Finance Act 1985

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54 Withdrawal of right of certain non-resident companies to payment of tax credits.

(1) This section applies to a company which has, or is an associated company of a company which has, a qualifying presence in a unitary state and, at any time when it or its associated company has such a qualifying presence, is entitled by virtue of arrangements having effect under section 497(1) of the Taxes Act (relief by agreement with other countries) to a tax credit under section 86 of the Finance Act 1972 (tax credit for certain recipients of qualifying distributions) in respect of qualifying distributions made to it by companies which are resident in the United Kingdom which is equal to one half of the tax credit to which an individual resident in the United Kingdom would be entitled in respect of such distributions. (2) Schedule 13 to this Act has effect to supplement the provisions of this section. (3) Notwithstanding anything to the contrary in the arrangements referred to above and subject to paragraph 2 of the said Schedule, a company to which this section applies shall not be entitled to claim under subsection (4) of the said section 86 to have the tax credit referred to in subsection (1) above set against the income tax chargeable on its income for the year of assessment in which the distribution is made or, where the credit exceeds that income tax, to have the excess paid to it. (4) A company shall be treated as having a qualifying presence in a unitary state if it is a member of a group and, in any period for which members of the group make up their accounts ending after the relevant date, 7½ per cent or more in value of the property, payroll or sales of such members situated in, attributable to or derived from the territory outside the United Kingdom, of which that state is a province, state or other part, are situated in, attributable to or derived from that state. (5) For the purposes of subsection (4) above— (a) 7½ per cent or more in value of such property, payroll or sales as are referred to in that subsection shall be treated as being situated in, attributable to or derived from the state there referred to, unless, on making any claim under subsection (4) of the said section 86, the claimant proves otherwise to the satisfaction of the Board, and (b) the value of the property, payroll or sales of a company shall be taken to be the value as shown in its accounts for the period in question and for this purpose the value of any property consisting of an interest in another member of the group or of any sales made to another such member shall be disregarded. (6) In this section “the relevant date” means the date on which this section comes into force or, if earlier, the earliest date on which a distribution could have been made in relation to which the provisions of this section are applied by an order made under this section. (7) This section shall come into force on such date as the Treasury may by order made by statutory instrument appoint and the Treasury may in addition by order made by statutory instrument— (a) prescribe that the provisions of this section shall apply in relation to distributions made on or after a date before that on which the order bringing them into force is made, being a date not earlier than 1st April 1985, (b) prescribe those provinces, states or other parts of a territory outside the United Kingdom which are to be treated as unitary states for the purposes of this section,and (c) prescribe that for subsections (4) and (5) of this section (or for those subsections as they have effect at any time) there shall be substituted either the following provisions— (4) A company shall be treated as having a qualifying presence in a unitary state if it is subject to tax in such a state for any period ending after the relevant date for which that state charges tax. (5) For the purposes of subsection (4) above a company shall be regarded as subject to tax in a unitary state if it is liable there to a tax charged on its income or profits by whatever name called and shall be treated as so charged unless it proves otherwise to the satisfaction of the Board or the following provisions— (4) A company shall be treated as having a qualifying presence in a unitary state if it has its principal place of business in such a state at any time after the relevant date. (5) For the purposes of subsection (4) above— (a) a company shall be treated as having its principal place of business in a unitary state unless it proves otherwise to the satisfaction of the Board, and (b) the principal place of business of a company shall include both the place where the central management and control of the company is exercised and the place where the immediate day-to-day management of the company as a whole is exercised. (8) No order shall be made under this section unless a draft of it has been laid before and approved by a resolution of the Commons House of Parliament.

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81 Renounceable letters of allotment etc.

(1) Subsection (2) below applies where there is an arrangement whereby— (a) rights under an instrument are renounced in favour of a person (A), (b) the rights are rights to shares in a company (company B), and (c) A, or a person connected with A, or A and such a person together, has or have control of company B or will have such control in consequence of the arrangement. (2) The instrument shall not be exempt by virtue of paragraph 24(d) of Schedule 13 to the Finance Act 1999 (renounceable letters of allotment, etc.) from stamp duty under or by reference to Part I of that Schedule (conveyance or transfer on sale). (3) References in this section to shares in company B include references to its loan capital to which section 79(4) of the Finance Act 1986 does not apply by virtue of section 79(5) or (6)(convertible loan capital and excessive return capital). (4) In this section “ shares” includes stock. (5) For the purposes of this section a person has control of company B if he has power to control company B's affairs by virtue of holding shares in, or possessing voting power in relation to, company B or any other body corporate. (6) For the purposes of this section one person is connected with another if he would be so connected for the purposes of the Taxation of Chargeable Gains Act 1992. (7) This section applies to instruments if rights are renounced under them on or after 1st August 1985, except where the arrangement concerned includes an offer for the rights and on or before 27th June 1985 the offer became unconditional as to acceptances.

82 Gifts inter vivos.

(1) The stamp duty chargeable by virtue of section 74 of the Finance (190910) Act 1910 (gifts inter vivos) is abolished. (2) In section 58(7) of the Stamp Act 1891 (valuation by reference to value for purposes of section 74 of 1910 Act) for the words from “the value” to the end there shall be substituted “the value at any time of any property, that value shall be taken to be the price which the property might reasonably be expected to fetch on a sale at that time in the open market.” (3) In section 90(5) of the Finance Act 1965 (which relates to valuation for the purposes of subsection (1) of that section and of section 74 of the 1910 Act) for “either of those provisions” there shall be substituted “that subsection”; and in section 4(5) of the Finance Act (Northern Ireland) 1965 (which makes similar provision) for “either of those provisions” there shall be substituted “that subsection”. (4) In section 15(1) of the Finance (No. 2) Act 1983 (relief from duty under section 74 of the 1910 Act for local constituency associations) for the words from “7 above” to the end there shall be substituted “7 above, section 57 of the Stamp Act 1891 shall not apply in relation to a conveyance or transfer by which the disposal or, in the case of paragraph (b), either of the disposals referred to in that paragraph is effected.” (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (6) This section applies to— (a) instruments executed on or after 26th March 1985, and (b) instruments executed on or after 19th March 1985 which are stamped on or after 26th March 1985. (7) For the purposes of section 14(4) of the Stamp Act 1891 (instruments not to be given in evidence etc. unless stamped in accordance with the law in force at the time of first execution), the law in force at the time of execution of an instrument falling within subsection (6)(b) above shall be deemed to be that as varied in accordance with this section. (8) The preceeding provisions of this section shall be deemed to have come into operation on 26th March 1985. (9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

83 Part III Transfers in connection with divorce, dissolution of civil partnership, etc.

(1) Stamp duty under Part I of Schedule 13 to the Finance Act 1999 (conveyance or transfer on sale) shall not be chargeable on an instrument by which property is conveyed or transferred from one party to a marriage to the other if the instrument— (a) is executed in pursuance of an order of a court made on granting in respect of the parties of an order or decree for their divorce, the annulment of the marriage or their judicial separation, or (b) is executed in pursuance of an order of a court which is made in connection with the dissolution or annulment of the marriage or the parties’ judicial separation and which is made at any time after the granting of such an order or decree for divorce, annulment or judicial separation as is mentioned in paragraph (a), or (c) is executed at any time in pursuance of an agreement of the parties made in contemplation of or otherwise in connection with the dissolution or annulment of the marriageor their judicial separation.. (1A) Stamp duty under Part 1 of Schedule 13 to the Finance Act 1999 shall not be chargeable on an instrument by which property is conveyed or transferred from one party to a civil partnership to the other if the instrument — (a) is executed in pursuance of an order of a court made on granting in respect of the parties an order or decree for the dissolution or annulment of the civil partnership or their judicial separation; (b) is executed in pursuance of an order of a court which is made in connection with the dissolution or annulment of the civil partnership or the parties' judicial separation and which is made at any time after the granting of such an order or decree for dissolution, annulment or judicial separation as mentioned in paragraph (a); (c) is executed in pursuance of an order of a court which is made at any time under any provision of Schedule 5 to the Civil Partnership Act 2004 that corresponds to section 22A, 23A or 24A of the Matrimonial Causes Act 1973; or (d) is executed at any time in pursuance of an agreement of the parties made in contemplation of or otherwise in connection with the dissolution or annulment of the civil partnership, their judicial separation or the making of a separation order in respect of them. (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3) This section applies to instruments executed on or after 26th March 1985 and shall be deemed to have come into operation on that date.

84 Death: varying dispositions, and appropriations.

(1) Where, within the period of two years after a person’s death, any of the dispositions (whether effected by will, under the law relating to intestacy or otherwise) of the property of which he was competent to dispose are varied by an instrument executed by the persons or any of the persons who benefit or would benefit under the dispositions, stamp duty under Part I of Schedule 13 to the Finance Act 1999 (conveyance or transfer on sale) shall not be chargeable on the instrument. (2) Subsection (1) above does not apply where the variation is made for any consideration in money or money’s worth other than consideration consisting of the making of a variation in respect of another of the dispositions. (3) Subsection (1) above applies whether or not the administration of the estate is complete or the property has been distributed in accordance with the original dispositions. (4) Where property is appropriated by a personal representative in or towards satisfaction of a general legacy of money, stamp duty under the heading mentioned in subsection (1) above shall not be chargeable on an instrument giving effect to the appropriation. (5) Where on an intestacy property is appropriated by a personal representative in or towards satisfaction of any interest of a surviving spouse or civil partner in the intestate’s estate, stamp duty under the heading mentioned in subsection (1) above shall not be chargeable on an instrument giving effect to the appropriation. (6) The reference in subsection (5) above to an interest in the intestate’s estate— (a) includes a reference to the capital value of a life interest which the surviving spouse or civil partner has under the Intestates’ Estates Act 1952 elected to have redeemed, and (b) in Scotland, includes a reference to prior rights (within the meaning of the Succession (Scotland) Act 1964) but, without prejudice to subsection (7) below, not to such rights as are mentioned in that subsection. (7) Where in Scotland, on an intestacy or otherwise, property is appropriated by a personal representative in or towards satisfaction of the right of a husband to jus relicti, of a wife to relictae, of issue to legitim or rights under section 131 of the Civil Partnership Act 2004, or of a civil partner to rights under section 131 of that Act, stamp duty under the heading mentioned in subsection (1) above shall not be chargeable on an instrument giving effect to the appropriation. (8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (10) Subject to subsection (11) below, this section applies to instruments executed on or after 26th March 1985 and shall be deemed to have come into operation on that date. (11) Subsections (5) to (7) above ... apply to instruments executed on or after 1st August 1985.

85 Repeal of certain fixed duties.

(1) The headings which are specified in Schedule 1 to the Stamp Act 1891 and are mentioned in Schedule 24 to this Act shall be omitted. (2) In section 7 of the Finance Act 1907 (stamping of hirepurchase agreements) for the words from “shall only be charged” to the end there shall be substituted “shall not be charged with any stamp duty.” (3) This section and that Schedule apply to— (a) instruments executed on or after 26th March 1985, and (b) instruments executed on or after 19th March 1985 which are not stamped before 26th March 1985. (4) For the purposes of section 14(4) of the Stamp Act 1891 (instruments not to be given in evidence etc. unless stamped in accordance with the law in force at the time of first execution), the law in force at the time of execution of an instrument falling within subsection (3) (b) above shall be deemed to be that as varied in accordance with this section. (5) This section and that Schedule shall be deemed to have come into operation on 26th March 1985.

86 Abolition of duty on contract notes.

(1) Subsections (1) and (2) of section 77 of the Finance (1909-10) Act 1910 (duty on contract notes) shall cease to have effect. (2) This section applies to contract notes made and executed on or after 26th March 1985, and shall be deemed to have come into operation on that date.

87 Certificates.

(1) The Commissioners may make regulations providing that an instrument which is of a kind specified in them— (a) shall be certified to be an instrument of that kind, and (b) shall not be treated as duly stamped if it is not so certified. (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3) Certification under this section shall be by such method as the regulations may specify, and in particular they may provide for a certificate to be borne by or attached to or otherwise associated with an instrument in such manner as they may specify. (4) A certificate under this section shall be in such form and signed by such person as the regulations may specify. (5) Regulations under this section may contain such incidental or consequential provisions as the Commissioners ... think fit. (6) Regulations under this section may make different provision for different cases or descriptions of case. (7) The power to make regulations under this section shall be exercisable by statutory instrument subject to annulment in pursuance of a resolution of the House of Commons.

88 Exchange rates.

Section 12 of the Finance Act 1899 (fixed exchange rate for foreign currency) shall not apply to instruments executed on or after 1st August 1985, and section 6 of the Stamp Act 1891 (exchange rate at date of instrument) shall apply to instruments to which section 12 of the 1899 Act would apply if this Act had not been passed.

89 Exemption from section 28 of Finance Act 1931.

(1) Section 28 of the Finance Act 1931 (production to Commissioners of instruments transferring land and furnishing of particulars) shall not apply in relation to any instrument (an “exempt instrument”) which falls within any class prescribed for the purposes of this section by regulations made by the Commissioners. (2) Regulations under this section may— (a) provide that the particulars mentioned in Schedule 2 to the 1931 Act shall be furnished to the Commissioners, in accordance with the requirements of the regulations, in respect of exempt instruments or such descriptions of exempt instruments as may be prescribed by the regulations; (b) make different provision in relation to different cases or kinds of case and in respect of different parts of Great Britain. (3) Any person who fails to comply with any requirement imposed by regulations made under this section shall be liable on summary conviction to a fine not exceeding level 3 on the standard scale . . .. (4) The power to make regulations under this section shall be exercisable by statutory instrument; and a statutory instrument containing regulations under this section shall be subject to annulment in pursuance of a resolution of the House of Commons. (5) Section 35(x) of the 1931 Act (which gives power by regulations to exempt certain instruments in Scotland where particulars are obtained through the General Register of Sasines and which is superseded by the power given by this section) shall cease to have effect. (6) Regulations made under section 35(x) shall have effect after the commencement of this section as if they were made under this section and as if they imposed on the Keeper of the Registers of Scotland the duty mentioned in section 35(x).

90 Limitations on relief for exploration and appraisal expenditure.

(1) With respect to expenditure incurred on or after 19th March 1985, section 5A of the Oil Taxation Act 1975 (allowance of exploration and appraisal expenditure) shall be amended in accordance with subsections (3) to (5) below. (2) with respect to expenditure incurred on or after 1st April 1986, in subsection (2) of the said section 5A (the purposes for which expenditure is to be incurred to quality for relief), for the words “the United Kingdom, the territorial sea thereof”, in each place where they occur, there shall be substituted “the territorial sea of the United Kingdom”. (3) After subsection (2) there shall be inserted the following subsection— (2A) Any reference in subsection (2) above to a designated area does not include a sector which, by virtue of subsection (3)(b) of section 107 of the Finance Act 1980 (transmedian fields), is deemed to be a designated area (4) In subsection (5) (which modifies the application of certain provisions of section 5 of the Oil Taxation Act 1975 in relation to section 5A) in paragraph (c) (which excludes certain receipts from being taken into account under subsection (6) of section 5 of that Act and thereby prevents the expenditure which qualifies for relief being reduced on account of those receipts) for the words from “does not include” onwards there shall be substituted— (i) includes a reference to a sum received, or treated by virtue of subsection (5A) below as received, from the disposal of oil won in the course of operations carried out for any of the purposes in paragraphs (a) to (c) of subsection (2) of this section; but (ii) does not include a reference to a sum received for the assignment of any of the rights conferred by a licence or of any interest in a licensed area (5) After subsection (5) there shall be inserted the following subsections— (5A) Subsection (5B) below applies in any case where— (a) oil which is won as mentioned in paragraph (c)(i) of subsection (5) above is either disposed of otherwise than in sales at arm’s length or appropriated to refining or to any use except for production purposes of an oil field, and (b) if that oil had been disposed of in a sale at arm’s length, then, by virtue of section 5(6) of this Act as applied by subsection (5) above, certain expenditure would have been reduced by reference to the receipt of a sum from that disposal. (5B) Where this subsection applies, the oil concerned shall be treated for the purposes of subsection (5)(c)(i) above and section 5(6) of this Act as having been disposed of for a sum equal to its market value at the material time in the calendar month in which it was disposed of or appropriated as mentioned in subsection (5A)(a) above and, accordingly, for those purposes— (a) a sum equal to that market value shall be treated as having been received from that disposal; and (b) no account shall be taken of any sum actually received from the disposal of any of that oil. (5C) In the application of Schedule 3 to this Act for the purpose of ascertaining the market value of oil as mentioned in subsection (5B) above,— (a) in paragraph 2, in paragraph (c) of sub-paragraph (2) for the words from the beginning to “paragraph in question” there shall be substituted “the contract is for the sale of the whole quantity of oil whose market value falls to be ascertained for the purposes of section 5A(5B) of this Act”; (b) sub-paragraph (3) and (4) of paragraph 2 shall be omitted; and (c) any reference in paragraphs 2 and 2A to oil being relevantly appropriated shall be construed as a reference to its being appropriated as mentioned in subsection (5A)(a) above

91 Chargeable periods relevant to limit on tax payable and expenditure supplement.

(1) In subsection (1A) of section 9 of the Oil Taxation Act 1975 (the chargeable periods in respect of which the tax payable is limited under that section) in paragraph (b) (chargeable periods after the net profit period), for the words “included in paragraph (a) above” there shall be substituted “which are included in paragraph (a) above and in which the amount of oil won and saved from the field exceeds 1,000 metric tonnes”; and at the end of that subsection there shall be added the words “and for the purposes of paragraph (b) above 1,100 cubic metres of gas at a temperature of 15 degrees centigrade and pressure of one atmosphere shall be counted as equivalent to one metric tonne”. (2) The amendments made by subsection (1) above has effect with respect to any oil field in respect of which the first chargeable period ends after 30th June 1985. (3) In section 111 of the Finance Act 1981 (restriction of expenditure supplement by reference to net profit period), in subsection (1) for the words from “in which” onwards there shall be substituted which is the earliest chargeable period ending after a development decision has been made for the field in which— (a) the amount of oil won and saved from the field exceeds 1,000 metric tonnes (counting 1,100 cubic metres of gas at a temperature of 15 degrees centigrade and pressure of one atmosphere as equivalent to one metric tonne); and (b) a net profit from the field accrues to the participator; and subsection (7) of section 5A of the principal Act (time when development decision is made) shall apply for the purposes of this subsection as it applies for the purposes of subsection (1)(c) of that section. (4) The amendment made by subsection (3) above has effect with respect to chargeable periods ending after 30th June 1985.

92 Qualifying asset; exclusion of land and certain buildings etc.

(1) In subsection (1) of section 8 of the Oil Taxation Act 1983 (meaning of “qualifying asset”) after the word “means” there shall be inserted “subject to subsection (1A) below”. (2) After subsection (1) of that section there shall be inserted the following subsection— (1A) Notwithstanding anything in subsection (1) above, the following assets are not qualifying assets for the purposes of this Act, namely,— (a) land or an interest in land; and (b) a building or structure which is situated on land and which does not fall within any of sub-paragraphs (i) to (iv) of paragraph (c) of subsection (4) of section 3 of the principal Act. (3) In section 15(3) of the Oil Taxation Act 1983 (interpretation) in the definition of “qualifying asset” for the words “section 8(1)” there shall be substituted “section 8”. (4) In paragraph 4 of Schedule 2 to that Act (cases where all the oil is exempt gas) at the end of sub-paragraph (2) (modifications of section 8(1)) there shall be inserted the following subparagraph— (2A) In any case where this paragraph applies, paragraph (b) of subsection (1A) of section 8 of this Act shall have effect in relation to the participator as if— (a) for the words “does not” there were substituted “would not”; and (b) at the end there were added the words “even if section 10(2) of the principal Act were disregarded” (5) This section has effect for determining whether any consideration which is received or receivable after 19th March 1985 constitutes tariff receipts or disposal receipts within the meaning of the Oil Taxation Act 1983.

93 Abolition of development land tax and tax on development gains.

(1) Development land tax shall not be charged in respect of any disposal taking place on or after 19th March 1985; and for this purpose “disposal” includes a deemed disposal within the meaning of the Development Land Tax Act 1976 (in this section referred to as “the 1976 Act”) and any other event which, but for the repeals effected by Part X of Schedule 27 to this Act, would constitute a disposal of an interest in land for the purposes of that Act. (2) Without prejudice to subsection (1) above, no realised development value, within the meaning of the 1976 Act, shall accrue to any person on or by reason of any event occurring on or after 19th March 1985. (3) In any case where, immediately before 19th March 1985, liability for development land tax stands for the time being deferred as mentioned in section 27 of the 1976 Act, that liability shall be extinguished with effect from that date. (4) In any case where— (a) by virtue of paragraph 52 of Schedule 8 to the 1976 Act (postponement of tax on incorporation disposal) an amount of tax is not payable until a time determined in accordance with sub-paragraphs (4) to (6) of that paragraph, and (b) that amount of tax has not become payable before 19th March 1985, that amount of tax shall be remitted with effect from that date. (5) Part I of Schedule 25 to this Act shall have effect for supplementing the preceding provisions of this section. (6) No part of a chargeable gain which accrues to any person on the disposal of an interest in land on or after 19th March 1985 shall be a development gain by virtue of Chapter 1 of Part III of the Finance Act 1974; and for this purpose “disposal of an interest in land” means any event which, but for the repeals effected by Part X of Schedule 27 to this Act, would be (or be deemed to be) a disposal of an interest in land to which section 38 of that Act would apply. (7) In consequence of the preceding provisions of this section and of the repeals effected by Part X of Schedule 27 to this Act, the enactments specified in Part II of Schedule 25 to this Act shall have effect subject to the amendments in that Part; but those amendments do not affect the operation of the enactments concerned in relation to— (a) a disposal, as defined in subsection (1) above, taking place before 19th March 1985; or (b) a disposal of an interest in land, as defined in subsection (6) above, taking place before that date.

94 Capital transfer tax: conditional exemption.

(1) Schedule 26 to this Act (which contains amendments about conditional exemption) shall have effect. (2) Those amendments have effect in relation to events on or after 19th March 1985.

95 The national heritage: transfer of Treasury functions to Board.

(1) The functions of the Treasury under— (a) Part II, and section 76 of, and Schedules 3 to 5 to, the Capital Transfer Tax Act 1984 (exempt transfers); (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (c) the enactments re-enacted by those provisions; and the corresponding functions of the Treasury under any earlier enactments relating to capital transfer tax or estate duty, are hereby transferred to the Commissioners of Inland Revenue (“the Board”). (2) This section shall not affect the validity of anything done by or in relation to the Treasury before the passing of this Act ; and anything which at that date is in the process of being done by or in relation to the Treasury may, if it relates to functions transferred by this section to the Board, be continued by or in relation to the Board. (3) Any authorisation, designation, direction, approval, determination, or other thing given, made or done by the Treasury in connection with functions transferred by this section shall have effect as if given, made or done by the Board in so far as that is required for continuing its effect after the passing of this Act. (4) Any enactment passed or instrument or other document made before the coming into operation of this section shall have effect, so far as may be necessary, for the purpose or in consequence of the transfer of functions affected by this section as if any reference to the Treasury were or included a reference to the Board.

96 European Union and Investment Bank: exemptions.

(1) In section 126 of the Finance Act 1984 (tax exemptions in relation to designated international organisations) the following shall be inserted after subsection (3)— (4) The Treasury may, by order made by statutory instrument, designate any of the European Union or the European Investment Bank for the purposes of this section, and references in subsections (2) and (3) above to an organisation designated for the purposes of this section include references to a body so designated by virtue of this sub-section. (5) Subsection (3) above, as it applies by virtue of subsection (4) above, shall be read as if the words “under the heading “Bearer Instrument” in Schedule 1 to the Stamp Act 1891” were omitted. (2) An order made by virtue of subsection (4) of section 126 of the Finance Act 1984 may revoke or vary the European Communities (Loan Stock) (Stamp Duties) Order 1972 (which provides for exemption from stamp duty in respect of issues and transfers of loan stock of the bodies referred to in that subsection, other than the Economic Community).

97 Extension of Provisional Collection of Taxes Act 1968 to reduced and composite rates.

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98 Short title interpretation, construction and repeals.

(1) This Act may be cited as the Finance Act 1985. (2) In this Act “the Taxes Act” means the Income and Corporation Taxes Act [1988 ]. (3) Part II of this Act, so far as it relates to income tax, shall be construed as one with the Income Tax Acts, sp far as it relates to Corporation Tax Act and, so far as it relates to capital gains tax, shall be construed as one with the Capital Gains Tax Act 1979. (4) Part III of this Act shall be construed as one with the Stamp Act 1891. (5) Part IV of this Act shall be construed as one with Part I of the Oil Taxation Act 1975. (6) The enactments specified in Schedule 27 to this Act are hereby repealed to the extent specified in the third column of that Schedule, but subject to any provision at the end of any Part of that Schedule.

SCHEDULE 1 Table of Rates of Duty on Wine and Made-Wine

Description of wine or made-wine | Rates of duty per hectolitre £ Wine or made-wine of a strength of less than 15 per cent. and not being sparkling | 98.00 Sparkling wine or sparkling made-wine of a strength of less than 15 per cent. | 161.80 Wine or made-wine of a strength of not less than 15 per cent. but not exceeding 18 per cent. | 169.00 Wine or made-wine of a strength exceeding 18 per cent. but not exceeding 22 per cent. | 194.90 Wine or made-wine of a strength exceeding 22 per cent. | 194.90 plus £15.77 for every 1 per cent. or part of 1 per cent. in excess of 22 per cent.

SCHEDULE 2 Vehicles Excise Duty

Section 4. Part I Provisions Substituted in Part II of Schedules 1 to 5 to the Vehicles (Excise) Act 1971 and the Vehicles (Excise) Act (Northern Ireland) 1972 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3, 4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Part II Amendment of Part I of Schedule 4 to the Vehicles (Excise) Act 1971 and the Vehicles (Excise) Act (Northern Ireland) 1972 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

SCHEDULE 3 Amendments of Alcoholic Liquor Duties Act 1979

Manufacture of spirits during the recovery of beer 1 In section 13 (regulations and directions relating to manufacture of spirits) after subsection (2) there shall be inserted the following subsection— (2A) If the Commissioners so direct, spirits manufactured by a process to which a direction under subsection (2) above applies shall be treated as not being within the charge of duty on spirits under section 5 above. Spirits: attenuation charge 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Determination of beer duty 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Restrictions on adding substances to beer 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

SCHEDULE 4 Hydrocarbon Oil: Mixing Etc.

1 The following shall be substituted for section 20 of the Hydrocarbon Oil Duties Act 1979 (contaminated or accidentally mixed oil)— Contaminated or accidentally mixed oil. 20 (1) This section applies where it is shown to the satisfaction of the Commissioners— (a) that hydrocarbon oil has been delivered for home use, that since it was so delivered it has become contaminated, and that at the time it became contaminated it was oil on which the appropriate duty of excise had been paid, or (b) that hydrocarbon oils of different descriptions have been delivered for home use, that since they were so delivered they have become accidentally mixed with each other, and that at the time of mixing they were oils on which the appropriate duty of excise had been paid. (2) Subject to any conditions which the Commissioners see fit to impose for the protection of the revenue, they may make to such person as they see fit a payment in accordance with subsection (3) below. (3) The payment shall be of an amount appearing to the Commissioners to be equal to the excise duty which would have been payable if— (a) the oil had been delivered for home use (uncontaminated) at the time it became contaminated (where subsection (1)(a) above applies), or (b) the oils had been delivered for home use (unmixed) at the time they became mixed (where subsection (1)(b) above applies). 2 The following shall be inserted after section 20 of that Act (as substituted by paragraph 1 above)— Mixing: adjustment of duty Mixing: adjustment of duty. 20A (1) In this section “new oil” means hydrocarbon oil which after it has been charged under section 6 above as oil of one description becomes oil of a different description as a result of approved mixing in a pipeline with other hydrocarbon oil which has been so charged; and “approved mixing” has the meaning given by subsection (5) below. (2) Where the Commissioners are of opinion that, if the new oil had fallen to be charged under section 6 above as oil of the different description, the amount of duty would have been greater or less than that actually charged, then— (a) if in their opinion the amount would have been greater, they may charge under this section a duty of excise on the oil of an amount equal to the difference, and (b) if in their opinion the amount would have been less, they may make under this section an allowance equal to the difference. (3) In determining the amount of duty which would have been charged if the new oil had fallen to be charged under section 6 above as oil of the different description, the rates to be applied are those effective at the time when in the Commissioners’ opinion the oil became oil of the different description. (4) Where the Commissioners have made a charge or allowance under subsection (2) above, then, for the purposes of this Act, any relief or rebate which was permitted or allowed at the time of the charge under section 6 above shall be disregarded. (5) The Commissioners may make regulations— (a) enabling them to grant to persons (whether individually or of a specified class) permission to mix in a pipeline different descriptions of hydrocarbon oil (whether generally or in the case of specified descriptions only) and to withdraw permission for reasonable cause; (b) enabling permission to be granted subject to conditions and conditions to be varied for reasonable cause, and in this section “approved mixing” means mixing in accordance with permission under the regulations. (6) The Commissioners may make regulations— (a) for prescribing the method of charging the duty under this section; (b) for determining the form of the allowance under this section (which may be by way of repayment or otherwise) and the time the allowance may be made. (7) Regulations under this section may make different provision for different circumstances. 3 In section 27(3) of that Act (expressions have meanings given by certain other Acts), in the list of expressions defined in the Management Act, after the entry relating to “officer” and “proper” there shall be inserted “pipeline”. 4 In paragraph 11 of Schedule 3 to that Act (securing and collecting duty on oil produced in the United Kingdom) the words “produced in the United Kingdom” shall cease to have effect.

SCHEDULE 5 Gaming Machine Licence Duty

Section 8. Part I Amendments of Betting and Gaming Duties Act 1981 1 (1) In section 21 (gaming machine licences) in subsection (1) for the words “Great Britain” there shall be substituted “the United Kingdom”. (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2) For subsections (2) to (4) of that section there shall be substituted the following subsections— (2) For the purposes of this Act a gaming machine is a smallprize machine if the value or aggregate value of the benefits in money or money’s worth, which any player who is successful in a single game played by means of the machine may receive, cannot exceed £3. (3) The Commissioners may by order substitute for the sum for the time being mentioned in subsection (2) above such higher sum as may be specified in the order, with effect from a date so specified. 4 (1) In section 23 (amount of duty) in paragraph (a) of subsection (1) for the words from “where” to “Acts” there shall be substituted “which authorise the provision only of smallprize machines”. (2) In Tables A and B in subsection (1) of that section the words “Premises with local authority approval” and “Premises without local authority approval” shall be omitted. 5 In section 24(5) (provision of gaming machine in contravention of restrictions) for the words “a penalty of £500” there shall be substituted “a penalty of level 5 on the standard scale.” 6 In section 26(2) (interpretation of provisions relating to gaming machine licence duty), for the entry relating to Great Britain there shall be substituted the following entries— ”United Kingdom’ includes the territorial waters of the United Kingdom; “small prize machine” has the meaning given by section 22(2) above. 7 In section 33(1) (general interpretation provisions) at the end of the definition of “the prescribed sum” there shall be inserted the words and (c) if the offence was committed in Northern Ireland, the prescribed sum within the meaning of Article 4 of the Fines and Penalties (Northern Ireland) Order 1984. 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Part II Extension to Northern Ireland of Certain Subordinate Legislation 10 Any orders or regulations made under any provision of Schedule 4 to the Betting and Gaming Duties Act 1981, in so far as they have effect immediately before 1st August 1985, shall have effect on and after that day in relation to Northern Ireland as if— (a) that Act extended to Northern Ireland at the time when the orders or regulations were made, and (b) the orders or regulations were made in relation to Northern Ireland as well as Great Britain.

SCHEDULE 6

SCHEDULE 7

1 (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2) In subparagraph (6) (assessment on failure to prove availability or loss or destruction of goods) after the words “supplied by him” there shall be inserted “or have been exported from the United Kingdom otherwise than by way of supply”. (3) After subparagraph (6) of that paragraph there shall be inserted the following subparagraph— (6A) In any case where,— (a) as a result of a person’s failure to make a return for a prescribed accounting period, the Commissioners have made an assessment under subparagraph (1) above for that period, and (b) the tax assessed has been paid but no proper return has been made for the period to which the assessment related, and (c) as a result of a failure to make a return for a later prescribed accounting period, being a failure by the person referred to in paragraph (a) above or a person acting in a representative capacity in relation to him, as mentioned in subparagraph (4) above, the Commissioners find it necessary to make another assessment under subparagraph (1) above, then, if the Commissioners think fit, having regard to the failure referred to in paragraph (a) above, they may specify in the assessment referred to in paragraph (c) above an amount of tax greater than that which they would otherwise have considered to be appropriate. 2 In paragraph 7(2) (records to be preserved for a period not exceeding three years) for “three” there shall be substituted “six”. 3 (1) In paragraph 8 (furnishing of information and production of documents) for subparagraphs (2) and (3) there shall be substituted the following subparagraphs— (2) Every person who is concerned (in whatever capacity) in the supply of goods or services in the course or furtherance of a business or to whom such a supply is made and every person who is concerned (in whatever capacity) in the importation of goods in the course or furtherance of a business shall— (a) furnish to the Commissioners, within such time and in such form as they may reasonably require, such information relating to the goods or services or to the supply or importation as the Commissioners may reasonably specify; and (b) upon demand made by an authorised person, produce or cause to be produced for inspection by that person,— (i) at the principal place of business of the person upon whom the demand is made or at such other place as the authorised person may reasonably require, and (ii) at such time as the authorised person may reasonably require, any documents relating to the goods or services or to the supply or importation. (3) Where, by virtue of subparagraph (2) above, an authorised person has power to require the production of any documents from any such person as is referred to in that subparagraph, he shall have the like power to require production of the documents concerned from any other person who appears to the authorised person to be in possession of them; but where any such other person claims a lien on any document produced by him, the production shall be without prejudice to the lien. (2) In subparagraph (4) of that paragraph for the words from “goods” to “services” there shall be substituted “goods or services or the importation of goods”. (3) After subparagraph (4) there shall be inserted the following subparagraphs— (4A) An authorised person may take copies of, or make extracts from, any document produced under subparagraph (2) or subparagraph (3) above. (4B) If it appears to him to be necessary to do so, an authorised person may, at a reasonable time and for a reasonable period, remove any document produced under subparagraph (2) or subparagraph (3) above and shall, on request, provide a receipt for any document so removed; and where a lien is claimed on a document produced under subparagraph (3) above, the removal of the document under this subparagraph shall not be regarded as breaking the lien. (4C) Where a document removed by an authorised person under subparagraph (4B) above is reasonably required for the proper conduct of a business he shall, as soon as practicable, provide a copy of the document, free of charge, to the person by whom it was produced or caused to be produced. 4 After paragraph 9 there shall be inserted the following paragraph Power to require opening of gaming machines 9A An authorised person may at any reasonable time require a person making such a supply as is referred to in subsection (1) of section 13 of this Act or any person acting on his behalf— (a) to open any gaming machine, within the meaning of that section; and (b) to carry out any other operation which may be necessary to enable the authorised person to ascertain the amount which, in accordance with subsection (2) of that section, is to be taken as the value of supplies made in the circumstances mentioned in subsection (1) of that section in any period. 5 (1) In paragraph 10 (entry and search of premises and persons) in subparagraph (3) (search warrants)— (a) for the words “an offence in connection with the tax” there shall be substituted “a fraud offence which appears to be of a serious nature”; (b) after the word “authorising” there shall be inserted “subject to subparagraphs (5) and (6) below”; (c) in paragraph (b) for the words “such an offence” there shall substituted “a fraud offence which appears to him to be of a serious nature”; and (d) in paragraph (c) the words “to have committed or to be about to commit such an offence or” shall be omitted. (2) At the end of the paragraph there shall be added the following subparagraphs— (4) In subparagraph (3) above ”a fraud offence’ means an offence under any provision of subsections (1) to (3) of section 39 of this Act. (5) The powers conferred by a warrant under this paragraph shall not be exercisable— (a) by more than such number of authorised persons as may be specified in the warrant; nor (b) outside such times of day as may be so specified; nor (c) if the warrant so provides, otherwise than in the presence of a constable in uniform. (6) An authorised person seeking to exercise the powers conferred by a warrant under this paragraph or, if there is more than one such authorised person, that one of them who is in charge of the search shall provide a copy of the warrant endorsed with his name as follows:— (a) if the occupier of the premises concerned is present at the time the search is to begin, the copy shall be supplied to the occupier; (b) if at that time the occupier is not present but a person who appears to the authorised person to be in charge of the premises is present, the copy shall be supplied to that person; and (c) if neither paragraph (a) nor paragraph (b) above applies, the copy shall be left in a prominent place on the premises. 6 After paragraph 10 there shall be inserted the following paragraphs— Order for access to recorded information, etc. 10A (1) Where, on an application by an authorised person, a justice of the peace or, in Scotland, a justice (within the meaning of section 462 of the Criminal Procedure (Scotland) Act 1975) is satisfied that there are reasonable grounds for believing— (a) that an offence in connection with the tax is being, has been or is about to be committed, and (b) that any recorded information (including any document of any nature whatsoever) which may be required as evidence for the purpose of any proceedings in respect of such an offence is in the possession of any person, he may make an order under this paragraph. (2) An order under this paragraph is an order that the person who appears to the justice to be in possession of the recorded information to which the application relates shall— (a) give an authorised person access to it, and (b) permit an authorised person to remove and take away any of it which he reasonably considers necessary, not later than the end of the period of seven days beginning on the date of the order or the end of such longer period as the order may specify. (3) The reference in subparagraph (2)(a) above to giving an authorised person access to the recorded information to which the application relates includes a reference to permitting the authorised person to take copies of it or to make extracts from it. (4) Where the recorded information consists of information contained in a computer, an order under this paragraph shall have effect as an order to produce the information in a form in which it is visible and legible and, if the authorised person wishes to remove it, in a form in which it can be removed. (5) This paragraph is without prejudice to paragraphs 8 and 10 above. Procedure where documents etc. are removed 10B (1) An authorised person who removes anything in the exercise of a power conferred by or under paragraph 10 or 10A above shall, if so requested by a person showing himself— (a) to be the occupier of premises from which it was removed, or (b) to have had custody or control of it immediately before the removal, provide that person with a record of what he removed. (2) The authorised person shall provide the record within a reasonable time from the making of the request for it. (3) Subject to subparagraph (7) below, if a request for permission to be granted access to anything which— (a) has been removed by an authorised person, and (b) is retained by the Commissioners for the purpose of investigating an offence, is made to the officer in overall charge of the investigation by a person who had custody or control of the thing immediately before it was so removed or by someone acting on behalf of such a person, the officer shall allow the person who made the request access to it under the supervision of an authorised person. (4) Subject to subparagraph (7) below, if a request for a photograph or copy of any such thing is made to the officer in overall charge of the investigation by a person who had custody or control of the thing immediately before it was so removed, or by someone acting on behalf of such a person, the officer shall— (a) allow the person who made the request access to it under the supervision of an authorised person for the purpose of photographing it or copying it; or (b) photograph or copy it, or cause it to be photographed or copied. (5) Where anything is photographed or copied under subparagraph (4)(b) above the photograph or copy shall be supplied to the person who made the request. (6) The photograph or copy shall be supplied within a reasonable time from the making of the request. (7) There is no duty under this paragraph to grant access to, or to supply a photograph or copy of, anything if the officer in overall charge of the investigation for the purposes of which it was removed has reasonable grounds for believing that to do so would prejudice— (a) that investigation; (b) the investigation of an offence other than the offence for the purposes of the investigation of which the thing was removed; or (c) any criminal proceedings which may be brought as a result of— (i) the investigation of which he is in charge, or (ii) any such investigation as is mentioned in paragraph (b) above. (8) Any reference in this paragraph to the officer in overall charge of the investigation is a reference to the person whose name and address are endorsed on the warrant or order concerned as being the officer so in charge. 10C (1) Where, on an application made as mentioned in subparagraph (2) below, the appropriate judicial authority is satisfied that a person has failed to comply with a requirement imposed by paragraph 10B above, the authority may order that person to comply with the requirement within such time and in such manner as may be specified in the order. (2) An application under subparagraph (1) above shall be made,— (a) in the case of a failure to comply with any of the requirements imposed by subparagraphs (1) and (2) of paragraph 10B above, by the occupier of the premises from which the thing in question was removed or by the person who had custody or control of it immediately before it was so removed, and (b) in any other case, by the person who had such custody or control. (3) In this paragraph “the appropriate judicial authority” means— (a) in England and Wales, a magistrates’ court; (b) in Scotland, the sheriff; and (c) in Northern Ireland, a court of summary jurisdiction, as defined in Article 2(2)(a) of the Magistrates’ Courts (Northern Ireland) Order 1981. (4) In England and Wales and Northern Ireland, an application for an order under this paragraph shall be made by way of complaint; and sections 21 and 42(2) of the Interpretation Act (Northern Ireland) 1954 shall apply as if any reference in those provisions to any enactment included a reference to this paragraph.

SCHEDULE 8

Interpretation 1 In this Schedule “Schedule 8” means Schedule 8 to the principal Act (constitution and procedure of value added tax tribunals). The President 2 (1) In paragraph 2 of the Schedule 8, in subparagraph (2) after the words “Lord Chancellor”, there shall be inserted “after consultation with the Lord Advocate”. (2) After that subparagraph there shall be inserted the following subparagraph— (3) Subject to paragraph 3 below, the appointment of the President shall be for such term and subject to such conditions as may be determined by the Lord Chancellor, after consultation with the Lord Advocate, and a person who ceases to hold the office of President shall be eligible for reappointment thereto. 3 (1) In paragraph 3 of Schedule 8, in subparagraph (1) after the word “office”, in the second place where it occurs, there shall be inserted “(a)” and at the end of the subparagraph there shall be added or (b) if subparagraph (1A) below applies, on the date on which he attains the age of seventyfive . (2) After subparagraph (1) of that paragraph there shall be inserted the following subparagraph— (1A) If the Lord Chancellor, after consultation with the Lord Advocate, considers it desirable in the public interest to do so, he may authorise the President to continue in office after the end of the completed year of service mentioned in subparagraph (1) (a) above. (3) In subparagraph (2) of that paragraph after the word “fit” there shall be inserted “and after consultation with the Lord Advocate”. (4) At the end of subparagraph (3) of that paragraph there shall be added the words “after consultation with the Lord Advocate”. (5) In subparagraph (4) of that paragraph for the words, “the Treasury may” there shall be substituted “the Lord Chancellor may with the approval of the Treasury”. (6) In subparagraph (5) of that paragraph for the words “the Treasury”, where they first occur, there shall be substituted “the Lord Chancellor” and for the words “the Treasury may” there shall be substituted “the Lord Chancellor may with the approval of the Treasury”. Sittings of tribunals 4 In paragraph 4 of Schedule 8— (a) for the words “the President” there shall be substituted “the Lord Chancellor or, in relation to Scotland, the Secretary of State”; (b) the words “with the consent of the Treasury” shall be omitted; and (c) for the word “he” there shall be substituted “the Lord Chancellor or, as the case may be, the Secretary of State”. Membership of tribunals 5 (1) In paragraph 7 of Schedule 8, in subparagraph (3), after the word “made”, when it first occurs, there shall be inserted “by the appropriate authority, that is to say” and in each of paragraphs (a) to (c) the word “by” shall be omitted. (2) After subparagraph (3) of that paragraph there shall be inserted the following subparagraphs— (3A) No person may be appointed to a panel of chairmen of tribunals for England and Wales or Northern Ireland unless he is a barrister or solicitor of not less than seven years’ standing; and no person may be appointed to a panel of chairmen of tribunals for Scotland unless he is an advocate or solicitor of not less than seven years’ standing. (3B) Subject to the following provisions of this paragraph, the appointment of a chairman of value added tax tribunals shall be for such term and subject to such conditions as may be determined by the appropriate authority, and a person who ceases to hold the office of chairman shall be eligible for reappointment thereto. (3C) A chairman of value added tax tribunals may resign his office at any time and shall vacate his office— (a) at the end of the completed year of service in which he attains the age of seventytwo; or (b) if subparagraph (3D) below applies in his case, on the date on which he attains the age of seventyfive. (3D) If the appropriate authority considers it desirable in the public interest to do so, he may authorise a chairman of value added tax tribunals to continue in office after the end of the completed year of service mentioned in subparagraph (3C)(a) above. (3E) The appropriate authority may, if he thinks fit, remove a chairman of value added tax tribunals from office on the ground of incapacity or misbehaviour. (3) In subparagraph (4) of that paragraph for the words “the Treasury may”, in both places where they occur, there shall be substituted “the Lord Chancellor may with the approval of the Treasury”. (4) In subparagraph (5) of that paragraph for the words “the Treasury”, where they first occur, there shall be substituted “the Lord Chancellor” and for the words “the Treasury may” there shall be substituted “the Lord Chancellor may with the approval of the Treasury”. Administration 6 (1) Officers and staff may be appointed under section 27 of the Courts Act 1971 (court staff) for carrying out the administrative work of value added tax tribunals in England and Wales. (2) The Secretary of State may make available such officers and staff as he may consider necessary for carrying out the administrative work of value added tax tribunals in Scotland. [Schedules 9to 13repealed by ICTA 1988 s.844and Sch.31.See 1987edition for these provisions.] [Schedules14to 17repealed by 1990(C) s.164(4)and Sch.2.See 1989edition for these provisions.]