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Finance Act 1974

Status:

This is the original version (as it was originally enacted).

  1. Introductory Text

  2. PART I Customs and Excise and Value Added Tax

    1. 1.Increase of duties on spirits, beer, wine, British wine and tobacco

    2. 2.Increase of certain duties on betting

    3. 3.Continuation of powers under section 9 of Finance Act 1961

    4. 4.Delivery of rum for home use after two years' warehousing

    5. 5.Value added tax-time of supply

    6. 6.Value added tax tribunals

  3. PART II Income Tax, Corporation Tax and Capital Gains Tax (General)

    1. 7.Charge of income tax for 1974-75

    2. 8.Increase of surtax rates for 1972-73

    3. 9.Charge of corporation tax for financial year 1973

    4. 10.Corporation tax-other rates and fractions

    5. 11.Mitigation of corporation tax liability of small companies

    6. 12.Rate of advance corporation tax for financial year 1974

    7. 13.Payments in addition to advance corporation tax due in financial year 1974

    8. 14.Alteration of personal reliefs

    9. 15.Maintenance payments

    10. 16.Partnership retirement annuities

    11. 17.Expenditure on fire safety

    12. 18.Expenses allowances to directors and others

    13. 19.Restrictions on relief for interest

    14. 20.Share option and share incentive schemes

    15. 21.Cases I and II of Schedule E

    16. 22.Foreign pensions or annuities

    17. 23.Income from trade, etc. carried on abroad

    18. 24.Returns of persons treated as employees

    19. 25.Sub-contractors in construction industry

    20. 26.Life insurance companies

    21. 27.Friendly societies

    22. 28.Trade unions

    23. 29.Depreciatory transactions

    24. 30.Transactions in deposits without certificate or in debts

    25. 31.Replacement of business assets

    26. 32.Disposals of shares in unit trusts, investment trusts and funds in court

    27. 33.Reduced rate of capital gains tax for certain unit trusts and for funds in court

    28. 34.Transfer of business on retirement

    29. 35.Interest paid to directors and directors' associates

    30. 36.Amendment of Taxes Act section 243

    31. 37.Tax on company in liquidation

  4. PART III Capital Gains from Land

    1. CHAPTER I Development Gains from Land

      1. 38.Certain development gains from land to be taxed as income

      2. 39.Exemption or relief for small disposals

      3. 40.Development losses

      4. 41.Disposals of interests in land effected indirectly

      5. 42.Disposals of interests in settled property

      6. 43.Special rates of charge for development gains accruing to trustees, personal representatives or unit trust schemes

      7. 44.Supplementary

    2. CHAPTER II First Letting or Occupation of Building after Material Development

      1. 45.Charge to tax; first letting or occupation of building after material development

      2. 46.Interpretation, etc.

    3. CHAPTER III Other Provisions About Capital Gains from Land

      1. 47.Matters arising out of Chapters I and II of this Part

      2. 48.Disposals of interests in land in United Kingdom reflecting development value

  5. PART IV Miscellaneous and General

    1. 49.Increase of certain stamp duties

    2. 50.Vehicle excise duty-disabled persons

    3. 51.Gifts to Historic Churches Preservation Trust

    4. 52.Definition of " local authority " for certain tax purposes

    5. 53.Regional employment premiums

    6. 54.Grants towards duty charged on bus fuel

    7. 55.Power to authorise amendment of taxi fare byelaws

    8. 56.Trustee savings banks-special investments

    9. 57.Citation, interpretation, construction and repeals

  6. SCHEDULES

    1. SCHEDULE 1

      Relief for Interest

      1. PART I Amendment of Schedule 9 to Finance Act 1972

        1. 1.In Schedule 9 to the Finance Act 1972, for the...

        2. 2.In paragraph 1 of that Schedule, after the words "...

        3. 3.After paragraph 5 of that Schedule there shall be inserted...

      2. PART II Restriction on Relief for Loans for Purchase or Improvement of Land

        1. 4.(1) Subject to the following provisions of this Part of...

        2. 5.(1) Where Part I of Schedule 9 to the Finance...

        3. 6.(1) Where Part I of Schedule 9 to the Finance...

        4. 7.Relief under section 75 of the Finance Act 1972 for...

        5. 8.(1) Where any interest paid by persons as the personal...

      3. PART III Further Cases of Interest Eligible for Relief

        1. Loan appplied in acquiring interest in close company

          1. 9.(1) Subject to the following provisions of this Part of...

          2. 10.The conditions referred to in paragraph 9 above are—

        2. Loan applied in acquiring interest in partnership

          1. 11.(1) Subject to the following provisions of this Part of...

          2. 12.The conditions referred to in paragraph 11 above are—

        3. Provisions supplementary to paragraphs 9 to 12

          1. 13.If at any time after the application of the proceeds...

          2. 14.(1) The individual shall be treated as having recovered an...

          3. 15.Paragraph 10 or, as the case may be, 12 and...

          4. 16.In paragraphs 9 and 10 above expressions to which a...

        4. Loan to pay estate duty

          1. 17.(1) Interest is eligible for relief under section 75 of...

          2. 18.If or to the extent that any relief in respect...

          3. 19.Paragraph 17 above does not apply to interest on so...

          4. 20.Sufficient evidence of the amount of estate duty paid in...

          5. 21.For the purposes of the preceding paragraphs—

          6. 22.The preceding paragraphs shall apply to estate duty leviable under...

        5. Supplementary

          1. 23.Paragraphs 2, 14 and 15 of Schedule 9 to the...

        6. Loan to purchase life annuity

          1. 24.(1) Subject to the following provisions of this paragraph, interest...

      4. PART IV Amendment of Schedule 10 paragraph 7 of Finance Act 1972

        1. 25.(1) In paragraph 7 of Schedule 10 to the Finance...

      5. PART V Amendment of Schedule 16 to Finance Act 1972

        1. 26.In Schedule 16 to the Finance Act 1972, in paragraph...

      6. PART VI Amendment of Taxes Act

        1. 27.The provisions of the Taxes Act specified in the first...

        2. 28.In section 175(2)(a) of the Taxes Act for the word...

        3. 29.In paragraph 2(2) of Part III of Schedule 12 to...

    2. SCHEDULE 2

      Deductions or Exception in Respect of Certain Emoluments

      1. Duties wholly performed outside the United Kingdom

        1. 1.(1) Where the duties of an office or employment are...

        2. 2.For the purposes of paragraph 1 above a period in...

      2. Foreign emoluments

        1. 3.(1) Subject to paragraph 4 below, where the emoluments from...

        2. 4.Where the duties of an office or employment are performed...

      3. Amount of emoluments

        1. 5.For the purposes of the preceding paragraphs the amount of...

        2. 6.Where the emoluments from an office or employment are foreign...

    3. SCHEDULE 3

      Provisions Supplementary to Section 38

      1. PART I Definitions of Current Use Value, Material Development, etc.

        1. Definition of current use value

          1. 1.(1) For the purposes of the principal section and this...

        2. Current use value—part disposals

          1. 2.(1) Subject to sub-paragraphs (5) to (7) below, this paragraph...

          2. 3.In computing under this Chapter any gain accruing to a...

        3. Current use value—leases and reversions

          1. 4.(1) The current use value of an interest in land...

          2. 5.(1) In computing under this Chapter any gain accruing to...

        4. Definition of material development

          1. 6.In this Schedule, subject to the following paragraph, " material...

          2. 7.(1) The doing of any of the following things in...

          3. 8.The classes of purposes mentioned in paragraph 7(1)(f) above are...

        5. Date when material development is begun

          1. 9.(1) For the purposes of this Schedule material development shall...

        6. Interpretation

          1. 10.(1) In this Part of this Schedule, unless the context...

      2. PART II Other Provisions Supplementary to Section 38

        1. Computation of development gain in respect of disposal of interest in land after material development has been carried out

          1. 11.(1) This paragraph shall apply in relation to a disposal...

        2. Computation of development gain in respect of disposal of interest in land reflecting expenditure on enhancement

          1. 12.(1) This paragraph shall apply in relation to a disposal...

        3. Provisions supplementary to paragraphs 11 and 12

          1. 13.(1) Where paragraph 11 of this Schedule would, apart from...

          2. 14.(1) Subject to the following sub-paragraph, material development shall for...

        4. Computation of amount given by subsection (3)(c) of principal section in certain cases within paragraph 23(4) of Schedule 6 to the Finance Act 1965

          1. 15.Where a chargeable gain accrues to a person on a...

        5. Computation of development gains in connection with replacements of business assets

          1. 16.(1) Subject to the provisions of paragraph 2 of Schedule...

          2. 17.Where under subsection (1)(b) or (2)(b) of section 33 of...

        6. Replacement of business assets

          1. 18.(1) If the consideration which a person carrying on a...

        7. Replacement of business assets: depreciating assets

          1. 19.(1) Paragraph 16 of Schedule 19 to the Finance Act...

        8. Company amalgamations

          1. 20.(1) Where a company issues shares or debentures to a...

        9. Private residences

          1. 21.Where subsection (3) of section 29 of the Finance Act...

        10. Transfer of business on retirement

          1. 22.(1) Where a disposal within subsection (1) of section 34...

        11. Insurance companies

          1. 23.Where, in the case of an insurance company carrying on...

        12. Chargeable gains in respect of mineral royalties

          1. 24.No part of any chargeable gain which under section 29...

        13. Computation of development gain in respect of disposal of interest in land with planning permission for the winning and working of minerals

          1. 25.(1) Without prejudice to any other provisions of this Schedule...

    4. SCHEDULE 4

      Transitional Provisions Relating to Development Gains

      1. 1.In this Schedule " the principal section " means section...

      2. Replacement of business assets

        1. 2.(1) This paragraph shall apply in relation to a disposal...

      3. Conditional contracts entered into before 18th December 1973

        1. 3.If the disposal of an asset under a conditional contract...

      4. Disposals under arrangements made before 15th December 1973

        1. 4.Where an owner of an interest in land to which...

      5. Disposal to authority exercising compulsory powers where notice to treat was served before 18th December 1973

        1. 5.(1) Where a disposal of an interest in land to...

    5. SCHEDULE 5

      Provisions Supplementary to Section 39

      1. Interpretation

        1. 1.In this Schedule " the principal section " means section...

      2. Net proceeds

        1. 2.Paragraph 14(5) of Schedule 6 to the Finance Act 1965...

        2. 3.Paragraph 14(2)(a) of Schedule 7 to the Finance Act 1965...

      3. Disregard of proceeds of certain disposals

        1. 4.(1) For the purposes of the principal section the consideration...

        2. 5.For the purposes of the principal section the consideration for...

      4. Gifts to charities etc.

        1. 6.In section 119(2)(a) of the Finance Act 1972 (gifts to...

    6. SCHEDULE 6

      Development Losses

      1. Interpretation

        1. 1.(1) In this Schedule " the principal section " means...

      2. Losses accruing to persons not resident or ordinarily resident in the United Kingdom

        1. 2.A loss accruing to a person in a chargeable period...

      3. Modification of sections 176 and 179 of the Taxes Act (Case VI losses) in relation to development losses

        1. 3.In its application to a development loss in accordance with...

        2. 4.Without prejudice to the following provisions of this Schedule, any...

      4. Computation of development loss in cases where paragraph 11 or 12 of Schedule 3 would apply in computing a development gain

        1. 5.For the purpose of computing the development loss accruing to...

      5. Computation of amount given by subsection (4) of principal section in certain cases within paragraph 23(4) of Schedule 6 to the Finance Act 1965

        1. 6.Where an allowable loss accrues to a person on a...

      6. Private residences

        1. 7.Where a claim under the principal section is made in...

      7. Set-off of development losses

        1. 8.(1) Where, in the case of any person, section 39(1)...

      8. Insurance companies

        1. 9.(1) Where, in the case of an insurance company carrying...

    7. SCHEDULE 7

      Treatment of Development Gains under the Tax Acts

      1. Individuals

        1. 1.For the purposes mentioned in subsection (3) of section 32...

        2. 2.(1) An individual to whom a development gain accrues may...

      2. Companies: general

        1. 3.(1) Subject to paragraph 4 below, advance corporation tax paid...

      3. Close companies

        1. 4.(1) Paragraph 3(1) above shall not apply in the case...

        2. 5.In paragraph 10(8) of Schedule 16 to the Finance Act...

        3. 6.After paragraph 14 of Schedule 16 to the Finance Act...

      4. Insurance companies

        1. 7.(1) A development gain accruing to an insurance company carrying...

      5. Discretionary trusts

        1. 8.In section 17 of the Finance Act 1973 (payments under...

      6. Estates of deceased persons in course of administration

        1. 9.(1) Where a development gain has accrued to the personal...

      7. Settlements on children

        1. 10.Where a development gain accrues in respect of a disposal...

    8. SCHEDULE 8

      Adaptations and Amendments of Provisions Relating to the Taxation of Capital Gains

      1. Persons chargeable to tax in respect of development gains

        1. 1.Subsections (1) and (2) of section 20 of the Finance...

      2. Development gains accruing to non-resident companies and trusts

        1. 2.Section 41 of the Finance Act 1965 (chargeable gains accruing...

        2. 3.Section 42 of the Finance Act 1965 (chargeable gains accruing...

      3. Development gains accruing in connection with replacement of business assets

        1. 4.Where a development gain accrues to a person in respect...

      4. Development gains accruing in connection with company amalgamations

        1. 5.Where a company has issued shares or debentures to a...

      5. Transfer of business to a company

        1. 6.In paragraph 15 of Schedule 19 to the Finance Act...

        2. 7.(1) If, in a case where paragraph 15 of Schedule...

    9. SCHEDULE 9

      Supplementary Provisions about Deemed Disposals under Section 45

      1. Interpretation

        1. 1.(1) In this Schedule— " the five-year period " in...

      2. The interest of a relevant person

        1. 2.(1) In the case of a relevant chargeable building, this...

      3. Interests other than that of a relevant person

        1. 3.(1) Subject to the following paragraphs of this Schedule, this...

        2. 4.(1) In the case of a relevant chargeable building, paragraph...

        3. 5.In the case of a relevant chargeable building, subsection (1)...

      4. Provisions supplementary to paragraph 3

        1. 6.(1) The following provisions of this paragraph shall have effect...

      5. Exemption for interest in land occupied on the material date in right of that interest

        1. 7.(1) Where, in the case of a relevant chargeable building,...

      6. Exemption for interest in land disposed of after the material date

        1. 8.(1) Where, in the case of a relevant chargeable building,...

      7. Exemption by reference to occupation within three years of the material date of land then intended to be occupied

        1. 9.(1) The following provisions of this paragraph shall have effect...

      8. Exemption for interests in land subject on 18th December 1973 to certain leases or agreements for a lease

        1. 10.(1) In the case of a relevant chargeable building, subsection...

      9. Groups of companies

        1. 11.(1) For the purpose of determining whether a chargeable building...

      10. Tied premises

        1. 12.(1) For the purposes of this Chapter a person carrying...

      11. Power to make assessments etc. in connection with certain deemed disposals

        1. 13.(1) Where in accordance with this Schedule subsection (1) of...

      12. Postponement of payment of tax

        1. 14.(1) Subject to sub-paragraph (2) below, where an interest in...

      13. Consideration for deemed disposal to be disregarded in certain circumstances in computing capital gain

        1. 15.Where an interest in land is under subsection (1) of...

      14. Deemed disposals in cases involving the grant of a lease for a premium

        1. 16.(1) Where an interest in land is under subsection (1)...

        2. 17.Where an interest in land is under subsection (1) of...

        3. 18.Where an interest in land consisting of a reversion on...

    10. SCHEDULE 10

      Matters Arising out of Chapters I and II of Part III of this Act

      1. Recovery of tax from persons not primarily liable

        1. 1.The following provisions (which provide for the recovery of tax...

      2. Postponement of payment of tax

        1. 2.Subject to paragraph 14(6) of Schedule 9 to this Act,...

      3. Returns by relevant persons

        1. 3.(1) Every person who to the best of his knowledge...

      4. Information

        1. 4.(1) The inspector may by notice in writing require—

      5. Amendments of the Taxes Management Act 1970

        1. 5.(1) The Taxes Management Act 1970 shall have effect subject...

    11. SCHEDULE 11

      Increase of Certain Stamp Duties

      1. PART I Provisions Having Effect in Great Britain

        1. 1.(1) This Part of this Schedule, except paragraphs 6 and...

        2. Bearer instruments

          1. 2.(1) The heading "Bearer Instrument" inserted in Schedule 1 to...

        3. Conveyance or transfer on sale

          1. 3.For the Table set out in Part I of Schedule...

          2. 4.(1) Section 55 of the Finance Act 1963 (rates of...

          3. 5.In section 62(2) of the Finance Act 1963 (rate of...

        4. Composition in respect of certain transfers etc.

          1. 6.(1) In section 115(3) of the Stamp Act 1891 (rate...

          2. 7.(1) In subsection (2) of section 37 of the Finance...

          3. 8.(1) In subsection (3) of section 65 of the Finance...

        5. Duplicates and counterparts

          1. 9.In the heading " Duplicate or Counterpart of any instrument...

        6. Lease or tack

          1. 10.(1) The heading " Lease or Tack " in Schedule...

      2. PART II Provisions Having Effect in Northern Ireland

        1. 11.(1) This Part of this Schedule shall have effect as...

        2. Bearer instruments

          1. 12.(1) The heading " Bearer Instrument" inserted in Schedule 1...

        3. Conveyance or transfer on sale

          1. 13.For the Table set out in Part I of Schedule...

          2. 14.(1) Section 4 of the Finance Act (Northern Ireland) 1963...

          3. 15.In section 11(2) of the Finance Act (Northern Ireland) 1963...

        4. Composition in respect of certain transfers etc.

          1. 16.(1) In section 115(3) of the Stamp Act 1891 (rate...

          2. 17.(1) In paragraph (4) of Article 11 of the Finance...

        5. Duplicates and counterparts

          1. 18.In the heading " Duplicate or Counterpart of any instrument...

        6. Lease or tack

          1. 19.(1) The heading " Lease or Tack " in Schedule...

      3. PART III Saving for Certain Transfers of Stock or Marketable Securities

        1. 20.(1) This Part of this Schedule shall have effect as...

        2. 21.(1) In the case of a transfer to which this...

        3. 22.(1) An authorised depositary who for the purposes of the...

        4. 23.(1) This paragraph applies to the following documents and records...

    12. SCHEDULE 12

      Substitution of Local Authority as defined in Section 52

      1. 1.In section 15(2) of the Finance Act 1894 for the...

      2. 2.In section 40(2) of the Finance Act 1930 for the...

      3. 3.In section 40(1)(b) of the Finance Act 1931 after the...

      4. 4.In section 33(5)(e) of the Finance Act 1951 for the...

      5. 5.In section 8(3)(b) of the Finance Act (Northern Ireland) 1951...

      6. 6.In section 74 of the Finance Act 1952—

      7. 7.In section 29 of the Finance Act 1967 for the...

      8. 8.In section 6(3) of the Finance Act (Northern Ireland) 1967...

      9. 9.In section 353 of the Taxes Act subsections (2) and...

      10. 10.In section 526(5) of the Taxes Act, in the definition...

      11. 11.In section 31 of the Finance Act 1971 subsection (2)...

      12. 12.In Schedule 25 to the Finance Act 1972 and in...

    13. SCHEDULE 13

      Regional Employment Premiums

      1. The Selective Employment Payments Act 1966

        1. 1.For section 1(1) of the Selective Employment Payments Act 1966...

        2. 2.In section 1(2)(b) of that Act, for the words "employed...

        3. 3.In section 3(2) of that Act, for the words from...

        4. 4.In section 3 of that Act, at the end there...

        5. 5.In section 7(1)(b) of that Act, for the words from...

        6. 6.In section 10(1) of that Act, after the definition of...

      2. The Finance Act 1967

        1. 7.In section 26(2) of the Finance Act 1967, after the...

        2. 8.In section 26(4) of that Act, after paragraph (b) there...

    14. SCHEDULE 14

      Enactments Repealed

      1. PART I Interest

      2. PART II Share Option and Share Incentive Schemes

      3. PART III Stamp Duty Repeals having effect from 1st May 1974

      4. PART IV Stamp Duty Repeals having effect from 1st August 1974

      5. PART V Regional Employment Premiums

      6. PART VI Miscellaneous

      7. PART VII Spent Enactments

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