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Finance Act 1994

Status:

This is the original version (as it was originally enacted).

Part VIncome tax, corporation tax and capital gains tax

(1) Reliefs

ChapterShort titleExtent of repeal
The repeals in section 347B of the Income and Corporation Taxes Act 1988 and in the Finance Act 1988 have effect in relation to payments becoming due on or after 6th April 1994 and the other repeals have effect in accordance with section 77(7) of this Act.
1988 c. 1.The Income and Corporation Taxes Act 1988.Section 257BB(6).
In section 257D(5)(d), the words “section 257A and”.
In section 265(3)(b), the words from “section 257A” to “or under”.
In section 347B(2), the words “Notwithstanding section 347A(1)(a) but”.
1988 c. 39.The Finance Act 1988.In Schedule 3, paragraph 33.
1992 c. 48.The Finance (No. 2) Act 1992.In Schedule 5, paragraph 8(2).

(2) Interest relief

ChapterShort titleExtent of repeal
These repeals have effect in accordance with section 81(6) of this Act.
1988 c. 1.The Income and Corporation Taxes Act 1988.Section 257D(8)(a).
Section 265(3)(a).
Section 353(4) and (5).
1991 c. 31.The Finance Act 1991.Section 27(1) to (5) and (7).
1992 c. 12.The Taxation of Chargeable Gains Act 1992.In section 6(1), the words “353(4), 369(3A)”, the words “certain interest etc. and” and paragraph (a).
1992 c. 48.The Finance (No. 2) Act 1992.In section 19, in subsection (3), the words “353(5), 369(3B)” and subsection (5).
1993 c. 34.The Finance Act 1993.Section 57(7).
In Schedule 6, in paragraph 1, the words “353(5), 369(3B)”.

(3) Medical insurance

ChapterShort titleExtent of repeal
(1)

The repeals in the Income and Corporation Taxes Act 1988 have effect in accordance with paragraph 3 of Schedule 10 to this Act.

(2)

The repeals in the Finance Act 1989 have effect in accordance with paragraph 5 of that Schedule.

1988 c. 1.The Income and Corporation Taxes Act 1988.In section 257D(8), paragraph (d).
In section 265(3), paragraph (d).
1989 c. 26.The Finance Act 1989.In section 55, in subsection (2) paragraph (e) and the word “and” immediately preceding it, and subsections (3) to (6).

(4) Vocational training

ChapterShort titleExtent of repeal
This repeal comes into force in accordance with section 84(4) of this Act.
1991 c. 31.The Finance Act 1991.In section 32(10), the words after paragraph (b).

(5) Beneficial loans

ChapterShort titleExtent of repeal
These repeals have effect in accordance with section 88(5) of this Act.
1988 c. 1.The Income and Corporation Taxes Act 1988.In section 160(4), the words from “and Part III” to the end.
Section 167(2A).
Section 191B(14).
In Schedule 7, in paragraph 1(5) the words “his employer, being” and Parts III to V.
1991 c. 31.The Finance Act 1991.Section 31.
In Schedule 6, paragraphs 2 and 5.

(6) Vouchers

ChapterShort titleExtent of repeal
1988 c. 1.The Income and Corporation Taxes Act 1988.In section 141(1), the words following paragraph (b).

(7) Relief on re-investment

ChapterShort titleExtent of repeal
These repeals have effect in accordance with section 91(2) of this Act.
1992 c. 12.The Taxation of Chargeable Gains Act 1992.In section 164A, in subsection (2) the words “Subject to section 164C”, and subsections (3) to (7) and (11).
Sections 164C to 164E.
In section 164F, in subsection (5)(a) the words “or 164D” and in subsection (10) the words “(within the meaning of section 164D)”.
In section 164H(1), the words “within the meaning of section 164C”.

(8) Indexation allowance

ChapterShort titleExtent of repeal
These repeals have effect in accordance with section 93(11) of this Act.
1992 c. 12.The Taxation of Chargeable Gains Act 1992.In section 56(1)(a), the words “or loss”.
Section 103.
Section 111.
Sections 182 to 184.
Section 200.
In Schedule 7A, in paragraph 2(4) the words “except in relation to the calculation of any indexed rise”, in paragraph 2(9) the definition of “indexed rise”, in paragraph 4(12) the words from “together” to the end and paragraph 4(13).
1993 c. 34.The Finance Act 1993.In Schedule 17, paragraph 8.

(9) Commodity and financial futures

ChapterShort titleExtent of repeal
This repeal has effect in accordance with section 95(2) of this Act.
1992 c. 12.The Taxation of Chargeable Gains Act 1992.Section 143(4).

(10) Settlements with foreign element: information

ChapterShort titleExtent of repeal
These repeals have effect in accordance with section 97 of this Act.
1970 c. 9.The Taxes Management Act 1970.In the Table in section 98, in the second column the entry relating to paragraphs 11 to 14 of Schedule 5 to the Taxation of Chargeable Gains Act 1992.
1992 c. 12.The Taxation of Chargeable Gains Act 1992.In Schedule 5, paragraphs 11 to 14.

(11) Profit sharing schemes

ChapterShort titleExtent of repeal
1988 c. 1.The Income and Corporation Taxes Act 1988.In Schedule 10, in paragraph 3 the words from “In this paragraph” to the end of the paragraph.

(12) Retirement benefits schemes

ChapterShort titleExtent of repeal
(1)

The repeals in sections 188 and 189 have effect in accordance with section 108 of this Act.

(2)

The repeal in section 591 has effect in accordance with section 107 of this Act.

(3)

The repeal of section 605(1) and (2) has effect in accordance with section 105 of this Act.

(4)

The repeal in section 612(1) has effect in accordance with section 103 of this Act.

1988 c. 1.The Income and Corporation Taxes Act 1988.In section 188(1), paragraph (c).
In section 189, paragraph (b).
In section 591(2)(g) the words “approved by the Board and”.
Section 605(1) and (2).
In section 612(1), the definition of “administrator”.

(13) Authorised unit trusts

ChapterShort titleExtent of repeal
These repeals have effect in accordance with section 111 of and Schedule 14 to this Act.
1988 c. 1.The Income and Corporation Taxes Act 1988.In section 468, subsection (2), and in subsection (6) the definition of “distribution period”.
Sections 468F and 468G.
1993 c. 34.The Finance Act 1993.In Schedule 6, paragraphs 4, 5 and 25(2).

(14) Manufactured payments

ChapterShort titleExtent of repeal
These repeals have effect in accordance with section 123 of this Act.
1988 c. 1.The Income and Corporation Taxes Act 1988.In paragraph 5 of Schedule 23A, in sub-paragraphs (2) and (4) the word “and” at the end of paragraph (b).

(15) Controlled Foreign Companies

ChapterShort titleExtent of repeal
These repeals have effect in accordance with section 134(5) of this Act.
1988 c. 1.The Income and Corporation Taxes Act 1988.In paragraph 2 of Schedule 25, in sub-paragraph (1), in paragraph (a) the words “or for some other period which, in whole or in part, falls within that accounting period” and the words following paragraph (d), and sub-paragraph (2).

(16) Repeals connected with foreign income dividends

ChapterShort titleExtent of repeal
1988 c. 1.The Income and Corporation Taxes Act 1988.In section 434(6A) the word “and” at the end of paragraph (a).
In section 438(6) the words from “being” to “that profit,”.
In section 731(9), in the definition of “interest” the words from “and in applying” to the end of paragraph (b).

(17) Enterprise investment scheme

ChapterShort titleExtent of repeal
These repeals have effect in relation to shares issued on or after 1st January 1994.
1988 c. 1.The Income and Corporation Taxes Act 1988.In section 257D(8)(b), the words “or under section 289”.
In section 265(3)(b), the words “or under section 289”.
In section 290A, subsection (10) and, in subsection (11), the definition of “prospectus”.
In section 293, subsection (4) and subsections (9) to (11).
Section 296(6).
In section 297, in subsection (1) the words “(6) and” and in subsection (2) paragraphs (h) and (j).
In section 298, in subsection (5) the definition of “property development” and subsections (6) to (8).
Section 301(1), (2) and (7).
Section 303(8), (10) and (11).
In section 306(10), the second sentence.
In section 307, in subsection (1) the words from “but” to the end and subsection (9).
Section 308(6).
Section 309.
Section 310(10) and (11).
In section 312, in subsection (1) the definitions of “fixed-rate preference share capital” and “the relevant period”.
1988 c. 39.The Finance Act 1988.Section 50.
Schedule 4.
1990 c. 29.The Finance Act 1990.Section 73.
1992 c. 12.The Taxation of Chargeable Gains Act 1992.In section 231(1)(d) the words “(business expansion scheme)”.
1992 c. 48.The Finance (No. 2) Act 1992.Sections 38 to 40.

(18) Deduction from income

ChapterShort titleExtent of repeal
This repeal has effect in accordance with section 140 of this Act.
1988 c. 1.The Income and Corporation Taxes Act 1988.In section 808 the words “In this section “securities” includes stocks and shares.”

(19) Qualifying lenders

ChapterShort titleExtent of repeal
1988 c. 1.The Income and Corporation Taxes Act 1988.Section 376(5).
In section 379, the words “except in section 376(4) and (5)”.
In section 828(4), “376(5)”.

(20) Premiums referred to pension business

ChapterShort titleExtent of repeal
These repeals have effect in accordance with section 143 of this Act.
1988 c. 1.The Income and Corporation Taxes Act 1988.In section 431(4), in paragraph (d) the words “approved by the Board and” and in paragraph (e) the words “approved by the Board”.

(21) Business donations

ChapterShort titleExtent of repeal
1990 c. 29.The Finance Act 1990.Section 75.

(22) Minor corrections

ChapterShort titleExtent of repeal
The repeals in sections 43 and 271 of, and Schedule 11 to, the Income and Corporation Taxes Act 1988 have effect in accordance with Schedule 17 to this Act.
1965 c. 25.The Finance Act 1965.Section 87.
Schedule 21.
1966 c. 18.The Finance Act 1966.In Schedule 5, paragraph 19.
In Schedule 6, paragraph 23.
1970 c. 9.The Taxes Management Act 1970.In Schedule 4, paragraph 6.
1970 c. 10.The Income and Corporation Taxes Act 1970.In Schedule 15, in Part I of the Table in paragraph 11, the entry relating to the Finance Act 1966.
1988 c. 1.The Income and Corporation Taxes Act 1988.In section 43(1), the words “or IV”.

In section 271—

(a)

in subsection (1)—

(i)

the words “or contract”, wherever they occur,

(ii)

in paragraph (b), the words “or the contract was made after that date”, and

(iii)

in paragraph (c), the words “or, as the case may be, the body with which the contract was made”, and

(b)

in subsection (2), paragraph (b) and the word “or” immediately preceding it.

Section 614(1).
In Schedule 11, in paragraph 8(b), the words “Chapter II of Part I of the 1968 Act or”.

(23) Management: self-assessment etc.

ChapterShort titleExtent of repeal
(1)

The repeal of section 118(3) of the Taxes Management Act 1970 has effect in accordance with section 199(2) of, and paragraph 34(3) of Schedule 19 to, this Act.

(2)

The repeal of section 5 of the Income and Corporation Taxes Act 1988—

(a)

except so far as it relates to partnerships whose trades, professions or businesses are set up and commenced before 6th April 1994, has effect in accordance with section 199(2) of this Act; and

(b)

so far as it so relates, has effect as respects the year 1997-98 and subsequent years of assessment.

(3)

The repeals in section 824 of the Income and Corporation Taxes Act 1988 has effect in accordance with section 199(2) of, and paragraph 41(4) of Schedule 19 to, this Act.

(4)

The other repeals have effect in accordance with section 199(2) of this Act.

1970 c. 9.The Taxes Management Act 1970.In section 11(1), the words “inspector or other”.
Section 11A.
In section 12, subsections (1) and (4).
In section 33(2), the proviso.
In section 95(3), the words from “and the references” to the end.
Section 118(3).
1975 c. 45.The Finance (No. 2) Act 1975.Section 67(1).
1988 c. 1.The Income and Corporation Taxes Act 1988.Section 5.
Section 10.
In section 203(2)(dd), the words from “(being not less” to “due)”.
Section 478.
In section 824, subsection (5), in subsection (9), the words “a partnership” and the words “(within the meaning of section 111 of the Finance Act 1989)”, and subsection (10).
1992 c. 12The Taxation of Chargeable Gains Act 1992.Section 283(5).

(24) Changes for facilitating self-assessment

ChapterShort titleExtent of repeal
(1)

The repeal in section 65(3) of the Income and Corporation Taxes Act 1988 has effect in accordance with sections 207(6) and 218(1)(b) of this Act.

(2)

The repeal in section 96(6) of the Income and Corporation Taxes Act 1988 has effect in accordance with section 216(5) of this Act.

(3)

The repeal in section 96(7) of the Income and Corporation Taxes Act 1988 has effect in accordance with section 214(7) of this Act.

(4)

The following repeals, namely—

(a)

the repeals in sections 113, 114, 115, 277, 380, 381 and 386 of the Income and Corporation Taxes Act 1988;

(b)

the repeal of subsection (5) of section 384 of that Act;

(c)

the repeal of subsections (2) and (5) of section 385 of that Act; and

(d)

the repeal of subsection (3) of section 389 of that Act,

have effect in accordance with section 215(4) of this Act.

(5)

The following repeals, namely—

(a)

the repeals in sections 384(1) and (2), 388, 397, 521, 528 and 530 of the Income and Corporation Taxes Act 1988;

(b)

the repeal of section 383 of that Act;

(c)

the repeal of subsections (5) to (7) of section 389 of that Act;

(d)

the repeals in the Capital Allowances Act 1990;

(e)

the repeal in section 72 of the Finance Act 1991; and

(f)

the repeal in section 118 of the Finance Act 1994,

have effect in accordance with sections 211(2) and 218(1)(b) of this Act.

(6)

The repeals of subsections (3) and (8) of section 385 of the Income and Corporation Taxes Act 1988 have effect in accordance with section 209(7) of this Act.

(7)

The other repeals have effect in accordance with section 218(1) of this Act.

1988 c. 1.The Income and Corporation Taxes Act 1988.In section 65, in subsection (1), the words “and sections 66 and 67” and the words “the year preceding”, in subsection (3), the words from “Nothing in this subsection” to the end, and in subsection (5), the words “subject to sections 66 and 67” and the words “the year preceding”, in each place where they occur.
Sections 66 and 67.
In section 96, in subsection (5), paragraph (b), in subsection (6), the words from “except that” to the end, and in subsection (7), paragraph (b).
In section 113, in subsection (1), the words “and of section 114(3)(b)”, subsections (3) to (5) and, in subsection (6), the words from “and where” to the end.
In section 114, in subsection (3), the words from “except that” to the end, and subsection (4).
In section 115, subsections (1) to (3) and (6).
In section 277, in subsection (1), the words “Subject to subsection (2) below”, paragraph (c) and the word “and” immediately preceding that paragraph, and subsection (2).
Section 380(3).
Section 381(6).
Section 383.
In section 384, in subsection (1), the words “(including any amount in respect of capital allowances which, by virtue of section 383, is to be treated as a loss)”, in subsection (2), the words “or an allowance in respect of expenditure incurred”, paragraph (b) and the word “or” immediately preceding that paragraph, and subsection (5).
In section 385, subsections (2), (3), (5) and (8).
Section 386(4).
In section 388, in subsection (6), paragraphs (b) and (d) and the word “and” immediately preceding paragraph (d), and in subsection (7), the words from the beginning to “an earlier year; and”.
In section 389, subsections (3) and (5) to (7).
In section 397(1), the words from “and where” to the end.
In section 521, in subsections (1) and (2), the words “or its basis period”.
In section 528(1), the words “or its basis period”.
In section 530, in subsections (4) and (5), the words “or its basis period”.
In section 804(8), the definitions of “non-basis period” and “years of commencement” and the words “references to the enactments relating to cessation are references to sections 63, 67 and 113”.
1990 c. 1.The Capital Allowances Act 1990.In section 3, in subsections (1) and (2B) to (4), the words “or its basis period”, in each place where they occur.
In section 4(10), the words “or of which the basis periods end on or before that date”.
In section 7, in subsections (2) and (3), the words “or its basis period”.
In section 8, in subsection (3), the words “or its basis period”, and in subsection (5), in paragraph (a), the words from “or” to the end.
In section 9(3), the words “or its basis period”.
In section 19(3), the words “or its basis period”, in each place where they occur.
In section 21(8), the words “or its basis period”.
In section 23(2), the words “or its basis period”.
In section 24, in subsections (6), (6A) and (7), the words “or its basis period”, in each place where they occur.
In section 25, in subsections (1) and (7), the words “or its basis period”.
In section 33(3), the words “or, as the case may be, in its basis period”.
In section 37, in subsections (2) and (9), the words “or its basis period”, in subsection (5), the words “or, as the case may be, in its basis period” and, in subsection (6), the words “or in the basis period for which”.
In section 42(4), the words “or in the basis period for which”.
In section 46(1), the words “or in the basis period for which”.
In section 47(1), the words “or in the basis period for which”.
In section 48, in subsections (3), (4) and (5), the words “or its basis period”.
In section 49(2), the words “or its basis period”.
In section 61(5), the words “or its basis period”.
In section 62A(6), the words “or its basis period”.
In section 67(6), the words “or its basis period”.
In section 73(3), the words “or its basis period”.
In section 79, in subsections (3) and (5), the words “or its basis period”, in each place where they occur.
In section 85, in subsections (1), (3) and (4), the words “or its basis period”, in each place where they occur.
In section 87(6), the words “or of which the basis periods end on or before that date”.
In section 93(3), the words “or its basis period”.
In section 99, in subsections (1) and (4), the words “or its basis period”.
In section 101, in subsections (2) and (6) to (8), the words “or its basis period”.
In section 121(4), the words “or its basis period” and the words “or, as the case may be, its basis period”.
In section 124(3), the words “or its basis period”.
In section 126(2), the words “or its basis period”, in each place where they occur.
In section 128(1), the words “or its basis period”.
In section 129(3), the words “or the basis periods for which”.
In section 134(1), the words from “but where a writing-down allowance” to the end.
In section 138(7), the words “or its basis period”.
In section 148(7), the words “or its basis period”.
In section 159, in subsections (4) and (6), the words “or its basis period”.
In section 159A(4), the words “or its basis period”.
1991 c. 31.The Finance Act 1991.In section 72(8), the words “383(6), (7) and (8)”.
1994 c. 9.The Finance Act 1994.In section 118(6), the words “or its basis period”.

(25) Lloyd’s underwriters

ChapterShort titleExtent of repeal
(1)

The repeals in the Income and Corporation Taxes Act 1988 and in section 183 of the Finance Act 1993 have effect in accordance with section 228(4) of this Act.

(2)

The repeal in section 171 of the Finance Act 1993 has effect in accordance with paragraph 1(3)(b) of Schedule 21 to this Act.

(3)

The repeals in section 179 of the Finance Act 1993 have effect in accordance with paragraph 6(3) of that Schedule.

(4)

The repeals in section 182 of the Finance Act 1993 have effect in accordance with paragraph 7(2) of that Schedule.

(5)

The repeal in paragraph 13(1) of Schedule 20 to the Finance Act 1993 has effect in accordance with paragraph 16(3) of that Schedule.

(6)

The other repeals have effect in accordance with section 228(3) of this Act.

1988 c. 1.The Income and Corporation Taxes Act 1988.Section 627.
Section 641(2).
1993 c. 34.The Finance Act 1993.Section 171(3).
In section 179, in subsection (2), the words “to subsection (3) below and”, and subsection (3).
In section 182, subsections (2) to (4).
Section 183(3).
In section 184(1), the words “or the managing agent of a syndicate of which he is a member”.
In Schedule 19, Part II.
In Schedule 20, in paragraph 13(1), the words from “and a transfer” to the end.

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