Law

Finance Act 1998

United Kingdom · statute

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In force since 2026-03-18, 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 197aace9f49f3501fa55ddd27c5058bca385b34b04fde2aeb246650378825129

Contents: 175 provisions
  1. Title and introductory text
  2. 1 Rate of duty on beer.
  3. 2 Adjustment of rates of duty on sparkling liquors.
  4. 3 Rates of duty on wine and made-wine.
  5. 4 Rates of duty on cider.
  6. 5 Drawback of excise duty on beer.
  7. 6 Charge on production without delivery.
  8. 7 Rates of duties and rebates.
  9. 8 Ultra low sulphur diesel.
  10. 9 Mixtures of heavy oils.
  11. 10 Rates of tobacco products duty.
  12. 11 Rates of gaming duty.
  13. 12 Rates of amusement machine licence duty.
  14. 13 Further exception for thirty-five-penny machines.
  15. 14 Video machines.
  16. 15 Fiscal representatives.
  17. 16 Rates of duty where pollution reduced.
  18. 17 Restriction of exemption for old vehicles.
  19. 18 Regulations relating to nil licences.
  20. 19 Failure to pay amount required in respect of void licence.
  21. 20 Assessments for excise duty purposes.
  22. 21 Deemed supplies.
  23. 22 Changes of place of supply: transitional.
  24. 23 Bad debt relief.
  25. 24 Long leases in Scotland.
  26. 25 Charge and rates for 1998-99.
  27. 26 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  28. 27 Married couple’s allowance etc. in and after 1999-00.
  29. 28 Charge and rates for financial year 1998.
  30. 29 Charge and rates for financial year 1999.
  31. 30 Corporation tax: due and payable date.
  32. 31 Abolition of advance corporation tax.
  33. 32 Unrelieved surplus advance corporation tax.
  34. 33 Relief for interest payable under the Tax Acts.
  35. 34 Charge to tax on interest payable under the Tax Acts.
  36. 35 Further provision about interest payable under the Tax Acts.
  37. 36 Arrangements with respect to payment of corporation tax.
  38. 37 Abolition of periodic accounting.
  39. 38 Taxation of rents and other receipts from land.
  40. 39 Land managed as one estate and maintenance funds for historic buildings.
  41. 40 Treatment of premiums as rent.
  42. 41 Tied premises: receipts and expenses treated as those of trade.
  43. 42 Computation of profits of trade, profession or vocation.
  44. 43 Barristers and advocates in early years of practice.
  45. 44 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  46. 45 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  47. 46 Minor and consequential provisions about computations.
  48. 47 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  49. 48 Gifts of money for relief in poor countries.
  50. 54 Amendments consequential on sections 50 to 53.
  51. 55 Construction workers supplied by agencies.
  52. 56 Transitional provisions in connection with section 55.
  53. 57 Sub-contractors in the construction industry.
  54. 58 Payments and other benefits in connection with termination of employment, etc.
  55. 59 Car fuel.
  56. 60 Reductions for road fuel gas cars.
  57. 61 Travelling expenses.
  58. 62 Provision preventing manipulation of profit periods.
  59. 70 Qualifying trades for EIS and VCTs.
  60. 71 Pre-arranged exits from EIS.
  61. 72 Qualifying holdings for VCTs after 2nd July 1997.
  62. 73 Other changes to requirements for VCTs.
  63. 74 Other changes to EIS etc.
  64. 75 Use of PEPs powers to provide for accounts.
  65. 76 Tax credits for accounts and for PEPs.
  66. 77 The insurance element etc.
  67. 78 Phasing out of TESSAs.
  68. 79 Relief for loan to acquire interest in a close company.
  69. 80 Relief for losses on unlisted shares in trading companies.
  70. 81 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  71. 82 Carry forward of non-trading deficit on loan relationships.
  72. 83 First-year allowances for investment in Northern Ireland.
  73. 84 First-year allowances for small businesses etc.
  74. 85 First-year allowances: consequential amendments etc.
  75. 86 Life policies etc.
  76. 87 Non-resident insurance companies: tax representatives.
  77. 88 Overseas life assurance business.
  78. 89 Personal portfolio bonds.
  79. 90 Distributions to friendly societies.
  80. 91 Provisional repayments in connection with pension business.
  81. 92 Approved retirement benefit schemes etc.
  82. 93 Benefits received under non-approved retirement benefits scheme.
  83. 94 Approval of personal pension schemes.
  84. 95 Personal pensions: charge on withdrawal of approval.
  85. 96 Information relating to personal pension schemes etc.
  86. 97 Notices to be given to scheme administrator.
  87. 98 Assessments on scheme administrators.
  88. 99 Extension of provisions relating to guaranteed returns.
  89. 100 Accrued income scheme.
  90. 101 Dealers in securities etc.
  91. 102 Manufactured dividends.
  92. 103 Restriction of relief on certain interest and dividends.
  93. 104 Adjustments of interest and dividends for spared tax etc.
  94. 105 Meaning of “financial expenditure".
  95. 106 Underlying tax reflecting interest or dividends.
  96. 107 Notification of foreign tax adjustment.
  97. 108 New regime for transfer pricing etc.
  98. 109
  99. 110 Determinations requiring the sanction of the Board.
  100. 111 Notice to potential claimants.
  101. 112 Exempt activities.
  102. 113 Miscellaneous amendments.
  103. 114 Postponed corporation tax.
  104. 115 Information powers where ownership changes.
  105. 116 Provisions supplemental to sections 114 and 115.
  106. 117 Company tax returns, assessments and related matters.
  107. 118 Claims for income tax purposes.
  108. 119 Evidential provisions in PAYE regulations.
  109. 120 Rate of CGT for trustees etc.
  110. 121 Taper relief for CGT.
  111. 122 Freezing of indexation allowance for CGT.
  112. 123 Abolition of pooling for CGT.
  113. 124 New identification rules for CGT.
  114. 125 Indexation and share pooling etc.
  115. 126 Capital gains on stock dividends.
  116. 127 Charge to CGT on temporary non-residents.
  117. 128 Disposal of interests in a settlement.
  118. 129 Attribution of gains to settlor in section 10A cases.
  119. 130 Charge on beneficiaries of settlements with non-resident settlors.
  120. 131 Charge on settlors of settlements for grandchildren.
  121. 132 Charge on settlors of pre-19th March 1991 settlements.
  122. 133 Transfer within group to investment trust.
  123. 134 Transfer of company’s assets to venture capital trust.
  124. 135 Transfer within group to venture capital trust.
  125. 136 Incorporated friendly societies.
  126. 137 Pre-entry gains.
  127. 138 Pre-entry losses.
  128. 139 De-grouping charges.
  129. 140 Phasing out of retirement relief.
  130. 141 Abolition of certain other CGT reliefs.
  131. 142 Property of historic interest etc.
  132. 143 Removal of exemption for gifts for public benefit.
  133. 144 Maintenance funds for historic buildings, etc.
  134. 145 Accounting for property accepted in satisfaction of tax.
  135. 146 Travel insurance: higher rate tax.
  136. 147 Taxable intermediaries.
  137. 148 Provisional collection of landfill tax.
  138. 149 Stamp duty on conveyance or transfer on sale.
  139. 150 Relief from double stamp duties etc.
  140. 151 Depositary receipts and clearance services: exchanges of shares.
  141. 152 Gas valuation.
  142. 153 Reduction and abolition of gas levy.
  143. 154 Repeal of Customs Duties (Dumping and Subsidies) Act 1969.
  144. 155 Code for fiscal stability.
  145. 156 Annual Budget documents.
  146. 157 Supplementary powers of the Comptroller and Auditor General.
  147. 158 Treasury’s position regarding their own securities.
  148. 159 Treasury bills.
  149. 160 National loans.
  150. 161 Non-FOTRA securities.
  151. 162 Accounting statements relating to National Savings.
  152. 163 Adoption of single currency by other member States.
  153. 164 Interpretation.
  154. 165 Repeals.
  155. 166 Short title.
  156. SCHEDULE 1 Rates of duty where pollution reduced
  157. SCHEDULE 2 Assessments for excise duty purposes
  158. SCHEDULE 3 Advance corporation tax
  159. SCHEDULE 4 Interest payable under the Tax Acts by or to companies
  160. SCHEDULE 5 Rent and other receipts from land
  161. SCHEDULE 6 Adjustment on change of accounting basis
  162. SCHEDULE 7 Removal of unnecessary references to gains
  163. SCHEDULE 12 EIS and VCTs: meaning of qualifying trade
  164. SCHEDULE 13 Changes to EIS etc
  165. SCHEDULE 14 Life policies, life annuities and capital redemption policies
  166. SCHEDULE 16 Transfer pricing etc: new regime
  167. SCHEDULE 17 Controlled foreign companies
  168. SCHEDULE 18 Company tax returns, assessments and related matters
  169. SCHEDULE 19 Company tax returns, etc.: minor and consequential amendments
  170. SCHEDULE 21 Amendments in connection with taper relief
  171. SCHEDULE 22 Transitional provision and consequential amendments for section 131
  172. SCHEDULE 23 Transitional provision in connection with section 132
  173. SCHEDULE 25 Property of historic interest etc
  174. SCHEDULE 26 National loans
  175. SCHEDULE 27 Repeals

Proposed changes to this act

No one has proposed a change to this act yet.

175 provisions

40 Treatment of premiums as rent.

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41 Tied premises: receipts and expenses treated as those of trade.

(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2) In section 156 of the Taxation of Chargeable Gains Act 1992 (replacement of business assets: buildings and land), for subsection (4) substitute— (4) Where section 98 of the Taxes Act applies (tied premises: receipts and expenses treated as those of trade), the trader shall be treated, to the extent that the conditions in subsection (1) of that section are met in relation to premises, as occupying as well as using the premises for the purposes of the trade. . (3) The above amendments have effect on and after 17th March 1998, subject to the following transitional provisions. In those provisions— “before commencement” and “after commencement” mean, respectively, before 17th March 1998 and on or after that date; and “the new section 98” means the section as substituted by subsection (1) above. (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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42 Computation of profits of trade, profession or vocation.

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43 Barristers and advocates in early years of practice.

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44 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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45 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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46 Minor and consequential provisions about computations.

(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3) In the provisions of the Tax Acts which refer to the subject of the charge under Case I or II of Schedule D as “profits or gains” or “profits and gains" of a trade, profession or vocation— (a) for “profits or gains" or “profits and gains", wherever occurring, substitute “ profits ”, and (b) for “arising or accruing", in reference to such profits or gains, substitute “ arising ”. The provisions affected are listed in Schedule 7 to this Act.

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47 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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48 Gifts of money for relief in poor countries.

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54 Amendments consequential on sections 50 to 53.

(1) The Taxation of Chargeable Gains Act 1992 shall be amended as follows. (2) After subsection (5) of section 120 (increase of expenditure by reference to tax charged in relation to shares) there shall be inserted the following subsections— (5A) Where an amount is chargeable to tax under section 140A of the Taxes Act in respect of— (a) the acquisition or disposal of any interest in shares, or (b) any interest in shares ceasing to be only conditional, the relevant amount is a sum equal to the amount so chargeable. (5B) Where an amount is chargeable to tax under section 140D of the Taxes Act in respect of the conversion of shares, the relevant amount is a sum equal to the amount so chargeable. (3) In subsection (7) of that section— (a) after “(5)," there shall be inserted “ , (5A), (5B) ”; and (b) after “138" there shall be inserted “ , 140A, 140D ”. (4) After that subsection there shall be inserted the following subsection— (8) For the purposes of subsection (5A) above this section shall have effect as if references in this section to shares included anything referred to as shares in section 140A of the Taxes Act. (5) After section 149A there shall be inserted the following section— Employee incentive schemes: conditional interests in shares. 149B (1) Where— (a) an individual has acquired an interest in any shares or securities which is only conditional, (b) that interest is one which for the purposes of section 140A of the Taxes Act is taken to have been acquired by him as a director or employee of a company, and (c) by virtue of section 17(1)(b) the acquisition of that interest would, apart from this section, be an acquisition for a consideration equal to the market value of the interest, section 17 shall not apply for calculating the consideration. (2) Instead, the consideration for the acquisition shall be taken (subject to section 120) to be equal to the actual amount or value of the consideration given for that interest as computed in accordance with section 140B of the Taxes Act. (3) This section shall apply in relation only to the individual making the acquisition and, accordingly, shall be disregarded in calculating the consideration received by the person from whom the interest is acquired. (4) Expressions used in this section and in section 140A of the Taxes Act have the same meanings in this section as in that section. (6) This section has effect in relation to disposals on or after 17th March 1998 of interests and shares acquired on or after that date.

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55 Construction workers supplied by agencies.

(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3) Subsections (1) and (2) above have effect in relation to— (a) any payments made on or after 6th April 1998 other than any made in respect of services rendered before that date; and (b) any payments made before 6th April 1998 in respect of services to be rendered on or after that date.

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56 Transitional provisions in connection with section 55.

(1) Subject to subsection (6) below, subsection (2) below applies if— (a) a construction trade is being carried on by a person (“the sub-contractor") at the end of the year 1997-98; and (b) there are receipts of that trade which, but for section 134(5)(c) of the Taxes Act 1988, would have fallen to be treated for the year 1997-98 as the emoluments of an office or employment. (2) Where this subsection applies, then, subject to subsections (4) and (5) below— (a) the trade shall be deemed to have been permanently discontinued at the end of the year 1997-98; and (b) to the extent (if any) that the trade includes activities in addition to the rendering of services falling by virtue of section 55 to be treated as the duties of an office or employment, a new trade shall be deemed to have been set up and commenced on 6th April 1998. (3) Subsection (4) below applies if— (a) a construction trade (“the old trade”) is deemed by virtue of subsection (2)(a) above to have been permanently discontinued; and (b) a construction trade (“the new trade")— (i) is deemed by virtue of subsection (2)(b) above to have been set up and commenced; or (ii) (where sub-paragraph (i) above does not apply) is actually set up and commenced in the year 1998-99. (4) Where this subsection applies then, notwithstanding the deemed discontinuance, the old trade and the new trade shall be treated as the same for the purposes of section 83 of the Income Tax Act 2007 (carry-forward of losses against subsequent profits). (5) An officer of the Board shall not become entitled by virtue of anything in this section to give a direction under paragraph 3(2) of Schedule 20 to the Finance Act 1994 (power to revise assessment so that made on the actual basis) in the case of a person whose trade is deemed under subsection (2) above to cease on 5th April 1998. (6) Subsection (2) above does not apply if the sub-contractor by notice to an officer of the Board otherwise elects. (7) An election under subsection (6) above— (a) if it relates to a trade carried on by an individual, must be included in a return under section 8 of the Taxes Management Act 1970 which is made and delivered in that individual’s case on or before the day on which it is required to be made and delivered under that section; and (b) if it relates to a trade carried on by persons in partnership, must be included in a return under section 12AA of that Act which is made and delivered in the partners’ case, or in the case of any one or more of them, on or before the day specified in relation to that return under subsection (2) or (3) of that section. (8) In this section “construction trade” means a trade consisting in or including the rendering of services under contracts relating to construction operations (within the meaning of section 74 of the Finance Act 2004). (9) Where at any time on or after 17th March 1998 and before the day on which this Act is passed any election corresponding to an election under subsection (6) above has been made under a resolution of the House of Commons having effect in accordance with the provisions of the Provisional Collection of Taxes Act 1968, this section has effect, on and after the day on which this Act is passed, as if that election were an election under subsection (6) above.

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57 Sub-contractors in the construction industry.

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58 Payments and other benefits in connection with termination of employment, etc.

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59 Car fuel.

(1) In section 158 of the Taxes Act 1988 (car fuel) for the Tables in subsection (2) (tables of cash equivalents) there shall be substituted— TABLE A Cylinder capacity of car in cubic centimetres | Cash equivalent 1,400 or less | £1,010 More than 1,400 but not more than 2,000 | £1,280 More than 2,000 | £1,890 TABLE AB Cylinder capacity of car in cubic centimetres | Cash equivalent 2,000 or less | £1,280 More than 2,000 | £1,890 TABLE B Description of car | Cash equivalent Any car | £1,890 (2) This section shall have effect for the year 1998-99 and subsequent years of assessment.

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60 Reductions for road fuel gas cars.

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61 Travelling expenses.

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62 Provision preventing manipulation of profit periods.

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70 Qualifying trades for EIS and VCTs.

(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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71 Pre-arranged exits from EIS.

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72 Qualifying holdings for VCTs after 2nd July 1997.

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73 Other changes to requirements for VCTs.

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74 Other changes to EIS etc.

(1) Schedule 13 to this Act, which amends the provisions mentioned in subsection (2) below, shall have effect. (2) The provisions are— (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (b) sections 150A and 150B of the Taxation of Chargeable Gains Act 1992 (EIS relief in respect of chargeable gains); (c) Schedule 5B to that Act (EIS deferral of chargeable gains); and (d) that Chapter as it has effect in relation to shares issued before 1st January 1994 (BES income tax relief) and section 150 of that Act (BES relief in respect of chargeable gains). (3) Unless the contrary intention appears, the amendments made by that Schedule have effect in relation to shares issued on or after 6th April 1998.

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75 Use of PEPs powers to provide for accounts.

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76 Tax credits for accounts and for PEPs.

(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Propose a change

77 The insurance element etc.

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78 Phasing out of TESSAs.

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79 Relief for loan to acquire interest in a close company.

(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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80 Relief for losses on unlisted shares in trading companies.

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81 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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82 Carry forward of non-trading deficit on loan relationships.

(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4) The amendments made by this section shall be deemed always to have had effect.

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83 First-year allowances for investment in Northern Ireland.

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84 First-year allowances for small businesses etc.

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85 First-year allowances: consequential amendments etc.

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86 Life policies etc.

Schedule 14 to this Act (which makes provision in relation to the taxation of life policies etc under Chapter II of Part XIII of the Taxes Act 1988) shall have effect.

Propose a change

87 Non-resident insurance companies: tax representatives.

After section 552 of the Taxes Act 1988 (duty of insurers to provide certain information) there shall be inserted— Tax representatives. 552A (1) This section has effect for the purpose of securing that, where it applies to an overseas insurer, another person is the overseas insurer’s tax representative. (2) In this section “overseas insurer” means a person who is not resident in the United Kingdom who carries on a business which consists of or includes the effecting and carrying out of— (a) policies of life insurance; (b) contracts for life annuities; or (c) capital redemption policies. (3) This section applies to an overseas insurer— (a) if the condition in subsection (4) below is satisfied on the designated day; or (b) where that condition is not satisfied on that day, if it has subsequently become satisfied. (4) The condition mentioned in subsection (3) above is that— (a) there are in force relevant insurances the obligations under which are obligations of the overseas insurer in question or of an overseas insurer connected with him; and (b) the total amount or value of the gross premiums paid under those relevant insurances is £1 million or more. (5) In this section “relevant insurance” means any policy of life insurance, contract for a life annuity or capital redemption policy in relation to which this Chapter has effect and in the case of which— (a) the holder is resident in the United Kingdom; (b) the obligations of the insurer are obligations of a person not resident in the United Kingdom; and (c) those obligations are not attributable to a branch or agency of that person’s in the United Kingdom. (6) Before the expiration of the period of three months following the day on which this section first applies to an overseas insurer, the overseas insurer must nominate to the Board a person to be his tax representative. (7) A person shall not be a tax representative unless— (a) if he is an individual, he is resident in the United Kingdom and has a fixed place of residence there, or (b) if he is not an individual, he has a business establishment in the United Kingdom, and, in either case, he satisfies such other requirements (if any) as are prescribed in regulations made for the purpose by the Board. (8) A person shall not be an overseas insurer’s tax representative unless— (a) his nomination by the overseas insurer has been approved by the Board; or (b) he has been appointed by the Board. (9) The Board may by regulations make provision supplementing this section; and the provision that may be made by any such regulations includes provision with respect to— (a) the making of a nomination by an overseas insurer of a person to be his tax representative; (b) the information which is to be provided in connection with such a nomination; (c) the form in which such a nomination is to be made; (d) the powers and duties of the Board in relation to such a nomination; (e) the procedure for approving, or refusing to approve, such a nomination, and any time limits applicable to doing so; (f) the termination, by the overseas insurer or the Board, of a person’s appointment as a tax representative; (g) the appointment by the Board of a person as the tax representative of an overseas insurer (including the circumstances in which such an appointment may be made); (h) the nomination by the overseas insurer, or the appointment by the Board, of a person to be the tax representative of an overseas insurer in place of a person ceasing to be his tax representative; (j) circumstances in which an overseas insurer to whom this section applies may, with the Board’s agreement, be released (subject to any conditions imposed by the Board) from the requirement that there must be a tax representative; (k) appeals to the Special Commissioners against decisions of the Board under this section or regulations under it. (10) The provision that may be made by regulations under subsection (9) above also includes provision for or in connection with the making of other arrangements between the Board and an overseas insurer for the purpose of securing the discharge by or on behalf of the overseas insurer of the relevant duties, within the meaning of section 552B. (11) Section 839 (connected persons) applies for the purposes of this section. (12) In this section— “the designated day” means such day as the Board may specify for the purpose in regulations; “tax representative” means a tax representative under this section. Duties of overseas insurers’ tax representatives. 552B (1) It shall be the duty of an overseas insurer’s tax representative to secure (where appropriate by acting on the overseas insurer’s behalf) that the relevant duties are discharged by or on behalf of the overseas insurer. (2) For the purposes of this section “the relevant duties” are— (a) the duties imposed by section 552, (b) any duties imposed by regulations made under subsection (4A)(a) of that section, and (c) any duties imposed by regulations made under subsection (4A)(b) of that section by virtue of subsection (4B) of that section, so far as relating to relevant insurances under which the overseas insurer in question has any obligations. (3) An overseas insurer’s tax representative shall be personally liable— (a) in respect of any failure to secure the discharge of the relevant duties, and (b) in respect of anything done for purposes connected with acting on the overseas insurer’s behalf, as if the relevant duties were imposed jointly and severally on the tax representative and the overseas insurer. (4) In the application of this section in relation to any particular tax representative, it is immaterial whether any particular relevant duty arose before or after his appointment. (5) This section has effect in relation to relevant duties relating to chargeable events happening on or after the day by which section 552A(6) requires the nomination of the overseas insurer’s first tax representative to be made. (6) Expressions used in this section and in section 552A have the same meaning in this section as they have in that section.

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88 Overseas life assurance business.

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89 Personal portfolio bonds.

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90 Distributions to friendly societies.

(1) The repeal by section 30(4) of the Finance (No. 2) Act 1997 of section 231(2) of the Taxes Act 1988 (payment of tax credit to a company resident in the UK) shall not have effect in relation to any distribution made to a friendly society before 6th April 2004 which is— (a) a distribution to a friendly society all of whose profits are exempt from corporation tax by virtue of section 460(1) of the Taxes Act 1988 (life or endowment business of friendly society); or (b) a distribution not falling within paragraph (a) above in relation to which exemption is given under section 460(1) of that Act. (2) In relation to any distribution falling within paragraph (a) or (b) of subsection (1) above— (a) paragraph 3 of Schedule 4 to the Finance (No. 2) Act 1997 (which, from 6th April 1999, repeals certain provisions about claims for tax credits for accounting periods to which self-assessment applies) shall have effect as if the reference in sub-paragraph (2) of that paragraph to 6th April 1999 were a reference to 6th April 2004; and (b) paragraph 2 of that Schedule (which repeals certain provisions about claims for tax credits for earlier periods) shall have no effect. (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4) Schedule 8 to the Finance (No. 2) Act 1997 (repeals), so far as it relates to any repeal referred to in the preceding provisions of this section, shall have effect subject to those provisions.

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91 Provisional repayments in connection with pension business.

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