Finance Act 2006

  1. Introductory Text

  2. Part 1 Excise duties

    1. Tobacco products duty

      1. 1.Rates of tobacco products duty

      2. 2.Tobacco products duty: evasion

    2. Alcoholic liquor duties

      1. 3.Rate of duty on beer

      2. 4.Rates of duty on wine and made-wine

      3. 5.Repeal of provisions of ALDA 1979 of no practical utility etc

    3. Hydrocarbon oil duties

      1. 6.Rates until 1st September 2006

      2. 7.Rates from 1st September 2006

      3. 8.Road vehicles

    4. Betting and gaming duties

      1. 9.General betting duty: gaming machines

      2. 10.Rates of gaming duty

    5. Amusement machine licence duty

      1. 11.Definition of “gaming machine”

      2. 12.Classes of machine and rates of duty

    6. Vehicle excise duty

      1. 13.Rates

      2. 14.Reduced pollution certificates

      3. 15.Late renewal supplement

  3. Part 2 Value added tax

    1. Gaming machines

      1. 16.Gaming machines

    2. Land

      1. 17.Buildings and land

    3. Imported works of art etc

      1. 18.Value of imported works of art etc: auctioneer’s commission

    4. Avoidance and fraud

      1. 19.Missing trader intra-community fraud

      2. 20.Power to inspect goods

      3. 21.Directions to keep records where belief VAT might not be paid

      4. 22.Treatment of credit vouchers

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

    1. Chapter 1 Income tax and corporation tax: charge and rate bands

      1. Income tax

        1. 23.Charge and rates for 2006-07

      2. Corporation tax

        1. 24.Charge and main rate for financial year 2007

        2. 25.Small companies' rate and fraction for financial year 2006

        3. 26.Abolition of corporation tax starting rate and non-corporate distribution rate

    2. Chapter 2 Reliefs for business

      1. Group relief

        1. 27.Group relief where surrendering company not resident in UK

      2. Research and development

        1. 28.Relief for research and development: subjects of clinical trials

        2. 29.Claims for relief for research and development

      3. Capital allowances

        1. 30.Temporary increase in amount of first-year allowances for small enterprises

    3. Chapter 3 Films and sound recordings

      1. Introductory

        1. 31.Meaning of “film” and related expressions

        2. 32.Meaning of “film production company”

        3. 33.Meaning of “film-making activities” etc

        4. 34.Meaning of “production expenditure” and related expressions

        5. 35.Meaning of “UK expenditure”

        6. 36.Meaning of “qualifying co-production” and “co-producer”

      2. Taxation of activities of film production company

        1. 37.Taxation of activities of film production company

      3. Film tax relief

        1. 38.Films qualifying for film tax relief

        2. 39.Conditions of relief: intended theatrical release

        3. 40.Conditions of relief: British film

        4. 41.Conditions of relief: UK expenditure

        5. 42.Film tax relief: further provisions

      4. Film losses

        1. 43.Films: restriction on use of losses while film in production

        2. 44.Films: use of losses in later periods

        3. 45.Films: terminal losses

      5. Films: withdrawal of existing reliefs

        1. 46.Films: withdrawal of existing reliefs (corporation tax)

        2. 47.Films: withdrawal of existing reliefs (income tax)

      6. Corporation tax treatment of sound recordings

        1. 48.Sound recordings: revenue nature of expenditure

        2. 49.Sound recordings: allocation of expenditure

        3. 50.Sound recordings: interpretation

      7. Supplementary provisions

        1. 51.Corporation tax: films and sound recordings as intangible fixed assets

        2. 52.Films: application of provisions to certain films already in production

        3. 53.Films and sound recordings: commencement and power to alter dates

    4. Chapter 4 Charities

      1. 54.Transactions with substantial donors

      2. 55.Non-charitable expenditure

      3. 56.Trade profits

      4. 57.Gift aid relief for companies wholly owned by one or more charities

      5. 58.Extension of restrictions on gift aid payments by close companies

    5. Chapter 5 Personal taxation

      1. Cars

        1. 59.Cars with a CO2 emissions figure

      2. Mobile telephones and computers

        1. 60.Mobile telephones

        2. 61.Computer equipment

      3. Eye care

        1. 62.Exemption for employees' eye tests and special glasses

      4. Vouchers and tokens

        1. 63.Power to exempt use of vouchers or tokens to obtain exempt benefits

      5. Holocaust victims

        1. 64.Payments to or in respect of victims of National-Socialist persecution

    6. Chapter 6 The London Olympic Games and Paralympic Games

      1. 65.London Organising Committee

      2. 66.Section 65: supplementary

      3. 67.International Olympic Committee

      4. 68.Competitors and staff

    7. Chapter 7 Chargeable gains

      1. Capital losses

        1. 69.Restriction on a company’s allowable losses

        2. 70.Restrictions on companies buying losses or gains

        3. 71.Other avoidance involving losses accruing to companies

        4. 72.Repeal of s.106 of TCGA 1992

      2. Insurance policies and annuities

        1. 73.Policies of insurance and non-deferred annuities

      3. Capital gains tax

        1. 74.Exception to “bed and breakfasting” rules etc

    8. Chapter 8 Avoidance: miscellaneous

      1. Film partnerships

        1. 75.Interest relief: film partnership

      2. Financial instruments

        1. 76.Avoidance involving financial arrangements

      3. Intangible fixed assets

        1. 77.Treating assets as “existing assets” etc

      4. International matters

        1. 78.Controlled foreign companies and treaty non-resident companies

        2. 79.Transfer of assets abroad

      5. Pre-owned assets

        1. 80.Restriction of exemption from charge to income tax

    9. Chapter 9 Miscellaneous provisions

      1. Leasing of plant or machinery

        1. 81.Leases of plant or machinery

      2. Sale of lessors

        1. 82.Sale etc of lessor companies etc

        2. 83.Restrictions on use of losses etc: leasing partnerships

        3. 84.Disposal of plant or machinery subject to lease where income retained

        4. 85.Restrictions on effect of elections under section 266 of CAA 2001

      3. Insurance companies and policyholders

        1. 86.Insurance companies

        2. 87.Qualifying policies: altering method for calculating benefits

      4. Settlements

        1. 88.Settlements, etc: chargeable gains

        2. 89.Settlements, etc: income

        3. 90.Special trusts tax rates not to apply to social landlords' service charge income

      5. Investment reliefs

        1. 91.Venture capital schemes

      6. Employment-related securities

        1. 92.Avoidance using options etc

        2. 93.Corporation tax relief for shares acquired under EMI option

      7. PAYE

        1. 94.PAYE: retrospective notional payments

      8. Alternative finance arrangements

        1. 95.Profit share agency

        2. 96.Diminishing shared ownership

        3. 97.Beneficial loans to employees

        4. 98.Regulations

      9. Nuclear decommissioning

        1. 99.Amendment of section 29 of the Energy Act 2004

        2. 100.Amendment of section 30 of the Energy Act 2004

      10. Accounting practice

        1. 101.Securitisation companies

        2. 102.Accountancy change: spreading of adjustment

  5. Part 4 Real Estate Investment Trusts

    1. Introduction

      1. 103.Real Estate Investment Trusts

      2. 104.Property rental business

      3. 105.Other key concepts

      4. 106.Conditions for company

      5. 107.Conditions for tax-exempt business

      6. 108.Conditions for balance of business

    2. Entering Real Estate Investment Trust Regime

      1. 109.Notice

      2. 110.Duration

      3. 111.Effects of entry

      4. 112.Entry charge

    3. Assets etc

      1. 113.Ring-fencing of tax-exempt business

      2. 114.Maximum shareholding

      3. 115.Profit: financing-cost ratio

      4. 116.Minor or inadvertent breach

      5. 117.Cancellation of tax advantage

      6. 118.Funds awaiting re-investment

    4. Profits

      1. 119.Corporation tax

      2. 120.Calculation of profits

      3. 121.Distributions: liability to tax

      4. 122.Distributions: deduction of tax

      5. 123.Attribution of distributions

    5. Capital gains

      1. 124.Corporation tax

      2. 125.Movement of assets out of ring-fence

      3. 126.Movement of assets into ring-fence

      4. 127.Interpretation

    6. Leaving Real Estate Investment Trust Regime

      1. 128.Termination by notice: company

      2. 129.Termination by notice: Commissioners

      3. 130.Automatic termination for breach of requirement

      4. 131.Effects of cessation

      5. 132.Early exit by notice

      6. 133.Early exit

    7. Groups

      1. 134.Group Real Estate Investment Trusts

      2. 135.Transfer within group

      3. 136.Availability of group reliefs

    8. Miscellaneous

      1. 137.Insurance companies

      2. 138.Joint ventures

      3. 139.Manufactured dividends

      4. 140.Penalties for failure to give notice, etc

      5. 141.Effect of deemed disposal and re-acquisition

      6. 142.Interpretation

      7. 143.Housing investment trusts: repeal

    9. General

      1. 144.Regulations

      2. 145.Commencement

  6. Part 5 Oil

    1. New basis for determining market value

      1. 146.New basis for determining the market value of oil

      2. 147.Section 146: commencement and transitional provisions

    2. Attribution of blended crude oil

      1. 148.Crude oil: power to make regulations

    3. Nomination scheme

      1. 149.Nomination scheme

      2. 150.Amendment of Schedule 10 to FA 1987

      3. 151.Nomination excesses and corporation tax

    4. Ring fence trades

      1. 152.Increase in rate of supplementary charge

      2. 153.Election to defer capital allowances

      3. 154.Ring fence expenditure supplement

  7. Part 6 Inheritance tax

    1. Future rates and bands

      1. 155.Rates and rate bands for 2008-09 and 2009-10

    2. Trusts

      1. 156.Rules for trusts etc

      2. 157.Purchase of interests in foreign trusts

  8. Part 7 Pensions

    1. 158.Taxable property held by investment-regulated pension schemes

    2. 159.Recycling of lump sums

    3. 160.Inheritance tax

    4. 161.Miscellaneous

  9. Part 8 Stamp taxes

    1. Stamp duty and stamp duty land tax: thresholds

      1. 162.Raising of thresholds

    2. Stamp duty land tax

      1. 163.Partnerships

      2. 164.Leases

      3. 165.Reallocation of trust property as between beneficiaries

      4. 166.Unit trust schemes

      5. 167.Demutualisation of insurance companies

      6. 168.Alternative finance

    3. Stamp duty

      1. 169.Reliefs for certain company acquisitions

  10. Part 9 Miscellaneous provisions

    1. Landfill tax

      1. 170.Rate of landfill tax

    2. Climate change levy

      1. 171.Climate change levy: rates

      2. 172.Abolition of half-rate supplies etc

    3. International tax arrangements

      1. 173.International tax enforcement arrangements

      2. 174.Arrangements under section 173: information powers

      3. 175.Arrangements under section 173: recovery of debts

      4. 176.Double taxation agreements: procedure

    4. Disclosure of information

      1. 177.Disclosure of information

  11. Part 10 Supplementary provisions

    1. 178.Repeals

    2. 179.Interpretation

    3. 180.Short title

    1. Schedule 1

      Group relief where surrendering company not resident in UK

      1. Part 1 Amendments of Chapter 4 of Part 10 of ICTA

      2. Part 2 Amendments of other enactments

      3. Part 3 Commencement

    2. Schedule 2

      Relief for research and development: subjects of clinical trials

    3. Schedule 3

      Claims for relief for research and development

    4. Schedule 4

      Taxation of activities of film production company

    5. Schedule 5

      Film tax relief: further provisions

      1. Part 1 Entitlement to film tax relief

      2. Part 2 Certification of British films for purposes of film tax relief

      3. Part 3 Consequential amendments

      4. Part 4 Provisional entitlement to relief

    6. Schedule 6

      Avoidance involving financial arrangements

    7. Schedule 7

      Transfer of assets abroad

    8. Schedule 8

      Long funding leases of plant or machinery

      1. Part 1 Capital allowances

      2. Part 2 Corporation tax

      3. Part 3 Income tax

      4. Part 4 Commencement and transitional provisions

    9. Schedule 9

      Leases of plant or machinery: miscellaneous amendments

    10. Schedule 10

      Sale etc of lessor companies etc

      1. Part 1 Introduction

      2. Part 2 Leasing business carried on by a company alone

      3. Part 3 Leasing business carried on by a company in partnership

      4. Part 4 Miscellaneous

    11. Schedule 11

      Insurance companies

    12. Schedule 12

      Settlements: amendment of TCGA 1992 etc

      1. Part 1 Settlors, trustees and settlements

      2. Part 2 Sub-fund settlements

      3. Part 3 Consequential and minor amendments

    13. Schedule 13

      Settlements: amendments to ICTA and ITTOIA 2005 etc

      1. Part 1 Principal amendments

      2. Part 2 Minor and consequential amendments

    14. Schedule 14

      Investment reliefs: venture capital schemes

      1. Part 1 Limits on gross assets of issuers of shares or securities

      2. Part 2 Rate of relief for investments in venture capital trusts

      3. Part 3 Enterprise investment scheme: maximum subscriptions and carry-back of relief

      4. Part 4 Lengthening of periods applicable to venture capital trusts

      5. Part 5 Venture capital trusts: meaning of “investments”

    15. Schedule 15

      Accountancy change: spreading of adjustment

      1. Part 1 Income tax

      2. Part 2 Corporation tax

    16. Schedule 16

      Real Estate Investment Trusts: excluded business and income

      1. Part 1 Classes of business

      2. Part 2 Classes of income or profit

      3. Part 3 Power to amend

    17. Schedule 17

      Group Real Estate Investment Trusts: modifications

    18. Schedule 18

      Oil taxation: market value of oil

      1. Part 1 Amendments of the Oil Taxation Act 1975

      2. Part 2 Amendments of other enactments

    19. Schedule 19

      Schedule to be inserted as Schedule 19C to ICTA

    20. Schedule 20

      Inheritance tax: rules for trusts etc

      1. Part 1 “Trusts for bereaved minors”, “age 18-to-25 trusts” and “accumulation and maintenance” trusts

      2. Part 2 Interests in possession: when settled property is part of beneficiary’s estate

      3. Part 3 Related amendments in IHTA 1984

      4. Part 4 Related amendments in TCGA 1992

      5. Part 5 Property subject to a reservation

      6. Part 6 Conditional exemption: relief from charges

    21. Schedule 21

      Taxable property held by investment-regulated pension schemes

    22. Schedule 22

      Pension schemes: inheritance tax

    23. Schedule 23

      Pension schemes etc: miscellaneous

    24. Schedule 24

      Stamp duty land tax: amendments of Schedule 15 to FA 2003

    25. Schedule 25

      Stamp duty land tax: amendments of Schedule 17A to FA 2003

    26. Schedule 26

      Repeals

      1. Part 1 Excise duties

      2. Part 2 Value added tax

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

      4. Part 4 Real Estate Investment Trusts

      5. Part 5 Oil

      6. Part 6 Inheritance tax

      7. Part 7 Stamp taxes

      8. Part 8 Miscellaneous provisions