Law

Finance Act 1988

United Kingdom · statute

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In force since 2024-02-22, 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: 162 provisions
  1. Title and introductory text
  2. 1 Beer, wine, made-wine and cider.
  3. 2 Tobacco products.
  4. 3 Hydrocarbon oil.
  5. 4 Vehicles excise duty.
  6. 5 Relief from excise duty on goods imported for testing etc.
  7. 6 Remission of duty in respect of spirits used for medical or scientific purposes.
  8. 7 Meaning of “sparkling” in relation to wine and made-wine.
  9. 8 Disclosure of information as to imports.
  10. 9 Approval and regulation of warehouses.
  11. 10 Power to search persons.
  12. 11 Time limits for arrest and proceedings.
  13. 12 Punishment of offences.
  14. 13 Medical services and goods.
  15. 14 Registration.
  16. 15 Assessment of tax due.
  17. 16 Serious misdeclaration or neglect resulting in understatements or overclaims.
  18. 17 Persistent misdeclaration resulting in understatements or overclaims.
  19. 18 Failures to notify and unauthorised issue of invoices.
  20. 19 Breaches of regulatory provisions.
  21. 20 Repayment supplement.
  22. 21 Set-off of credits.
  23. 22 Invoices provided by recipients of goods or services.
  24. 23 Charge and basic rate of income tax for 1988-89.
  25. 24 Higher and additional rates of income tax.
  26. 25 Personal reliefs.
  27. 26 Charge and rate of corporation tax for financial year 1988.
  28. 27 Corporation tax: small companies.
  29. 28 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  30. 29 Life assurance premium relief.
  31. 30 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  32. 31 Non-residents’ personal reliefs.
  33. 32 Abolition of aggregation of income.
  34. 33 Personal allowance and married couple’s allowance.
  35. 34 Jointly held property.
  36. 35 Minor and consequential provisions.
  37. 36 Annual payments.
  38. 37 Maintenance payments under existing obligations:
  39. 38 Maintenance payments under existing obligations:
  40. 39 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  41. 40 Provisions supplementary to sections 37 to 39.
  42. 41 Qualifying maximum for loans.
  43. 42 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  44. 43 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  45. 44 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  46. 45 Car benefits.
  47. 46 Car parking facilities.
  48. 47 Entertainment: non-cash vouchers.
  49. 48 Entertainment: credit-tokens.
  50. 49 Entertainment of directors and higher-paid employees.
  51. 50 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  52. 51 Restriction of relief.
  53. 52 Valuation of interests in land.
  54. 53 Approved investment funds.
  55. 54 Personal pension schemes: commencement.
  56. 55 Personal pension schemes: other amendments.
  57. 56 Occupational pension schemes.
  58. 57 Lump sum benefits paid otherwise than on retirement.
  59. 58 Assessment and collection.
  60. 59 Reinsurance: general.
  61. 60 Reinsurance to close.
  62. 61 Minor and consequential amendments.
  63. 62 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  64. 63 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  65. 64 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  66. 65 Commercial woodlands.
  67. 66 Company residence.
  68. 66A Residence of SE or SCE
  69. 67 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  70. 68 Priority share allocations for employees etc.
  71. 69 Share options: loans.
  72. 70 Charities: payroll deduction scheme.
  73. 71 Unit trusts: relief on certain payments.
  74. 72 Entertainment of overseas customers.
  75. 73 Consideration for certain restrictive undertakings.
  76. 74 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  77. 75 Premiums for leases etc.
  78. 76
  79. 77 Scope of Chapter.
  80. 78 Charge where restrictions removed etc.
  81. 79 Charge for shares in dependent subsidiaries.
  82. 80 Charge on special benefits.
  83. 81 Changes in interest.
  84. 82 Company reorganisations etc.
  85. 83 Connected persons etc.
  86. 84 Capital gains tax.
  87. 85 Information.
  88. 86 Meaning of “dependent subsidiary”.
  89. 87 Other interpretation provisions.
  90. 88 Transitional provisions.
  91. 89 Consequential amendments.
  92. 90 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  93. 91 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  94. 92 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  95. 93 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  96. 94 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  97. 95 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  98. 96 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  99. 97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  100. 98 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  101. 99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  102. 100 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  103. 101 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  104. 102 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  105. 103 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  106. 104 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  107. 105 Deemed disposal of assets on company ceasing to be resident in U.K.
  108. 106 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  109. 107 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  110. 108 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  111. 109 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  112. 110 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  113. 111 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  114. 112 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  115. 113 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  116. 114 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  117. 115 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  118. 116 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  119. 117 Definition of “investment trust”.
  120. 118 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  121. 119 Current year assessments.
  122. 120 Notice of liability to income tax.
  123. 121 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  124. 122 Notice of liability to capital gains tax.
  125. 123 Three year time limit.
  126. 124 Returns of fees, commissions etc.
  127. 125 Other payments and licences etc.
  128. 126 Production of documents relating to a person’s tax liability.
  129. 127 Production of computer records etc.
  130. 128 Interest on overdue or overpaid PAYE.
  131. 129 Two or more tax-geared penalties in respect of same tax.
  132. 130 Provisions for securing payment by company of outstanding tax.
  133. 131 Penalties for failure to comply with section 130.
  134. 132 Liability of other persons for unpaid tax.
  135. 133 Jurisdiction of General Commissioners.
  136. 134 General Commissioners for Northern Ireland.
  137. 135 Cases stated in Northern Ireland.
  138. 136 Reduction of rates.
  139. 137 Gifts to political parties.
  140. 138 Reduced oil allowance for certain Southern Basin and onshore fields.
  141. 139 Assets generating tariff receipts: extension of allowable expenditure.
  142. 140 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  143. 141 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  144. 142 Stamp duty: housing action trusts.
  145. 143 Stamp duty: paired shares
  146. 144 Stamp duty reserve tax: paired shares etc
  147. 145 Building societies: change of status.
  148. 146 Post-consolidation amendments.
  149. 147 Interpretation etc.
  150. 148 Repeals.
  151. 149 Short title.
  152. SCHEDULE 1 Alcoholic Liquor Duties
  153. SCHEDULE 2 Vehicles Excise Duty
  154. SCHEDULE 3 Married Couples: Minor and Consequential Provisions
  155. SCHEDULE 4
  156. SCHEDULE 8
  157. SCHEDULE 9
  158. SCHEDULE 10
  159. SCHEDULE 11
  160. SCHEDULE 12 Building Societies: Change of Status
  161. SCHEDULE 13 Post-Consolidation Amendments
  162. SCHEDULE 14 Repeals

Proposed changes to this act

No one has proposed a change to this act yet.

162 provisions

79 Charge for shares in dependent subsidiaries.

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80 Charge on special benefits.

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81 Changes in interest.

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82 Company reorganisations etc.

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83 Connected persons etc.

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84 Capital gains tax.

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85 Information.

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86 Meaning of “dependent subsidiary”.

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87 Other interpretation provisions.

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88 Transitional provisions.

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89 Consequential amendments.

In relation to acquisitions of shares or interests in shares on or after 26th October 1987— (a) for the words from “section 138(1)(a)” to “value of the shares” in ... section 186(2)(b) (approved profit sharing schemes) of the Taxes Act 1988, and (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . there shall be substituted the words “ section 78 or 79 of the Finance Act 1988 in respect of the shares ”.

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90 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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91 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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92 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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93 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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94 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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95 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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96 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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98 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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100 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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101 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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102 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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103 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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104 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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105 Deemed disposal of assets on company ceasing to be resident in U.K.

(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (7) This section and sections 106 and 107 below shall be deemed to have come into force on 15th March 1988.

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106 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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107 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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108 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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109 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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110 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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111 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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112 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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113 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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114 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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115 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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116 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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117 Definition of “investment trust”.

(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2) The repeal by the Finance (No. 2) Act 1987 of section 93 of the Finance Act 1972 shall be treated as not having extended to subsection (6) of that section (amendment of definition of “investment trust” in section 359 of the Taxes Act 1970). (3) For section 266(4) of the M3Companies Act 1985 there shall be substituted— (a) Subsections (1A) to (3) of section 842 of the Income and Corporation Taxes Act 1988 apply for the purposes of subsection (2)(b) above as for those of subsection (1)(b) of that section.”;and for Article 274(4) of the M4Companies (Northern Ireland) Order 1986 there shall be substituted— (b) Subsections (1A) to (3) of section 842 of the Income and Corporation Taxes Act 1988 apply for the purposes of paragraph (2)(b) as for those of subsection (1)(b) of that section. (4) ... subsection (2) above shall have effect for companies’ accounting periods ending on or before that date.

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