Finance Act 1977

PART II Consequential Amendments

Finance Act 1972, Part I

15 At the following places in the 1972 Act for the words "in the course of a business " there shall be substituted the words " in the course or furtherance of any business " —

• section 15A(i), 18,19(2) (twice), 31(3), 35(2) and (4); and

• Schedule 4, Group 8, Note (2)(c).

16 At the places in that Act specified in the first column of the following Table, the words shown in the second column are replaced by those shown in the third column—

TABLE

Section/subsection/ Schedule reference	Existing words	Substituted words
Section 12(8)	" the preceding subsection "	" subsection (7) or (7A) above "
Section 14(5)	" section 3(6)"	" section 3(9)"
Section 15(2)	" section 3 "	" section 4 "
Section 15A(1)(b)	" within the meaning of section 5(6) of this Act he would be entitled to deduct"	" he would be entitled to credit for "
Section 21(2)	" section 6 "	" section 6(5) or (6) "
Section 23(2)	" club or association "	" club, association or organisation "
Section 28(1)	" deducted "	" credited "
Section 29	" paragraph 5 "	" paragraph 6 ".
Section 30(6)	" paragraph 2 "	" paragraph 6 "
Section 30(7)	" section 3(2)"	" section 3(5)"
Section 32(1)	" section 3(2)"	" section 3(5)"
Section 40(1)(d)	" deducted by "	" credited to "
Section 40(4)(b)	" section 3(2)"	section 3(5)"
Section 46(1)—
(a) in the definition of "prescribed accounting period "	" section 30(1)"	" section 3(1)"
(b) in the definition of " taxable person "	" section 4 "	" section 2(2)"

17 In section 15 of that Act, the following shall be substituted for subsection (5)—

“(5) References in this section to tax chargeable do not include any tax which, by virtue of an order under section 3(9), is excluded from credit under that section.”

18 In section 43(4) of that Act, for paragraph (b) there shall be substituted—

“(b) for excluding any tax from credit under section 3”.

19 In section 46(1) of that Act the following amendments shall be made—

(a) after the definition of " input tax " there shall be inserted—

• “' major interest ', in relation to land, means the fee simple or a tenancy for a term certain exceeding 21 years, and in relation to Scotland means—

  (a)

  the estate or interest of the proprietor of the dominium utile, or

  (b)

  in the case of land not held on feudal tenure, the estate or interest of the owner, or the lessee's interest under a lease for a period exceeding 21 years”;

(b) after the definition of "money" there shall be inserted—

• “' prescribed ' means prescribed by regulations”;

(c) after the definition of " quarter " there shall be inserted—

• “' regulations ' means regulations made by the Commissioners under this Part of this Act ", and”

(d) for the definition of "taxable supply" there shall be substituted—

• “' taxable supply ' has the meaning assigned to it by section 2(2) of this Act”.

20 In Schedule 1 to that Act, at the end of paragraph 14 there shall be added " and references in this Schedule to supplies are references to supplies made in the course or furtherance of a business ".

Other enactments (including subordinate legislation)

21 In section 258(3) of the [1952 c. 44.] Customs and Excise Act 1952, after the words " this section " there shall be inserted—

“and to section 11 of the Finance Act 1972 (as substituted by section 14 of, and Part I of Schedule 6 to, the Finance Act 1977)”.

22 In section 4(1) of the [1973 c. 51.] Finance Act 1973, for "deducted" there shall be substituted " credited ".

23 In section 6 of that Act, an additional subsection shall be inserted as follows—

“(2) As from 1st January 1978, the reference above to section 5(7) of the Finance Act 1972 shall be read as a reference to section 6(3) of that Act”.

24 In section 18(6) of the [1975 c. 45.] Finance (No. 2) Act 1975, for the words " section 5(3) of " there shall be substituted " paragraph 2 of Schedule 2 to ".

25 In section 23(3) of the [1976 c. 40.] Finance Act 1976, for the words " deducted as input tax under section 3(1) " there shall be substituted " credited as input tax under section 3 ".

26 In the [S.I. 1972/1169.] Value Added Tax (Self-Supply) (No. 2) Order 1972, in Article 3 for the words " in the course of " there shall be substituted " in the course or furtherance of ".

27 In the [S.I. 1972/1970.] Value Added Tax (Cars) Order 1972, in Article 5(1), for the words " in the course of a business " there shall be substituted " in the course or furtherance of any business ".

28 In any Treasury order or Commissioners' regulations made before the passing of this Act under Part I of the 1972 Act, for any reference to a provision of that Act specified in column 1 of the following Table there shall be substituted the provision of that Act specified against it in column 2.

TABLE

Old reference	New reference
Section 3(3).	Sections 3 and 4.
Section 3(6).	Section 3(9).
Section 5(7).	Section 6(3).
Schedule 2, paragraph 2.	Schedule 2, paragraph 6.