Finance Act 1988

Abolition of Schedule D election etc. E+W+S+N.I.

3 (1) Section 54 of the Taxes Act 1988 and section 111 of the Taxes Act 1970 (which confer on a person occupying commercial woodlands the right to elect to be assessed and charged to tax in respect of them under Schedule D instead of under Schedule B) shall cease to have effect. E+W+S+N.I.

(2) Subject to paragraph 5(1) below, profits or gains or losses which arise to a person from the occupation of commercial woodlands on or after 15th March 1988 shall not be regarded for any purposes as profits or gains or losses chargeable under Schedule D.

(3) Subject to paragraph 5(1) below—

(a) F1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b) interest which is paid by any person on or after that date and—

(i) is stated in section 360(1), 361(3) or 362 of the Taxes Act 1988 (loans to buy interest in close company, interest in employee-controlled company or into partnership) to be eligible for relief under section 353 of that Act; or

(ii) is stated in any of the corresponding enactments repealed by that Act to be eligible for relief under section 75 of the M1 Finance Act 1972,

shall not be so eligible,

if the relevant business consists of the occupation of commercial woodlands.

(4) Where part only of the relevant business consists of the occupation of commercial woodlands—

(a) F2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b) interest falling within paragraph (b) of that sub-paragraph shall not be eligible for relief under section 353 of the Taxes Act 1988 or section 75 of the M2 Finance Act 1972,

to such extent as may be just and reasonable having regard to all the circumstances of the case and, in particular, to the proportion which that part of that business bears to the whole.

(5) In this paragraph “the relevant business” means—

(a) F3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b) F4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(c) in relation to interest falling within paragraph (b) of sub-paragraph (3) above, the business carried on by the close company, employee-controlled company or partnership concerned;

and for the purposes of this paragraph two or more businesses carried on by a company, F5 ... or partnership shall be regarded as a single business.

(6) F6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(7) This paragraph shall be deemed to have come into force on 15th March 1988.

Annotations:

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Amendments (Textual)

F1 Sch. 6 para. 3(3)(a) repealed (with effect as mentioned in s. 82(2) of the repealing Act) by Finance Act 2002 (c. 23), ss. 82, 141, Sch. 25 Pt. 2 para. 59(2)(a), Sch. 40 Pt. 3(12)

F2 Sch. 6 para. 3(4)(a) repealed (with effect as mentioned in s. 82(2) of the repealing Act) by Finance Act 2002 (c. 23), ss. 82, 141, Sch. 25 Pt. 2 para. 59(2)(a), Sch. 40 Pt. 3(12)

F3 Sch. 6 para. 3(5)(a) repealed (with effect as mentioned in s. 82(2) of the repealing Act) by Finance Act 2002 (c. 23), ss. 82, 141, Sch. 25 Pt. 2 para. 59(2)(a), Sch. 40 Pt. 3(12)

F4 Sch. 6 para. 3(5)(b) repealed (with effect as mentioned in s. 82(2) of the repealing Act) by Finance Act 2002 (c. 23), ss. 82, 141, Sch. 25 Pt. 2 para. 59(2)(a), Sch. 40 Pt. 3(12)

F5 Word in Sch. 6 para. 3(5) repealed (with effect as mentioned in s. 82(2) of the repealing Act) by Finance Act 2002 (c. 23), ss. 82, 141, Sch. 25 Pt. 2 para. 59(2)(b), Sch. 40 Pt. 3(12)

F6 Sch. 6 para. 3(6) repealed (with effect as mentioned in s. 82(2) of the repealing Act) by Finance Act 2002 (c. 23), ss. 82, 141, Sch. 25 Pt. 2 para. 59(2)(c), Sch. 40 Pt. 3(12)

Marginal Citations

M1 1972 c. 41.

M2 1972 c. 41.