Law

Finance Act 2000

United Kingdom · statute

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In force since 2026-04-07, 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.

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Contents: 193 provisions
  1. Title and introductory text
  2. 1 Rate of duty on beer.
  3. 2 Rates of duty on cider.
  4. 3 Rates of duty on wine and made-wine.
  5. 4 Rates of duty and rebate on hydrocarbon oil.
  6. 5 Ultra low sulphur petrol.
  7. 6 Mixing of rebated light oils.
  8. 7 Power to amend definitions of types of hydrocarbon oil.
  9. 8 Penalties for misuse of rebated heavy oil.
  10. 9 Use of rebated heavy oil as fuel.
  11. 10 Rebates, marking and reliefs.
  12. 11 Emulsions of water in gas oil.
  13. 12 Rates of tobacco products duty.
  14. 13 Basis of calculation ofad valorem element of duty on cigarettes.
  15. 14 Fiscal marks on tobacco products.
  16. 15 Management of excise duty on tobacco products.
  17. 16 Rates of gaming duty.
  18. 17 Amusement machine licence duty.
  19. 18 Rates of duty.
  20. 19 Changes in exemption from duty.
  21. 20 Threshold for reduced general rate.
  22. 21 Increase in general rate.
  23. 22 Rates of duty for new cars and vans.
  24. 23 Enforcement provisions for graduated rates.
  25. 24 Rates of duty for goods vehicles.
  26. 25 Power to search premises.
  27. 26 Power to search articles.
  28. 27 Security for customs and excise duties.
  29. 28 Civil penalties for breach of excise duty requirements.
  30. 29 Correction of reference.
  31. 30 Climate change levy.
  32. 31 Charge and rates for 2000-01.
  33. 32 Extension of starting rate to savings income of individuals.
  34. 33 Deduction of income tax from foreign dividends.
  35. 34 Children’s tax credit.
  36. 35 Charge and main rate for financial year 2001.
  37. 36 Small companies’ rate for financial year 2000.
  38. 37 Application of starting rate to capital gains tax.
  39. 38 Payroll deduction scheme.
  40. 39 Gift aid payments by individuals.
  41. 40 Gift aid payments by companies.
  42. 41 Covenanted payments to charities.
  43. 42 Millennium gift aid.
  44. 43 Gifts of shares and securities to charities etc.
  45. 44 Gifts to charity from certain trusts.
  46. 45 Loans to charities.
  47. 46 Exemption for small trades etc.
  48. 47 Employee share ownership plans.
  49. 48 Relief for transfers to employee share ownership plans.
  50. 49 Phasing out of approved profit sharing schemes.
  51. 50 Phasing out of relief for payments to trustees of profit sharing schemes.
  52. 51 Approved profit sharing scheme: other awards of shares.
  53. 52 Approved profit sharing schemes: restriction on type of shares.
  54. 53 Approved profit sharing schemes: loan arrangements.
  55. 54 Employee share ownership trusts.
  56. 55 Shares transferred from employee share ownership trust.
  57. 56 Further provisions about share options.
  58. 57 Benefits in kind: deregulatory amendments.
  59. 58 Education and Training.
  60. 59 Cars available for private use.
  61. 60 Provision of services through intermediary.
  62. 61 Occupational and personal pension schemes.
  63. 62 Enterprise management incentives.
  64. 63 Corporate venturing scheme.
  65. 64 Enterprise investment scheme: amendments.
  66. 65 Venture capital trusts: amendments.
  67. 66 Taper relief: taper for business assets.
  68. 67 Taper relief: assets qualifying as business assets.
  69. 68 Meaning of “research and development".
  70. 69 Tax relief for expenditure on research and development.
  71. 70 First year allowances for small or medium-sized enterprises.
  72. 71 First year allowances for ICT expenditure by small enterprises.
  73. 72 Expenditure of a small enterprise.
  74. 73 Repeal of notification requirements.
  75. 74 Pool for certain leased assets and inexpensive cars.
  76. 75 Machinery and plant allowances for non-residents etc.
  77. 76 Production animals.
  78. 77 Sale and leaseback.
  79. 78 Meaning of “fixture".
  80. 79 Leased assets under the Affordable Warmth Programme.
  81. 80 Fixtures and machinery and plant on hire-purchase etc.
  82. 81 Production sharing contracts.
  83. 82 Tonnage tax.
  84. 83 Relief for interest on loans to buy annuities.
  85. 84 Exemption of payments under New Deal 50plus.
  86. 85 Exemption of payments under Employment Zones programme.
  87. 86 Loan where return bears inverse relationship to results.
  88. 87 Tax treatment of acquisition, disposal or revaluation of certain rights.
  89. 88 Contributions to local enterprise agencies, etc.
  90. 89 Waste disposal: entitlement of successor to allowances.
  91. 90 Restriction of gifts relief.
  92. 91 Disposal of interest in settled property: deemed disposal of underlying assets.
  93. 92 Transfers of value by trustees linked with trustee borrowing.
  94. 93 Restriction on set-off of trust losses.
  95. 94 Attribution to trustees of gains of non-resident companies.
  96. 95 Disposal of interest in non-resident settlement.
  97. 96 Payments by trustees to non-resident companies.
  98. 97 Group relief for non-resident companies etc.
  99. 98 Recovery of tax payable by non-resident company.
  100. 99 Joint arrangements for claims.
  101. 100 Limit on amount of group relief in case of consortium claim.
  102. 101 Civil penalties: incorrect certificates
  103. 102 Chargeable gains: non-resident companies and groups etc.
  104. 103 Double taxation relief.
  105. 104 Controlled foreign companies.
  106. 105 Corporation tax: use of currencies other than sterling.
  107. 106 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  108. 107 General insurance reserves.
  109. 108 Overseas life assurance business.
  110. 109 Insurance business: apportionment rules.
  111. 110 Rent factoring.
  112. 111 Payments under deduction of tax.
  113. 112 UK public revenue dividends: deduction of tax.
  114. 113 Tax treatment of expenditure on production or acquisition of films.
  115. 114 Rates: conveyance or transfer on sale.
  116. 115 Rates: duty on lease chargeable by reference to rent.
  117. 116 Rate of duty on seven year leases.
  118. 117 Power to vary stamp duties.
  119. 118 Land transferred etc for other property.
  120. 119 Transfer of land to connected company.
  121. 120 Exceptions from section 119.
  122. 121 Grant of lease to connected company.
  123. 122 Marketable securities transferred etc for exempt property.
  124. 123 Transfer of property between associated companies: Great Britain.
  125. 124 Transfer of property between associated companies: Northern Ireland.
  126. 125 Grant of leases etc between associated companies.
  127. 126 Future issues of stock.
  128. 127 Company acquisition reliefs: redeemable shares.
  129. 128 Surrender of leases.
  130. 129 Abolition of duty on instruments relating to intellectual property.
  131. 130 Transfers to registered social landlords etc.
  132. 131 Relief for certain instruments executed before this Act has effect.
  133. 132 The Northern Ireland Assembly Commission.
  134. 133 Loan capital where return bears inverse relationship to results.
  135. 134 Transfers between depositary receipt systems and clearance systems.
  136. 135 Supplies to which reduced rate applies.
  137. 136 Disposals of assets for which a VAT repayment is claimed.
  138. 137 Gold: penalty for failure to comply with record-keeping requirements etc.
  139. 138 Treatment of employee share ownership trusts.
  140. 139 Operating expenditure incurred while safeguard relief applies.
  141. 140 Rate.
  142. 141 Disposals which are not taxable.
  143. 142 Secondary liability.
  144. 143 Power to provide incentives to use electronic communications.
  145. 144 Offence of fraudulent evasion of income tax
  146. 145 Information about interest etc paid, credited or received.
  147. 146 International exchange of information: general.
  148. 147 International exchange of information: inheritance tax.
  149. 148 Use of minimum wage information.
  150. 149 Orders for the delivery of documents.
  151. 150 Search warrants: miscellaneous amendments.
  152. 151 Debt Management Account.
  153. 152 National Savings Bank.
  154. 153 National savings certificates.
  155. 154 Exchange Equalisation Account.
  156. 155 Interpretation.
  157. 156 Repeals.
  158. 157 Short title.
  159. SCHEDULE 1 Mixing of rebated light oils
  160. SCHEDULE 2 Amusement machine licence duty
  161. SCHEDULE 3 Vehicle excise duty on new cars and vans
  162. SCHEDULE 4 Vehicle excise duty: enforcement provisions for graduated rates
  163. SCHEDULE 5 Rates of vehicle excise duty on goods vehicles
  164. SCHEDULE 6 Climate change levy
  165. SCHEDULE 7 Climate change levy: consequential amendments
  166. SCHEDULE 8
  167. SCHEDULE 9 New Schedule 7C to the Taxation of Chargeable Gains Act 1992
  168. SCHEDULE 10
  169. SCHEDULE 11
  170. SCHEDULE 12 Provision of services through an intermediary
  171. SCHEDULE 14
  172. SCHEDULE 15 The corporate venturing scheme
  173. SCHEDULE 16 Corporate venturing scheme: consequential amendments
  174. SCHEDULE 18 Venture capital trusts: amendments
  175. SCHEDULE 19 Meaning of “research and development"
  176. SCHEDULE 21 R&D tax credits: consequential amendments
  177. SCHEDULE 22 Tonnage tax
  178. SCHEDULE 24 New Schedule 4A to the Taxation of Chargeable Gains Act 1992
  179. SCHEDULE 25 New Schedule 4B to the Taxation of Chargeable Gains Act 1992
  180. SCHEDULE 26 Transfers of value: attribution of gains to beneficiaries
  181. SCHEDULE 27 Group relief in case of non-resident companies etc.
  182. SCHEDULE 29 Chargeable gains: non-resident companies and groups etc.
  183. SCHEDULE 30 Double taxation relief
  184. SCHEDULE 31 Controlled foreign companies
  185. SCHEDULE 32 Stamp duty on seven year leases: transitional provisions
  186. SCHEDULE 33 Power to vary stamp duties
  187. SCHEDULE 34 Abolition of stamp duty on instruments relating to intellectual property: supplementary provisions
  188. SCHEDULE 35 Value added tax: charge at reduced rate
  189. SCHEDULE 36 New Schedule 3A to the Value Added Tax Act 1994
  190. SCHEDULE 37 Landfill tax: new Part VIII of Schedule 5 to the Finance Act 1996
  191. SCHEDULE 38 Regulations for providing incentives for electronic communications
  192. SCHEDULE 39 New Schedule 1AA to the Taxes Management Act 1970
  193. SCHEDULE 40 Repeals

Proposed changes to this act

No one has proposed a change to this act yet.

193 provisions

40 Gift aid payments by companies.

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41 Covenanted payments to charities.

(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2) In section 347A of that Act (annual payments and interest: general rule), subsections (2)(b), (7) and (8) shall cease to have effect. (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (5) In subsection (6) of section 505 of that Act (charities: general), the words “and, for this purpose, all covenanted payments to charity (within the meaning of section 347A(7)) shall be treated as a single item” shall cease to have effect. (6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (7) Section 59 of the Finance Act 1989 (covenanted subscriptions) shall cease to have effect. (8) Where a deed of covenant executed by an individual before 6th April 2000 provides for the payment of specified amounts, any amount payable under the deed on or after that date shall be determined as if the individual were entitled to deduct tax from that amount at the basic rate. (9) This section shall have effect in relation to covenanted payments— (a) falling to be made by individuals on or after 6th April 2000; or (b) made by companies on or after 1st April 2000.

Propose a change

42 Millennium gift aid.

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43 Gifts of shares and securities to charities etc.

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44 Gifts to charity from certain trusts.

(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (5A) This section applies if— (a) in a year of assessment qualifying income arises under a UK settlement, (b) the qualifying income consists of charitable income and non-charitable income, and (c) expenses of the trustees are to be used to reduce the charitable income for the purpose of calculating a beneficiary's liability to corporation tax. (5B) The amount of those expenses which can used for that purpose is limited to the amount allocated to the charitable income. (5C) The amount of the expenses allocated to the charitable income is determined by apportioning them rateably between the charitable income and the non-charitable income. (5D) In this section— “charitable income” means income within section 628(1) or 630(1) of ITTOIA 2005, “non-charitable income” means income which is not charitable income, and “qualifying income” and “UK settlement” have the same meaning as in section 628 of ITTOIA 2005. (6) This section has effect in relation to qualifying income arising to a UK trust on or after 6th April 2000.

Propose a change

45 Loans to charities.

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46 Exemption for small trades etc.

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47 Employee share ownership plans.

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48 Relief for transfers to employee share ownership plans.

(1) In the Taxation of Chargeable Gains Act 1992, after section 236 insert— Employee share ownership plans Relief for transfers to employee share ownership plans 236A Schedule 7C (which makes provision for roll-over relief where shares are transferred to an approved employee share ownership plan) shall have effect. . (2) After Schedule 7B to that Act insert the Schedule 7C set out in Schedule 9 to this Act.

Propose a change

49 Phasing out of approved profit sharing schemes.

(1) The Board shall not approve a profit sharing scheme under Schedule 9 to the Taxes Act 1988 (approval of share option schemes and profit sharing schemes) unless the application for approval is received by the Board before 6th April 2001. (2) For the purposes of subsection (1) an application for approval which is not accompanied by the particulars and evidence referred to in paragraph 1(2) of that Schedule is not regarded as received by the Board until the required particulars and evidence have been received by them. (3) In section 186 of that Act (approved profit sharing schemes), in subsection (1) (under which the section applies to appropriations of shares made after 5th April 1979) after “5th April 1979" insert “ and before 1st January 2003 ”.

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50 Phasing out of relief for payments to trustees of profit sharing schemes.

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51 Approved profit sharing scheme: other awards of shares.

(1) In Schedule 9 to the Taxes Act 1988 (approved share option schemes and profit sharing schemes), in paragraph 3(2) (grounds for withdrawing approval of profit sharing schemes), after “below" in paragraph (e) insert— ; or (f) the trustees appropriate shares to participants, one or more of whom have had free shares appropriated to them, at an earlier time in the same year of assessment, under a relevant share plan . (2) After paragraph 3(3) of that Schedule insert— (4) For the purposes of sub-paragraph (2)(f) above the reference to persons having had free shares appropriated to them includes persons who would have had free shares appropriated to them but for their failure to obtain a performance allowance (within the meaning of paragraph 25 of Schedule 8 to the Finance Act 2000). (5) In sub-paragraph (2)(f) and (4) above— “free shares” has the same meaning as in Schedule 8 to the Finance Act 2000; “relevant share plan”, in relation to a profit sharing scheme, means an employee share ownership plan that— was established by the grantor or a connected company, and is approved under Schedule 8 to that Act. (6) For the purposes of sub-paragraph (5) above “connected company” means— (a) a company which controls or is controlled by the grantor or which is controlled by a company which also controls the grantor, or (b) a company which is a member of a consortium owning the grantor or which is owned in part by the grantor as a member of a consortium. .

Propose a change

52 Approved profit sharing schemes: restriction on type of shares.

(1) Schedule 9 to the Taxes Act 1988 (share option schemes and profit sharing schemes) is amended in accordance with subsections (2) to (4). (2) In paragraph 9(1) (requirements to be satisfied by shares in share option schemes), after “below" insert “ (disregarding paragraph 11A) ”. (3) After paragraph 11 (requirements as to listing etc.) insert— 11A (1) In the case of a profit sharing scheme, scheme shares must not be shares— (a) in an employer company, or (b) in a company that— (i) has control of an employer company, and (ii) is under the control of a person or persons within sub-paragraph (2)(b)(i) below in relation to an employer company. (2) For the purposes of this paragraph a company is “an employer company” if— (a) the business carried on by it consists substantially in the provision of the services of the persons employed by it, and (b) the majority of those services are provided to— (i) a person who has, or two or more persons who together have, control of the company, or (ii) a company associated with the company. (3) For the purposes of sub-paragraph (2)(b)(ii) above a company shall be treated as associated with another company if both companies are under the control of the same person or persons. (4) For the purposes of sub-paragraphs (1) to (3) above— (a) references to a person include a partnership, and (b) where a partner, alone or together with others, has control of a company, the partnership shall be treated as having like control of that company. (5) For the purposes of this paragraph the question whether a person controls a company shall be determined in accordance with section 416(2) to (6). . (4) In paragraph 12— (a) in sub-paragraph (1), in paragraph (c) for “other than" to the end of that paragraph there shall be substituted “ other than those permitted by sub-paragraph (1A) below. ”, and (b) after sub-paragraph (1) insert— (1A) Subject to sub-paragraph (1B) below, scheme shares may be subject to— (a) restrictions which attach to all shares of the same class, or (b) a restriction authorised by sub-paragraph (2) below. (1B) In the case of a profit sharing scheme, scheme shares must not be subject to any restrictions affecting the rights attaching to those shares which relate to— (a) dividends, or (b) assets on a winding-up of the company, other than restrictions which attach to all other ordinary shares in the same company. . (5) Subsections (1) to (4) shall be deemed to have come into force on 21st March 2000. (6) Subsections (3) and (4) do not have effect in relation to shares acquired before 21st March 2000 by the trustees of a profit sharing scheme approved under Schedule 9 to the Taxes Act 1988.

Propose a change

53 Approved profit sharing schemes: loan arrangements.

(1) In paragraph 2 of Schedule 9 to the Taxes Act 1988 (conditions for approval of share option schemes and profit sharing schemes), after sub-paragraph (2) insert— (2A) The Board shall not approve a profit sharing scheme unless they are satisfied— (a) that the arrangements for the scheme do not make any provision, and are not in any way associated with any provision made, for loans to some or all of the employees of— (i) the company that established the scheme, or (ii) in the case of a group scheme, any participating company, and (b) that the operation of the scheme is not in any way associated with such loans. (2B) For the purposes of sub-paragraph (2A) above “arrangements” includes any scheme, agreement or understanding, whether or not legally enforceable. . (2) In paragraph 3(2) of that Schedule (withdrawal of approval of profit sharing schemes), before paragraph (d) insert— (ca) the Board— (i) cease to be satisfied of the matters mentioned in paragraph 2(2A) above, or (ii) in the case of a scheme approved before 21st March 2000, are not satisfied of those matters; or . (3) This section shall be deemed to have come into force on 21st March 2000.

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54 Employee share ownership trusts.

No claim for relief under section 229(1) or (3) of the Taxation of Chargeable Gains Act 1992 (roll-over relief where disposal made to employee share ownership trust) may be made in relation to a disposal of shares, or an interest in shares, made on or after 6th April 2001.

Propose a change

55 Shares transferred from employee share ownership trust.

(1) Section 69 of the Finance Act 1989 (chargeable events in relation to employee share ownership trusts) is amended in accordance with subsections (2) to (5). (2) In subsection (1) (definition of “chargeable event”), after paragraph (d) insert— (e) where— (i) the trustees make a qualifying transfer within subsection (3AA) below for a consideration, and (ii) they do not, during the period specified in subsection (5A) below, expend a sum of not less than the amount of that consideration for one or more qualifying purposes, the expiry of that period. . (3) After subsection (3) insert— (3AA) For the purposes of subsection (1)(a) above a transfer is also a qualifying transfer if— (a) it is a transfer of relevant shares made to the trustees of the plan trust of an employee share ownership plan, (b) the plan is approved under Schedule 8 to the Finance Act 2000 when the transfer is made, and (c) the consideration (if any) for which the transfer is made does not exceed the market value of the shares. (3AB) For the purpose of determining whether a transfer by the trustees is a qualifying transfer within subsection (3AA) above, where on or after 21st March 2000— (a) the trustees transfer or dispose of part of a holding of shares (whether by way of a qualifying transfer or otherwise), and (b) the holding includes any relevant shares, the relevant shares shall be treated as transferred or disposed of before any other shares included in that holding. For this purpose “holding” means any number of shares of the same class held by the trustees, growing or diminishing as shares of that class are acquired or disposed of. (3AC) For the purposes of subsections (3AA) and (3AB) above— “market value” has the same meaning as in Schedule 8 to the Finance Act 2000; and “relevant shares” means— shares that are held by the trustees of the employee share ownership trust at midnight on 20th March 2000, and shares purchased by those trustees with original funds after that time. (3AD) For the purposes of subsection (3AC) above— (a) “original funds” means any money held by the trustees of the employee share ownership trust in a bank or building society account at midnight on 20th March 2000, and (b) any payment made by the trustees after that time (whether to acquire shares or otherwise) shall be treated as made out of original funds (and not out of money received after that time) until those funds are exhausted. . (4) In subsection (5) after “(1)(d)" insert “ or (e) ”. (5) After that subsection insert— (5A) The period referred to in paragraph (e) of subsection (1) above is the period— (a) beginning with the qualifying transfer mentioned in that paragraph, and (b) ending nine months after the end of the period of account in which that qualifying transfer took place. For this purpose the period of account means the period of account of the company that established the employee share ownership trust. . (6) In section 70 of the Finance Act 1989 (chargeable amounts), after subsection (3) insert— (4) If the chargeable event falls within section 69(1)(e) above the chargeable amount is an amount equal to— (a) the amount of the consideration received for the qualifying transfer mentioned in section 69(1)(e) above, less (b) the amount of any expenditure by the trustees for a qualifying purpose during the period mentioned in section 69(5A) above. .

Propose a change

56 Further provisions about share options.

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Propose a change

57 Benefits in kind: deregulatory amendments.

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Propose a change

58 Education and Training.

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59 Cars available for private use.

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60 Provision of services through intermediary.

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61 Occupational and personal pension schemes.

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Propose a change

62 Enterprise management incentives.

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Propose a change

63 Corporate venturing scheme.

(1) Schedule 15 to this Act (which makes provision for the corporate venturing scheme) has effect. (2) Schedule 16 to this Act (which makes consequential amendments) has effect. (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4) Subject to that, Schedules 15 and 16 apply in relation to shares issued on or after 1st April 2000 but before 1st April 2010.

Propose a change

64 Enterprise investment scheme: amendments.

The provisions relating to the enterprise investment scheme are amended in accordance with Schedule 17 to this Act. In that Schedule— Part I makes amendments reducing various periods which apply in relation to the provisions which determine the reliefs under the scheme; Part II makes amendments about qualifying companies; Part III makes other minor amendments.

Propose a change

65 Venture capital trusts: amendments.

The provisions relating to venture capital trusts are amended in accordance with Schedule 18 to this Act. In that Schedule— Part I makes amendments reducing various periods which apply in relation to the provisions which determine the reliefs; ...

Propose a change

66 Taper relief: taper for business assets.

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67 Taper relief: assets qualifying as business assets.

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68 Meaning of “research and development".

(1) Schedule 19 to this Act (meaning of “research and development”) has effect. In that Schedule— Part I contains a new definition of “research and development” for the purposes of the Tax Acts, and Part II contains consequential amendments. (2) The amendments in Part II of that Schedule have effect— (a) for the purposes of income tax and capital gains tax, in relation to the year 2000-01 and subsequent years of assessment, and (b) for the purposes of corporation tax, for accounting periods ending on or after 1st April 2000.

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69 Tax relief for expenditure on research and development.

(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2) Schedule 21 to this Act (which contains consequential amendments) has effect accordingly.

Propose a change

70 First year allowances for small or medium-sized enterprises.

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Propose a change

71 First year allowances for ICT expenditure by small enterprises.

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Propose a change

72 Expenditure of a small enterprise.

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Propose a change

73 Repeal of notification requirements.

(1) In section 118 of the Finance Act 1994 (notification requirements)— (a) subsections (1) to (5) and (7) to (9) shall cease to have effect; and (b) in subsection (6), for “the provisions mentioned in subsection (2) above" there shall be substituted— (a) section 25(1) of the Capital Allowances Act 1990 (meaning of qualifying expenditure for the purposes of writing-down allowances for expenditure on machinery or plant); and (b) section 44(4) of the Finance Act 1971 (provision corresponding to section 25(1) applicable to earlier chargeable periods), . (2) This section has effect for chargeable periods as respects which the period specified in subsection (3A) of that section ends on or after 1st April 2000.

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74 Pool for certain leased assets and inexpensive cars.

(1) In section 41 of the Capital Allowances Act 1990 (writing-down allowances etc for leased assets and inexpensive cars)— (a) in subsection (1), paragraphs (b) and (c) and the word “ or ” at the end of paragraph (a); and (b) in subsection (4), paragraph (a) and, in paragraph (b), the words from “or within (1)(b) or (c)" to “subsection (1)(c)" and the words “or subsection (1)(b) or (c)", shall cease to have effect for chargeable periods ending on or after the relevant date. (2) Subsection (3) below applies where— (a) immediately before the end of the relevant chargeable period, a person was treated for the purposes of sections 24, 25 and 26 of the Capital Allowances Act 1990 as having incurred expenditure on the provision of machinery or plant wholly and exclusively for the purposes of a separate trade carried on by him; (b) the expenditure fell within subsection (1)(b) or (c) of section 41 of that Act; and (c) qualifying expenditure in respect of the separate trade for the relevant chargeable period exceeded any disposal value brought into account in respect of that trade for that period. (3) The balance of the excess (after the deduction of any writing-down allowances made by reference to it) shall be treated for the purposes of sections 24, 25 and 26 of the Capital Allowances Act 1990 as capital expenditure which— (a) was incurred by that person in the relevant chargeable period on the provision of the machinery or plant for the purposes of the trade which is the actual trade for the purposes of section 41 of that Act; and (b) does not form part of his qualifying expenditure for that period. (4) In this section— “the relevant chargeable period” means the chargeable period immediately preceding that which begins on or before and ends on or after the relevant date; “the relevant date” means, subject to subsection (5) below, 6th April 2000 for the purposes of income tax and 1st April 2000 for the purposes of corporation tax. (5) A person may, by a notice given to an officer of the Board, elect that this section shall have effect in relation to any trade carried on by him as if the relevant date were 6th April 2001 or, as the case may be, 1st April 2001.

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75 Machinery and plant allowances for non-residents etc.

(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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76 Production animals.

(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2) In paragraph 9(4) of Schedule 5 to the Taxes Act 1988 (treatment of farm animals etc for purposes of Case I of Schedule D), for the words from “in relation to animals" to the end there shall be substituted— (a) in relation to animals or other creatures kept singly as they apply in relation to herds; and (b) in relation to shares in animals or other creatures as they apply in relation to animals or other creatures themselves. . (3) The enactments amended by subsections (1) and (2) above shall be deemed always to have had effect with the amendments made by those subsections.

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77 Sale and leaseback.

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78 Meaning of “fixture".

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79 Leased assets under the Affordable Warmth Programme.

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