Standard view

Royal arms

Finance Act 1994

1994 CHAPTER 9

ARRANGEMENT OF SECTIONS

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  1. Part I

    Customs and Excise

    1. Chapter I

      General

      1. Rates of duty

        1. 1. Wine, made-wine and cider.

        2. 2. Tobacco products.

        3. 3. Hydrocarbon oil.

        4. 4. Vehicles excise duty.

      2. Other provisions

        1. 5. Vehicles excise duty: miscellaneous provisions.

        2. 6. Gaming machine licence duty.

    2. Chapter II

      Appeals and Penalties

      1. VAT and duties tribunals

        1. 7. VAT and duties tribunals.

      2. Civil penalties

        1. 8. Penalty for evasion of excise duty.

        2. 9. Penalties for contraventions of statutory requirements.

        3. 10. Exceptions to liability under section 9.

        4. 11. Breaches of walking possession agreements.

      3. Assessments to excise duty or to penalties

        1. 12. Assessments to excise duty.

        2. 13. Assessments to penalties.

      4. Customs and excise reviews and appeals

        1. 14. Requirement for review of a decision.

        2. 15. Review procedure.

        3. 16. Appeals to a tribunal.

      5. Supplemental provisions

        1. 17. Interpretation.

        2. 18. Consequential modifications of enactments.

        3. 19. Commencement of Chapter.

    3. Chapter III

      Customs: Enforcement Powers

      1. 20. Interpretation, etc.

      2. 21. Requirements about keeping records.

      3. 22. Records and rules of evidence.

      4. 23. Furnishing of information and production of documents.

      5. 24. Power of entry.

      6. 25. Order for production of documents.

      7. 26. Procedure when documents are removed.

      8. 27. Failure of officer to comply with requirements under section 26.

    4. Chapter IV

      Air Passenger Duty

      1. The duty

        1. 28. Air passenger duty.

        2. 29. Chargeable aircraft.

        3. 30. The rate of duty.

        4. 31. Passengers: exceptions.

        5. 32. Change of circumstances after ticket issued etc.

      2. Persons liable for the duty

        1. 33. Registration of aircraft operators.

        2. 34. Fiscal representatives.

        3. 35. Fiscal representatives: supplementary.

        4. 36. Security for payment of duty.

        5. 37. Handling agents.

        6. 38. Accounting for and payment of duty.

        7. 39. Schemes for simplifying operation of reliefs etc.

      3. Administration and enforcement

        1. 40. Administration and enforcement.

        2. 41. Offences.

      4. Supplementary

        1. 42. Regulations and orders.

        2. 43. Interpretation.

        3. 44. Commencement.

  2. Part II

    Value Added Tax

    1. 45. Misdeclaration etc.

    2. 46. Repayment supplement.

    3. 47. Set-off of credits.

  3. Part III

    Insurance Premium Tax

    1. The basic provisions

      1. 48. Insurance premium tax.

      2. 49. Charge to tax.

      3. 50. Chargeable amount.

      4. 51. Rate of tax.

      5. 52. Liability to pay tax.

    2. Administration

      1. 53. Registration of insurers.

      2. 54. Accounting for tax and time for payment.

      3. 55. Credit.

      4. 56. Power to assess.

    3. Tax representatives

      1. 57. Tax representatives.

      2. 58. Rights and duties of tax representatives.

    4. Review and appeal

      1. 59. Review of Commissioners' decisions.

      2. 60. Appeals.

      3. 61. Review and appeal: commencement.

    5. Miscellaneous

      1. 62. Partnership, bankruptcy, transfer of business, etc.

      2. 63. Groups of companies.

      3. 64. Information, powers, penalties, etc.

      4. 65. Liability of insured in certain cases.

      5. 66. Directions as to amounts of premiums.

      6. 67. Deemed date of receipt of certain premiums.

      7. 68. Special accounting schemes.

      8. 69. Reduced chargeable amount.

    6. Supplementary

      1. 70. Interpretation: taxable insurance contracts.

      2. 71. Taxable insurance contracts: power to change definition.

      3. 72. Interpretation: premium.

      4. 73. Interpretation: other provisions.

      5. 74. Orders and regulations.

  4. Part IV

    Income Tax, Corporation Tax and Capital Gains Tax

    1. Chapter I

      General

      1. Income tax: charge, rates and reliefs

        1. 75. Charge and rates of income tax for 1994-95.

        2. 76. Personal allowance.

        3. 77. Rate of relief to married couples etc.

        4. 78. Amount by reference to which MCA is reduced.

        5. 79. Relief for maintenance payments.

        6. 80. Limit on relief for interest.

        7. 81. Mortgage interest relief etc.

        8. 82. Relief for blind persons.

        9. 83. Medical insurance.

        10. 84. Relief for vocational training.

      2. Corporation tax charge and rate

        1. 85. Charge and rate of corporation tax for 1994.

        2. 86. Small companies.

      3. Benefits in kind

        1. 87. Car fuel.

        2. 88. Beneficial loan arrangements.

        3. 89. Vouchers and credit-tokens.

      4. Chargeable gains

        1. 90. Annual exempt amount for 1994-95.

        2. 91. Relief on re-investment.

        3. 92. Relief on retirement.

        4. 93. Indexation losses.

        5. 94. Set-off of pre-entry losses.

        6. 95. Commodity and financial futures.

        7. 96. Cash-settled options.

        8. 97. Settlements with foreign element: information.

      5. Profit-related pay

        1. 98. The distributable pool.

        2. 99. Parts of undertakings.

      6. Profit sharing schemes

        1. 100. Relevant age for purpose of appropriate percentage.

        2. 101. Acceptance of qualifying corporate bonds for shares.

      7. Employee share ownership trusts

        1. 102. Employee share ownership trusts.

      8. Retirement benefits schemes

        1. 103. The administrator.

        2. 104. Default of administrator etc.

        3. 105. Information.

        4. 106. False statements etc.

        5. 107. Discretionary approval.

        6. 108. Taxation of benefits of non-approved schemes.

      9. Annuities

        1. 109. Annuities derived from personal pension schemes.

        2. 110. Annuities derived from retirement benefits schemes.

      10. Authorised unit trusts

        1. 111. Rate of corporation tax.

        2. 112. Distributions of authorised unit trusts.

        3. 113. Umbrella schemes.

      11. Exchange gains and losses

        1. 114. Assets and liabilities.

        2. 115. Currency contracts: net payments.

        3. 116. Currency contracts: matching.

      12. Capital allowances

        1. 117. Expenditure on machinery or plant.

        2. 118. Expenditure on machinery or plant: notification.

        3. 119. Transactions between connected persons.

        4. 120. Balancing charge on realisation of capital value.

        5. 121. Used buildings etc. in enterprise zones.

      13. Securities

        1. 122. Sale and repurchase of securities: deemed manufactured payments.

        2. 123. Manufactured payments.

        3. 124. Overseas dividend manufacturers: limitation of double taxation relief.

      14. PAYE

        1. 125. Payment by intermediary.

        2. 126. Employees working for persons other than their employers, etc.

        3. 127. Tradeable assets.

        4. 128. Non-cash vouchers.

        5. 129. Credit-tokens.

        6. 130. Cash vouchers.

        7. 131. Supplementary.

        8. 132. Payments etc. received free of tax.

        9. 133. PAYE regulations: past cases.

      15. Miscellaneous provisions about companies

        1. 134. Controlled foreign companies.

        2. 135. Prevention of avoidance of corporation tax.

        3. 136. Parts of trades: computations in different currencies.

      16. Miscellaneous

        1. 137. Enterprise investment scheme.

        2. 138. Foreign income dividends.

        3. 139. Taxation of incapacity benefit.

        4. 140. Restriction on deduction from income.

        5. 141. Expenditure involving crime.

        6. 142. Mortgage interest payable under deduction of tax: qualifying lenders.

        7. 143. Premiums referred to pension business.

        8. 144. Debts released in voluntary arrangement: relief from tax.

        9. 145. Relief for business donations.

        10. 146. Minor corrections.

    2. Chapter II

      Interest Rate and Currency Contracts

      1. Qualifying contracts

        1. 147. Qualifying contracts.

        2. 148. Contracts which may become qualifying contracts.

      2. Interest rate and currency contracts and options

        1. 149. Interest rate contracts and options.

        2. 150. Currency contracts and options.

        3. 151. Provisions which may be included.

        4. 152. Provisions which may be disregarded.

      3. Other basic definitions

        1. 153. Qualifying payments.

        2. 154. Qualifying companies.

      4. Accrual of profits and losses

        1. 155. Accrual of profits and losses.

        2. 156. Basis of accounting: general.

        3. 157. Basis of accounting for linked currency options.

        4. 158. Adjustments for changes in basis of accounting.

      5. Treatment of profits and losses

        1. 159. Trading profits and losses.

        2. 160. Non-trading profits and losses.

      6. Special cases

        1. 161. Termination etc. of qualifying contracts.

        2. 162. Exchange gains and losses on currency contracts.

        3. 163. Irrecoverable payments.

        4. 164. Released payments.

      7. Anti-avoidance and related provisions

        1. 165. Transfers of value by qualifying companies.

        2. 166. Transfers of value to associated companies.

        3. 167. Transactions not at arm’s length.

        4. 168. Qualifying contracts with non-residents.

      8. Miscellaneous

        1. 169. Insurance and mutual trading companies.

        2. 170. Investment trusts.

        3. 171. Charities.

        4. 172. Partnerships involving qualifying companies.

      9. Supplemental

        1. 173. Prevention of double charging etc.

        2. 174. Prevention of deduction of tax.

        3. 175. Transitional provisions.

        4. 176. Minor and consequential amendments.

        5. 177. Interpretation of Chapter II.

    3. Chapter III

      Management: Self-Assessment etc.

      1. Income tax and capital gains tax

        1. 178. Personal and trustee’s returns.

        2. 179. Returns to include self-assessment.

        3. 180. Power to enquire into returns.

      2. Corporation tax

        1. 181. Return of profits.

        2. 182. Return of profits to include self-assessment.

        3. 183. Power to enquire into return of profits.

      3. Partnerships

        1. 184. Partnership return.

        2. 185. Partnership return to include partnership statement.

        3. 186. Power to enquire into partnership return.

      4. Enquiries: procedure

        1. 187. Power to call for documents.

        2. 188. Amendment of self-assessment.

        3. 189. Amendment of partnership statement.

      5. Determinations and assessments to protect revenue

        1. 190. Determination of tax where no return delivered.

        2. 191. Assessment where loss of tax discovered.

      6. Payment of tax

        1. 192. Payments on account of income tax.

        2. 193. Payment of income tax and capital gains tax.

        3. 194. Surcharges on unpaid income tax and capital gains tax.

        4. 195. Payment of corporation tax.

      7. Miscellaneous and supplemental

        1. 196. Management: other amendments.

        2. 197. Construction of certain references.

        3. 198. Transitional provisions.

        4. 199. Interpretation and commencement of Chapter III.

    4. Chapter IV

      Changes for Facilitating Self-Assessment

      1. Assessment under Cases I and II of Schedule D

        1. 200. Assessment on current year basis.

        2. 201. Basis of assessment at commencement.

        3. 202. Change of basis period.

        4. 203. Conditions for such a change.

        5. 204. Basis of assessment on discontinuance.

        6. 205. Overlap profits and overlap losses.

      2. Assessment under Cases III to VI of Schedule D

        1. 206. Basis of assessment under Case III.

        2. 207. Basis of assessment under Cases IV and V.

        3. 208. Basis of assessment under Case VI.

      3. Loss relief

        1. 209. Loss relief: general.

        2. 210. Relief for losses on unquoted shares.

      4. Capital allowances

        1. 211. Income tax allowances and charges in taxing a trade etc.

        2. 212. Chargeable periods for income tax purposes.

        3. 213. Other amendments of Capital Allowances Act 1990.

        4. 214. Amendments of other enactments.

      5. Miscellaneous and supplemental

        1. 215. Treatment of partnerships.

        2. 216. Effect of change in ownership of trade, profession or vocation.

        3. 217. Double taxation relief in respect of overlap profits.

        4. 218. Commencement, transitional provisions and savings.

    5. Chapter V

      Lloyd’s Underwriters: Corporations etc.

      1. Main provisions

        1. 219. Taxation of profits.

        2. 220. Accounting period in which certain profits or losses arise.

        3. 221. Assessment and collection of tax.

      2. Trust funds

        1. 222. Premiums trust funds.

        2. 223. Ancillary trust funds.

      3. Other special cases

        1. 224. Reinsurance to close.

        2. 225. Stop-loss and quota share insurance.

      4. Miscellaneous

        1. 226. Provisions which are not to apply.

        2. 227. Cessation: final underwriting year.

        3. 228. Lloyd’s underwriters: individuals.

      5. Supplemental

        1. 229. Regulations.

        2. 230. Interpretation and commencement.

  5. Part V

    Oil Taxation

    1. Chapter I

      Election by Reference to Pipe-Line Usage

      1. 231. Election by reference to pipe-line with excess capacity.

      2. 232. Restriction on electing participator’s allowable expenditure on elected assets.

      3. 233. Tax relief for certain receipts of an electing participator.

      4. 234. Interpretation of Chapter and supplementary provisions.

    2. Chapter II

      Miscellaneous

      1. 235. Valuation of oil.

      2. 236. Valuation of certain light gases.

      3. 237. Abortive exploration expenditure.

      4. 238. Disposals of assets producing tariff receipts.

  6. Part VI

    Stamp Duty

    1. 239. Execution of deeds.

    2. 240. Time for presenting agreements for leases.

    3. 241. Exchange, partition, etc.

    4. 242. Where consideration not ascertainable from conveyance or lease.

    5. 243. Agreements to surrender leases.

    6. 244. Production of documents on transfer of land in Northern Ireland.

    7. 245. Production of documents: supplementary.

  7. Part VII

    Inheritance Tax

    1. 246. Rate bands: no indexation in 1994.

    2. 247. Business and agricultural relief.

    3. 248. Corporate Lloyd’s underwriters.

  8. Part VIII

    Miscellaneous and General

    1. Companies treated as non-resident

      1. 249. Certain companies treated as non-resident.

      2. 250. Companies treated as non-resident: supplementary.

      3. 251. Companies treated as non-resident: repeals.

    2. Privatisations

      1. 252. Railways.

      2. 253. Northern Ireland Airports Limited.

    3. Management

      1. 254. Practice and procedure in connection with appeals.

      2. 255. Calling for documents of taxpayers and others.

    4. Assigned matters

      1. 256. Minor corrections.

    5. General

      1. 257. Interpretation and construction.

      2. 258. Repeals.

      3. 259. Short title.

  9. SCHEDULES:

    1. Schedule 1

      Table of rates of duty on wine and made-wine.

    2. Schedule 2

      Vehicles excise duty: miscellaneous provisions.

    3. Schedule 3

      Amendments about gaming machine licence duty.

    4. Schedule 4

      Penalties for statutory contraventions.

      1. Part I

        Contraventions under the Management Act.

      2. Part II

        Contraventions under the Alcoholic Liquor Duties Act 1979.

      3. Part III

        Contraventions under the Hydrocarbon Oil Duties Act 1979.

      4. Part IV

        Contraventions under the Tobacco Products Duty Act 1979.

      5. Part V

        Contraventions under the Betting and Gaming Duties Act 1981.

      6. Part VI

        Contraventions relating to lottery duty.

    5. Schedule 5

      Decisions subject to review and appeal.

    6. Schedule 6

      Air passenger duty: administration and enforcement.

    7. Schedule 7

      Insurance premium tax.

      1. Part I

        Information.

      2. Part II

        Powers.

      3. Part III

        Recovery.

      4. Part IV

        Penalties.

      5. Part V

        Interest.

      6. Part VI

        Miscellaneous.

    8. Schedule 8

      Supplemental provisions relating to personal reliefs.

    9. Schedule 9

      Mortgage interest relief etc.

    10. Schedule 10

      Medical insurance.

    11. Schedule 11

      Extension of roll-over relief on re-investment.

    12. Schedule 12

      Indexation losses: transitional relief.

    13. Schedule 13

      Employee share ownership trusts.

    14. Schedule 14

      Distributions of authorised unit trusts.

    15. Schedule 15

      Enterprise investment scheme.

    16. Schedule 16

      Foreign income dividends.

      1. Part I

        The new Chapter.

      2. Part II

        Liability for and collection of advance corporation tax.

      3. Part III

        Insurance companies etc.

      4. Part IV

        Other provisions.

    17. Schedule 17

      Minor corrections.

    18. Schedule 18

      Interest rate and currency contracts: insurance and mutual trading companies.

    19. Schedule 19

      Management: other amendments.

      1. Part I

        Amendments of Management Act.

      2. Part II

        Amendments of Taxes Act 1988.

      3. Part III

        Amendments of other enactments.

    20. Schedule 20

      Changes for facilitating self-assessment: transitional provisions and savings.

    21. Schedule 21

      Lloyd’s underwriters: individuals.

    22. Schedule 22

      Supplementary provisions as to elections by reference to pipe-line usage.

      1. Part I

        Procedure for and in connection with an election.

      2. Part II

        Supplementary provisions.

    23. Schedule 23

      Amendments of the principal Act relating to valuation of light gases.

    24. Schedule 24

      Provisions relating to the Railways Act 1993.

    25. Schedule 25

      Northern Ireland Airports Limited.

    26. Schedule 26

      Repeals.

      1. Part I

        Vehicles excise duty.

      2. Part II

        Gaming machine licence duty.

      3. Part III

        Excise duties: enforcement and appeals.

      4. Part IV

        Value added tax.

      5. Part V

        Income tax, corporation tax and capital gains tax.

      6. Part VI

        Oil taxation.

      7. Part VII

        Stamp duty.

      8. Part VIII

        Miscellaneous.

An Act to grant certain duties, to alter other duties, and to amend the law relating to the National Debt and the Public Revenue, and to make further provision in connection with Finance.

[3rd May 1994]

Most Gracious Sovereign,

WE, Your Majesty’s most dutiful and loyal subjects, the Commons of the United Kingdom in Parliament assembled, towards raising the necessary supplies to defray Your Majesty’s public expenses, and making an addition to the public revenue, have freely and voluntarily resolved to give and grant unto Your Majesty the several duties hereinafter mentioned; and do therefore most humbly beseech Your Majesty that it may be enacted, and be it enacted by the Queen’s most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:—

Part I Customs and Excise

Chapter I General

Rates of duty

1 Wine, made-wine and cider

(1) For the Table of rates of duty in Schedule 1 to the [1979 c. 4.] Alcoholic Liquor Duties Act 1979 (wine and made-wine) there shall be substituted the Table in Schedule 1 to this Act.

(2) In section 62(1) of that Act (cider) for “£22.39” there shall be substituted “£22.82”.

(3) This section shall be deemed to have come into force on 1st January 1994.

2 Tobacco products

(1) For the Table in Schedule 1 to the [1979 c. 7.] Tobacco Products Duty Act 1979 there shall be substituted—

“TABLE
1. Cigarettes An amount equal to 20 per cent. of the retail price plus £52.33 per thousand cigarettes.
2. Cigars £77.58 per kilogram.
3. Hand-rolling tobacco £81.86 per kilogram.
4. Other smoking tobacco and chewing tobacco £34.26 per kilogram.”

(2) This section shall be deemed to have come into force at 6 o'clock in the evening of 30th November 1993.

3 Hydrocarbon oil

(1) In section 6(1) of the [1979 c. 5.] Hydrocarbon Oil Duties Act 1979 for “£0.3058” (duty on light oil) and “£0.2514” (duty on heavy oil) there shall be substituted “£0.3314” and “£0.2770” respectively.

(2) In section 11(1) of that Act (rebate on heavy oil) for “£0.0105” (fuel oil) and “£0.0149” (gas oil) there shall be substituted “£0.0116” and “£0.0164” respectively.

(3) In section 14(1) of that Act (rebate on light oil for use as furnace fuel) for “£0.0105” there shall be substituted “£0.0116”.

(4) This section shall be deemed to have come into force at 6 o'clock in the evening of 30th November 1993.

4 Vehicles excise duty

(1) The [1971 c. 10.] Vehicles (Excise) Act 1971 shall be amended as follows.

(2) In section 2(1)(b) (six month licences), for “£35” there shall be substituted “£50”.

(3) In Schedule 1 (annual rates of duty on motorcycles), in Part I, paragraph 4(a) (special provision about old motorcycles in Northern Ireland) shall be omitted.

(4) In Schedule 2 (annual rates of duty on hackney carriages)—

(a) in Part I, paragraph 3 (special provision about vehicles used partly for private purposes) and paragraph 5 (special provision for Northern Ireland) shall be omitted; and

(b) in the second column of the first entry in the Table set out in Part II (hackney carriages with seating capacity under nine), for “125” there shall be substituted “130”.

(5) In Schedule 4 (annual rates of duty on goods vehicles), in the Table set out in paragraph 4(1) (articulated vehicles), there shall be inserted at the end—

“38,000 44,000 — — — 2,730 2,730 1,240”

(6) In Schedule 4, in paragraph 6 (farmers' goods vehicles and showmen’s goods vehicles), sub-paragraph (6)(a), (c) and (d) (exceptional cases where rate is not determined according to sub-paragraphs (3) to (5)) shall be omitted.

(7) In Schedule 5 (annual rates of duty on vehicles not falling within Schedules 1 to 4A), in the second column of paragraph 2 in the Table set out in Part II (vehicles other than those constructed before 1947), for “125.00” there shall be substituted “130.00”.

(8) This section shall apply in relation to licences taken out after 30th November 1993.

Other provisions

5 Vehicles excise duty: miscellaneous provisions

Schedule 2 to this Act (which contains miscellaneous provisions relating to vehicles excise duty) shall have effect.

6 Gaming machine licence duty

Schedule 3 to this Act (which makes amendments to the [1981 c. 63.] Betting and Gaming Duties Act 1981 about gaming machine licence duty) shall have effect.

Chapter II Appeals and Penalties

VAT and duties tribunals

7 VAT and duties tribunals

(1) As from the coming into force of this section the tribunals for which provision is made by Schedule 8 to the [1983 c. 55.] Value Added Tax Act 1983 (value added tax tribunals)—

(a) shall be known as the VAT and duties tribunals; and

(b) shall (in addition to their jurisdiction in relation to matters relating to value added tax) have the jurisdiction in relation to matters relating to customs and excise which is conferred by this Chapter.

(2) Accordingly—

(a) the President of Value Added Tax Tribunals and any Vice-President of Value Added Tax Tribunals shall be known after the coming into force of this section as, respectively, the President of the VAT and Duties Tribunals and a Vice-President of the VAT and Duties Tribunals; and

(b) references in the Value Added Tax Act 1983 or in any other enactment, or in any subordinate legislation, to a value added tax tribunal, to the President of Value Added Tax Tribunals or to a Vice-President of Value Added Tax Tribunals, and any cognate expressions, shall be construed in accordance with subsection (1) and paragraph (a) above.

(3) In the following provisions of this Chapter references to an appeal tribunal are references to a VAT and duties tribunal.

(4) Sections 25 and 29 of the [1985 c. 54.] Finance Act 1985 (settling of appeals by agreement and enforcement of decisions of tribunal) shall have effect as if—

(a) the references to section 40 of the [1983 c. 55.] Value Added Tax Act 1983 included references to this Chapter; and

(