Law

Finance Act 1994

United Kingdom · statute

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In force since 2026-04-01, as the publisher states.

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

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

sha256 a5d0a3297342f2fbffc3e28d623310e2f5fbc3e2c3c5dcab1349b4175d8a89ed

Contents: 333 provisions

Proposed changes to this act

No one has proposed a change to this act yet.

333 provisions

SCHEDULE 14 Distributions of authorised unit trusts

Section 112. 1 Chapter III of Part XII of the Taxes Act 1988 shall be amended in accordance with paragraphs 2 to 5 of this Schedule. The new sections 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Other amendments 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Commencement 7 (1) Subject to sub-paragraph (2) below, this Schedule shall have effect in relation to distribution periods beginning on or after 1st April 1994. (2) Nothing in the amendments made by this Schedule shall be taken to permit— (a) the total amount shown in the distribution accounts for a distribution period of an authorised unit trust, or (b) a part of that total amount, to be shown as available for distribution as foreign income dividends unless the distribution date for that distribution period is 1st July 1994 or a subsequent date.

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SCHEDULE 15 Enterprise investment scheme

Section 137. Amendments of the Taxes Act 1988 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Amendments of the Taxation of Chargeable Gains Act 1992 28 The Taxation of Chargeable Gains Act 1992 shall be amended as follows: 29 In section 150 (business expansion schemes), at the end of subsection (1) there is inserted “ and references in this section to Chapter III of Part VII of the Taxes Act or any provision of that Chapter are to that Chapter or provision as it applies in relation to shares issued before 1st January 1994 ”. 30 After that section there is inserted— Enterprise investment scheme. 150A (1) For the purpose of determining the gain or loss on any disposal of eligible shares by an individual where— (a) an amount of relief is attributable to the shares, and (b) apart from this subsection there would be a loss, the consideration given by him for the shares shall be treated as reduced by the amount of the relief. (2) Subject to subsection (3) below, if on any disposal of eligible shares by an individual after the end of the period referred to in section 312(1A)(a) of the Taxes Act where an amount of relief is attributable to the shares, there would (apart from this subsection) be a gain, the gain shall not be a chargeable gain. (3) Where— (a) an individual’s liability to income tax has been reduced (or treated by virtue of section 304 of the Taxes Act (husband and wife) as reduced) for any year of assessment under section 289A of that Act in respect of any issue of shares, and (b) the amount of the reduction (“A”) is less than the amount (“B”) which is equal to tax at the lower rate for that year on the amount subscribed for the issue, then, if there is a disposal of the shares on which there is a gain, subsection (2) above shall apply only to so much of the gain as is found by multiplying it by the fraction— A B (4) Any question as to— (a) which of any shares issued to a person at different times a disposal relates, being shares to which relief is attributable, or (b) whether a disposal relates to shares to which relief is attributable or to other shares, shall for the purposes of capital gains tax be determined as for the purposes of section 299 of the Taxes Act; and Chapter I of this Part shall have effect subject to the foregoing provisions of this subsection. (5) Sections 104, 105 and 107 shall not apply to shares to which relief is attributable. (6) Where— (a) an individual holds shares which form part of the ordinary share capital of a company, and (b) relief is attributable to some of the shares but not others, then, if there is within the meaning of section 126 a reorganisation affecting those shares, section 127 shall apply (subject to the following provisions of this section) separately to the shares to which relief is attributable and to the other shares (so that shares of each kind are treated as a separate holding of original shares and identified with a separate new holding). (7) Where— (a) an individual holds shares (“the existing holding”) which form part of the ordinary share capital of a company, (b) there is, by virtue of any such allotment for payment as is mentioned in section 126(2)(a), a reorganisation affecting the existing holding, and (c) immediately following the reorganisation, relief is attributable to the existing holding or the allotted shares, sections 127 to 130 shall not apply in relation to the existing holding. (8) Sections 135 and 136 shall not apply in respect of shares to which relief is attributable. (9) Where the relief attributable to any shares is reduced by virtue of section 305(2) of the Taxes Act— (a) the sums allowable as deductions from the consideration in the computation, for the purposes of capital gains tax, of the gain or loss accruing to an individual on the disposal of any of the allotted shares or debentures shall be taken to include the amount of the reduction apportioned between the allotted shares or (as the case may be) debentures in such a way as appears to the inspector, or on appeal to the Commissioners concerned, to be just and reasonable, and (b) the sums so allowable on the disposal (in circumstances in which the preceding provisions of this section do not apply) of any of the shares referred to in section 305(1)(a) shall be taken to be reduced by the amount mentioned in paragraph (a) above, similarly apportioned between those shares. (10) There shall be made all such adjustments of capital gains tax, whether by way of assessment or by way of discharge or repayment of tax, as may be required in consequence of the relief being given or withdrawn. (11) Chapter III of Part VII of the Taxes Act (enterprise investment scheme) applies for the purposes of this section to determine whether relief is attributable to any shares and, if so, the amount of relief so attributable; and “eligible shares” has the same meaning as in that Chapter. (12) References in this section to Chapter III of Part VII of the Taxes Act or any provision of that Chapter are to that Chapter or provision as it applies in relation to shares issued on or after 1st January 1994 . 31 At the end of section 164M of that Act (exclusion of double relief) there is inserted “ but the reference in this section to that Chapter is to that Chapter as it applies in relation to shares issued before 1st January 1994 ”. 32 (1) After that section there is inserted— Exclusion of double relief 164MA If a person makes a claim for relief under Chapter III of Part VII of the Taxes Act (enterprise investment scheme) in respect of any shares, those shares shall not be, or be treated as ever having been, eligible shares . (2) This paragraph has effect in relation to shares issued on or after 1st January 1994. 33 In section 164N(1), in the definition of “eligible shares”, for “and 164M” there is substituted “ 164M and 164MA ”. 34 In section 231(1)(d), “(business expansion scheme)” is omitted.

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SCHEDULE 16 Foreign income dividends

Section 138. Part I The new Chapter 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Part II Liability for and collection of advance corporation tax 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (10) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (11) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (12) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (13) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Part III Insurance companies etc. 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Part IV Other provisions Penalties 10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Small companies’ relief 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Expenses of management 12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Group income 13 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Mutual business etc. 14 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Discretionary trusts 15 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Personal representatives 16 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Purchase and sale of securities 17 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Manufactured dividends 18 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Interest on tax overpaid 20 (1) Section 826 of the Taxes Act 1988 shall be amended as follows. (2) In subsection (1) the following paragraph shall be inserted after paragraph (a)— (aa) a repayment falls to be made under sections 246N and 246Q of advance corporation tax paid by a company in respect of distributions made by it in such an accounting period; or . (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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SCHEDULE 17 Minor corrections

Section 146. 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 (1) Subsection (1) of section 271 of that Act shall have effect, and be deemed always to have had effect, as if— (a) the words “or contract”, wherever they occur, were omitted; (b) in paragraph (b), the words “or the contract was made after that date” were omitted; and (c) in paragraph (c), the words “or, as the case may be, the body with which the contract was made” were omitted. (2) Subsection (2) of that section shall have effect, and be deemed always to have had effect, as if paragraph (b) and the word “or” immediately preceding it were omitted. 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Sections ... 843(2) of that Act (in their application as amended by the Taxation of Chargeable Gains Act 1992) shall have effect, and be deemed always to have had effect, as if, in each case, for “the 1990 Act” there were substituted “the 1992 Act”. 9 Paragraph 8(b) of Schedule 11 to that Act (in its application as amended by the Capital Allowances Act 1990) shall have effect, and be deemed always to have had effect, as if the words “Chapter II of Part I of the 1968 Act or” were omitted.

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SCHEDULE 18

Application of insurance companies provisions relating to loan relationships 1 (1) Part I of Schedule 11 to the Finance Act 1996 (special provision with respect to loan relationships for insurance companies) shall have effect (subject to sub-paragraph (2) below) in relation to qualifying contracts as it has effect in relation to loan relationships which are creditor relationships within the meaning of Chapter II of Part IV of that Act. (2) That Part of that Schedule shall have effect in its application in relation to qualifying contracts, as if— (a) references to section 82(2) of the Finance Act 1996 were references to section 159 of this Act, and (b) references to credits and debits given by Chapter II of Part IV of that Act in respect of a loan relationship were references, respectively, to the profits and losses deriving from the contract. 1A (1) Where the I minus E basis is applied for any accounting period in respect of the life assurance business or capital redemption business of any insurance company, this Chapter shall have effect for that period in relation to contracts and options held for the purposes of that business as if the words in subsection (10) of section 150A from “but references” onwards were omitted. (2) Expressions used in sub-paragraph (1) above and in Part I of Schedule 11 to the Finance Act 1996 have the same meanings in this paragraph as in that Part of that Schedule. Life assurance business: Case I of Schedule D 2 (1) Subject to sub-paragraph (2) below, sub-paragraphs (3) and (4) below apply where— (a) a qualifying contract was at any time in an accounting period of an insurance company held by the company for the purposes of any life assurance business carried on by it, and (b) the profits of the company in respect of that business are, for the purposes of the Tax Acts, computed in accordance with the provisions of the Taxes Act 1988 applicable to Case I of Schedule D. (2) Where the qualifying contract was held partly for the purposes of the life assurance business and partly for other purposes— (a) amounts A and B for the period shall be apportioned on a just and reasonable basis, and (b) any reference in sub-paragraph (3) or (4) below to either of those amounts shall be construed as a reference to so much of it as is referable to the life assurance business. (3) Notwithstanding anything in sections 159 and 160 of this Act, amount A for the period shall not— (a) under or by virtue of this Chapter be chargeable to corporation tax as profits of the company, or (b) be taken into account as a receipt in computing for the purposes of this Chapter the profits or losses of the company. (4) Notwithstanding anything in those sections, amount B for the period shall not— (a) be allowable as a deduction in computing for the purposes of this Chapter the profits or losses of the company, or (b) under or by virtue of this Chapter be allowable as a deduction in computing any other income or profits or gains or losses of the company for the purposes of the Tax Acts. (5) Subsection (5)(a) of section 173 of this Act applies for the purposes of this paragraph as it applies for the purposes of that section. Non-life mutual business 3 (1) Subject to sub-paragraph (2) below, sub-paragraph (3) below applies where a qualifying contract was at any time in an accounting period of a mutual trading company held by the company for the purposes of any non-life mutual business carried on by it. (2) Where the qualifying contract was held partly for the purposes of the non-life mutual business and partly for other purposes— (a) the profit or loss on the contract for the period shall be apportioned on a just and reasonable basis, and (b) any reference in sub-paragraph (3) below to that profit or loss shall be construed as a reference to so much of it as is referable to the non-life mutual business. (3) Notwithstanding anything in section 159 of this Act— (a) no part of the profit or loss on the contract for the period shall be treated for the purposes of the Tax Acts as a profit or loss of a trade or part of a trade, and (b) accordingly, the whole of that profit or loss shall be treated for the purposes of section 160 of this Act as a non-trading profit or loss. Interpretation 4 In this Schedule— . . . . . . “non-life mutual business” means any mutual trading, or any mutual insurance or other mutual business, which (in either case) is not life assurance business. . . .

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SCHEDULE 19 Management: other amendments

Section 196. Part I Amendments of Management Act Notice of liability to income tax and capital gains tax 1 (1) For section 7 of the Management Act there shall be substituted the following section— Notice of liability to income tax and capital gains tax. 7 (1) Every person who— (a) is chargeable to income tax or capital gains tax for any year of assessment, and (b) has not received a notice under section 8 of this Act requiring a return for that year of his total income and chargeable gains, shall, subject to subsection (3) below, within six months from the end of that year, give notice to an officer of the Board that he is so chargeable. (2) In the case of a person who is chargeable as mentioned in subsection (1) above as a trustee of a settlement, that subsection shall have effect as if the reference to a notice under section 8 of this Act were a reference to a notice under section 8A of this Act. (3) A person shall not be required to give notice under subsection (1) above in respect of a year of assessment if for that year his total income consists of income from sources falling within subsections (4) to (7) below and he has no chargeable gains. (4) A source of income falls within this subsection in relation to a year of assessment if— (a) all payments of, or on account of, income from it during that year, and (b) all income from it for that year which does not consist of payments, have or has been taken into account in the making of deductions or repayments of tax under section 203 of the principal Act. (5) A source of income falls within this subsection in relation to any person and any year of assessment if all income from it for that year has been or will be taken into account— (a) in determining that person’s liability to tax, or (b) in the making of deductions or repayments of tax under section 203 of the principal Act. (6) A source of income falls within this subsection in relation to any person and any year of assessment if all income from it for that year is— (a) income from which income tax has been deducted; (b) income from or on which income tax is treated as having been deducted or paid; or (c) income chargeable under Schedule F, and that person is not for that year liable to tax at a rate other than the basic rate or the lower rate. (7) A source of income falls within this subsection in relation to any person and any year of assessment if all income from it for that year is income from which he could not become liable to tax under a self-assessment made under section 9 of this Act in respect of that year. (8) If any person, for any year of assessment, fails to comply with subsection (1) above, he shall be liable to a penalty not exceeding the amount of the tax— (a) in which he is assessed under section 9 or 29 of this Act in respect of that year, and (b) which is not paid on or before the 31st January next following that year. (2) This paragraph has effect as respects the year 1995-96 and subsequent years of assessment. European Economic Interest Groupings 2 In subsection (2) of section 12A of the Management Act (European Economic Interest Groupings), for the words “making assessments to income tax, corporation tax and capital gains tax on members of a grouping” there shall be substituted the words “ securing that members of a grouping are assessed to income tax and capital gains tax or (as the case may be) corporation tax ”. Records for purposes of returns 3 After section 12A of the Management Act there shall be inserted the following section— Records Records to be kept for purposes of returns. 12B (1) Any person who may be required by a notice under section 8, 8A, 11 or 12AA of this Act (or under any of those sections as extended by section 12 of this Act) to make and deliver a return for a year of assessment or other period shall— (a) keep all such records as may be requisite for the purpose of enabling him to make and deliver a correct and complete return for the year or period; and (b) preserve those records until the end of whichever of the following is the later, namely— (i) the day mentioned in subsection (2) below; and (ii) where a return delivered by him is enquired into by an officer of the Board, the day on which, by virtue of section 28A(5) or 28B(5) of this Act, the officer’s enquiries are treated as completed. (2) The day referred to in subsection (1) above is— (a) in the case of a person carrying on a trade, profession or business alone or in partnership or a company, the fifth anniversary of the 31st January next following the year of assessment or (as the case may be) the sixth anniversary of the end of the period; (b) in any other case, the first anniversary of the 31st January next following the year of assessment or, where a return is delivered by the person concerned after that date, the quarter day next following the first anniversary of the day on which the return is delivered; and the quarter days for the purposes of this subsection are 31st January, 30th April, 31st July and 31st October. (3) In the case of a person carrying on a trade, profession or business alone or in partnership— (a) the records required to be kept and preserved under subsection (1) above shall include records of the following, namely— (i) all amounts received and expended in the course of the trade, profession or business and the matters in respect of which the receipts and expenditure take place, and (ii) in the case of a trade involving dealing in goods, all sales and purchases of goods made in the course of the trade; and (b) the duty under that subsection shall include a duty to preserve until the day mentioned in subsection (2) above all supporting documents relating to such items as are mentioned in paragraph (a)(i) or (ii) above. (4) The duty under subsection (1) above to preserve records may be discharged by the preservation of the information contained in them; and where information is so preserved a copy of any document forming part of the records shall be admissible in evidence in any proceedings before the Commissioners to the same extent as the records themselves. (5) Any person who fails to comply with subsection (1) above in relation to a year of assessment or accounting period shall be liable to a penalty not exceeding £3,000. (6) For the purposes of this section— (a) a person engaged in the letting of property shall be treated as carrying on a trade; and (b) “supporting documents” includes accounts, books, deeds, contracts, vouchers and receipts. Recovery of overpayment of tax etc. 4 (1) After subsection (1A) of section 30 of the Management Act (recovery of overpayment of tax etc.) there shall be inserted the following subsection— (1B) Subsections (2) to (8) of section 29 of this Act shall apply in relation to an assessment under subsection (1) above as they apply in relation to an assessment under subsection (1) of that section; and subsection (4) of that section as so applied shall have effect as if the reference to the loss of tax were a reference to the repayment of the amount of tax which ought not to have been repaid. (2) For subsection (5) of that section there shall be substituted the following subsection— (5) An assessment under this section shall not be out of time under section 34 of this Act if it is made before the end of whichever of the following ends the later, namely— (a) the chargeable period following that in which the amount assessed was repaid or paid as the case may be, or (b) where a return delivered by the person concerned, or an amendment of such a return, is enquired into by an officer of the Board, the period ending with the day on which, by virtue of section 28A(5) of this Act, the officer’s enquiries are treated as completed. Assessing procedure 5 (1) After section 30 of the Management Act there shall be inserted the following section— Assessing procedure. 30A (1) Except as otherwise provided, all assessments to tax which are not self-assessments shall be made by an officer of the Board. (2) All income tax which falls to be charged by an assessment which is not a self-assessment may, notwithstanding that it was chargeable under more than one Schedule, be included in one assessment. (3) Notice of any such assessment shall be served on the person assessed and shall state the date on which it is issued and the time within which any appeal against the assessment may be made. (4) After the notice of any such assessment has been served on the person assessed, the assessment shall not be altered except in accordance with the express provisions of the Taxes Acts. (5) Assessments to tax which under any provision in the Taxes Acts are to be made by the Board shall be made in accordance with this section. (2) This paragraph, so far as it relates to partnerships whose trades, professions or businesses are set up and commenced before 6th April 1994, has effect as respects the year 1997-98 and subsequent years of assessment. Amendment of partnership statement where loss of tax discovered 6 After section 30A of the Management Act there shall be inserted the following section— Amendment of partnership statement where loss of tax discovered. 30B (1) Where an officer of the Board or the Board discover, as regards a partnership statement made by any person (the representative partner) in respect of any period— (a) that any profits which ought to have been included in the statement have not been so included, or (b) that an amount of profits so included is or has become insufficient, or (c) that any relief claimed by the representative partner is or has become excessive, the officer or, as the case may be, the Board may, subject to subsections (3) and (4) below, by notice to that partner so amend the statement as to make good the omission or deficiency or eliminate the excess. (2) Where a partnership statement is amended under subsection (1) above, the officer shall by notice to each of the relevant partners so amend their self-assessments under section 9 or 11AA of this Act as to give effect to the amendments of the partnership statement. (3) Where the situation mentioned in subsection (1) above is attributable to an error or mistake as to the basis on which the partnership statement ouade, no amendment shall be made under that subsection if that statement was in fact made on the basis or in accordance with the practice generally prevailing at the time when it was made. (4) No amendment shall be made under subsection (1) above unless one of the two conditions mentioned below is fulfilled. (5) The first condition is that the situation mentioned in subsection (1) above is attributable to fraudulent or negligent conduct on the part of— (a) the representative partner or a person acting on his behalf, or (b) a relevant partner or a person acting on behalf of such a partner. (6) The second condition is that at the time when an officer of the Board— (a) ceased to be entitled to give notice of his intention to enquire into the representative partner’s return under section 12AA of this Act; or (b) informed that partner that he had completed his enquiries into that return, the officer could not have been reasonably expected, on the basis of the information made available to him before that time, to be aware of the situation mentioned in subsection (1) above. (7) Subsections (6) and (7) of section 29 of this Act apply for the purposes of subsection (6) above as they apply for the purposes of subsection (5) of that section; and those subsections as so applied shall have effect as if— (a) any reference to the taxpayer were a reference to the representative partner; (b) any reference to the taxpayer’s return under section 8, 8A or 11 were a reference to the representative partner’s return under section 12AA of this Act; and (c) sub-paragraph (ii) of paragraph (a) of subsection (7) were omitted. (8) An objection to the making of an amendment under subsection (1) above on the ground that neither of the two conditions mentioned above is fulfilled shall not be made otherwise than on an appeal against the amendment. (9) In this section— “profits” has the same meaning as in section 29 of this Act; “relevant partner” means a person who was a partner at any time during the period in respect of which the partnership statement was made. (10) Any reference in this section to the representative partner includes, unless the context otherwise requires, a reference to any successor of his. Right of appeal 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Error or mistake 8 (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2) The proviso to subsection (2) of that section shall cease to have effect and after that subsection there shall be inserted the following subsection— (2A) No relief shall be given under this section in respect of— (a) an error or mistake as to the basis on which the liability of the claimant ought to have been computed where the return was in fact made on the basis or in accordance with the practice generally prevailing at the time when it was made; or (b) an error or mistake in a claim which is included in the return. 9 After section 33 of the Management Act there shall be inserted the following section— Error or mistake in partnership statement. 33A (1) This section applies where, in the case of a trade, profession or business carried on by two or more persons in partnership, those persons allege that the tax charged by self-assessments of theirs under section 9 or 11AA of this Act was excessive by reason of some error or mistake in a partnership statement. (2) One of those persons (the representative partner) may, not later than five years after the filing date, by notice in writing make a claim to the Board for relief. (3) On receiving the claim the Board shall inquire into the matter and shall, subject to subsection (5) below, so amend the partnership statement so as to give such relief in respect of the error or mistake as is reasonable or just. (4) Where a partnership statement is amended under subsection (3) above, the Board shall by notice to each of the relevant partners so amend their self-assessments under section 9 or 11AA of this Act as to give effect to the amendment of the partnership statement. (5) No relief shall be given under this section in respect of an error or mistake as to the basis on which the liability of the partners ought to have been computed where the partnership statement was in fact made on the basis or in accordance with the practice generally prevailing at the time when it was made. (6) In determining the claim the Board— (a) shall have regard to all the relevant circumstances of the case, and (b) in particular shall consider whether the granting of relief would result in the exclusion from charge to tax of any part of the profits of any of the partners; and for the purposes of this subsection the Board may take into consideration the liability of the partners and their self-assessments in respect of chargeable periods other than that to which the claim relates. (7) If any appeal is brought from the decision of the Board on the claim, the Special Commissioners shall hear and determine the appeal in accordance with the principles to be followed by the Board in determining claims under this section. (8) Neither the representative partner nor the Board shall be entitled to require a case to be stated under section 56 of this Act otherwise than on a point of law arising in connection with the computation of profits. (9) In this section— “filing date” has the same meaning as in section 12AC of this Act; “profits” has the same meaning as in section 33 of this Act; “relevant partner” means a person who was a partner at any time during the period in respect of which the partnership statement was made. (10) Any reference in this section to the representative partner includes, unless the context otherwise requires, a reference to any successor of his. Time limits for assessments 10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 (1) In subsection (1) of section 36 of the Management Act (fraudulent or negligent conduct), for the words from “twenty years” to the end there shall be substituted the words— (a) in the case of an assessment to income tax or capital gains tax, twenty years after the 31st January next following the year of assessment to which it relates; and (b) in the case of an assessment to corporation tax, twenty-one years after the end of the accounting period to which it relates. (2) For subsection (2) of that section there shall be substituted the following subsection— (2) Where the person in default carried on a trade, profession or business with one or more other persons at any time in the period for which the assessment is made, an assessment in respect of the profits or gains of the trade, profession or business for the purpose mentioned in subsection (1) above may be made not only on the person in default but also on his partner or any of his partners. 12 In subsections (1) and (2) of section 40 of the Management Act (assessments on personal representatives), for the words “the third year next following the year of assessment” there shall be substituted the words “ the period of three years beginning with the 31st January next following the year of assessment ”. Claims etc. 13 For section 42 of the Management Act there shall be substituted the following section— Procedure for making claims etc. 42 (1) Where any provision of the Taxes Acts provides for relief to be given, or any other thing to be done, on the making of a claim, this section shall, unless otherwise provided, have effect in relation to the claim. (2) Subject to subsection (3) below, where notice has been given under section 8, 8A, 11 or 12AA of this Act, a claim shall not at any time be made otherwise than by being included in a return under that section if it could, at that or any subsequent time, be made by being so included. (3) Subsection (2) above shall not apply in relation to any claim which falls to be taken into account in the making of deductions or repayments of tax under section 203 of the principal Act. (4) A claim made by a company for payment of a tax credit shall be made by being included in a return under section 11 of this Act. (5) The references in subsections (2) and (4) above to a claim being included in a return include references to a claim being so included by virtue of an amendment of the return; and the reference in subsection (4) above to a claim for payment includes a reference to a claim resulting in payment. (6) In the case of a trade, profession or business carried on by persons in partnership, a claim under any of the provisions mentioned in subsection (7) below shall be made— (a) where subsection (2) above applies, by being included in a return under section 12AA of this Act, and (b) in any other case, by such one of those persons as may be nominated by them for the purpose. (7) The provisions are— (a) sections 84, 91B, 101(2), 120(2), 401, 471, 472, 484, 504, 531, 534, 535, 537A, 538, 570, 571(4), 579(4), 723(3), 732(4), 810 of, and paragraphs 2, 6 and 11 of Schedule 5 to, the principal Act; (b) section 43(5) of the Finance Act 1989; (c) sections 1, 11, 17, 22, 23, 24, 25, 30, 31, 33, 37, 48, 49, 53, 55, 68(5), 68(9), 77, 78, 124A, 129(2), 140(3), 141 and 158 of the Capital Allowances Act 1990; and (d) sections 41 and 42 of the Finance (No. 2) Act 1992. (8) A claim may be made on behalf of an incapacitated person by his trustee, guardian, tutor or curator; and a person who under Part VIII of this Act has been charged with tax on the profits of another person may make any such claim for relief by discharge or repayment of that tax. (9) Where a claim has been made (whether by being included in a return under section 8, 8A, 11 or 12AA of this Act or otherwise) and the claimant subsequently discovers that an error or mistake has been made in the claim, the claimant may make a supplementary claim within the time allowed for making the original claim. (10) This section shall apply in relation to any elections and notices as it applies in relation to claims. (11) Schedule 1A to this Act shall apply as respects any claim, election or notice which— (a) is made otherwise than by being included in a return under section 8, 8A, 11 or 12AA of this Act, and (b) does not fall to be taken into account in the making of deductions or repayments of tax under section 203 of the principal Act. (12) Schedule 2 to this Act shall have effect as respects the Commissioners to whom an appeal lies under Schedule 1A to this Act. (13) In this section “profits”— (a) in relation to income tax, means income, (b) in relation to capital gains tax, means chargeable gains, and (c) in relation to corporation tax, means profits as computed for the purposes of that tax. 14 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Determination of Commissioners 16 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Procedure on appeal 17 (1) For subsections (6) and (7) of section 50 of the Management Act (procedure on appeal) there shall be substituted the following subsections— (6) If, on an appeal, it appears to the majority of the Commissioners present at the hearing, by examination of the appellant on oath or affirmation, or by other . . . evidence— (a) that, by reason of an amendment under section 28A(2) or (4) of this Act, the appellant is overcharged by a self-assessment; (b) that, by reason of an amendment under section 28B(3) or 30B(1) of this Act, any amounts contained in a partnership statement are excessive; or (c) that the appellant is overcharged by an assessment other than a self-assessment, the assessment or amounts shall be reduced accordingly, but otherwise the assessment or statement shall stand good. (7) If, on an appeal, it appears to the Commissioners— (a) that the appellant is undercharged to tax by a self-assessment which has been amended under section 28A(2) or (4) of this Act; (b) that any amounts contained in a partnership statement which has been amended under section 28B(3) or 30B(1) of this Act are insufficient; or (c) that the appellant is undercharged by an assessment other than a self-assessment, the assessment or amounts shall be increased accordingly. (2) In subsection (8) of that section, after the words “an assessment” there shall be inserted the words “ (other than a self-assessment) ”. (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Postponement of tax pending appeal 18 (1) For subsection (1) of section 55 of the Management Act there shall be substituted the following subsection— (1) This section applies to an appeal to the Commissioners against— (a) an amendment made under section 28A(2) or (4) of this Act of a self-assessment, (b) an assessment to tax made under section 29 of this Act, (c) an assessment to income tax made under Schedule 16 to the principal Act (income tax on company payments) other than an assessment charging tax the time for the payment of which is given by paragraph 4(1) or 9 of that Schedule, or (d) a notice under subsection (1) or (3) of section 753 of that Act where, before the appeal is determined, the appellant is assessed to tax under section 747(4)(a) of that Act by reference to an amount of chargeable profits specified in that notice. (2) In the following provisions of that section, for the word “assessment”, in each place where it occurs, there shall be substituted the words “ amendment or assessment ”. Collection and recovery 19 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 (1) After section 70 of the Management Act there shall be inserted the following section— Payments by cheque. 70A (1) For the purposes of this Act and the provisions mentioned in subsection (2) below, where— (a) any payment to an officer of the Board or the Board is made by cheque, and (b) the cheque is paid on its first presentation to the banker on whom it is drawn, the payment shall be treated as made on the day on which the cheque was received by the officer or the Board. (2) The provisions are— (a) sections 824 to 826 of the principal Act (repayment supplements and interest on tax overpaid); and (b) section 283 of the 1992 Act (repayment supplements). (2) This paragraph has effect as respects cheques received on or after 6th April 1996. Interest on overdue tax or tax recovered 23 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 In subsection (1) of section 87A of the Management Act (interest on overdue corporation tax etc.), for the words “section 10 of the principal Act” there shall be substituted the words “ section 59D of this Act ”. Penalties 25 For section 93 of the Management Act there shall be substituted the following section— Failure to make return for income tax and capital gains tax. 93 (1) This section applies where— (a) any person (the taxpayer) has been required by a notice served under or for the purposes of section 8 or 8A of this Act (or either of those sections as extended by section 12 of this Act) to deliver any return, and (b) he fails to comply with the notice. (2) The taxpayer shall be liable to a penalty which shall be £100. (3) If, on an application made to them by an officer of the Board, the General or Special Commissioners so direct, the taxpayer shall be liable to a further penalty or penalties not exceeding £60 for each day on which the failure continues after the day on which he is notified of the direction (but excluding any day for which a penalty under this subsection has already been imposed). (4) If— (a) the failure by the taxpayer to comply with the notice continues after the end of the period of six months beginning with the filing date, and (b) no application is made under subsection (3) above before the end of that period, the taxpayer shall be liable to a further penalty which shall be £100. (5) Without prejudice to any penalties under subsections (2) to (4) above, if— (a) the failure by the taxpayer to comply with the notice continues after the anniversary of the filing date, and (b) there would have been a liability to tax shown in the return, the taxpayer shall be liable to a penalty of an amount not exceeding the liability to tax which would have been so shown. (6) No penalty shall be imposed under subsection (3) above in respect of a failure at any time after the failure has been remedied. (7) If the taxpayer proves that the liability to tax shown in the return would not have exceeded a particular amount, the penalty under subsection (2) above, together with any penalty under subsection (4) above, shall not exceed that amount. (8) On an appeal against the determination under section 100 of this Act of a penalty under subsection (2) or (4) above, neither section 50(6) to (8) nor section 100B(2) of this Act shall apply but the Commissioners may— (a) if it appears to them that, throughout the period of default, the taxpayer had a reasonable excuse for not delivering the return, set the determination aside; or (b) if it does not so appear to them, confirm the determination. (9) References in this section to a liability to tax which would have been shown in the return are references to an amount which, if a proper return had been delivered on the filing date, would have been payable by the taxpayer under section 59B of this Act for the year of assessment. (10) In this section— “the filing date” means the day mentioned in section 8(1A) or, as the case may be, section 8A(1A) of this Act; “the period of default”, in relation to any failure to deliver a return, means the period beginning with the filing date and ending with the day before that on which the return was delivered. 26 After section 93 of the Management Act there shall be inserted the following section— Failure to make partnership return. 93A (1) This section applies where, in the case of a trade, profession or business carried on by two or more persons in partnership— (a) a partner (the representative partner) has been required by a notice served under or for the purposes of section 12AA(2) or (3) of this Act to deliver any return, and (b) he fails to comply with the notice. (2) Each relevant partner shall be liable to a penalty which shall be £100. (3) If, on an application made to them by an officer of the Board, the General or Special Commissioners so direct, each relevant partner shall be liable, for each day on which the failure continues after the day on which the representative partner is notified of the direction (but excluding any day for which a penalty under this subsection has already been imposed), to a further penalty or penalties not exceeding £60. (4) If— (a) the failure by the representative partner to comply with the notice continues after the end of the period of six months beginning with the filing date, and (b) no application is made under subsection (3) above before the end of that period, each relevant partner shall be liable to a further penalty which shall be £100. (5) No penalty shall be imposed under subsection (3) above in respect of a failure at any time after the failure has been remedied. (6) Where, in respect of the same failure to comply, penalties under subsection (2), (3) or (4) above are determined under section 100 of this Act as regards two or more relevant partners— (a) no appeal against the determination of any of those penalties shall be brought otherwise than by the representative partner; (b) any appeal by that partner shall be a composite appeal against the determination of each of those penalties; and (c) section 100B(3) of this Act shall apply as if that partner were the person liable to each of those penalties. (7) On an appeal against a determination under section 100 of this Act of a penalty under subsection (2) or (4) above, neither section 50(6) to (8) nor section 100B(2) of this Act shall apply but the Commissioners may— (a) if it appears to them that, throughout the period of default, the representative partner had a reasonable excuse for not delivering the return, set the determination aside; or (b) if it does not so appear to them, confirm the determination. (8) In this section— “the filing date” means the day specified in the notice under section 12AA(2) or (3) of this Act; “the period of default”, in relation to any failure to deliver a return, means the period beginning with the filing date and ending with the day before that on which the return was delivered; “relevant partner” means a person who was a partner at any time during the period in respect of which the return was required. 27 (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2) In subsection (3) of that section, the words from “and the references” to the end shall cease to have effect. 28 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 (1) For subsection (2) of section 98B of the Management Act (European Economic Interest Groupings) there shall be substituted the following subsections— (2) Subsections (2A) to (4) below apply where a grouping or member of a grouping required by a notice given under section 12A of this Act to deliver a return or other document fails to comply with the notice. (2A) The grouping or member shall be liable to a penalty not exceeding £300 multiplied by the number of members of the grouping at the time of the failure to comply. (2B) If, on an application made to them by an officer of the Board, the General or Special Commissioners so direct, the grouping or member shall be liable, for each day on which the failure continues after the day on which the grouping or member is notified of the direction (but excluding any day for which a penalty under this subsection has already been imposed), to a further penalty or penalties not exceeding £60 multiplied by the number of members of the grouping at the end of that day. (2) In subsection (3) of that section, for the words “subsection (2)” there shall be substituted the words “ subsection (2A) or (2B) ”. (3) In subsection (4) of that section, for the words “subsection (2)” there shall be substituted the words “ subsections (2A) and (2B) ”. 31 (1) In subsection (1) of section 100B of the Management Act (appeals against penalty determinations), after the words “subject to” there shall be inserted the words “ sections 93, 93A and 95A of this Act ”. (2) At the beginning of subsection (2) of that section there shall be inserted the words “ Subject to sections 93(8) and 93A(7) of this Act ”. 32 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 After section 103 of the Management Act there shall be inserted the following section— Interest on penalties. 103A A penalty under any of the provisions of Part II or VA or this Part of this Act shall carry interest at the rate applicable under section 178 of the Finance Act 1989 from the date on which it becomes due and payable until payment. Interpretation 34 (1) In subsection (1) of section 118 of the Management Act (interpretation), after the definition of “the Special Commissioners Regulations” there shall be inserted the following definitions— “successor”, in relation to a person who has made and delivered a return under section 12AA of this Act, and “predecessor” and “successor”, in relation to the successor of such a person, shall be construed in accordance with section 12AC(6) of this Act; . (2) Subsection (3) of that section (effect of assessments in partnership name) shall cease to have effect. (3) Sub-paragraph (2) above, so far as it relates to partnerships whose trades, professions or businesses are set up and commenced before 6th April 1994, has effect as respects the year 1997-98 and subsequent years of assessment. Claims etc. not included in returns 35 After Schedule 1 to the Management Act there shall be inserted the following Schedule— Schedule 1A Claims etc. not Included in Returns Preliminary 1 In this Schedule— “claim” means a claim, election or notice as respects which this Schedule applies; “partnership claim” means a claim made in accordance with section 42(6)(b) of this Act; “profits” has the same meaning as in section 42 of this Act; “relevant partner”, in relation to a partnership claim, means any person who was a partner at any time during the period in respect of which the claim is made; “successor”, in relation to a person who— has made a partnership claim, but is no longer a partner or is otherwise no longer available, means such other partner who may at any time be nominated for the purposes of this paragraph by the majority of the partners at that time, and “predecessor” and “successor”, in relation to a person so nominated, shall be construed accordingly. Making of claims 2 (1) Subject to any provision in the Taxes Acts for a claim to be made to the Board, every claim shall be made to an officer of the Board. (2) No claim requiring the repayment of tax shall be made unless the claimant has documentary proof that the tax has been paid by deduction or otherwise. (3) A claim shall be made in such form as the Board may determine. (4) 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. (5) The form of claim may require— (a) a statement of the amount of tax which will be required to be discharged or repaid in order to give effect to the claim; (b) a return of profits to be made in support of the claim; and (c) any such particulars of assets acquired as may be required in a return by virtue of section 12 of this Act. (6) In the case of a claim made by or on behalf of a person who is not resident, or who claims to be not resident or not ordinarily resident or not domiciled, in the United Kingdom, an officer of the Board or the Board may require a statement or declaration in support of the claim to be made by affidavit. Amendments of claims 3 (1) Subject to sub-paragraph (2) below— (a) at any time before the end of the period of nine months beginning with the day on which a claim is made, an officer of the Board may by notice to the claimant so amend the claim as to correct any obvious errors or mistakes in the return (whether errors of principle, arithmetical mistakes or otherwise); and (b) at any time before the end of the period of twelve months beginning with the day on which the claim is made, the claimant may amend his claim by notice to an officer of the Board. (2) No amendment of a claim may be made under sub-paragraph (1) above at any time during the period— (a) beginning with the day on which an officer of the Board gives notice of his intention to enquire into the claim, and (b) ending with the day on which the officer’s enquiries into the claim are completed. Giving effect to claims and amendments 4 (1) An officer of the Board or the Board shall, as soon as practicable after a claim other than a partnership claim is made, or such a claim is amended under paragraph 3 above, give effect to the claim or amendment by discharge or repayment of tax. (2) An officer of the Board or the Board shall, as soon as practicable after a partnership claim is made, or such a claim is amended under paragraph 3 above, give effect to the claim or amendment, as respects each of the relevant partners, by discharge or repayment of tax. Power to enquire into claims 5 (1) An officer of the Board may enquire into— (a) a claim made by any person, or (b) any amendment made by any person of a claim made by him, if, before the end of the period mentioned in sub-paragraph (2) below, he gives notice in writing of his intention to do so to that person or, in the case of a partnership claim, any successor of that person. (2) The period referred to in sub-paragraph (1) above is the period ending with the quarter day next following the first anniversary of the day on which the claim or amendment was made; and the quarter days for the purposes of this subsection are 31st January, 30th April, 31st July and 31st October. (3) A claim or amendment which has been enquired into under sub-paragraph (1) above shall not be the subject of a further notice under that sub-paragraph. Power to call for documents for purposes of enquiries 6 (1) This paragraph applies where an officer of the Board gives notice under paragraph 5 above to any person (the claimant) of his intention to enquire into— (a) a claim made by the claimant, or (b) any amendment made by the claimant of such a claim. (2) For the purpose of enquiring into the claim or amendment, the officer may at the same or any subsequent time by notice in writing require the claimant, within such time (which shall not be less than 30 days) as may be specified in the notice— (a) to produce to the officer such documents as are in the claimant’s possession or power and as the officer may reasonably require for the purpose of determining whether and, if so, the extent to which the claim or amendment is incorrect, and (b) to furnish the officer with such accounts or particulars as he may reasonably require for that purpose. (3) Subsections (3) to (11) of section 19A of this Act apply for the purposes of this paragraph as they apply for the purposes of that section; and those subsections as so applied shall have effect as if any reference to subsection (2) of that section were a reference to sub-paragraph (2) above. (4) Where this paragraph applies in relation to a partnership claim, any reference in this paragraph to the claimant includes a reference to any predecessor or successor of his. Amendments of claims where enquiries made 7 (1) This paragraph applies where an officer of the Board gives notice under paragraph 5(1) above to any person (the claimant) of his intention to enquire into— (a) a claim made by the claimant, or (b) any amendment made by the claimant of such a claim. (2) At any time in the period of 30 days beginning with the day on which the officer’s enquiries are completed, the claimant may so amend his claim— (a) as to eliminate or make good any excess or deficiency which, on the basis of the conclusions stated in the officer’s notice under sub-paragraph (4) below, is an excess or deficiency which could be made good or eliminated under sub-paragraph (3) below; or (b) as to give effect to any amendments to the claim which he has notified to the officer. (3) If, at any time in the period of 30 days beginning immediately after the period mentioned in sub-paragraph (2) above, the officer is of opinion that— (a) the claimant’s claim is excessive or insufficient, and (b) in a case falling within sub-paragraph (1)(b) above, the excess or deficiency is attributable (wholly or partly) to the claimant’s amendment, the officer may by notice to the claimant so amend the claim as to eliminate or make good the excess or deficiency or, where paragraph (b) above applies, so much of the excess or deficiency as is so attributable. (4) Subject to sub-paragraph (5) below, the officer’s enquiries shall be treated as completed at such time as he by notice— (a) informs the claimant that he has completed his enquiries, and (b) states his conclusions as to the amount which should be the amount of the claimant’s claim. (5) Subsections (6) and (7) of section 28A of this Act apply for the purposes of sub-paragraph (4) above as they apply for the purposes of subsection (5) of that section. (6) Where this paragraph applies in relation to a partnership claim, any reference in this paragraph to the claimant includes a reference to any predecessor or successor of his. Giving effect to such amendments 8 (1) An officer of the Board or the Board shall, within 30 days of a claim other than a partnership claim being amended under paragraph 7(2) or (3) above, give effect to the amendment by making such adjustment as may be necessary, whether— (a) by way of assessment on the claimant, or (b) by discharge of tax or, on proof to the satisfaction of the officer or the Board that any tax has been paid by the claimant by deduction or otherwise, by repayment of tax. (2) An officer of the Board or the Board shall, within 30 days of a partnership claim being amended under paragraph 7(2) or (3) above, give effect to the amendment, as respects each of the relevant partners, by making such adjustment as may be necessary, whether— (a) by way of assessment on the partner, or (b) by discharge of tax or, on proof to the satisfaction of the officer or the Board that any tax has been paid by the partner by deduction or otherwise, by repayment of tax. (3) An assessment made under sub-paragraph (1) or (2) above shall not be out of time if it is made within the time mentioned in that sub-paragraph. Appeals against such amendments 9 (1) An appeal may be brought against an amendment made under paragraph 7(3) above by giving written notice to the officer within 30 days of the amendment being made. (2) Where, in the case of such an appeal, the issues arising include— (a) any question arising under section 278 of the principal Act (personal reliefs for non-residents); (b) any question of residence, ordinary residence or domicile; or (c) the question whether a fund is one to which section 615(3) of that Act applies (pension funds for service abroad), the time for bringing the appeal shall be three months from the making of the amendment under paragraph 7(3) above. (3) On an appeal under this paragraph, the Commissioners may vary the amendment appealed against whether or not the variation is to the advantage of the appellant. (4) Where an amendment made under paragraph 7(3) above is varied, whether by the Commissioners or by the order of any court, paragraph 8 above shall (with the necessary modifications) apply in relation to the variation as it applied in relation to the amendment. 36 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Part II Amendments of Taxes Act 1988 Time limits for claims under section 96 37 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Interest on Schedule E tax 38 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Time limits for claims under sections 534 and 537A 39 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repayment supplements: income tax 41 (1) For subsection (1) of section 824 of the Taxes Act 1988 (repayment supplements: individuals and others) there shall be substituted the following subsection— (1) Subject to the following provisions of this section, a repayment made by the Board or an officer of the Board of any of the following, namely— (a) an amount paid on account of income tax under section 59A of the Management Act; (b) any income tax paid by or on behalf of an individual for a year of assessment; (c) a surcharge imposed under section 59C of that Act; and (d) a penalty incurred by an individual under any of the provisions of that Act, shall be increased under this section by an amount (a “repayment supplement”) equal to interest on the amount repaid at the rate applicable under section 178 of the Finance Act 1989 for the period (if any) between the relevant time and the date on which the order for the repayment is issued. (2) For subsection (3) of that section there shall be substituted the following subsection— (3) For the purposes of subsection (1) above— (a) if the repayment is of an amount paid on account of income tax, the relevant time is either the date on which the amount became due and payable in accordance with section 59A of the Management Act or, if later, the date on which the amount was paid; (b) if the repayment is of income tax, the relevant time is either the 31st January next following the year of assessment for which the tax was charged or, if later, the date on which the tax was paid; and (c) if the repayment is of a penalty or surcharge, the relevant timee is either the date following the expiry of 30 days from the date on which the penalty or surcharge was incurred or imposed or, if later, the date on which the penalty or surcharge was paid. (3) The following shall cease to have effect, namely— (a) subsection (5) of that section; (b) in subsection (9) of that section the words “a partnership” and the words “(within the meaning of section 111 of the Finance Act 1989)”; and (c) subsection (10) of that section. (4) This paragraph, so far as it relates to partnerships whose trades, professions or businesses are set up and commenced before 6th April 1994, has effect as respects the year 1997-98 and subsequent years of assessment. Interest on tax overpaid 42 In subsection (2) of section 826 of the Taxes Act 1988 (interest on tax overpaid), for the words “section 10” there shall be substituted the words “ section 59D of the Management Act (payment of corporation tax) ”. Time limits for elections under Schedule 5 43 (1) In sub-paragraph (3) of paragraph 2 of Schedule 5 to the Taxes Act 1988 (farming: election for the herd basis), for the words from “not later” to the end there shall be substituted the following paragraphs— (a) in the case of an election by a person chargeable to income tax, not later than twelve months from the 31st January next following the qualifying year of assessment; (b) in the case of an election on behalf of persons in partnership, not later than twelve months from the 31st January next following the year of assessment in which the qualifying period of account ends; and (c) in the case of an election by a person chargeable to corporation tax, not later than two years from the end of the qualifying accounting period. (2) In sub-paragraph (4) of that paragraph, for paragraphs (a) and (b) there shall be substituted the following paragraphs— (a) in a case falling within sub-paragraph (3)(a) above, for the qualifying year of assessment and all subsequent years; (b) in a case falling within sub-paragraph (3)(b) above, for the qualifying period of account and all subsequent periods of account; and (c) in a case falling within sub-paragraph (3)(c) above, for the qualifying accounting period and all subsequent accounting periods. (3) After that sub-paragraph there shall be inserted the following sub-paragraphs— (5) Where, in a case falling within sub-paragraph (3)(a) above, the commencement year immediately precedes the qualifying year of assessment, sub-paragraph (4)(a) above shall have effect as if the reference to the qualifying year of assessment were a reference to the commencement year. (6) In this paragraph— “commencement year”, in relation to a person chargeable to income tax, means the year of assessment in which his trade is set up and commenced; “period of account”, in relation to persons in partnership, means any period for which accounts are drawn up; “qualifying accounting period”, in relation to a person chargeable to corporation tax, means the first accounting period during the whole or part of which it kept a production herd of the class in question; “qualifying period of account”, in relation to persons in partnership, means the first period of account during the whole or part of which those persons kept such a herd; “qualifying year of assessment”, in relation to a person chargeable to income tax, means the first year of assessment after the commencement year for which the amount of profits or gains or losses in respect of his farming is computed for tax purposes by reference to the facts of a period during the whole or part of which he kept such a herd. (4) In paragraph 6 of that Schedule, for sub-paragraphs (2) to (4) there shall be substituted the following sub-paragraphs— (2) An election for the herd basis made by virtue of sub-paragraph (1) above shall only be valid if made— (a) in the case of an election by a person chargeable to income tax, not later than twelve months from the 31st January next following the qualifying year of assessment; (b) in the case of an election on behalf of persons in partnership, not later than twelve months from the 31st January next following the year of assessment in which the qualifying period of account ends; and (c) in the case of an election by a person chargeable to corporation tax, not later than two years from the end of the qualifying accounting period. (3) An election for the herd basis made by virtue of sub-paragraph (1) above shall, notwithstanding paragraph 2(4) above, have effect— (a) in a case falling within sub-paragraph (2)(a) above, for the qualifying year of assessment and all subsequent years; (b) in a case falling within sub-paragraph (2)(b) above, for the qualifying period of account and all subsequent periods of account; and (c) in a case falling within sub-paragraph (2)(c) above, for the qualifying accounting period and all subsequent accounting periods. (4) In this paragraph— “period of account”, in relation to persons in partnership, means any period for which accounts are drawn up; “qualifying accounting period”, in relation to a person chargeable to corporation tax, means the first accounting period in which the compensation is relevant; “qualifying period of account”, in relation to persons in partnership, means the first period of account in which the compensation is relevant; “qualifying year of assessment”, in relation to a person chargeable to income tax, means the first year of assessment for which the amount of profits or gains or losses in respect of his farming falls to be computed for tax purposes by reference to the facts of a period in which the compensation is relevant. Part III Amendments of other enactments Setting of rates of interest 44 In subsection (2)(f) of section 178 of the Finance Act 1989 (setting of rates of interest), for the words “sections 86, 86A, 87, 87A, and 88” there shall be substituted the words “ sections 59C, 86, 86A, 87, 87A, 88 and 103A ”. Class 4 contributions 45 In subsection (1) of section 16 of the Social Security Contributions and Benefits Act 1992 (application of Income Tax Acts to class 4 contributions), for paragraph (b) there shall be substituted the following paragraph— (b) the provisions of Part VA (payment of tax) and Part X (penalties) of the Taxes Management Act 1970, . Repayment supplements: capital gains tax 46 (1) In subsection (1) of section 283 of the Taxation of Chargeable Gains Act 1992 (repayment supplements)— (a) for the words from “for which” to “that year of assessment” there shall be substituted the words “ a repayment of that ta is made by the Board or an officer of the Board ”, and (b) for the words “the end of the tax month in which” there shall be substituted the words “ the date on which ”. (2) For subsection (2) of that section there shall be substituted the following subsection— (2) For the purposes of subsection (1) above, the relevant time is either the 31st January next following the year of assessment for which the tax was payable or, if later, the date on which the tax was paid. (3) In subsection (4) of that section, for the words from “partnership” to “section 701(9) of that Act)” there shall be substituted the words “ trust or ”. (4) Subsection (5) of that section shall cease to have effect.

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SCHEDULE 20 Changes for facilitating self-assessment: transitional provisions and savings

Section 218. Assessment under Cases I and II of Schedule D 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Assessment under Case III of Schedule D 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Assessment under Cases IV and V of Schedule D 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Loss relief 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Capital allowances 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Double taxation relief 10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 (1) ... this paragraph applies in the case of— (a) a trade, profession or vocation set up and commenced before 6th April 1994 and continuing after 5th April 1998; or (b) income from a source arising before the former date and continuing after the latter date. (2) Sub-paragraph (3) below applies where— (a) credit against income tax for the year 1995-96 or any earlier year of assessment is or has been allowed by virtue of subsection (1) of section 804 of the Taxes Act 1988 in respect of any income (“the original income”), and (b) the source of that income ceases in a subsequent year of assessment (“the subsequent year”). (3) The following shall be set off one against the other, namely— (a) the amount of the credit which, under Part XVIII of the Taxes Act 1988 (including section 804), has been allowed against income tax in respect of the original income, and (b) the aggregate of— (i) the amount of the credit which, apart from that section, would have been so allowed, and (ii) the difference between the amount of the credit which, on the assumptions mentioned in sub-paragraph (4) below, would have been allowable under Part XVIII of that Act for the year 1996-97 and the amount of credit which has been so allowed; and if the amount given by paragraph (a) exceeds that given by paragraph (b) above, the person chargeable in respect of income (if any) arising in the subsequent year from the same source as the original income shall be chargeable for that year to an amount of income tax equal to the excess . , and the person shall be liable for any tax so chargeable (4) The assumptions are— (a) that the words “the appropriate percentage of” were omitted from paragraph 2(2) above; (b) that the words “50 per cent. of” were omitted from paragraphs (a), (b) and (c) of paragraph 6(2) above; and (c) that paragraph 10 above had not been enacted. (5) Where the period on the income of which income tax is chargeable for the year 1996-97 is that year, sub-paragraph (3) above shall have effect as if for paragraph (b) there were substituted the following paragraph— (b) the amount of the credit which, apart from that section, would have been so allowed; . (6) Any reference in sub-paragraph (2) or (3) above to section 804 or Part XVIII of the Taxes Act 1988 includes a reference to the corresponding provisions of any earlier enactments. (7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Supplemental 14 (1) In this Schedule— (a) any reference to a source of income arising before any date (“the earlier date”) and continuing after or ceasing before some other date (“the later date”) is a reference to a source of income arising to any person before the earlier date and continuing to be possessed by that person after, or (as the case may be) ceasing to be possessed by that person before, the later date; and (b) any reference to a source of income includes a reference to a part of such a source. (2) Where, as respects income from any source, income tax is to be charged under Case IV or V of Schedule D by reference to the amounts of income received in the United Kingdom, the source shall be treated for the purposes of this Schedule as arising on the date on which the first amount of income is so received.

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SCHEDULE 21 Lloyd’s underwriters: individuals

Section 228. Year of assessment in which profits or losses arise 1 (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2) Subsection (3) of that section shall cease to have effect. (3) In this paragraph— (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (b) sub-paragraph (2) has effect for the year 1996-97 and subsequent years of assessment. 2 (1) In subsection (1) of section 172 of the 1993 Act (year of assessment in which profits or losses arise), for paragraphs (a) and (b) there shall be substituted the following paragraphs— (a) in the case of profits or losses arising directly from his membership of one or more syndicates, those of any previous year or years which are declared in the corresponding underwriting year; (b) in the case of profits or losses arising from assets forming part of a premiums trust fund, those allocated under the rules or practice of Lloyd’s to any previous year or years the profits or losses of which are declared in the corresponding underwriting year; and . (2) Sub-paragraph (1) above does not have effect for the years 1994-95, 1995-96 and 1996-97, but in relation to those years that section shall have effect as if paragraphs (a) and (b) of subsection (1) were omitted. Premiums trust funds 3 For subsection (1) of section 174 of the 1993 Act (premiums trust funds) there shall be substituted the following subsection— (1) For the purposes of the Income Tax Acts and the Gains Tax Acts— (a) a member shall be treated as absolutely entitled as against the trustees to the assets forming part of a premiums trust fund of his; and (b) where a deposit required by a regulatory authority in a country or territory outside the United Kingdom is paid out of such a fund, the money so paid shall be treated as still forming part of that fund. Reinsurance to close 4 (1) After subsection (4) of section 177 of the 1993 Act (reinsurance to close) there shall be inserted the following subsection— (5) This section also applies in any case where the member to whom the premium is payable is a corporate member within the meaning of Chapter V of Part IV of the Finance Act 1994. (2) This paragraph has effect for the underwriting year 1993 and subsequent underwriting years. Stop-loss and quota share insurance 5 (1) In subsection (2) of section 178 of the 1993 Act (stop-loss and quota share insurance)— (a) for the word “him” there shall be substituted the words “ a member ”; and (b) for the word “arose” there shall be substituted the words “ was declared ”. (2) This paragraph has effect as respects insurance money and other amounts payable in respect of losses declared in the underwriting year 1997 or subsequent underwriting years. Cessation etc. 6 (1) In section 179 of the 1993 Act (cessation: final year of assessment), subsection (3) and, in subsection (2), the words “to subsection (3) below and” shall cease to have effect. (2) After that section there shall be inserted the following section— Death of member. 179A (1) This section applies where a member ceases to carry on his underwriting business by reason of death. (2) For the purposes of assessing the profits of the member’s underwriting business, the member shall be treated as having died at the end of the year of assessment which corresponds to the underwriting year immediately preceding that in which he actually died. (3) For the purposes of the Income Tax Acts— (a) the carrying on of the member’s underwriting business by his personal representatives shall not be treated as a change in the persons engaged in the carrying on of that business; and (b) subject to the provisions of any regulations made by the Board, the business shall be treated as continuing until the member’s deposit at Lloyd’s is paid over to his personal representatives. (3) This paragraph has effect in any case where the member dies after the end of the year 1993-94. Regulations 7 (1) In section 182 of the 1993 Act (regulations), subsections (2) to (4) shall cease to have effect. (2) This paragraph has effect for the year 1997-98 and subsequent years of assessment. Interpretation 8 (1) In subsection (1) of section 184 of the 1993 Act (interpretation and commencement)— (a) in the definition of “ancillary trust fund”, the words “or the managing agent of a syndicate of which he is a member” shall cease to have effect; and (b) in the definition of “member”, for the words “a member of Lloyd’s who” there shall be substituted the words “ an individual who is a member of Lloyd’s and ”. (2) In subsection (2)(c) of that section, for the word “agent”, in both places where it occurs, there shall be substituted the words “ managing agent ”. Assessment and collection of tax 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Special reserve funds 12 (1) In Schedule 20 to the 1993 Act (special reserve funds), in paragraph 1(1) (preliminary), after the definition of “overall premium limit” there shall be inserted the following definition— “payment”, unless the contrary intention appears, means a payment in money; . (2) In paragraph 7(2) of that Schedule (payments out of fund on cessation), for the words “money’s worth” there shall be substituted the words “ in assets forming part of the fund ”. (3) This paragraph has effect for the year 1992-93 and subsequent years of assessment. 13 (1) For paragraph 8 of that Schedule (entitlement of member for tax purposes) there shall be substituted the following paragraph— 8 (1) Subject to sub-paragraph (2) below, a member shall be treated for the purposes of the Income Tax Acts and the Gains Tax Acts as absolutely entitled as against the trustees to the assets forming part of his special reserve fund. (2) Where an asset is disposed of by a member to the trustees of his special reserve fund, nothing in sub-paragraph (1) above shall affect the operation of the Gains Tax Acts in relation to that disposal. (2) This paragraph has effect for the year 1994-95 and subsequent years of assessment. 14 (1) In sub-paragraphs (1) to (4) of paragraph 10 of that Schedule (tax consequences of payments into and out of fund), for the word “corresponding”, in each place where it occurs, there shall be substituted the word “ relevant ”. (2) After sub-paragraph (4) of that paragraph there shall be inserted the following sub-paragraph— (5) In this paragraph “the relevant underwriting year”, in relation to a year of assessment, means the underwriting year next but two before its corresponding underwriting year. (3) Sub-paragraphs (1) and (2) above do not have effect for the years 1994-95, 1995-96 and 1996-97, but in relation to those years that Schedule shall have effect as if paragraph 10 were omitted. 15 (1) In sub-paragraph (2) of paragraph 11 of that Schedule (tax consequences of cessation), for the words “the final year of assessment” there shall be substituted the words “ the relevant year of assessment ” and for the words “the relevant year” there shall be substituted the words “ the relevant underwriting year ”. (2) In sub-paragraphs (3) and (4) of that paragraph, for the words “the relevant year” there shall be substituted the words “ the penultimate underwriting year ”. (3) For sub-paragraph (5) of that paragraph there shall be substituted the following sub-paragraph— (5) In this paragraph, subject to the provisions of any regulations made by the Board— “the penultimate underwriting year” means the underwriting year immediately preceding that in which the member’s deposit at Lloyd’s is paid over to him or his personal representatives or assigns; “the relevant underwriting year” means— in the case of a member who dies before his deposit at Lloyd’s is paid over to him or his assigns, the underwriting year immediately preceding that corresponding to the relevant year of assessment; and in any other case, the underwriting year immediately preceding that in which his deposit at Lloyd’s is paid over to him or his assigns; “the relevant year of assessment” means— in the case of a member who dies before his deposit at Lloyd’s is paid over to him or his assigns, the year of assessment at the end of which he is treated, by virtue of section 179A(2) of this Act, as having died; and in any other case, his final year of assessment. 16 (1) In sub-paragraph (1) of paragraph 13 of that Schedule (winding up of old-style funds), the words from “and a transfer” to the end shall cease to have effect. (2) After sub-paragraph (5) of that paragraph there shall be inserted the following sub-paragraph— (6) A transfer or payment under this paragraph of an amount of capital shall be in money or in assets forming part of the fund or both, as the member may direct. (3) This paragraph has effect for the year 1992-93 and subsequent years of assessment.

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SCHEDULE 22 Supplementary provisions as to elections by reference to pipe-line usage

Sections 231 and 234. Part I Procedure for and in connection with an election The election 1 (1) An election shall be made by serving it on the Board, shall be in such form as may be prescribed by the Board and shall contain such information as the Board may reasonably require with respect to— (a) the oil field to which the election is to apply, the pipe-line by reference to which the election is being made and whether the election is to be limited in accordance with subsection (6) of section 231 of this Act; (b) all other assets which, if the election were to be accepted, would at the date of the election be assets to which the election applies; (c) the electing participator’s interest in those assets; (d) the sums to which, if the election is accepted, it is reasonable to expect that section 233 of this Act will apply and the sources, quantities and descriptions of oil which will give rise to those sums; (e) any other oil field (whether taxable or non-taxable) in connection with which any of the assets referred to in paragraph (b) above is or is expected to be used or in respect of which services or other business facilities in connection with that use are or are expected to be provided; and (f) the initial usage fraction and the amounts which make up the numerator and the denominator of that fraction. (2) The reference in sub-paragraph (1)(e) above to an oil field includes a reference to any area which the electing participator expects might be determined as an oil field under Schedule 1 to the principal Act. (3) An election shall include a declaration that it is correct and complete to the best of the knowledge and belief of the electing participator. (4) An election shall be irrevocable. Conditions for acceptance of an election 2 (1) The Board shall reject an election if they are not satisfied— (a) that the conditions relating to the pipe-line in paragraphs (a) to (d) of subsection (1) or in subsection (3) of section 231 of this Act are fulfilled; or (b) that the conditions relating to the oil field or the participator in subsection (2) of that section are fulfilled; or (c) that, if the election were to be accepted, the assets to which the election would apply (having regard to any limitation under subsection (6) of that section) have the capacity and characteristics, and are otherwise suitable, to handle the quantities and descriptions of oil specified in accordance with paragraph 1(1)(d) above. (2) Subject to sub-paragraph (3) below, the Board shall also reject an election if it appears to them— (a) that any of the information required to be contained in the election by virtue of paragraph 1(1) above is incorrect; or (b) that, after receiving notice in writing from the Board, the electing participator has failed to furnish to the Board on or before the specified date any information which the Board have reasonably required either with respect to the matters specified in paragraph 1(1) above or for the purpose of satisfying themselves as to the matters referred to in sub-paragraph (1) above. (3) Before rejecting an election under sub-paragraph (2)(a) above the Board may, if they think fit, by notice in writing give the electing participator an opportunity to correct any error in the information and, if he does so, the information shall then be treated as having been provided in the correct form. (4) In sub-paragraph (2)(b) above “the specified date” means such date as may be specified in the notice concerned, being a date not earlier than one month after the date on which the notice was given. (5) A notice under sub-paragraph (2)(b) above shall be given within the period of three months beginning on the date on which the election was received by the Board. Notice of acceptance or rejection 3 (1) Notice of the acceptance or rejection of an election shall be served on the electing participator before the expiry of the period of three months beginning on whichever of the following dates is the later or latest— (a) the date on which the election was received by the Board; (b) if a notice was given under paragraph 2(2)(b) above relating to the election, the date or, as the case may be, the last date which is the specified date, as defined in paragraph 2(4) above, in relation to such a notice; (c) if a notice was given under paragraph 2(3) above relating to the election, the date on which that notice was given. (2) If no such notice of acceptance or rejection is so served, the Board shall be deemed to have accepted the election and to have served notice of their acceptance on the last day of the period referred to in sub-paragraph (1) above. Appeals 4 (1) Where the Board serve notice on an electing participator under paragraph 3 above rejecting an election, he may appeal ... against the notice. (2) An appeal under sub-paragraph (1) above shall be made by notice of appeal served on the Board within thirty days beginning on the date of the notice in respect of which the appeal is brought. (3) Where, at any time after the service of notice of appeal under this paragraph and before the determination of the appeal by the tribunal , the Board and the appellant agree that the notice in respect of which the appeal is brought should stand or that the election to which it related should be accepted with or without modification, the same consequences shall ensue as if the tribunal had determined the appeal to that effect. (4) On the hearing of an appeal under this paragraph, the tribunal shall either dismiss the appeal or allow it; and if the tribunal allows the appeal, the tribunal shall direct either— (a) that the election shall be accepted; or (b) that the election shall have effect subject to such modifications as may be specified in the direction and shall be accepted in its modified form. (5) In an appeal under sub-paragraph (1)— (a) paragraphs 14(2), (8) and (11) and 14A to 14I of Schedule 2 to the principal Act shall apply as they apply in relation to an appeal against an assessment or determination made under that Act subject to any necessary modifications including the following; (b) any reference in those paragraphs to an agreement under paragraph 14(9) shall be construed as a reference to an agreement under sub-paragraph (3) above. (6) Any reference in this Chapter to an election accepted by the Board shall be construed as including a reference to an election accepted in pursuance of an appeal under this paragraph. Information to the responsible person 5 (1) Within thirty days of the relevant date, the electing participator shall furnish to the responsible person for the field to which the election applies (or would apply if the election were accepted) a copy of— (a) any election made by him; and (b) any notice under paragraph 3 above accepting or rejecting the election. (2) For the purposes of sub-paragraph (1) above, the relevant date is— (a) in the case of an election made by the electing participator, the date on which it was served on the Board; and (b) in the case of a notice under paragraph 3 above, the date on which the electing participator received it. (3) In a case where paragraph 9 below applies (or would apply if an election were accepted) sub-paragraphs (1) and (2) above shall require the electing participator additionally to furnish copies of the same documents to the responsible person for any non-chargeable field mentioned in sub-paragraph (3) of that paragraph. (4) In a case where paragraph 11 below applies (or would apply if an election were accepted) sub-paragraphs (1) and (2) above shall require the electing participator additionally to furnish copies of the same documents to the old participator referred to in that paragraph. Penalties for incorrect information 6 Where a participator fraudulently or negligently furnishes any incorrect information or makes any incorrect declaration in or in connection with an election he shall be liable to a penalty not exceeding— (a) in the case of negligence, £50,000, and (b) in the case of fraud, £100,000. Re-opening election decisions on grounds of incorrect information 7 (1) Without prejudice to paragraph 6 above, this paragraph applies if, at any time after notice of the acceptance of an election has been served by the Board, it appears to the Board that, as a result of an error in the information furnished to the Board, the election should not have been accepted. (2) If, in a case where this paragraph applies, either— (a) the error was attributable, in whole or in part, to the fraudulent or negligent conduct of the electing participator or a person acting on his behalf, or (b) on the error coming to the notice of the electing participator, or a person acting on his behalf, the error was not remedied without unreasonable delay, the Board may serve on the electing participator and on the responsible person for the field to which the election applies a notice rescinding the acceptance and stating what appears to the Board to be the correct position. (3) When a notice under sub-paragraph (2) above becomes effective, the election shall be treated as having been rejected in accordance with paragraph 3 above. (4) If, in a case where this paragraph applies,— (a) neither of the conditions in sub-paragraph (2) above is fulfilled, and (b) the Board are of the opinion that, if the correct information had been furnished, the election could have been accepted, the election shall be treated as having been made and accepted subject to such modifications (being modifications to correct the effect of the error) as the Board may direct, by notice served on the electing participator and on the responsible person for the field to which the election applies. (5) A notice served under sub-paragraph (2) or sub-paragraph (4) above shall become effective either— (a) on the expiry of the period during which notice of appeal against the notice may be served on the Board under paragraph 8 below without such notice of appeal being served; or (b) where such notice of appeal is served, when the notice can no longer be varied or quashed by the tribunal or by the order of any court. Appeals against re-opening notices 8 (1) This paragraph applies where the Board serve notice under sub-paragraph (2) or sub-paragraph (4) of paragraph 7 above; and in the following provisions of this paragraph such a notice is referred to as a “re-opening notice”. (2) The electing participator may, by notice of appeal served on the Board within thirty days beginning on the date of the re-opening notice, appeal ... against the re-opening notice. (3) A notice of appeal under sub-paragraph (2) above shall state the grounds on which the appeal is brought. (4) An appeal under this paragraph may at any time before it is notified to the tribunal be abandoned by notice served on the Board by the electing participator. (5) A re-opening notice may be withdrawn at any time before it becomes effective. (6) In any case where— (a) the electing participator serves notice of appeal against a re-opening notice served under sub-paragraph (4) of paragraph 7 above, and (b) before the appeal is determined by the tribunal , the Board and the electing participator agree as to the modifications necessary to correct the effect of the error concerned, the re-opening notice shall take effect subject to such modifications as may be necessary to give effect to that agreement; and thereupon the appeal shall be treated as having been abandoned. (7) Subject to sub-paragraph (8) below, on an appeal against a re-opening notice the tribunal may vary the notice, quash the notice or dismiss the appeal; and the notice may be varied whether or not the variation is to the advantage of the electing participator. (8) The provisions relating to the variation of a re-opening notice referred to in sub-paragraph (7) above shall not apply in respect of any such notice served under sub-paragraph (2) of paragraph 7 above. (9) In an appeal under sub-paragraph (2)— (a) paragraphs 14A to 14I of Schedule 2 to the principal Act shall apply as they apply in relation to an appeal against an assessment or determination made under that Act subject to any necessary modifications including the following; (b) any reference in those paragraphs to an agreement under paragraph 14(9) shall be construed as a reference to an agreement under sub-paragraph (6) above. Part II Supplementary provisions Assets used in connection with more than one taxable field 9 (1) The provisions of this paragraph apply where— (a) an election is in operation; and (b) any of the assets to which the election applies is used or expected to be used in connection with two or more taxable fields. (2) Any reference in this paragraph to allowable expenditure has the same meaning as in Part II of Schedule 1 to the 1983 Act and is a reference to expenditure incurred on an asset to which the election applies. (3) Sub-paragraph (4) below applies if, by virtue of paragraph 5 of Schedule 1 to the 1983 Act (which, in a case falling within this paragraph, provides for the apportionment of allowable expenditure between two or more fields), any part of the allowable expenditure is apportioned to a taxable field (a “non-chargeable field”) other than the field to which the election applies. (4) Where this sub-paragraph applies, then, so far as concerns the electing participator (as a participator in a non-chargeable field), section 232 of this Act shall apply in relation to that part of the allowable expenditure which is apportioned to the non-chargeable field as it applies in relation to the part apportioned to the field to which the election applies. Transfer of interests 10 (1) If, while an election is in operation, the electing participator (or a person who is treated as an electing participator by virtue of this paragraph) transfers the whole or part of his interest in the field to which the election applies, then, so far as concerns that interest or part, the new participator shall thereafter be treated as the electing participator for the purposes of this Chapter, other than paragraph 11 below, and, in particular,— (a) any restriction on the amount of expenditure allowed or allowable by virtue of section 232 of this Act shall continue to apply to any expenditure relief transferred to the new participator under paragraph 6 of Schedule 17 to the Finance Act 1980; and (b) any relief from tax under section 233 of this Act shall apply in relation to the new participator as it applied in relation to the old participator. (2) If, in a case where paragraph 9 above applies, the electing participator, as a participator in the non-chargeable field (within the meaning of that paragraph) transfers the whole or part of his interest in that field, sub-paragraph (1) above (except paragraph (b)) shall apply in relation to that transfer as if— (a) any reference to the field to which the election applies were a reference to the non-chargeable field; and (b) any reference to the electing participator were a reference to him in his capacity as a participator in the non-chargeable field. (3) In sub-paragraph (1) above the expressions “the old participator” and “the new participator” have the same meaning as in Schedule 17 to the Finance Act 1980. 11 (1) This paragraph applies in any case where— (a) the electing participator acquired the whole or any part of his interest in the field to which the election applies as a result of a transfer to which Part I of Schedule 17 to the Finance Act 1980 applies (so that the electing participator is the new participator); and (b) some or all of the relief in respect of any expenditure incurred (before the transfer) on any asset to which the election applies did not fall to be transferred to the electing participator (whether by virtue of paragraph 6 or paragraph 7 of that Schedule). (2) With regard to so much of the expenditure referred to in sub-paragraph (1)(b) above as falls to be taken into account under paragraph (b)(i) or paragraph (c)(i) of subsection (9) of section 2 of the principal Act in computing, for any chargeable period ending before the transfer period, the assessable profit or allowable loss accruing to the old participator or any predecessor of his, section 232 of this Act shall apply in the case of the old participator or, as the case may be, his predecessor as it is expressed to apply in the case of the electing participator. (3) If, as a result of the operation of sub-paragraph (2) above, there is a reduction in the amount which would otherwise be the accumulated capital expenditure of the old participator at the end of the last chargeable period before the transfer period, paragraph 8 of Schedule 17 to the Finance Act 1980 shall be taken to have transferred a correspondingly reduced amount to the electing participator. (4) In this paragraph— (a) the expressions “the old participator”, “the new participator” and “the transfer period” have the same meaning as in Schedule 17 to the Finance Act 1980; and (b) any reference to a predecessor of the old participator is a reference to a person who (before the transfer referred to in sub-paragraph (1)(a) above) transferred the whole or part of his interest in the field to which the election applies either to the old participator or to another person who is a predecessor in title of the old participator in respect of that interest or part. Transfer of elected assets 12 (1) This paragraph applies if there is a disposal of an asset which, immediately before the disposal or at an earlier time, was an asset to which an election applies; and in this paragraph— (a) “the asset transferred” means the asset so disposed of; (b) “the vendor” means the electing participator or other person by whom the asset is disposed of. (2) Where a person has incurred expenditure on the acquisition of a transferred asset, he shall be treated for the purposes of the expenditure relief provisions as having incurred that expenditure only to the extent that it does not exceed the amount which, having regard to section 232 of this Act or the previous operation of this paragraph, was (in the case of the vendor) allowable under those provisions immediately before the disposal in respect of his expenditure on the asset. (3) Any expenditure incurred on the asset after the disposal shall be left out of account for the purposes of the expenditure relief provisions. Restriction of relief for expenditure incurred after 30th November 1993 and before the date of an election 13 (1) This paragraph applies if, after 30th November 1993 and before the date of an election, expenditure was incurred by the electing participator under a contract— (a) for the acquisition from any other person of, or of an interest in, an asset to which the election applies; or (b) for the provision by any other person of services or other business facilities of whatever kind in connection with the use of an asset to which the election applies. (2) If, in a case where this paragraph applies, the other person referred to in paragraph (a) or paragraph (b) of sub-paragraph (1) above (“the contractor”) has performed his obligations by entering into one or more further contracts, the contractor shall be treated for the purposes of subsection (2) of section 191 of the Finance Act 1993 (time when expenditure is incurred) as having performed his obligations under the contract only to the extent that, at that time, the asset or interest in question has been acquired by or, as the case may be, the services or other business facilities have been provided to, the electing participator.

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SCHEDULE 23 Amendments of the principal Act relating to valuation of light gases

Section 236. 1 (1) In section 2 (assessable profits and allowable losses), in subsection (5) (amounts to be included in calculation of gross profit or loss) in each of paragraphs (b) and (c), after the word “oil”, in the first place where it occurs, there shall be inserted “ (not being light gases) ” and after paragraph (c) there shall be inserted— (ca) the market value, ascertained in accordance with paragraph 3A of Schedule 3 to this Act, of so much of any light gases so won and disposed of by him otherwise than in sales at arm’s length as was delivered by him in the period; and (cb) the market value, ascertained in accordance with paragraph 3A of Schedule 3 to this Act, of so much of any light gases so won as was relevantly appropriated by him in the period without being disposed of; and . (2) In subsection (9) of that section (amounts to be taken into account in determining amount of debit or credit in respect of expenditure), in paragraph (a)— (a) in sub-paragraph (i) the words “or, as the case may be” shall be omitted; (b) in that sub-paragraph after the words “delivery was made” there shall be inserted the words “ or (in the case of light gases) its market value as determined in accordance with paragraph 3A of Schedule 3 to this Act, as the case may require ”; and (c) at the end of sub-paragraph (ii) there shall be inserted the words “ or (in the case of light gases) the market value as determined in accordance with paragraph 3A of Schedule 3 to this Act ”. 2 In Schedule 2 (management and collection of PRT), in paragraph 2(2) (returns by participators), in paragraph (a)(iii) after the words “delivery was made” and in paragraph (b)(ii) after the word “made” there shall be inserted the words “ or (in the case of light gases) the market value as determined in accordance with paragraph 3A of Schedule 3 to this Act ”. 3 (1) In Schedule 3 (miscellaneous provisions relating to PRT), in paragraph 2 (definition of market value of oil)— (a) at the beginning of sub-paragraph (1) there shall be inserted the words “ Except in the case of light gases ”; and (b) at the end of that sub-paragraph there shall be added the words “ and, accordingly, references in the following provisions of this paragraph to oil do not apply to light gases ”. (2) In paragraph 2A of that Schedule (definition of market value of oil consisting of or including gas), after sub-paragraph (1) there shall be inserted the following sub-paragraph— (1A) Sub-paragraphs (2) and (3) below also apply where the market value of any light gases falls to be ascertained under paragraph 3A below. (3) In sub-paragraph (2) of paragraph 2A, after the words “paragraph 2 above”, in each place where they occur, there shall be inserted “ or, as the case may require, sub-paragraph (2)(b) of paragraph 3A below ”. (4) In sub-paragraph (3) of paragraph 2A, after the words “paragraph 2”, in the first place where they occur, there shall be inserted “ or, as the case may require, in accordance with paragraph 3A below ”. (5) Sub-paragraph (4) of paragraph 2A shall be omitted. 4 After paragraph 3 of Schedule 3 (aggregate market value of oil) there shall be inserted— Definition of market value of light gases 3A (1) The market value of any light gases for the purposes of this Part of this Act is the price at which, having regard to all the circumstances relevant to the disposal or appropriation in question, light gases of that kind might reasonably have been expected to be sold under a contract of sale satisfying the conditions specified in sub-paragraph (2) below. (2) The conditions referred to in sub-paragraph (1) above are that— (a) the contract is for the sale of the gases at arm’s length to a willing buyer; (b) the contract requires the gases to have been subjected to appropriate initial treatment before delivery; and (c) the contract requires the gases to be delivered— (i) in the case of gases extracted in the United Kingdom, at the place of extraction; or (ii) in the case of gases extracted from strata in the sea bed and subsoil of the territorial sea of the United Kingdom or of a designated area, at the place in the United Kingdom or another country at which the seller could reasonably be expected to deliver the gases or, if there is more than one such place, the one nearest to the place of extraction. (3) If the circumstances referred to in sub-paragraph (1) above are such that the price referred to in that sub-paragraph might reasonably be expected to include— (a) any such payments as are referred to in subsection (2) of section 114 of the Finance Act 1984 (treatment of certain payments relating to gas sales), or (b) any capacity payments, as defined in subsection (5) of that section, section 114 of the Finance Act 1984 shall apply accordingly in relation to the notional contract specified in sub-paragraph (1) above as it applies in relation to an actual contract. (4) This paragraph has effect subject to sub-paragraphs (2) and (3) of paragraph 2A above.

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SCHEDULE 24 Provisions relating to the Railways Act 1993

Section 252. Interpretation 1 (1) In this Schedule— . . . “the Board” means the British Railways Board; “the Capital Allowances Act” means the Capital Allowances Act 2001 and includes, where the context admits, enactments which under the Taxes Act 1988 are to be treated as contained in the Capital Allowances Act 2001; “fixture” has the same meaning as it has in Chapter 14 of Part 2 of the Capital Allowances Act; “franchise company” has the meaning given by section 85(8) of the Railways Act 1993; “the Franchising Director” means the Director of Passenger Rail Franchising; “the Gains Act” means the Taxation of Chargeable Gains Act 1992; “predecessor”, in relation to any relevant transfer, means the body from which the property, rights or liabilities in question are transferred by virtue of the restructuring scheme in question; “property”, “rights” and “liabilities” have the same meaning as they have in Part II of the Railways Act 1993; “publicly owned railway company” has the same meaning as it has in the Railways Act 1993; “relevant transfer” means a transfer of any property, rights or liabilities by virtue of a restructuring scheme; “restructuring scheme” means a section 85 transfer scheme made by, or pursuant to a direction of, the Secretary of State, if and to the extent that the transfer scheme provides for the transfer of property, rights or liabilities from— the Board, a wholly owned subsidiary of the Board, a publicly owned railway company, or a company which is wholly owned by the Franchising Director, to any other body falling within paragraphs (a) to (d) above; “section 85 transfer scheme” means a scheme made under or by virtue of section 85 of the Railways Act 1993; “subsidiary” has the meaning given by section 736 of the Companies Act 1985; “successor company” has the same meaning as it has in Part II of the Railways Act 1993; “transfer date” shall be construed in accordance with section 85(6) of the Railways Act 1993; “transfer scheme” means a scheme made under or by virtue of section 85 or 86 of the Railways Act 1993; “transferee”, in relation to a relevant transfer, means the body to which the property, rights or liabilities in question are transferred by virtue of the restructuring scheme in question; “wholly owned subsidiary” has the meaning given by section 736 of the Companies Act 1985. (2) Section 151(2) and (3) of the Railways Act 1993 (companies wholly owned by the Crown or the Franchising Director) shall have effect for the purposes of this Schedule as it has effect for the purposes of that Act. (3) Any reference in this Schedule to “assignment” shall be construed in Scotland as a reference to “assignation”. (4) This Schedule— (a) so far as it relates to income tax, shall be construed as one with the Income Tax Acts, (b) so far as it relates to corporation tax, shall be construed as one with the Corporation Tax Acts, and (c) so far as it relates to capital allowances, shall be construed as one with the Capital Allowances Act. Chargeable gains: transfer to be without gain or loss 2 (1) For the purposes of the Gains Act, where there is a relevant transfer, the disposal of property, rights and liabilities which is constituted by that transfer shall, subject to the following provisions of this Schedule, be taken, in relation to the transferee as well as the predecessor, to be for a consideration such that no gain or loss accrues to the predecessor. (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3) Section 171(1) of the Gains Act (which makes provision in relation to the disposal of assets from one member of a group of companies to another member of the group) shall not apply where the disposal in question is a relevant transfer. Chargeable gains: receipt of compensation or insurance policies 3 (1) Subsection (4) of section 23 of the Gains Act (adjustments where compensation or insurance money used for purchase of replacement asset) shall have effect in accordance with sub-paragraph (3) below in any case where— (a) there is a relevant transfer such that— (i) any capital sum received by the predecessor by way of compensation for the loss or destruction of any asset, or under a policy of insurance of the risk of the loss or destruction of any asset, becomes available to the transferee; or (ii) any right of the predecessor to receive such a sum is transferred to the transferee, and the transferee receives that sum; and (b) the transferee acquires an asset in circumstances where— (i) had there been no such relevant transfer, and (ii) had the predecessor acquired the asset by the application of that sum, the predecessor would be treated for the purposes of that subsection as having so acquired the asset in replacement for the asset lost or destroyed. (2) Subsection (5) of that section (adjustments where a part of any compensation or insurance money is used for the purchase of a replacement asset) shall have effect in accordance with sub-paragraph (3) below in any case where— (a) there is a relevant transfer such that— (i) any capital sum received by the predecessor by way of compensation for the loss or destruction of any asset, or under a policy of insurance of the risk of the loss or destruction of any asset, becomes available to the transferee; or (ii) any right of the predecessor to receive such a sum is transferred to the transferee, and the transferee receives that sum; and (b) the transferee acquires an asset in circumstances where— (i) had there been no such relevant transfer, and (ii) had the predecessor acquired the asset by the application of all of that sum except for a part which was less than the amount of the gain (whether all chargeable gain or not) accruing on the disposal of the asset lost or destroyed, the predecessor would be treated for the purposes of that subsection as having so acquired the asset in replacement for the asset lost or destroyed. (3) In a case falling within sub-paragraph (1) or (2) above, subsection (4) or, as the case may be, subsection (5) of section 23 of the Gains Act shall have effect as if the transferee and the predecessor were the same person, except that— (a) in a case falling within sub-paragraph (1)(a)(i) or (2)(a)(i) above— (i) any claim under the subsection in question must be made by the predecessor and the transferee; and (ii) any adjustment to be made in consequence of paragraph (a) of that subsection shall be made for the purposes only of the taxation of the predecessor; and (b) in a case falling within sub-paragraph (1)(a)(ii) or (2)(a)(ii) above— (i) any claim under the subsection in question must be made by the transferee; and (ii) any adjustment to be made in consequence of paragraph (a) of that subsection shall be made for the purposes only of the taxation of the transferee. Chargeable gains: section 30 of the Gains Act 4 (1) Nothing in Part II or III of the Railways Act 1993, and no instrument or agreement made, or other thing done, under or by virtue of either of those Parts, shall be regarded as a scheme or arrangement for the purposes of section 30 of the Gains Act (value-shifting). (2) In any case where— (a) an asset which is the subject of a relevant transfer or qualifying disposal has previously been the subject of a scheme or arrangements falling within subsection (1) of that section, (b) in consequence, subsection (5) of that section (consideration on disposal to be treated as increased for certain purposes) would, apart from sub-paragraph (3) below, have had effect in relation to the consideration for the relevant transfer or qualifying disposal, and (c) the consideration for the relevant transfer or qualifying disposal falls to be determined under paragraph 2 above or paragraph 7(2), 11(3) or 25(2) below, sub-paragraph (3) below shall apply. (3) Where this sub-paragraph applies— (a) the said subsection (5) shall not have effect in relation to the consideration for the relevant transfer or qualifying disposal; but (b) on the first subsequent disposal of the asset which is neither a relevant transfer or qualifying disposal nor a group disposal— (i) that subsection shall have effect in relation to the consideration for that disposal (whether or not it would otherwise have done so); and (ii) the increase that falls to be made under that subsection shall be so calculated as to include any increase which would, but for paragraph (a) above, have fallen to be made in relation to the relevant transfer or qualifying disposal. (4) In this paragraph— “group disposal” means a disposal which falls to be treated by virtue of section 171(1) of the Gains Act as made for a consideration such that no gain or loss accrues to the person making the disposal; “qualifying disposal” means— a disposal to which paragraph 7(2) below applies; or a disposal falling within paragraph 11(3) or 25(2) below. Chargeable gains: section 41 of the Gains Act 5 Subsection (1) of section 174 of the Gains Act (which applies section 41 of that Act to cases where assets have been acquired without gain or loss) shall have effect, without prejudice to paragraph 2 above or paragraph 7(2), 11(3) or (4) or 25(2) below, where there has been— (a) a relevant transfer, (b) a disposal to which paragraph 7(2) below applies, or (c) a disposal falling within paragraph 11(3) or (4) or 25(2) below, as if the asset to which the transfer or disposal relates had thereby been transferred and acquired in relevant circumstances, within the meaning of that subsection. Chargeable gains: roll-over relief 6 (1) Subject to the following provisions of this paragraph, where any asset, or any interest in an asset, is the subject of a relevant transfer, sections 152 to 160 of the Gains Act (roll-over relief on replacement of business assets) shall have effect as if— (a) the asset or interest had been acquired by the transferee— (i) at the time at which, and for the consideration for which, the predecessor acquired it; and (ii) for the purpose of the asset’s use in a trade carried on by the transferee (and not wholly or partly for the purpose of realising a gain from the disposal of the asset or interest), but only to the extent that the predecessor’s acquisition was for the purpose of the asset’s use in a trade carried on by him (and not wholly or partly for the purpose of realising a gain from the disposal of the asset or interest); (b) throughout the period during which the asset or interest was owned by the predecessor, it had been owned by the transferee; and (c) to the extent that the predecessor— (i) used the asset, or (ii) in the case of an asset falling within head A of Class 1 in section 155 of that Act, used and occupied the asset, during that period for the purposes of a trade carried on by him, the transferee had used or, as the case may be, used and occupied the asset for the purposes of a trade carried on by him. (2) In any case where— (a) a held-over gain would, but for the provisions of section 154 of the Gains Act (depreciating assets), have been carried forward to a depreciating asset, and (b) that asset is the subject of a relevant transfer, that section shall have effect as if the gain had accrued to, and the claim for it to be held over had been made by, the transferee and as if the predecessor’s acquisition of the depreciating asset had been the transferee’s acquisition of that asset. (3) Where an asset, or an interest in an asset, is the subject of a relevant transfer, the predecessor shall not be entitled at any time after the coming into force of the relevant transfer to make any claim under section 152 or 153 of the Gains Act in respect of his acquisition of the asset or interest. (4) Where an asset, or an interest in an asset, is the subject of a relevant transfer, the transferee shall not, by virtue of any provision of this Schedule, be treated for the purposes of sections 152 to 154 of the Gains Act as having applied the whole or any part of the consideration for any disposal— (a) in acquiring the asset or interest by virtue of the relevant transfer; or (b) in acquiring the asset or interest as postulated in sub-paragraph (1)(a) above, if the predecessor has made a claim under section 152 or 153 of that Act in respect of his acquisition of the asset or interest. (5) Without prejudice to paragraph 1(4)(b) above, expressions used in sub-paragraph (2) above and in section 154 of the Gains Act have the same meaning in that sub-paragraph as they have in that section. Chargeable gains: agreements and instruments by virtue of section 91(1)(c) of the Railways Act 1993 7 (1) Sub-paragraph (2) below applies to any disposal effected pursuant to an obligation imposed by a section 85 transfer scheme by virtue of section 91(1)(c) of the Railways Act 1993 (obligations to enter into agreements or execute instruments) if the person making the disposal is— (a) the Board, (b) a wholly owned subsidiary of the Board, (c) a publicly owned railway company, or (d) a company which is wholly owned by the Franchising Director, and the person to whom the disposal is made is either a person falling within paragraphs (a) to (d) above or the Franchising Director. (2) A disposal to which this sub-paragraph applies shall be taken for the purposes of corporation tax on chargeable gains, in relation to the person to whom the disposal is made as well as the person making the disposal, to be effected for a consideration such that no gain or loss accrues to the person making the disposal. (3) Section 171(1) of the Gains Act (transfers within a group) shall not apply where the disposal in question is one to which sub-paragraph (2) above applies. (4) Section 17 of that Act (disposals and acquisitions treated as made at market value) shall not have effect in relation to a disposal or the corresponding acquisition if— (a) the disposal is effected pursuant to an obligation imposed by a section 85 transfer scheme by virtue of section 91(1)(c) of the Railways Act 1993, (b) the person making the disposal is either a person falling within paragraphs (a) to (d) of sub-paragraph (1) above or the Franchising Director, and (c) the person making the corresponding acquisition is neither a person falling within those paragraphs nor the Franchising Director, unless the person making the disposal is connected with the person to whom the disposal is made. (5) In this paragraph, “the corresponding acquisition”, in the case of any disposal, means the acquisition made by the person to whom the disposal is made. Chargeable gains: group transactions 8 (1) For the purposes of section 179 of the Gains Act (company ceasing to be a member of a group), where any company (“the degrouped company”) ceases, by virtue of a qualifying transaction, to be a member of a group of companies, the degrouped company shall not, by virtue of that qualifying transaction, be treated under that section as having sold, and immediately reacquired, any asset acquired from a company which was at the time of acquisition a member of that group. (2) Where sub-paragraph (1) above applies in relation to any asset, section 179 of the Gains Act shall have effect on the first subsequent occasion on which the degrouped company ceases to be a member of a group of companies (the “subsequent group”), otherwise than by virtue of a qualifying transaction, as if both the degrouped company and the company from which the asset was acquired had been members of the subsequent group at the time of acquisition. (3) Where, disregarding any preparatory transactions, a company would be regarded for the purposes of section 179 of the Gains Act (and, accordingly, of this paragraph) as ceasing to be, or becoming, a member of a group of companies by virtue of a qualifying transaction, it shall be regarded for those purposes as so doing by virtue of the qualifying transaction and not by virtue of any preparatory transactions. (4) In this paragraph— “preparatory transaction” means anything done under or by virtue of Part II of the Railways Act 1993 for the purpose of initiating, advancing or facilitating the qualifying transaction in question; “qualifying transaction” means— a relevant transfer; any other transfer or disposal under or by virtue of section 85, 88(6) or (7) or 89 of the Railways Act 1993. (5) Expressions used in this paragraph and in section 179 of the Gains Act have the same meaning in this paragraph as they have in that section. Chargeable gains: disposal of debts 9 (1) Where by virtue of any relevant transfer— (a) any debt owed to the predecessor is transferred to the transferee, and (b) the predecessor would, apart from this sub-paragraph, be the original creditor in relation to that debt for the purposes of section 251 of the Gains Act (disposal of debts), that Act shall have effect as if the transferee and not the predecessor were the original creditor for those purposes. (2) Where, by virtue of any relevant transfer, any obligations of the predecessor under a guarantee of the repayment of a loan are transferred to the transferee, the transferee shall be treated for the purposes of section 253(4) of the Gains Act (relief for guarantors) as a person who gave the guarantee. (3) In any case where— (a) by virtue of any relevant transfer, a debt owed to the predecessor is transferred to the transferee, (b) that debt is either— (i) a right to the repayment of any amount outstanding as principal on a loan which is a qualifying loan for the purposes of either of sections 253 . . . of the Gains Act (relief for irrecoverable debts owed by traders and payments under guarantees), or (ii) a right to recover any amount paid under a guarantee of the repayment of such a loan or of a loan which would be such a loan but for section 253(1)(c) of that Act (exclusion of debts not on security), and (c) no allowable loss in respect of the amount mentioned in paragraph (b)(i) or (ii) above has been claimed by the predecessor under either of sections 253 . . . of that Act before the coming into force of the relevant transfer, those sections shall have effect with the modifications set out in sub-paragraph (4) below. (4) Those modifications are— (a) that the loan or, as the case may be, the guarantee shall be treated as if it had been made or given by the transferee, and (b) that any payment made under the guarantee by the predecessor shall be treated as if it had been made by the transferee, and those sections shall accordingly have effect as if there had been no assignment of the right to recover the principal of the loan or of any right to recover an amount paid under the guarantee. (5) In any case where— (a) a debt falling within sub-paragraph (3)(b) above is transferred by virtue of a relevant transfer, and (b) before the coming into force of the relevant transfer, the predecessor has claimed a loss in respect of the amount mentioned in sub-paragraph (3)(b)(i) or (ii) above under section 253 . . . of the Gains Act, the relevant transfer shall not be treated as an assignment of the debt for the purposes of those sections and sub-paragraph (2) above shall not have effect in relation to the transferee, so far as relating to the amount mentioned in paragraph (b) above. (6) In any case where— (a) any right to the recovery of an amount falling within subsection (3) of section 253 of the Gains Act (relief in respect of certain irrecoverable loans) is transferred by virtue of a relevant transfer, (b) an allowable loss determined by reference to that amount has been treated under that subsection as accruing to the predecessor, and (c) the whole or any part of that amount is at any time recovered by the transferee or by a company in the same group of companies as the transferee, that Act shall have effect as if a chargeable gain equal to so much of the allowable loss as corresponds to the amount recovered had accrued to the transferee or, as the case may be, to the company in the same group as the transferee. (7) In any case where— (a) any right to the recovery of an amount falling within subsection (4) of section 253 of the Gains Act is transferred by virtue of a relevant transfer, (b) an allowable loss determined by reference to that amount has been treated under that subsection as accruing to the predecessor, and (c) the whole or any part of the amount mentioned in subsection (4)(a), or the whole or any part of the amount of the payment mentioned in subsection (4)(b), of that section is at any time recovered by the transferee or by a company in the same group of companies as the transferee, that Act shall have effect as if a chargeable gain equal to so much of the allowable loss as corresponds to the amount recovered had accrued to the transferee or, as the case may be, to the company in the same group as the transferee. (8) In any case where— (a) any right to recovery of the relevant outstanding amount, as defined in subsection (11) of section 254 of the Gains Act, is transferred by virtue of a relevant transfer, (b) an allowable loss determined by reference to that amount has been treated under subsection (2) of that section (relief for debts on qualifying corporate bonds) as accruing to the predecessor, and (c) the whole or any part of that amount is at any time recovered by the transferee or by a company in the same group of companies as the transferee, that Act shall have effect as if a chargeable gain equal to so much of the allowable loss as corresponds to the amount recovered had accrued to the transferee or, as the case may be, to the company in the same group as the transferee. (9) In any case where sub-paragraph (6), (7) or (8) above applies in relation to an allowable loss, subsections (7) and (8) of section 253 of the Gains Act . . . (which deem a chargeable gain to arise where an amount treated as an allowable loss is recovered by another company in the same group) shall not apply in relation to that allowable loss. (10) Expressions used in this paragraph and in section 253 . . . of the Gains Act have the same meaning in this paragraph as they have in that section. Chargeable gains: assets held before 6th April 1965 10 Schedule 2 to the Gains Act (assets held on 6th April 1965) shall have effect in relation to any assets which vest in the transferee by virtue of a relevant transfer as if— (a) the predecessor and the transferee were the same person; and (b) those assets, to the extent that they were in fact acquired or provided by the predecessor, were acquired or, as the case may be, provided by the transferee. Chargeable gains: miscellaneous disposals and acquisitions 11 (1) In this paragraph, “relevant disposal” means— (a) a disposal by virtue of a section 85 transfer scheme, other than a restructuring scheme, to the extent that the scheme provides for the transfer of property, rights and liabilities of— (i) the Board, (ii) a wholly owned subsidiary of the Board, (iii) a publicly owned railway company, or (iv) a company which is wholly owned by the Franchising Director, to a franchise company or to the Franchising Director; (b) a disposal pursuant to a direction under section 88(6) or (7) or 89 of the Railways Act 1993; (c) a disposal by or pursuant to an agreement or instrument made or executed, transaction effected or direction given under or by virtue of paragraph 2, 3 or 14(2) of Schedule 8 to that Act, in a case where the transfer scheme in question is a section 85 transfer scheme, other than a restructuring scheme; or (d) a disposal pursuant to a requirement imposed under paragraph 7(2)(b) of that Schedule, in a case where the transfer to which that Schedule applies is a transfer by virtue of a section 85 transfer scheme. (2) Subject to sub-paragraph (3) below, section 17 of the Gains Act (disposals and acquisitions treated as made at market value) shall not have effect— (a) in relation to a relevant disposal or the corresponding acquisition, (b) in relation to an acquisition by a franchise company, in a case where the corresponding disposal is a disposal by the Franchising Director by virtue of a section 85 transfer scheme, or (c) in relation to a disposal of a historical record or artefact in accordance with directions under section 125 of the Railways Act 1993 (railway heritage), unless, in a case falling within paragraph (a) or (b) above, the person making the disposal is connected with the person making the acquisition. (3) Where there is a relevant disposal of an asset of— (a) the Board, (b) a subsidiary of the Board, (c) a publicly owned railway company, or (d) a company wholly owned by the Franchising Director, to the Franchising Director or a company wholly owned by the Crown, the disposal shall be taken for the purposes of the Gains Act, in relation to the person making the disposal and, if the disposal is made to a company wholly owned by the Crown, the person to whom the disposal is made, to be for a consideration such that no gain or loss accrues on the disposal. (4) Where there is a disposal of a historical record or artefact in accordance with directions under section 125 of the Railways Act 1993 and the disposal is either— (a) for a consideration not exceeding the sums which are allowable as a deduction under section 38 of the Gains Act (consideration for, and incidental costs of, original acquisition etc), or (b) for no consideration, the disposal shall be taken for the purposes of the Gains Act, in relation to the person to whom the disposal is made as well as the person making the disposal, to be for a consideration such that no gain or loss accrues on the disposal. (5) In this paragraph— “the corresponding acquisition”, in the case of any disposal, means the acquisition made by the person to whom the disposal is made; “the corresponding disposal” in the case of any acquisition, means the disposal to the person by whom the acquisition is made. Transfers of trading stock 12 (1) This paragraph applies in any case where— (a) by virtue of a relevant transfer, any trading stock belonging to a trade carried on by the predecessor (“the predecessor’s trade”) vests in the transferee, and (b) the trading stock is acquired by the transferee as trading stock for the purposes of a trade which he carries on or which he begins to carry on after the relevant transfer (“the transferee’s trade”). (2) Where this paragraph applies, the trading stock in question shall, for the purposes (whether in relation to the predecessor or the transferee) of computing for the purposes of the Corporation Tax Acts the profits of the predecessor’s trade and the transferee’s trade,— (a) be taken to have been both disposed of by the predecessor and acquired by the transferee in the course of those trades and (subject to that) at the time when the transfer comes into force; and (b) be valued in each case as if that disposal and acquisition had been for a consideration which in relation to the predecessor would have resulted in neither a profit nor a loss being brought into account in respect of the disposal in the accounting period of the predecessor which is current at that time. (3) In this paragraph “trading stock” has the same meaning as in section 100 of the Taxes Act 1988. Transfer of rights to receipts 13 Where, by virtue of any relevant transfer, there is transferred any right of the predecessor to receive any amount which is for the purposes of corporation tax— (a) an amount brought into account as a trading receipt of the predecessor for any accounting period ending before the time when the transfer comes into force, or (b) an amount falling to be so brought into account if it is assumed, where it is not the case, that the accounting period of the predecessor current on the day before the transfer comes into force ends immediately before that time, the transfer shall not require any modification of the way in which that amount has been and is to be treated in relation to the predecessor for those purposes or entitle any amount due or paid in respect of that right to be treated as a trading receipt of the transferee for any accounting period. Transfer of liabilities 14 (1) If the whole or any part of the amount of a liability transferred by virtue of a relevant transfer falls, for the purposes of corporation tax,— (a) to be brought into account as deductible in computing the predecessor’s profits, or any description of the predecessor’s profits, for any accounting period ending before the time when the transfer comes into force, or (b) to be so brought into account if it is assumed, where it is not the case, that the accounting period of the predecessor current on the day before the transfer comes into force ends immediately before that time, then the transfer shall not require any modification of the way in which that amount or, as the case may be, that part of that amount has been or is to be treated in relation to the predecessor for those purposes or entitle any amount due or paid in respect of that liability or, as the case may be, the corresponding part of that liability to be deductible in computing the transferee’s profits, or any description of the transferee’s profits, for any accounting period. (2) If and to the extent that the amount of any liability which, in consequence of any relevant transfer, falls to be discharged by the transferee is an amount which would (but for that and any other transfer) have fallen to be deductible in computing the predecessor’s profits, or any description of the predecessor’s profits, for any accounting period beginning with the coming into force of the transfer or at any subsequent time, that amount shall, to that extent,— (a) not be so deductible; but (b) subject to sub-paragraph (3) below, be deductible in computing the transferee’s profits to the same extent as if the transferee had become subject to the obligation in pursuance of which the liability arises or has arisen at the same time and for the same consideration, and otherwise on the same terms and in the same circumstances, as the predecessor; and for the purposes of this sub-paragraph it shall be assumed, where it is not the case, that the accounting period of the predecessor current on the day before the transfer comes into force ends immediately before the coming into force of that transfer. (3) For the purposes of corporation tax, where any relevant transfer has the effect that any liability falls to any extent to be discharged by the transferee instead of by the predecessor, the amounts deductible in computing the transferee’s profits, or any description of the transferee’s profits, for any accounting period shall not include any amount in respect of so much of that liability as falls to be so discharged unless it is an amount which (but for that and any other transfer) would have fallen to be deductible in computing the predecessor’s profits, or any description of the predecessor’s profits, for any accounting period beginning or ending after the coming into force of that transfer. (4) The preceding provisions of this paragraph shall apply in relation to the deduction of charges on income against the total profits of the predecessor or transferee for any period as they apply in relation to the deduction of any amount in the computation for that period of the profits of the predecessor or, as the case may be, of the transferee. (5) For the purposes of Chapter II of Part VI of the Taxes Act 1988 (definition of distributions), where in the case of any relevant transfer any consideration given or treated as given in respect of a security relating to— (a) any liability, or (b) the use of the principal to which any liability, being a liability to interest or an equivalent liability, relates, would fall (apart from this sub-paragraph) to be regarded for those purposes as new consideration received by the predecessor, that consideration shall be treated instead, to the extent that it relates to so much of the liability as falls in consequence of the transfer to be discharged by the transferee, as if it were new consideration received by the transferee. Trading losses 15 (1) Subject to the following provisions of this paragraph, where as a result of a relevant transfer, the predecessor falls to be regarded for the purposes of section 343 of the Taxes Act 1988 (company reconstructions without change of ownership) as ceasing to carry on a trade and the transferee falls to be regarded for the purposes of that section as beginning to carry on that trade— (a) the transferee shall not, by virtue of those matters, be entitled to any relief under section 393(1) (trading losses) of that Act to which it would, apart from this paragraph, have been entitled by virtue of section 343(3) of that Act; and (b) after the coming into force of the relevant transfer, the loss in question shall continue to be regarded for the purposes of the Corporation Tax Acts as a loss incurred in the trade for the time being carried on by the predecessor to the same extent as it would have been so regarded apart from the relevant transfer (and shall be eligible for relief accordingly). (2) The following provisions of this paragraph apply in any case where— (a) a restructuring scheme makes express provision for the transfer from the predecessor to the transferee of the right to obtain tax relief in respect of such an amount of the predecessor’s unrelieved trading losses or unrelieved transferred losses as may be specified in, or determined in accordance with, the scheme; and (b) after the relevant date the transferee carries on, or begins to carry on, any trade (whether or not the trade, or a part of the trade, carried on by the predecessor); and any reference in this paragraph to a transferred loss is a reference to the amount mentioned in paragraph (a) above. (3) The transferee shall be entitled to relief under section 393(1) of the Taxes Act 1988 for the transferred loss, as for a loss sustained by the transferee in carrying on its trade, but the transferred loss may only be set off against trading income of the transferee which arises in an accounting period throughout which the transferee is a public sector railway company. (4) Where the transferee ceases to be a public sector railway company, it shall be assumed for the purposes of giving relief by virtue of sub-paragraph (3) above that— (a) on the occasion of the cessation (unless a true accounting period of the transferee ends then) an accounting period of the transferee ends and a new one begins, the new accounting period to end with the end of the true accounting period; and (b) the amount of the trading income for the true accounting period of the transferee against which the relief may be allowed is apportioned to the component accounting periods; and any apportionment under this sub-paragraph shall be on a time basis according to the respective lengths of the component accounting periods except that, if it appears that that method would work unreasonably or unjustly, such other method shall be used as appears just and reasonable. (5) Relief by virtue of sub-paragraph (3) above in respect of a transferred loss shall be given against the trading income of any accounting period of the transferee before relief is given against that income in respect of losses incurred by the transferee after the relevant date. (6) As from the relevant date— (a) the amount of the predecessor’s unrelieved transferred losses (if any) shall be regarded for the purposes of this paragraph as reduced by an amount equal to the transferred loss; and (b) if the transferred loss exceeds the amount of the predecessor’s unrelieved transferred losses before the reduction under paragraph (a) above, or if there are no such losses, the predecessor’s unrelieved trading losses shall be regarded for the purposes of the Corporation Tax Acts as reduced by the amount of that excess or, as the case may be, by an amount equal to the transferred loss. (7) Without prejudice to the generality of sub-paragraphs (1) and (3) above, if the conditions in subsection (1) of section 343 of the Taxes Act 1988 become satisfied at any time on or after the relevant date in relation to any trade (or, where subsection (8) of that section applies, any part of a trade which falls to be treated for the purposes of that section as a separate trade), the company which is the successor, within the meaning of that section, shall not become entitled to relief by virtue of subsection (3) of that section in respect of any amount for which the company which is the predecessor, within the meaning of that section, would have been entitled to relief by virtue of sub-paragraph (3) above had it continued to carry on the trade (or the part of the trade which falls to be treated as a separate trade). (8) Subject to sub-paragraph (9) below, the provisions of a restructuring scheme providing for the determination of the amount which is to be that of any transferred loss may include provision— (a) for such a determination to be made by the Secretary of State in such manner as may be described in the scheme; (b) for any amount determined to be calculated by reference to such factors, or to the opinion of such person, as may be so described; and (c) for a determination under those provisions to be capable of being modified, on one or more occasions, in such manner and in such circumstances as may be so described. (9) The consent of the Treasury shall be required for the making or modification of a determination of any such amount as is mentioned in sub-paragraph (8) above; and the consent of the transferee shall also be required for any such modification after the coming into force of the relevant transfer. (10) Where there is a determination, or a modification of a determination, for any purposes of this paragraph, all necessary adjustments shall be made by making assessments or by repayment or discharge of tax, and shall be so made notwithstanding any limitation on the time within which assessments may be made. (11) For the purposes of this paragraph, a transferee is at any time a “public sector railway company” if, and only if, it is at that time— (a) the Board; (b) a wholly owned subsidiary of the Board; (ba) a wholly owned subsidiary of the Strategic Rail Authority; (c) a publicly owned railway company; or (d) a company wholly owned by the Crown. (12) In this paragraph— “the relevant date” means the date on which the transfer mentioned in sub-paragraph (2)(a) above takes effect; “trading income” has the same meaning as it has in section 393 of the Taxes Act 1988; “unrelieved trading losses” means any losses— which were incurred by the predecessor in carrying on a trade in accounting periods ending before the relevant date, or for which the predecessor has, by virtue of section 343(3) of the Taxes Act 1988, become entitled to relief under section 393(1) of that Act, and which would, apart from the restructuring scheme mentioned in sub-paragraph (2)(a) above, have fallen to be set off under the said section 393(1) against trading income of the predecessor arising in the accounting period in which the relevant date falls; “unrelieved transferred losses” means so much of a transferred loss as would, apart from the restructuring scheme mentioned in sub-paragraph (2)(a) above, have fallen to be set off under section 393(1) of the Taxes Act 1988, as it applies by virtue of sub-paragraph (3) above, against trading income of the predecessor arising in the accounting period in which the relevant date falls. (13) It shall be assumed for the purposes of the definitions of “unrelieved trading losses” and “unrelieved transferred losses” in sub-paragraph (12) above (if it is not in fact the case) that the trading income mentioned in those definitions is at least equal to the aggregate amount of the losses in question of each of those descriptions. No reduction in allowable losses on extinguishment of certain liabilities 16 Where any of the liabilities of a successor company are extinguished by virtue of section 106(1) of the Railways Act 1993, section 400 of the Taxes Act 1988 (reduction of allowable losses on write-off of government investment) shall not have effect in relation to any amount of government investment in a body corporate which, apart from this paragraph, would thereby fall to be regarded as written-off for the purposes of that section. Group relief 17 (1) The existence of the powers of the Secretary of State or the Franchising Director under Part II of the Railways Act 1993 shall not be regarded as constituting arrangements falling within subsection (1) or (2) of section 410 of the Taxes Act 1988 (arrangements for the transfer of a company to another group or consortium). (2) Nothing in Part II of the Railways Act 1993, and no direction given by the Secretary of State under or by virtue of any provision of that Part, shall be regarded as constituting option arrangements for the purposes of paragraph 5B of Schedule 18 to the Taxes Act 1988. (3) Arrangements relating to the transfer, pursuant to any provision of Part II of the Railways Act 1993, of shares of a subsidiary of the Board to— (a) the Secretary of State, (b) the Franchising Director, (c) a publicly owned railway company, (d) a company which is wholly owned by the Crown, or (e) a person acting on behalf of a person falling within any of paragraphs (a) to (d) above, shall not, so far as so relating, be regarded as constituting arrangements falling within subsection (1)(b)(i) or (ii) of section 410 of the Taxes Act 1988. (4) Arrangements relating to the transfer, by virtue of a section 85 transfer scheme, of the whole or any part of a trade carried on by the Board or a wholly owned subsidiary of the Board to— (a) a publicly owned railway company, or (b) a company wholly owned by the Franchising Director, shall not, so far as so relating, be regarded as constituting arrangements falling within section 410(1)(b)(iii) of the Taxes Act 1988. (5) Arrangements relating to the transfer, pursuant to any provision of Part II of the Railways Act 1993, of shares of a subsidiary of the Board, or shares of a company owned by a consortium, to— (a) the Secretary of State, (b) the Franchising Director, (c) a publicly owned railway company, (d) a company which is wholly owned by the Crown, or (e) a person acting on behalf of a person falling within any of paragraphs (a) to (d) above, shall not, so far as so relating, be regarded as constituting arrangements falling within section 410(2)(b)(ii) of the Taxes Act 1988. (6) None of sub-paragraphs (3) to (5) above shall have effect in relation to any arrangements if— (a) notwithstanding the provisions of those sub-paragraphs, the arrangements to any extent fall within section 410(1) or (2) of the Taxes Act 1988; or (b) the arrangements form part of a series of subsisting arrangements which to any extent— (i) relate to the transfer of any shares or assets of, or the whole or any part of the trade carried on by, a company to which the first-mentioned arrangements relate, and (ii) notwithstanding the provisions of sub-paragraphs (3) to (5) above, fall within section 410(1) or (2) of the Taxes Act 1988. (7) Section 413(6)(a) of the Taxes Act 1988 (company owned by a consortium) shall have effect for the purposes of sub-paragraph (5) above as it has effect for the purposes of Chapter IV of Part X of that Act. (8) In this paragraph— “arrangements” has the same meaning as in section 410 of the Taxes Act 1988; “shares” includes stock. Securities issued under section 98 or 106 of the Railways Act 1993 18 (1) Subject to sub-paragraph (2) below, any shares issued by a relevant company in pursuance of section 98 or 106 of the Railways Act 1993 (initial share holding in, and extinguishment of certain liabilities of, successor companies) shall be treated for the purposes of the Corporation Tax Acts as if they had been issued wholly in consideration of a subscription paid to that company (and attributable equally between those shares) of an amount equal— (a) in the case of shares issued under section 98 of that Act, to the value, as at the transfer date, of the property, rights and liabilities vested in that company in accordance with the transfer scheme mentioned in subsection (1) of that section, or (b) in the case of shares issued under section 106 of that Act, to the amount of the liabilities extinguished by the order under subsection (1) of that section, reduced, in either case, by the principal sum payable under any debentures issued by the company in pursuance of the section in question. (2) Where two or more classes of share are issued by a relevant company in pursuance of section 98 or, as the case may be, section 106 of the Railways Act 1993— (a) the issued shares of each of those classes shall be valued, as at the day on which, in consequence of section 98(4) or, as the case may be, section 106(5) of that Act, no more shares can be directed to be issued by the company under the section in question; (b) the amount of the consideration mentioned in sub-paragraph (1) above shall be apportioned between those classes of share in proportion to the aggregate value of the issued shares of each of those classes, as determined pursuant to paragraph (a) above; and (c) the portion attributed to any class of share pursuant to paragraph (b) above shall be divided by the number of issued shares of that class, the resulting amount being referred to in the following provisions of this sub-paragraph as the “appropriate price” for a share of that class; and each of the issued shares of any of those classes shall be treated for the purposes of the Corporation Tax Acts as if it had been issued wholly in consideration of a subscription paid to the relevant company of an amount equal to the appropriate price for a share of that class. (3) Any debenture issued by a relevant company in pursuance of section 98 or 106 of the Railways Act 1993 shall be treated for the purposes of the Corporation Tax Acts as if it had been issued— (a) wholly in consideration of a loan made to that company of an amount equal to the principal sum payable under the debenture; and (b) wholly and exclusively for the purposes of the trade or business carried on by that company. (4) If any debenture issued as mentioned in sub-paragraph (3) above includes provisions for the payment of a sum expressed as interest in respect of a period which falls wholly or partly before the issue of the debenture, any payment made in pursuance of that provision in respect of that period shall be treated for the purposes of the Corporation Tax Acts as if the debenture had been issued at the commencement of that period and, accordingly, as interest on the principal sum payable under the debenture. (5) The value required to be determined for the purposes of sub-paragraph (1)(a) or (2)(a) above is market value, as defined in section 272 of the Gains Act. (6) In this paragraph— “company” means a body corporate; “relevant company” means a company which is— a successor company; or in the application of this paragraph in relation to shares or debentures issued pursuant to section 106 of the Railways Act 1993, the company, or one of the companies, wholly owning (within the meaning of that section) the successor company whose liabilities are extinguished by the order under subsection (1) of that section. Leased assets 19 (1) For the purposes of section 781 of the Taxes Act 1988 (assets leased to traders and others), where the interest of the lessor or the lessee under a lease, or any other interest in an asset, vests in any person by virtue of a relevant transfer— (a) the transfer shall (notwithstanding anything in section 783(4) of that Act) be treated as made without any capital sum having been obtained in respect of that interest by the predecessor or the transferee; and (b) in a case where the interest is an interest under a lease, payments made by the predecessor under the lease before the coming into force of the transfer shall be treated as if they had been made under that lease by the transferee. (2) No charge shall arise under section 781(1) of the Taxes Act 1988 by virtue of section 783(2) of that Act in a case where the capital sum mentioned in section 781(1)(b)(i) or (ii) of that Act is the consideration obtained (or treated by section 783(4) of that Act as obtained) by the Board on a disposal pursuant to a direction under Part II of the Railways Act 1993 of securities of a subsidiary of the Board. (3) The grant of a lease of an asset— (a) by a person to an associate of his, pursuant to an obligation imposed by a restructuring scheme by virtue of section 91(1)(c) of the Railways Act 1993, (b) by a person to an associate of his, pursuant to paragraph 2 of Schedule 8 to that Act in connection with a restructuring scheme, or (c) by the Board, any of the Board’s wholly owned subsidiaries, a publicly owned railway company or a company wholly owned by the Franchising Director to an associate of the grantor, pursuant to a direction under that Act, shall be treated for the purposes of section 781 of the Taxes Act 1988 (notwithstanding anything in section 783(4) of that Act) as made without any capital sum having been obtained by the grantor. (4) No charge shall arise under section 781(1) of the Taxes Act 1988 in a case where the capital sum mentioned in section 781(1)(b)(i) or (ii) of that Act is the consideration obtained (or treated by section 783(4) of that Act as obtained) on a disposal of, or of an interest in, rolling stock by— (a) the Board, (b) a wholly owned subsidiary of the Board, (c) a publicly owned railway company, (d) a company wholly owned by the Franchising Director, or (e) a body which, at the time when it acquired the rolling stock, fell within paragraph (b), (c) or (d) above, in any case where before, at or after the time when the disposal is made the lessee’s interest in a lease of the rolling stock has belonged to an associate of the person making the disposal. (5) Section 782 of the Taxes Act 1988 (leased assets: special cases) shall not apply to payments made by— (a) the Board, (b) a wholly owned subsidiary of the Board, (ba) the Strategic Rail Authority, (bb) a wholly owned subsidiary of the Strategic Rail Authority, (c) a publicly owned railway company, (d) a company wholly owned by the Franchising Director, (e) a successor company, or (f) a franchise company, under a lease of an asset which at any time before the creation of the lease was used by a body falling within paragraphs (a) to (d) above for the purposes of a trade carried on by that body and which was, when so used, owned by that body. (6) Section 781 of the Taxes Act 1988 shall not, by virtue of sub-paragraph (5) above, apply to any payments to which, by virtue of section 782 of that Act, it would not have applied apart from that sub-paragraph. (7) In this paragraph— “asset” has the meaning given by section 785 of the Taxes Act 1988; “associate” shall be construed in accordance with section 783(10) of that Act; “capital sum” has the meaning given by section 785 of that Act; “lease” has the meaning given by section 785 of that Act; “rolling stock” has the meaning given by section 83(1) of the Railways Act 1993; “securities” has the meaning given by section 102A(2) of the Financial Services and Markets Act 2000. Continuity in relation to capital allowances etc where trade transferred 20 (1) Subject to the following provisions of this Schedule, where, apart from this paragraph— (a) the predecessor would be treated for the purposes of the Corporation Tax Acts as having ceased, by virtue of the coming into force of a relevant transfer, to carry on any trade, and (b) the transferee would be treated as having begun, on the coming into force of that transfer, to carry it on, then ... sub-paragraphs (2) to (4) below shall apply. (2) Subject to sub-paragraphs (3) and (4) below, in a case falling within sub-paragraph (1) above— (a) there shall be made to or on the transferee in accordance with the Capital Allowances Act all such allowances and charges as would, if the predecessor had continued to carry on the trade, have fallen to be made to or on the predecessor; and (b) the amount of any such allowance or charge shall be computed as if— (i) the transferee had been carrying on the trade since the predecessor began to do so; and (ii) everything done to or by the predecessor had been done to or by the transferee (but so that the relevant transfer itself, so far as it relates to any assets in use for the purpose of the trade, shall not be treated as giving rise to any such allowance or charge). (3) For the purposes of the Corporation Tax Acts, only such amounts (if any) as may be specified in or determined in accordance with the restructuring scheme providing for a relevant transfer shall be allocated to the transferee in respect of expenditure by reference to which capital allowances may be made by virtue of sub-paragraph (2) above in relation to anything to which the transfer relates. (4) Sub-paragraph (2) above shall affect the amounts falling to be taken into account in relation to the predecessor as expenditure by reference to which capital allowances may be made only so far as necessary to give effect to a reduction of any such amount by a sum equal to so much of that amount as is allocated to the transferee as mentioned in sub-paragraph (3) above. (5) Subject to sub-paragraph (6) below, the provisions of a restructuring scheme providing for the determination of any amount which for the purposes of sub-paragraph (3) above is to be allocated, in the case of any relevant transfer, to the transferee may include provision— (a) for such a determination to be made by the Secretary of State in such manner as may be described in the scheme; (b) for any amount determined to be calculated by reference to such factors or to the opinion of such person as may be so described; and (c) for a determination under those provisions to be capable of being modified, on one or more occasions, in such manner and in such circumstances as may be so described. (6) The consent of the Treasury shall be required for the making or modification of a determination of any such amount as is mentioned in sub-paragraph (5) above; and the consent of the transferee shall also be required for any such modification after the coming into force of the relevant transfer. (7) This sub-paragraph applies in any case where assets which are the subject of a relevant transfer became vested in the predecessor by virtue of a transfer made by a company; and in any such case— (a) if the predecessor held a direct or indirect interest in the company at the time of the transfer by the company, that interest shall be treated for the purposes of sub-paragraph (2)(b)(ii) above as if it had instead been held by the transferee; (b) if the company held a direct or indirect interest in the predecessor at the time of the transfer by the company, the interest which the company held in the predecessor shall be treated for the purposes of sub-paragraph (2)(b)(ii) above as if it had instead been the corresponding interest in the transferee; and (c) if there was a person who, at the time of the transfer by the company, held— (i) a direct or indirect interest in the predecessor, and (ii) a direct or indirect interest in the company, the interest which that person held at that time in the predecessor shall be treated for the purposes of sub-paragraph (2)(b)(ii) above as if it had instead been the corresponding interest in the transferee. (8) Neither section 343 of the Taxes Act 1988 (company reconstructions without change of ownership) nor sections 266 and 267 of the Capital Allowances Act (election where predecessor and successor are connected persons) shall have effect in a case falling within sub-paragraph (1) above. (9) In determining whether sub-paragraph (1) above has effect in relation to a relevant transfer in a case where— (a) the predecessor continues to carry on any trade or part of a trade after the coming into force of the transfer, or (b) the transferee was carrying on any trade before the coming into force of the transfer, the trade or part of a trade which is continued or, as the case may be, was being carried on shall for the purposes of that sub-paragraph be treated in relation to any trade or part of a trade which is transferred by virtue of the transfer as a separate trade and shall accordingly be disregarded. (10) Where there is a determination, or a modification of a determination, for any purposes of this paragraph, all necessary adjustments shall be made by making assessments or by repayment or discharge of tax, and shall be so made notwithstanding any limitation on the time within which assessments may be made. Capital allowances in certain cases where paragraph 20 does not apply 21 (1) The Capital Allowances Act shall have effect in accordance with this paragraph in relation to any property if— (a) it is property to which a relevant transfer relates; and (b) paragraph 20 above does not apply in relation to its transfer to the transferee; and in this paragraph “the relevant scheme”, in relation to property to which a relevant transfer relates, means the restructuring scheme that provides for that transfer. (2) In any case where— (a) section 573 of the Capital Allowances Act (transfers treated as sales) as it applies for the purposes of Part 3 of that Act applies on the relevant transfer in relation to the property, and (b) the relevant scheme contains provision for the sale of that property which is deemed to occur by virtue of that section to be deemed for the purposes of that Act to be at a price specified in or determined in accordance with the scheme, that deemed sale shall be treated as a sale at the price so specified or determined (instead of at the price determined under that section or any other provision of the Capital Allowances Act), sections 567 to 570 of that Act shall not apply and that provision of the scheme shall have an equivalent effect in relation to the expenditure which the transferee is to be treated as having incurred in making the corresponding purchase. (3) Where the property is plant or machinery which would, for the purposes of the Capital Allowances Act, be treated on the coming into force of the relevant transfer as disposed of by the predecessor to the transferee and the relevant scheme contains provision for the disposal value of that property to be deemed for the purposes of that Act to be of such amount as may be specified in or determined in accordance with the scheme— (a) that provision shall have effect, instead of section 61(2) to (4), 72(3) to (5), 171, 196 or 423 of the Capital Allowances Act, for determining an amount as the disposal value of the property or, as the case may be, as the price at which any fixture is to be treated as sold; (b) the transferee shall be deemed to have incurred expenditure of that amount on the provision of that property; and (c) in the case of a fixture, the expenditure which falls to be treated as incurred by the transferee shall be deemed for the purposes of sections 181(1) and 182(1) of that Act to be incurred by the giving of a consideration consisting in a capital sum of that amount. (4) Sub-paragraphs (5) and (6) of paragraph 20 above shall apply in relation to any determination of any amount in accordance with any provision made by a restructuring scheme for the purposes of this paragraph as they apply for the purposes of a determination such as is mentioned in those sub-paragraphs. (5) Where there is a determination, or a modification of a determination, for any purposes of this paragraph, all necessary adjustments shall be made by making assessments or by repayment or discharge of tax, and shall be so made notwithstanding any limitation on the time within which assessments may be made. Capital allowances: actual consideration to be the disposal value in certain other cases 22 (1) In this paragraph, “relevant disposal” means— (a) a disposal by virtue of a section 85 transfer scheme, other than a restructuring scheme, to the extent that the scheme provides for the transfer of property, rights and liabilities of— (i) the Board, (ii) a wholly owned subsidiary of the Board, (iii) a publicly owned railway company, or (iv) a company which is wholly owned by the Franchising Director, to a franchise company or to the Franchising Director; (b) a disposal pursuant to a direction under section 89 of the Railways Act 1993; (c) a disposal in accordance with directions under section 125 of that Act; (d) a disposal by or pursuant to an agreement or instrument made or executed, transaction effected or direction given under or by virtue of paragraph 2, 3 or 14(2) of Schedule 8 to that Act, in a case where the transfer scheme in question is a section 85 transfer scheme, other than a restructuring scheme; or (e) a disposal pursuant to a requirement imposed under paragraph 7(2)(b) of that Schedule, in a case where the transfer to which that Schedule applies is a transfer by virtue of a section 85 transfer scheme. (2) A relevant disposal of the relevant interest in— (a) an industrial building, or (b) a qualifying hotel or a commercial building, shall be treated for the purposes of Part 3 of the Capital Allowances Act, and the other provisions of that Act which are relevant to that Part, as a sale of that relevant interest; and sections 567 to 570 of that Act (sales between connected persons or without change of control) shall not have effect in relation to that sale. (3) Where there is a relevant disposal of plant or machinery, the amount which, in consequence of that disposal, is to be brought into account as the disposal value of that plant or machinery for the purposes of section 55 of the Capital Allowances Act (determination of entitlement or liability) shall, subject to section 62 of that Act (general limit on amount of disposal value) be taken— (a) if consideration is given in respect of the relevant disposal, to be an amount equal to the amount or value of that consideration, or (b) if no such consideration is given, to be nil, notwithstanding any other provision of the the Capital Allowances Act. (4) Where, in consequence of a relevant disposal, a fixture is treated by section 188 of the Capital Allowances Act as ceasing to belong to a person at any time, the amount which, in consequence of that disposal, is to be brought into account as the disposal value of the fixture for the purposes of section 55 of that Act shall, subject to section 62 of that Act, be taken— (a) if consideration is given in respect of the relevant disposal, to be an amount equal to that portion of the amount or value of that consideration which falls (or, if the person to whom the relevant disposal is made were entitled to an allowance, would fall) to be treated for the purposes of Part 2 of that Act as expenditure incurred by that person on the provision of the fixture, or (b) if no such consideration is given, to be nil, notwithstanding any other provision of the Capital Allowances Act. Sale and lease-back: limitation on tax reliefs 23 (1) Section 779 of the Taxes Act 1988 (sale and lease back) shall not apply by virtue of subsection (1) or (2) of that section in any case where the liability of the transferor, or of the person associated with the transferor, is— (a) a liability under an access agreement, within the meaning of Part I of the Railways Act 1993; (b) a liability under an agreement or instrument made or executed— (i) pursuant to an obligation imposed by a restructuring scheme by virtue of section 91(1)(c) of that Act; or (ii) pursuant to paragraph 2 of Schedule 8 to that Act; (c) a liability under an exempt lease; or (d) a liability to pay exempt rent or to make other exempt payments. (2) A lease is “exempt” for the purposes of sub-paragraph (1)(c) above if— (a) the transfer mentioned in subsection (1) of section 779 of the Taxes Act 1988 is— (i) a transfer by virtue of a restructuring scheme; (ii) a transfer pursuant to an obligation imposed by a restructuring scheme by virtue of section 91(1)(c) of the Railways Act 1993; or (iii) a transfer pursuant to paragraph 2 of Schedule 8 to that Act; and (b) the lease is granted after that transfer and otherwise than pursuant to— (i) an obligation imposed by a restructuring scheme by virtue of section 91(1)(c) of the Railways Act 1993; or (ii) paragraph 2 of Schedule 8 to that Act. (3) Rent or other payments are “exempt” for the purposes of paragraph (d) of sub-paragraph (1) above if— (a) the rent or other payments would, apart from that paragraph, be rent or other payments to which section 779 of the Taxes Act 1988 applies by virtue of subsection (1) or (2) of that section; (b) the transfer mentioned in subsection (1) or, as the case may be, subsection (2)(a) of that section is— (i) a transfer by virtue of a restructuring scheme; (ii) a transfer pursuant to an obligation imposed by a restructuring scheme by virtue of section 91(1)(c) of the Railways Act 1993; or (iii) a transfer pursuant to paragraph 2 of Schedule 8 to that Act; and (c) the transaction or series of transactions mentioned in subsection (1)(b) or, as the case may be, subsection (2)(b) of the said section 779 is effected after that transfer. (4) In this paragraph “transferor”, “lease” and “rent” have the same meaning as they have in section 779 of the Taxes Act 1988 and “associated” shall be construed in accordance with subsection (11) of that section. Sales of land with right to reconveyance 24 No charge to tax shall arise by virtue of section 36 of the Taxes Act 1988 (charge on sale of land with right to reconveyance) where the sale in question is constituted by a disposition to a franchise company— (a) by virtue of a transfer scheme; (b) pursuant to an obligation imposed by a transfer scheme by virtue of section 91(1)(c) of the Railways Act 1993; or (c) pursuant to paragraph 2 of Schedule 8 to that Act. Modifications of restructuring scheme 25 (1) Subject to sub-paragraph (2) below, where the effect of a restructuring scheme is modified in pursuance of an agreement or direction under paragraph 2 or 3 of Schedule 8 to the Railways Act 1993, the Corporation Tax Acts and this Schedule shall have effect as if— (a) the scheme originally made had been the scheme as modified; and (b) anything done by or in relation to the preceding holder had, so far as relating to the property, rights or liabilities affected by the modification, been done by or in relation to the subsequent holder. (2) A disposal of an asset— (a) which is effected in pursuance of an agreement or direction under paragraph 2 of Schedule 8 to the Railways Act 1993, and (b) which is either the grant of a lease of land or the creation of other liabilities and rights over land, shall be taken for the purposes of corporation tax on chargeable gains, in relation to the person to whom the disposal is made as well as the person making the disposal, to be effected for a consideration such that no gain or loss accrues to the person making the disposal. (3) Section 171(1) of the Gains Act (transfers within a group) shall not apply where the disposal in question falls within sub-paragraph (2) above. (4) Any reference in sub-paragraph (1) or (2) above to an agreement or direction under paragraph 2 or 3 of Schedule 8 to the Railways Act 1993 includes a reference to such an agreement or direction as varied in accordance with a direction given by the Secretary of State under paragraph 14(2) of that Schedule. (5) For the purposes of sub-paragraph (1)(b) above— “the preceding holder” means the person who without the modification in question— became, by virtue of the restructuring scheme in question, entitled or subject to the property, rights or liabilities affected by the modification, or remained, notwithstanding the restructuring scheme in question, entitled or subject to the property, rights or liabilities affected by the modification, as the case may be; “the subsequent holder” means the person who, in consequence of the modification in question, becomes, or resumes being, entitled or subject to the property, rights or liabilities affected by the modification. Income tax exemption for certain interest 26 Where liability for a loan made to the Board is vested in a successor company by virtue of a section 85 transfer scheme, the vesting shall not affect any direction given, or having effect as if given, by the Treasury under section 755 of the Income Tax (Trading and Other Income) Act 2005 (income tax exemption for interest on foreign currency securities) in respect of the loan. Employee benefits: transport vouchers 27 (1) This paragraph applies to any person (an “eligible person”)— (a) who on 11th January 1994 was in the employment of— (i) the Board, (ii) a wholly owned subsidiary of the Board, or (iii) any other subsidiary of the Board which, at that date, was a passenger transport undertaking; and (b) who at that date was provided, or was eligible to be provided, by reason of that employment, with a transport voucher falling within subsection (6) of section 141 of the Taxes Act 1988 (exclusion of subsection (1) of that section in relation to certain transport vouchers); but this sub-paragraph is subject to sub-paragraph (2) below. (2) This paragraph shall not apply, or shall cease to apply, to a person if, on or after 11th January 1994, any of the following conditions became or becomes satisfied in his case, that is to say— (a) he ceases, otherwise than— (i) by virtue of anything done under or by virtue of, or pursuant to, the Railways Act 1993, or (ii) by virtue of any other enactment or statutory instrument, in consequence of anything so done, to be in the employment of a person falling within sub-paragraph (i) or, as the case may be, sub-paragraph (ii) or (iii) of sub-paragraph (1)(a) above; (b) he is not in the employment of any person engaged in the railway industry; or (c) the continuity of the period of his employment is broken. (3) Section 86 of ITEPA 2003 (exception for certain transport vouchers) shall, if and so long as the conditions in sub-paragraph (4) below are satisfied, have effect in relation to a transport voucher provided for an eligible person, notwithstanding— (a) that the employer of the eligible person does not fall to be regarded as a passenger transport undertaking; (b) that the arrangements under which the transport voucher is provided were not in operation on 25th March 1982; or (c) that the passenger transport services which may be obtained by means of the transport voucher are provided, in whole or in part, otherwise than as mentioned in section 86(2)(a) to (d) of ITEPA 2003 ; but this sub-paragraph is subject to sub-paragraph (2) above. (4) The conditions mentioned in sub-paragraph (3) above are— (a) that the eligible person is in the employment of an employer engaged in the railway industry; (b) that the transport voucher is provided by reason of the eligible person’s being in the employment of such an employer; (c) that the transport voucher is intended to enable the eligible person or a relation of his to obtain passenger transport services; and (d) that the current transport voucher benefits in the case of the eligible person are not significantly better than the former transport voucher benefits for comparable employees. (5) The Secretary of State may, with the consent of the Treasury, by order prescribe for any purposes of this paragraph circumstances— (a) in which a person who ceases, or ceased, as mentioned in sub-paragraph (2)(a) above to be in the employment there mentioned shall be treated— (i) as if he had not ceased to be in that employment, or (ii) as if he had not so ceased to be in that employment; (b) in which a person shall be treated for a period during which he is not or was not in the employment of any person engaged in the railway industry as if he were or had been in the employment of such a person; (c) in which a break in the continuity of a person’s period of employment shall be disregarded; or (d) in which a transport voucher shall be treated as if it were, or had been, provided for a person by reason of his being in the employment of an employer engaged in the railway industry. (6) The employers who are to be regarded for the purposes of this paragraph as “engaged in the railway industry” are those who carry on activities of a class or description specified for the purposes of this sub-paragraph in an order made by the Secretary of State with the consent of the Treasury; and the Secretary of State may so specify any class or description of activity which, in his opinion, falls within, or is related to or connected with, the railway industry. (7) Any power to make an order under this paragraph shall be exercisable by statutory instrument; and a statutory instrument containing such an order shall be subject to annulment pursuant to a resolution of the House of Commons. (8) In determining for the purposes of sub-paragraph (4)(d) above whether the current transport voucher benefits in the case of an eligible person are not significantly better than the former transport voucher benefits for comparable employees, regard shall be had, in particular, to— (a) the passenger transport services which may be, or (as the case may be) might have been, obtained by means of transport vouchers under the arrangements in question, (b) whether, and (if so) the extent to which, free or concessionary travel is or (as the case may be) was available under those arrangements, (c) the rate of any discount to the standard fare which is or (as the case may be) was available in the case of concessionary travel under those arrangements, and (d) any limitations on the availability or use of transport vouchers under the arrangements in question. (9) Chapter I of Part XIV of the Employment Rights Act 1996, except section 218(6), shall apply for the purposes of this paragraph as it applies for the purposes of that Act. (12) In this paragraph— “the current transport voucher benefits”, in the case of an eligible person, means the totality of the benefits which, by reason of his employment by an employer engaged in the railway industry, are available in the year in question— to the eligible person, and to relations of his, by way of transport voucher under the arrangements under which the transport voucher in question is provided; “the former transport voucher benefits for comparable employees”, in the case of an eligible person, means the totality of the benefits which would, by reason of the employment by the Board of a person of similar status to the eligible person (“the comparable person”), have been available in the year 1993-94— to the comparable person, and to relations of his, by way of transport voucher under arrangements in operation on 25th March 1982. “ITEPA 2003” means the Income Tax (Earnings and Pensions) Act 2003. (13) Subject to paragraph 1(1) and sub-paragraph (12) above, expressions used in this paragraph and in section 86 of ITEPA 2003 have the same meaning in this paragraph as in that section. This does not apply in relation to the reference to a transport voucher in sub-paragraph (1) above. (14) This paragraph has effect— (a) in relation to transport vouchers received by an employee on or after 11th January 1994; and (b) in relation to expense incurred on or after that date in, or in connection with, the provision of— (i) any transport voucher, or (ii) the money, goods or services for which it is capable of being exchanged, irrespective of when the transport voucher falls to be regarded as received by the employee in question.

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SCHEDULE 25 Northern Ireland Airports Limited

Section 253. Interpretation 1 (1) In this Schedule— “the final accounting period” means the last complete accounting period of NIAL ending before the transfer date; “the Holding Company” means the Northern Ireland Transport Holding Company established under section 47 of the Transport Act (Northern Ireland) 1967; “NIAL” means the subsidiary of the Holding Company incorporated under the name of Northern Ireland Airports Limited; “the Order” means the Airports (Northern Ireland) Order 1994 and any reference to an Article is to an Article of the Order; “the successor company” means the company nominated under Article 51(1) as the successor company for the purposes of the Order; “the transfer date” means the day appointed under Article 54(2); “the transferred trade” means the trade carried on by NIAL and transferred under Article 54(2) to the successor company. (2) This Schedule, so far as it relates to corporation tax on chargeable gains, shall be construed as one with the Taxation of Chargeable Gains Act 1992. Transfers from NIAL to successor company: general 2 (1) The following shall apply for the purposes of the Corporation Tax Acts— (a) the transferred trade shall be treated as having been, at the time when it began to be carried on by NIAL and at all times since that time, a separate trade carried on by the successor company; (b) the trade carried on by the successor company on and after the transfer date shall be treated as the same trade as that which, by virtue of paragraph (a) above, it is treated as having carried on before that date; (c) all property, rights and liabilities of NIAL which are transferred under Article 54(2) to the successor company shall be treated as having been, at the time when they became vested in NIAL and at all times since that time, property, rights and liabilities of the successor company; and (d) anything done by NIAL in relation to any property, rights and liabilities which are transferred under Article 54(2) to the successor company shall be deemed to have been done by the successor company. (2) This paragraph shall have effect in relation to accounting periods beginning after the final accounting period. Roll-over relief 3 (1) This paragraph applies where NIAL has, before the transfer date, disposed of (or of its interest in) any assets used, throughout the period of ownership, wholly or partly for the purposes of the transferred trade. (2) Sections 152 to 156 of the Taxation of Chargeable Gains Act 1992 (roll-over relief on replacement of business assets) shall have effect in relation to that disposal as if NIAL and the successor company were the same person. Transfers from Holding Company to successor company 4 (1) This paragraph applies where under Article 54(2) an asset of the Holding Company is transferred to the successor company. (2) The disposal of the asset by the Holding Company shall be taken for the purposes of corporation tax on chargeable gains to be effected for a consideration of such amount as would secure that on the disposal neither a gain nor a loss would accrue to the Holding company. (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Leasehold interests in industrial buildings or structures 5 (1) This paragraph applies where— (a) NIAL is entitled, under a lease granted by the Holding Company, to a leasehold interest in a building or structure, (b) by virtue of Article 52(2)(b) that interest is deemed to have been surrendered by NIAL, (c) under Article 52(3) the Holding Company and NIAL enter into a lease under which NIAL is entitled to a leasehold interest (“the new interest”) in the property, and (d) under Article 54(2) that interest is transferred to the successor company. (2) For the purposes of the Capital Allowances Act 2001— (a) the surrender shall be deemed to be for such an amount (by way of sale, insurance, salvage or compensation moneys) as would secure that no balancing allowance or balancing charge would be made to or on NIAL by reason of the surrender (“the surrender value”); (b) the successor company shall be treated for the purposes of the Capital Allowances Act 2001— (i) as if the new interest were the relevant interest in relation to the capital expenditure incurred on the construction of the property; and (ii) as if the amount of the residue of that expenditure immediately after the transfer of the new interest were equal to the surrender value. (3) In this paragraph— . . . “balancing allowance” and “balancing charge” have the same meanings as in Chapter 7 of Part 3 of the Capital Allowances Act 2001; “the property” means the building or structure referred to in sub-paragraph (1); and “relevant interest” has the same meaning as in Chapter 3 of Part 3 of the Capital Allowances Act 2001. Securities of successor company 6 (1) Any share issued by the successor company under Article 57 shall be treated for the purposes of the Corporation Tax Acts as if it had been issued wholly in consideration of a subscription paid to the company of an amount equal to the nominal value of the share. (2) Any debenture issued by the successor company under Article 57 shall be treated for the purposes of the Corporation Tax Acts as if it had been issued— (a) wholly in consideration of a loan made to the company of an amount equal to the principal sum payable under the debenture, and (b) wholly and exclusively for the purposes of the trade carried on by the company. (3) If any such debenture includes provision for the payment of a sum expressed as interest in respect of a period which falls wholly or partly before the issue of the debenture, any payment made in pursuance of that provision in respect of that period shall be treated for the purposes of the Corporation Tax Acts as if the debenture had been issued at the commencement of that period and, accordingly, as interest on the principal sum payable under the debenture.

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SCHEDULE 26 Repeals

Section 258. Part I Vehicles excise duty (1)Rates Chapter | Short title | Extent of repeal 1971 c. 10. | The Vehicles (Excise) Act 1971. | In Schedule 1, in Part I, paragraph 4(a). In Schedule 2, in Part I, paragraphs 3 and 5. In Schedule 4, paragraph 6(6)(a), (c) and (d). 1985 c. 54. | The Finance Act 1985. | Section 4(4). 1991 c. 31. | The Finance Act 1991. | In Schedule 3, in Part I, paragraph 21. 1993 c. 34. | The Finance Act 1993. | Section 17(3)(a) and (7)(b). Section 20(3). These repeals have effect in relation to licences taken out after 30th November 1993. (2)Transitional modifications Chapter | Short title | Extent of repeal 1971 c. 10. | The Vehicles (Excise) Act 1971. | In section 2A(1), the words “(other than licences for one calendar year)”. In Schedule 7, in Part I, paragraphs 1(c), 3(b), 18, 19, 21, and 22 and, so far as it relates to section 26(2), paragraph 23. 1988 c. 54. | The Road Traffic (Consequential Provisions) Act 1988. | In Schedule 2, in Part III, paragraph 23. These repeals come into force on 1st June 1994. (3)Other provisions Chapter | Short title | Extent of repeal 1971 c. 10. | The Vehicles (Excise) Act 1971. | Section 1(4). In section 3(3), the words “the restoration of any forfeiture and”. Section 4(3)(a). 1971 c. 10. (contd.) | The Vehicles (Excise) Act 1971. (contd.) | In section 16(4), the words following paragraph (b). In section 18, subsections (8) and (9) and, in subsection (10), paragraph (b) and the word “and” immediately preceding it. Section 21. In section 22, in subsection (1), the words “or sign to be exhibited”, “or 21” and “or exhibited” and, in subsection (2), the words “or sign exhibited” and “or sign”. In section 23, as set out in paragraph 20 of Part I of Schedule 7, in subsection (1)(f), the words “or the signs” and “or signs”. In section 25, in subsection (1), in paragraph (a), the words “temporary licences or” and, in paragraph (b), the words from the beginning to “allocated to the dealer in pursuance of this Act or” and, in subsection (2), the words “requirement or” (in both places). In section 26, in subsection (1), the words “or sign to be exhibited” and “or 21” and, in subsection (2)(a), the words “temporary licences or”. In section 28(1), “11(2),”. In section 29(4), “11(2),”. In section 35(2), the words “and forfeitures” (in both places). Section 36. In section 37—in subsection (3), as set out in paragraph 22 of Part I of Schedule 7, “2(5), 11(3), 14,”,in subsection (3A), as so set out, “14,” and “14 or”, and in subsection (4), “11(3), 14, 15(1), 17(1),”. In Schedule 4, paragraph 5 and, in paragraph 15(1), in the definition of “goods vehicle”, the words “(including a tricycle as defined in Schedule 1 to this Act and weighing more than 425 kilograms unladen)”. 1976 c. 40. | The Finance Act 1976. | In section 11, in subsection (2)(c), the words “or, if it falls” onwards and subsection (5). In section 12(2)(a), the words “either” and “, or elsewhere”. 1983 c. 28. | The Finance Act 1983. | In Schedule 3, in Part II, paragraph 9. 1986 c. 41. | The Finance Act 1986. | In Schedule 2, in Part I, in paragraph 4, in sub-paragraph (5), in paragraph (a), the words “, including those words where they appear in the subsection as set out in paragraph 12 of Part I of Schedule 7,” and paragraph (c) and sub-paragraph (7)(b). 1987 c. 16. | The Finance Act 1987. | In Schedule 1, in Part III, paragraphs 16(2) and 18(2) and (3). 1988 c. 53. | The Road Traffic Offenders Act 1988. | In Schedule 5, the entry relating to the Vehicles (Excise) Act 1971. 1988 c. 54. | The Road Traffic (Consequential Provisions) Act 1988. | In Schedule 3, paragraph 15. 1990 c. 29. | The Finance Act 1990. | In Schedule 2, in Part II, paragraph 6(1) to (3). 1991 c. 31. | The Finance Act 1991. | In Schedule 3, Part II. 1993 c. 34. | The Finance Act 1993. | In section 19(2), the words “including that subsection as set out in paragraph 12 of Part I of Schedule 7”. Part II Gaming machine licence duty Chapter | Short title | Extent of repeal 1981 c. 63. | The Betting and Gaming Duties Act 1981. | Section 21A. Section 22(5). In section 24, subsection (2), in subsections (3) and (4) the word “such”, in subsection (3) the words from “but” to the end, in subsection (4) the words “or there are special licences in force with respect to those machines” and in subsection (6)(a) the words from “or” at the end of sub-paragraph (i) to “greater”. In section 26, in subsection (4) the words “section 22(5) or”. In Schedule 4, paragraphs 9, 10 and 11A. 1982 c. 39. | The Finance Act 1982. | In Schedule 6, paragraphs 9, 11 and 15. 1984 c. 43. | The Finance Act 1984. | In Schedule 3, paragraphs 3 to 5, 6(b) to (d) and (f), 7(3) to (7) and (9) to (11). 1985 c. 54. | The Finance Act 1985. | In Schedule 5, paragraphs 2, 3(1) and 9(1). 1987 c. 16. | The Finance Act 1987. | Section 4. Section 5(1), (4) and (5). 1993 c. 34. | The Finance Act 1993. | Section 15. In section 16, subsections (4)(b) and (5). These repeals have effect in accordance with Schedule 3 to this Act. Part III Excise duties: enforcement and appeals Chapter | Short title | Extent of repeal 1979 c. 2. | The Customs and Excise Management Act 1979. | Section 111(2). In section 113(4), the words from “and the trader” onwards. Section 116A. Section 127. 1979 c. 4. | The Alcoholic Liquor Duties Act 1979. | Section 13(4). Section 15(8). Section 19(3). 1979 c. 7. | The Tobacco Products Duty Act 1979. | Section 8(3). 1981 c. 35. | The Finance Act 1981. | In Schedule 8— (a) in paragraph 2(d), paragraph (ii) and the word “and” immediately preceding it; (b) paragraph 7; (c) in paragraph 12, in sub-paragraph (b), the words from “and after” onwards and sub-paragraph (c); (d) in paragraph 14, the words from “and after” in sub-paragraph (c) to the end of sub-paragraph (d); and (e) in paragraph 15, sub-paragraph (c) and the word “and” immediately preceding it. 1981 c. 63. | The Betting and Gaming Duties Act 1981. | In section 24(5), the words after paragraph (f). In Schedule 1— (a) paragraph 11; (b) in paragraph 14(3), the word “reasonably”; and (c) in paragraph 15(1), the words from “(not being” to “9 above)”. In Schedule 2, paragraph 5 and, in paragraph 7(6), the words “(1) or”. In Schedule 3, paragraphs 14 and 16(4). In Schedule 4, paragraph 16(2). 1985 c. 54. | The Finance Act 1985. | In Schedule 5, paragraph 9(2). 1989 c. 26. | The Finance Act 1989. | Section 15. 1992 c. 48. | The Finance (No. 2) Act 1992. | In Schedule 2, paragraph 2(6). Section 19 of this Act applies to these repeals as it applies to Chapter II of Part I of this Act. Part IV Value added tax Chapter | Short title | Extent of repeal 1985 c. 54. | The Finance Act 1985. | In section 20(2)(a) the words “one month after”. This repeal has effect in accordance with section 46 of this Act. Part V Income tax, corporation tax and capital gains tax (1) Reliefs Chapter | Short title | Extent of repeal 1988 c. 1. | The Income and Corporation Taxes Act 1988. | Section 257BB(6). In section 257D(5)(d), the words “section 257A and”. In section 265(3)(b), the words from “section 257A” to “or under”. In section 347B(2), the words “Notwithstanding section 347A(1)(a) but”. 1988 c. 39. | The Finance Act 1988. | In Schedule 3, paragraph 33. 1992 c. 48. | The Finance (No. 2) Act 1992. | In Schedule 5, paragraph 8(2). The repeals in section 347B of the Income and Corporation Taxes Act 1988 and in the Finance Act 1988 have effect in relation to payments becoming due on or after 6th April 1994 and the other repeals have effect in accordance with section 77(7) of this Act. (2)Interest relief Chapter | Short title | Extent of repeal 1988 c. 1. | The Income and Corporation Taxes Act 1988. | Section 257D(8)(a). Section 265(3)(a). Section 353(4) and (5). 1991 c. 31. | The Finance Act 1991. | Section 27(1) to (5) and (7). 1992 c. 12. | The Taxation of Chargeable Gains Act 1992. | In section 6(1), the words “353(4), 369(3A)”, the words “certain interest etc. and” and paragraph (a). 1992 c. 48. | The Finance (No. 2) Act 1992. | In section 19, in subsection (3), the words “353(5), 369(3B)” and subsection (5). 1993 c. 34. | The Finance Act 1993. | Section 57(7). In Schedule 6, in paragraph 1, the words “353(5), 369(3B)”. These repeals have effect in accordance with section 81(6) of this Act. (3)Medical insurance Chapter | Short title | Extent of repeal 1988 c.1. | The Income and Corporation Taxes Act 1988. | In section 257D(8), paragraph (d). In section 265(3), paragraph (d). 1989 c.26. | The Finance Act 1989. | In section 55, in subsection (2) paragraph (e) and the word “and” immediately preceding it, and subsections (3) to (6). 1. The repeals in the Income and Corporation Taxes Act 1988 have effect in accordance with paragraph 3 of Schedule 10 to this Act. 2. The repeals in the Finance Act 1989 have effect in accordance with paragraph 5 of that Schedule. (4)Vocational training Chapter | Short title | Extent of repeal 1991 c. 31. | The Finance Act 1991. | In section 32(10), the words after paragraph (b). This repeal comes into force in accordance with section 84(4) of this Act. (5)Beneficial loans Chapter | Short title | Extent of repeal 1988 c. 1. | The Income and Corporation Taxes Act 1988. | In section 160(4), the words from “and Part III” to the end. Section 167(2A). Section 191B(14). In Schedule 7, in paragraph 1(5) the words “his employer, being” and Parts III to V. 1991 c. 31. | The Finance Act 1991. | Section 31. In Schedule 6, paragraphs 2 and 5. These repeals have effect in accordance with section 88(5) of this Act. (6)Vouchers Chapter | Short title | Extent of repeal 1988 c. 1. | The Income and Corporation Taxes Act 1988. | In section 141(1), the words following paragraph (b). (7)Relief on re-investment Chapter | Short title | Extent of repeal 1992 c. 12. | The Taxation of Chargeable Gains Act 1992. | In section 164A, in subsection (2) the words “Subject to section 164C”, and subsections (3) to (7) and (11). Sections 164C to 164E. In section 164F, in subsection (5)(a) the words “or 164D” and in subsection (10) the words “(within the meaning of section 164D)”. In section 164H(1), the words “within the meaning of section 164C”. These repeals have effect in accordance with section 91(2) of this Act. (8)Indexation allowance Chapter | Short title | Extent of repeal 1992 c. 12. | The Taxation of Chargeable Gains Act 1992. | In section 56(1)(a), the words “or loss”. Section 103. Section 111. Sections 182 to 184. Section 200. In Schedule 7A, in paragraph 2(4) the words “except in relation to the calculation of any indexed rise”, in paragraph 2(9) the definition of “indexed rise”, in paragraph 4(12) the words from “together” to the end and paragraph 4(13). 1993 c. 34. | The Finance Act 1993. | In Schedule 17, paragraph 8. These repeals have effect in accordance with section 93(11) of this Act. (9)Commodity and financial futures Chapter | Short title | Extent of repeal 1992 c. 12. | The Taxation of Chargeable Gains Act 1992. | Section 143(4). This repeal has effect in accordance with section 95(2) of this Act. (10) Settlements with foreign element: information Chapter | Short title | Extent of repeal 1970 c. 9. | The Taxes Management Act 1970. | In the Table in section 98, in the second column the entry relating to paragraphs 11 to 14 of Schedule 5 to the Taxation of Chargeable Gains Act 1992. 1992 c. 12. | The Taxation of Chargeable Gains Act 1992. | In Schedule 5, paragraphs 11 to 14. These repeals have effect in accordance with section 97 of this Act. (11) Profit sharing schemes Chapter | Short title | Extent of repeal 1988 c. 1. | The Income and Corporation Taxes Act 1988. | In Schedule 10, in paragraph 3 the words from “In this paragraph” to the end of the paragraph. (12) Retirement benefits schemes Chapter | Short title | Extent of repeal 1988 c. 1. | The Income and Corporation Taxes Act 1988. | In section 188(1), paragraph (c). In section 189, paragraph (b). In section 591(2)(g) the words “approved by the Board and”. Section 605(1) and (2). In section 612(1), the definition of “administrator”. 1. The repeals in sections 188 and 189 have effect in accordance with section 108 of this Act. 2. The repeal in section 591 has effect in accordance with section 107 of this Act. 3. The repeal of section 605(1) and (2) has effect in accordance with section 105 of this Act. 4. The repeal in section 612(1) has effect in accordance with section 103 of this Act. (13) Authorised unit trusts Chapter | Short title | Extent of repeal 1988 c. 1. | The Income and Corporation Taxes Act 1988. | In section 468, subsection (2), and in subsection (6) the definition of “distribution period”. Sections 468F and 468G. 1993 c. 34. | The Finance Act 1993. | In Schedule 6, paragraphs 4, 5 and 25(2). These repeals have effect in accordance with section 111 of and Schedule 14 to this Act. (14) Manufactured payments Chapter | Short title | Extent of repeal 1988 c.1. | The Income and Corporation Taxes Act 1988. | In paragraph 5 of Schedule 23A, in sub-paragraphs (2) and (4) the word “and” at the end of paragraph (b). These repeals have effect in accordance with section 123 of this Act. (15) Controlled Foreign Companies Chapter | Short title | Extent of repeal 1988 c. 1. | The Income and Corporation Taxes Act 1988. | In paragraph 2 of Schedule 25, in sub-paragraph (1), in paragraph (a) the words “or for some other period which, in whole or in part, falls within that accounting period” and the words following paragraph (d), and sub-paragraph (2). These repeals have effect in accordance with section 134(5) of this Act. (16) Repeals connected with foreign income dividends Chapter | Short title | Extent of repeal 1988 c. 1. | The Income and Corporation Taxes Act 1988. | In section 434(6A) the word “and” at the end of paragraph (a). In section 438(6) the words from “being” to “that profit,”. In section 731(9), in the definition of “interest” the words from “and in applying” to the end of paragraph (b). (17) Enterprise investment scheme Chapter | Short title | Extent of repeal 1988 c. 1. | The Income and Corporation Taxes Act 1988. | In section 257D(8)(b), the words “or under section 289”. In section 265(3)(b), the words “or under section 289”. In section 290A, subsection (10) and, in subsection (11), the definition of “prospectus”. In section 293, subsection (4) and subsections (9) to (11). Section 296(6). In section 297, in subsection (1) the words “(6) and” and in subsection (2) paragraphs (h) and (j). In section 298, in subsection (5) the definition of “property development” and subsections (6) to (8). Section 301(1), (2) and (7). Section 303(8), (10) and (11). In section 306(10), the second sentence. In section 307, in subsection (1) the words from “but” to the end and subsection (9). Section 308(6). Section 309. Section 310(10) and (11). In section 312, in subsection (1) the definitions of “fixed-rate preference share capital” and “the relevant period”. 1988 c. 39. | The Finance Act 1988. | Section 50. Schedule 4. 1990 c. 29. | The Finance Act 1990. | Section 73. 1992 c. 12. | The Taxation of Chargeable Gains Act 1992. | In section 231(1)(d) the words “(business expansion scheme)”. 1992 c. 48. | The Finance (No. 2) Act 1992. | Sections 38 to 40. These repeals have effect in relation to shares issued on or after 1st January 1994. (18) Deduction from income Chapter | Short title | Extent of repeal 1988 c. 1. | The Income and Corporation Taxes Act 1988. | In section 808 the words “In this section “securities” includes stocks and shares.” This repeal has effect in accordance with section 140 of this Act. (19) Qualifying lenders Chapter | Short title | Extent of repeal 1988 c. 1. | The Income and Corporation Taxes Act 1988. | Section 376(5). In section 379, the words “except in section 376(4) and (5)”. In section 828(4), “376(5)”. (20) Premiums referred to pension business Chapter | Short title | Extent of repeal 1988 c. 1. | The Income and Corporation Taxes Act 1988. | In section 431(4), in paragraph (d) the words “approved by the Board and” and in paragraph (e) the words “approved by the Board”. These repeals have effect in accordance with section 143 of this Act. (21) Business donations Chapter | Short title | Extent of repeal 1990 c. 29. | The Finance Act 1990. | Section 75. (22) Minor corrections Chapter | Short title | Extent of repeal 1965 c. 25. | The Finance Act 1965. | Section 87. Schedule 21. 1966 c. 18. | The Finance Act 1966. | In Schedule 5, paragraph 19. In Schedule 6, paragraph 23. 1970 c. 9. | The Taxes Management Act 1970. | In Schedule 4, paragraph 6. 1970 c. 10. | The Income and Corporation Taxes Act 1970. | In Schedule 15, in Part I of the Table in paragraph 11, the entry relating to the Finance Act 1966. 1988 c. 1. | The Income and Corporation Taxes Act 1988. | In section 43(1), the words “or IV”. In section 271— (a) in subsection (1)— (i) the words “or contract”, wherever they occur, (ii) in paragraph (b), the words “or the contract was made after that date”, and (iii) in paragraph (c), the words “or, as the case may be, the body with which the contract was made”, and (b) in subsection (2), paragraph (b) and the word “or” immediately preceding it. Section 614(1). In Schedule 11, in paragraph 8(b), the words “Chapter II of Part I of the 1968 Act or”. The repeals in sections 43 and 271 of, and Schedule 11 to, the Income and Corporation Taxes Act 1988 have effect in accordance with Schedule 17 to this Act. (23) Management: self-assessment etc. Chapter | Short title | Extent of repeal 1970 c. 9. | The Taxes Management Act 1970. | In section 11(1), the words “inspector or other”. Section 11A. In section 12, subsections (1) and (4). In section 33(2), the proviso. In section 95(3), the words from “and the references” to the end. Section 118(3). 1975 c. 45. | The Finance (No. 2) Act 1975. | Section 67(1). 1988 c. 1. | The Income and Corporation Taxes Act 1988. | Section 5. Section 10. In section 203(2)(dd), the words from “(being not less” to “due)”. Section 478. In section 824, subsection (5), in subsection (9), the words “a partnership” and the words “(within the meaning of section 111 of the Finance Act 1989)”, and subsection (10). 1992 c. 12 | The Taxation of Chargeable Gains Act 1992. | Section 283(5). 1. The repeal of section 118(3) of the Taxes Management Act 1970 has effect in accordance with section 199(2) of, and paragraph 34(3) of Schedule 19 to, this Act. 2. The repeal of section 5 of the Income and Corporation Taxes Act 1988— (a) except so far as it relates to partnerships whose trades, professions or businesses are set up and commenced before 6th April 1994, has effect in accordance with section 199(2) of this Act; and (b) so far as it so relates, has effect as respects the year 1997-98 and subsequent years of assessment. 3. The repeals in section 824 of the Income and Corporation Taxes Act 1988 has effect in accordance with section 199(2) of, and paragraph 41(4) of Schedule 19 to, this Act. 4. The other repeals have effect in accordance with section 199(2) of this Act. (24) Changes for facilitating self-assessment Chapter | Short title | Extent of repeal 1988 c. 1. | The Income and Corporation Taxes Act 1988. | In section 65, in subsection (1), the words “and sections 66 and 67” and the words “the year preceding”, in subsection (3), the words from “Nothing in this subsection” to the end, and in subsection (5), the words “subject to sections 66 and 67” and the words “the year preceding”, in each place where they occur. Sections 66 and 67. In section 96, in subsection (5), paragraph (b), in subsection (6), the words from “except that” to the end, and in subsection (7), paragraph (b). In section 113, in subsection (1), the words “and of section 114(3)(b)”, subsections (3) to (5) and, in subsection (6), the words from “and where” to the end. In section 114, in subsection (3), the words from “except that” to the end, and subsection (4). In section 115, subsections (1) to (3) and (6). In section 277, in subsection (1), the words “Subject to subsection (2) below”, paragraph (c) and the word “and” immediately preceding that paragraph, and subsection (2). Section 380(3). Section 381(6). Section 383. In section 384, in subsection (1), the words “(including any amount in respect of capital allowances which, by virtue of section 383, is to be treated as a loss)”, in subsection (2), the words “or an allowance in respect of expenditure incurred”, paragraph (b) and the word “or” immediately preceding that paragraph, and subsection (5). In section 385, subsections (2), (3), (5) and (8). Section 386(4). In section 388, in subsection (6), paragraphs (b) and (d) and the word “and” immediately preceding paragraph (d), and in subsection (7), the words from the beginning to “an earlier year; and”. In section 389, subsections (3) and (5) to (7). In section 397(1), the words from “and where” to the end. In section 521, in subsections (1) and (2), the words “or its basis period”. In section 528(1), the words “or its basis period”. In section 530, in subsections (4) and (5), the words “or its basis period”. In section 804(8), the definitions of “non-basis period” and “years of commencement” and the words “references to the enactments relating to cessation are references to sections 63, 67 and 113”. 1990 c. 1. | The Capital Allowances Act 1990. | In section 3, in subsections (1) and (2B) to (4), the words “or its basis period”, in each place where they occur. In section 4(10), the words “or of which the basis periods end on or before that date”. In section 7, in subsections (2) and (3), the words “or its basis period”. In section 8, in subsection (3), the words “or its basis period”, and in subsection (5), in paragraph (a), the words from “or” to the end. In section 9(3), the words “or its basis period”. In section 19(3), the words “or its basis period”, in each place where they occur. In section 21(8), the words “or its basis period”. In section 23(2), the words “or its basis period”. In section 24, in subsections (6), (6A) and (7), the words “or its basis period”, in each place where they occur. In section 25, in subsections (1) and (7), the words “or its basis period”. In section 33(3), the words “or, as the case may be, in its basis period”. In section 37, in subsections (2) and (9), the words “or its basis period”, in subsection (5), the words “or, as the case may be, in its basis period” and, in subsection (6), the words “or in the basis period for which”. In section 42(4), the words “or in the basis period for which”. In section 46(1), the words “or in the basis period for which”. In section 47(1), the words “or in the basis period for which”. In section 48, in subsections (3), (4) and (5), the words “or its basis period”. In section 49(2), the words “or its basis period”. In section 61(5), the words “or its basis period”. In section 62A(6), the words “or its basis period”. In section 67(6), the words “or its basis period”. In section 73(3), the words “or its basis period”. In section 79, in subsections (3) and (5), the words “or its basis period”, in each place where they occur. In section 85, in subsections (1), (3) and (4), the words “or its basis period”, in each place where they occur. In section 87(6), the words “or of which the basis periods end on or before that date”. In section 93(3), the words “or its basis period”. In section 99, in subsections (1) and (4), the words “or its basis period”. In section 101, in subsections (2) and (6) to (8), the words “or its basis period”. In section 121(4), the words “or its basis period” and the words “or, as the case may be, its basis period”. In section 124(3), the words “or its basis period”. In section 126(2), the words “or its basis period”, in each place where they occur. In section 128(1), the words “or its basis period”. In section 129(3), the words “or the basis periods for which”. In section 134(1), the words from “but where a writing-down allowance” to the end. In section 138(7), the words “or its basis period”. In section 148(7), the words “or its basis period”. In section 159, in subsections (4) and (6), the words “or its basis period”. In section 159A(4), the words “or its basis period”. 1991 c. 31. | The Finance Act 1991. | In section 72(8), the words “383(6), (7) and (8)”. 1994 c. 9. | The Finance Act 1994. | In section 118(6), the words “or its basis period”. 1. The repeal in section 65(3) of the Income and Corporation Taxes Act 1988 has effect in accordance with sections 207(6) and 218(1)(b) of this Act. 2. The repeal in section 96(6) of the Income and Corporation Taxes Act 1988 has effect in accordance with section 216(5) of this Act. 3. The repeal in section 96(7) of the Income and Corporation Taxes Act 1988 has effect in accordance with section 214(7) of this Act. 4. The following repeals, namely— (a) the repeals in sections 113, 114, 115, 277, 380, 381 and 386 of the Income and Corporation Taxes Act 1988; (b) the repeal of subsection (5) of section 384 of that Act; (c) the repeal of subsections (2) and (5) of section 385 of that Act; and (d) the repeal of subsection (3) of section 389 of that Act, have effect in accordance with section 215(4) of this Act. 5. The following repeals, namely— (a) the repeals in sections 384(1) and (2), 388, 397, 521, 528 and 530 of the Income and Corporation Taxes Act 1988; (b) the repeal of section 383 of that Act; (c) the repeal of subsections (5) to (7) of section 389 of that Act; (d) the repeals in the Capital Allowances Act 1990; (e) the repeal in section 72 of the Finance Act 1991; and (f) the repeal in section 118 of the Finance Act 1994, have effect in accordance with sections 211(2) and 218(1)(b) of this Act. 6. The repeals of subsections (3) and (8) of section 385 of the Income and Corporation Taxes Act 1988 have effect in accordance with section 209(7) of this Act. 7. The other repeals have effect in accordance with section 218(1) of this Act. 4 The following repeals, namely— (a) the repeals in sections 113, 114, 115, 277, 380, 381 and 386 of the Income and Corporation Taxes Act 1988; (b) the repeal of subsection (5) of section 384 of that Act; (c) the repeal of subsections (2) and (5) of section 385 of that Act; and (d) the repeal of subsection (3) of section 389 of that Act, have effect in accordance with section 215(4) of this Act. (25) Lloyd’s underwriters Chapter | Short title | Extent of repeal 1988 c. 1. | The Income and Corporation Taxes Act 1988. | Section 627. Section 641(2). 1993 c. 34. | The Finance Act 1993. | Section 171(3). In section 179, in subsection (2), the words “to subsection (3) below and”, and subsection (3). In section 182, subsections (2) to (4). Section 183(3). In section 184(1), the words “or the managing agent of a syndicate of which he is a member”. In Schedule 19, Part II. In Schedule 20, in paragraph 13(1), the words from “and a transfer” to the end. 1 The repeals in the Income and Corporation Taxes Act 1988 and in section 183 of the Finance Act 1993 have effect in accordance with section 228(4) of this Act. 2 The repeal in section 171 of the Finance Act 1993 has effect in accordance with paragraph 1(3)(b) of Schedule 21 to this Act. 3 The repeals in section 179 of the Finance Act 1993 have effect in accordance with paragraph 6(3) of that Schedule. 4 The repeals in section 182 of the Finance Act 1993 have effect in accordance with paragraph 7(2) of that Schedule. 5 The repeal in paragraph 13(1) of Schedule 20 to the Finance Act 1993 has effect in accordance with paragraph 16(3) of that Schedule. 6 The other repeals have effect in accordance with section 228(3) of this Act. Part VI Oil taxation Chapter | Short title | Extent of repeal 1975 c. 22. | The Oil Taxation Act 1975. | In section 2(9)(a)(i), the words “or, as the case may be”. In Schedule 3, in paragraph 2A, sub-paragraph (4). 1993 c. 34. | The Finance Act 1993. | Section 190(5)(b). 1 The repeals in the Oil Taxation Act 1975 have effect in accordance with section 236 of this Act. 2 The repeal in the Finance Act 1993 has effect in accordance with section 238 of this Act. Part VII Stamp duty (1) Exchange, partition, etc. Chapter | Short title | Extent of repeal 1891 c. 39. | The Stamp Act 1891. | In section 73, the words from first “upon” to “heritable property, or” and the words “exchange or”. In Schedule 1, the heading “Exchange or Excambion”. 1991 c. 31. | The Finance Act 1991. | In section 110, subsection (3)(e) and, in subsection (4), the words following “exempt property”. These repeals have effect in accordance with section 241(6) of this Act. (2)Production of instruments in Northern Ireland Chapter | Short title | Extent of repeal 1936 c. 33 (N. I.). | The Finance Act (Northern Ireland) 1936. | Section 9. This repeal has effect in accordance with section 245(8) of this Act. Part VIII Miscellaneous (1) Companies treated as non-resident Chapter | Short title | Extent of repeal 1988 c.1. | The Income and Corporation Taxes Act 1988. | In section 468F, in subsection (1)(c) the words “and not a dual resident” and in subsection (8) the definition of “dual resident”. In section 742(8) the words “, or regarded for the purposes of any double taxation arrangements having effect by virtue of section 788 as resident in a territory outside the United Kingdom,”. In section 745(4) the words “, or regarded for the purposes of any double taxation arrangements having effect by virtue of section 788 as resident in a territory outside the United Kingdom,”. Section 749(4A). Section 751(2)(bb). 1990 c.29. | The Finance Act 1990. | Section 66. In section 67, subsections (1) and (2). 1992 c.12. | The Taxation of Chargeable Gains Act 1992. | Section 139(3). Section 160. In section 166(2) the words “or a company” and the words “or company”. In section 171(2), paragraph (e) and the word “or” immediately preceding it. Section 172(3)(a). In section 175(2) the words from “or a company which” to the end of paragraph (b). Section 186. In section 187, in subsection (1)(a) the words “or 186” and in subsection (6) the words “or, as the case may be, section 186(2),” and the words “or, as the case may be, section 186(1)”. Section 188. In section 211(3) the words “(and would not be a gain on which, under any double taxation relief arrangements, it would not be liable to tax)”. 1993 c. 34. | The Finance Act 1993. | Section 61(3). These repeals have effect in accordance with section 251 of this Act. (2)Railway taxation provisions Chapter | Short title | Extent of repeal 1992 c. 12. | The Taxation of Chargeable Gains Act 1992. | In section 35(3)(d), the word “and” immediately preceding sub-paragraph (viii). This repeal shall be deemed to have come into force on 11th January 1994. (3)Assigned matters: minor corrections Chapter | Short title | Extent of repeal 1979 c. 2. | The Customs and Excise Management Act 1979. | In section 118A, subsection (7). 1983 c. 55. | The Value Added Tax Act 1983. | In Schedule 7, in paragraph 7, sub-paragraph (6).

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