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Finance (No. 2) Act 2005

Status:

This is the original version (as it was originally enacted).

  1. Introductory Text

  2. Part 1 Value added tax

    1. 1.Goods subject to warehousing regime: place of acquisition or supply

    2. 2.Cars: determination of consideration for fuel supplied for private use

    3. 3.Credit for, or repayment of, overstated or overpaid VAT

    4. 4.Section 3: consequential and supplementary provision

    5. 5.Reverse charge: gas and electricity valuation

    6. 6.Disclosure of value added tax avoidance schemes

  3. Part 2 Income tax, corporation tax and capital gains tax

    1. Chapter 1 Personal taxation

      1. Social security pension lump sums

        1. 7.Charge to income tax on lump sum

        2. 8.Meaning of “applicable year of assessment” in section 7

        3. 9.Interpretation and commencement

        4. 10.Consequential amendments

      2. Gift aid

        1. 11.Donations to charity by individuals

      3. Employee securities

        1. 12.Employee securities: anti-avoidance

    2. Chapter 2 Scientific research organisations

      1. 13.Corporation tax exemption for organisations

      2. 14.Income tax deduction for payments to organisations

      3. 15.Corporation tax deduction for payments to organisations

    3. Chapter 3 Authorised investment funds etc

      1. 16.Open-ended investment companies

      2. 17.Authorised unit trusts and open-ended investment companies

      3. 18.Section 17(3): specific powers

      4. 19.Section 17: commencement and procedure

      5. 20.Unauthorised unit trusts: chargeable gains

      6. 21.Unit trusts: treatment of accumulation units

      7. 22.Section 349B ICTA: exemption for distributions to PEP/ISA managers

      8. 23.Offshore funds

    4. Chapter 4 Avoidance involving tax arbitrage

      1. 24.Deduction cases

      2. 25.Rules relating to deductions

      3. 26.Receipts cases

      4. 27.Rule as to qualifying payment

      5. 28.Notices under sections 24 and 26

      6. 29.Amendments relating to company tax returns

      7. 30.Interpretation

      8. 31.Commencement

    5. Chapter 5 Chargeable gains

      1. Residence, location of assets etc

        1. 32.Temporary non-residents

        2. 33.Trustees both resident and non-resident in a year of assessment

        3. 34.Location of assets etc

      2. Miscellaneous

        1. 35.Exercise of options etc

        2. 36.Notional transfers within a group

    6. Chapter 6 Miscellaneous

      1. Accounting practice and related matters

        1. 37.Accounting practice and related matters

      2. Financial avoidance etc

        1. 38.Charges on income for the purposes of corporation tax

        2. 39.Avoidance involving financial arrangements

      3. Financing of companies etc

        1. 40.Transfer pricing and loan relationships

      4. Intangible fixed assets

        1. 41.Intangible fixed assets

      5. Insurance companies etc

        1. 42.Insurance companies etc

      6. International matters

        1. 43.Implementation of the amended Parent/Subsidiary Directive

        2. 44.Territories with a lower level of taxation: reduction of amount of local tax

      7. Miscellaneous

        1. 45.Lloyd’s underwriters: assessment and collection of tax

        2. 46.Energy Act 2004 and Health Protection Agency Act 2004

  4. Part 3 Stamp taxes

    1. Stamp duty land tax

      1. 47.E-conveyancing

      2. 48.Disclosure of information contained in land transaction returns

      3. 49.Miscellaneous amendments

    2. Stamp duty and stamp duty reserve tax

      1. 50.Power to extend exceptions relating to recognised exchanges

  5. Part 4 European company statute

    1. 51.Chargeable gains

    2. 52.Intangible fixed assets

    3. 53.Intangible fixed assets: permanent establishment in another member State

    4. 54.Loan relationships

    5. 55.Derivative contracts

    6. 56.Capital allowances

    7. 57.Stamp duty reserve tax

    8. 58.Bearer instruments: stamp duty and stamp duty reserve tax

    9. 59.Consequential amendments

    10. 60.Residence

    11. 61.Continuity for transitional purposes

    12. 62.Groups

    13. 63.Groups: intangible fixed assets

    14. 64.Held-over gains

    15. 65.Restrictions on set-off of pre-entry losses

  6. Part 5 Miscellaneous matters

    1. 66.Vehicle excise duty: late renewal supplements

    2. 67.Reorganisation of water and sewerage services in Northern Ireland

    3. 68.EU Mutual Assistance Directive: notifications

    4. 69.Abolition of statutory adjudicator for National Savings and Investments

  7. Part 6 Supplementary provisions

    1. 70.Repeals

    2. 71.Interpretation

    3. 72.Short title

  8. SCHEDULES

    1. SCHEDULE 1

      Disclosure of value added tax avoidance schemes

      1. 1.Introduction

      2. 2.Interpretative provisions

      3. 3.For paragraph 2 substitute— (1) For the purposes of this Schedule, a taxable person...

      4. 4.After paragraph 2 insert— Meaning of “non-deductible tax” (1) In this Schedule “non-deductible tax”, in relation to a...

      5. 5.Duty to notify Commissioners

      6. 6.In paragraph 7 (exemptions from duty to notify) in the...

      7. 7.Amount of penalty

      8. 8.Penalty assessments

    2. SCHEDULE 2

      Employee securities: anti-avoidance

      1. 1.Introductory

      2. 2.Rights under certain insurance contracts to be securities

      3. 3.Restricted securities

      4. 4.(1) Section 424 (employment-related securities which are not restricted securities...

      5. 5.(1) In section 428 (amount of charge under section 426),...

      6. 6.(1) In section 429 (exception from charge under section 426...

      7. 7.(1) After section 431A insert— Securities acquired for purpose of...

      8. 8.Convertible securities

      9. 9.(1) In section 436(a) (meaning of “convertible securities”), for “immediate...

      10. 10.(1) In section 440 (amount of charge under section 438),...

      11. 11.(1) In section 443 (exception from charge under section 438...

      12. 12.Securities acquired for less than market value

      13. 13.(1) In section 446R (exception from Chapter for certain company...

      14. 14.(1) In section 446U(1) (discharge of notional loan), insert at...

      15. 15.(1) After section 446U insert— Pre-acquisition avoidance cases (1) Sections 446S to 446U do not apply if the...

      16. 16.(1) Section 698 (PAYE: special charges on employment-related securities) is...

      17. 17.Post-acquisition benefits from securities

      18. 18.(1) Section 447 (charge on other chargeable benefits from securities)...

      19. 19.(1) In section 449 (exception from charge under section 447...

      20. 20.Corporation tax relief: minor and consequential amendments

    3. SCHEDULE 3

      Qualifying scheme

      1. Part 1 Introductory

        1. 1.For the purposes of section 24 a scheme is a...

      2. Part 2 Schemes involving hybrid entities

        1. 2.A scheme falls within this Part if a party to...

        2. 3.(1) An entity is a hybrid entity if—

      3. Part 3 Schemes involving hybrid effect

        1. 4.Schemes involving hybrid effect

        2. 5.Instruments of alterable character

        3. 6.Shares subject to conversion

        4. 7.Securities subject to conversion

        5. 8.Debt instruments treated as equity

      4. Part 4 Schemes involving hybrid effect and connected persons

        1. 9.Schemes involving hybrid effect and connected persons

        2. 10.Scheme including issue of shares not conferring a qualifying beneficial entitlement

        3. 11.Scheme including transfer of rights under a security

        4. 12.Interpretation

    4. SCHEDULE 4

      Chargeable gains: location of assets etc

      1. Part 1 Location of assets

        1. 1.Exceptions from sections 713 and 714 of ICTA

        2. 2.Foreign securities: delayed remittances

        3. 3.Designated international organisations

        4. 4.Location of assets: general

        5. 5.Location of certain intangible assets

        6. 6.Location of assets: interests of co-owners

      2. Part 2 Minor amendments: non-resident company with UK permanent establishment

        1. 7.Computation of losses

        2. 8.Reallocation within group of gain or loss accruing under section 179

        3. 9.Exemptions for disposals by companies with substantial shareholding

      3. Part 3 Commencement

        1. 10.Commencement

    5. SCHEDULE 5

      Chargeable gains: options

      1. Part 1 Application of market value rule in case of exercise of option

        1. 1.Application of market value rule in case of exercise of option

        2. 2.Application of market value rule in case of exercise of option: exception

      2. Part 2 Miscellaneous amendments relating to share options etc

        1. 3.Shares acquired on same day: election for alternative treatment

        2. 4.Employment-related securities options

        3. 5.Interpretation of TCGA 1992

      3. Part 3 Commencement

        1. 6.Commencement

    6. SCHEDULE 6

      Accounting practice and related matters

      1. 1.Adjustment on change of accounting basis

      2. 2.(1) In section 227 of ITTOIA 2005 (adjustment on change...

      3. 3.Meaning of “statutory insolvency arrangement”

      4. 4.Minor corrections

      5. 5.Deemed release of liability on impaired debt becoming held by connected company

      6. 6.Adjustment on change to international accounting standards: bad debt debits formerly disallowed

      7. 7.Loan relationships with embedded derivatives

      8. 8.(1) In section 116(8A) of TCGA 1992 (reorganisations, conversions and...

      9. 9.Exchange gains and losses

      10. 10.In section 103 of FA 1996 (loan relationships: general interpretation),...

      11. 11.In paragraph 54 of Schedule 26 to FA 2002 (derivative...

    7. SCHEDULE 7

      Avoidance involving financial arrangements

      1. 1.Rent factoring

      2. 2.Section 730: restriction to income consisting of distributions in respect of company shares etc

      3. 3.Change in ownership of company with investment business

      4. 4.Transfers of rights to receive annual payments

      5. 5.Disposals and acquisitions of company loan relationships with or without interest

      6. 6.Manufactured interest and the accrued income scheme

      7. 7.Consideration due after time of disposal: creditor relationships etc

      8. 8.Corporate strips: manipulation of price: associated payment giving rise to loss

      9. 9.Transactions within a group: shares subject to third party obligations

      10. 10.Shares treated as loan relationships

      11. 11.Related transactions in relation to right to receive manufactured interest

      12. 12.Money debts etc not arising from lending of money: discounts and profits from transactions

      13. 13.Meaning of “commercial rate of interest”

      14. 14.Capital redemption policies: removal of exclusion from loan relationships computations

      15. 15.Deemed disposal of assets and liabilities on company ceasing to be resident in UK etc

      16. 16.Transactions not at arm’s length: exceptions relating to groups of companies

      17. 17.Continuity of treatment of groups etc: treatment of transferee company

      18. 18.Transferee leaving group after replacing transferor as party to loan relationship

      19. 19.Avoidance involving repos or stock lending

      20. 20.Capital redemption policies: computations on the I minus E basis

      21. 21.Relevant discounted securities: corporate strips

      22. 22.Transactions within groups: treatment of transferee company

      23. 23.Transactions within groups: fair value accounting

      24. 24.Transferee leaving group after replacing transferor as party to derivative contract

      25. 25.Deeply discounted securities: corporate strips

    8. SCHEDULE 8

      Financing of companies etc: transfer pricing and loan relationships

      1. 1.Amendments of Schedule 28AA to ICTA

      2. 2.Amendments of Schedule 9 to FA 1996

      3. 3.(1) Paragraph 18 of that Schedule (discounted securities of close...

      4. 4.Commencement and transitional provisions

    9. SCHEDULE 9

      Insurance companies etc

      1. 1.Expenses of insurance companies

      2. 2.Interpretative provisions relating to insurance companies

      3. 3.Amendment of Chapter 1 of Part 12 of ICTA etc

      4. 4.Apportionment of income and gains

      5. 5.Section 432B apportionment: participating funds

      6. 6.Transfers of business: deemed periodical return

      7. 7.Transfers of business: modification of section 444AC of ICTA

      8. 8.Transfers of business: transferor shares are assets of transferee’s long-term insurance fund etc

      9. 9.Equalisation reserves for general business

      10. 10.Unappropriated surplus on valuation

      11. 11.Relevant financial reinsurance contracts

      12. 12.Receipts to be taken into account

      13. 13.Meaning of “brought into account”

      14. 14.Changes in recognised accounts: attribution of amounts carried forward under s.432F of ICTA

      15. 15.Charge of certain receipts of basic life assurance business

      16. 16.Corporation tax: policy holders' fraction of profits

      17. 17.Overseas life insurance companies

      18. 18.Meaning of “pension business”

      19. 19.Miscellaneous references to “class” of business

      20. 20.Transfers of business: references to accounting period ending with day of transfer

    10. SCHEDULE 10

      Stamp duty land tax: miscellaneous amendments

      1. Part 1 Amendments coming into force in accordance with paragraph 16

        1. 1.Introduction

        2. 2.Transfer of rights: exclusion of transaction to which alternative finance provisions apply

        3. 3.Group relief

        4. 4.In paragraph 3 of Schedule 7 (withdrawal of group relief)—...

        5. 5.In paragraph 4 of Schedule 7 (cases in which group...

        6. 6.After paragraph 4 of Schedule 7 insert— Withdrawal of group...

        7. 7.In Schedule 17A (further provisions relating to leases) in paragraph...

        8. 8.Reconstruction and acquisition reliefs

        9. 9.In paragraph 9 of Schedule 7 (withdrawal of reconstruction or...

        10. 10.Withdrawal of money etc from partnership after transfer of chargeable interest

        11. 11.Grant of lease to bare trustee

        12. 12.In paragraph 11 of Schedule 17A (cases where assignment of...

        13. 13.Variation of lease

        14. 14.Loan or deposit in connection with grant or assignment of lease

        15. 15.In section 80 (adjustment where contingency ceases or consideration is...

        16. 16.Commencement

      2. Part 2 Amendments coming into force in accordance with paragraph 22

        1. 17.Introduction

        2. 18.Transfers involving public bodies

        3. 19.Group relief: avoidance arrangements

        4. 20.Acquisition relief: avoidance arrangements

        5. 21.Stamp duty on transfers of partnership interests

        6. 22.Commencement

    11. SCHEDULE 11

      Repeals

      1. Part 1 Value added tax

      2. Part 2 Income tax, corporation tax and capital gains tax

      3. Part 3 Stamp taxes

      4. Part 4 European company statute

      5. Part 5 Miscellaneous matters

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