the true facts”) which, by virtue of section 240(1B), make that treatment incorrect.
(2) Sub-paragraph (3) below also applies where—
(a) by virtue of section 239(4), advance corporation tax has been set against the subsidiary’s liability to corporation tax for an accounting period (“the relevant accounting period”),
(b) the advance corporation tax is, includes or is part of advance corporation tax which is treated as paid by the subsidiary in respect of a previous accounting period on the assumption that section 240(2) required that treatment, and
(c) after an assessment to corporation tax for that period has become final, the subsidiary becomes aware of facts (“the true facts”) which, by virtue of section 240(1B), make that treatment incorrect.
(3) The subsidiary must, before the end of the period of three months beginning with the day on which it becomes aware of the true facts, provide an officer of the Board with an assessment (a self-assessment) of the amount of corporation tax which was due for the relevant accounting period on the basis of the true facts.
(4) The tax shall be treated as due and payable, in accordance with section 59D of the Management Act, on the day following the expiry of nine months from the end of the relevant accounting period of the subsidiary.
(5) The standard provisions about enquiries into self-assessments (given by paragraph 14 below) apply to self-assessments provided under this paragraph.
(6) For the purposes of this paragraph it shall be assumed that advance corporation tax actually paid (or correctly treated as paid) by the subsidiary has been set against the subsidiary’s liability to corporation tax before any advance corporation tax incorrectly treated as paid by the subsidiary.
Standard provisions about enquiries into self-assessments
14 (1) The standard provisions about enquiries into self-assessments (which correspond, in general terms, to certain provisions of section 28A of the Management Act) are as follows.
(2) An officer of the Board may, at any time before the end of the period of one year beginning with the day on which the self-assessment is received, give notice of his intention to enquire into the self-assessment.
(3) The officer’s enquiries shall end on such day as he by notice—
(a) informs the company that he has completed his enquiries, and
(b) states his conclusions as to the amount of tax which should be contained in the company’s self-assessment.
(4) At any time in the period of 30 days beginning with the day on which the enquiries end, the company may amend its self-assessment so as to make good any deficiency or eliminate any excess in the amount of tax contained in the self-assessment.
(5) At any time in the period of 30 days beginning immediately after the period mentioned in sub-paragraph (4) above, the officer may by notice to the company amend the company’s self-assessment so as to make good any deficiency or eliminate any excess in the amount of tax contained in the self-assessment.
(6) The provisions of the Management Act apply to an amendment of a self-assessment under sub-paragraph (5) above as they apply to an amendment of a self-assessment under section 28A(4) of that Act.
(7) At any time before a notice is given under sub-paragraph (3) above, the company may apply for a direction that the officer shall give such a notice within such period as may be specified in the direction.
(8) Subject to sub-paragraph (9) below, an application under sub-paragraph (7) above shall be heard and determined in the same way as an appeal against an amendment of a self-assessment under section 28A(2) or (4) of the Management Act.
(9) The Commissioners hearing an application under sub-paragraph (7) above shall give the direction applied for unless they are satisfied that the officer has reasonable grounds for not giving the notice.
Repayments
15 (1) Where—
(a) a claim is withdrawn after an assessment for the relevant accounting period of the surrendering company has become final, and
(b) an amount of corporation tax paid by the surrendering company in respect of that period would not have been payable if the claim had not been made,
the surrendering company shall be entitled by notice to claim repayment of that amount.
(2) Where—
(a) a claim is made after the date on which an assessment for any relevant accounting period of the subsidiary in whose favour the claim is made becomes final, and
(b) an amount of corporation tax paid by the subsidiary in respect of that period would not have been payable if the claim had not been made,
the subsidiary shall be entitled by notice to claim repayment of that amount.
(3) In this paragraph “relevant accounting period of the subsidiary” has the same meaning as in paragraph 9.
3 Paragraphs 1 and 2 above have effect where the accounting period of the surrendering company ends on or after the day appointed under section 199 of the Finance Act 1994 for the purposes of Chapter III of Part IV of that Act (self-assessment).
Other amendments
4 Section 239(5) of the Taxes Act 1988 (manner in which claims under section 239(1) and (4) to be given effect) shall cease to have effect in relation to accounting periods ending on or after the day appointed as mentioned in paragraph 3 above.
5 In the Table in section 98 of the Taxes Management Act 1970 (penalties in respect of certain information provisions), after the entry in the second column relating to Schedule 13 to the Taxes Act 1988, there shall be inserted the following entry—
Schedule 13A, paragraphs 11, 12 and 13;
.
Section 153.
Companies that pay FIDs
1 (1) In section 246A(1) of the Taxes Act 1988 (foreign income dividends) after “a company” there shall be inserted “ resident in the United Kingdom ”.
(2) This paragraph has effect in relation to dividends paid on or after 28th November 1995.
Recipients of FIDs
2 Section 246D(5) of that Act (exclusion of section 233(1) and (1A) in the case of foreign income dividends) shall have effect, and be deemed always to have had effect, as if at the end there were inserted “ to which an individual is beneficially entitled, a foreign income dividend paid to personal representatives or a foreign income dividend paid to trustees in a case in which the dividend is income to which section 686 applies. ”
Calculation of the distributable foreign profit and the notional foreign source ACT
3 (1) In section 246I(6) of that Act, for the words from “an amount equal” onwards there shall be substituted “ the amount of corporation tax payable, before double taxation relief is afforded, in respect of the foreign source profit. ”
(2) In section 246P(2) of that Act (assumptions to apply for the purposes of calculating the notional foreign source ACT), the following paragraph shall be inserted before the “and” at the end of paragraph (e)—
(ea) where any of the matched foreign source profits represent an amount (“a gross profit”) reduced by one or more such deductions as are mentioned in section 246I(2), the amount of double taxation relief which is to be taken, in finding the amount of corporation tax falling finally to be borne, to have been available (after the reduction) to be allowed by reference to the amount representing the gross profit was equal to the amount that would have been available to be so allowed had no reduction been made;
.
(3) In section 246P of that Act, after subsection (12) there shall be inserted the following subsection—
(12A) In this section “double taxation relief” has the same meaning as in section 246I.
(4) Subject to sub-paragraph (5) below, this paragraph has effect in relation to accounting periods ending after 28th November 1995.
(5) This paragraph, so far as applicable as respects authorised unit trusts, has effect in relation to any distribution period ending after 28th November 1995.
International headquarters company
4 (1) Section 246S of that Act (conditions for treatment as international headquarters company) shall be amended as follows.
(2) In subsection (3) (wholly-owned subsidiary of foreign quoted parent company), in paragraph (a), for “wholly owned by” there shall be substituted “ a 100 per cent. subsidiary of ”.
(3) Subsection (8) (extension of subsection (3)) shall cease to have effect.
(4) After subsection (10) there shall be inserted the following subsection—
(10A) For the purposes of this section a company is a 100 per cent. subsidiary of another if and so long as it is a body corporate all of whose share capital would fall to be treated for the purposes of section 838 as owned directly or indirectly by the other and that other is a body corporate; but for this purpose references in that section to owning share capital shall be construed in accordance with subsection (12) below.
(5) Subject to sub-paragraph (6) below, this paragraph has effect in relation to any accounting period ending after 28th November 1995.
(6) Where—
(a) this paragraph has effect under sub-paragraph (5) above in relation to an accounting period in which a dividend is paid, and
(b) the immediately preceding period ended on or before 28th November 1995,
subsection (9) (requirement to be international headquarters company in the period before that in which a dividend is paid) shall have effect in the case of that dividend as if this paragraph also had effect in relation to that immediately preceding period.
Life assurance business charged under Case I of Schedule D
5 (1) In section 440B of that Act (modifications for life assurance business charged under Case I of Schedule D), after subsection (1) there shall be inserted the following subsection—
(1A) Nothing in section 208 shall prevent foreign income dividends from being taken into account in any computation of the profits of the company’s life assurance business charged in accordance with Case I of Schedule D.
(2) This paragraph has effect in relation to accounting periods beginning on or after 1st January 1996.
Foreign income distributions to corporate unit holders
6 (1) In section 468R of that Act (foreign income distributions to corporate unit holders), after subsection (3) there shall be inserted the following subsection—
(4) No repayment shall be made of any tax which is deemed to have been deducted by virtue of the application of paragraph (b) of section 468Q(2) in relation to a foreign income distribution.
(2) This paragraph applies in relation to any distribution period ending on or after 28th November 1995.
Section 154.
The Taxes Act 1988
1 Section 47 of the Taxes Act 1988 (FOTRA securities) shall cease to have effect.
2 Section 474(2) of that Act (which prevents the deduction of expenses in respect of securities the income on which is exempt from tax) shall cease to have effect.
3 (1) In section 475 of that Act (tax-free securities: exclusion of interest on borrowed money), ...
(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(3) Subsections (6) and (7) of that section shall cease to have effect.
4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6 In paragraph 1(3) of Schedule 24 to that Act ... (amount taken into account in computing tax of company on the assumption that it is resident in the United Kingdom), for “by virtue of section 47 or 48” there shall be substituted, in each case, “ and have been so received by virtue of section 154(2) of the Finance Act 1996 ”.
The Inheritance Tax Act 1984 (c. 51)
7 In section 6(2) of the Inheritance Tax Act 1984 (FOTRA securities to be excluded property in specified circumstances), for the words from “neither” to “United Kingdom” there shall be substituted “ of a description specified in the condition ”.
8 In each of paragraphs (a) and (b) of section 48(4) of that Act (excluded property in the case of settlements), for the words from “neither” to “United Kingdom” there shall be substituted “ of a description specified in the condition in question ”.
Section 156.
Part I The New Chapter
1 In Part IV of the Taxes Act 1988 (provisions relating to the Schedule D charge) the following Chapter shall be inserted after Chapter VII—
Chapter VIIA Paying and collecting agents
Definitions.
118A In this Chapter—
(a) except in the terms “agent concerned”, “collecting agent” and “paying agent”, references to an “agent” include a person acting as nominee or sub-agent for an agent;
(b) “bank” has the meaning given by section 840A;
(c) the “chargeable date”—
(i) in the case of a relevant payment, has the meaning given by section 118B(5); and
(ii) in the case of a relevant receipt, has the meaning given by section 118C(4);
(d) “collecting agent” has the meaning given by section 118C(1), and in relation to any relevant receipt or chargeable receipt, a reference to the collecting agent is a reference to the collecting agent by virtue of whose performance of a relevant function that receipt was received or arose;
(e) in relation to any dividends, references to “coupons” include warrants for and bills of exchange purporting to be drawn or made in payment of those dividends;
(f) references to a depositary include references to a person acting as agent or nominee for a depositary;
(g) except in paragraph (h) below, references to “dividends” are references to foreign dividends, United Kingdom public revenue dividends or relevant dividends as the context requires;
(h) “foreign dividends” means any annual payments, interest or dividends payable out of or in respect of foreign holdings;
(i) “foreign holdings” means the stocks, funds, shares or securities of any body of persons not resident in the United Kingdom or of a government or public or local authority in a country outside the United Kingdom;
(j) “gilt-edged securities” means any securities which—
(i) are gilt-edged securities for the purposes of the 1992 Act; or
(ii) will be such securities on the making of any order under paragraph 1 of Schedule 9 to that Act the making of which is anticipated in the prospectus under which they were issued;
(k) “international organisation” has the meaning given by section 51A(8);
(l) references to a “nominee” include a person acting as agent or nominee for a nominee;
(m) “paying agent” has the meaning given by section 118B(1);
(n) “prescribed” means prescribed in regulations made by the Board under this Chapter or prescribed by the Board in accordance with such regulations;
(o) “quoted Eurobond” means a quoted Eurobond within the meaning of section 124 the interest on which is chargeable to tax under Case III of Schedule D, and “quoted Eurobond interest” means interest on such a quoted Eurobond;
(p) “relevant dividends” means foreign dividends and quoted Eurobond interest;
(q) “relevant holdings” means foreign holdings and quoted Eurobonds;
(r) “relevant payment” has the meaning given by section 118B(5);
(s) “relevant receipt” has the meaning given by section 118C(2);
(t) “securities” includes any loan stocks or similar securities, whether secured or unsecured; and
(u) “United Kingdom public revenue dividends” means income from securities which is payable out of the public revenue of the United Kingdom or Northern Ireland.
Paying agents.
118B (1) A person specified in column 1 of Table A below shall be a paying agent for the purposes of this Chapter in relation to such dividends as are—
(a) of a description set out in column 2 of that Table opposite his specification; and
(b) entrusted to him for payment or distribution.
Table A
1 | 2
1. Any person in the United Kingdom. | United Kingdom public revenue dividends
2. The Bank of England | United Kingdom public revenue dividends paid on securities entered in the register of the Bank of Ireland in Dublin
3. Any person in the United Kingdom | foreign dividends which are payable to persons in the United Kingdom and do not fall within subsection (4) below
(2) The Bank of England and the Bank of Ireland shall be treated as paying agents for the purposes of this Chapter in relation to United Kingdom public revenue dividends which are payable to them.
(3) The National Debt Commissioners shall be treated as paying agents for the purposes of this Chapter in relation to United Kingdom public revenue dividends payable by them.
(4) Foreign dividends fall within this subsection if they are payable out of, or in respect of, the stocks, funds, shares or securities of an organisation which is for the time being designated for the purposes of this subsection pursuant to section 582A(1).
(5) Any payment in relation to which a person is a paying agent shall be a relevant payment for the purposes of this Chapter; and the chargeable date is—
(a) in relation to such a payment as is mentioned in subsection (2) above, the date on which the payment is received; and
(b) in relation to any other relevant payment, the date on which the payment is made.
Collecting agents.
118C (1) Subject to subsection (3) below, a person described in column 1 of Table B below shall be a collecting agent for the purposes of this Chapter in relation to such functions performed by him as are set out in that description, which shall be relevant functions for the purposes of this Chapter.
(2) Such dividends or proceeds of sale or other realisation as—
(a) are set out in column 2 of Table B below opposite the description of a collecting agent in column 1; and
(b) are received or arise by virtue of that collecting agent’s performance of a relevant function comprised in that description
shall be relevant receipts for the purposes of this Chapter.
Table B
1 | 2
1. Any person in the United Kingdom who, in the course of a trade or profession, acts as custodian of any relevant holdings | any relevant dividends in respect of those relevant holdings which are received by him or are paid to another person at his direction or with his consent
2. Any person in the United Kingdom who, in the course of a trade or profession, by means of coupons collects or secures payment of or receives relevant dividends for another person | the relevant dividends which he so collects or receives or of which he so secures payment
3. Any person in the United Kingdom who, in the course of a trade or profession, otherwise acts for another person in arranging to collect or secure payment of relevant dividends | the relevant dividends which he so collects or of which he so secures payment
4. Any bank in the United Kingdom which sells or otherwise realises coupons for relevant dividends and pays over the proceeds or carries them into an account | the proceeds of sale or other realisation of those coupons
5. Any dealer in coupons in the United Kingdom who purchases any coupons for relevant dividends otherwise than from a bank or another dealer in coupons | the proceeds of sale of those coupons
(3) Neither the clearing of a cheque, nor the arranging for the clearing of a cheque, shall of itself be a relevant function.
(4) The chargeable date, in relation to a relevant receipt, is—
(a) in the case of a relevant receipt falling within paragraph 4 or 5 of Table B above, the date on which the sale or realisation is effected, and
(b) in any other case, the date on which the dividends are paid.
(5) For the purposes of paragraph 1 of Table B above, a person acts as a custodian of relevant holdings if he holds them, or an entitlement to them, for another person.
(6) The Board may by regulations provide for the application of the provisions of this Chapter relating to collecting agents where—
(a) a person in the United Kingdom—
(i) holds, beneficially or otherwise, a right (the relevant right) which is a right to delivery of, or to amounts representing the whole or substantially the whole of the value of, a specified quantity of shares or securities comprised in a relevant holding which is held by a person outside the United Kingdom, and
(ii) is entitled to receive income (the relevant income) which is derived from, or which represents, foreign dividends or quoted Eurobond interest on that quantity of shares or securities; and
(b) apart from the provisions of the regulations, the relevant right is not a relevant holding, or the relevant income does not constitute foreign dividends or quoted Eurobond interest.
(7) Regulations under subsection (6) above may—
(a) treat the relevant right as a foreign holding or, as the case may be, a holding of quoted Eurobonds (the notional holding); and
(b) treat the relevant income as foreign dividends or, as the case may be, quoted Eurobond interest paid on the notional holding.
Chargeable payments and chargeable receipts.
118D (1) For the purposes of this Chapter, every relevant payment shall be a chargeable payment unless—
(a) it is made in respect of a foreign dividend—
(i) which is payable on foreign holdings held in a recognised clearing system; and
(ii) in respect of which any conditions imposed by virtue of subsection (8) below are satisfied; or
(b) it is a payment of interest on an exempted certificate of deposit; or
(c) the making of the payment is excluded from being a chargeable payment by subsections (4), (5) or (6) below or by section 118G.
(2) For the purposes of this Chapter, every relevant receipt shall be a chargeable receipt, unless—
(a) it arises in respect of relevant holdings which are held in a recognised clearing system and—
(i) the collecting agent pays or accounts for the relevant receipt directly or indirectly to the recognised clearing system, and
(ii) any conditions imposed by virtue of subsection (8) below are satisfied; or
(b) it arises in respect of relevant holdings which are held in a recognised clearing system for which the collecting agent is acting as depositary; or
(c) it is excluded from being a chargeable receipt by subsection (7) below or by section 118G.
(3) In subsection (1)(b) above, “exempted certificate of deposit” means a certificate of deposit (within the meaning of section 56(5)) issued by a person in the United Kingdom relating to a deposit with a branch in the United Kingdom through which a company resident outside, and not resident in, the United Kingdom carries on a trade.
(4) The payment of United Kingdom public revenue dividends on securities the interest on which is, by virtue of directions given (or treated by section 51 as having been given) under section 50(1), payable without deduction of income tax shall not be a chargeable payment unless the interest is for the time being payable under deduction of income tax pursuant to an application made (or treated by section 51 as having been made) under section 50(2).
(5) The payment of United Kingdom public revenue dividends in respect of securities standing in the name of the official custodian for charities, or in respect of which there is given to the paying agent a certificate from the Board to the effect that the dividends are subject only to charitable trusts and are exempt from tax, shall not be a chargeable payment.
(6) In a case where—
(a) foreign dividends are entrusted by a company which at the time they are entrusted (the “relevant time”) is not resident in the United Kingdom,
(b) they are entrusted for payment to a company which at the relevant time is resident in the United Kingdom, and
(c) at the relevant time the company mentioned in paragraph (b) above directly or indirectly controls not less than 10 per cent. of the voting power in the company mentioned in paragraph (a) above,
the payment of those dividends shall not be a chargeable payment.
(7) In a case where—
(a) foreign dividends are payable by a company which at the time of the payment (the “relevant time”) is not resident in the United Kingdom,
(b) payment of those dividends is collected, received or secured, or coupons for those dividends are realised, on behalf of a company which at the relevant time is resident in the United Kingdom, and
(c) at the relevant time the company mentioned in paragraph (b) above directly or indirectly controls not less than 10 per cent. of the voting power in the company mentioned in paragraph (a) above,
those dividends or, as the case may be, the proceeds of realisation of those coupons shall not be a chargeable receipt.
(8) The Board may by regulations provide that subsection (1)(a) above does not apply in respect of a relevant payment, or that subsection (2)(a) above does not apply in respect of a relevant receipt, unless the paying agent or, as the case may be, the collecting agent has obtained a declaration from the recognised clearing system or its depositary in such form, and containing such information, as may be required by those regulations.
(9) The Board may by regulations make such provision as they may consider appropriate for requiring paying agents and collecting agents to deliver returns setting out particulars of—
(a) any relevant payments made by them which would have been chargeable payments but for the provisions of section 118D(1)(a);
(b) any relevant receipts which would have been chargeable receipts but for the provisions of section 118D(2)(a) or (b);
and for the keeping and production to, or to an officer of, the Board of any document in which any such declaration as is mentioned in subsection (8) above is contained.
Deduction of tax from chargeable payments and chargeable receipts.
118E (1) Subject to subsection (2) below, where a paying agent makes a chargeable payment—
(a) he shall, on making the payment, deduct from it a sum representing the amount of income tax thereon;
(b) he shall become liable to account for that sum;
(c) the person to whom the chargeable payment is made shall allow the deduction on receipt of the residue of the payment, and the paying agent shall be acquitted and discharged of so much money as is represented by the deduction, as if that sum had actually been paid; and
(d) the deduction shall be treated as income tax paid by the person entitled to the chargeable payment.
(2) In relation to United Kingdom public revenue dividends payable to the Bank of Ireland out of the public revenue of the United Kingdom, or which are entrusted to the Bank of Ireland for payment and distribution and are not payable by that Bank out of its principal office in Belfast, subsection (1) above shall not apply, but—
(a) the money which, apart from this subsection, would be issuable to the Bank of Ireland under section 14 of the National Debt Act 1870, or otherwise payable to the Bank of Ireland for the purpose of dividends on securities of the United Kingdom government entered in the register of the Bank of Ireland in Dublin, shall be issued and paid to the Bank of England;
(b) the Bank of England shall deduct from the money so issued and paid to it a sum representing the amount of income tax on the dividends payable to the Bank of Ireland, and on the dividends on the securities of the United Kingdom government entered in the register of the Bank of Ireland in Dublin, and shall become liable to account for the same under section 118F(1);
(c) the Bank of England shall pay to the Bank of Ireland the residue of the money so issued and paid to it, to be applied by the Bank of Ireland in payment of the dividends; and
(d) the deduction shall be treated as income tax paid by the person entitled to the dividends, and the Bank of England and the Bank of Ireland shall be acquitted and discharged of so much money as is represented by the deduction, as if that sum had actually been paid.
(3) Where a collecting agent performs a relevant function—
(a) he shall on the chargeable date become liable to account for a sum representing the amount of income tax on any chargeable receipt in relation to which he is the collecting agent;
(b) he shall be entitled—
(i) to be indemnified by the person entitled to the chargeable receipt against the income tax for which he is liable to account in accordance with paragraph (a) above; and
(ii) to deduct out of the chargeable receipt or to retain from any other sums otherwise due from him to the person entitled to the chargeable receipt, or received by him on behalf of that person, amounts sufficient for meeting any liability to account for such income tax which he has discharged or to which he is subject;
(c) the person entitled to the chargeable receipt shall allow the deduction or retention on receipt of the residue of the chargeable receipt, and the collecting agent shall be acquitted and discharged of so much money as is represented by the deduction, as if that sum had actually been paid; and
(d) the amount for which the collecting agent is liable to account shall be treated as income tax paid by the person entitled to the chargeable receipt.
(4) A paying agent who makes a chargeable payment, or a collecting agent who is required to account for tax on a chargeable receipt, shall, if the person entitled to the chargeable payment or, as the case may be, the chargeable receipt so requests in writing, furnish him within thirty days after receiving that request with a certificate showing—
(a) the gross amount of the payment or receipt;
(b) the amount of income tax treated as paid by him;
(c) the actual amount actually paid or accounted for to him; and
(d) the chargeable date.
(5) The Board may by regulations—
(a) require a certificate furnished pursuant to subsection (4) above to contain information additional to that set out in paragraphs (a) to (d) of that subsection or a declaration made by or on behalf of the paying agent or collecting agent;
(b) make provision for the form of such a certificate or declaration.
(6) The duty imposed by subsection (4) above shall be enforceable at the suit or instance of the person requesting the certificate.
Accounting for tax on chargeable payments and chargeable receipts.
118F (1) Income tax in respect of United Kingdom public revenue dividends for which the Bank of England, the Bank of Ireland, the National Debt Commissioners or any public office or department of the Crown are liable to account pursuant to section 118E(1) or (2) shall become due and payable on the seventh day after the chargeable date and shall be paid into the general account of the Board at the Bank of England or, in the case of the Bank of Ireland, at the Bank of Ireland.
(2) Any other income tax for which a paying agent is liable to account under section 118E(1), and any income tax for which a collecting agent is liable to account under section 118E(3), shall become due and payable on the fourteenth day from the end of the month in which the chargeable date falls.
(3) Any tax due under subsection (1) or (2) above shall carry interest, at the rate applicable under section 178 of the Finance Act 1989, from the date on which it becomes due until it is paid.
(4) The Board may by regulations make such provision as they may consider appropriate—
(a) for requiring paying agents and collecting agents to deliver returns setting out particulars of—
(i) chargeable payments made by them;
(ii) chargeable receipts in respect of which they are liable to account for tax;
(iii) any relevant payments made by them which would have been chargeable payments but for the provisions of section 118G;
(iv) any relevant receipts which would have been chargeable receipts but for the provisions of section 118G;
(v) the amount of any tax accounted for by them, or for which they are liable to account, in relation to chargeable payments or chargeable receipts;
(vi) in the case of relevant payments falling within sub-paragraph (iii) above, the paragraphs of subsection (3) or (4) of section 118G that applied to them;
(vii) in the case of relevant receipts falling within sub-paragraph (iv) above, the paragraphs of subsection (4) of section 118G that applied to them;
(viii) the names and addresses of the persons entitled to the relevant payments or relevant receipts;
(b) with respect to the furnishing of information by paying agents or collecting agents, including the inspection of books, documents and other records on behalf of the Board;
(c) for the assessment under the regulations of amounts due and for appeals against such assessments;
(d) for the repayment in specified circumstances of amounts paid (or purporting to be paid) under this Chapter.
Relevant securities of eligible persons.
118G (1) Subject to subsection (2) below, and to the provisions of any regulations under section 118H—
(a) any relevant payment to which subsection (3) or (4) below applies shall not be a chargeable payment; and
(b) any relevant receipt to which subsection (4) below applies shall not be a chargeable receipt.
(2) Regulations made under paragraph (g), (h) or (i) of subsection (4) below may provide that only one of paragraphs (a) and (b) of subsection (1) above is to apply by virtue of those regulations in relation to relevant payments or relevant receipts of a particular kind or from a particular source.
(3) This subsection applies to payments of United Kingdom public revenue dividends so long as—
(a) they are exempt from tax by virtue of section 46, 49, 516 or 517;
(b) they are payable in respect of gilt-edged securities which for the time being are treated by section 51A as issued subject to the condition that interest on them is paid without deduction of income tax;
(c) they are payable in respect of securities which have been issued with such a condition as is authorised by section 22(1) of the Finance (No. 2) Act 1931 and which are for the time being beneficially owned by a person who is not ordinarily resident in the United Kingdom;
(d) they are eligible for relief from tax by virtue of section 505(1)(c) or (d), or would be so eligible but for section 505(3);
(e) they are eligible for relief from tax by virtue of section 592(2), 608(2)(a), 613(4), 614(2), (3) or (4) or 643(2); or
(f) they are payable in respect of securities held by or on behalf of a person of such a description as may be prescribed.
(4) This subsection applies to relevant payments (not being payments of United Kingdom public revenue dividends) and relevant receipts—
(a) to which a person who, at the chargeable date—
(i) is not resident in the United Kingdom, and
(ii) beneficially owns the relevant holdings from which they are derived,
is beneficially entitled;
(b) which consist of, or of the proceeds of sale or other realisation of coupons for, interest (other than quoted Eurobond interest) to which a bank which, at the chargeable date—
(i) is resident in the United Kingdom, and
(ii) beneficially owns the foreign holdings from which they are derived,
is beneficially entitled;
(c) which arise to the trustees of a qualifying discretionary or accumulation trust in their capacity as such in respect of relevant holdings held on the trusts thereof;
(d) which are eligible for relief from tax by virtue of section 505(1)(c) or (d), or would be so eligible but for section 505(3);
(e) which are eligible for relief from tax by virtue of section 592(2), 608(2)(a), 613(4), 614(2), (3) or (4), 620(6) or 643(2);
(f) which consist of, or of the proceeds of sale or other realisation of coupons for, dividends payable out of the public revenue of the Republic of Ireland or out of or in respect of shares or securities issued by or on behalf of any Republic of Ireland company, society, adventure or concern;
(g) to which a person of such a description as may be prescribed and who, at the chargeable date, beneficially owns the securities from which they are derived, is beneficially entitled;
(h) which are derived from relevant holdings held by or on behalf of a person of such a description as may be prescribed;
(i) which are of such a description as may be prescribed; or
(j) which fall to be treated as the income of, or of the government of, a sovereign power or of an international organisation.
(5) For the purposes of subsection (4)(c) above, a trust is a qualifying discretionary or accumulation trust if—
(a) it is such that some or all of any income arising to the trustees would fall (unless treated as income of the settlor or applied in defraying expenses of the trustees) to be comprised for the year of assessment in which it arises in income to which section 686 (liability to additional rate tax of certain income of discretionary trusts) applies;
(b) the trustees are not resident in the United Kingdom; and
(c) none of the beneficiaries of the trust is resident in the United Kingdom.
(6) The persons who are to be taken for the purposes of subsection (5) above to be the beneficiaries of a discretionary or accumulation trust shall be every person who, as a person falling wholly or partly within any description of actual or potential beneficiaries, is either—
(a) a person who is, or will or may become, entitled under the trust to receive the whole or any part of any income under the trust; or
(b) a person to or for the benefit of whom the whole or any part of such income may be paid or applied in exercise of any discretion conferred by the trust;
and for the purposes of this subsection references, in relation to a trust, to income under the trust shall include references to so much (if any) of any property falling to be treated as capital under the trust as represents amounts originally received by the trustees as income.
(7) The Board may by regulations provide that a paying agent who is entrusted with the payment or distribution of—
(a) United Kingdom public revenue dividends on securities which are held by a nominee approved for the purposes of this subsection, or
(b) foreign dividends on foreign holdings held by such a nominee,
shall treat those dividends as not being chargeable payments.
(8) For the purpose of giving relief from tax pursuant to arrangements which have effect by virtue of section 788, the Board may by regulations provide that a paying agent who is entrusted with the payment or distribution of United Kingdom public revenue dividends on gilt-edged securities held by a nominee approved for the purposes of this subsection shall—
(a) treat those dividends as not being chargeable payments, or
(b) deduct tax from them at such reduced rates (being lower than the rate that would otherwise be applicable by virtue of section 118E(1)) as may be prescribed.
(9) Where, pursuant to subsection (7) or (8) above, dividends are paid without deduction of tax, or subject to deduction of tax at a reduced rate, the provisions of this Chapter shall apply, subject to subsection (10) below and to the provisions of regulations under section 118H, as though the nominee was the paying agent in relation to those dividends and the chargeable date was the date on which he received them.
(10) Where tax has been deducted from dividends at a reduced rate pursuant to regulations under subsection (8) above, the tax for which the nominee is liable to account by virtue of subsection (9) above shall not exceed the difference between the amount of tax on those dividends at the rate that is applicable by virtue of section 118E(1) and the tax already deducted from them.
Relevant securities of eligible persons: administration.
118H (1) The Board may by regulations provide that section 118G(1) shall not apply as regards relevant payments or relevant receipts—
(a) unless such conditions as may be prescribed are fulfilled;
(b) where the Board have reason to believe that section 118G(3) does not apply to, or to the whole of, any relevant payments; or
(c) where the Board have reason to believe that section 118G(4) does not apply to, or to the whole of, any relevant payments or relevant receipts.
(2) In subsection (3) below, references to the relevant exclusion are to exclusion from being a chargeable payment or chargeable receipt pursuant to section 118G(1) or regulations made under section 118G(7) or (8), or to the deduction of tax at a reduced rate pursuant to regulations under section 118G(8), as the case may be; and references to the agent concerned are to the paying agent or collecting agent or, as the case may be, to the nominee approved for the purpose of section 118G(7) or (8).
(3) Regulations under this section or section 118G(7) or (8) may—
(a) disapply the relevant exclusion in respect of any relevant payments or relevant receipts derived from any securities or relevant holdings unless the appropriate person has made a declaration in writing to the agent concerned, in such form as may be prescribed or authorised by the Board, confirming that the requirements for the exclusion are satisfied;
(b) require the person who makes such a declaration to undertake in the declaration to notify the agent concerned if the circumstances set out in the declaration change;
(c) require the agent concerned to consider the accuracy of any declaration made pursuant to a requirement imposed by virtue of paragraph (a) above;
(d) impose obligations—
(i) on persons having any rights in relation to relevant payments or relevant receipts in respect of which the relevant exclusion applies or is claimed to apply; and
(ii) on persons who are the agents concerned in relation to such relevant payments or relevant receipts as are mentioned in sub-paragraph (i) above
as to the provision of information, and the production of documents, to the Board or, on request, to an officer of the Board;
(e) provide for notices to be issued by the Board to persons who fail to comply with requirements for the provision of information or documents mentioned in paragraph (d) above, disapplying the relevant exclusion in relation to relevant payments or relevant receipts in relation to which they have any rights or in relation to which they are the agents concerned;
(f) impose requirements as to—
(i) the form and contents of any declaration to be made in accordance with the regulations under this section;
(ii) the appropriate person to make such a declaration;
(iii) the form and manner in which, and the time at which, any declaration is to be made or provided; and
(iv) the keeping and production to, or to an officer of, the Board of any document in which any such declaration is contained;
(g) provide for notices to be issued by the Board to such persons as may be described in the regulations where the Board are satisfied that the relevant exclusion applies, or where the Board are satisfied or have reason to believe that the relevant exclusion does not apply.
(4) Regulations under section 118G(7) or (8) may—
(a) prescribe conditions for the inclusion of securities or foreign holdings in arrangements established under that subsection;
(b) set out procedures for the approval of nominees for the purpose of that subsection and for the withdrawal of such approval.
Deduction of tax at reduced rate.
118I The Board may make regulations which provide for the amount of any income tax which a paying agent would otherwise be liable to deduct under section 118E(1)(a), or for which a collecting agent would otherwise be liable to account under section 118E(3)(a), to be reduced by reference to liabilities for such tax paid under the law of a territory outside the United Kingdom as may be prescribed.
Prevention of double accounting.
118J (1) A relevant dividend the payment of which is a chargeable payment shall not be a chargeable receipt for the purpose of this Chapter.
(2) Subsection (1) above does not prevent the proceeds of sale or other realisation of a coupon from being a chargeable receipt.
(3) The Board may make regulations—
(a) for preventing more than one collecting agent from being liable to account for tax on the same dividend; or
(b) which provide that—
(i) where more than one person is a collecting agent in relation to a dividend, those persons may agree between themselves which one of their number shall be treated as the collecting agent in relation to that dividend; and
(ii) the person so identified shall for all the purposes of this Chapter be treated as the sole collecting agent in relation to that dividend.
Regulations.
118K (1) Any power to make regulations under this Chapter—
(a) may be exercised as regards prescribed cases or descriptions of case; and
(b) may be exercised differently in relation to different cases or descriptions of case, or in relation to different persons or descriptions of person.
(2) Regulations under this Chapter may include such supplementary, incidental, consequential or transitional provisions as appear to the Board to be necessary or expedient.
(3) No specific provision of this Chapter about regulations shall prejudice the generality of subsections (1) and (2) above.
Part II Other Provisions
Penalties
2 (1) In section 98 of the Taxes Management Act 1970 (penalties in respect of certain information provisions) the words “regulations under section 118D, 118F, 118G, 118H or 118I;” shall be inserted—
(a) in column 1 of the Table, after “regulations under section 42A”; and
(b) in column 2 of the Table, after “regulations under section 51B”.
(2) In the same section—
(a) the words “ regulations under section 124(3); ” shall be inserted in column 1 of the Table after the words inserted by sub-paragraph (1)(a) above; and
(b) for the words “section 124(3)” in column 2 of the Table there shall be substituted “ regulations under section 124(3) ”.
Amendments of the Taxes Act 1988
3 The Taxes Act 1988 shall be amended in accordance with paragraphs 4 to 7 below.
4 For section 124(2) to (5) there shall be substituted—
(2) The conditions are—
(a) that a person who—
(i) is not resident in the United Kingdom, and
(ii) beneficially owns the quoted Eurobond
is beneficially entitled to the interest;
(b) that the quoted Eurobond is held in a recognised clearing system.
(3) The Board may by regulations provide that subsection (1)(b) above shall be taken not to apply to a payment of interest unless—
(a) the person by or through whom the payment is made (the relevant payer) has received a declaration confirming that one of the conditions of subsection (2) above is satisfied, or
(b) they have issued a notice to the relevant payer stating that they consider that one (or both) of those conditions is satisfied.
(4) Regulations under subsection (3) above may—
(a) impose requirements as to—
(i) the contents of any declaration to be made in accordance with regulations under subsection (3)(a) above,
(ii) the form and manner in which any declaration is to be provided in accordance with any such regulations, and
(iii) the keeping and production to, or to an officer of, the Board of any document in which any such declaration is contained;
(b) make provision for any such declaration to be made by the person entitled to the interest (or, as the case may be, the depositary for the recognised clearing system) or by such other person as may be prescribed by the regulations;
(c) require the relevant payer to consider the accuracy of any such declaration;
(d) make provision for notices to be issued by the Board to such persons as may be described in the regulations where the Board consider that
(i) one (or both) of the conditions of subsection (2) above, or
(ii) neither of those conditions
is satisfied in relation to interest paid on any holding of quoted Eurobonds;
(e) make provision with respect to the furnishing of information by relevant payers, including the inspection of books and other records on behalf of the Board;
(f) require relevant payers to deliver returns setting out particulars of payments made by them to which subsection (1)(b) above applies and the names and addresses of the persons entitled to them;
(g) contain such supplementary, incidental, consequential or transitional provisions as appear to the Board to be necessary or expedient.
5 (1) In section 348(3) and in section 349(1), at the end there shall be inserted “ or to any payment which is a relevant payment for the purposes of Chapter VIIA of Part IV ”.
(2) In section 349(3), the following paragraph shall be inserted after paragraph (d)—
(e) to any payment which is a relevant payment for the purposes of Chapter VIIA of Part IV; or
6 In section 582A (designated international organisations: miscellaneous exemptions), in subsection (1) for “(2) to (6) below” there shall be substituted “ (2) and (4) to (6) below and section 118B(4) ”.
7 In paragraph 4(8) of Schedule 23A (manufactured overseas dividends), for the words “subsection (2) or (3) of section 123 or under Part III, as the case may be, and for Parts III and IV of Schedule 3” there shall be substituted “ Chapter VIIA of Part IV and for that Chapter ”.
Amendment of the Finance Act 1989
8 In section 178 of the Finance Act 1989 (setting rates of interest), in subsection (2)(m), before “160” there shall be inserted “ 118F, ”.
Part I Amendments of Schedule 19AB to the Taxes Act 1988
1 (1) Paragraph 1 (entitlement to certain payments on account) shall be amended in accordance with the following provisions of this paragraph.
(2) In sub-paragraph (1) (entitlement to payment of an amount equal to the aggregate there mentioned) after “equal” there shall be inserted “ , subject to paragraph 2 below, ”.
(3) For sub-paragraphs (3) and (4) (ascertainment of the “provisional fraction”) there shall be substituted—
(3) In the application of subsections (5) to (9) of section 432A for the purpose of determining the amounts to which a company is entitled by way of provisional repayments in the case of any accounting period of the company, the reference in subsection (5) to “the relevant fraction” shall be taken as a reference to the provisional fraction for that accounting period.
(4) For the purposes of this paragraph—
(a) the provisional fraction for an accounting period of a company is the fraction which would, on the basis of the company’s latest section 11 return, be the relevant fraction for the purposes of section 432A(5) for the accounting period to which that return relates; but
(b) if there is no section 11 return on the basis of which that fraction can be ascertained, the provisional fraction shall be taken to be nil;
but this sub-paragraph is subject to paragraph 2 below.
(4) In sub-paragraph (5) (meaning of “the appropriate portion”) in paragraph (b) (company carrying on more than one category of long term business) for sub-paragraph (ii) (income arising from assets not linked to pension business) there shall be substituted—
(ii) if and to the extent that the payment or distribution in question is income which is not referable to a category of business by virtue of subsection (3) or (4) of section 432A, the provisional fraction; and
(iii) except as provided by sub-paragraph (i) or (ii) above, none.
(5) For sub-paragraph (6) (inspector not to give effect to claim unless he is satisfied he has been given sufficient information) there shall be substituted—
(6) Section 42 of the Management Act (claims) shall not apply to a claim for a provisional repayment.
(6A) A claim for a provisional repayment shall be in such form as the Board may determine and the form of claim shall provide for a declaration to the effect that all the particulars given in the form are correctly stated to the best of the knowledge and belief of the person making the claim.
(6) For sub-paragraph (7) (provisional repayments to be treated as payments on account of certain payments or repayments which will eventually fall to be made in respect of income tax and tax credits) there shall be substituted—
(7) A provisional repayment for a provisional repayment period shall be regarded as a payment on account of the amounts (if any) which the company would, apart from this Schedule, be entitled to be paid or repaid in respect of its pension business for the accounting period in which that provisional repayment period falls, in respect of—
(a) income tax borne by deduction on payments received by the company in that accounting period and referable to its pension business, and
(b) tax credits in respect of distributions received by the company in that accounting period and referable to its pension business,
on a claim such as is mentioned in section 7 of this Act or section 42(4) of the Management Act in respect of that accounting period.
(7) Sub-paragraph (8) (which relates to any case where an election is made under section 438(6) as respects franked investment income and which, having regard to amendments made by this Schedule, is unnecessary) shall cease to have effect.
(8) For sub-paragraph (10) (definitions) there shall be substituted—
(10) In this paragraph—
“latest section 11 return”, in the case of an accounting period of a company (“the current accounting period”), means, subject to sub-paragraph (11) below, the section 11 return for the latest preceding accounting period of the company for which such a return has been delivered before the making of the first claim for a provisional repayment for the current accounting period;
“section 11 return”, in the case of any company, means a return delivered by the company pursuant to section 11 of the Management Act and includes a reference to any accounts, statements or reports delivered pursuant to that section together with the return;
“self-assessment” means an assessment included in a return under section 11 of the Management Act by virtue of section 11AA of that Act and includes a reference to such an assessment as amended under section 11AA(2) or 28A(3) or (4) of that Act.
(11) In any case where—
(a) there is a section 11 return which would, apart from this sub-paragraph, be the latest section 11 return in the case of an accounting period of a company,
(b) the self-assessment required to be included in that return pursuant to section 11AA of the Management Act has been amended under section 11AA(2) or 28A(3) or (4) of that Act, and
(c) that amendment was made before the making of the first claim for a provisional repayment for the accounting period mentioned in paragraph (a) above,
the return which is to be regarded as the latest section 11 return in the case of that accounting period shall be that return as it stands amended immediately after the making of that amendment of the self-assessment (or, if the self-assessment has been so amended more than once, that return as it stands amended immediately after the making of the last such amendment) but ignoring amendments which do not give rise to any change in the fraction which, on the basis of the return as it has effect from time to time, would be the relevant fraction for the purposes of section 432A(5) for the accounting period to which the return relates.
2 (1) Paragraph 2 (changes in the provisional fraction) shall be amended in accordance with the following provisions of this paragraph.
(2) For sub-paragraphs (1) and (2) (cases where the paragraph applies, and consequences of its application) there shall be substituted—
(1) This paragraph applies in any case where—
(a) a claim has been made for a provisional repayment for at least one provisional repayment period in an accounting period of a company;
(b) subsequently, a further such claim is made for a provisional repayment period falling within that accounting period; and
(c) had that further claim been the first claim made for a provisional repayment for that accounting period, the provisional fraction for the accounting period would have been a different fraction (whether in consequence of the delivery of a section 11 return for a later preceding accounting period or the application of paragraph 1(11) above);
and in this paragraph the “substituted provisional fraction” means the different fraction mentioned in paragraph (c) above.
(2) Where this paragraph applies—
(a) the amount of any provisional repayment to which the company is entitled for the provisional repayment period mentioned in sub-paragraph (1)(b) above shall be an amount determined in accordance with sub-paragraph (3) below or such lesser amount as may be specified in the claim; and
(b) in relation to any later provisional repayment period in the same accounting period, the substituted provisional fraction shall, subject to any further application of this paragraph, be treated as the provisional fraction for the accounting period.
(3) In sub-paragraph (3), in the definition of “total entitlement”, for the words following paragraph (b) there shall be substituted—
had the substituted provisional fraction been the provisional fraction for the accounting period as from the beginning of that period; and
.
3 (1) Paragraph 3 (repayment, with interest, of excessive provisional repayments) shall be amended in accordance with the following provisions of this paragraph.
(2) In sub-paragraph (1), for paragraphs (a) and (b) (which respectively refer to the company’s assessment to corporation tax being finally determined and the amount referred to in paragraph 1(7)) there shall be substituted—
(a) an insurance company’s self-assessment for an accounting period becomes final, and
(b) the aggregate amount of the provisional repayments made to the company for that accounting period exceeds the appropriate amount,
.
(3) After that sub-paragraph there shall be inserted—
(1A) For the purposes of sub-paragraph (1)(b) above, the appropriate amount for an accounting period of a company is the amount (if any) which, on the assumptions in sub-paragraphs (1B) and (1C) below and disregarding any provisional repayments, the company would be entitled to be paid or repaid, when its self-assessment for the period becomes final, in respect of its pension business for that accounting period on a claim such as is mentioned in section 7 of this Act or section 42(4) of the Management Act in respect of—
(a) income tax borne by deduction on payments received by the company in that accounting period and referable to its pension business, and
(b) tax credits in respect of distributions received by the company in that accounting period and referable to its pension business.
(1B) The first assumption is that no payments or repayments have been made to the company in respect of—
(a) income tax such as is mentioned in paragraph (a) of sub-paragraph (1A) above, or
(b) tax credits such as are mentioned in paragraph (b) of that sub-paragraph,
before the company’s self-assessment for the accounting period in question becomes final.
(1C) The second assumption is that in making any set off under—
(a) section 7(2),
(b) paragraph 5 of Schedule 16, or
(c) regulations made by virtue of section 51B,
income tax borne by deduction on income which is not referable to pension business is set off before income tax so borne on income which is referable to pension business.
(1D) In its application by sub-paragraph (1) above, section 30 of the Management Act shall have effect as if, instead of the provision made by subsection (5), it provided that an assessment under that section by virtue of sub-paragraph (1) above is not out of time under section 34 of that Act if it is made no later than the end of the accounting period following that in which the self-assessment mentioned in paragraph (a) of that sub-paragraph becomes final.
(4) In sub-paragraph (3) (application of section 87A of the Taxes Management Act 1970) in paragraph (b) (which provides for the specified words in subsection (1) of that section to be disregarded) for “ “(in accordance with section 10 of the principal Act)”” there shall be substituted “ “(in accordance with section 59D of this Act)” ”.
(5) In sub-paragraph (4) (amount of principal outstanding to be determined in accordance with sub-paragraphs (5) to (7)) for “(7)” there shall be substituted “ (8) ”.
(6) After sub-paragraph (7) there shall be added—
(8) For the purposes of sub-paragraph (7) above, any repayment made by the company in respect of an amount paid or repaid to it in respect of—
(a) income tax such as is mentioned in paragraph (a) of sub-paragraph (1A) above, or
(b) tax credits such as are mentioned in paragraph (b) of that sub-paragraph,
shall be treated as a repayment in respect of the principal, taking an earlier such repayment by the company before a later.
(9) In this paragraph “self-assessment” means an assessment included in a return under section 11 of the Management Act by virtue of section 11AA of that Act and includes a reference to such an assessment as amended.
4 (1) Paragraph 6 (interpretation) shall be amended in accordance with the following provisions of this paragraph.
(2) In sub-paragraph (1), for the definition of “provisional fraction” there shall be substituted—
“provisional fraction” shall be construed in accordance with paragraphs 1(4) and 2 above;
.
(3) Sub-paragraph (3) (which makes transitional provision for cases where an insurance company has not made a return under section 11 of the Taxes Management Act 1970 as amended by section 82 of the Finance (No.2) Act 1987) shall cease to have effect.
(4) After that sub-paragraph there shall be added—
(4) Sub-paragraph (5) below applies in any case where an insurance company—
(a) which has delivered a return under section 11 of the Management Act for an accounting period ending before the self-assessment appointed day, but
(b) which has not delivered its first return under that section for an accounting period ending on or after that day,
makes the first claim for a provisional repayment for a particular accounting period ending on or after that day.
(5) Where this sub-paragraph applies—
(a) the provisional fraction for the accounting period to which the claim mentioned in sub-paragraph (4) above relates shall be determined in accordance with paragraph 1(3), (4), and (6) and sub-paragraph (3) above, as they have effect in relation to accounting periods ending before that day; and
(b) paragraph 2 above, as originally enacted, shall have effect in relation to that accounting period as it has effect in relation to accounting periods ending before that day.
(6) In this paragraph “the self-assessment appointed day” means the day appointed under section 199 of the Finance Act 1994 for the purposes of Chapter III of Part IV of that Act (self-assessment management provisions).
Part II Amendments of Schedule 19AC to the Taxes Act 1988
5 (1) Paragraph 15 (modification of Schedule 19AB) shall be amended in accordance with the following provisions of this paragraph.
(2) Sub-paragraph (1) (which relates to paragraph 1(8) of Schedule 19AB) shall cease to have effect.
(3) At the end there shall be added—
(3) In paragraph 3(1C) of Schedule 19AB, for paragraph (a) there shall be substituted—
(a) section 11(3),
.
Preliminary
1 The Capital Allowances Act 1990 shall be amended as follows.
Amendment of provisions relating to roll-over relief in respect of ships
2 (1) In subsection (3) of section 33A (relief limited to expenditure on new shipping incurred or to be incurred by the shipowner), for paragraph (b) there shall be substituted the following paragraph—
(b) the amount of any expenditure incurred or to be incurred by qualifying persons in the period of six years beginning with the day on which the event mentioned in subsection (1)(b) above occurs, so far as that expenditure is, or (when incurred) will be, expenditure to which an addition made under this section in respect of that event may be attributed in accordance with subsection (5) below;
.
(2) In subsection (4) of that section (relief not to apply where expenditure on new shipping not incurred by the shipowner within six years), for the words from the beginning of paragraph (b) onwards there shall be substituted the following—
(b) circumstances arise in which the whole or any part of the addition ceases (otherwise than by being attributed) to be an amount that may be attributed, in accordance with subsection (5) below, to expenditure on new shipping incurred by qualifying persons in the period of six years mentioned in subsection (3)(b) above,
the shipowner shall be assumed not to have been entitled to so much of the addition as will not be so attributed.
(3) For subsection (5) of that section (attribution of relief to expenditure on new shipping) there shall be substituted the following subsections—
(5) Subject to subsection (5A) below and to section 33D(6), where—
(a) an addition is made under this section to the shipowner’s qualifying expenditure for the relevant period in respect of his actual trade, and
(b) expenditure on new shipping is incurred by a qualifying person in the period of six years mentioned in subsection (3)(b) above,
the shipowner may, by notice to an officer of the Board, attribute to that expenditure so much of the addition as is equal to so much of the expenditure as is not already the subject of an attribution under this subsection.
(5A) A notice under subsection (5) above shall not have effect in a case where the shipowner and the qualifying person to whose expenditure the notice relates are not the same person unless that person joins with the shipowner in the giving of that notice.
(4) After subsection (7) of that section there shall be inserted the following subsection—
(8) In this section and the following provisions of this Chapter references to a qualifying person, in relation to any expenditure, are references to—
(a) the shipowner; and
(b) where the shipowner is a company, any company which, at the time when the expenditure is or is to be incurred, is or (as the case may be) would be a member of the same group of companies as the shipowner;
and for the purposes of this subsection two companies are members of the same group of companies at any time if, at that time, they are treated as members of the same group of companies for the purposes of Chapter IV of Part X of the principal Act (group relief).
3 (1) In subsection (1) of section 33C (re-imposition of deferred charge)—
(a) in paragraph (b), for “the shipowner” there shall be substituted “ a qualifying person ”; and
(b) for paragraph (c) there shall be substituted the following paragraph—
(c) the expenditure is expenditure the whole or any part of which is expenditure to which the whole or any part of the addition is attributed in accordance with section 33A(5).
(2) In subsection (2) of that section—
(a) the words “to be”, in the first place where they occur, shall be omitted; and
(b) in paragraph (b), for “the shipowner” there shall be substituted “ the qualifying person in question ”.
4 (1) In section 33D (definition of expenditure on new shipping), in subsection (1)—
(a) in paragraph (a), for “the shipowner’s actual trade” there shall be substituted “ a trade carried on by the person who incurs that expenditure ”; and
(b) in paragraph (b), for “the shipowner” there shall be substituted “ that person ”.
(2) In subsection (2) of that section—
(a) in paragraph (a), for “the shipowner” there shall be substituted “ the person who incurred the expenditure ”; and
(b) in paragraph (c)(ii), for “the shipowner” there shall be substituted “ the person who incurred the expenditure ”.
(3) After subsection (2) of that section there shall be inserted the following subsections—
(2A) Subject to subsection (2B) below, expenditure incurred by a qualifying person other than the shipowner on the provision of a ship shall not be, and shall be deemed never to have been, expenditure on new shipping if—
(a) at any time after the time when the ship first belongs to that person in consequence of that expenditure, it ceases to belong to that person without having been brought into use for the purposes of a trade of that person;
(b) the ship is brought into use for the purposes of a trade of that person and an event falling within section 24(6)(c) occurs with respect to the ship before the end of the period of three years beginning with the time when it is first so brought into use; or
(c) there is a time falling—
(i) after the expenditure is incurred, and
(ii) where the ship is brought into use for the purposes of a trade of that person, before the end of the period of three years beginning with the time when it is first so brought into use,
when the shipowner and that person do not fall to be treated as members of the same group of companies for the purposes of Chapter IV of Part X of the principal Act (group relief).
(2B) Subsection (2A) above shall not apply by virtue of paragraph (a) or (b) of that subsection in any case if the event by virtue of which the case falls within that paragraph is, or is the result of—
(a) the total loss of the ship; or
(b) damage to the ship that puts it in a condition in which it is impossible, or not commercially worthwhile, for the repair required for restoring it to its previous use to be undertaken;
and that subsection shall have effect, where anything falling within paragraph (a) or (b) above occurs, as if times falling after the occurrence of the total loss or, as the case may be, after the occurrence of the damage were to be disregarded for the purposes of paragraph (c) of that subsection.
(4) In subsection (4) of that section—
(a) in paragraphs (a) and (b), for the words “the shipowner”, in each place where they occur, there shall be substituted “ the person who incurred the expenditure ”; and
(b) in paragraph (c)(i), for “the shipowner’s actual trade” there shall be substituted “ a trade carried on by the person who incurred that expenditure ”.
(5) In subsection (6) of that section, for “by the shipowner” there shall be substituted “ by a qualifying person ”.
(6) In subsection (7) of that section—
(a) for “any trade previously carried on by the shipowner” there shall be substituted “ the shipowner’s actual trade ”; and
(b) in paragraph (a), for the words “by the persons for the time being carrying on that trade” there shall be substituted “ for the purposes of that trade by the persons for the time being carrying it on ”.
(7) For subsection (8) of that section there shall be substituted the following subsection—
(8) For the purposes of this section a person is connected with another person at any time if, at that time—
(a) he is, within the terms of section 839 of the principal Act, connected either with that other person or with a person who is connected with that other person by virtue of paragraph (b) below; or
(b) he is carrying on a trade previously carried on by that other person in a case in which the only changes in the persons engaged in carrying on that trade between—
(i) the time when it was previously carried on by that other person, and
(ii) the time in question,
are changes in respect of which the trade is to be treated by virtue of section 113(2) or 343(2) of the principal Act as not having been discontinued;
and the persons who shall be taken for the purposes of this section, in relation to expenditure incurred by a person who is not the shipowner, to be connected at any time with the person by whom the expenditure is or has been incurred shall include every person who at that time is connected (in accordance with the preceding provisions of this subsection) with the shipowner.
5 (1) In section 33E (definition of a qualifying ship), after subsection (8) there shall be inserted the following subsection—
(9) Subsections (5), (6) and (8) above shall have effect for the purposes of section 33D in relation to any ship on the provision of which expenditure is incurred on or after the passing of the Finance Act 1996 as if the references in those subsections to the shipowner included references to the person incurring that expenditure.
6 (1) In section 33F (procedural provisions), in subsection (4)—
(a) for “An attribution made for the purposes of section 33A(5) or 33C” there shall be substituted “ Subject to subsection (4A) below, an attribution in accordance with section 33A(5) ”; and
(b) for “the person giving the notice” there shall be substituted “ the shipowner ”.
(2) After that subsection there shall be inserted the following subsection—
(4A) A notice by the shipowner under subsection (4) above shall not have effect in a case where the shipowner and the qualifying person to whose expenditure the notice relates are not the same person unless that person joins with the shipowner in the giving of that notice.
Commencement
7 (1) Subject to sub-paragraph (2) below, this Schedule shall have effect in relation to any case in which the event mentioned in section 33A(1)(b) occurs on or after the day on which this Act is passed.
(2) Subject to sub-paragraph (3) below, this Schedule shall not apply for the purposes of claims, assessments and adjustments made on or after the day on which this Act is passed but before such day as the Treasury may by order appoint.
(3) Sub-paragraph (2) above shall not prevent the making on or after the day appointed under that sub-paragraph of any claims, assessments or adjustments in respect of the application of this Schedule, in accordance with sub-paragraph (1) above, in relation to times before that day; and nothing in any provision relating to the period within which any claim or assessment must be made shall prevent any such claim, assessment or adjustment from being made by reference to this Schedule if it is made no more than twelve months after the day so appointed.
Section 182.
1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2 In section 748(3) of the Taxes Act 1988 (direction under section 747(1) not to be given in cases where reduction in United Kingdom tax was not the main purpose etc) in paragraph (a), for “or any two or more of those transactions taken together” there shall be substituted “ or any two or more transactions taken together, the results of at least one of which are so reflected, ”.
3 (1) Schedule 24 to the Taxes Act 1988 (assumptions for calculating chargeable profits etc) shall be amended in accordance with the following provisions of this paragraph.
(2) In paragraph 1 (general) after sub-paragraph (3) there shall be inserted—
(3A) In any case where—
(a) it is at any time necessary for any purpose of Chapter IV of Part XVII to determine the chargeable profits of the company for an accounting period, and
(b) at that time—
(i) no direction has been given under section 747(1) with respect to that or any earlier accounting period of the company, and
(ii) it has not been established that that or any earlier accounting period of the company is an ADP exempt period,
in determining the chargeable profits of the company for the accounting period mentioned in paragraph (a) above it shall be assumed, for the purpose of any of the following provisions of this Schedule which refer to the first accounting period in respect of which a direction is given under section 747(1) or which is an ADP exempt period, that that period (but not any earlier period) is an accounting period in respect of which such a direction is given or which is an ADP exempt period.
(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(4) In paragraph 2(1) (company assumed to have become resident in the United Kingdom at the beginning of the first accounting period in respect of which a direction is given under section 747(1) and to have continued so resident etc) for “in respect of which a direction is given under section 747(1) and” there shall be substituted—
(a) in respect of which a direction is given under section 747(1), or
(b) which is an ADP exempt period,
and .
(5) In paragraph 4 (maximum reliefs assumed to have been claimed etc unless notice requesting other treatment is given by UK resident company or companies with a majority interest) after sub-paragraph (1) there shall be inserted—
(1A) Sub-paragraph (2) below applies to any accounting period of the company—
(a) in respect of which a direction is given under section 747(1); or
(b) which is an ADP exempt period.
(6) In sub-paragraph (2) of that paragraph (notice to be given not later than the expiry of the time for making an appeal under s.753 or within such longer period as the Board may allow)—
(a) at the beginning there shall be inserted “ Where this sub-paragraph applies to an accounting period of the company, then ”; and
(b) for “the time for the making of an appeal under section 753” there shall be substituted “ the appropriate period ”.
(7) After that sub-paragraph there shall be inserted—
(2A) For the purposes of sub-paragraph (2) above, “the appropriate period”—
(a) in the case of an accounting period in respect of which a direction is given under section 747(1), means the time for the making of an appeal under section 753; and
(b) in the case of an accounting period which is an ADP exempt period, means the period of twenty months following the end of the accounting period.
(8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(10) In paragraph 10 (capital allowances for expenditure incurred on machinery or plant before the first accounting period in respect of which a direction is given under section 747(1)) for “in respect of which a direction is given under section 747(1), the” there shall be substituted—
(a) in respect of which a direction is given under section 747(1), or
(b) which is an ADP exempt period, the
.
(11) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4 (1) Schedule 25 to the Taxes Act 1988 (cases excluded from direction-making powers) shall be amended as follows.
(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(3) In paragraph 2A (further provisions to determine whether a controlled foreign company which is not a trading company pursues an acceptable distribution policy)—
(a) in sub-paragraph (1) (application) the words “which is not a trading company” shall be omitted;
(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(c) sub-paragraphs (6) and (7) (which are superseded by amendments made to paragraph 2 by this Schedule) shall be omitted.
(4) In paragraph 3 (“available profits” and “net chargeable profits” for purposes of Part I of the Schedule)—
(a) sub-paragraphs (1) to (4) (ascertainment of “available profits”) shall be omitted;
(b) in sub-paragraph (5) (certain dividends to be left out of account in determining available profits or, where the company is not a trading company, chargeable profits) the words “the available profits or, where the company is not a trading company,” shall be omitted.
(5) In paragraph 6 (exempt activities) in sub-paragraph (2)(b) (less than 50 per cent. of gross trading receipts from wholesale, distributive or financial business to be derived from connected or associated persons) after “connected or associated persons” there shall be added “ or persons who have an interest in the company at any time during that accounting period. ”
(6) In paragraph 16(2) (reductions in United Kingdom tax: extended meaning of “transaction” in paragraphs 17 and 18)—
(a) in paragraph (a), after “transaction” there shall be inserted “ the results of which are ”; and
(b) in paragraph (b), for “two or more such transactions taken together” there shall be substituted “ two or more transactions taken together, the results of at least one of which are so reflected ”.
Section 198.
Part I “Bank” re-defined for certain purposes
1 (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(2) In section 828 of the Taxes Act 1988 (regulations and orders), in subsection (4), for “or 791” there shall be substituted “ 791 or 840A(1)(d) ”.
Part II Amendments of the Taxes Act 1988
Provisions in which new meaning of “bank” applies
2 (1) The following subsection—
(0) In this section “bank” has the meaning given by section 840A.
,
shall be inserted in the Taxes Act 1988 in accordance with sub-paragraph (2) below.
(2) The subsection shall be inserted—
(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Related amendments
3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Application
6 The amendments of the Taxes Act 1988 made by paragraphs 2 to 5 above apply as mentioned in paragraphs 7 to 10 below.
7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
10 The amendments of paragraphs 7 and 10 of Schedule 20 apply in relation to deposits made or, as the case may be, money placed on or after the day on which this Act is passed.
Part III Other amendments
Amendments of the Management Act
11 (1) The following subsection—
(0) In this section “bank” has the meaning given by section 840A of the principal Act.
,
shall be inserted in the Taxes Management Act 1970 in accordance with sub-paragraph (2) below.
(2) The subsection shall be inserted—
(a) in section 17 (returns from banks etc.), after subsection (1), as subsection (1A);
(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(c) in section 24 (obligation to disclose certain particulars not to apply to banks), after subsection (3), as subsection (3A).
(3) In section 17(1) of that Act, for “person carrying on the trade or business of banking” there shall be substituted “ such person who is a bank ”.
(4) In section 18(3) of that Act for the words from “carrying on” to the end there shall be substituted “ in respect of any interest paid by the bank in the ordinary course of its business ”.
(5) This paragraph applies as follows—
(a) the amendments of section 17 apply in relation to interest paid on or after the day on which this Act is passed; and
(b) the amendments of sections 18 and 24 apply in relation to requirements imposed on or after the day on which this Act is passed.
Amendments of the Inheritance Tax Act 1984
12 (1) In section 157 of the Inheritance Tax Act 1984 (non-residents’ bank accounts), in subsection (5), for “the Bank of England, the Post Office or an authorised institution” there shall be substituted “ a bank or the Post Office ”.
(2) After that subsection there shall be inserted the following subsection—
(6) In this section “bank” has the meaning given by section 840A of the Taxes Act 1988.
(3) This paragraph applies in relation to deaths occurring on or after the day on which this Act is passed.
Section 199.
The Finance Act 1973
1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
The Inheritance Tax Act 1984
2 (1) For the second and the last occurrences of the word “quoted” in each of—
(a) sections 105(1ZA) and 113A(3B) of the Inheritance Tax Act 1984 (meaning of “quoted” etc.), and
(b) the paragraph in section 272 of that Act (general interpretation) which defines “quoted” and “unquoted”,
there shall be substituted “ listed ”.
(2) This paragraph has effect—
(a) in relation to transfers of value on or after 1st April 1996; and
(b) for the purposes of any charge to tax by reason of an event occurring on or after 1st April 1996, in relation to transfers of value before that date.
3 (1) In section 180(3) of that Act (whether two investments are of the same description), for “quoted” there shall be substituted “ listed ”.
(2) This paragraph has effect in relation to any time falling on or after 1st April 1996.
4 (1) In section 178(2) of that Act (shares or investments whose quotation is suspended at time of death)—
(a) for “quotation” there shall be substituted “ listing ”; and
(b) for “quoted” there shall be substituted “ so listed or dealt in ”.
(2) In section 186B(1) of that Act (shares or investments whose quotation is suspended at the end of the relevant period), for “quotation” there shall be substituted “ listing ”.
(3) This paragraph has effect in relation to investments sold, or treated as sold, on or after 1st April 1996.
5 (1) In each of sections 227(1AA) and 228(5) of that Act (meaning of “unquoted”), for the word “quoted” there shall be substituted “ listed ”.
(2) This paragraph has effect—
(a) in relation to transfers of value on or after 1st April 1996; and
(b) for the purposes of any charge to tax by reason of an event occurring on or after 1st April 1996, in relation to transfers of value before that date.
The Taxes Act 1988
6 (1) In each of the provisions of the Taxes Act 1988 listed in sub-paragraph (2) below, for “quoted” (wherever occurring) there shall be substituted “ listed ”.
(2) The provisions referred to in sub-paragraph (1) above are—
(a) paragraph (b) of the definition of “quoted Eurobond” in section 124(6);
(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(c) section 246S(3)(c) and (e);
(d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(e) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(f) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(g) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(h) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(j) paragraph 11(a) and (c) of Schedule 9;
(k) paragraph (c) of paragraph 1(5C) of Schedule 18;
(l) paragraph 5 of Schedule 20; ...
(m) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(3) So far as relating to the provision mentioned in sub-paragraph (2)(a) above, sub-paragraph (1) above has effect in relation to any interest paid on a quoted Eurobond on or after 1st April 1996.
(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(5) So far as relating to the provisions mentioned in sub-paragraph (2)(c) ... above, sub-paragraph (1) above has effect in relation to accounting periods ending on or after 1st April 1996.
(6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(9) So far as relating to the provision mentioned in sub-paragraph (2)(h) above, sub-paragraph (1) above has effect in relation to relevant periods ending on or after 1st April 1996.
(10) So far as relating to the provisions mentioned in sub-paragraph (2)(j) and (k) above, sub-paragraph (1) above has effect in relation to any time falling on or after 1st April 1996.
(11) So far as relating to the provision mentioned in sub-paragraph (2)(l) above, sub-paragraph (1) above has effect in relation to chargeable periods ending on or after 1st April 1996.
7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
The Taxation of Chargeable Gains Act 1992
10 (1) In each of the provisions of the Taxation of Chargeable Gains Act 1992 listed in sub-paragraph (2) below, for the word “quoted” (wherever occurring) there shall be substituted “ listed ”.
(2) The provisions referred to in sub-paragraph (1) above are—
(a) section 144(8)(b);
(b) the definition of “unquoted company” in section 164N(1);
(c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(d) section 276(2)(c) and (6);
(e) section 281(3)(c); and
(f) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(3) So far as relating to the provisions mentioned in sub-paragraph (2)(a) and (c) to (f) above, sub-paragraph (1) above has effect in relation to disposals on or after 1st April 1996.
(4) So far as relating to the provision mentioned in sub-paragraph (2)(b) above, sub-paragraph (1) above has effect in relation to acquisitions of qualifying investments (within the meaning of section 164A of that Act) on or after 1st April 1996.
11 (1) In section 146(4)(b) of that Act (definition of “quoted shares and securities”), for the words “have a quoted market value” there shall be substituted the words “ are listed ”.
(2) This paragraph has effect in relation to disposals of options on or after 1st April 1996.
12 (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(2) In Schedule 11 to that Act (transitional provisions and savings), in paragraph 7(1)(a) (modification of section 272(3) when ascertaining market values before 25th March 1973), for “listed” there shall be substituted “ quoted ”.
(3) This paragraph has effect where the relevant date falls on or after 1st April 1996.
SCHEDULE 39 Enactment of Certain Inland Revenue Extra-Statutory Concessions
Section 201.
Part I Income Tax and Corporation Tax
Capital Allowances
1 (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(2) The following section shall be inserted after section 15 of the 1990 Act:
Balancing charge after cessation of trade.
15A (1) This section applies where:
(a) a balancing charge falls to be made as provided in section 15 on any person in respect of a building or structure which is temporarily out of use but is deemed by virtue of subsection (1) of that section still to be an industrial building or structure; and
(b) when the building or structure was last in use, it was in use as an industrial building or structure for the purposes of a trade which was carried on by that person but which has since been permanently discontinued.
(2) Where this section applies, the amount of the balancing charge shall be treated for the purposes of section 105 of the principal Act (allowable deductions) as a sum received by that person which is chargeable to tax under section 103 or 104(1) of the principal Act (charges on receipts after discontinuance), and accordingly any loss, expense, debit or capital allowance such as is referred to in section 105(1) may be deducted from the amount of the balancing charge.
(3) Nothing in subsection (2) above shall prevent any amounts allowable under any other provisions of the Tax Acts from being deducted from the amount of the balancing charge.
(4) Section 15(3) shall apply for the purposes of this section.
(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Contributions to overseas pension schemes
2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Part II Chargeable Gains
Treatment of compensation and insurance money
3 (1) Section 23 of the Taxation of Chargeable Gains Act 1992 (receipt of compensation and insurance money not treated as a disposal) shall be amended as follows.
(2) The following subsections shall be substituted for subsection (6):
(6) If a building (“the old building”) is destroyed or irreparably damaged, and all or part of a capital sum received by way of compensation for the destruction or damage, or under a policy of insurance of the risk of the destruction or damage, is applied by the recipient in constructing or otherwise acquiring a replacement building situated on other land (“the new building”), then for the purposes of subsections (4) and (5) above each of the old building and the new building shall be regarded as an asset separate from the land on which it is or was situated and the old building shall be treated as lost or destroyed.
(7) For the purposes of subsection (6) above:
(a) references to a building include references to any permanent or semi-permanent structure in the nature of a building; and
(b) the reference to a sum applied in acquiring the new building does not include a reference to a sum applied in acquiring the land on which the new building is situated; and
(c) all necessary apportionments shall be made of any expenditure, compensation or consideration, and the method of apportionment shall be such as is just and reasonable.
(8) This section shall apply in relation to a wasting asset with the following modifications:
(a) paragraphs (b) and (c) of subsection (1) above, and subsection (2) above, shall not apply; and
(b) in subsections (1) and (3) above, the amount of the expenditure from which the deduction is to be made shall be the amount which would have been allowable under Chapter III of this Part if the asset had been disposed of immediately after the application of the capital sum.
(3) The amendments made by this paragraph shall have effect in relation to capital sums received on or after 6th April 1996.
Assets of negligible value
4 (1) Section 24 of the Taxation of Chargeable Gains Act 1992 (disposals where assets lost or destroyed, or become of negligible value) shall be amended by the substitution of the following subsection for subsection (2):
(2) Where the owner of an asset which has become of negligible value makes a claim to that effect:
(a) this Act shall apply as if the claimant had sold, and immediately reacquired, the asset at the time of the claim or (subject to paragraphs (b) and (c) below) at any earlier time specified in the claim, for a consideration of an amount equal to the value specified in the claim.
(b) An earlier time may be specified in the claim if:
(i) the claimant owned the asset at the earlier time; and
(ii) the asset had become of negligible value at the earlier time; and either
(iii) for capital gains tax purposes the earlier time is not more than two years before the beginning of the year of assessment in which the claim is made; or
(iv) for corporation tax purposes the earlier time is on or after the first day of the earliest accounting period ending not more than two years before the time of the claim.
(c) Section 93 of and Schedule 12 to the Finance Act 1994 (indexation losses and transitional relief) shall have effect in relation to an asset to which this section applies as if the sale and reacquisition occurred at the time of the claim and not at any earlier time.
(2) The amendment made by this paragraph shall have effect in relation to claims made on or after 6th April 1996.
Settled Property
5 (1) Section 72 of the Taxation of Chargeable Gains Act 1992 (termination of life interest on death of person entitled) shall be amended as follows.
(2) In subsections (1), (2) and (5), for the words “a life” wherever they occur, there shall be substituted “ an ” and, in subsection (5), the word “life”, in the third place where it occurs, shall be omitted.
(3) For subsections (3) and (4) there shall be substituted the following subsections:
(3) This section shall apply on the death of the person entitled to any annuity payable out of, or charged on, settled property or the income of settled property as it applies on the death of a person whose interest in possession in the whole or any part of settled property terminates on his death.
(4) Where, in the case of any entitlement to an annuity created by a settlement some of the settled property is appropriated by the trustees as a fund out of which the annuity is payable, and there is no right of recourse to, or to the income of, settled property not so appropriated, then without prejudice to subsection (5) below, the settled property so appropriated shall, while the annuity is payable, and on the occasion of the death of the person entitled to the annuity, be treated for the purposes of this section as being settled property under a separate settlement.
(4) The amendments made by this paragraph shall have effect in relation to deaths occurring on or after 6th April 1996.
6 (1) Section 73 of the Taxation of Chargeable Gains Act 1992 (death of life tenant: exclusion of chargeable gain) shall be amended as follows.
(2) In subsection (1), for the words from “termination” to “that interest” there shall be substituted “ death of a person entitled to an interest in possession in the settled property ”.
(3) In subsection (2), the word “life” shall be omitted.
(4) In subsection (3), for the words from “subsection (5)” to “subsection (2) above” there shall be substituted “ subsections (3) to (5) of that section shall apply for the purposes of this section ”.
(5) The amendments made by this paragraph shall have effect in relation to deaths occurring on or after 6th April 1996.
Retirement Relief
7 (1) Paragraph 14 of Schedule 6 to the Taxation of Chargeable Gains Act 1992 shall be amended as follows.
(2) In subparagraph (2), the word “original” shall be inserted before “ qualifying period ”.
(3) The following subparagraphs shall be inserted at the end:
(7) In relation to the expression “the original qualifying period”, the questions whether a disposal is a qualifying disposal and whether the period relating to that disposal is a qualifying period shall be determined without regard to the requirement that the length of the period be at least one year.
(8) This paragraph shall not apply if the extended qualifying period resulting from the operation of subparagraphs (1) to (7) would be a period of less than one year.
(4) The amendments made by this paragraph shall have effect in relation to disposals made on or after 6th April 1996.
Relief for loans to traders
8 (1) Section 253 of the Taxation of Chargeable Gains Act 1992 (relief for loans to traders) shall be amended as follows.
(2) In subsection (3):
(a) for the words from the beginning until “is satisfied that” there shall be substituted “ Where a person who has made a qualifying loan makes a claim and at that time ”; and
(b) for the words “when the claim was made” there shall be substituted “ at the time of the claim or (subject to subsection (3A) below) any earlier time specified in the claim. ”
(3) The following subsection shall be inserted after subsection (3):
(3A) For the purposes of subsection (3) above, an earlier time may be specified in the claim if:
(a) the amount to which that subsection applies was also irrecoverable at the earlier time; and either
(b) for capital gains tax purposes the earlier time falls not more than two years before the beginning of the year of assessment in which the claim is made; or
(c) for corporation tax purposes the earlier time falls on or after the first day of the earliest accounting period ending not more than two years before the time of the claim.
(4) In subsection (4) for the words from the beginning until “is satisfied that” there shall be substituted “ Where a person who has guaranteed the repayment of a loan which is, or but for subsection (1)(c) above would be, a qualifying loan makes a claim and at that time ”.
(5) The amendments made by this paragraph shall have effect in relation to claims made on or after 6th April 1996.
Relief for debts on qualifying corporate bonds
9 (1) Section 254 of the Taxation of Chargeable Gains Act 1992 (relief for debts on qualifying corporate bonds) shall be amended as follows.
(2) In subsection (2):
(a) for the words from the beginning until “is satisfied that” there shall be substituted “ Where a person who has made a qualifying loan makes a claim and at that time ”; and
(b) for the words “when the claim was made” there shall be substituted “ at the time of the claim or (subject to subsection (8A) below) any earlier time specified in the claim ”.
(3) In subsections (6) and (7), the words “the inspector is satisfied that” shall be omitted.
(4) In subsection (8), the words “in the inspector’s opinion” shall be omitted.
(5) The following subsection shall be inserted after subsection (8):
(8A) For the purposes of subsection (2) above, an earlier time may be specified in the claim if:
(a) the condition which was fulfilled at the time of the claim was also fulfilled at the earlier time; and either
(b) for capital gains tax purposes the earlier time falls not more than two years before the beginning of the year of assessment in which the claim is made; or
(c) for corporation tax purposes the earlier time falls on or after the first day of the earliest accounting period ending not more than two years before the time of the claim.
(6) In subsection (11), the words “the inspector was satisfied that”, “by the inspector” and “he was satisfied that” shall be omitted.
(7) The amendments made by this paragraph shall have effect in relation to claims made on or after 6th April 1996.
Part III Stamp Duty
Lost or spoiled instruments
10 (1) The Stamp Duties Management Act 1891 (“the Management Act”) shall be amended as follows.
(2) In section 9 of the Management Act (procedure for obtaining allowance), subsection (7), paragraph (e), the words “which is inadvertently and undesignedly spoiled, and in lieu whereof another instrument made between the same parties and for the same purpose is executed and duly stamped, or” shall be omitted.
(3) The following section shall be inserted after section 12 of the Management Act:
Allowance for lost or spoiled instruments
Lost or spoiled instruments.
12A (1) This section applies where the Commissioners are satisfied that:
(a) an instrument which was executed and duly stamped (“the original instrument”) has been accidentally lost or spoiled; and
(b) in place of the original instrument, another instrument made between the same persons and for the same purpose (“the replacement instrument”) has been executed; and
(c) an application for relief under this section is made to the Commissioners; and either
(d) where the original instrument has been lost, the applicant undertakes to deliver it up to the Commissioners to be cancelled if it is subsequently found; or
(e) where the original instrument has been spoiled:
(i) the application is made within two years after the date of the original instrument, or if it is not dated, within two years after the time when it was executed, or within such further time as the Commissioners may allow; and
(ii) no legal proceeding has been commenced in which the original instrument has been or could or would have been given or offered in evidence; and
(iii) the original instrument is delivered up to the Commissioners to be cancelled.
(2) Where this section applies:
(a) the replacement instrument shall not be chargeable with any duty, but shall be stamped with the duty with which it would otherwise have been chargeable in accordance with the law in force at the time when it was executed, and shall be deemed for all purposes to be duly stamped; and
(b) if any duty, interest, fine or penalty was paid in respect of the replacement instrument before the application was made, the Commissioners shall pay to such person as they consider appropriate an amount equal to the duty, interest, fine or penalty so paid.
(3) For the purposes of this section the Commissioners may require the applicant to produce such evidence by statutory declaration or otherwise as they think fit.
(4) Subject to subparagraph (5) below, the amendments made by this paragraph shall have effect from the day on which this Act is passed.
(5) The amendments made by this paragraph shall not apply in relation to an instrument which has been accidentally spoiled if an application for allowance under section 9 of the Management Act was made before the day on which this Act is passed.
Section 202.
The Stamp Act 1891 (c. 39)
1 In the definition of “stock” in section 122(1) of the Stamp Act 1891, after “Bank of Ireland,” there shall be inserted “ any strip (within the meaning of section 47 of the Finance Act 1942) of any such stocks or funds, ”.
2 (1) At the end of paragraph (1) of the general exemptions at the end of Schedule 1 to the Stamp Act 1891 (exemption for Government stocks etc.) there shall be inserted “ or strips (within the meaning of section 47 of the Finance Act 1942) of such stocks or funds ”.
(2) Where any day is appointed as the abolition day for the purposes of sections 107 to 110 of the Finance Act 1990, sub-paragraph (1) above shall cease to have effect in accordance with the provisions of that Act for the coming into force of the repeal of the paragraph mentioned in that sub-paragraph.
The Taxes Act 1988
7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
The Taxation of Chargeable Gains Act 1992 (c. 12)
8 In Schedule 9 to the Taxation of Chargeable Gains Act 1992 (gilt-edged securities), after paragraph 1 there shall be inserted the following paragraph—
1A (1) Any security which is a strip of a security which is a gilt-edged security for the purposes of this Act is also itself a gilt-edged security for those purposes.
(2) In this paragraph “strip” has the same meaning as in section 47 of the Finance Act 1942.
Part I Hydrocarbon Oil Duty: relief for marine voyages
Chapter | Short title | Extent of repeal
1979 c. 2. | The Customs and Excise Management Act 1979. | In section 61(2), the words from “and in” to “waters)”.
1979 c. 5. | The Hydrocarbon Oil Duties Act 1979. | Section 18 and in section 19(1), paragraph (a) and the words from “by the owner” to “be”.
In section 24(1), the words “section 18(1)”.
In Schedule 4, in paragraph 3, the word “18(1)”.
1979 c. 8. | The Excise Duties (Surcharges or Rebates) Act 1979. | In section 1(7), paragraph (c) and in paragraph (d), the words “fishing boats”.
1981 c. 35. | The Finance Act 1981. | In section 6(1) and (4), the word “18(1)”.
1994 c. 9. | The Finance Act 1994. | In Schedule 4, paragraph 53.
The power in section 8(2) of this Act applies to these repeals as it applies to that section.
Part II Vehicle Excise and Registration
(1) Electrically propelled vehicles
Chapter | Short title | Extent of repeal
1994 c. 22. | The Vehicle Excise and Registration Act 1994. | In Schedule 1, paragraph 4F(2).
This repeal has effect in accordance with section 15(4) of this Act.
(2) Vehicles capable of conveying loads
Chapter | Short title | Extent of repeal
1994 c. 22. | The Vehicle Excise and Registration Act 1994. | In Schedule 1—
(a) in paragraph 9(2), the word “and” immediately preceding paragraph (b);
(b) in paragraph 11(2), the word “and” immediately preceding paragraph (b);
(c) paragraph 15; and
(d) in paragraph 16(1), paragraph (b) and the word “or” immediately preceding it.
These repeals have effect in accordance with section 17 of this Act.
(3) Old vehicles
Chapter | Short title | Extent of repeal
1994 c. 22. | The Vehicle Excise and Registration Act 1994. | In Schedule 1, paragraphs 1(3) to (5) and 2(2).
1995 c. 4. | The Finance Act 1995. | In Schedule 4, paragraph 6(2).
These repeals have effect in accordance with section 18(5) of this Act.
(4) Exemptions for vehicle testing
Chapter | Short title | Extent of repeal
1994 c. 22. | The Vehicle Excise and Registration Act 1994. | In paragraph 22 of Schedule 2—
(a) in each of paragraphs (b) and (d) of sub-paragraph (5), the word “goods”;
(b) sub-paragraph (5)(c);
(c) the word “and” at the end of sub-paragraph (7)(b); and
(d) in sub-paragraph (10)(a), the words “(or, in Northern Ireland, a vehicle test certificate)”.
These repeals have effect in accordance with section 20 of this Act.
(5) Provisions relating to Northern Ireland
Chapter | Short title | Extent of repeal
1994 c. 22. | The Vehicle Excise and Registration Act 1994. | In paragraph 17 of Schedule 3, in sub-paragraph (1), “29(2),” and “34(6),” and sub-paragraph (2).
(6) Licensing and registration
Chapter | Short title | Extent of repeal
1994 c. 22. | The Vehicle Excise and Registration Act 1994. | In section 22—
(a) in subsection (1), the word “and” immediately preceding paragraph (h); and
(b) in subsection (1B), the word “above”.
In section 57(1), the words “(other than sections 7(2) and (3), 8, 26, 27, 52 and 54)”.
Part III Excise duties: repeal of drawbacks etc.
Chapter | Short title | Extent of repeal
1977 c. 36. | The Finance Act 1977. | Section 3.
1979 c. 4. | The Alcoholic Liquor Duties Act 1979. | Section 22(6).
Section 23.
Section 92(6).
1979 c. 7. | The Tobacco Products Duty Act 1979. | Section 11(3).
1979 c. 58. | The Isle of Man Act 1979. | In section 9—
(a) in subsection (1), the words “subsection (2) below and”; and
(b) subsections (2) and (3).
Part IV Value Added Tax
(1) Fiscal warehousing
Chapter | Short title | Extent of repeal
1994 c. 23. | The Value Added Tax Act 1994. | In section 62(1)(a), the words “or” at the end of sub-paragraph (i) and “and” at the end of sub-paragraph (ii).
This repeal has effect in accordance with section 26(2) of this Act.
(2) Work on materials
Chapter | Short title | Extent of repeal
1994 c. 23. | The Value Added Tax Act 1994. | Section 22.
In section 55(5)(a), the word “or” at the end of the paragraph.
Section 97(4)(b).
In Schedule 4, paragraph 2.
(3) Value of imported goods
Chapter | Short title | Extent of repeal
1994 c. 23. | The Value Added Tax Act 1994. | In section 21(2)(a), the word “and” at the end of the paragraph.
This repeal has effect in accordance with section 27(4) of this Act.
(4) Construction and conversion of buildings
Chapter | Short title | Extent of repeal
1995 c. 4. | The Finance Act 1995. | Section 33(2).
This repeal has effect in accordance with section 30(4) of this Act.
(5) Groups
Chapter | Short title | Extent of repeal
1994 c. 23. | The Value Added Tax Act 1994. | Section 43(1A).
1995 c. 4. | The Finance Act 1995. | In section 25(2), the words from the beginning to the word “and” immediately after the subsection (1A) inserted in section 43 of the Value Added Tax Act 1994.
These repeals have effect in accordance with section 31(5) of this Act.
Part V Income Tax, Corporation Tax and Capital Gains Tax
(1) Application of lower rate to income from savings
Chapter | Short title | Extent of repeal
1988 c. 1. | The Income and Corporation Taxes Act 1988. | Section 207A.
Sections 468E and 468EE.
In section 469—
(a) in subsection (1), paragraph (b) and the word “and” immediately preceding it; and
(b) the second paragraph of subsection (3).
1990 c. 29. | The Finance Act 1990. | Section 51.
1992 c. 48. | The Finance (No. 2) Act 1992. | Section 19(4).
1993 c. 34. | The Finance Act 1993. | Section 77(1) and (2).
Section 79(3).
In Schedule 6, paragraph 14.
1994 c. 9. | The Finance Act 1994. | Section 111.
1. Subject to note 2 below, these repeals come into force in accordance with section 73 of, and Schedule 6 to, this Act.
2. The repeals in section 469 of the Taxes Act 1988 come into force for distribution periods ending on or after 6th April 1996.
(2) Transfer of Schedule C charge etc.
Chapter | Short title | Extent of repeal
1970 c. 9. | The Taxes Management Act 1970. | In the Table in section 98—
(a) in the first column, the entry relating to paragraph 13(1) of Schedule 3 to the Taxes Act 1988; and
(b) in the second column, the entry relating to paragraph 6C of that Schedule.
1988 c. 1. | The Income and Corporation Taxes Act 1988. | Section 17.
In section 18(3), in Case IV, the words “except such income as is charged under Schedule C”.
Sections 44 and 45.
Section 48.
In sections 50(1) and 51A(1), the words “but shall be chargeable to tax under Case III of Schedule D”.
Section 52.
Section 123.
In section 124—
(a) in subsection (6), the definitions of “recognised clearing system” and “relevant foreign securities”, and the word “and” immediately preceding those definitions; and
(b) subsection (7).
In section 322(1), the words “and he shall be treated as not resident in the United Kingdom for the purposes of sections 48 and 123(4)”.
In section 398(b), the words “C or”.
Section 474(1) and (3).
Section 505(1)(c)(i).
Section 582A(3).
In section 832(1), the definition of “recognised clearing system”.
Schedule 3.
1988 c. 39. | The Finance Act 1988. | Section 76(1), (2), (3) and (5).
1989 c. 26. | The Finance Act 1989. | In section 178(2)(m), the words “and paragraph 6B of Schedule 3 to”.
1992 c. 48. | The Finance (No. 2) Act 1992. | Section 30.
In Schedule 11, paragraphs 1, 2, 4 and 5.
1993 c. 34. | The Finance Act 1993. | In Schedule 6, paragraphs 17 and 25(5).
1995 c. 4. | The Finance Act 1995. | In section 128(3)(a), the words “Schedule C”.
These repeals have effect—
(a) in accordance with Schedule 7 to this Act; and
(b) without prejudice to paragraph 25 of Schedule 6 to this Act.
(3) Loan relationships
Chapter | Short title | Extent of repeal
1970 c. 9. | The Taxes Management Act 1970. | In section 42 (as substituted by paragraph 13 of Schedule 19 to the Finance Act 1994), in subsection (7)(a), “484,”.
1988 c. 1. | The Income and Corporation Taxes Act 1988. | Section 57.
Section 78.
Sections 88A to 88C.
Sections 126 and 126A.
In section 242, in each of subsections (2)(b) and (8)(b), the words “or paragraph 5 of Schedule 4”.
In section 337—
(a) in subsection (2), the words “to subsection (3) below and”; and
(b) subsection (3).
In section 338—
(a) in subsection (3), the words from “and” at the end of paragraph (a) to the end of the subsection;
(b) in subsection (4), paragraphs (b) and (c);
(c) in subsection (5)(a), the words “, not being interest”; and
(d) subsection (6).
Section 338A.
Section 340.
Section 341.
Section 401(1A).
In section 404(6)(c)(ii), the words “or paragraph 5(2) of Schedule 4”.
In section 477A, subsections (3A) to (3C).
Sections 484 and 485.
In section 494(3), the words “not consisting of a payment of interest”.
Section 714(6).
Section 724.
In section 804A(3), in paragraph (b) of the definition of “B”, the words “and interest”.
Schedule 4.
In Schedule 19AC, in paragraph 5B(2)(b), the words “or paragraph 5 of Schedule 4”.
In Schedule 23A, paragraphs 6(3), (4), (6) and (7).
In Schedule 26, the word “and” at the end of paragraph 1(3)(d).
1989 c. 15. | The Water Act 1989. | Section 95(10).
1989 c. 26. | The Finance Act 1989. | Sections 93 to 95.
Section 116.
Schedules 10 and 11.
1990 c. 29. | The Finance Act 1990. | Section 56.
Sections 58 and 59.
Section 74.
Schedule 10.
1991 c. 31. | The Finance Act 1991. | Section 52(2) and (3).
In Schedule 12, paragraphs 3 and 4.
1992 c. 12. | The Taxation of Chargeable Gains Act 1992. | Section 108(1)(b).
Section 117(2A), (3), (9) and (10).
Section 118.
In Schedule 10, paragraphs 14(6), (29) and (57), 19(6) and 22(4).
1992 c. 48. | The Finance (No. 2) Act 1992. | Section 33.
In section 65(2)—
(a) paragraphs (b) and (c); and
(b) in paragraph (f), the words “to (c)”.
Schedule 7.
1993 c. 34. | The Finance Act 1993. | Sections 61 to 66.
Section 103(4).
Section 129(5) and (6).
Section 152(2).
Section 153(6) and (11A).
Section 164(12).
Section 176(3)(b) to (d).
In Schedule 6—
(a) paragraph 18;
(b) in paragraph 20, the words “and in paragraph 11(1) of Schedule 11 to that Act”; and
(c) paragraph 21.
In Schedule 17, paragraphs 4 to 6.
In Schedule 18, paragraphs 3 and 7.
1994 c. 9. | The Finance Act 1994. | Section 171.
Section 251(12).
In Schedule 18, in paragraph 4—
(a) the definition of “the I minus E basis”; and
(b) the words after the definition of “non-life mutual business”.
In Schedule 24, in paragraph 9—
(a) the words “and 254” and the words “or 254”, in each place where they occur; and
(b) in sub-paragraph (9), the words “and subsection (10) of section 254 of that Act”.
1995 c. 4. | The Finance Act 1995. | Section 42(6).
Section 50.
Section 87(6).
Sections 88 and 89.
Schedule 7.
In Schedule 8, paragraphs 10 and 12(1)(c).
In Schedule 24, paragraphs 4 to 6.
These repeals come into force in accordance with the provisions of Chapter II of Part IV of this Act.
(4) Provision of living accommodation
Chapter | Short title | Extent of repeal
1988 c. 1. | The Income and Corporation Taxes Act 1988. | In section 145(1), the words “and is not otherwise made the subject of any charge to him by way of income tax”.
This repeal has effect in accordance with section 106 of this Act.
(5) Share option schemes etc.
Chapter | Short title | Extent of repeal
1988 c. 1. | The Income and Corporation Taxes Act 1988. | In section 187(8), paragraph (b) and the word “and” immediately preceding it.
In Schedule 9, in paragraph 21(1), the word “and” immediately preceding paragraph (e), paragraph 28(2) and (4) and paragraph 29(8).
1989 c. 26. | The Finance Act 1989. | In Schedule 5, in paragraph 4(5)(a), the words “not less than one year and”.
1992 c. 12. | The Taxation of Chargeable Gains Act 1992. | Section 149A(4).
Section 238(4).
1. The repeal in section 187 of the Taxes Act 1988 has effect in accordance with section 117 of this Act.
2. The repeal in paragraph 21 of Schedule 9 to that Act has effect in accordance with section 113 of this Act.
3. The repeals in paragraphs 28 and 29 of that Schedule have effect in accordance with section 114 of this Act.
4. The repeal in the Finance Act 1989 has effect in accordance with section 119 of this Act.
5. The repeal of section 149A(4) of the Taxation of Chargeable Gains Act 1992 has effect in accordance with section 111(6) of this Act.
6. The repeal of section 238(4) of that Act 1992 has effect in accordance with section 112(2) and (3) of this Act.
(6) Self-assessment: returns etc.
Chapter | Short title | Extent of repeal
1970 c. 9. | The Taxes Management Act 1970. | In section 8(1A), the words from “and the amounts referred to” to the end.
In section 8A(1A), the words from “and the amounts referred to” to the end.
In section 12AA(7)(a), the words “any part of”.
Section 12AC(6).
In section 28C(3), the words “or 11AA”.
In section 42, subsections (3A) and (3B) and, in subsection (7)(a), the words “534, 535, 537A, 538”.
1988 c. 1. | The Income and Corporation Taxes Act 1988. | In section 108, the words from “and, in any such case” to the end.
In section 535, in subsection (4), the words “Subject to subsection (5) below”, subsections (5) and (7) and, in subsection (6), the words from “unless the author” to the end.
In section 547(5)(a), the words from “no assessment” to “but”.
In section 599A, in subsection (6), the words from “subject” to “and” and subsection (7).
1992 c. 12. | The Taxation of Chargeable Gains Act 1992. | In section 246, the words from “or, if earlier” to the end.
1994 c. 9. | The Finance Act 1994. | In Schedule 19, paragraph 23.
1.The repeals of subsections (3A) and (3B) of section 42 of the Taxes Management Act 1970 and the repeals in sections 108 and 535 of the Income and Corporation Taxes Act 1988 have effect in accordance with section 128(11) of this Act.
2. The repeal in subsection (7)(a) of section 42 of the Taxes Management Act 1970 has effect in accordance with section 128(12) of this Act.
3. The other repeals have effect in accordance with section 121(8) of this Act.
(7) Self-assessment: notices
Chapter | Short title | Extent of repeal
1970 c. 9. | The Taxes Management Act 1970. | In section 42, in subsection (7), in paragraph (a), “62A,” and “401,”, and in paragraph (c), “30,”, “33,”, “48, 49,” and “124A,” and in subsection (10) the words “and notices”.
These repeals have effect in accordance with section 130 of this Act.
(8) Overdue tax and excessive payments by the Board
Chapter | Short title | Extent of repeal
1970 c. 9. | The Taxes Management Act 1970. | Section 88.
Section 88A.
In section 91(1), the words “or section 88”.
Section 113(1C).
1971 c. 68. | The Finance Act 1971. | In Schedule 6, paragraph 87.
1975 c. 45. | The Finance (No. 2) Act 1975. | Section 46(4).
1980 c. 48. | The Finance Act 1980. | Section 61(4), so far as relating to section 88(5)(c) and (d) of the Taxes Management Act 1970.
1988 c. 1. | The Income and Corporation Taxes Act 1988. | In section 374A(4), the words from “and as if” onwards.
In Schedule 14, in paragraph 6(2) the words from “and as if” onwards.
In Schedule 29, in paragraph 32, the entries relating to section 88(2), section 88(5)(b) and section 88(5)(c) of the Taxes Management Act 1970.
1989 c. 26. | The Finance Act 1989. | Section 159.
Section 160(1), (2) and (4).
Section 161.
In section 178(2)(f), the words “88”.
In section 179(1)(b)(i), the words “and 88(1)”.
These repeals have effect in accordance with paragraph 17 of Schedule 18 to this Act.
(9) Self-assessment: claims and enquiries
Chapter | Short title | Extent of repeal
1970 c. 9. | The Taxes Management Act 1970. | In section 31(5), the words “against any assessment”.
This repeal has effect in accordance with Schedule 19 to this Act.
(10) Self-assessment: discretions etc.
Chapter | Short title | Extent of repeal
1988 c. 1. | The Income and Corporation Taxes Act 1988. | In section 74(1)(j)(i), the words “proved to be such”.
In section 145(7)(a) and (b), the words “it can be shown that”.
Section 159(4) to (6).
In section 161, in subsection (3), the words “it is shown that” and, in subsection (4), the words “shows that he”.
In section 231(3A), the words “it appears to the inspector that”.
In section 257(2) and (3), the words “proves that he”.
In section 257E(1) the words “he proves” and, in each of paragraphs (a) and (b), the word “that” in the first and third places where it occurs.
In section 257F, in the words preceding paragraph (a), the words “the claimant proves”, and the word “that” in the second place where it occurs in paragraph (a), the first place where it occurs in paragraph (b) and the first and third places where it occurs in paragraph (c).
In section 259(6), the second paragraph.
In section 265(1), the words “proves that he”.
In section 278(2), the words “satisfies the Board that he or she”.
In section 381(4), the words “it is shown that”.
In section 384(1), the words “it is shown that”.
In section 570(2), the words “on a claim it is shown in accordance with the provisions of Part II of Schedule 21 that”.
In section 582(2)(b), the words “the Board are satisfied that”.
In section 731(3), the words following paragraph (b).
In section 769(2)(d), the words “any gift of shares”.
In section 812(4), paragraph (a).
In Schedule 7, in paragraph 1(5), the words “and shown to have been made”.
In Schedule 12, in paragraph 2(2), the words “shown to be”.
In Schedule 21, paragraph 3.
1992 c. 12. | The Taxation of Chargeable Gains Act 1992. | In section 52(4), the words “such method as appears to the inspector or on appeal the Commissioners concerned to be”.
In section 116(13), the words “the inspector is satisfied that” and “and so directs,”.
In section 122, in subsection (2), the words “the inspector is satisfied that” and “and so directs” and subsection (3).
In section 133, in subsection (2), the words “the inspector is satisfied that” and “and so directs” and subsection (3).
In section 164F(8)(a), the words “it is shown that”.
In section 164FG(2), the words “or an officer of the Board in default of an election determines”.
In section 181(1)(b), the words “it is shown that” and the word “that” in the second place where it occurs.
In section 222, in subsection (5), paragraph (b) and the words following it and, in subsection (6), paragraph (b) and the word “and” immediately preceding it.
Section 226(5).
In section 271(2), in the second paragraph, the words “the Board are satisfied that”.
In Schedule 6, in paragraph 3, in sub-paragraphs (1), (3) and (4), the words “on production of such evidence as the Board may reasonably require, the Board are satisfied”.
1993 c. 34. | The Finance Act 1993. | In section 144, in subsections (1)(b) and (2)(b), the words “the inspector is satisfied,” and the word “that”, in the first place where it occurs, and, in subsection (3)(b), the words “in the opinion of the inspector” and subsection (4).
In section 145, in subsection (1)(c), the words “the inspector is satisfied that”, in subsections (2)(b) and (3)(b), the words “in the opinion of the inspector”, in subsection (4)(b), the words “the inspector is satisfied that” and in subsection (5), the words “in the opinion of the inspector” and subsection (6).
These repeals have effect in accordance with section 134 of, and Schedule 20 to, this Act.
(11) Self-assessment: time limits
Chapter | Short title | Extent of repeal
1990 c. 1. | The Capital Allowances Act 1990. | In section 37(2), the words following paragraph (d).
1992 c. 12. | The Taxation of Chargeable Gains Act 1992. | In Schedule 4, in paragraph 9(1)(b), the words “year of assessment or”.
1994 c. 9. | The Finance Act 1994. | In Schedule 15, paragraph 21(a)(ii).
These repeals have effect in accordance with section 135 of, and Schedule 21 to, this Act.
(12) Self-assessment: appeals
Chapter | Short title | Extent of repeal
1970 c. 9. | The Taxes Management Act 1970. | Section 42(12).
In section 44—
(a) subsections (1A) and (1B), and
(b) in subsection (2), the words “and any direction under subsection (1A) above”.
Schedule 2.
1975 c. 7. | The Finance Act 1975. | Section 54.
1975 c. 45. | The Finance (No. 2) Act 1975. | Section 66.
1976 c. 40. | The Finance Act 1976. | In Schedule 9, paragraph 11.
1984 c. 43. | The Finance Act 1984. | In Schedule 22, paragraph 3(2).
1988 c. 1. | The Income and Corporation Taxes Act 1988. | In the Table in paragraph 32 of Schedule 29, the entries relating to Schedule 3 to the Taxes Management Act 1970.
1988 c. 39. | The Finance Act 1988. | Section 133(1).
1989 c. 26. | The Finance Act 1989. | Section 160(6).
Section 168(8).
1990 c. 1. | The Capital Allowances Act 1990. | In Schedule 1, paragraph 1(4).
1994 c. 9. | The Finance Act 1994. | In Schedule 19, paragraph 36.
1995 c. 4. | The Finance Act 1995. | In Schedule 17, in paragraph 22, the words “(including that provision as proposed to be substituted by paragraph 7 of Schedule 19 to the Finance Act 1994)”.
These repeals have effect in accordance with Schedule 22 to this Act.
(13) Self-assessment: accounting periods etc.
Chapter | Short title | Extent of repeal
1988 c. 1. | The Income and Corporation Taxes Act 1988. | Section 8A.
1993 c. 34. | The Finance Act 1993. | Section 206(2).
(14) Self-assessment: advance corporation tax
Chapter | Short title | Extent of repeal
1988 c. 1. | The Income and Corporation Taxes Act 1988. | Section 239(5).
This repeal has effect in accordance with Schedule 25 to this Act.
(15) Class 4 contributions
Chapter | Short title | Extent of repeal
1988 c. 1. | The Income and Corporation Taxes Act 1988. | Section 617(5).
1992 c. 4. | The Social Security Contributions and Benefits Act 1992. | In Schedule 2, in paragraph 3(2), the words “(e) section 617(5) (relief for Class 4 contributions)”.
1992 c. 7. | The Social Security Contributions and Benefits (Northern Ireland) Act 1992. | In Schedule 2, in paragraph 3(2), the words “(e) section 617(5) (relief for Class 4 contributions)”.
These repeals have effect in accordance with section 147 of this Act.
(16) Personal injury damages and compensation
Chapter | Short title | Extent of repeal
1988 c. 1. | The Income and Corporation Taxes Act 1988. | Sections 329A to 329C.
1995 c. 4. | The Finance Act 1995. | Section 142.
1995 c. 53. | The Criminal Injuries Compensation Act 1995. | Section 8.
(17) Foreign income dividends
Chapter | Short title | Extent of repeal
1988 c. 1. | The Income and Corporation Taxes Act 1988. | In section 246S—
(a) in subsection (3), the words after paragraph (e); and
(b) subsection (8).
These repeals have effect in accordance with Schedule 27 to this Act.
(18) FOTRA securities
Chapter | Short title | Extent of repeal
1988 c. 1. | The Income and Corporation Taxes Act 1988. | Section 47.
Section 474(2).
In section 475—
(a) in subsection (5), the words “Subject to subsection (6) below,”;
(b) subsections (6) and (7); and (c) in subsection (8), the words from “and this subsection” onwards.
In section 715—
(a) in subsection (1), paragraphs (g) and (h); and
(b) in subsection (8), the definition of “FOTRA securities”.
1993 c. 34. | The Finance Act 1993. | In section 174—
(a) subsection (6); and
(b) in subsection (7), the definitions of “FOTRA securities” and “non-resident United Kingdom trader”.
1994 c. 9. | The Finance Act 1994. | Section 222(6) and (7).
These repeals come into force in accordance with section 154(9) of this Act.
(19) Paying and collecting agents
Chapter | Short title | Extent of repeal
1988 c. 39. | The Finance Act 1988. | Section 76(4) and (6).
(20) Accrued income scheme
Chapter | Short title | Extent of repeal
1988 c. 1. | The Income and Corporation Taxes Act 1988. | Section 721(1) and (4).
These repeals come into force in accordance with section 158 of this Act.
(21) Manufactured payments, repos, etc.
Chapter | Short title | Extent of repeal
1970 c. 9. | The Taxes Management Act 1970. | In the first column of the Table in section 98, the entry relating to section 729(11) of the Taxes Act 1988.
1988 c. 1. | The Income and Corporation Taxes Act 1988. | Section 729.
Section 732(3).
In section 737(5AA)(b), the words from “and the words” onwards.
Section 737A(2)(b).
Section 786(4).
In Schedule 23A, paragraph 4(7A).
1994 c. 9. | The Finance Act 1994. | Section 124.
1995 c. 4. | The Finance Act 1995. | Section 80(2).
1. Subject to note 2 below, these repeals have effect in accordance with section 159(1) of this Act.
2. The repeals in section 737 of, and Schedule 23A to, the Taxes Act 1988, and the repeal of section 124 of the Finance Act 1994, come into force on the day on which this Act is passed.
(22) Venture capital trusts
Chapter | Short title | Extent of repeal
1988 c. 1. | The Income and Corporation Taxes Act 1988. | In Schedule 28B, in paragraph 9, in sub-paragraph (1) the words “subject to sub-paragraph (2) below” and sub-paragraph (2).
These repeals have effect in accordance with section 161 of this Act.
(23) Life assurance business losses
Chapter | Short title | Extent of repeal
1988 c. 1. | The Income and Corporation Taxes Act 1988. | Section 436(3)(aa).
Section 439B(3)(b).
Section 441(4)(aa).
1995 c. 4. | The Finance Act 1995. | In Schedule 8, paragraph 16(4) and (5).
These repeals have effect in accordance with paragraph 10(2) of Schedule 31 to this Act.
(24) Management expenses of insurance companies
Chapter | Short title | Extent of repeal
1988 c. 1. | The Income and Corporation Taxes Act 1988. | In section 434(1)(b), the words from “of the tax” onwards.
In section 434D(8), in paragraph (b) of the second sentence, the words from “of the tax” onwards.
In section 442(3), the words “otherwise than for the purposes of section 76(2)”.
In section 473, subsection (5).
In Schedule 19AC—
(a) in paragraph 5(1), in the subsection (6B) deemed to be inserted in section 76, the words “and subsections (2) and (3)(b) above”; and
(b) in paragraph 9, in the subsection (1A) deemed to be inserted in section 434, the words from “of the tax” onwards.
1992 c. 12. | The Taxation of Chargeable Gains Act 1992. | In Schedule 10, in paragraph 14(27)(a), the words “and (5)”.
These repeals come into force in accordance with section 164(5) of this Act.
(25) Annual payments under insurance policies
Chapter | Short title | Extent of repeal
1988 c. 1. | The Income and Corporation Taxes Act 1988. | Section 434B(1).
This repeal has effect in accordance with section 165 of this Act.
(26) Industrial assurance business
Chapter | Short title | Extent of repeal
1988 c. 1. | The Income and Corporation Taxes Act 1988. | In section 431(2)—
(a) the definitions of “industrial assurance business” and of “ordinary long term business” and “ordinary life assurance business”; and
(b) in the definition of “long term business fund”, the words from “or, where” to “so maintained”.
Section 432(2).
In section 458(3), the words “or industrial assurance business”.
1989 c. 26. | The Finance Act 1989. | Section 83A(5).
1990 c. 29. | The Finance Act 1990. | In Schedule 6, paragraph 3.
These repeals come into force in relation to accounting periods beginning on or after 1st January 1996.
(27) Provisional repayments in connection with insurance companies’ pension business
Chapter | Short title | Extent of repeal
1988 c. 1. | The Income and Corporation Taxes Act 1988. | In Schedule 19AB, in paragraph 1(5)(b), the word “and” immediately preceding sub-paragraph (ii) and paragraphs 1(8) and 6(3).
In Schedule 19AC, paragraph 15(1).
These repeals have effect in accordance with section 169 of, and Schedule 34 to, this Act.
(28) Friendly societies
Chapter | Short title | Extent of repeal
1992 c. 48. | The Finance (No. 2) Act 1992. | In Schedule 9, paragraph 14(2).
This repeal has effect in accordance with section 171 of this Act.
(29) Loans to participators etc.
Chapter | Short title | Extent of repeal
1988 c. 1. | The Income and Corporation Taxes Act 1988. | In section 419(6), the words “and to a company not resident in the United Kingdom”.
This repeal has effect in accordance with section 173(6) of this Act.
(30) Chargeable gains: non-resident companies
Chapter | Short title | Extent of repeal
1992 c. 12. | The Taxation of Chargeable Gains Act 1992. | Section 13(5)(a) and (6).
In Schedule 5, paragraph 8(10).
These repeals come into force in relation to gains accruing on or after 28th November 1995.
(31) Cancellation of tax advantages: transactions in certain securities
Chapter | Short title | Extent of repeal
1996 c. 8. | The Finance Act 1996. | In section 175, subsections (2) and (3) and, in subsection (4), the words “Except as provided by subsection (3) above,”.
These repeals have effect in accordance with section 175(3) of this Act.
(32) Sub-contractors in the construction industry
Chapter | Short title | Extent of repeal
1988 c. 1. | The Income and Corporation Taxes Act 1988. | In section 566(2), the words “and any such regulations may make different provision for different circumstances.”
(33) Capital allowances: roll-over relief in respect of ships
Chapter | Short title | Extent of repeal
1990 c. 1. | The Capital Allowances Act 1990. | In section 33C(2), the words “to be”, in the first place where they occur.
(34) Controlled foreign companies
Chapter | Short title | Extent of repeal
1988 c. 1. | The Income and Corporation Taxes Act 1988. | In section 747A, subsection (7) and, in subsection (8), the words “the company is not a trading company and”.
In Schedule 25, in paragraph 2A, in sub-paragraph (1), the words “which is not a trading company” and sub-paragraphs (6) and (7) and, in paragraph 3, sub-paragraphs (1) to (4) and, in sub-paragraph (5), the words “the available profits or, where the company is not a trading company,”.
These repeals have effect in accordance with section 182 of this Act.
Part VI Inheritance Tax
Chapter | Short title | Extent of repeal
1984 c. 51. | The Inheritance Tax Act 1984. | In section 105—
(a) in subsection (1), “109A”, the words “shares in or” in paragraph (b), and paragraph (c);
(b) subsections (1A) and (1B);
(c) in subsection (2), the words “(b) or”; and (d) subsection (2A).
In section 107(4), the words “and section 109A below”.
Section 109A.
Section 116(2A).
1987 c. 16. | The Finance Act 1987. | In Schedule 8, paragraphs 5 to 7.
1995 c. 4. | The Finance Act 1995. | Section 155(2).
1 Subject to note 2 below, these repeals have effect in accordance with section 184(6)(b) of this Act.
2 The repeal in section 116 of the Inheritance Tax Act 1984, and the related repeal in section 155 of the Finance Act 1995, have effect in accordance with section 185(3) and (6) of this Act.
Part VII Stamp duty and stamp duty reserve tax
Chapter | Short title | Extent of repeal
1986 c. 41. | The Finance Act 1986. | In section 87, in subsection (2), the words “the expiry of the period of two months beginning with” and the words from “unless” to the end and subsections (4), (5) and (8).
Section 88(2) and (3) Section 94(8).
Section 96(12).
Section 97(2).
1996 c. 8. | The Finance Act 1996. | Sections 186 to 196.
1 The repeals in sections 87 and 88 of the Finance Act 1986 have effect in accordance with sections 188 and 192 of this Act.
2 The repeals in sections 94 and 96 of the Finance Act 1986 have effect in accordance with section 194 of this Act.
3 The repeal in section 97 of the Finance Act 1986 has effect in accordance with section 196(4) of this Act.
4 The repeals in the Finance Act 1996 have effect—
(a) so far as relating to stamp duty, in accordance with section 108 of the Finance Act 1990; and
(b) so far as relating to stamp duty reserve tax, in accordance with section 110 of the Finance Act 1990.
Part VIII Miscellaneous
(1) Rates of interest
Chapter | Short title | Extent of repeal
1994 c. 9. | The Finance Act 1994. | In Schedule 6, paragraph 11.
In Schedule 7, paragraph 21(5).
1994 c. 23. | The Value Added Tax Act 1994. | Section 74(6).
Subsection (7) of section 197 of this Act applies in relation to these repeals as it applies in relation to subsection (6) of that section.
(2) Banks
Chapter | Short title | Extent of repeal
1984 c. 51. | The Inheritance Tax Act 1984. | In section 157(5), paragraph (b) and the word “and” immediately preceding it.
1987 c. 22. | The Banking Act 1987. | In Schedule 6, paragraph 17.
These repeals have effect in accordance with Schedule 37 to this Act.
(3) Quotation and listing of securities
Chapter | Short title | Extent of repeal
1992 c. 12. | The Taxation of Chargeable Gains Act 1992. | Section 288(4).
This repeal has effect in relation to times falling on or after 1st April 1996.
(4) Enactment of extra-statutory concessions
Chapter | Short title | Extent of repeal
1891 c. 38. | The Stamp Duties Management Act 1891. | In section 9(7)(e), the words from “which is inadvertently” to “executed and duly stamped, or”.
1992 c. 12. | The Taxation of Chargeable Gains Act 1992. | In section 72(5), the word “life” in the third place where it occurs.
In section 73(2), the word “life”.
Section 75.
In section 254—
(a) in subsections (6) and (7), the words “the inspector is satisfied that”;
(b) in subsection (8), the words “in the inspector’s opinion”; and
(c) in subsection (11), the words “the inspector was satisfied that”, “by the inspector” and “he was satisfied that”.
These repeals have effect in accordance with Schedule 39 to this Act.