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Commencement Orders

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Commencement Orders bringing legislation that affects this Act into force:

PART IE+W+S+N.I. Customs and Excise and Value Added Tax

Chapter IE+W+S+N.I. Customs and Excise

The rates of dutyE+W+S+N.I.

1 Tobacco products.E+W+S+N.I.

(1)For the Table in Schedule 1 to the M1Tobacco Products Duty Act 1979 there shall be substituted—

Table
1.CigarettesAn amount equal to 21 per cent. of the retail price plus £30·61 per thousand cigarettes.
2.Cigars£47·05 per kilogram.
3.Hand-rolling tobacco£49·64 per kilogram.
4.Other smoking tobacco and chewing tobacco£24·95 per kilogram.

(2)This section shall be deemed to have come into force on 21st March 1986.

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Marginal Citations

2 Hydrocarbon oil.E+W+S+N.I.

(1)In section 6(1) of the M2Hydrocarbon Oil Duties Act 1979 for “£0·1794” (light oil) and “£0·1515” (heavy oil) there shall be substituted “£0·1938” and “£0·1639” respectively.

(2)In subsection (1) of section 11 of that Act (rebate on heavy oil) for paragraphs (a) and (b) there shall be substituted—

(a)in the case of fuel oil, of £0·0077 a litre less than the rate at which the duty is for the time being chargeable;

(b)in the case of gas oil, of £0·0110 a litre less than the rate at which the duty is for the time being chargeable; and

(c)in the case of heavy oil other than fuel oil and gas oil, equal to the rate at which the duty is for the time being chargeable.

(3)For subsection (2) of section 11 of that Act (definition of types of heavy oil), there shall be substituted—

(2)In this section—

  • fuel oil” means heavy oil which contains in solution an amount of asphaltenes of not less than 0·5 per cent. or which contains less than 0·5 per cent. but not less than 0·1 per cent. of asphaltenes and has a closed flash point not exceeding 150½C; and

  • gas oil” means heavy oil of which not more than 50 per cent. by volume distils at a temperature not exceeding 240½C and of which more than 50 per cent. by volume distils at a temperature not exceeding 340½C.

(4)This section shall be deemed to have come into force at 6 o’oclock in the evening of 18th March 1986.

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Marginal Citations

3 Vehicles excise duty.E+W+S+N.I.

F1(1). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F1(2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F1(3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F1(4). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F2(5). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F1(6). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F1(7). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F1(8). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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Amendments (Textual)

F1S. 3(1)-(4)(6)-(8) repealed (1.9.1994) by 1994 c. 22, ss. 64, 65, 66, Sch. 4, Sch. 5 Pt. I (with s. 57(4))

Other provisionsE+W+S+N.I.

4 Beer duty: minor amendments.E+W+S+N.I.

F3(1). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(2)After section 49 of the Alcoholic Liquor Duties Act 1979 there shall be inserted the following section—

49 Drawback allowable to brewer for sale.

(1)For the purpose of any claim for drawback by a brewer for sale in respect of duty charged on beer, duty which has been determined in accordance with regulations under section 49(1)(bb) above shall be deemed to be duty which has been paid (whether or not it is in fact paid by the time the claim is made).

(2)Subject to such conditions as the Commissioners see fit to impose, drawback allowable to a brewer for sale in respect of beer may be set against any amount to which the brewer is chargeable under section 38 above and, in relation to a brewer for sale, any reference in this Act or the Management Act to drawback payable shall be construed accordingly.

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Amendments (Textual)

5 Warehousing regulations.E+W+S+N.I.

Schedule 3 to this Act (which contains amendments about warehousing regulations) shall have effect.

6 Betting duties and bingo duty in Northern Ireland.E+W+S+N.I.

(1)The M3Betting and Gaming Duties Act 1981 (in this section referred to as “the 1981 Act”) shall have effect subject to the amendments in Part I of Schedule 4 to this Act, being amendments designed to extend to Northern Ireland—

(a)the provisions of the 1981 Act relating to general betting duty and pool betting duty (in place of the provisions of Part III of the M4Miscellaneous Tranferred Excise Duties Act (Northern Ireland) 1972 relating to those duties); and

(b)the provisions of the 1981 Act relating to bingo duty.

(2)Part II of Schedule 4 to this Act shall have effect for the purpose of making consequential amendments of certain Northern Ireland legislation; and Part III of that Schedule shall have effect for the purpose of extending to Northern Ireland certain subordinate legislation made under the 1981 Act.

(3)Schedule 4 to this Act,—

(a)so far as it relates to general betting duty or pool betting duty, shall come into force on the betting commencement date, but shall not have effect in relation to duty in respect of bets made before that date; and

(b)so far as it relates to bingo duty, shall come into force on the bingo commencement date, but shall not impose any charge to duty in respect of bingo played in Northern Ireland before that date.

(4)Part III of the M5Miscellaneous Transferred Excise Duties Act (Northern Ireland) 1972 shall cease to have effect on the betting commencement date except in relation to duty in respect of bets made before that date.

(5)In this section and Schedule 4 to this Act—

  • the betting commencement date” means 29th September 1986 or, if later, the day appointed for the coming into operation of Part II (betting) of the M6Betting, Gaming, Lotteries and Amusements (Northern Ireland) Order 1985; and

  • the bingo commencement date” means 29th September 1986 or, if later, the day appointed for the coming into operation of Chapter II of Part III (gaming on bingo club premises) of that Order.

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Marginal Citations

7 Betting and gaming duties: evidence by certificate, etc.E+W+S+N.I.

After section 29 of the M7Betting and Gaming Duties Act 1981 there shall be inserted the following section—

29A Evidence by certificate, etc.

(1)A certificate of the Commissioners—

(a)that any notice required by or under this Act to be given to them had or had not been given at any date, or

(b)that any permit, licence or authority required by or under this Act had or had not been issued at any date, or

(c)that any return required by or under this Act had not been made at any date, or

(d)that any duty shown as due in any return or estimate made in pursuance of this Act had not been paid at any date,

shall be sufficient evidence of that fact until the contrary is proved.

(2)A photograph of any document furnished to the Commissioners for the purposes of this Act and certified by them to be such a photograph shall be admissible in any proceedings, whether civil or criminal, to the same extent as the document itself.

(3)Any document purporting to be a certificate under subsection (1) or (2) above shall be deemed to be such a certificate until the contrary is proved.

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Marginal Citations

8 Licences under the customs and excise Acts.E+W+S+N.I.

(1)No excise licence duty shall be chargeable on the grant after 18th March 1986 of an excise licence under any of the provisions of the M8Alcoholic Liquor Duties Act 1979 (licensing of various activities relating to the production of alcoholic liqour) or under section 2 of the M9Matches and Mechanical Lighters Duties Act 1979 (licensing of manufacture of matches).

(2)The following enactments shall cease to have effect—

(a)sections 12(2), 18(3), F4. . . and 75(3) of the Alcoholic Liquor Duties Act 1979 and section 2(2) of the Matches and Mechanical Lighters Duties Act 1979 (which provide for certain excise licences, the duty on which is abolished by subsection (1) above, to expire on a specific date in each year); and

(b)section 81 of the Alcoholic Liquor Duties Act 1979 (under which a licence is required for the leeping or using of a still by any person otherwise than as a distiller, rectifier or compounder).

(3)The holder of a licence under any of the enactments specified in subsection (5) below may suurender the licence to the Commissioners of Customs and Excise at any time.

(4)The Commissioners of Customs and Excise may at any time revoke a licence granted in respect of any premises under any of the enactments specified in subsection (5) below if it appears to them that the holder of the licence has ceased to carry on at those premises the activity in respect of which the licence was granted.

(5)The enactments referred to in subsections (3) and (4) above are—

(a)section 12 of the Alcoholic Liquor Duties Act 1979 (distillers),

(b)section 18 of that Act (rectifiers),

(c)section 47 of that Act (brewers),

(d)section 48 of that Act (persons using premises for adding solutions to beer),

(e)section 54 of that Act (wine producers),

(f)section 55 of that Act (made-wine producers), and

F5(g). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(6)Schedule 5 to this Act shall have effect for the purpose of supplementing the provisions of this section.

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Amendments (Textual)

Marginal Citations

Chapter IIE+W+S+N.I. Value Added Tax

F69. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .E+W+S+N.I.

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Amendments (Textual)

F6S. 9 repealed (1.9.1994) by 1994 c. 23, ss. 100(2), 101(1), Sch. 15 (with Sch. 13 para. 9)

F710. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .E+W+S+N.I.

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Amendments (Textual)

F7S. 10 repealed (1.9.1994) by 1994 c. 23, ss. 100(2), 101(1), Sch. 15 (with Sch. 13 para. 9)

F811. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .E+W+S+N.I.

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Amendments (Textual)

F8S. 11 repealed (1.9.1994) by 1994 c. 23, ss. 100(2), 101(1), Sch. 15 (with Sch. 13 para. 9)

F912. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .E+W+S+N.I.

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Amendments (Textual)

F9S. 12 repealed (1.9.1994) by 1994 c. 23, ss. 100(2), 101(1), Sch. 15 (with Sch. 13 para. 9)

F1013. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .E+W+S+N.I.

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Amendments (Textual)

F10S. 13 repealed (1.9.1994) by 1994 c. 23, ss. 100(2), 101(1), Sch. 15 (with Sch. 13 para. 9)

F1114. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .E+W+S+N.I.

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Amendments (Textual)

F11S. 14 repealed (1.9.1994) by 1994 c. 23, ss. 100(2), 101(1), Sch. 15 (with Sch. 13 para. 9)

F1215. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .E+W+S+N.I.

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Amendments (Textual)

F12S. 15 repealed (1.9.1994) by 1994 c. 23, ss. 100(2), 101(1), Sch. 15 (with Sch. 13 para. 9)

Part IIE+W+S+N.I. Income Tax, Corporation Tax and Capital Gains Tax

Chapter IE+W+S+N.I. General

Tax rates and main reliefsE+W+S+N.I.

16—22.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F13E+W+S+N.I.
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Amendments (Textual)

23 Employee share schemes: general amendments.E+W+S+N.I.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F14

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Amendments (Textual)

24 Approved profit sharing schemes: workers’ co-operatives.E+W+S+N.I.

(1)—(3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F15

(4)Where, for the purpose of securing (and maintaining) approval of its profit sharing scheme in accordance with Part I of Schedule 9 to the Finance Act 1978, the rules of a society which is a workers’ co-operative or which is seeking to be registered under the industrial and provident societies legislation as a workers’ co-operative contain—

(a)provision for membership of the society by the trustees of the scheme,

(b)provision denying voting rights to those trustees, or

(c)other provisions which appear to the registrar to be reasonably necessary for that purpose,

those provisions shall be disregarded in determining whether the society should be or continue to be registered under the industrial and provident societies legislation as a bona fide co-operative society.

(5)In subsection (4) above “the industrial and provident societies legislation” means—

(a)the M10Industrial and Provident Societies Act 1965, or

(b)the M11Industrial and Provident Societies Act (Northern Ireland) 1969,

and “registrar” has the same meaning as in each of those Acts and “co-operative society” has the same meaning as in section 1 of those Acts.

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Amendments (Textual)

Marginal Citations

25—32.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F16E+W+S+N.I.
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Amendments (Textual)

F1733. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .E+W+S+N.I.
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Amendments (Textual)

Foreign element: expensesE+W+S+N.I.

34—54.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F18E+W+S+N.I.
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Amendments (Textual)

Chapter IIE+W+S+N.I. Capital Allowances

55—57.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F19E+W+S+N.I.

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Amendments (Textual)

Chapter IIIE+W+S+N.I. CAPITAL GAINS

F2058. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .E+W+S+N.I.

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Amendments (Textual)

F20S. 58 repealed (6.3.1992 with effect as mentioned in s. 289(1)(2) of the repealing Act) by Taxation of Chargeable Gains Act 1992 (c. 12), ss. 289, 290, Sch.12 (with s. 201(3), Sch. 11 paras. 22, 26(2), 27).

59F21. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .E+W+S+N.I.

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Amendments (Textual)

F21S. 59 repealed (6.3.1992 with effect as mentioned in s. 289(1)(2) of the repealing Act) by Taxation of Chargeable Gains Act 1992 (c. 12), ss. 289, 290, Sch.12 (with s. 201(3), Sch. 11 paras. 22, 26(2), 27).

60F22. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .E+W+S+N.I.

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Amendments (Textual)

F22S. 60 repealed (6.3.1992 with effect as mentioned in s. 289(1)(2) of the repealing Act) by Taxation of Chargeable Gains Act 1992 (c. 12), ss. 289, 290, Sch.12 (with s. 201(3), Sch. 11 paras. 22, 26(2), 27).

Chapter IVE+W+S+N.I. Securities

61—63.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F23E+W+S+N.I.

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Amendments (Textual)

PART IIIE+W+S+N.I.STAMP DUTY

F2464. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .E+W+S+N.I.

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Amendments (Textual)

F24S. 64 repealed (27.7.1999 with effect as mentioned in Sch. 20 Pt. V(2) Notes 1, 2 of the amending Act) by 1999 c. 16, s. 139, Sch. 20 Pt. V(2)

X165–72. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F25E+W+S+N.I.

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Editorial Information

X1The repeal of ss. 66-72 has effect in relation to events taking place on or after a date to be appointed by the Treasury by order. No such date has been appointed as at the end of 2011. The text of these provisions will be restored, and any subsequent amendment history reconstructed, in the early part of 2012.

Amendments (Textual)

F25Ss. 64(1), 65–72 repealed by Finance Act 1990 (c. 29, SIF 114), s. 132, Sch. 19 Pt. VI and subject to amendments by 1996 c. 8, s. 196(1)(6); 1997 c. 16, ss. 99, 113, Sch. 18 Pt. VII, Note 2; 1999 c. 16, ss. 112(4)(6), 114(1)(2), 122, 139, Sch. 14 paras. 12-13, Sch. 17 Pt. I para. 8, Sch. 20 Pt. V(1)(2) Notes 1-2, Sch. 20 Pt. V(3) Note (which Sch. 14 paras. 12-13 and Sch. 17 para. 8 are repealed by 1999 c. 16, ss. 123(3)(4), 139, Sch. 20, Pt. V(6) Note); 2000 c. 17, ss. 134(3)(5), 156, Sch. 40 Pt. III Note 3 (which s. 134 is repealed by 2000 c. 17, s. 156, Sch. 40, Pt. III, Note)

[F26 Transfers between depositary receipt system and clearance systemE+W+S+N.I.

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Amendments (Textual)

F26Cross-heading and s. 72A inserted (28.7.2000 with effect as mentioned in s. 134(5)(a) of the amending Act) by 2000 c. 17, s. 134(1)(5) (which inserting provision is repealed by 2000 c. 17, s. 156, Sch. 40 Pt. III Note 3)

72AF27Transfers between depositary receipt system and clearance system.E+W+S+N.I.

(1)Where an instrument transfers relevant securities of a company incorporated in the United Kingdom between a depositary receipt system and a clearance system—

(a)the provisions of section 67(2) to (5) or, as the case may be, section 70(2) to (5) above shall not apply, and

(b)the stamp duty chargeable on the instrument is £5.

(2)A transfer between a depositary receipt system and a clearance system means a transfer—

(a)from (or to) a company that at the time of the transfer falls within section 67(6) above, and

(b)to (or from) a company that at that time falls within section 70(6) above.

(3)This section does not apply to a transfer from a clearance system (that is, from such a company as is mentioned in subsection (2)(b) above) if at the time of the transfer an election is in force under section 97A below in relation to the clearance services for the purposes of which the securities are held immediately before the transfer.]

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Amendments (Textual)

F27S. 72A and cross-heading inserted (28.7.2000 with effect as mentioned in s. 134(5)(a) of the amending Act) by 2000 c. 17, s. 134(1)(5) (which inserting provision is repealed by 2000 c. 17, s. 156, Sch. 40 Pt. III Note 3)

Reconstructions and acquistionsE+W+S+N.I.

73. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F28E+W+S+N.I.

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Amendments (Textual)

74 Reconstructions etc: repeals.E+W+S+N.I.

(1)The following provisions shall cease to have effect—

(a)section 55 of the M12Finance Act 1927 and section 4 of the M13Finance Act (Northern Ireland) 1928 (reconstructions and amalgamations);

(b)paragraph 12(1) and (1A) of Schedule 18 to the M14Finance Act 1980 (demergers);

(c)sections 78, 79 and 80 of the Finance Act 1985 (takeovers and winding-up).

(2)In paragraph 12(3) of Schedule 18 to the Finance Act 1980 for the words “sub-paragraph (2) above” there shall be substituted the words “this paragraph”.

(3)This section applies to any instrument executed in pursuance of a contract made on or after the day on which the rule of The Stock Exchange that prohibits a person from carrying on business as both a broker and a jobber is abolished.

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Marginal Citations

75 Acquisitions: reliefs.E+W+S+N.I.

(1)This section applies where a company (the acquiring company) acquires the whole or part of an undertaking of another company (the target company) in pursuance of a scheme for the reconstruction of the target company.

(2)If the first and second conditions (as defined below) are fulfilled, stamp duty under [F29Part I of Schedule 13 to the Finance Act 1999 (conveyance or transfer on sale)shall not be chargeable on an instrument executed for the purposes of or in connection with the transfer of the undertaking or part.

(3)An instrument on which stamp duty is not chargeable by virtue only of subsection (2) above shall not be taken to be duly stamped unless it is stamped with the duty to which it would be liable but for that subsection or it has, in accordance with section 12 of the Stamp Act 1891, been stamped with a particular stamp denoting that it is not chargeable with any duty.

(4)The first condition is that the registered office of the acquiring company is in the United Kingdom and that the consideration for the acquisition—

(a)consists of or includes the issue of [F30non-redeemable]shares in the acquiring company to all the shareholders of the target company;

(b)includes nothing else (if anything) but the assumption or discharge by the acquiring company of liabilities of the target company.

[F31In paragraph (a) above, “non-redeemable shares” means shares which are not redeemable shares.

.]

(5)The second condition is that—

(a)the acquisition is effected for bona fide commercial reasons and does not form part of a scheme or arrangement of which the main purpose, or one of the main purposes, is avoidance of liability to stamp duty, income tax, corporation tax or capital gains tax,

(b)after the acquisition has been made, each shareholder of each of the companies is a shareholder of the other, and

(c)after the acquisition has been made, the proportion of shares of one of the companies held by any shareholder is the same as the proportion of shares of the other company held by that shareholder.

(6)This section applies to any instrument which is executed after 24th March 1986 unless it is executed in pursuance of an unconditional contract made on or before 18th March 1986.

(7)This section shall be deemed to have come into force on 25th March 1986.]

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Amendments (Textual)

F29Words in s. 75(2) substituted (27.7.1999 with effect as mentioned in s. 112(6) of the amending Act) by 1999 c. 16, ss. 112(4)(6), 122, Sch. 14 para. 14

F30Words in s. 75(4)(a) inserted (28.7.2000 with effect as mentioned in s. 127(5) of the amending Act) by 2000 c. 17, s. 127(2)

F31Words in s. 75(4) added (28.7.2000 with effect as mentioned in s. 127(5) of the amending Act) by 2000 c. 17, s. 127(3)

Modifications etc. (not altering text)

C1S. 75 excluded (28.4.1997) by S.I. 1997/1156, reg. 12

76 Acquisitions: further provisions about reliefs.E+W+S+N.I.

(1)This section applies where a company (the acquiring company) acquires the whole or part of an undertaking of another company (the target company).

(2)If [F32the first and second conditions (as defined below)] is fulfilled, and stamp duty under [F33Part I of Schedule 13 to the Finance Act 1999 (conveyance or transfer on sale)] is chargeable on an instrument executed for the purposes of or in connection with—

(a)the transfer of the undertaking or part, or

(b)the assignment to the acquiring company by a creditor of the target company of any relevant debts (secured or unsecured) owed by the target company,

the rate at which the duty is charged under that heading shall not exceed that mentioned in subsection (4) below.

(3)[F34The first condition] is that the registered office of the acquiring company is in the United Kingdom and that the consideration for the acquisition—

(a)consists of or includes the issue of [F35non-redeemable shares (within the meaning of section 75(4)(a) above)] in the acquiring company to the target company or to all or any of its shareholders;

(b)includes nothing else (if anything) but cash not exceeding 10 per cent. of the nominal value of those shares, or the assumption or discharge by the acquiring company of liabilities of the target company, or both.

[F36(3A)The second condition applies only in relation to an instrument transferring land in the United Kingdom and is that the acquiring company is not associated with another company that is a party to arrangements with the target company relating to shares of the acquiring company issued in connection with the transfer of the undertaking or part.

F36(3B)Where an instrument transfers land in the United Kingdom together with other property, the provisions of this section apply as if there were two separate instruments, one relating to land in the United Kingdom and the other relating to other property.]

(4)The rate is the rate of[F370.5%] of the amount or value of the consideration for the sale to which the instrument gives effect.

(5)An instrument on which, by virtue only of [F38this section], the rate at which stamp duty is charged is not to exceed that mentioned in subsection (4) above shall not be taken to be duly stamped unless it is stamped with the duty to which it would be liable but for [F38this section] or it has, in accordance with section 12 of the Stamp Act 1891, been stamped with a particular stamp denoting that it is duly stamped.

(6)In subsection (2)(b) above “relevant debts” means—

(a)any debt in the case of which the assignor is a bank or trade creditor, and

(b)any other debt incurred not less than two years before the date on which the instrument is executed.

[F39(6A)For the purposes of subsection (3A) above—

(a)companies are associated if one has control of the other or both are controlled by the same person or persons, and

(b)arrangements” includes any scheme, agreement or understanding, whether or not legally enforceable.

The references in paragraph (a) above to control shall be construed in accordance with section 416 of the Taxes Act 1988.]

(7)This section applies to any instrument executed on or after the day on which the rule of The Stock Exchange that prohibits a person from carrying on business as both a broker and a jobber is abolished.

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Amendments (Textual)

F32Words in s. 76(2) substituted (retrospective to 24.4.2002 and with application as mentioned in s. 112(7)(8) of the amending Act) by 2002 c. 23, s. 112(1)(2)(7)-(9)

F33Words in s. 76(2) substituted (27.7.1999 with effect as mentioned in s. 112(6) of the amending Act) by 1999 c. 16, ss. 112(4)(6), 122, Sch. 14 para. 15(2)

F34Words in s. 76(3) substituted (retrospective to 24.4.2002 and with application as mentioned in s. 112(7)(8) of the amending Act) by 2002 c. 23, s. 112(1)(3)(7)-(9)

F35Words in s. 76(3)(a) substituted (28.7.2000 with effect as mentioned in s. 127(5) of the amending Act) by 2000 c.17, s. 127(4)

F36S. 76(3A)(3B) inserted (retrospective to 24.4.2002 and with application as mentioned in s. 112(7)(8) of the amending Act) by 2002 c. 23, s. 112(1)(4)(7)-(9)

F37Words in s. 76(4) substituted (27.7.1999 with effect as mentioned in s. 112(6) of theamending Act) by 1999 c. 16, ss. 112(4)(6), 122, Sch. 14 para. 15(3)

F38Words in s. 76(5) substituted (retrospective to 24.4.2002 and with application as mentioned in s. 112(7)(8) of the amending Act) by 2002 c. 23, s. 112(1)(5)(7)-(9)

F39S. 76(6A) inserted (retrospective to 24.4.2002 and with application as mentioned in s. 112(7)(8) of the amending Act) by 2002 c. 23, s. 112(1)(6)-(9)

Modifications etc. (not altering text)

C2S. 76 excluded (28.4.1997) by S.I. 1997/1156, reg. 12

s. 76 restricted (retrospective to 24.4.2002) by 2002 c. 23, s. 113(1)(a)(9)

X277. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F40E+W+S+N.I.

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Editorial Information

X2The repeal of s. 77 has effect in relation to events taking place on or after a date to be appointed by the Treasury by order. No such date has been appointed as at the end of 2011. The text of this provision will be restored, and any subsequent amendment history reconstructed, in the early part of 2012.

Amendments (Textual)

F40S. 77 repealed by Finance Act 1990 (c. 29, SIF 114), s. 132, Sch. 19 Pt. VI and subject to amendment by S.I. 1997/1156, reg. 12; 1999 c. 16, ss. 112(4)(6), 122, Sch. 14 para. 16 (which Sch. 14 para. 16 is repealed by 1999 c. 16, s. 139, Sch. 20 Pt. V(6) Note)

Loan capital, letters of allotment etc.E+W+S+N.I.

78 Loan capital.E+W+S+N.I.

F41(1). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F41(2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F41(3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F41(4). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F41(5). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F41(6). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(7)In this section “loan capital” means—

(a)any debenture stock, corporation stock or funded debt, by whatever name known, issued by a body corporate or other body of persons (which here includes a local authority and any body whether formed or established in the United Kingdom or elsewhere);

(b)any capital raised by such a body if the capital is borrowed or has the character of borrowed money, and whether it is in the form of stock or any other form;

(c)stock or marketable securities issued by the government of any country or territory outside the United Kingdom.

F41(8). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(9)In this section “designated international organisation” means an international organisation designated for the purposes of section [F42324 of the Taxes Act 1988] by an order made under subsection (1) of that section.

F41(10). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F41(11). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F41(12). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F41(13). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F41(14). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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Amendments (Textual)

F41S. 78(1)-(6)(8)(10)-(14) repealed (27.7.1999 with effect as mentioned in Sch. 20 Pt. V(2) Notes 1, 2 of the amending Act) by 1999 c. 16, s. 139, Sch. 20 Pt. V(2)

79 Loan capital: new provisions.E+W+S+N.I.

F43(1). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(2)–(8). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F44

X3F43(9). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F43(10). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F43(11). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(12)Subsections. . . F45X3F46. . .of section 78 above shall apply as if references to that section included references to this..

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Editorial Information

X3The repeal of s. 79(2)-(8) and words in s. 79(12) by the Finance Act 1990 has effect in relation to events taking place on or after a date to be appointed by the Treasury by order. No such date has been appointed as at the end of 2011. The text of those provisions, and those words, will be restored, and any subsequent amendment history reconstructed, in the early part of 2012.

Amendments (Textual)

F43S. 79(1)(9)-(11) repealed (27.7.1999 with effect as mentioned in Sch. 20 Pt. V(2) Notes 1, 2 of the amending Act) by 1999 c. 16, s. 139, Sch. 20 Pt. V(2)

F44S. 79(2)–(8) repealed by Finance Act 1990 (c. 29, SIF 114), s. 132, Sch. 19 Pt. VI and subject to amendments by 1999 c. 16, ss. 112(4)(6), 113(3)(4), 122, Sch. 14 para. 17, Sch. 16 para. 5 (which Sch. 14 para. 17 and Sch. 16 para. 5 are repealed by 1999 c. 16, ss. 123(3)(4), 139, Sch. 20 Pt.V(6) Note); 2000 c. 16, s. 133 (which s. 133 is repealed by 2000 c. 17, s. 156, Sch. 40 Pt. III Note 3)

F46Words in s. 79(12) repealed (27.7.1999 with effect as mentioned in Sch. 20 Pt. V(2) Notes 1, 2 of the amending Act) by 1999 c. 16, s. 139, Sch. 20 Pt. V(2)

80. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F47E+W+S+N.I.

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Amendments (Textual)

[F4880A Sales to intermediaries.E+W+S+N.I.

(1)Stamp duty shall not be chargeable on an instrument transferring stock of a particular kind on sale to a person or his nominee if—

(a)the person is a member of an EEA exchange, or a recognised foreign exchange, on which stock of that kind is regularly traded;

(b)the person is an intermediary and is recognised as an intermediary by the exchange in accordance with arrangements approved by the Commissioners; and

(c)the sale is effected on the exchange.

(2)Stamp duty shall not be chargeable on an instrument transferring stock of a particular kind on sale to a person or his nominee if—

(a)the person is a member of an EEA exchange or a recognised foreign options exchange;

(b)options to buy or sell stock of that kind are regularly traded on that exchange and are listed by or quoted on that exchange;

(c)the person is an options intermediary and is recognised as an options intermediary by that exchange in accordance with arrangements approved by the Commissioners; and

(d)the sale is effected on an EEA exchange, or a recognised foreign exchange, on which stock of that kind is regularly traded or subsection (3) below applies.

(3)This subsection applies if—

(a)the sale is effected on an EEA exchange, or a recognised foreign options exchange, pursuant to the exercise of a relevant option; and

(b)options to buy or sell stock of the kind concerned are regularly traded on that exchange and are listed by or quoted on that exchange.

(4)For the purposes of this section—

(a)an intermediary is a person who carries on a bona fide business of dealing in stock and does not carry on an excluded business; and

(b)an options intermediary is a person who carries on a bona fide business of dealing in quoted or listed options to buy or sell stock and does not carry on an excluded business.

(5)The excluded businesses are the following—

(a)any business which consists wholly or mainly in the making or managing of investments;

(b)any business which consists wholly or mainly in, or is carried on wholly or mainly for the purpose of, providing services to persons who are connected with the person carrying on the business;

(c)any business which consists in insurance business;

(d)any business which consists in managing or acting as trustee in relation to a pension scheme or which is carried on by the manager or trustee of such a scheme in connection with or for the purposes of the scheme;

(e)any business which consists in operating or acting as trustee in relation to a collective investment scheme or is carried on by the operator or trustee of such a scheme in connection with or for the purposes of the scheme.

(6)A sale is effected on an exchange for the purposes of subsection (1) or (2) above if (and only if)—

(a)it is subject to the rules of the exchange; and

(b)it is reported to the exchange in accordance with the rules of the exchange.

(7)An instrument on which stamp duty is not chargeable by virtue only of this section shall not be deemed to be duly stamped unless it has been stamped with a stamp denoting that it is not chargeable with any duty; and notwithstanding anything in section 122(1) of the M15Stamp Act 1891, the stamp may be a stamp of such kind as the Commissioners may prescribe.]

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Annotations are used to give authority for changes and other effects on the legislation you are viewing and to convey editorial information. They appear at the foot of the relevant provision or under the associated heading. Annotations are categorised by annotation type, such as F-notes for textual amendments and I-notes for commencement information (a full list can be found in the Editorial Practice Guide). Each annotation is identified by a sequential reference number. For F-notes, M-notes and X-notes, the number also appears in bold superscript at the relevant location in the text. All annotations contain links to the affecting legislation.

Amendments (Textual)

Modifications etc. (not altering text)

C3S. 80A: power to extend conferred (24.7.2002) by 2002 c. 23, s. 117(2)

C4S. 80A extended (26.7.2002) by S.I. 2002/1975, reg. 2

Marginal Citations

F4980B Intermediaries: supplementary.E+W+S+N.I.

(1)For the purposes of section 80A above the question whether a person is connected with another shall be determined in accordance with the provisions of section 839 of the M16Income and Corporation Taxes Act 1988.

(2)In section 80A above and this section—

  • collective investment scheme” has the meaning given in section 75 of the M17Financial Services Act 1986;

  • EEA exchange” means a market which appears on the list drawn up by an EEA State pursuant to Article 16 of European Communities Council Directive No. 93/22/EEC on investment services in the securities field;

  • EEA State” means a State which is a contracting party to the agreement on the European Economic Area signed at Oporto on the 2nd May 1992 as adjusted by the Protocol signed at Brussels on the 17th March 1993;

  • insurance business” means long term business or general business as defined in section 1 of the M18Insurance Companies Act 1982;

  • quoted or listed options” means options which are quoted on or listed by an EEA exchange or a recognised foreign options exchange;

  • stock” includes any marketable security;

  • trustee” and “the operator” shall, in relation to a collective investment scheme, be construed in accordance with section 75(8) of the Financial Services Act 1986.

(3)In section 80A above “recognised foreign exchange” means a market which—

(a)is not in an EEA State; and

(b)is specified in regulations made by the Treasury under this subsection.

(4)In section 80A above and this section “recognised foreign options exchange” means a market which—

(a)is not in an EEA State; and

(b)is specified in regulations made by the Treasury under this subsection.

(5)In section 80A above “the exercise of a relevant option” means—

(a)the exercise by the options intermediary concerned of an option to buy stock; or

(b)the exercise of an option binding the options intermediary concerned to buy stock.

(6)The Treasury may by regulations provide that section 80A above shall not have effect in relation to instruments executed in pursuance of kinds of agreement specified in the regulations.

(7)The Treasury may by regulations provide that if—

(a)an instrument falls within subsection (1) or (2) of section 80A above, and

(b)stamp duty would be chargeable on the instrument apart from that section,

stamp duty shall be chargeable on the instrument at a rate, specified in the regulations, which shall not exceed 10p for every £100 or part of £100 of the consideration for the sale.

(8)The Treasury may by regulations change the meaning of “intermediary” or “options intermediary” for the purposes of section 80A above by amending subsection (4) or (5) of that section (as it has effect for the time being).

(9)The power to make regulations under subsections (3) to (8) above shall be exercisable by statutory instrument subject to annulment in pursuance of a resolution of the House of Commons.

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Annotations are used to give authority for changes and other effects on the legislation you are viewing and to convey editorial information. They appear at the foot of the relevant provision or under the associated heading. Annotations are categorised by annotation type, such as F-notes for textual amendments and I-notes for commencement information (a full list can be found in the Editorial Practice Guide). Each annotation is identified by a sequential reference number. For F-notes, M-notes and X-notes, the number also appears in bold superscript at the relevant location in the text. All annotations contain links to the affecting legislation.

Amendments (Textual)

Marginal Citations

[F5080C Repurchases and stock lending.E+W+S+N.I.

(1)This section applies where a person (A) has entered into an arrangement with another person (B) under which—

(a)B is to transfer stock of a particular kind to A or his nominee, and

(b)stock of the same kind and amount is to be transferred by A or his nominee to B or his nominee,

and the conditions set out in subsection (3) below are fulfilled.

(2)Stamp duty shall not be chargeable on an instrument transferring stock to B or his nominee or A or his nominee in accordance with the arrangement.

(3)The conditions are—

(a)that the arrangement is effected on an EEA exchange or a recognised foreign exchange; and

(b)that stock of the kind concerned is regularly traded on that exchange.

(4)An arrangement does not fall within subsection (1) above if—

(a)the arrangement is not such as would be entered into by persons dealing with each other at arm’s length; or

(b)under the arrangement any of the benefits or risks arising from fluctuations, before the transfer to B or his nominee takes place, in the market value of the stock accrues to, or falls on, A.

(5)An instrument on which stamp duty is not chargeable by virtue only of subsection (2) above shall not be deemed to be duly stamped unless it has been stamped with a stamp denoting that it is not chargeable with any duty; and notwithstanding anything in section 122(1) of the M19Stamp Act 1891, the stamp may be a stamp of such kind as the Commissioners may prescribe.

(6)An arrangement is effected on an exchange for the purposes of subsection (3) above if (and only if)—

(a)it is subject to the rules of the exchange; and

(b)it is reported to the exchange in accordance with the rules of the exchange.

(7)In this section—

  • EEA exchange” has the meaning given in section 80B(2) above; and

  • recognised foreign exchange” has the meaning given in section 80B(3) above.

(8)The Treasury may by regulations provide that if stamp duty would be chargeable on an instrument but for subsection (2) above, stamp duty shall be chargeable on the instrument at a rate, specified in the regulations, which shall not exceed 10p for every £100 or part of £100 of the consideration for the transfer.

(9)The Treasury may by regulations amend this section (as it has effect for the time being) in order—

(a)to change the conditions for exemption from duty under this section; or

(b)to provide that this section does not apply in relation to kinds of arrangement specified in the regulations.

(10)The power to make regulations under subsection (8) or (9) above shall be exercisable by statutory instrument subject to annulment in pursuance of a resolution of the House of Commons.]

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Annotations are used to give authority for changes and other effects on the legislation you are viewing and to convey editorial information. They appear at the foot of the relevant provision or under the associated heading. Annotations are categorised by annotation type, such as F-notes for textual amendments and I-notes for commencement information (a full list can be found in the Editorial Practice Guide). Each annotation is identified by a sequential reference number. For F-notes, M-notes and X-notes, the number also appears in bold superscript at the relevant location in the text. All annotations contain links to the affecting legislation.

Amendments (Textual)

Modifications etc. (not altering text)

C5S. 80C: power to extend conferred (24.7.2002) by 2002 c. 23, s. 117(2)

C6S. 80C extended (26.7.2002) by S.I. 2002/1975, art. 2

Marginal Citations

F5181. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .E+W+S+N.I.

Annotations: Help about Annotation
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Annotations are used to give authority for changes and other effects on the legislation you are viewing and to convey editorial information. They appear at the foot of the relevant provision or under the associated heading. Annotations are categorised by annotation type, such as F-notes for textual amendments and I-notes for commencement information (a full list can be found in the Editorial Practice Guide). Each annotation is identified by a sequential reference number. For F-notes, M-notes and X-notes, the number also appears in bold superscript at the relevant location in the text. All annotations contain links to the affecting legislation.

Amendments (Textual)

F5282. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .E+W+S+N.I.

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Annotations are used to give authority for changes and other effects on the legislation you are viewing and to convey editorial information. They appear at the foot of the relevant provision or under the associated heading. Annotations are categorised by annotation type, such as F-notes for textual amendments and I-notes for commencement information (a full list can be found in the Editorial Practice Guide). Each annotation is identified by a sequential reference number. For F-notes, M-notes and X-notes, the number also appears in bold superscript at the relevant location in the text. All annotations contain links to the affecting legislation.

Amendments (Textual)

F5383. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .E+W+S+N.I.

Annotations: Help about Annotation
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Annotations are used to give authority for changes and other effects on the legislation you are viewing and to convey editorial information. They appear at the foot of the relevant provision or under the associated heading. Annotations are categorised by annotation type, such as F-notes for textual amendments and I-notes for commencement information (a full list can be found in the Editorial Practice Guide). Each annotation is identified by a sequential reference number. For F-notes, M-notes and X-notes, the number also appears in bold superscript at the relevant location in the text. All annotations contain links to the affecting legislation.

Amendments (Textual)

F54X484. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .E+W+S+N.I.

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Annotations are used to give authority for changes and other effects on the legislation you are viewing and to convey editorial information. They appear at the foot of the relevant provision or under the associated heading. Annotations are categorised by annotation type, such as F-notes for textual amendments and I-notes for commencement information (a full list can be found in the Editorial Practice Guide). Each annotation is identified by a sequential reference number. For F-notes, M-notes and X-notes, the number also appears in bold superscript at the relevant location in the text. All annotations contain links to the affecting legislation.

Editorial Information

X4The repeal of s. 84 has effect in relation to events taking place on or after a date to be appointed by the Treasury by order. No such date has been appointed as at the end of 2011. The text of this provision will be restored, and any subsequent amendment history reconstructed, in the early part of 2012.

Amendments (Textual)

X585. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F55E+W+S+N.I.

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Annotations are used to give authority for changes and other effects on the legislation you are viewing and to convey editorial information. They appear at the foot of the relevant provision or under the associated heading. Annotations are categorised by annotation type, such as F-notes for textual amendments and I-notes for commencement information (a full list can be found in the Editorial Practice Guide). Each annotation is identified by a sequential reference number. For F-notes, M-notes and X-notes, the number also appears in bold superscript at the relevant location in the text. All annotations contain links to the affecting legislation.

Editorial Information

X5The repeal of s. 85 has effect as provided by the Treasury by order. No such order has been made as at the end of 2011. The text of this provision will be restored, and any subsequent amendment history reconstructed, in the early part of 2012.

Amendments (Textual)

F55S. 85 repealed by Finance Act 1990 (c. 29, SIF 114), ss. 109(6)(e), 111, 132, Sch. 19 Pt. VI (the provision ceases to have effect as referred to in s. 109(7) and in the notes to Sch. 19 Pt. VI) and subject to an amendment by S.I. 2001/3629, art. 8

Part IVE+W+S+N.I.

X686. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F56E+W+S+N.I.

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Annotations are used to give authority for changes and other effects on the legislation you are viewing and to convey editorial information. They appear at the foot of the relevant provision or under the associated heading. Annotations are categorised by annotation type, such as F-notes for textual amendments and I-notes for commencement information (a full list can be found in the Editorial Practice Guide). Each annotation is identified by a sequential reference number. For F-notes, M-notes and X-notes, the number also appears in bold superscript at the relevant location in the text. All annotations contain links to the affecting legislation.

Editorial Information

X6The repeal of Pt. IV (ss. 86-99) has effect in relation to events taking place on or after a date to be appointed by the Treasury by order. No such date has been appointed as at the end of 2011. The text of Part IV will be restored, and any subsequent amendment history reconstructed, in the early part of 2012.

Amendments (Textual)

F56Pt. IV (ss. 86–99) repealed by Finance Act 1990 (c. 29, SIF 114), ss. 110, 132, Sch. 19 Pt. VII and subject to amendments by S.I. 1992/3286, reg. 3; 1995 c. 4, s. 152(2); 1996 c. 8, ss. 187-196, 205, Sch. 41 Pt. VII Notes 1-3; 1997 c. 16, ss. 97(3), 100-106, 113, Sch. 18 Pt. VII Notes 5-10; S.I. 1997/1156, regs. 4, 4B(2) (as substituted by 1999/3261, reg. 5); S.I. 1998/3177, regs. 25(2), 26(2), 27(2), 28(2), 29(2), 30(2); 1998 c. 22, s. 24(5) and 1998 c. 36, s. 151; by 1999 c. 16, ss. 112(4)(6), 113, 116-123, 139, Sch. 14 para. 20, Sch. 16 paras. 6-9, Sch. 19 Pt. II paras. 10-12, Sch. 20 Pt. V(5) Note 1 (which ss. 113, 116-121, 123(1)(2), Sch. 14 para. 20, Sch. 16 paras. 6-9, Sch. 19 Pt. II are repealed by 1999 c. 16, ss. 123(3)(4), 139, Sch. 20 Pt. V(6) Note); 2000 c. 17, s. 134(2)-(5) (which s. 134 is repealed by 2000 c. 17, s. 156, Sch. 40 Pt. III Note 3); S.I. 2001/3629, arts. 9(1)(5), 10

F5787. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .E+W+S+N.I.

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Annotations are used to give authority for changes and other effects on the legislation you are viewing and to convey editorial information. They appear at the foot of the relevant provision or under the associated heading. Annotations are categorised by annotation type, such as F-notes for textual amendments and I-notes for commencement information (a full list can be found in the Editorial Practice Guide). Each annotation is identified by a sequential reference number. For F-notes, M-notes and X-notes, the number also appears in bold superscript at the relevant location in the text. All annotations contain links to the affecting legislation.

Amendments (Textual)

F57See s. 86 commentary above

F5888. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .E+W+S+N.I.

Annotations: Help about Annotation
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Annotations are used to give authority for changes and other effects on the legislation you are viewing and to convey editorial information. They appear at the foot of the relevant provision or under the associated heading. Annotations are categorised by annotation type, such as F-notes for textual amendments and I-notes for commencement information (a full list can be found in the Editorial Practice Guide). Each annotation is identified by a sequential reference number. For F-notes, M-notes and X-notes, the number also appears in bold superscript at the relevant location in the text. All annotations contain links to the affecting legislation.

Amendments (Textual)

F58See s. 86 commentary above

[F5988A Section 87: exceptions for intermediaries.E+W+S+N.I.

(1)Section 87 above shall not apply as regards an agreement to transfer securities of a particular kind to B or his nominee if—

(a)B is a member of an EEA exchange, or a recognised foreign exchange, on which securities of that kind are regularly traded;

(b)B is an intermediary and is recognised as an intermediary by the exchange in accordance with arrangements approved by the Board; and

(c)the agreement is effected on the exchange.

(2)Section 87 above shall not apply as regards an agreement to transfer securities of a particular kind to B or his nominee if—

(a)B is a member of an EEA exchange or a recognised foreign options exchange;

(b)options to buy or sell securities of that kind are regularly traded on that exchange and are listed by or quoted on that exchange;

(c)B is an options intermediary and is recognised as an options intermediary by that exchange in accordance with arrangements approved by the Board; and

(d)the agreement is effected on an EEA exchange, or a recognised foreign exchange, on which securities of that kind are regularly traded or subsection (3) below applies.

(3)This subsection applies if—

(a)the agreement is effected on an EEA exchange, or a recognised foreign options exchange, pursuant to the exercise of a relevant option; and

(b)options to buy or sell securities of the kind concerned are regularly traded on that exchange and are listed by or quoted on that exchange.

(4)For the purposes of this section—

(a)an intermediary is a person who carries on a bona fide business of dealing in chargeable securities and does not carry on an excluded business; and

(b)an options intermediary is a person who carries on a bona fide business of dealing in quoted or listed options to buy or sell chargeable securities and does not carry on an excluded business.

(5)The excluded businesses are the following—

(a)any business which consists wholly or mainly in the making or managing of investments;

(b)any business which consists wholly or mainly in, or is carried on wholly or mainly for the purpose of, providing services to persons who are connected with the person carrying on the business;

(c)any business which consists in insurance business;

(d)any business which consists in managing or acting as trustee in relation to a pension scheme or which is carried on by the manager or trustee of such a scheme in connection with or for the purposes of the scheme;

(e)any business which consists in operating or acting as trustee in relation to a collective investment scheme or is carried on by the operator or trustee of such a scheme in connection with or for the purposes of the scheme.

(6)An agreement is effected on an exchange for the purposes of subsection (1) or (2) above if (and only if)—

(a)it is subject to the rules of the exchange; and

(b)it is reported to the exchange in accordance with the rules of the exchange.]

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Annotations are used to give authority for changes and other effects on the legislation you are viewing and to convey editorial information. They appear at the foot of the relevant provision or under the associated heading. Annotations are categorised by annotation type, such as F-notes for textual amendments and I-notes for commencement information (a full list can be found in the Editorial Practice Guide). Each annotation is identified by a sequential reference number. For F-notes, M-notes and X-notes, the number also appears in bold superscript at the relevant location in the text. All annotations contain links to the affecting legislation.

Amendments (Textual)

Modifications etc. (not altering text)

C7S. 88A: power to extend conferred (24.7.2002) by 2002 c. 23, s. 117(2)

C8S. 88A extended (26.7.2002) by S.I. 2002/1975, art. 2

F6088B Intermediaries: supplementary.E+W+S+N.I.

(1)For the purposes of section 88A above the question whether a person is connected with another shall be determined in accordance with the provisions of section 839 of the M20Income and Corporation Taxes Act 1988.

(2)In section 88A above and this section—

  • collective investment scheme” has the meaning given in section 75 of the M21Financial Services Act 1986;

  • EEA exchange” means a market which appears on the list drawn up by an EEA State pursuant to Article 16 of European Communities Council Directive No. 93/22/EEC on investment services in the securities field;

  • EEA State” means a State which is a contracting party to the agreement on the European Economic Area signed at Oporto on the 2nd May 1992 as adjusted by the Protocol signed at Brussels on the 17th March 1993;

  • insurance business” means long term business or general business as defined in section 1 of the M22Insurance Companies Act 1982;

  • quoted or listed options” means options which are quoted on or listed by an EEA exchange or a recognised foreign options exchange;

  • recognised foreign exchange” and “recognised foreign options exchange” have the meanings given, respectively, by subsections (3) and (4) of section 80B above;

  • trustee” and “the operator” shall, in relation to a collective investment scheme, be construed in accordance with section 75(8) of the M23Financial Services Act 1986.

(3)In section 88A above “the exercise of a relevant option” means—

(a)the exercise by B of an option to buy securities; or

(b)the exercise of an option binding B to buy securities.

(4)The Treasury may by regulations provide that section 88A above shall not have effect in relation to kinds of agreement specified in the regulations.

(5)The Treasury may by regulations provide that if—

(a)an agreement falls within subsection (1) or (2) of section 88A above, and

(b)section 87 above would, apart from section 88A, apply to the agreement,

section 87 shall apply to the agreement but with the substitution of a rate of tax not exceeding 0.1 per cent. for the rate specified in subsection (6) of that section.

(6)The Treasury may by regulations change the meaning of “intermediary” or “options intermediary” for the purposes of section 88A above by amending subsection (4) or (5) of that section (as it has effect for the time being).

(7)The power to make regulations under subsections (4) to (6) above shall be exercisable by statutory instrument subject to annulment in pursuance of a resolution of the House of Commons.

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Annotations are used to give authority for changes and other effects on the legislation you are viewing and to convey editorial information. They appear at the foot of the relevant provision or under the associated heading. Annotations are categorised by annotation type, such as F-notes for textual amendments and I-notes for commencement information (a full list can be found in the Editorial Practice Guide). Each annotation is identified by a sequential reference number. For F-notes, M-notes and X-notes, the number also appears in bold superscript at the relevant location in the text. All annotations contain links to the affecting legislation.

Amendments (Textual)

Marginal Citations

F6189. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .E+W+S+N.I.

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Annotations are used to give authority for changes and other effects on the legislation you are viewing and to convey editorial information. They appear at the foot of the relevant provision or under the associated heading. Annotations are categorised by annotation type, such as F-notes for textual amendments and I-notes for commencement information (a full list can be found in the Editorial Practice Guide). Each annotation is identified by a sequential reference number. For F-notes, M-notes and X-notes, the number also appears in bold superscript at the relevant location in the text. All annotations contain links to the affecting legislation.

Amendments (Textual)

F61See s. 86 commentary above

F6289A. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .E+W+S+N.I.

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Annotations are used to give authority for changes and other effects on the legislation you are viewing and to convey editorial information. They appear at the foot of the relevant provision or under the associated heading. Annotations are categorised by annotation type, such as F-notes for textual amendments and I-notes for commencement information (a full list can be found in the Editorial Practice Guide). Each annotation is identified by a sequential reference number. For F-notes, M-notes and X-notes, the number also appears in bold superscript at the relevant location in the text. All annotations contain links to the affecting legislation.

Amendments (Textual)

F62S. 89A inserted (23.7.1987) by 1987 c. 51, s. 100 and repealed (prosp.) by 1990 c. 29, Sch. 29 Pt. VIII

[F6389AA Section 87: exception for repurchases and stock lending.E+W+S+N.I.

(1)This section applies where a person (P) has entered into an arrangement with another person (Q) under which—

(a)Q is to transfer chargeable securities of a particular kind to P or his nominee, and

(b)chargeable securities of the same kind and amount are to be transferred by P or his nominee to Q or his nominee,

and the conditions set out in subsection (3) below are fulfilled.

(2)Section 87 above shall not apply as regards an agreement to transfer chargeable securities to P or his nominee or Q or his nominee in accordance with the arrangement.

(3)The conditions are—

(a)that the agreement is effected on an EEA exchange or a recognised foreign exchange;

(b)that securities of the kind concerned are regularly traded on that exchange; and

(c)that chargeable securities are transferred to P or his nominee and Q or his nominee in pursuance of the arrangement.

(4)An arrangement does not fall within subsection (1) above if—

(a)the arrangement is not such as would be entered into by persons dealing with each other at arm’s length; or

(b)under the arrangement any of the benefits or risks arising from fluctuations, before the transfer to Q or his nominee takes place, in the market value of the chargeable securities accrues to, or falls on, P.

(5)An agreement is effected on an exchange for the purposes of subsection (3) above if (and only if)—

(a)it is subject to the rules of the exchange; and

(b)it is reported to the exchange in accordance with the rules of the exchange.

(6)In this section—

  • EEA exchange” has the meaning given in section 88B(2) above;

  • recognised foreign exchange” has the meaning given in section 80B(3) above.

(7)The Treasury may by regulations provide that if section 87 would apply as regards an agreement but for subsection (2) above, section 87 shall apply as regards the agreement but with the substitution of a rate of tax not exceeding 0.1 per cent. for the rate specified in subsection (6) of that section.

(8)The Treasury may by regulations amend this section (as it has effect for the time being) in order—

(a)to change the conditions for exemption from tax under this section; or

(b)to provide that this section does not apply in relation to kinds of arrangement specified in the regulations.

(9)The power to make regulations under subsection (7) or (8) above shall be exercisable by statutory instrument subject to annulment in pursuance of a resolution of the House of Commons.]

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Annotations are used to give authority for changes and other effects on the legislation you are viewing and to convey editorial information. They appear at the foot of the relevant provision or under the associated heading. Annotations are categorised by annotation type, such as F-notes for textual amendments and I-notes for commencement information (a full list can be found in the Editorial Practice Guide). Each annotation is identified by a sequential reference number. For F-notes, M-notes and X-notes, the number also appears in bold superscript at the relevant location in the text. All annotations contain links to the affecting legislation.

Amendments (Textual)

Modifications etc. (not altering text)

C9S. 89AA: power to extend conferred (24.7.2002) by 2002 c. 23, s. 117(2)

C10S. 89AA extended (26.7.2002) by S.I. 2002/1975, art. 2

F6490. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .E+W+S+N.I.

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Annotations are used to give authority for changes and other effects on the legislation you are viewing and to convey editorial information. They appear at the foot of the relevant provision or under the associated heading. Annotations are categorised by annotation type, such as F-notes for textual amendments and I-notes for commencement information (a full list can be found in the Editorial Practice Guide). Each annotation is identified by a sequential reference number. For F-notes, M-notes and X-notes, the number also appears in bold superscript at the relevant location in the text. All annotations contain links to the affecting legislation.

Amendments (Textual)

F64See s. 86 commentary above

F6591. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .E+W+S+N.I.

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Annotations are used to give authority for changes and other effects on the legislation you are viewing and to convey editorial information. They appear at the foot of the relevant provision or under the associated heading. Annotations are categorised by annotation type, such as F-notes for textual amendments and I-notes for commencement information (a full list can be found in the Editorial Practice Guide). Each annotation is identified by a sequential reference number. For F-notes, M-notes and X-notes, the number also appears in bold superscript at the relevant location in the text. All annotations contain links to the affecting legislation.

Amendments (Textual)

F65See s. 86 commentary above

F6692. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .E+W+S+N.I.

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Annotations are used to give authority for changes and other effects on the legislation you are viewing and to convey editorial information. They appear at the foot of the relevant provision or under the associated heading. Annotations are categorised by annotation type, such as F-notes for textual amendments and I-notes for commencement information (a full list can be found in the Editorial Practice Guide). Each annotation is identified by a sequential reference number. For F-notes, M-notes and X-notes, the number also appears in bold superscript at the relevant location in the text. All annotations contain links to the affecting legislation.

Amendments (Textual)

F66See s. 86 commentary above

F6793. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .E+W+S+N.I.

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Annotations are used to give authority for changes and other effects on the legislation you are viewing and to convey editorial information. They appear at the foot of the relevant provision or under the associated heading. Annotations are categorised by annotation type, such as F-notes for textual amendments and I-notes for commencement information (a full list can be found in the Editorial Practice Guide). Each annotation is identified by a sequential reference number. For F-notes, M-notes and X-notes, the number also appears in bold superscript at the relevant location in the text. All annotations contain links to the affecting legislation.

Amendments (Textual)

F67See s. 86 commentary above

F6894. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .E+W+S+N.I.

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Amendments (Textual)

F68See s. 86 commentary above

F6995. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .E+W+S+N.I.

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Amendments (Textual)

F69See s. 86 commentary above

F7096. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .E+W+S+N.I.

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Amendments (Textual)

F70See s. 86 commentary above

F7197. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .E+W+S+N.I.

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Amendments (Textual)

F71See s. 86 commentary above

F7298. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .E+W+S+N.I.

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Amendments (Textual)

F72See s. 86 commentary above

F7399. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .E+W+S+N.I.

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Amendments (Textual)

F73See s. 86 commentary above

PART VE+W+S+N.I. INHERITANCE TAX

100 Capital transfer tax to be known as inheritance tax.E+W+S+N.I.

(1)On and after the passing of this Act, the tax charged under the Capital Transfer Tax Act 1984 (in this Part of this Act referred to as “the 1984 Act”) shall be known as inheritance tax and, accordingly, on and after that passing,—

(a)the 1984 Act may be cited as the Inheritance Tax Act 1984 ; and

(b)subject to subsection (2) below, any reference to capital transfer tax in the 1984 Act, in any other enactment passed before or in the same Session as this Act or in any document executed, made, served or issued on or before the passing of this Act or at any time thereafter shall have effect as a reference to inheritance tax.

(2)Subsection (1)(b) above does not apply where the reference to capital transfer tax relates to a liability arising before the passing of this Act.

(3)In the following provisions of this Part of this Act, any reference to tax except where it is a reference to a named tax is a reference to inheritance tax and, in so far as it occurs in a provision which relates to a time before the passing of this Act, includes a reference to capital transfer tax.

101 Lifetime transfers potentially exempt etc.E+W+S+N.I.

(1)The 1984 Act shall have effect subject to the amendments in Part I of Schedule 19 to this Act, being amendments—

(a)removing liability for tax on certain transfers of value where the transfer occurs at least seven years before the transferor’s death;

(b)providing for one Table of rates of tax;

(c)abolishing exemptions for mutual transfers;

(d)making provision with respect to the amounts of tax to be charged on transfers occurring before the death of the transferor;

(e)making provision with respect to the application of relief under Chapter I (business property) and Chapter II (agricultural property) of Part V of the 1984 Act to such transfers; and

(f)reducing the period during which the values transferred by chargeable transfers are aggregates from ten years to seven;

and amendments making provisions consequential on or incidental to the matters referred to above and to sections 102 and 103 below.

(2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F74

(3)Part I of Schedule 19 to this Act has effect, subject to Part II of that Schedule, with respect to transfers of value made, and other events occcurring, on or after 18th March 1986.

(4)The transitional provisions in Part II of Schedule 19 to this Act shall have effect.

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Amendments (Textual)

F74S. 101(2) repealed by Finance Act 1989 (c. 26, SIF 63:2),s. 187(1), Sch. 17 Pt. VII

102 Gifts with reservation.E+W+S+N.I.

(1)Subject to subsections (5) and (6) below, this section applies where, on or after 28th March 1986, an individual disposes of any property by way of gift and either—

(a)possession and enjoyment of the property is not bona fide assumed by the donee at or before the beginning of the relevant period; or

(b)at any time in the relevant period the property is not enjoyed to the entire exclusion, or virtually to the entire exclusion, of the donor and of any benefit to him by contract or otherwise;

and in this section “the relevant period” means a period ending on the date of the donor’s death and beginning seven years before that date or, if it is later, on the date of the gift.

(2)If and so long as—

(a)posession and enjoyment of any property is not bona fide assumed as mentioned in subsection (1)(a) above, or

(b)any property is not enjoyed as mentioned in subsection (1)(b) above,

the property is referred to (in relation to the gift and the donor) as property subject to a reservation.

(3)If, immediately before the death of the donor, there is any property which, in relation to him, is property subject to a reservation then, to the extent that the property would not, apart from this section, form part of the donor’s estate immediately before his death, that property shall be treated for the purposes of the 1984 Act as property to which he was beneficially entitled immediately before his death.

(4)If, at a time before the end of the relevant period, any property ceases to be property subject to a reservation, the donor shall be treated for the purposes of the 1984 Act as having at that time made a disposition of the property by a disposition which is a potentially exempt transfer.

(5)This section does not apply if or, as the case may be, to the extent that the disposal of the property by way of gift is an exempt transfer by virtue of any of the following provisions of Part II of the 1984 Act,—

(a)section 18 (transfers between spouses);

(b)section 20 (small gifts);

(c)section 22 (gifts in consideration of marriage);

(d)section 23 (gifts to charities);

(e)section 24 (gifts to political parties);

[F75(ee)section 24A (gifts to housing associations);]

(f)section 25 (gifts for national purposes, etc);

F76(g). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(h)section 27 (maintenance funds for historic buildings); and

(i)section 28 (employee trusts).

(6)This section does not apply if the disposal of property by way of gift is made under the terms of a policy issued in respect of an insurance made before 18th March 1986 unless the policy is varied on or after that date so as to increase the benefits secured or to extend the term of the insurance; and, for this purpose, any change in the terms of the policy which is made in pursuance of an option or other power conferred by the policy shall be deemed to be a variation of the policy.

(7)If a policy issued as mentioned in subsection (6) above confers an option or other power under which benefits and premiums may be increased to take account of increases in the retail price index (as defined in section 8(3) of the 1984 Act) or any similar index pecified in the policy, then, to the extent that the right to exercise on or before 1st August 1986, the exercise of that option or power before that date shall be disregarded for the purposes of subsection (6) above.

(8)Schedule 20 to this Act has effect for supplementing this section.

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Amendments (Textual)

F75Finance Act 1989 (c. 26, SIF 63:1, 2), s. 171(5), with effect from 14 March 1989

F76S. 102(5)(g) repealed (31.7.1998 with effect as mentioned in Sch. 27 Note 2 of the amending Act) 1998 c. 36, s. 165, Sch. 27 Pt. IV

[F77102A Gifts with reservation: interest in land.E+W+S+N.I.

(1)This section applies where an individual disposes of an interest in land by way of gift on or after 9th March 1999.

(2)At any time in the relevant period when the donor or his spouse enjoys a significant right or interest, or is party to a significant arrangement, in relation to the land—

(a)the interest disposed of is referred to (in relation to the gift and the donor) as property subject to a reservation; and

(b)section 102(3) and (4) above shall apply.

(3)Subject to subsections (4) and (5) below, a right, interest or arrangement in relation to land is significant for the purposes of subsection (2) above if (and only if) it entitles or enables the donor to occupy all or part of the land, or to enjoy some right in relation to all or part of the land, otherwise than for full consideration in money or money’s worth.

(4)A right, interest or arrangement is not significant for the purposes of subsection (2) above if—

(a)it does not and cannot prevent the enjoyment of the land to the entire exclusion, or virtually to the entire exclusion, of the donor; or

(b)it does not entitle or enable the donor to occupy all or part of the land immediately after the disposal, but would do so were it not for the interest disposed of.

(5)A right or interest is not significant for the purposes of subsection (2) above if it was granted or acquired before the period of seven years ending with the date of the gift.

(6)Where an individual disposes of more than one interest in land by way of gift, whether or not at the same time or to the same donee, this section shall apply separately in relation to each interest.]

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Annotations are used to give authority for changes and other effects on the legislation you are viewing and to convey editorial information. They appear at the foot of the relevant provision or under the associated heading. Annotations are categorised by annotation type, such as F-notes for textual amendments and I-notes for commencement information (a full list can be found in the Editorial Practice Guide). Each annotation is identified by a sequential reference number. For F-notes, M-notes and X-notes, the number also appears in bold superscript at the relevant location in the text. All annotations contain links to the affecting legislation.

Amendments (Textual)

F77Ss. 102A, 102B, 102C inserted (27.7.1999) by 1999 c. 16, s. 104

F78102B Gifts with reservation: share of interest in land.E+W+S+N.I.

(1)This section applies where an individual disposes, by way of gift on or after 9th March 1999, of an undivided share of an interest in land.

(2)At any time in the relevant period, except when subsection (3) or (4) below applies—

(a)the share disposed of is referred to (in relation to the gift and the donor) as property subject to a reservation; and

(b)section 102(3) and (4) above shall apply.

(3)This subsection applies when the donor—

(a)does not occupy the land; or

(b)occupies the land to the exclusion of the donee for full consideration in money or money’s worth.

(4)This subsection applies when—

(a)the donor and the donee occupy the land; and

(b)the donor does not receive any benefit, other than a negligible one, which is provided by or at the expense of the donee for some reason connected with the gift.

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Annotations are used to give authority for changes and other effects on the legislation you are viewing and to convey editorial information. They appear at the foot of the relevant provision or under the associated heading. Annotations are categorised by annotation type, such as F-notes for textual amendments and I-notes for commencement information (a full list can be found in the Editorial Practice Guide). Each annotation is identified by a sequential reference number. For F-notes, M-notes and X-notes, the number also appears in bold superscript at the relevant location in the text. All annotations contain links to the affecting legislation.

Amendments (Textual)

F78Ss. 102A, 102B, 102C inserted (27.7.1999) by 1999 c. 16, s. 104

F79102C Sections 102A and 102B: supplemental.E+W+S+N.I.

(1)In sections 102A and 102B above “the relevant period” has the same meaning as in section 102 above.

(2)An interest or share disposed of is not property subject to a reservation under section 102A(2) or 102B(2) above if or, as the case may be, to the extent that the disposal is an exempt transfer by virtue of any of the provisions listed in section 102(5) above.

(3)In applying sections 102A and 102B above no account shall be taken of—

(a)occupation of land by a donor, or

(b)an arrangement which enables land to be occupied by a donor,

in circumstances where the occupation, or occupation pursuant to the arrangement, would be disregarded in accordance with paragraph 6(1)(b) of Schedule 20 to this Act.

(4)The provisions of Schedule 20 to this Act, apart from paragraph 6, shall have effect for the purposes of sections 102A and 102B above as they have effect for the purposes of section 102 above; and any question which falls to be answered under section 102A or 102B above in relation to an interest in land shall be determined by reference to the interest which is at that time treated as property comprised in the gift.

(5)Where property other than an interest in land is treated by virtue of paragraph 2 of that Schedule as property comprised in a gift, the provisions of section 102 above shall apply to determine whether or not that property is property subject to a reservation.

(6)Sections 102 and 102A above shall not apply to a case to which section 102B above applies.

(7)Section 102A above shall not apply to a case to which section 102 above applies.

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Amendments (Textual)

F79Ss. 102A, 102B, 102C inserted (27.7.1999) by 1999 c. 16, s. 104

103 Treatment of certain debts and incumbrances.E+W+S+N.I.

(1)Subject to subsection (2) below, if, in determining the value of a person’s estate immediately before his death, account would be taken, apart from this subsection, of a liability consisting of a debt incurred by him or an incumbrance created by a disposition made by him, that liability shall be subject to abatement to an extent proportionate to the value of any of the consideration given for the debt or incumbrance which consisted of—

(a)property derived from the deceased; or

(b)consideration (not being property derived from the deceased)given by any person who was at the time entitled to, or amongst whose resources there were at any time included, any property derived from the deceased.

(2)If, in the case where the whole or part of the consideration given for a debt or incumbrance consisted of such consideration as is mentioned in subsection (1)(b) above, it is shown that the value of the consideration given, or of that part thereof, as the case may be, exceeded that which could have been rendered available by application of all the property derived from the deceased, other than such (if any) of that property—

(a)as is included in the consideration given, or

(b)as to which it is shown that the disposition of which it, or the property which it represented, was the subject matter was not made with reference to, or with a view to enabling or facilitating, the giving of the consideration or the recoupment in any manner of the cost thereof, no abatement shall be made under subsection (1) above in respect of the excess.

(3)In subsections (1) and (2) above “property derived from” means, subject to subsection (4) below, any property which was the subject matter of a dispostition made by the deceased, either by himself alone or in concert or by arrangement with any other person or which represented any of the subject matter of such a dispostition, whether directly or indirectly, and whether by virtue of on or more intermediate dispostitions.

(4)If the dispostition first-mentioned in subsection (3) above was not a transfer of value and it is shown that the disposition was not part of associated operations which included—

(a)a disposition by the deceased, either alone or in concert or by arrangement with any other person, otherwise than for full consideration in money or money’s worth paid to the deceased for his own use or benefit; or

(b)a dispostition by any other person operating to reduce the value of the property of the deceased,

that first-mentioned dispostition shall be left out of account for the purposes of subsections (1) to (3) above.

(5)If, before a person’s death but on or after 18th March 1986, money or money’s worth is paid or applied by him—

(a)in or towards the satisfaction or discharge of a debt or incumbrance in the case of which subsection (1) above would have effect on his death if the debt or incumbrance had not been satisfied or discharged, or

(b)in reduction of debt or incumbrance in the case of which that subsection has effect on his death,

the 1984 Act shall have effect as if, at the time of the payment or application, the person concerned had made a transfer of value equal to the money or money’s worth and that transfer were a potentially exempt transfer.

(6)Any reference in this section to a debt is a reference to a debt incurred on or after 18th March 1986 and any reference to an incumbrance created by a disposition is a reference to an incumbrance created by an disposition made on or after that date; and in this section “subject matter” includes, in relation to any disposition, any annual or periodical payment made or payable under or by virtue of the disposition

(7)In determining the value of a person’s estate immediately before his death, no account shall be taken (by virtue of section 5 of the 1984 Act) of any liability arising under or in connection with a policy of life insurance issued in respect of an insurance made on or after 1st July 1986 unless the whole of the sums assured under that policy form part of that person’s estate immediately before his death.

104 Regulations for avoiding double charges etc.E+W+S+N.I.

(1)For the purposes of the 1984 Act the Board may by regulations make such provision as is mentioned in subsection (2) below with respect to transfers of value made, and other events occurring, on or after 18th March 1986 where—

(a)a potentially exempt transfer proves to be a chargeable transfer and, immediately before the death of the transferor, his estate includes property acquired by him from the transferee otherwise than for full consideration in money or money’s worth;

(b)an individual disposes of property by a transfer of value which is or proves to be a chargeable transfer and the circumstances are such that subsection (3) or subsection (4) of section 102 above applies to the property as being or having been property subject to a reservation;

(c)in determining the value of a person’s estate immediately before his death, a liability of his to any person is abated as mentioned in section 103 above and, before his death, the deceased made a transfer of value by virtue of which the estate of that other person was increased or by virtue of which property becomes comprised in a settlement of which that other person is a trustee; or

(d)the circumstances are such as may be specified in the regulations for the purposes of this subsection, being circumstances appearing to the Board to be similar to those referred to in paragraphs (a) to (c) above.

(2)The provision which may be made by regulations under this section is provision for either or both of the following,—

(a)treating the value transferred by a transfer of value as reduced by reference to the value transferred by another transfer of value ; and

(b)treating the whole or any part of the tax paid or payable on the value transferred by a transfer of value as a credit against the tax payable on the value transferred by another transfer of value.

(3)The power to make regulations under this section shall be exercisable by statutory instrument subject to annulment in pursuance of a resolution of the Commons House of Parliament.

105 Application of business and agricultural relief where transfer partly exempt.E+W+S+N.I.

With respect to transfers of value made on or after 18th March 1986, after section 39 of the 1984 Act there shall be inserted the following section—

39A Operation of sections 38 and 39 in cases of business or agricultural relief.

(1)Where any part of the value transferred by a transfer of value is attributable to—

(a)the value of the relavant business property, or

(b)the agricultural value of agricultural property,

then, for the purpose of attributing the value transferred (as reduced in accordance with section 104 or 116 below), to specific gifts and gifts of residue, sections 38 and 39 above shall have effect subject to the following provisions of this section.

(2)The value of any specific gifts of relevant business property or agricultural property shall be taken to be their value as reduced in accordance with section 104 or 116 below.

(3)The value of any specific gifts not falling within subsection (2) above shall be taken to be the appropriate fraction of their value.

(4)In subsection (3) above “the appropriate fraction” means a fraction of which—

(a)the numerator is the difference between the value transferred and the value, reduced as mentioned in subsection (2) above, of any gifts falling within that subsection, and

(b)the denominator is the difference between the unreduced value transferred and the value, before the reduction mentioned in subsection (2) above, of any gifts falling within that subsection;

and in paragraph (b) above “the unreduced value transferred” means the amount which would be the value transferred by the transfer but for the reduction required by sections 104 and 116 below.

(5)If or to the extent that specific gifts fall within paragraphs (a) and (b) of subsection (1) of section 38 above, the amount corresponding to the value of the gifts shall be arrived at in accordance with subsections (3) to (5) of that section by reference to their value reduced as mentioned in subsection (2) or, as the case may be, subsection (3) of this section.

(6)For the purposes of this section the value of a specific gift of relevant business property or agricultural property does not include the value of any other gift out of that property; and that other gift shall not itself be treated as a specific gift of relevant business property or agricultural property.

(7)In this section—

  • agricultural property” and “the agricultural value of agricultural property” have the samemeaning as in Chapter II of Part V of this Act; and

  • relevant business property” has the same meaing as in Chapter I of that Part.

106 Changes in financial institutions business property.E+W+S+N.I.

(1)In section 105 of the 1984 Act (relevant business property) the following shall be substituted for subsection (4)(a)—

(a)does not apply to any property if the business concerned is wholly that of a market maker or is that of a discount house and (in either case) is carried on in the United Kingdom, and.

(2)At the end of that section there shall be inserted—

(7)In this section “market maker” means a person whom—

(a)holds himself out at all normal times in compliance with the rules of The Stock Exchange as willing to buy and sell securities, stocks and shares at a price specified by him, and

(b)is recognised as doing so by the Council of The Stock Exchange.

(3)Subsections (1) and (2) above apply in relation to transfers of value made, and otehr events occurring, on or after the day of the Stock Exchange reforms.

(4)The Board may by regulations provided that section 105(7) of the 1984 Act (as inserted by subsection (2) above) shall have effect—

(a)as if the reference to The Stock Exchange in paragraph (a) were to any recognised investment exchange (within the meaning [F80given by section 285(1)(a) of the Financial Services and Markets Act 2000]) or to any of those exchanges specified in the regulations, and

(b)as if the reference to the Council of Stock Exchange in paragraph (b) were to the investment exchange concerned.

(5)The Board may by regulations amend section 105 of the 1984 Act so as to secure that section 105(3) does not apply to any property if the business concerned is of such description as is set out in the regulations; and the regulations may include such incidental and consequential provisions as the Board think fit.

(6)Regulations under subsection (4) or (5) above shall apply in relation to transfers of value made, and other events occurring, on or after such day, after the Stock Exchange reforms, as is specified in the regulations.

(7)The power to make regulations under subsection (4) and (5) above shall be exercisable by statutory instrument subject to annulment in pursuance of a resolution of the Commons House of Parliament.

(8)In this section “the day of the Stock Exchange reforms” means trhe day on which the rule of The Stock Exhcange that prohibits a person from carrying on business as both a broker and a jobber is abolished F81.

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Amendments (Textual)

F80Words in s. 106(4)(a) substituted (1.12.2001) by S.I. 2001/3629, art. 11

F81The “day of The Stock Exchange reforms” was 27 October 1986.

107 Changes in financial institutions: interest.E+W+S+N.I.

(1)In section 234 of the 1984 Act (interest in instalments) the following shall be substituted for subsection (3)(c)—

(c)any company whose business is wholly that of a amrket maker or is that of a discount house and (in either case) is carried on in the United Kingdom.

(2)At the end of that section there shall be inserted—

(4)In this section “market maker” means a person who—

(a)holds himself out at all normal times in compliance with the rules of The Stock Exchange as willing to buy and sell securities, stocks or shares at a price specified by him, and

(b)is recognised as doing so by the Council of The Stock Exchange.

(3)Subsections (1) and (2) above apply in relation to chargeable transfers made, and other events occurring, on or after the day of The Stock Exchange reforms.

(4)The Board may by regulations provide that section 234(4) of the 1984 Act (as inserted by subsection (2) above) shall have effect—

(a)as if the reference to The Stock Exchange in paragraph (a) were to any recognised investment exchange (within the meaning [F82given by section 285(1)(a) of the Financial Services and Markets Act 2000]) or to any of those exchanges specified in the regulations, and

(b)as if the reference to the Council of The Stock Exchange in paragraph (b) were to the investment exchange concerned.

(5)The Board may by regulations amend section 234 of the 1984 Act so as to secure that companies of a description set out in the regulations fall within section 234(3)(c); and the regulations may include such incidental and consequential provisions as the Board think fit.

(6)Regulations under subsection (4) or (5) above shall apply in relation to chargeable transfers made, and by other events occurring, on or after such day, after the day of The Stock Exchange reforms, as is specified in the regulations.

(7)The power to make regulations under subsection (4) or (5) above shall be exercisable by statutory instrument subject to annulment in pursuance of a resolution of the Commons House of Parliament.

(8)In this section “the day of The Stock Exchange reforms” has the same meaning as in section 106 above.

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Amendments (Textual)

F82Words in s. 107(4)(a) substituted (1.12.2001) by S.I. 2001/3629, art. 11

PART VIE+W+S+N.I. OIL TAXATION

108 The on-shore/off-shore boundary.E+W+S+N.I.

(1)For the purposes of the enactments relating to oil taxation, land lying between the landward boundary of the territorial sea and the shoreline of the United Kingdom (as defined below) shall be treated as part of the bed of the territorial sea of the United Kingdom and any reference in those enactments to the territorial sea or the subsoil beneath it shall be construed accordingly.

(2)Any reference to the United Kingdom in the enactments relating to oil taxation, where that reference is a reference to a geographical area, shall be treated as a reference to the United Kingdom exclusive of the land referred to in subsection (1) above and of any waters for the time being covering that land.

(3)In this section—

(a)the landward boundary of the territorial sea” means the line for the time being ordered by Her Majesty in Council to be the baseline from which the breadth of the territorial sea is measured; and

(b)the shoreline of the United Kingdom” means, subject to subsection (4) below, the high-water line along the coast, including the coast of all islands comprised in the United Kingdom.

(4)In the case of waters adjacent to a bay, as defined in the Territorial Waters Order in Council 1964, the shoreline means—

(a)if the bay has only one mouth and the distance between the high-water lines of the natural entrance points of the bay does not exceed 5,000 metres, a straight line joining those high-water lines;

(b)if, because of the presence of islands, the bay has more than one mouth and the distances between the high-water lines of the natural entrance points of each mouth added together do not exceed 5,000 metres, a series of straight lines across each of the mouths drawn so as to join those high-water lines; and

(c)if neither paragraph (a) nor paragraph (b) above applies, a straight line 5,000 metres in length drawn from high-water line to high-water line within the bay in such a manner as to enclose the maximum area of water that is possible with a line of that length.

(5)If, by virtue of this section, it becomes necessary at any time to establish the high-water line at any place, it shall be taken to be the line which, on the current Admiralty chart showing that place, is depicted as “the coastline”, and for this purpose,—

(a)an Admiralty chart means a chart published under the superintendence of the Hydrographer of the Navy;

(b)if there are two or more Admiralty charts of different scales showing the place in question and depicting the coastline, account shall be taken only of the largest scale chart; and

(c)subject to paragraph (b) above, the current Admiralty chart at any time is that most recently published before that time.

(6)In this section “the enactments relating to oil taxation” means Part I of the M24Oil Taxation Act 1975 and any enactment which is to be construed as one with that Part.

(7)This section shall be deemed to have come into force on 1st April 1986.

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Modifications etc. (not altering text)

Marginal Citations

109 Alternative valuation of light gases.E+W+S+N.I.

(1)Where an election is made under this section [F83before 1st January 1994] and accepted by the Board, the market value for the purposes of the Oil Taxation Acts of any light gases to which the election applies shall be determined, not in accordance with paragraphs 2, 2A and 3 of Schedule 3 to the principal Act (value under a notional contract), but by reference to a price formula specified in the election; and, in relation to any such light gases, any reference to market value in any other provision of the Oil Taxation Acts shall be construed accordingly.

(2)No election may be made under this section in respect of light gases which are “ethane” as defined in subsection (6)(a) of section 134 of the M25Finance Act 1982 (alternative valuation of ethane used for petrochemical purposes) if the principal purpose for which the gases are being or are to be used is that specified in subsection (2)(b) of the said section 134 (use for petrochemical purposes).

(3)Subject to subsection (4) below, an election under this section applies only to light gases—

(a)which, during the period covered by the election, are either disposed of otherwise than in sales at arm’s length or relevantly appropriated; and

(b)which are not subject to fractionation between the time at which they are so disposed of or appropriated and the time at which they are applied or used for the purposes specified in the election.

(4)In any case where,—

(a)at a time during the period covered by an election, a market value falls to be determined for light gases to which subsection (4)(b) or (5)(d) of section 2 of the principal Act applies (oil stocks at the end of chargeable periods), and

(b)after the expiry of the chargeable period in question, the light gases are disposed of or appropriated as mentioned in subsection (3) above,

the market value of those light gases at the time referred to in paragraph (a) above shall be determined as if they were gases to which the election applies.

(5)Schedule 18 to the M26Finance Act 1982 (which applies to elections under section 134 of that Act relating to ethane used or to be used for petrochemical purposes) shall have effect for supplementing this section but subject to the modifications in Schedule 21 to this Act (in which “the 1982 Schedule” means the said Schedule 18).

(6)This section shall be construed as one with Part I of the principal Act and in this section—

(a)light gases” means oil consisting of gas of which the largest component by volume over any chargeable period is methane or ethane or a combination of those gases and which—

(i)results from the fractionation of gas before it is disposed of or appropriated as mentioned in subsection (3)(a) above, or

(ii)before being so disposed of or appropriated, is not subjected to initial treatment or is subjected to initial treatment which does not include fractionation;

(b)the principal Act” means the M27Oil Taxation Act 1975; and

(c)the Oil Taxation Acts” means Part I of the principal Act and any enactment which is to be construed as one with that Part.

(7)In this section “fractionation” means the treatment of gas in order to separate gas of one or more kinds as mentioned in paragraph 2A(3) of Schedule 3 to the principal Act; and for the purposes of subsection (6)(a) above,—

(a)the proportion of methane, ethane or a combination of the two in any gas shall be determined at a temperature of 15[2B]dgC and at a pressure of one atmosphere; and

(b)any component other than methane, ethane or liquified petroleum gas shall be disregarded.

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Amendments (Textual)

F83Words in s. 109(1) inserted (3.5.1994) by 1994 c. 9, s. 236(3)(b)

Modifications etc. (not altering text)

C12S. 109 restricted (3.5.1994) by 1994 c. 9, s. 236(3)

Marginal Citations

110 Attribution of certain receipts and expenditure between oil fields.E+W+S+N.I.

(1)Section 8 of the M28Oil Taxation Act 1983 (qualifying assets) shall have effect, and be deemed always to have had effect, subject to the amendments in subsections (2) and (3) below.

(2)In subsection (3) (which determines the oil field to which are attributable tariff receipts or disposal receipts referable to a qualifying asset) after the word “above”, both where it occurs in paragraph (c) and also in the words following paragraph (c), there shall be inserted “and subsection (3A) below”.

(3)After subsection (3) there shall be inserted the following subsection—

(3A)If development decisions were first made in relation to two or more oil fields on the same day, then, for the purposes of subsection (3)(c) above, it shall be conclusively presumed that the first of those decisions was made in relation to that one of those fields in connection with which it appeared—

(a)at the time of the decision, or

(b)if it is later, at the time the asset was acquired or brought into existence by the participator in question for use in connection with an oil field,

that the participator in question would make the most use of the asset.

(4)Paragraph 6 of Schedule 1 to the Oil Taxation Act 1983 (attribution of allowable expenditure) shall have effect and be deemed always to have had effect with the addition of the following sub-paragraph—

(3)Subsection (3A) of section 8 of this Act applies for the purposes of sub-paragraph (1) above as it applies for the purposes of subsection (3)(c) of that section.

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Marginal Citations

Part VIIE+W+S+N.I. Miscellaneous and Supplementary

[F84111 Broadcasting: additional payments by programme contractors.E+W+S+N.I.

(1)The M29Broadcasting Act 1981 shall have effect with respect to additional payments payable by programme contractors under that Act subject to the amendments made by Part I of Schedule 22 to this Act.

(2)The transitional provisions made by Part II of that Schedule shall have effect.

(3)This section shall be deemed to have come into force on 1st April 1986.]

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Amendments (Textual)

Marginal Citations

112 Limit for local loans.E+W+S+N.I.

In section 4(1) of the M30National Loans Act 1968 (which provides that the aggregate of any commitments of the Public Works Loan Commissioners in respect of undertakings to grant local loans and any amount outstanding in respect of the principal of such loans shall not exceed £28,000 million or such other sum not exceeding £35,000 million as the Treasury may specify by order) for the words “£28,000 million” and “£35,000 million” there shall be substituted respectively “£42,000 million” and “£50,000 million”.

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Marginal Citations

113“Securities” for purposes of Exchange Equalisation Account Act 1979.E+W+S+N.I.

—At the end of section 3 of the M31Exchange Equalisation Account Act 1979 (investment of the funds of the Exchange Equalisation Account) there shall be added the following subsection—

(4)Without prejudice to the reference in subsection (1)(b) above to special drawing rights, the reference in subsection (3) above to currency of any country includes a reference to units of account defined by reference to more than one currency.

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Marginal Citations

114 Short title, interpretation, construction and repeals.E+W+S+N.I.

(1)This Act may be cited as the Finance Act 1986.

(2)In this Act “the Taxes Act” means the M32Income and Corporation Taxes Act 1970.

(3)Part II of this Act, so far as it relates to income tax, shall be construed as one with the Income Tax Acts, so far as it relates to corporation tax, shall be construed as one with the Corporation Tax Acts and, so far as it relates to capital gains tax, shall be construed as one with the M33Capital Gains Tax Act 1979.

(4)Part III of this Act shall be construed as one with the M34Stamp Act 1891.

(5)Part V of this Act, other than section 100, shall be construed as one with the M35Capital Transfer Tax Act 1984.

(6)The enactments and Orders specified in Schedule 23 to this Act are hereby repealed to the extent specified in the third column of that Schedule, but subject to any provision at the end of any Part of that Schedule.

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