Section 102.
Interpretation and application
1 (1) In this Schedule—
“the material date”, in relation to any property means, in the case of property falling within subsection (3) of the principal section, the date of the donor’s death and, in the case of property falling within subsection (4) of that section, the date on which the property ceases to be a property subject to a reservation;
“the principal section” means section 102 of this Act; and
“property subject to reservation” has the same meaning as in the principal section.
(2) Any reference in this Schedule to a disposal by way of gift is a reference to such a disposal which is made on or after 18th March 1986.
(3) This Schedule has effect for the purposes of the principal section and the 1984 Act.
2 (1) Where the disposal by way of gift and, at any time before the material date, the donee ceases to have possession and enjoyment of any of the property comprised in the gift, then on and after that time the principal section and the following provisions of this Schedule shall apply as if the property, if any, received by the donee in substitution for that property had been comprised in the gift instead of that property (but in addition to any other property comprised in the gift).
(2) This paragraph does not apply if the property disposed of by the gift—
(a) becomes settled property by virtue of the gift; or
(b) is a sum of money in sterling or any other currency.
(3) In sub-paragraph (1) above the reference to the property received by the donee in substitution for property comprised in the gift includes in particular—
(a) in relation to property sold, exchanged or otherwise disposed of by the donee, any benefit received by him by way if consideration for the sale, exchange or other disposition; and
(b) in relation to a debt or security, any benefit received by the donee in or towards the satisfaction or redemption thereof; and
(c) in relation to any right to acquire property, any property acquired in pursuance of that right.
(4) Where, at a time before the material date, the donee makes a gift of property comprised in the gift to him, or otherwise voluntarily divests himself of such property otherwise than for a consideration in money or money’s worth not less than the value of the property at that time, then, unless he does so in favour of the donor, he shall be treated for the purposes of the principal section and sub-paragraph (1) above as continuing to have possession and enjoyment of that property.
(5) For the purposes of sub-paragraph (4) above—
(a) a disposition made by the donee by agreement shall not be deemed to be made voluntarily if it made to any authority who, when the agreement is made, is authorised by, or is or can be authorised under, any enactment to acquire the property compulsorily; and
(b) a donee shall be treated as divesting himself, voluntarily and without consideration, of any interest in property which merges or is extinguished in another interest held or acquired by him in the same property.
(6) Where any shares in or debentures of a body corporate are comprised in a gift and the donee is, as the holder if those shares or debentures, issued with shares in or debentures of the same or any corporate, or granted any right to acquire any such shares or debentures, then, unless the issue or grant is made by way of exchange for the first-mentioned shares or debentures, the shares or debentures so issued, or the right granted, shall be treated for the purposes of the principal section and this Schedule as having been comprised in the gift in addition to any other property so comprised.
(7) In sub-paragraph (6) above the reference to an issue being made or right being granted to the donee as the holder of shares or debentures shall be taken to include any case in which an issue or grant is made to him as having been the holder of those shares or debentures, or is made to him in pursuance of an offer or invitation made to him as being or having been the holder of those shares or debentures, or of an offer or invitation in connection with which any preference is given to him as being or having been the holder thereof.
3 (1) Where either sub-paragraph (3)(c) or sub-paragraph (6) of paragraph 2 above applies to determine, for the purposes of the principal section, the property comprised in a gift made by the donor—
(a) the value of any consideration in money or money’s worth given by the donee for the acquisition in pursuance of the right referred to in the said sub-paragraph (3)(c) or for the issue or grant referred to in the said sub-paragraph (6), as the case may be, shall be allowed as a deduction in valuing the property comprised in the gift at any time after the consideration is given, but
(b) if any part (not being a sum of money) of that consideration consists of property comprised in the same as another gift from the donor and treated for the purposes of the 1984 Act as forming part of the donor’s estate immediately before his death or as being attributable to the value transferred by a potentially exempt transfer made by him, no deduction shall be made in respect of it under this sub-paragraph.
(2) For the purposes of sub-paragraph (1) above, there shall be left out of account so much (if any) of the consideration for any shares in debentures of a body corporate, or for the grant of any right to be issued with any shares or debentures, as consists in the capitalisation of reserves of that body corporate, or in the retention by that body corporate, by way of set-off or otherwise, of any property distributable by it, or is otherwise provided directly or indirectly out of the assets or at the expenses of that or any associated body corporate.
(3) For the purposes of sub-paragraph (2) above, two bodies corporate shall be deemed to be associated as if one has control of the other or if another person has control of both.
Donee predeceasing the material date
4 Where there is a disposal by way of gift and the donee dies before the date which is the material date in relation to any property comprised in the gift, paragraphs 2 and 3 above shall apply as if—
(a) he had not dies and the acts of his personal representatives were his acts; and
(b) property taken by another person under his testamentary dispositions or his intestacy (or partial intestacy) were taken under a gift made by him at the time of his death.
Termination of interests in possession
4A (1) This paragraph applies where—
(a) under section 102ZA of this Act, an individual (“D”) is taken to dispose of property by way of gift, and
(b) the property continues to be settled property immediately after the disposal.
(2) Paragraphs 2 to 4 above shall not apply but, subject to the following provisions of this paragraph, the principal section and the following provisions of this Schedule shall apply as if the property comprised in the gift consisted of the property comprised in the settlement on the material date, except in so far as that property neither is, nor represents, nor is derived from, property originally comprised in the gift.
(3) Any property which—
(a) on the material date is comprised in the settlement, and
(b) is derived, directly or indirectly, from a loan made by D to the trustees of the settlement,
shall be treated for the purposes of sub-paragraph (2) above as derived from property originally comprised in the gift.
(4) If the settlement comes to an end at some time before the material date as respects all or any of the property which, if D had died immediately before that time, would be treated as comprised in the gift,—
(a) the property in question, other than property to which D then becomes absolutely and beneficially entitled in possession, and
(b) any consideration (not consisting of rights under the settlement) given by D for any of the property to which D so becomes entitled,
shall be treated as comprised in the gift (in addition to any other property so comprised).
(5) Where, under any trust or power relating to settled property, income arising from that property after the material date is accumulated, the accumulations shall not be treated for the purposes of sub-paragraph (2) above as derived from that property.
Settled gifts
5 (1) Where there is a disposal by way of gift and the property comprised in the gift becomes settled property by virtue of the gift, paragraphs 2 to 4 above shall not apply but, subject to the following provisions of this paragraph, the principal section and the following provisions of this Schedule shall apply as if the property comprised in the gift consisted of the property comprised in the settlement on the material date, except in so far as that property neither is, not represents, nor is derived from, property originally comprised in the gift.
(2) If the settlement comes to an end at some time before the material date as respects all or any of the property which, if the donor had dies immediately before that time, would be treated as comprised in the gift,—
(a) the property in question other than property to which the donor then becomes absolutely and beneficially entitled in possession, and
(b) any consideration (not consisting of rights under the settlement) given by the donor for any purposes of the property to which he so becomes entitled,
shall be treated as comprised in the gift (in addition to any other property so comprised).
(3) Where property comprised in a gift does not become settled property by virtue of the gift, but is before the material date settled by the donee, sub-paragraphs (1) and (2) above shall apply in relation to property comprised in the settlement as if the settlement had been made by the gift; and for this purpose property which becomes settled property under any testamentary disposition of the donee or on his intestacy (or partial intestacy) shall be treated as settled by him.
(4) Where property comprised in a gift becomes settled property either by virtue of the gift or as mentioned in sub-paragraph (3) above, any property which—
(a) on the material date is comprised in the settlement, and
(b) is derived, directly or indirectly, from a loan made by the donor to the trustees of the settlement,
shall be treated for the purposes of sub-paragraph (1) above as derived from property originally comprised in the gift.
(5) Where, under any trust or power relating to settled property, income arising from that property after the material date is accumulated, the accumulations shall not be treated for the purposes of sub-paragraph (1) above as derived from that property.
Exclusion of benefit
6 (1) In determining whether any property which is disposed of by way of gift is enjoyed to the entire exclusion, or virtually to the entire exclusion, of the donor and of any benefit to him by contract or otherwise—
(a) in the case of property which is an interest in land or a chattel, retention or assumption by the donor of actual occupation of the land or actual enjoyment of an incorporeal right over the land, or actual possession of the chattel shall be disregarded if it is for full consideration in money or money’s worth;
(b) in the case of property which is an interest in land, any occupation by the donor of the whole or any part of the land shall be disregarded if—
(i) it results from a change in circumstances of the donor since the time of the gift, being a change which was unforseen at the time and was not brought about by the donor to receive the benefit of this provision; and
(ii) it occurs at a time when the donor has become unable to maintain himself through old age, infirmity or otherwise; and
(iii) it represents a reasonable provision by the donee for the care and maintenance of the donor; and
(iv) the donee is a relative of the donor or his spouse or civil partner;
(c) a benefit which the donor obtained by virtue of any associated operations (as defined in section 268 of the 1984 Act) of which the disposal by way of gift is one shall be treated as a benefit to him by contract or otherwise.
(2) Any question whether any property comprised in a gift was at any time enjoyed to the entire exclusion, or virtually to the entire exclusion, of the donor and of the benefit to him shall (so far as that question depends upon the identity of the property) be determind by reference to the property which is at that time treated as property comprised in the gift.
(3) In the application of this paragraph to Scotland, references to a chattel shall be construed as references to a corporeal moveable.
7 (1) Where arrangements are entered into under which—
(a) there is a disposal by way of gift which consists of or includes, or is made in connection with, a policy of insurance on the life of the donor or his spouse or civil partner or on their joint lives, and
(b) the benefits which will or may accrue to the donee as a result of the gift vary by reference to benefits accruing to the donor or his spouse or civil partner (or both of them) under that policy or under another policy (whether issued before, at the same time as or after that referred to in paragraph (a) above),
the property comprised in the gift shall be treated for the purposes of the principal section as not enjoyed to the entire exclusion, or virtually to the entire exclusion, of the donor.
(2) In sub-paragraph (1) above—
(a) the reference in paragraph (a) to a policy on the joint lives of the donor and his spouse or civil partner includes a reference to a policy on their joint lives and on the life of the survivor; and
(b) the reference in paragraph (b) to the benefits accruing to the donor or his spouse or civil partner (or both of them) includes a reference to benefits which accrue by virtue of the exercise of rights conferred on either or both of them.
Agricultural property and business property
8 (1) This paragraph applies where there is a disposal by way of gift of property which, in relation to the donor, is at that time—
(a) relevant business property within the meaning of Chapter I of Part V of the 1984 Act, or
(b) agricultural property, within the meaning of Chapter II of that Part, to which section 116 of that Act applies, or
(c) shares or securities to which section 122(1) of that Act applies (agricultural property of companies),
and that property is property subject to a reservation . . .
(1A) Where this paragraph applies—
(a) any question whether, on the material transfer of value, any shares or securities fall within any of paragraphs (aa) to (cc) of section 105(1) of the 1984 Act (certain shares or securities qualifying for relief) shall be determined, subject to the following provisions of this paragraph, as if the shares or securities were owned by the donor and had been owned by him since the disposal by way of gift; and
(b) subject to paragraph (a), any question whether, on the material transfer of value, relief is available by virtue of Chapter I or Chapter II of Part V of the 1984 Act and, if relief is available by virtue of Chapter II, what is the appropriate percentage of that relief, shall be determined, subject to the following provisions of this paragraph, as if, so far as it is attributable to the property comprised in the gift, that transfer were a transfer of value by the donee.
(2) For the purpose only of determining whether, on the transfer of value which, by virtue of sub-paragraph (1A)(b) above, the donee is assumed to make, the requirement of section 106 or, as the case may be, section 117 of the 1984 Act (minimum period of ownership or occupation) is fulfilled,—
(a) ownership by the donor prior to the disposal by way of gift shall be treated as ownership by the donee; and
(b) occupation by the donor prior to the disposal and any occupation by him after that disposal shall be treated as occupation by the donee.
(3) Where the property disposed of by way of gift consists of shares or securities falling within paragraph (c) of sub-paragraph (1) above, relief shall not be available by virtue of Chapter II of Part V of the 1984 Act on the material transfer of value unless—
(a) section 116 of the 1984 Act applies in relation to the value transferred by the disposal, and
(b) throughout the period beginning with the disposal and ending on the material date, the shares or securities are owned by the donee,
and for the purposes only of determining whether, on the transfer of value which, by virtue of sub-paragraph (1A)(b) above, the donee is assumed to make, the requirements of subsection (1) of section 123 of the 1984 Act are fulfilled, it shall be assumed that the requirement in paragraph (b) of that subsection (as to ownership of the shares or securities) is fulfilled.
(4) In this paragraph, “the material transfer of value” means, as the case may require,—
(a) the transfer of value under section 4 of the 1984 Act on the death of the donor; or
(b) the transfer of value under subsection (4) of the principal section on the property concerned ceasing to be subject to a reservation.
(5) If the donee dies before the material transfer of value, then, as respects any time after his death, any reference to his personal representatives or, as the case may require, the person (if any) by whom the property, shares or securities concerned were taken under a testamentary dispostition made by the donee or under his intestacy (or partial intestacy).
SCHEDULE 21 Modifications of Finance Act 1982, Schedule 18 in Relation to Elections Under Section 109 of this Act
Section 109.
General modifications
1 (1) For any reference in the 1982 Schedule to ethane there shall be substituted a reference to light gases, as defined in section 109 of this Act.
(2) Except as provided below, any reference in the 1982 Schedule to section 134 of the Finance Act 1982 shall be construed as a reference to section 109 of this Act.
Specific modifications
2 (1) In paragraph 1 (provisions as to the election), in sub-paragraph (2)(b) for the words “and not exceeding fifteen years” there shall be substituted “or in the case of an election made before 31st December 1986, beginning on 1st July 1986” and for sub-paragraph (2)(d) there shall be substituted—
(d) specify the purposes for which the light gases to which the election applies will be applied or used,
.
(2) At the end of that paragraph there shall be inserted the following sub-paragraph—
(4) If an election relates to light gases, then, in addition to the matters referred to in sub-paragraph (2) above, the election shall contain—
(a) a description of the characteristics of the supply by which the disposal or appropriation is intended to be effected; and
(b) if that supply is of such a description that, if it were under a contract at arm’s length, it is reasonable to expect that the price of the gas would vary with the level of the supply, a description of the pattern of supply which the party or parties to the election consider most probable.
3 (1) In paragraph 2 (conditions for acceptance of an election) in sub-paragraph (1) after the words “and (3)” there shall be inserted “and paragraph 2A”.
(2) In sub-paragraph (2) of that paragraph, after the words “such that” there shall be inserted “subject to paragraphs 2A and 3A below”.
4 After paragraph 2 there shall be inserted the following paragraph—
2A. —
(1) The provisions of this paragraph apply if, having regard to the pattern of supply described in an election as mentioned in paragraph 1(4)(b) above, it is reasonable to assume that, under a contract for the sale at arm’s length of the light gases to which the election applies, the consideration would include—
(a) any such payments as are referred to in subsection (2) of section 114 of the Finance Act 1984 (“take or pay” payments), or
(b) any capacity payments, as defined in subsection (5) of that section.
(2) The relevant contract—
(a) shall be assumed to be for the delivery of gas according to the pattern of supply described in the election; and
(b) shall be assumed to contain provision for such of the payments referred to in sub-paragraph (1) above as are appropriate to that pattern of supply.
(3) Sub-paragraph (1) of paragraph 2 above shall have effect as if for the words following “sale at arm’s length” there were substituted “of the light gases to which the election applies, the total sums payable under the contract in respect of deliveries of gas in any chargeable period would not differ materially from the sums determined in accordance with the price formula specified in the election for gases disposed of or appropriated in that period; and if the Board are not so satisfied they shall reject the election”.
(4) The price formula specified in the election shall contain provisions for determining sums corresponding to such of the payments referred to in sub-paragraph (1) above as, by virtue of sub-paragraph (2) above, are assumed to be provided for by the relevant contract.
5 (1) In paragraph 3 (definition of “the relevant contract”in sub-paragraph (1)) in paragraph (a) after the word “and”, in the first place where it occurs, there shall be inserted the words “which, subject to sub-paragraph (3) below” and in the words following paragraph (b) for the words from “is not” onwards, there shall be substituted “which, subject to paragraph 2A(2) above, is not necessarily a contract for the sale of light gases for the purposes specified in the election”.
(2) At the end of that paragraph there shall be added the following sub-paragraphs—
(3) In the case of an election which relates to light gases which are “excluded oil”, as defined in section 10(1) of the principal Act, sub-paragraph (1)(a) above shall have effect with the omission of the words from “and which” to “date of the election”.
(4) Sub-paragraph (4) of paragraph 2A of Schedule 3 to the principal Act (assumptions as to consents in determining price under an arm’s length contract) shall apply for the purposes of paragraphs 2 and 2A above as it applies for the purposes of paragraph 2 of that Schedule, substituting a reference to a relevant contract (as defined above) for any reference to the contract mentioned in paragraph 2(2) of that Schedule.
6 After paragraph 3 there shall be inserted the following paragraph—
Market value where paragraph 2A applies
3A (1) Where an election is accepted by the Board and the price formula contains provision for the determination of sums as mentioned in paragraph 2A(4) above, then, for the purpose of determining the market value of gas to which the election applies, section 114 of the Finance Act 1984 (which deals with the treatment of such payments as are referred to in paragraph 2A(1) above) shall have effect in relation to those sums and that gas as if—
(a) those sums were part of the consideration under a contract for the sale of gas to which the election applies, and
(b) that contract provided for delivery of the gas according to the pattern of supply described in the election,
and where the said section 114 has effect by virtue of this sub-paragraph, subsections (4), (6) and (7) of that section (which provide for and relate to the deemed delivery of one tonne of oil in certain periods) shall be treated for the purposes of the principal Act as providing for and relating to the deemed disposal or appropriation of one tonne of gas to which the election applies.
(2) Where sub-paragraph (1) above applies, the market value of the gas to which the election applies which is disposed of or appropriated in any chargeable period shall consist of—
(a) such amount (if any) as is determined in accordance with the price formula by reference to the quantity of gas disposed of or appropriated in that chargeable period; and
(b) any sums which, by virtue of sub-paragraph (1) above, either are treated as payments for gas supplied free of charge in that period or are treated as an additional element of the price received or receivable for gas disposed of or appropriated in that period.
(3) Where the market value of gas is determined as mentioned in sub-paragraph (2) above, any reference in the following provisions of this Schedule (however expressed) to the market value determined in accordance with the price formula is a reference to that value determined as mentioned in that sub-paragraph (that is to say, in accordance with the formula and section 114 of the Finance Act 1984 as applied by sub-paragraph (1) above).
(4) Where the market value of light gases to which an election applies is determined for a chargeable period as mentioned in sub-paragraph (2) above then, as respects a return for that period under paragraph 2 of Schedule 2 to the principal Act which is made by the participator who is the party or one of the parties to the election,—
(a) sub-paragraphs (2)(a)(iii) and (2)(b)(ii) of that paragraph (which require information with respect to each delivery or relevant appropriation of oil in the period) shall not apply in relation to the light gases to which the election applies; and
(b) there shall be included in his return a statement of the market value (determined as mentioned in sub-paragraph (2) above) of the light gases relevantly appropriated or disposed of by him in that period.
(5) Notwithstanding that, under sub-paragraph (2) above, a market value is determined for all the gas disposed of or appropriated in a particular chargeable period, for the purposes of determining—
(a) the market value referred to in section 2(5)(d) of the principal Act (stocks at the end of a period), and
(b) the market value referred to in subsection (1) or, as the case may be, subsection (2) of section 14 of that Act (valuation for corporation tax purposes of oil disposed of or appropriated),
then, except in a case where the only gas disposed of or appropriated in a particular chargeable period is a single tonne which, by virtue of sub-paragraph (1) above, is treated as being disposed of or appropriated, the market value determined as mentioned in sub-paragraph (2) above shall be apportioned rateably to each quantity of gas disposed of or appropriated in that period.
7 After paragraph 6 there shall be inserted the following paragraph—
Price formula no longer appropriate for pattern of supply, etc.
6A (1) In any case where it appears to the Board—
(a) that light gases to which an election applies are being disposed of or appropriated in a manner, to an extent or by a pattern of supply which is different from that which was taken into consideration in the acceptance of the election, and
(b) that if, at the time the Board were considering whether the election should be accepted, they had taken into account as a probability the manner, extent or pattern of supply by which the gases are in fact being disposed of, they would have rejected the election,
then, subject to sub-paragraph (4) below, the election shall not have effect with respect to any chargeable period beginning after the date on which the Board give notice under this paragraph to each of the parties to the election.
(2) Without prejudice to the generality of sub-paragraph (1) above, if at any time in a chargeable period the extent to which gases to which an election applies are disposed of or relevantly appropriated (including the case where none is so disposed of or appropriated) is such that, if the gas were being delivered under a contract at arm’s length,—
(a) the seller would be likely to incur financial penalties by reason of a failure to meet requirements arising from the pattern of supply described in the election, and
(b) those penalties would not be insubstantial,
that shall be a ground for the Board to give notice under this paragraph.
(3) A notice under this paragraph shall state that, by reason of the matters referred to in sub-paragraph (1) above, the Board are no longer satisfied that the price formula specified in the election is appropriate to the disposals or appropriations actually being made of gases to which the election applies.
(4) If, within the period of three months beginning on the date of a notice under this paragraph, the party or parties to the election give notice in writing to the Board—
(a) specifying a new price formula taking account of the manner, extent or pattern of supply by which the gases to which the election applies are being disposed of or appropriated, and
(b) containing, if appropriate, a description of the changed pattern of supply which, at the time of the notice, the party or parties to the election consider most probable,
then, if that new price formula is accepted by the Board in accordance with paragraph 7 below, so much of sub-paragraph (1) above as provides that the election shall not have effect with respect to certain periods shall not apply.
(5) If notice has been given under sub-paragraph (4) above and a new price formula has been accepted as mentioned in that sub-paragraph, then, for the purpose of determining, for any chargeable period beginning after the date on which the Board gave notice as mentioned in sub-paragraph (1) above, the market value of light gases to which the election applies, section 109 of the Finance Act 1986 shall have effect as if the new price formula were the formula specified in the election.
8 (1) In paragraph 7 (acceptance or rejection of new price formula) in sub-paragraph (2) after the words “paragraph 3” there shall be inserted “and, where appropriate, paragraphs 2A and 3A”; and at the end of paragraph (b) of that sub-paragraph there shall be inserted
or
(c) a new price formula specified in a notice under paragraph 6A(4) above
;
and for the words from “were specified” onwards there shall be substituted “had been specified in, and at the time of, the election and as if the circumstances giving rise to the new price formula had been in contemplation at that time”.
(2) In sub-paragraph (5) of that paragraph, after “6(5)(b)” there shall be inserted “or paragraph 6A(4)”.
9 (1) In paragraph 8 (appeals) in sub-paragraph (1) after paragraph (d) there shall be inserted the following paragraph—
(dd) under paragraph 6A above, that a price formula is no longer appropriate
.
(2) In sub-paragraph (4)(b) of that paragraph after “6(1)(b)” there shall be inserted “or paragraph 6A”.
10 In paragraph 9 (returns)—
(a) after “6(1)(b)” there shall be inserted “or paragraph 6A”; and
(b) for the words “section 134(3) of this Act” there shall be substituted “section 109(4) of the Finance Act 1986”; and
(c) in paragraph (b) after “6” there shall be inserted “or paragraph 6A”.
11 (1) In paragraph 11 (interpretation) sub-paragraph (1) shall be omitted.
(2) In sub-paragraph (2) of that paragraph the words from “to an election” to “and any reference” shall be omitted.
(3) In sub-paragraph (4) of that paragraph for the words “section 134(2)(a) of this Act” there shall be substituted “section 109(3)(a) of the Finance Act 1986”.
SCHEDULE 22 Broadcasting: Additional Payments by Programme Contractors
Section 111.
Part I Amendment of Broadcasting Act 1981
1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2 (1) Section 34 of the Act of 1981 (instalments payable on account by programme contractors in respect of additional payments) shall be amended as follows.
(2) In subsection (2)(b) the words from “when the” to the end shall be omitted.
(3) For subsection (3) there shall be substituted the following subsection—
(3) Where any amount falls to be paid to a programme contractor to adjust any overpayment made by him, that amount shall be paid to him—
(a) if the contract is for the supply of programmes to be broadcast for reception in areas or localities all of which are in Great Britain, out of the Consolidated Fund of the United Kingdom;
(b) if the contract is for the supply of programmes to be broadcast for reception in areas or localities all of which are in Northern Ireland, out of the Consolidated Fund of Northern Ireland; and
(c) if the contract is one which falls within subsection (2) of section 33, out of each of those Funds, apportioned in the same way as receipts are apportioned under subsection (3)(c) of that section.
3 (1) Section 35 of the Act of 1981 (provision for supplementing additional payments) shall be amended as follows.
(2) In paragraph (a) of subsection (1) the words “or is” shall be inserted after the word “is”, where it last occurs.
(3) For paragraph (b) of that subsection there shall be substituted the following paragraph—
(b) the deficiency is, or would be, wholly or mainly attributable to either or both of the following—
(i) excessive expenditure forming part of the expenditure by reference to which those additional payments fall to be calculated;
(ii) in the case of second category profits, the receipt of consideration for the provision of any programme which is less than that which the contractor would have received had the transaction in question been in all respects at arm’s length.
(4) In subsection (4), for the words “the accounting period to which it relates” there shall be substituted the words “the period of six months beginning with the date on which the programme contractor furnishes to the Authority, in accordance with the terms of his contract as a programme contractor, a copy of his audited accounts for the accounting period to which the order relates”.
(5) After subsection (2) there shall be inserted the following subsection—
(2A) In determining, for the purposes of subsection (1) of this section, whether in the case of a programme contractor any consideration received by him for the provision of any programme is less than that which the contractor would have received had the transaction in question been in all respects at arm’s length, the Authority or the Secretary of State, as the case may be, shall have regard to such matters as they or he may consider relevant, and in particular to any available information as to—
(a) the consideration received for the provision by the contractor of the programme in other comparable markets;
(b) the consideration received by that or any other programme contractor for the provision of other comparable programmes in the same market.
4—8. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
PART II Transitional Provisions
9 (1) In this paragraph—
“new statutory provisions” means the provisions of the Broadcasting Act 1981 as amended by this Act; and
“existing statutory provisions” means the provisions of that Act as they had effect immediately before the passing of this Act.
(2) Any contract between the Authority and a programme contractor which is in force immediately before the passing of this Act shall, until it is varied or superseded by a further contract between them or expires or is otherwise terminated (whichever first occurs) be deemed to be modified by virtue of this Schedule so as—
(a) to substitute provisions in conformity with the new statutory provisions for so much of the contract as is in accordance with the existing statutory provisions and is not in conformity with the new statutory provisions, and
(b) to incorporate in the contract such additional provisions as a contract between the Authority and a programme contractor is required to include in accordance with the new statutory provisions;
and (subject to paragraph 4 of Schedule 4 to the Act of 1981) any provisions of the contract which provide for arbitration as to any matters contained in the contract in accordance with the existing statutory provisions shall be construed as making the like provision for arbitration in relation to matters deemed to be included in the contract by virtue of this sub-paragraph.
(3) Where it appears to the Authority that the new statutory provisions call for the inclusion of additional terms in any such contract, but do not afford sufficient particulars of what those terms should be, the Authority may, after consulting the programme contractor, decide what those terms are to be.
(4) This paragraph shall not be taken to have effect in relation to any contract entered into by a programme contractor and any person other than the Authority before the passing of this Act.
10 (1) This paragraph applies in relation to any accounting period of a programme contractor which begins before 1st April 1986 and ends after 31st March 1986 (“the accounting period”).
(2) The additional payments payable by the programme contractor under section 32 of the Act of 1981 in relation to his profits for the accounting period shall be the aggregate of the following amounts—
(a) the amount payable by him on the assumption—
(i) that section 111 of this Act was not in force at any time during the accounting period; and
(ii) that his profits for the accounting period were reduced by multiplying them
by
X
X
+
Y
;
and
(b) the amount payable by him on the assumption that that section was in force throughout the accounting period and that both his first category profits for that period and his second category profits for that period were reduced by multiplying them
by
Y
X
+
Y;
where (taking any odd four days or more as a week)
X is the number of weeks in the accounting period falling before 1st April 1986; and
Y is the number of weeks in the accounting period falling after 31st March 1986.
(3) For the purposes of the application of paragraph 2C of Schedule 4 to the Act of 1981 in relation to losses incurred by the programme contractor during the accounting period, those losses shall be reduced by multiplying them
by
Y
X
+
Y;
where X and Y have the same meaning as in sub-paragraph (2) above.
Section 114.
Part I Customs and Excise: Miscellaneous
Chapter | Short title | Extent of repeal
1979 c. 4. | The Alcoholic Liquor Duties Act 1979. | In section 15, subsections (6A) and (6B), in subsection (7) the words “restriction or requirement” and in subsection (8) the words “restriction or requirement”.
In section 46(2), the word “accidentally”.
1981 c. 35. | The Finance Act 1981. | In Schedule 8, paragraphs 2(b) and 14(b).
1985 c. 54. | The Finance Act 1985. | Section 2.
Part II Vehicles Excise Duty
Chapter | Short title | Extent of repeal
1971 c. 10 | The Vehicles (Excise) Act 1971. | In section 23(f), the words from “and as” to “replacement”.
In paragraph 13 of Part I of Schedule 7, in the text of section 17(2) as modified, paragraph (a) and, in paragraph (b), the words from the beginning to “class”.
In paragraph 20 of Part I of Schedule 7, in the text of section 23 as modified, in subsection (1)(e) the words from “and for” to “book”.
1972 c. 10 (N.I.). | The Vehicles (Excise) Act (Northern Ireland) 1972. | In section 23(f), the words from “and as” to “replacement”.
In paragraph 13 of Part I of Schedule 9, in the text of section 17(2) as modified, paragraph (a) and, in paragraph (b), the words from the beginning to “class”.
In paragraph 20 of Part I of Schedule 9, in the text of section 23 as modified, in subsection (1)(e) the words from “and for” to “book”.
The repeals in paragraph 13 of Part I of Schedule 7 to the Vehicles (Excise) Act 1971 and paragraph 13 of Part I of Schedule 9 to the Vehicles (Excise) Act (Northern Ireland) 1972 do not have effect with respect to the surrender of licences taken out before 1st January 1987.
Part III Betting and Gaming Duties
Chapter or Number | Short title | Extent of repeal
1972 c. 11 (N.I.). | The Miscellaneous Transferred Excise Duties Act (Northern Ireland) 1972. | Part III.
In section 72(2), the words from the beginning to “Schedule 2”.
Schedules 1 and 2.
1974 c. 30. | The Finance Act 1974. | Section 2(2) (as it remains in force in relation to Northern Ireland).
1981 c. 63. | The Betting and Gaming Duties Act 1981. | In section 9(3)(a), the words “Northern Ireland or” and the words “of the Parliament of Northern Ireland or, as the case may be,”.
In section 12(4), the words from “and ”betting office licence”’ to the end.
In section 19(2) the words “Northern Ireland or” and the words “the Parliament of Northern Ireland or, as the case may be,”.
In section 20(2), the definition of “Great Britain”.
Section 35(4).
1985 c. 54. | The Finance Act 1985. | In Schedule 5, paragraph 8.
S.I. 1985/1204 (N.I. 11). | The Betting, Gaming, Lotteries and Amusements (Northern Ireland) Order 1985. | In Schedule 19, paragraphs 11 to 15 and 17.
These repeals—
(a) so far as they relate to general betting duty or pool betting duty, come into force on the betting commencement date (as defined in section 6 of this Act), but do not affect duty in respect of bets made before that date; and
(b) so far as they relate to bingo duty, come into force on the bingo commencement date (as so defined).
Part IV Licences Under the Customs and Excise Acts
Chapter | Short title | Extent of repeal
1979 c. 4. | The Alcoholic Liquor Duties Act 1979. | In section 4(3), in the Table, the words “licence year”.
Section 12(2) and (3).
Section 18(3) and (4).
In section 25(1)(b), the words “has in his possession or”.
Section 47(3) and (4).
Section 48(2) and (3).
Section 54(3).
Section 55(3).
In section 56(1)(a), the word “renewal”.
Section 75(3) and (4).
Section 81.
Section 83.
1979 c. 6. | The Matches and Mechanical Lighters Duties Act 1979. | Section 2(2) and (3).
Part V Income Tax and Corporation Tax: General
Chapter | Short title | Extent of repeal
1970 c. 10. | The Income and Corporation Taxes Act 1970. | In section 457(1A), the words from “and does not” to the end.
In Schedule 8, paragraph 12.
1972 c. 41. | The Finance Act 1972. | In section 100(6), the words from “if the limit” to “the relevant income and”.
Section 103(1) to (3).
Section 107(3).
1974 c. 30. | The Finance Act 1974. | Section 22(2).
Section 37(2).
1977 c. 36. | The Finance Act 1977. | In section 32(6), paragraph (b), and in paragraph (c) the words “or (b)”.
1980 c. 48. | The Finance Act 1980. | In Schedule 10, paragraphs 2 and 22.
1983 c. 28. | The Finance Act 1983. | In Schedule 5, paragraph 5(8) to (11) and paragraph 7(3).
1984 c. 43. | The Finance Act 1984. | Section 20(1) and (2).
1985 c. 54. | The Finance Act 1985. | Section 49.
1 The repeal in section 457(1A) of the Income and Corporation Taxes Act 1970 and the repeal of section 49 of the Finance Act 1985 have effect for the year 1986–87 and subsequent years of assessment.
2 Subject to section 45(4) of this Act, the repeal in Schedule 8 to the Income and Corporation Taxes Act 1970 does not have effect with respect to any payment which, under section 187(4) of that Act, is treated as income received before 4th June 1986.
3 The repeal in section 100(6) of the Finance Act 1972 has effect with respect to accounting periods beginning on or after 3rd June 1986.
4 The repeal of section 107(3) of the Finance Act 1972 has effect where a company ceases to carry on a trade, or part of a trade, after 18th March 1986, subject to the application of section 42(3) of this Act with the words “the repeal does not” substituted for “those amendments do not”.
5 The repeal of section 22(2) of the Finance Act 1974 has effect for the year 1986–87 and subsequent years of assessment.
6 The repeals in section 32(6) of the Finance Act 1977 have effect for the year 1984–85 and subsequent years of assessment.
7 The repeals in Schedule 5 to the Finance Act 1983 have effect in relation to shares issued at any time after 18th March 1986.
8 The repeals in section 20 of the Finance Act 1984 do not have effect with respect to any financial year ending before 1st April 1986.
Part VI Income Tax and Corporation Tax: Capital Allowances
Chapter | Short title | Extent of repeal
1968 c. 3. | The Capital Allowances Act 1968. | Sections 51 to 66.
Section 68.
In section 70(3), the words from “and, in the case of” to “direct”.
Section 74(6).
In section 75(1), the word “61,”.
Section 78(3).
In section 79(4), the words “ and section 65(1)”.
In section 83(1), the words “or section 56”.
In section 85(1)(c), the words “other than section 60”.
Schedules 5 and 6.
In Schedule 7, paragraph 4(2)(c).
1971 c. 68. | The Finance Act 1971. | Section 52.
1973 c. 51. | The Finance Act 1973. | Section 31(6)(c).
1978 c. 42. | The Finance Act 1978. | Section 39.
1985 c. 54. | The Finance Act 1985. | Section 62.
1 The repeals of sections 68 and 74(6) of the Capital Allowances Act 1968 and section 39 of the Finance Act 1978 do not have effect with respect to expenditure incurred before 1st April 1986 nor with respect to expenditure under existing contracts, as defined in section 56(2) of this Act.
2 The remaining repeals, apart from the repeal of section 62 of the Finance Act 1985, have effect subject to the provisions of Schedule 14 to this Act.
Part VII Capital Gains
Chapter | Short title | Extent of repeal
1984 c. 43. | The Finance Act 1984. | In Schedule 13, paragraphs 2 and 3.
1985 c. 54. | The Finance Act 1985. | Section 67(1).
Part VIII Securities
Chapter | Short title | Extent of repeal
1970 c. 10. | The Income and Corporation Taxes Act 1970. | Section 475(6).
1985 c. 54. | The Finance Act 1985. | In Schedule 23, paragraphs 41 and 42.
These repeals have effect in accordance with paragraphs 1(5) and 2(2) of Schedule 18 to this Act.
Part IX Stamp Duty
(1) Reconstructions etc.
Chapter | Short title | Extent of repeal
1927 c. 10. | The Finance Act 1927. | Section 55.
1928 c. 17. | The Finance Act 1928. | Section 31.
1928 c. 9 (N.I.). | The Finance Act (Northern Ireland) 1928. | Section 4.
1936 c. 23 (N.I.). | The Finance (Companies’ Stamp Duty) Act (Northern Ireland) 1936. | Section 1.
1980 c. 48. | The Finance Act 1980. | In Schedule 18, paragraph 12(1) and (1A).
1985 c. 54. | The Finance Act 1985. | Sections 78, 79 and 80.
1986 c. 41. | The Finance Act 1986. | Section 73.
(2) Loan Capital
Chapter | Short title | Extent of repeal
1963 c. 25. | The Finance Act 1963. | In section 62, subsections (2) and (6).
1963 c. 22. (N.I.). | The Finance Act (Northern Ireland) 1963. | In section 11, subsections (2) and (5).
1967 c. 54. | The Finance Act 1967. | Section 29.
1967 c. 20 (N.I.). | The Finance Act (Northern Ireland) 1967. | Section 6.
1974 c. 30. | The Finance Act 1974. | In Schedule 11, paragraphs 5 and 15.
In Schedule 12, paragraphs 7 and 8.
1976 c. 40. | The Finance Act 1976. | Section 126.
1980 c. 48. | The Finance Act 1980. | Section 96.
1981 c. 35. | The Finance Act 1981. | Section 109.
(3) Bearer Letters of Allotment etc.
Chapter | Short title | Extent of repeal
1891 c. 39. | The Stamp Act 1891. | In Schedule 1, in the heading “Bearer Instrument”, paragraph 2 of the exemptions.
(4) Changes in Financial Institutions
Chapter or Number | Short title | Extent of repeal
1920 c. 18. | The Finance Act 1920. | Section 42.
1961 c. 36. | The Finance Act 1961. | Section 34.
1961 c. 10 (N.I.). | The Finance Act (Northern Ireland) 1961. | Section 4.
1973 c. 51. | The Finance Act 1973. | In Schedule 21, paragraphs 1 and 3.
S.I. 1973/1323 (N.I. 18). | The Finance (Miscellaneous Provisions) (Northern Ireland) Order 1973. | In Schedule 3, paragraphs 1 and 3.
1976 c. 40. | The Finance Act 1976. | In section 127, in subsection (1) the words “which is executed for the purposes of a stock exchange transaction”, subsections (2) and (3), in subsection (5), the definitions of “jobber” and “stock exchange transaction”, and in subsection (7) the words “and this section”.
1980 c. 48. | The Finance Act 1980. | Section 100.
1 The repeals under (1) above have effect in relation to any instrument executed in pursuance of a contract made on or after the day on which the rule of The Stock Exchange that prohibits a person from carrying on business as both a broker and a jobber is abolished.
2 The repeals under (2) above have effect in relation to any instrument to which section 79 of this Act applies.
3 The repeals under (4) above have effect as provided by the Treasury by order made by statutory instrument, and different provision may be made for different repeals.
Part X Inheritance Tax
Chapter | Short title | Extent of repeal
1984 c. 51. | The Capital Transfer Tax Act 1984. | In section 7(1)(a), the word “appropriate”.
Sections 148 and 149.
In section 167(2), the words from “and shall not” to the end.
Section 204(4).
In section 236(3), the words “149”.
In Schedule 2, in paragraphs 2 and 4, the words “the first of”, in paragraph 3, the words “the second of”, and paragraph 7.
1 The repeals of sections 148 and 149 of the Capital Gains Tax Act 1984 and in sections 167 and 236 of, and Schedule 2 to, that Act have effect where the donee’s transfer was made on or after 18th March 1986.
2 The remaining repeals have effect with respect to transfers of value made, and other events occurring, on or after 18th March 1986.
Part XI Broadcasting: Additional Payments by Programme Contractors
Chapter | Short title | Extent of repeal
1981 c. 68. | The Broadcasting Act 1981. | In section 32(9), the words “to amend subsections (4) and (5)”.
In section 34(2)(b), the words from “when the” to the end.
In section 35(2)(a) and (b), the word “relevant”.
1984 c. 46. | The Cable and Broadcasting Act 1984. | Section 40(3).
These repeals shall be deemed to have come into force on 1st April 1986.