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Finance Act 1990

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Finance Act 1990 is up to date with all changes known to be in force on or before 21 January 2018. There are changes that may be brought into force at a future date. Help about Changes to Legislation

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Revised legislation carried on this site may not be fully up to date. Changes and effects are recorded by our editorial team in lists which can be found in the ‘Changes to Legislation’ area. Where those effects have yet to be applied to the text of the legislation by the editorial team they are also listed alongside the affected provisions when you open the content using the Table of Contents below.

  1. Introductory Text

  2. Part I Customs and Excise and Value Added Tax

    1. chapter I Customs and Excise

      1. Rates of duty

        1. 1. Spirits, beer, wine, made-wine and cider.

        2. 2. Tobacco products.

        3. 3. Hydrocarbon oil.

        4. 4. Pool betting duty.

        5. 5. Vehicles excise duty.

      2. Other provisions

        1. 6. Vehicles excise duty: exemptions.

        2. 7. Entry of goods on importation.

        3. 8. Spirits methylated abroad.

        4. 9. Lodgings for officers in charge of distillery.

    2. chapter II Value Added Tax

      1. 10. Registration.

      2. 11. Bad debts.

      3. 12. Domestic accommodation.

      4. 13. Goods shipped as stores.

      5. 14. Supplies to groups.

      6. 15. Power to assess.

      7. 16. Interest on tax etc. recovered or recoverable by assessment.

  3. Part II Income Tax, Corporation Tax and Capital Gains Tax

    1. Chapter I General

      1. Income tax rates and allowances

        1. 17. Rates and main allowances.

        2. 18. Relief for blind persons.

      2. Corporation tax rates

        1. 19. Charge and rate of corporation tax for 1990.

        2. 20. Small companies.

      3. Benefits in kind

        1. 21. Care for children.

        2. 22. Car benefits.

      4. Mileage allowances

        1. 23. Limit on chargeable mileage profit.

      5. Charities

        1. 24. Payroll deduction scheme.

        2. 25. Donations to charity by individuals.

        3. 26. Company donations to charity.

        4. 27. Maximum qualifying company donations.

      6. Savings

        1. 28. Tax-exempt special savings accounts.

        2. 29. Extension of SAYE.

        3. 30. Building societies.

      7. Employee share ownership trusts

        1. 31. Conditions for roll-over relief.

        2. 32. Conditions for relief: supplementary.

        3. 33. The relief.

        4. 34. Dwelling-houses: special provision.

        5. 35. Shares: special provision.

        6. 36. Chargeable event when replacement assets owned.

        7. 37. Chargeable event when replacement property owned.

        8. 38. Chargeable event when bonds owned.

        9. 39. Information.

        10. 40. Other enactments.

      8. Insurance companies and friendly societies

        1. 41. Apportionment of income etc.

        2. 42. Overseas life assurance business.

        3. 43. Deduction for policy holders’ tax.

        4. 44. Reinsurance commissions.

        5. 45. Policy holders’ share of profits etc.

        6. 46. Annual deemed disposal of holdings of unit trusts etc.

        7. 47. Spreading of gains and losses under section 46.

        8. 48. Transfers of long term business.

        9. 49. Friendly societies: increased tax exemption.

        10. 50. Friendly societies: application of enactments.

      9. Unit and investment trusts etc.

        1. 51. Authorised unit trusts.

        2. 52. Unit trusts: repeals.

        3. 53. Unit trust managers: exemption from bond-washing provisions.

        4. 54. Indexation: collective investment schemes.

        5. 55. Investment trusts.

      10. Securities

        1. 56. Convertible securities.

        2. 57. Deep gain securities.

        3. 58. Qualifying indexed securities.

        4. 59. Deep discount securities.

      11. Oil industry

        1. 60. Allowance for abandonment expenditure related to offshore machinery or plant.

        2. 61. Carrying back of losses referable to allowance for abandonment expenditure.

        3. 62. CT treatment of PRT repayment.

        4. 63. Disposals of certain shares deriving value from exploration or exploitation assets or rights.

        5. 64. Limitation of losses on disposal of oil industry assets.

      12. International

        1. 65. Dual resident companies: capital gains.

        2. 66. Dual resident companies: transfers of assets abroad.

        3. 67. Dual resident companies: controlled foreign companies.

        4. 68. Movements of capital between residents of member States.

        5. 69. European Economic Interest Groupings.

        6. 70. Transfer of United Kingdom branch or agency.

      13. Miscellaneous

        1. 71. Relief for interest.

        2. 72. Capital gains: annual exempt amount for 1990-91.

        3. 73. Business expansion scheme: abolition of “locality rule”.

        4. 74. Debts of overseas governments etc.

        5. 75. Local enterprise agencies.

        6. 76. Training and enterprise councils and local enterprise companies.

        7. 77. Expenses of entertainers.

        8. 78. Waste disposal.

        9. 79. Priority share allocations for employees etc.

        10. 80. Broadcasting: transfer of undertakings of Independent Broadcasting Authority and Cable Authority.

        11. 81. Futures and options: exemptions.

        12. 82. Settlements: child’s income.

        13. 83. Loans to traders.

        14. 84. Qualifying corporate bonds: relief.

        15. 85. Qualifying corporate bonds: reorganisations etc.

        16. 86. Groups of companies.

        17. 87. Capital allowances: vehicles provided by employees.

        18. 88. Capital allowances: miscellaneous amendments.

        19. 89. Correction of errors in Taxes Act 1988.

    2. Chapter II Management

      1. Returns and information

        1. 90. Income tax returns.

        2. 91. Corporation tax returns.

        3. 92. Information powers relating to interest.

        4. 93. Restrictions on Board’s power to call for information.

        5. 94. Donations to charity: inspection powers.

      2. Corporation tax determinations

        1. 95. Determinations.

        2. 96. Consequential group relief adjustments.

      3. Claims by companies

        1. 97. Payment of tax credits.

        2. 98. Repayment of income tax deducted at source.

        3. 99. Loss relief.

        4. 100. Group relief: general.

        5. 101. Group relief: relieved losses

        6. 102. Capital allowances: general.

        7. 103. Capital allowances: assimilation to claims by individuals.

      4. Miscellaneous

        1. 104. Officers.

        2. 105. Recovery of excessive repayments of tax.

        3. 106. Corporation tax: collection.

  4. Part III Stamp Duty and Stamp Duty Reserve Tax

    1. Repeals

      1. 107. Stamp duty to be abolished on bearer instruments.

      2. 108. Transfer of securities: abolition of stamp duty.

      3. 109. Stamp duty: other repeals.

      4. 110. Stamp duty reserve tax: abolition.

      5. 111. General.

    2. Paired shares

      1. 112. Stamp duty.

      2. 113. Stamp duty reserve tax.

    3. International organisations

      1. 114. International organisations.

  5. Part IV Miscellaneous and General

    1. Ports levy

      1. 115. Levy on privatisation of certain ports.

      2. 116. Amount of levy.

      3. 117. Levy on employee securities.

      4. 118. Payment of levy.

      5. 119. Information for purposes of levy.

      6. 120. Supplementary provisions relating to levy.

    2. Petroleum revenue tax

      1. 121. Limit on PRT repayment interest where loss carried back.

      2. 122. Variation, on account of fraudulent or negligent conduct, of decision on expenditure claim etc.

    3. Miscellaneous

      1. 123. Gas levy.

      2. 124. Inheritance tax: restriction on power to require information.

      3. 125. Information for tax authorities in other member States.

      4. 126. Pools payments for football ground improvements.

      5. 127. Definition of “local authority” for certain tax purposes.

      6. 128. Repayment of fees and charges.

      7. 129. Settlement of stock disputes by deputy registrars.

      8. 130. Limit for local loans.

    4. General

      1. 131. Interpretation etc.

      2. 132. Repeals.

      3. 133. Short title.

  6. SCHEDULES

    1. SCHEDULE 1

      Table of Rates of Duty on Wine and Made-Wine

    2. SCHEDULE 2

      Vehicles Excise Duty: Rates

      1. Part I

      2. Part II Amendments of Part I of Schedule 4 to the 1971 Act

        1. 1.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

        2. 2.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

        3. 3.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

        4. 4.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

        5. 5.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

        6. 6.(1) Paragraph 5 (special types of vehicle) shall be amended...

        7. 7.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

        8. 8.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

        9. 9.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

      3. Part III

        1. 10.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

        2. 11.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

      4. Part IV Tables Substituted in Part II of Schedule 4 to the 1971 Act and the 1972 Act

    3. SCHEDULE 3

      Entry of Goods on Importation

      1. 1.The Customs and Excise Management Act 1979 shall be amended...

      2. 2.(1) Section 37A (initial and supplementary entries) shall be amended...

      3. 3.(1) Section 37B (postponed entry) shall be amended as follows....

      4. 4.(1) Section 37C (provisions supplementary to sections 37A and 37B)...

    4. SCHEDULE 4

    5. SCHEDULE 5

      Building Societies and Deposit-Takers

      1. Introduction

        1. 1.The Taxes Act 1988 shall be amended as mentioned in...

      2. Building societies

        1. 2.(1) Section 476 (building societies: regulations for payment of tax)...

        2. 3.(1) Section 477 (investments becoming or ceasing to be relevant...

        3. 4.(1) The following section shall be inserted immediately before section...

      3. Deposit-takers

        1. 5.(1) Section 479 (interest paid on deposits with banks etc.)...

        2. 6.(1) Section 480 (deposits becoming or ceasing to be composite...

        3. 7.(1) The following sections shall be inserted immediately before section...

        4. 8.(1) Section 481 (definitions of relevant deposit etc. ) shall...

        5. 9.(1) Section 482 (supplementary provisions) shall be amended as follows....

      4. General

        1. 10.(1) Section 349 (annual interest etc. ) shall be amended...

        2. 11.(1) In section 352(1) (certificates of deduction of tax) for...

        3. 12.(1) In section 483 (determination of reduced rate for building...

        4. 13.(1) In section 686 (liability to additional rate tax of...

        5. 14.(1) In section 687 (payments under discretionary trusts) in subsection...

      5. Management

        1. 15.In the Table in section 98 of the Taxes Management...

      6. Transitional provision

        1. 16.(1) In its application to the year 1991-92, section 477A...

    6. SCHEDULE 6

      Life Assurance: Apportionment of Income etc.

      1. 1.(1) Section 431 of the Taxes Act 1988 shall be...

      2. 2.After section 431 of the Taxes Act 1988 there shall...

      3. 3.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

      4. 4.After section 432 of that Act there shall be inserted—...

      5. 5.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

      6. 6.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

      7. 7.In section 439 of that Act, for the words from...

      8. 8.For section 440 of that Act there shall be substituted—...

      9. 9.(1) In section 724 of the Taxes Act 1988, after...

      10. 10.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

      11. 11.(1) Paragraph 9 above shall be deemed to have come...

      12. 12.(1) Where at the end of 1989 the assets of...

    7. SCHEDULE 7

      Overseas Life Assurance Business

      1. 1. Overseas Life Assurance Business

      2. 2. Overseas Life Assurance Business

      3. 3. Overseas Life Assurance Business

      4. 4. Overseas Life Assurance Business

      5. 5. Overseas Life Assurance Business

      6. 6. Overseas Life Assurance Business

      7. 7. Overseas Life Assurance Business

      8. 8. Overseas Life Assurance Business

      9. 9. Overseas Life Assurance Business

      10. 10. Overseas Life Assurance Business

    8. SCHEDULE 8

      1. General

        1. 1.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

      2. Exemption for certain linked assets

        1. 2.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

      3. Replacement of assets

        1. 3.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

        2. 4.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

        3. 5.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

      4. Supplementary

        1. 6.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

    9. SCHEDULE 9

      Insurance Companies: Transfers of Long Term Business

      1. Capital gains

        1. 1.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

        2. 2.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

      2. Accounting periods

        1. 3.In section 12 of the Taxes Act 1988, after subsection...

      3. Expenses of management and losses

        1. 4.The following section shall be inserted after section 444 of...

      4. Capital allowances

        1. 5.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

      5. Transfer to friendly society

        1. 6.In section 460 of the Taxes Act 1988, after subsection...

      6. Commencement

        1. 7.This Schedule shall apply to transfers of business taking place...

    10. SCHEDULE 10

      1. Part I Introduction

        1. Qualifying provision for redemption

          1. 1.For the purposes of this Schedule a qualifying provision for...

        2. Qualifying convertible securities

          1. 2.(1) For the purposes of this Schedule a security is...

        3. Events after issue

          1. 3.(1) A security which was a qualifying convertible security at...

        4. Securities becoming subject to later options

          1. 4.(1) This paragraph applies where— (a) a security becomes at...

        5. Other later events in relation to securities

          1. 5.(1) This paragraph applies where— (a) a prohibited event occurs...

        6. Deep gain

          1. 6.(1) For the purposes of this Schedule the amount payable...

        7. Income period

          1. 7.(1) This paragraph applies for the purposes of this Schedule....

        8. Redemption period

          1. 8.(1) For the purposes of this Schedule each of the...

        9. Yield to redemption

          1. 9.(1) For the purposes of this Schedule the yield to...

        10. Transfer etc.

          1. 10.(1) This paragraph applies for the purposes of this Schedule....

        11. Miscellaneous

          1. 11.(1) This paragraph applies for the purposes of this Schedule....

      2. Part II Charge to Tax

        1. The charge

          1. 12.(1) For the purposes of this Part of this Schedule...

        2. Chargeable amount

          1. 13.(1) For the purposes of paragraph 12 above the chargeable...

        3. Total income element

          1. 14.(1) The total income element for the purposes of paragraph...

        4. Income elements

          1. 15.(1) This paragraph has effect for the purposes of paragraph...

        5. Death

          1. 16.(1) Where an individual who is entitled to a security...

        6. Market value

          1. 17.(1) This paragraph applies where a security is transferred from...

        7. Underwriters

          1. [18.(1) An underwriting member of Lloyd’s shall be treated for...

        8. Trustees

          1. 19.(1) Where on a transfer or redemption of a security...

        9. Receipts in United Kingdom

          1. 20.(1) Sub-paragraph (2) below applies where— (a) by virtue of...

        10. Charities

          1. 21.(1) In a case where— (a) paragraph 12 above would...

        11. Retirement benefit schemes

          1. 22.In a case where— (a) paragraph 12 above would apply...

        12. Stock lending

          1. 23.In a case where— (a) a security is the subject...

        13. Identification of securities

          1. 24.Section 108 of the Taxation of Chargeable Gains Act 1992...

      3. Part III The Issuing Company

        1. 25.(1) In a case where— (a) a qualifying convertible security...

      4. Part IV Amendments

        1. (1) Deep discount securities

          1. 26.(1) Schedule 4 to the Taxes Act 1988 (deep discount...

        2. (2) Deep gain securities

          1. 27.(1) Schedule 11 to the Finance Act 1989 (deep gain...

        3. (3) Corporate bonds

          1. 28.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

      5. Part V Application of Schedule

        1. 29.(1) The amendment made by paragraph 27(2) above shall be...

    11. SCHEDULE 11

      European Economic Interest Groupings

      1. Taxation

        1. 1.After section 510 of the Taxes Act 1988 there shall...

      2. Management

        1. 2.After section 12 of the Taxes Management Act 1970 there...

        2. 3.(1) After section 98A of the Taxes Management Act 1970...

        3. 4.(1) At the end of section 36 of the Taxes...

      3. Commencement

        1. 5.This Schedule shall be deemed to have come into force...

    12. SCHEDULE 12

      Broadcasting: Transfer of Undertakings of Independent Broadcasting Authority and Cable Authority

      1. Transfer of IBA’s transmission activities to nominated company: corporation tax

        1. 1.(1) Subject to sub-paragraph (2), the following provisions shall apply...

      2. Transfer of IBA’s assets to Commission and Radio Authority: chargeable gains

        1. 2.(1) For the purposes of the 108 of the Taxation...

      3. Disposal by IBA of DBS assets to DBS programme contractor: chargeable gains

        1. 3.(1) For the purposes of the 1979 Act the disposal...

      4. Transfer of Cable Authority’s assets to Commission: chargeable gains

        1. 4.For the purposes of the 1992 Act the transfer by...

      5. Transfer of shares from Commission to Channel 4 company: chargeable gains

        1. 5.(1) For the purposes of the 1992 Act the transfer...

      6. Apportionment of unallowed capital losses between relevant transferees

        1. 6.(1) The unallowed capital losses of the IBA shall be...

      7. Roll-over relief in connection with nominated company

        1. 7.Where the IBA have before the transfer date disposed of...

      8. Disputes as to apportionments etc.

        1. 8.(1) This paragraph applies where any apportionment or other matter...

      9. Securities of nominated company

        1. 9.(1) Any share issued by the nominated company to the...

      10. Interpretation

        1. 10.(1) In this Schedule— “ the 1992 Act ” means...

    13. SCHEDULE 13

      Capital Allowances: Miscellaneous Amendments

      1. Hotels in enterprise zones: initial allowances

        1. 1.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

      2. Scientific research allowance: writing off of expenditure

        1. 2.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

      3. Disposal value of machinery or plant after succession to trade

        1. 3.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

      4. Non-resident companies: use of allowances

        1. 4.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

      5. Contributions: machinery and plant

        1. 5.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

      6. Sale of machinery or plant

        1. 6.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

      7. Assured tenancies allowance

        1. 7.(1) In section 832(1) of the Taxes Act 1988, in...

    14. SCHEDULE 14

      Amendments Correcting Errors in the Taxes Act 1988

      1. Part I Amendments of the Taxes Act 1988

        1. 1.The Taxes Act 1988 shall have effect, and shall be...

        2. 2.In section 37(1)— (a) . . . . . ....

        3. 3.In section 213(6), for “(3)(1)(a)” there shall be substituted “...

        4. 4.(1) In section 322(1)(a) , after the words “a British...

        5. 5.In section 326(2)(a), for the words from “12” to “1969”...

        6. 6.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

        7. 7.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

        8. 8.In section 478(3), for the words “section (2)” there shall...

        9. 9.In section 751(1)(a), for the words “the persons” there shall...

        10. 10.In section 757(7), before the words “the earliest date” there...

        11. 11.In section 761(1), for the words “and Schedule” there shall...

        12. 12.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

        13. 13.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

      2. Part II Amendments of Other Enactments

        1. The Taxes Management Act 1970 (c. 9)

          1. 14.In section 31(3) of the Taxes Management Act 1970, for...

          2. 15.In section 98 of that Act, in the first column...

        2. The Oil Taxation Act 1975 (c. 22)

          1. 16.In paragraph 5(2) of Schedule 3 to the Oil Taxation...

        3. The Capital Gains Tax Act 1979 (c. 14)

          1. 17.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

        4. The Finance Act 1981 (c. 35)

          1. 18.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

        5. Commencement

          1. 19.(1) Subject to the following provisions of this paragraph, the...

    15. SCHEDULE 15

    16. SCHEDULE 16

    17. SCHEDULE 17

      1. Introductory

        1. 1.The Capital Allowances Act 1990 shall be amended as follows....

      2. Industrial buildings and structures

        1. 2.In section 1 (initial allowances: enterprise zones) in subsection (5)...

      3. Machinery and plant: general

        1. 3.(1) Section 22 (first-year allowances: transitional relief for regional projects)...

        2. 4.(1) Section 23 (information relating to first-year allowances) shall be...

        3. 5.(1) Section 24 (writing-down allowances and balancing adjustments) shall be...

        4. 6.(1) Section 25 (qualifying expenditure) shall be amended as follows....

      4. Machinery and plant: ships

        1. 7.In section 30 (first-year allowances) in subsection (1)(a) the words...

        2. 8.In section 31 (writing-down allowances) the following subsection shall be...

      5. Machinery and plant: leased assets and inexpensive cars

        1. 9.In section 41 (writing-down allowances) in subsection (3) the words...

        2. 10.In section 46 (recovery of excess relief: new expenditure) in...

        3. 11.In section 47 (recovery of excess relief: old expenditure) in...

        4. 12.In section 48 (information relating to allowances made in respect...

        5. 13.In section 49 (information relating to allowances made in respect...

      6. Machinery and plant: supplementary

        1. 14.In section 79 (effect of use partly for trade etc....

        2. 15.In section 80 (effect of subsidies towards wear and tear)...

    18. SCHEDULE 18

      Definition of “Local Authority”

      1. 1.In section 74(4) of the Finance Act 1952 for “519”...

      2. 2.Section 52 of the Finance Act 1974 shall cease to...

      3. 3.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

      4. 4.In section 272 of the Inheritance Tax Act 1984, in...

      5. 5.(1) The Taxes Act 1988 shall be amended as follows....

    19. SCHEDULE 19

      REPEALS

      1. PART I CUSTOMS AND EXCISE

      2. PART II VEHICLES EXCISE DUTY

      3. PART III VALUE ADDED TAX

      4. PART IV INCOME TAX, CORPORATION TAX AND CAPITAL GAINS TAX

      5. PART V MANAGEMENT

      6. PART VI STAMP DUTY

      7. PART VII STAMP DUTY RESERVE TAX

      8. PART VIII NATIONAL SAVINGS

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