TABLE

1. Cigarettes	An amount equal to 21 per cent. of the retail price plus £34.91 per thousand cigarettes.
2. Cigars	£53.67 per kilogram.
3. Hand-rolling tobacco	£56.63 per kilogram.
4. Other smoking tobacco and chewing tobacco	£24.95 per kilogram.

Part I Tables of Flat Rate Cash Equivalents

Table ACars with an original market value up to £19,250 and having a cylinder capacity

Cylinder capacity of car in cubic centimetres	Age of car at end of relevant year of assessment
	Under 4 years	4 years or more
1400 or less	£1,700	£1,150
More than 1400 but not more than 2000	£2,200	£1,500
More than 2000	£3,550	£2,350

Table BCars with an original market value up to £19,250 and not having a cylinder capacity

Original market value of car	Age of car at end of relevant year of assessment
	Under 4 years	4 years or more
Less than £6,000	£1,700	£1,150
£6,000 or more but less than £8,500	£2,200	£1,500
£8,500 or more but not more than £19,250	£3,550	£2,350

Table CCars with an original market value of more than £19,250

Original market value of car	Age of car at end of relevant year of assessment
	Under 4 years	4 years or more
More than £19,250 but not more than £29,000	£4,600	£3,100
More than £29,000	£7,400	£4,900
(2) This section shall have effect for the year 1990-91 and subsequent years of assessment.

a

the policy holders’ share of the relevant profits for any accounting period, or

b

where the business is mutual business, the whole of those profits

shall

89 Policy holders’ share of profits.

1

The references in section 88 above to the policy holders’ share of the relevant profits for an accounting period of a company carrying on life assurance business are references to the amount arrived at by deducting from those profits the Case I profits of the company for the period in respect of the business, reduced in accordance with subsection (2) below.

2

For the purposes of subsection (1) above, the Case I profits for a period shall be reduced by—

a

the amount, so far as unrelieved, of any franked investment income arising in the period as respects which the company has made an election under section 438(6) of the Taxes Act 1988, and

b

the shareholders’ share of any other unrelieved franked investment income arising in the period from investments held in connection with the business.

3

For the purposes of this section “the shareholders’ share” in relation to any income is so much of the income as is represented by the fraction

$\frac{A}{B}$

where—

• A is an amount equal to the Case I profits of the company for the period in question in respect of its life assurance business, and

• B is an amount equal to the excess of the company’s relevant non-premium income and relevant gains over its relevant expenses and relevant interest for the period.

4

Where there is no such excess as is mentioned in subsection (3) above, or where the Case I profits are greater than any excess, the whole of the income shall be the shareholders’ share; and (subject to that) where there are no Case I profits, none of the income shall be the shareholders’ share.

5

In subsection (3) above the references to the relevant non-premium income, relevant gains, relevant expenses and relevant interest of a company for an accounting period are references respectively to the following items as brought into account for the period, so far as referable to the company’s life assurance business,—

a

the company’s investment income from the assets of its long-term business fund together with its other income, apart from premiums;

b

any increase in the value (whether realised or not) of those assets;

c

expenses payable by the company;

d

interest payable by the company;

and if for any period there is a reduction in the value referred to in paragraph (b) above (as brought into account for the period), that reduction shall be taken into account as an expense of the period.

6

Except in so far as regulations made by the Treasury otherwise provide, in this section “brought into account” means brought into account in the revenue account prepared for the purposes of the Insurance Companies Act 1982; and where the company’s period of account does not coincide with the accounting period, any reference to an amount brought into account for the accounting period is a reference to the corresponding amount brought into account for the period of account in which the accounting period is comprised, proportionately reduced to reflect the length of the accounting period as compared with the length of the period of account.

7

In this section “Case I profits” means profits computed in accordance with the provisions of the Taxes Act 1988 applicable to Case I of Schedule D.

8

For the purposes of this section franked investment income is “unrelieved” if—

a

it has not been excluded from charge to tax by virtue of any provision,

b

no tax credit comprised in it has been paid, and

c

no relief has been allowed against it by deduction or set-off.

6A

For the purposes of this section—

a

“the policy holders’ share” of any franked investment income is so much of that income as is not the shareholders’ share within the meaning of section 89 of the Finance Act 1989, and

b

“the policy holders’ share of the relevant profits” has the same meaning as in section 88 of that Act.

Kingdom)—

a

contracts under which the total premiums payable in any period of 12 months exceed £150; or

b

contracts made before 1st September 1990 under which the total premiums payable in any period of 12 months exceed £100,

unless all those contracts were made before 1st September 1987.

2

The provisions of the Corporation Tax Acts which apply on the transfer of the whole or part of the long term business of an insurance company to another company shall apply in the same way—

a

on the transfer of the whole or part of the business of a friendly society to another friendly society (and on the amalgamation of friendly societies), and

b

on the transfer of the whole or part of the business of a friendly society to a company which is not a friendly society (and on the conversion of a friendly society into such a company),

so however that the Treasury may by regulations provide that those provisions as so applied shall have effect subject to such modifications and exceptions as may be prescribed by the regulations.

3

The Treasury may by regulations provide that the provisions of the Corporation Tax Acts which apply on the transfer of the whole or part of the long term business of an insurance company to another company shall have effect where the transferee is a friendly society subject to such modifications and exceptions as may be prescribed by the regulations.

4

Regulations under this section may make different provision for different cases and may include provision having retrospective effect.

3A

In the case of a security issued on or after 9th June 1989, for the purposes of sub-paragraph (2) above “redemption” does not include any redemption which may be made before maturity only if—

a

the person who issued the security fails to comply with the duties imposed on him by the terms of issue,

b

the person who issued the security becomes unable to pay his debts, or

c

the security was issued by a company and a person gains control of the company in pursuance of the acceptance of an offer made by that person to acquire shares in the company.

659A Futures and options.

1

For the purposes of sections 592(2), 608(2)(a), 613(4), 614(3) and (4), 620(6) and 643(2)—

a

“investments” (or “investment”)

includes futures contracts and options contracts, and

b

income derived from transactions relating to such contracts shall be regarded as income derived from (or income from) such contracts,

and paragraph 7(3)(a) of Schedule 22 to this Act shall be construed accordingly.

2

For the purposes of subsection (1) above a contract is not prevented from being a futures contract or an options contract by the fact that any party is or may be entitled to receive or liable to make, or entitled to receive and liable to make, only a payment of a sum (as opposed to a transfer of assets other than money) in full settlement of all obligations.

8 Personal return.

1

For the purposes of assessing a person to income tax, he may be required by a notice given to him by an inspector—

a

to make and deliver to the inspector within the time limited by the notice a return containing such information as may be required in pursuance of the notice, and

b

to deliver with the return such accounts and statements, relating to information contained in the return, as may be required in pursuance of the notice.

2

Every return under this section shall include a declaration by the person making the return to the effect that the return is to the best of his knowledge correct and complete.

3

A notice under this section may require different information, accounts and statements for different periods or in relation to different descriptions of source of income.

4

Notices under this section may require different information, accounts and statements in relation to different descriptions of person.

8A Trustee’s return.

1

For the purpose of assessing a trustee of a settlement, and the settlors and beneficiaries, to income tax an inspector may by a notice given to the trustee require the trustee—

a

to make and deliver to the inspector within the time limited by the notice a return containing such information as may be required in pursuance of the notice, and

b

to deliver with the return such accounts and statements, relating to information contained in the return, as may be required in pursuance of the notice;

and a notice may be given to any one trustee or separate notices may be given to each trustee or to such trustees as the inspector thinks fit.

2

Every return under this section shall include a declaration by the person making the return to the effect that the return is to the best of his knowledge correct and complete.

3

A notice under this section may require different information, accounts and statements for different periods or in relation to different descriptions of source of income.

4

Notices under this section may require different information, accounts and statements in relation to different descriptions of settlement.

9 Partnership return.

1

Where a trade or profession is carried on by two or more persons jointly, for the purposes of making an assessment to income tax in the partnership name an inspector may act under subsection (2) or (3) below (or both).

2

An inspector may by a notice given to the partners require such person as is identified in accordance with rules given with the notice—

a

to make and deliver to the inspector within the time limited by the notice a return containing such information as may be required in pursuance of the notice, and

b

to deliver with the return such accounts and statements as may be required in pursuance of the notice.

3

An inspector may by a notice given to any partner require the partner—

a

to make and deliver to the inspector within the time limited by the notice a return containing such information as may be required in pursuance of the notice, and

b

to deliver with the return such accounts and statements as may be required in pursuance of the notice;

and a notice may be given to any one partner or separate notices may be given to each partner or to such partners as the inspector thinks fit.

4

Every return under this section shall include—

a

a declaration of the names and residences of the partners;

b

a declaration by the person making the return to the effect that the return is to the best of his knowledge correct and complete.

5

A notice under this section may require different information, accounts and statements for different periods or in relation to different descriptions of source of income.

6

Notices under this section may require different information, accounts and statements in relation to different descriptions of partnership.

5

The Board may by regulations provide as mentioned in all or any of the following paragraphs—

a

that a return under subsection (1) above shall contain such further information as is prescribed if the notice requiring the return specifies the information and requires it to be contained in the return;

b

that a person required to make and deliver a return under subsection (1) above shall furnish with the return such further information as is prescribed if the notice requiring the return specifies the information and requires it to be so furnished;

c

that if a person is required to furnish information under any provision made under paragraph (b) above, and the notice requiring the return specifies the form in which the information is to be furnished, the person shall furnish the information in that form;

d

that a notice under subsection (1) above shall not require prescribed information;

and in this subsection “prescribed” means prescribed by the regulations.

6

Regulations under subsection (5) above—

a

shall be made by statutory instrument subject to annulment in pursuance of a resolution of the House of Commons,

b

may make different provision in relation to different cases or descriptions of case, and

c

may include such supplementary, incidental, consequential or transitional provisions as appear to the Board to be necessary or expedient.

3B

The Board may by regulations provide as mentioned in all or any of the following paragraphs—

a

that a person required to furnish information under subsection (1) above shall furnish at the same time such further information as is prescribed if the notice concerned specifies the information and requires it to be so furnished;

b

that if a person is required to furnish information under subsection (1) above or under any provision made under paragraph (a) above, and the notice concerned specifies the form in which the information is to be furnished, the person shall furnish the information in that form;

c

that a notice under subsection (1) above shall not require prescribed information;

and in this subsection “prescribed” means prescribed by the regulations.

3C

Regulations under subsection (3B) above—

a

shall be made by statutory instrument subject to annulment in pursuance of a resolution of the House of Commons,

b

may make different provision in relation to different cases or descriptions of case, and

c

may include such supplementary, incidental, consequential or transitional provisions as appear to the Board to be necessary or expedient.

7A

A notice under subsection (2) above is not to be given unless the Board have reasonable grounds for believing—

a

that the person to whom it relates may have failed or may fail to comply with any provision of the Taxes Acts; and

b

that any such failure is likely to have led or to lead to serious prejudice to the proper assessment or collection of tax.

2A

The Board may appoint a person to be an inspector or collector for general purposes or for such specific purposes as the Board think fit.

2B

Where in accordance with the Board’s administrative practices a person is authorised to act as an inspector or collector for specific purposes, he shall be deemed to have been appointed to be an inspector or collector for those purposes.

1A

Subsection (1)

above shall not apply where the amount of tax which has been repaid is assessable under section 29 of this Act.