PART I

Customs and Excise

Duties on spirits, beer, wine, made-wine and cider
1
1
In section 5 of the Alcoholic Liquor Duties Act 1979 (excise duty on spirits) for the words from "at the rates" to the end of the section there shall be substituted the words " at the rate of £14.47 per litre of alcohol in the spirits ".
2
In section 36 of that Act (excise duty on beer) for "£18.00 " and " £0.60 " there shall be substituted " £20.40 " and " £0.68 " respectively.
3
For the provisions of Schedule 1 to that Act (rates of excise duty on wine) there shall be substituted the provisions of Schedule 1 to this Act.
4
For the provisions of Schedule 2 to that Act (rates of excise duty on made-wine) there shall be substituted the provisions of Schedule 2 to this Act.
5
In section 62(1) of that Act (excise duty on cider) for " £7.20 " there shall be substituted " £8.16 ".
6
This section shall be deemed to have come into force on 10th March 1982.

Tobacco products
2
1
For the Table in Schedule 1 to the Tobacco Products Duty Act 1979 there shall be substituted—

TABLE
1. Cigarettes | An amount equal to 21 per cent, of the retail price plus £20.68 per thousand cigarettes.
2. Cigars | £3900 per kilogram.
3. Hand-rolling tobacco | £33.65 per kilogram.
4. Other smoking tobacco and chewing tobacco | £24.95 per kilogram
.
2
This section shall be deemed to have come into force on 12th March 1982.

Hydrocarbon oil, etc.
3
1
In subsection (1) of section 6 of the Hydrocarbon Oil Duties Act 1979 (rates of duty on hydrocarbon oil) for the words "£0 1382 a litre" (light oil) there shall be substituted the words " £0.1554 a litre " and for the words "£0.1191 a litre" (heavy oil) there shall be substituted the words " £0.1325 a litre ".
2
In Schedule 1 to that Act (vehicles which are not road vehicles within the meaning of that Act) in sub-paragraph (a) of paragraph 2 (exclusions by reference to exemptions from duty under the Vehicles (Excise) Act 1971) for the word " or " there shall be substituted the words " section 4(1 )(i) of that Act (gritting vehicles) " and at the end of that sub-paragraph there shall be added the words " or section 7(3) of that Act (snow ploughs etc.) ".
3
Subsection (1) above shall be deemed to have come into force at 6 o'clock in the evening of 9th March 1982.

Aviation gasoline
4
1
The Hydrocarbon Oil Duties Act 1979 shall have effect subject to the following modifications.
2
In section 6 (rates of duty on hydrocarbon oils)—
a
in subsection (1) for the words "subsection (2)" there shall be substituted the words " subsections (2) and (3) "; and
b
at the end of the section there shall be inserted the following subsections—
3
In the case of aviation gasoline, the duty of excise charged under subsection (1) above shall be at one half of the rate specified in that subsection in relation to light oil.
4
In this Act " aviation gasoline " means light oil which—
a
is specially produced as fuel for aircraft; and
b
is not normally used in road vehicles ; and
c
is delivered for use solely as fuel for aircraft.
3
In section 24 (power to control use of duty-free oil etc.) in subsection (1) after the words " for the purposes of " there shall be inserted the words " section 6(3) ".
4
In subsection (1) of section 27 (interpretation) after the words " In this Act" there shall be inserted the words—
- " aviation gasoline " has the meaning given by section 6(4) above
.
5
In Part I of Schedule 3 (regulations under section 21 relating to hydrocarbon oil) after paragraph 10 there shall be inserted the following paragraphs—
10A
Amending the definition of " aviation gasoline " in subsection (4) of section 6 of this Act.
10B
Conferring power to require information relating to the supply or use of aviation gasoline to be given by producers, dealers and users.
10C
Requiring producers and users of and dealers in aviation gasoline to keep and produce records relating to aviation gasoline.
6
In Schedule 4 (regulations under section 24) after paragraph 18 there shall be inserted the following paragraphs—
18A
Prohibiting the use of aviation gasoline otherwise than as a fuel for aircraft.
18B
Prohibiting the taking of aviation gasoline into fuel tanks for engines other than aircraft engines.
7
Subsections (1) and (2) above shall be deemed to have come into force at 6 o'clock in the evening of 9th March 1982.

Vehicles excise duty: Great Britain
5
1
The Vehicles (Excise) Act 1971 shall be amended as follows.
2
For the provisions of Part II of Schedules 1 to 5 (annual rates of duty) there shall be substituted the provisions set out in Schedule 3 to this Act.
3
In subsection (5) of section 16 (rates of duty for trade licences), including that subsection as set out in paragraph 12 of Part I of Schedule 7, for " £35 " and " £7 " there shall be substituted respectively " £40 " and " £8 ".
4
For Schedule 4 (annual rates of duty on goods vehicles) there shall be substituted the provisions of Part A of Schedule 5 to this Act (which shall, accordingly, have effect as Schedule 4 to the Act of 1971).
5
In section 2(1) (duration of licences), for paragraph (c) there shall be substituted the following paragraph—
c
in the case of any vehicle which is authorised to be used on roads by virtue of an order made under section 42(1) of the Road Traffic Act 1972 and—
i
in respect of which duty is chargeable by reference to an annual rate applicable in accordance with the provisions of Schedule 3 to this Act; or
ii
which is a goods vehicle the unladen weight of which exceeds eleven tons ;
for any period of seven consecutive days (such a licence being referred to in this Act as a ' seven day licence') ;
6
In section 38(4) (meaning of " unladen weight"), after the word " Act" there shall be inserted the words ", except in Schedule 4,
; and in Schedule 6 (provisions as to the computation of unladen weights) paragraphs 3 and 5 shall cease to have effect and in paragraph 4 for the words " Schedules 3 and 4 " there shall be substituted the words " Schedule 3 ".
7
Subsections (2) and (3) above apply in relation to licences taken out after 9th March 1982 and subsections (4) to (6) above apply in relation to licences first having effect after 30th September 1982.

Vehicles excise duty: Northern Ireland
6
1
The Vehicles (Excise) Act (Northern Ireland) 1972 shall be amended as follows.
2
For the provisions of Part II of Schedules 1 to 5 (annual rates of duty) there shall be substituted the provisions set out in Schedule 4 to this Act.
3
In subsection (6) of section 16 (rates of duty for trade licences), including that subsection as set out in paragraph 12 of Part I of Schedule 9, for " £35 " and " £7 " there shall be substituted respectively " £40 " and " £8 ".
4
For Schedule 4 (annual rates of duty on goods vehicles) there shall be substituted the provisions of Part A of Schedule 5 to this Act, modified in accordance with Part B of that Schedule; and Part A, as so modified, shall accordingly have effect as Schedule 4 to the Act of 1972.
5
In section 2—
a
in subsection (1) (duration of licences), for paragraph (c) there shall be substituted the following paragraphs—
c
in the case of a vehicle which is chargeable with duty by reference to the annual rate applicable in accordance with Schedule 2, being a hackney carriage having a seating capacity for more than twenty persons and used only during such holiday seasons as may be prescribed, for any period of seven consecutive days ;
d
in the case of any vehicle which is authorised to be used on roads by virtue of an Order under Article 29(3) of the Road Traffic (Northern Ireland) Order 1981 and—
i
in respect of which duty is chargeable by reference to an annual rate applicable in accordance with the provisions of Schedule 3 to this Act; or
ii
which is a goods vehicle the unladen weight of which exceeds eleven tons ; for any period of seven consecutive days.
;
b
after subsection (1) there shall be inserted the following subsection—
1A
In this Act a licence taken out under paragraph (c) or (d) of subsection (1) is referred to as a ' seven day licence'.
6
In section 35(1) (interpretation), in the definition of " seven day licence " for the words " section 2(1)(c) " there shall be substituted the words " section 2(1A) ".
7
In section 35(4) (meaning of " unladen weight"), after the word " Act" there shall be inserted the words " , except in Schedule 4, " ; and in Schedule 7 (provisions as to the computation of unladen weights) paragraphs 3 and 5 shall cease to have effect and in paragraph 4 for the words " Schedules 3 and 4 " there shall be substituted the words " Schedule 3 ".
8
Subsections (2) and (3) above apply in relation to licences taken out after 9th March 1982 and subsections (4) to (7) above apply in relation to licences first having effect after 30th September 1982.

Additional liability in relation to alteration of vehicle or its use
7
1
In the Vehicles (Excise) Act 1971 the following section shall be inserted after section 18—

Additional liability in relation to alteration of vehicle or its use.
18A
1
Where a person convicted of an offence under section 18 of this Act is the person by whom the vehicle in respect of which the offence was committed was kept at the time it was committed, the court shall, in addition to any penalty which it may impose under that section, order him to pay an amount (the " additional duty ") calculated in accordance with this section.
2
The additional duty shall, subject to subsections (7) and (8) below, be an amount equal to one three-hundred-and-sixty-fifth of the appropriate annual rate of duty for each day in the relevant period.
3
The following Cases are referred to in subsections (5) and (6) below—
- CASE A
Where:—
  1. at the time of the offence the vehicle in question had a plated weight (the " higher plated weight") which exceeds the plated weight (the " previous plated weight") which it had when the current licence was taken out; and
  2. the current licence was taken out at the rate of duty applicable to the previous plated weight.
- CASE B
Where—
  1. the vehicle in question is a tractor unit (with in the meaning of paragraph 15 of Schedule 4 to this Act);
  2. the current licence was taken out at a rate of duty applicable to the use of the vehicle only with semi-trailers having not less than two axles or, as the case may be, only with semi-trailers having not less than three axles; and
  3. the offence consisted in using the vehicle with a semi-trailer with a smaller number of axles than that mentioned in paragraph (b) above, in circumstances in which it was not treated by virtue of paragraph 14(2) of Schedule A to this Act as being licensed in accordance with the requirements of this Act.
- CASE C
Where—
  1. the current licence was taken out at the rate of duty applicable, by virtue of paragraph 8 of Schedule 4 to this Act, to a weight lower than the plated weight of the vehicle in question; and
  2. the offence consisted in using the vehicle in contravention of a condition imposed by virtue of paragraph 8(3) of Schedule 4.
- CASE D
Where the current licence was taken out at a rate of duty lower than that applicable to the vehicle in question by reference to its plated weight and the circumstances of the case do not bring it within Case A, B or C.
- CASE E
Where the current licence was taken out at a rate of duty lower than that at which duty was chargeable in respect of that condition or manner of use of the vehicle which constituted the offence and the circumstances of the case do not bring it within Case A, B, C or D.
4
In this section " current licence " means the licence in relation to which the offence was committed.
5
In this section " appropriate annual rate of duty " means the difference between the rate of duty at which the current licence was taken out and—
a
in Case A, the rate which would have been applicable had the current licence been taken out by reference to the higher plated weight;
b
in Case B, the rate which would have been applicable had the current licence been taken out by reference to that use of the vehicle which constituted the offence ;
c
in Case C, the rate which would have been applicable had the current licence been taken out by reference to the plated weight of the vehicle;
d
in Case D, the rate which would have been applicable had the current licence been taken out by reference to the plated weight of the vehicle; and
e
in Case E, the rate which would have been applicable had the current licence been taken out by reference to that condition or use of the vehicle which constituted the offence.
6
In this section ' relevant period' means the period ending with the day on which the offence was committed and beginning—
a
in relation to Case A, with the day on which the vehicle in question was plated with the higher plated weight; and
b
in relation to each of the other Cases, with the day on which the current licence first took effect.
7
Where the person convicted proves—
a
that throughout any day comprised in the relevant period he was not the keeper of the vehicle in question ;
b
that throughout any such day the vehicle in question was neither used nor kept by him on a public road and that he was exempt by virtue of section 10(2)(b) or (c) of this Act from liability under subsection (1) of that section in respect of that day;
c
that he had, before his conviction, paid the higher of the two rates of duty referred to in the relevant paragraph of subsection (5) above in respect of the vehicle for any such day, whether or not on a licence ; or
d
that throughout any such day the vehicle was not chargeable with duty ;
the additional duty shall be calculated as if that day were not comprised in the relevant period.
8
Where a person is convicted of more than one contravention of section 18 of this Act in respect of the same vehicle (whether or not in the same proceedings) the court shall, in calculating the additional duty payable in respect of any one of those offences, reduce the amount calculated in accordance with the preceding provisions of this section in relation to a particular period by the amount of the additional duty ordered to be paid under this section in relation to that period in respect of the other offence or, as the case may be, offences.
9
Except so far as it is proved to have fallen within some other description for the whole of any day comprised in the relevant period, the vehicle in question shall be taken for the purposes of this section to have belonged throughout the relevant period to that description of vehicle to which it belonged for the purposes of duty at the date of the offence.
10
Where, on a person's conviction of an offence under section 18 of this Act, an order is made under Part I of the Powers of Criminal Courts Act 1973 placing him on probation or discharging him absolutely or conditionally, this section shall apply as if the conviction were deemed to be a conviction for all purposes.
11
This section shall have effect subject to the provisions (applying with the necessary modifications) of any enactment relating to the imposition of fines by magistrates' courts, other than one conferring a discretion as to their amount; and any sum payable by virtue of an order under this section shall be treated as a fine, and the order as a conviction, for the purposes of Part III of the Magistrates' Courts Act 1980 (including any enactment having effect as if contained in that Part) and of any other enactment relating to the recovery or application of sums ordered to be paid by magistrates' courts.
12
In its application to Scotland, this section shall have effect as if for subsections (10) and (11) there were substituted the following subsections—
10
Where a person is convicted on indictment of, or is charged before a court of summary jurisdiction with, an offence under section 18 of this Act, and an order is made under section 182 or 383 of the Criminal Procedure (Scotland) Act 1975 discharging him absolutely, or under section 183 or 384 of that Act placing him on probation, this section shall apply as if the making of the order were a conviction for all purposes.
11
Any sum payable by virtue of an order under this section shall be treated as a fine imposed by a court of summary jurisdiction.
13
This section is subject to Schedule 7 to this Act.
.
2
In the Vehicles (Excise) Act (Northern Ireland) 1972, after section 18 there shall be inserted the section set out in subsection (1) above, modified as follows—
a
in subsection (1) for the word ' penalty' there shall be substituted the word ' fine ';
b
for any reference in subsections (3) and (5) to a plated weight there shall be substituted a reference to a relevant maximum weight or, as the case may be, a relevant maximum train weight;
c
in subsection (6)—
i
after the words ' ending with' there shall be inserted the words ' and including';
ii
in paragraph (a) after the word ' with' (where it first occurs) there shall be inserted the words ' and including ' and for the words ' plated with the higher plated weight' there shall be substituted the words ' rated at the higher relevant maximum weight or, as the case may be, the higher relevant maximum train weight'; and
iii
in paragraph (b) after the word ' with' there shall be inserted the words ' and including ';
d
in subsection (10) for the reference to Part I of the Powers of Criminal Courts Act 1973 there shall be substituted a reference to the Probation Act (Northern Ireland) 1950;
e
for subsection (11) there shall be substituted the following subsection—
11
A sum payable by virtue of any order made under this section by a court shall be recoverable as a sum adjudged to be paid by a conviction and treated for all purposes as a fine within the meaning of section 20 of the Administration of Justice Act (Northern Ireland) 1954.
;
f
for subsection (12) there shall be substituted the following subsection—
12
In this section " relevant maximum weight" and " relevant maximum train weight" have the same meaning as in Schedule 4.
; and
g
in subsection (13) for the reference to Schedule 7 there shall be substituted a reference to Schedule 9.
3
In Schedule 7 to the Act of 1971 (transitional provisions), the following paragraph shall be inserted after paragraph 17—
17A
Section 18A shall have effect as if—
a
in subsection (2) for the words " one three-hundred and-sixty-fifth " there were substituted the words " one twelfth " and for the words " day in the relevant period " there were substituted the words " calendar month or part of a calendar month in the relevant period " ;
b
in subsection (7)—
i
in paragraph (a), for the word " day" there were substituted the words ' month or part of a month ';
ii
in paragraph (b), for the word " day" there were substituted the words " month or part " and the words from " and that he was exempt" onwards were omitted ;
iii
in paragraphs (c) and (d) and in the words following paragraph (d), for the word " day" there were in each case substituted the words " month or part ";
c
in subsection (9), for the words " any day comprised in the relevant period" there were substituted the words " any month or part of a month comprised in the relevant period.
.
4
In Schedule 9 to the Act of 1972 (transitional provisions in Northern Ireland), the paragraph set out in subsection (3) above shall be inserted after paragraph 17 ".

Betting and gaming duties
8
1
Schedule 6 to this Act shall have effect for the purposes of—
a
increasing pool betting duty, other than in the case of pool competitions bets;
b
increasing gaming licence duty ;
c
amending the law relating to bingo duty ; and
d
increasing, and otherwise amending the law relating to,gaming machine licence duty.
2
Part II of Schedule 6 shall have effect in relation to bets made at any time by reference to an event taking place after 31st March 1982, Part III of that Schedule shall have effect in relation to gaming licences for any period beginning after 31st March 1982, Part IV of that Schedule shall have effect in relation to bingo played after 26th September 1982 and Part V of that Schedule shall have effect in relation to gaming machine licences for any period beginning after 30th September 1982.

Immature spirits for home use and loss allowance for imported beer
9
1
The Treasury may by order—
a
substitute for the period of three years or that of two years referred to in subsection (1) of section 31 of the Alcoholic Liquor Duties Act 1979 (restriction on delivery of immature spirits for home use) or for both such periods such shorter period or periods as they think fit;
b
amend the said section 31 so as to exempt rum from any restriction imposed by that subsection ; and
c
repeal the said section 31.
2
An order under subsection (1) above shall be made by statutory instrument which shall be laid before the Commons House of Parliament and shall cease to have effect at the end of the period of twenty-eight days beginning with the day on which it was made unless it is approved by resolution of the Commons House of Parliament before the end of that period (but without prejudice to anything previously done in pursuance of the order or to the making of a new order).
In reckoning that period no account shall be taken of any time during which Parliament is dissolved or prorogued or during which the Commons House of Parliament is adjourned for more than four days.
3
At the end of section 40 of the Alcoholic Liquor Duties Act 1979 (charge of duty on imported beer) there shall be added the following subsection: —
3
The duty chargeable on beer to which subsection (1) above applies and which is imported or removed into the United Kingdom in containers having a capacity of more than 10 litres shall be charged on a quantity which is 2 per cent, less than the quantity so imported or removed.
4
Subsection (3) above has effect in relation to beer imported or removed into the United Kingdom on or after 1st October 1982.

Regulator powers
10
1
In subsection (2) of section 1 of the Excise Duties (Surcharges or Rebates) Act 1979 (regulator powers) for the words from " groups of duties " to " every right" there shall be substituted the words " duties to which this section applies, provide for an adjustment—
a
of any liability to such a duty ; and
b
of any right".
2
For subsections (3) and (4) of section 2 of that Act there shall be substituted the following subsection—
3
An order
a
may specify different percentages for different cases ; but
b
may not provide for both an addition to any amount payable and a deduction from any other amount payable.
.
3
In subsection (7) of that section (procedure for certain orders) for the words from " with respect to " to the end of paragraph (b) there shall be substituted the words
—
a
specifies a percentage by way of addition to any amount payable or increases a percentage so specified; or
b
withdraws or reduces a percentage specified by way of deduction from any amount payable,".
.

Powers of Commissioners with respect to agricultural levies etc.
11
1
Notwithstanding that—
a
agricultural levies, within the meaning of section 6 of the European Communities Act 1972, which are charged on goods exported from the United Kingdom are, in accordance with subsection (4) of that section, paid to and recoverable by the Intervention Board for Agricultural Produce, and
b
payments made by virtue of Community arrangements to which subsection (3) of that section applies are made by that Board,
proceedings for an offence under the Theft Act 1968, the Theft Act 1978, the Theft Act (Northern Ireland) 1969 or the Theft (Northern Ireland) Order 1978 relating to any such levies or payments may be instituted by the Commissioners.
2
At the end of Part V of the Customs and Excise Management Act 1979 (control of exportation) there shall be added the following section: —

Offences in relation to agricultural levies.
68A
1
Without prejudice to section 11(1) of the Finance Act 1982, if any person is, in relation to any goods, in any way knowingly concerned in any fraudulent evasion or attempt at evasion of any agricultural levy chargeable on the export of the goods, he shall be guilty of an offence and may be detained.
2
Any person guilty of an offence under this section shall be liable, on summary conviction, to a penalty of three times the value of the goods or £200, whichever is the greater.
3
Any goods in respect of which an offence under this section is committed shall be liable to forfeiture.
4
In this section " agricultural levy" has the same meaning as in section 6 of the European Communities Act 1972 and the provisions of this section apply notwithstanding that any such levy may be payable to the Intervention Board for Agricultural Produce.
3
At the end of section 136 of the Customs and Excise Management Act 1979 (offences in connection with claims for drawback etc.) there shall be inserted the following subsection: —
6
Without prejudice to section 6(5) of the European Communities Act 1972 (which provides for the application of certain enactments, including this section, if the Commissioners are charged with the performance on behalf of the Intervention Board for Agricultural Produce, of certain duties in relation to the payment of refunds or allowances on goods exported or to be exported from the United Kingdom)—
a
references in this section to amounts by way of drawback include amounts payable by the Intervention Board for Agricultural Produce by virtue of Community arrangements to which section 6(3) of that Act applies; and
b
in relation to such amounts, subsection (3) above shall have effect with the omission of the words from " but in the case " onwards.

Delegation of Commissioners' functions
12
In subsection (1) of section 8 of the Customs and Excise Management Act 1979 (functions of Commissioners may be exercised by secretaries, assistant secretaries, etc.) for paragraphs (b) and (c) there shall be substituted the following paragraph: —
b
any officer or other person acting under the authority of the Commissioners
'
and at the end of that subsection there shall be added the words " and any statement signed by one or more of the Commissioners certifying that a person specified in the statement was, at a time or for a purpose so specified, acting under the authority of the Commissioners shall be admissible in evidence, and in Scotland shall be sufficient evidence, of the fact so certified. ";
PART II

Value Added Tax and Car Tax

Registration
13
1
In paragraph 1 of Schedule 1 to the Finance Act 1972 (liability to be registered)—
a
for " £5,000 " there shall be substituted " £6,000 " , and
b
for " £15,000 ", in each place, there shall be substituted " £17,000 ";
and in section 20(1) of that Act (registration of local authorities) for the words following " one year " there shall be substituted the words " does not exceed the sum for the time being specified in paragraph 1(a)(ii) of that Schedule, as if that value exceeded that sum ".
2
In paragraph 2 of that Schedule (termination of liability to be registered)—
a
for " £15,000 ", in both places, there shall be substituted " £17,000 " , and
b
for " £14,000 " there shall be substituted " £16,000 ".
3
After paragraph 11 of that Schedule there shall be inserted—
11A
The Treasury may by order substitute for any of the sums for the time being specified in paragraphs 1 and 2 of this Schedule such greater sums as they think fit.
.
4
Subsection (1) above shall be deemed to have come into force on 10th March 1982 and subsection (2) on 1st June 1982.

Input tax
14
1
In subsection (5) of section 3 of the Finance Act 1972 (payment of excess credit for input tax against output tax by Commissioners) after the words " the amount of the excess shall" there shall be inserted the words " subject to subsection (6A) below " , and after subsection (6) of that section there shall be inserted the following subsection—
6A
Where at the end of any period an amount is due under subsection (5) above to a taxable person who has failed to submit returns or to pay tax for any earlier period as required by this Part of this Act, the Commissioners may withhold payment of that amount until he has complied with that requirement.
2
In subsection (8)(b) of that section (power to enable taxable persons to count tax on the supply or importation of goods as their input tax) for the words " supply to him, or paid by him on the importation, of goods " there shall be substituted the words " supply to him of goods or services or paid by him on the importation of goods ".

Supplies spanning change of rate etc.
15
1
This section applies where there is a change in the rate of value added tax in force under section 9 of the Finance Act 1972, or in the descriptions of exempt or zero-rated supplies.
2
Where
a
a supply affected by the change would, apart from subsections (4) to (6A) of section 7 of that Act (time of supply), be treated under subsection (2) or (3) of that section as made wholly or partly at a time when it would not have been affected by the change, or
b
a supply not so affected would apart from subsections (4) to (6A) be treated under subsection (2) or (3) of that section as made wholly or partly at a time when it would have been so affected,
the rate at which tax is chargeable on the supply, or any question whether it is zero-rated or exempt, shall if the person making it so elects be determined without regard to subsections (4) to (6A).
3
Any power to make regulations under Part I of the Finance Act 1972 with respect to the time when a supply is to be treated as taking place shall include power to provide for this section to apply as if the references in subsection (2) above to section 7(4) to (6A) included references to specified provisions of the regulations.
4
Regulations under section 30 of the Finance Act 1972 may make provision for the replacement or correction of any tax invoice which—
a
relates to a supply in respect of which an election is made under this section, but
b
was issued before the election was made.
5
No election may be made under this section in respect of a supply to which paragraph 6 of Schedule 2 to the Finance Act 1972 (sales in satisfaction of debts) or section 19(4) of the Finance (No. 2) Act 1975 (invoice provided by recipient) applies.

Treatment of partnerships
16
1
In section 22 of the Finance Act 1972 (partnerships) in subsection (1) (registration of partners in the name of the firm and provisions as to changes of members of the partnership)—
a
after the words " in determining " there shall be inserted the words " for any purpose of this Part of this Act "; and
b
the words from " or of a change " onwards shall be omitted.
2
After that subsection there shall be inserted the following subsections: —
1A
Without prejudice to section 36 of the Partnership Act 1890 (rights of persons dealing with firm against apparent members of firm) until the date on which a change in the partnership is notified to the Commissioners, a person who has ceased to be a member of a partnership shall be regarded as continuing to be a partner for the purposes of this Part of this Act and, in particular, for the purpose of any liability for tax on the supply of goods or services by the partnership.
1B
Where a person ceases to be a member of a partnership during a prescribed accounting period (or is treated as so doing by virtue of subsection (1A) above) any notice, whether of assessment or otherwise, which is served on the partnership and relates to, or to any matter arising in, that period or any earlier period during the whole or part of which he was a member of the partnership shall be treated as served also on him.
1C
Without prejudice to section 16 of the Partnership Act 1890 (notice to acting partner to be notice to the firm) any notice, whether of assessment or otherwise, which is addressed to a partnership by the name in which it is registered by virtue of subsection (1) above and is served in accordance with this Part of this Act shall be treated for the purposes of this Part of this Act as served on the partnership and, accordingly, where subsection (1B) above applies, as served also on the former partner.
3
In subsection (2) of that section for " Subsection (1)" there shall be substituted " Subsections (1) and (1B) ".

Recovery of over-payment of value added tax etc.
17
1
In section 31 of the Finance Act 1972 (assessment to tax) after subsection (1) there shall be inserted the following subsections: —
1A
In any case where—
a
an amount has been repaid to any person as being a repayment of tax, which ought not to have been repaid, or
b
an amount has been paid to any person as being due to him in accordance with section 3(5) of this Act, which ought not to have been paid to him,
the Commissioners may assess that amount as being tax due from him in the prescribed accounting period in which the amount was repaid or, as the case may be, paid and notify it to him accordingly.
1B
Where a person is assessed under subsections (1) and (1A) above in respect of the same prescribed accounting period the assessments may be combined and notified to him as one assessment.
2
In subsections (2), (4) and (6) of that section after the words " subsection (1)" there shall be inserted the words " or subsection (1A) ".
3
In section 40(1)(b)(i) of the Finance Act 1972 (appeals against assessments) after the words " subsection (1) " there shall be inserted the words " or (1A) ".
4
The preceding provisions of this section shall not have effect in relation to any amounts repaid or paid to any person before the passing of this Act.

Car tax: reduction for motor caravans
18
In subsection (2) of section 52 of the Finance Act 1972 (car tax) after the words " 10 per cent, of " there shall be inserted the words—
a
in the case of a caravan, three-fifths of its wholesale value; and
b
in any other case
.

Car tax: transfer of liability on transfer of stocks
19
In paragraph 26 of Schedule 7 to the Finance Act 1972 (regulations relating to car tax) after paragraph (e) there shall be inserted the following paragraph—
ee
for transferring liability for the tax in respect of any chargeable vehicles to a person to whom the property in the vehicles is transferred where the circumstances of the transfer are of a description specified in the regulations and are such that tax does not become due on or before the transfer, and for applying to the transferee, with or without modifications, provisions of this Schedule applicable to a person who is liable for tax as a person registered under this Schedule.
PART III

Income Tax, Corporation Tax and Capital Gains Tax
CHAPTER I

General

Charge of income tax for 1982-83
20
1
Income tax for the year 1982-83 shall be charged at the basic rate of 30 per cent.; and—
a
in respect of so much of an individual's total income as exceeds £12,800 at such higher rates as are specified in the Table below; and
b
in respect of so much of the investment income included in an individual's total income as exceeds £6,250 at the additional rate of 15 per cent.
Part of excess over £12,800 | Higher rate
The first £2,300 | 40 per cent.
The next £4,000 | 45 per cent.
The next £6.200 | 50 per cent.
The next £6,200 | 55 per cent.
The remainder | 60 per cent.
2
Section 24(4) of the Finance Act 1980 (increase of basic rate limit, higher rate bands and investment income threshold) shall not apply for the year 1982-83.

Charge of corporation tax for financial year 1981
21
Corporation tax shall be charged for the financial year 1981 at the rate of 52 per cent.

Rate of advance corporation tax for financial year 1982
22
The rate of advance corporation tax for the financial year 1982 shall be three-sevenths.

Corporation tax: small companies
23
1
The small companies rate for the financial year 1981 shall be 40 per cent., and for that year the fraction mentioned in subsection (2) of section 95 of the Finance Act 1972 (marginal relief for small companies) shall be two twenty-fifths.
2
For the financial year 1981 and subsequent financial years subsection (3) of the said section 95 shall have effect with the substitution for any reference to £80,000 of a reference to £90,000 and with the substitution for any reference to £200,000 of a reference to £225,000.
3
Where by virtue of subsection (2) above the said section 95 has effect with different relevant amounts in relation to different parts of the same accounting period, those parts shall be treated for the purposes of that section as if they were separate accounting periods and the profits and income of the company for that period (as defined in that section) shall be apportioned between those parts.

Personal reliefs
24
1
Section 24(5) of the Finance Act 1980 (increase of personal reliefs) shall not apply for the year 1982-83.
2
In section 8 of the Taxes Act (personal reliefs)—
a
in subsection (1)(a) (married) for "£2,145 " there shall be substituted " £2,445 ";
b
in subsections (1)(b) (single) and (2) (wife's earned in come relief) for "£1,375" there shall be substituted " £1,565 ";
c
in subsection (1A) (age allowance) for "£2,895" and "£1,820" there shall be substituted " £3,295 " and " £2,070 " respectively ; and
d
in subsection (1B) (income limit for age allowance) for " £5,900 " there shall be substituted " £6,700 ".

Relief for interest
25
1
In sub-paragraph (1) of paragraph 5 of Schedule 1 to the Finance Act 1974 (limit on relief for interest on certain loans for the purchase or improvement of land) the references to £25,000 shall have effect for the year 1982-83 as well as for previous years of assessment.
2
At the end of that paragraph there shall be added the following sub-paragraph—
6
In determining whether the amount on which interest is payable under a loan exceeds the limit in sub-paragraph (1) above, no account shall be taken of so much (if any) of that amount as consists of interest which has been added to capital and does not exceed £1,000.

Deduction of tax from certain loan interest
26
1
If a person who is a qualifying borrower makes a payment of relevant loan interest to which this section applies, he shall be entitled, on making the payment, to deduct and retain out of it a sum equal to income tax thereon at the basic rate for the year of assessment in which the payment becomes due; and, accordingly, section 75 of the Finance Act 1972 (relief for payment of interest), section 54 of the Taxes Act (certain payments of interest to be made under deduction of tax) and section 343(4) of the Taxes Act (no deduction of income tax from payment of interest to building societies) shall not apply to that payment of relevant loan interest.
2
Where a sum is deducted under subsection (1) above from a payment of relevant loan interest.—
a
the person to whom the payment is made shall allow the deduction on receipt of the residue ;
b
the borrower shall be acquitted and discharged of so much money as is represented by the deduction as if the sum had been actually paid; and
c
the sum deducted shall be treated as income tax paid by the person to whom the payment is made.
3
Part I of Schedule 7 to this Act shall have effect to determine what is relevant loan interest, Part II of that Schedule shall have effect with respect to the application of this section to any such interest and Parts III and IV of that Schedule shall have effect with respect to qualifying borrowers and qualifying lenders respectively.
4
Where payments of relevant loan interest to which this section applies become due in any year, the borrower shall be charged with, tax at the basic rate for that year on an amount of income equal, subject to subsection (5) below, to the deduction which, in computing his total income, falls to be made on account of those payments.
5
In any case where—
a
payments of relevant loan interest to which this section applies become due in any year ; and
b
the total income of the borrower for that year is such that he cannot benefit from any or, as the case may be, the full amount of the relevant personal reliefs to which he is entitled,
so much of that full amount as cannot be deducted from his total income shall be deducted from the amount of income on which he is chargeable to tax by virtue of subsection (4) above.
6
In subsection (5) above " relevant personal relief " means any relief to which the borrower concerned is entitled under Chapter II of Part I of the Taxes Act, other than—
a
relief under section 19 of that Act (premiums on life insurance policies) which is given either by deduction by virtue of paragraph 5 of Schedule 4 to the Finance Act 1976 or in accordance with paragraph 15 of that Schedule; and
b
relief under section 20 of the Taxes Act (deferred annuities) ;
and for the purposes of subsection (5) above the full amount of those reliefs means the amount of them determined without regard to section 25 of the Taxes Act (under which reliefs are limited so as not to exceed total income).
7
Sections 240(5) and 246(3) of the Taxes Act (which require income tax deducted from payments received by certain companies to be set off against corporation tax and denies the company the right to repayment of income tax) shall not apply to a payment of relevant loan interest to which this section applies which is received by any company, but, in accordance with regulations under section 29 below, any person by whom such a payment is received shall be entitled to recover from the Board an amount equal to the sum which, by virtue of subsection (2)(c) above is treated as income tax paid by him; and any amount so recovered shall be treated for the purposes of the Tax Acts in like manner as the payment of relevant loan interest to which it relates.
8
Notwithstanding paragraph (f) of section 130 of the Taxes Act (prohibition on deduction of annual payments other than interest in computing profits or gains of a trade etc.) no sum shall be deducted in respect of relevant loan interest in computing the amount of the profits or gains to be charged under Case I or II of Schedule D and, accordingly, no sum shall be so deducted in computing the profits or gains to be charged under Case VI of that Schedule.
9
In the Finance Act 1976—
a
in section 66 (taxation of benefit of employment linked loans) at the end of subsection (8) there shall be added the words " or which would be so eligible apart from section 26 of the Finance Act 1982 "; and
b
in paragraph 8 of Schedule 8 (provisions supplementary to section 66) the following sub-paragraph shall be substituted for sub-paragraph (1)—
1
Interest is elegible for relief for the purposes of this Part of this Schedule if it is eligible for relief under section 75 of the Finance Act 1972 or would be eligible for such relief apart from section 26 of the Finance Act 1982.

Termination of the option mortgage schemes
27
1
Subject to the provisions of this section, Part II of the 1967 Act (assistance for house purchase and improvement in Great Britain) and Part VIII of the 1981 Order (option mortgages in Northern Ireland) shall cease to have effect on 1st April 1983.
2
Nothing in this Act affects the continuing operation of—
a
sections 24(2)(a) and 28 of the 1967 Act (entitlement to and calculation of subsidy) with respect to payments falling to be made by the Secretary of State and related to amounts due from the borrower before 1st April 1983 or treated as so due by virtue of section 28(1A) of that Act; or
b
section 28A of the 1967 Act (recovery of subsidy in certain cases) in its application to any such payments ; or
c
Articles 142(2)(a) and 149 of the 1981 Order (entitlement to and calculation of subsidy) with respect to payments falling to be made by the Department of the Environment for Northern Ireland and related to amounts due from the borrower before 1st April 1983 or treated as so due by virtue of Article 149(2) of that Order; or
d
Article 150 of the 1981 Order (recovery of subsidy in certain cases) in its application to any such payments.
3
Nothing in this Act affects the continuing operation of Part II of the 1967 Act in relation to a loan in respect of which an option notice is in force on 31st March 1983 if—
a
on that date the residence condition in section 24B of that Act is not fulfilled ; and
b
as a result either of the lender having first become aware of the fact on or before that date or of a notification having been given on or before that date, the option notice will (assuming the continuation in force of the said Part II) cease to have effect after that date by virtue of paragraph (ix) or paragraph (x) of subsection (3) of section 24 of that Act.
4
Nothing in this Act affects the continuing operation of Part VIII of the 1981 Order in relation to a loan in respect of which an option notice is in force on 31st March 1983 if—
a
on that date the residence condition in Article 145 of that Order is not fulfilled; and
b
as a result either of the lender having first become aware of that fact on or before that date or of a notification having been given on or before that date, the option notice will (assuming the continuation in force of the said Part VIII) cease to have effect after that date by virtue of sub-paragraph (z) or sub-paragraph (f) of paragraph (4) of Article 142 of that Order.
5
In this section—
- " the 1967 Act" means the Housing Subsidies Act 1967; and
- "the 1981 Order" means the Housing (Northern Ireland) Order 1981.

Variation of terms of repayment of certain loans
28
1
If relevant loan interest payable by a qualifying borrower—
a
is payable under a loan agreement requiring combined payments, and
b
is payable to a qualifying lender who, in accordance with subsection (5) below, is specified for the purposes of this section, and
c
is interest on a loan made before 1st April 1983, or if it is interest in respect of which the Board have notified an earlier date to the lender under paragraph 2(5) of Schedule 7 to this Act, before that earlier date,
then, subject to subsection (2) below, the terms of repayment of the loan are by virtue of this section varied in accordance with subsection (3) below.
2
Subsection (1) above does not apply to any combined payment unless—
a
the qualifying lender concerned has, in accordance with regulations, given notice to the qualifying borrower that this section is to apply to combined payments which the borrower is required to make under the loan agreement; and
b
the qualifying borrower has not, in accordance with regulations, given notice to the qualifying lender that he wishes to continue with combined payments which, allowing for any sums he is entitled to deduct by virtue of section 26 above, do not exceed the combined payments which he would have been required to make but for the provisions of that section.
3
Where subsection (1) above applies, the amount of any combined payment payable by the qualifying borrower concerned which includes a payment of relevant loan interest shall be determined by the lender so as to secure, so far as practicable.—
a
that the principal and interest are repaid over the period which is for the time being agreed between the lender and the borrower ; and
b
that, unless there is a change in that period or in the basic rate of income tax or in the rate of interest charged by the lender, the amount of each net payment due from the borrower to the lender will be of the same amount;
and for the purposes of paragraph (b) above a " net payment" means a payment which, so far as it is a payment of interest, consists of interest from which the sum provided for by section 26(1) above has been deducted.
4
Where the qualifying borrower gives a notice under subsection (2)(b) above, the amount of any combined payment payable by him which includes a payment of relevant loan interest and the period over which the principal and interest on the loan are to be repaid shall be determined by the lender so as to secure, so far as practicable, that, unless there is a change in the basic rate of income tax or in the rate of interest charged by the lender.—
a
the amount of each net payment, as defined in subsection (3) above, which is due from the borrower to the lender will be of the same amount; and
b
the amount of each such payment does not exceed what, apart from section 26 above, would have been the amount of the first combined payment payable by the borrower after the date referred to in subsection (1)(c) above, less tax at the basic rate for the year 1983-84 on so much of that combined payment as would have consisted of interest;
but nothing in this section or in the loan agreement shall prevent the borrower from making, at such time or times as he chooses, additional repayments of capital of any amount so as to secure that the principal and interest on the loan are repaid within a period which is not shorter than that referred to in subsection (3)(a) above.
5
A building society within the meaning of the Building Societies Act 1962 or the Building Societies Act (Northern Ireland) 1967 is by virtue of this subsection specified for the purposes of this section; and the Treasury may by order made by statutory instrument specify any other qualifying lender or class of qualifying lender for the purposes of this section.
6
The giving of a notice under paragraph (a) or paragraph (b) of subsection (2) above does not affect the right of the qualifying lender and the qualifying borrower to vary, by agreement, the terms on which interest or capital or both is to be repaid.
7
In this section—
- " loan agreement " means an agreement governing the terms of payment of interest and repayment of capital of a loan the interest on which is relevant loan interest;
- " combined payment" means one of a number of regular payments which are attributable in part to repayment of capital and in part to payment of interest; and
- " regulations " means regulations made by the Board under section 29 below;
and other expressions have the same meaning as in section 26 above.

Supplementary regulations
29
1
The Treasury may by regulations made by statutory instrument make provision for the application of sections 26 and 28 above and Schedule 7 to this Act in relation to—
a
a housing association which is for the time being approved for the purposes of section 341 of the Taxes Act and which borrows or has borrowed from a qualifying lender on the security of a freehold or leasehold estate of that association on land in Great Britain or Northern Ireland; and
b
a self-build society, within the meaning of Part I of the Housing Act 1974, which is for the time being approved for the purposes of section 341A of the Taxes Act and which borrows or has borrowed from a qualifying lender on the security of a freehold or leasehold estate of that society on land in Great Britain.
2
Regulations under subsection (1) above—
a
may contain such modifications of the provisions of sections 26 and 28 above and Schedule 7 to this Act, and
b
may make the application of any of those provisions subject to such special conditions,
as appear to the Treasury to be appropriate.
3
The Board may by regulations made by statutory instrument make provision—
a
for the purposes of any provision of section 26 or section 28 above or Schedule 7 to this Act which relates to any matter or thing to be specified by or done in accordance with regulations ;
b
for the application of sections 26 and 28 above and Schedule 7 to this Act in relation to loan interest paid by personal representatives and trustees ;
c
with respect to the furnishing of information by borrowers or lenders, including, in the case of lenders, the inspection of books, documents and other records on behalf of the Board ;
d
for, and with respect to, appeals to the General Commissioners or the Special Commissioners against the refusal of the Board to issue a notice under paragraph 7(1)(b) of Schedule 7 to this Act or the issue of a notice under paragraph 10 of that Schedule ; and
e
generally for giving effect to sections 26 and 28 above and Schedule 7 to this Act.
4
In the application of this section to Scotland—
a
" a freehold or leasehold estate " means any interest in land;
b
any reference to a loan on the security of such an estate is a reference to a loan upon a heritable security within the meaning of section 9(8)(a) of the Conveyancing and Feudal Reform (Scotland) Act 1970,
5
A statutory instrument by which the power to make regulations conferred by subsection (1) or subsection (3) above is exercised shall be subject to annulment in pursuance of a resolution of the Commons House of Parliament.

Exemption from income tax: mobility allowance
30
1
In section 219(1) of the Taxes Act (social security benefits charged to tax unless specifically exempted) after the words " attendance allowance " there shall be inserted the words " mobility allowance ".
2
Paragraph (b)(ii) of subsection (2) of section 8 of the Taxes Act (mobility allowance of wives to be treated as earned income) shall cease to have effect.
3
This section shall have effect in relation to mobility allowance paid in respect of periods beginning on or after 6th April 1982.

Income taxable under Schedule E
31
1
The following section shall be inserted in the Taxes Act after section 219—

Other payments charged under Schedule E.
219A
1
The following payments shall be charged to income tax under Schedule E by virtue of this section if they would not otherwise be, that is to say—
a
allowances paid under a scheme of the kind described in the Job Release Act 1977, being a scheme which provides for the payment of allowances for periods beginning earlier than one year before the date on which the recipient attains pensionable age, as defined in that Act;
b
maternity pay (whether paid during the subsistence of a contract of employment or not) within the meaning of section 33 of the Employment Protection (Consolidation) Act 1978 or, in Northern Ireland, Article 15 of the Industrial Relations (No. 2) (Northern Ireland) Order 1976 ; and
c
payments of statutory sick pay within the meaning of section 1 of the Social Security and Housing Benefits Act 1982 or, in Northern Ireland, any corresponding provision contained in an Order in Council under the Northern Ireland Act 1974.
2
This section has effect in relation to payments made in respect of periods beginning on or after 6th April 1982.
2
In subsection (2)(c) of section 530 of the Taxes Act (certain payments to be " earned income "), after the words " section 219(1) " there shall be inserted the words " or section 219A ".

Social security benefits
32
1
In section 27 of the Finance Act 1981 (provisions relating to the taxation of social security payments)—
a
in subsection (3) (taxation of certain supplementary allowances)—
i
the words " (except so far as made by virtue of section 4 of that Act) " shall cease to have effect; and
ii
for paragraph (a) there shall be substituted the following paragraphs: —
a
his right to the allowance is subject to any condition contained in section 5 of that Act (requirements as to registration and availability for employment); or
aa
the allowance is paid to him under Regulation 12, 16 or 19 of the Supplementary Benefit (Urgent Cases) Regulations 1981, and his right to the allowance is not subject to the said section 5 by virtue only of Regulation 3(2) of those Regulations ; or
;
b
after subsection (3) there shall be inserted the following subsection—
3A
An allowance shall not be charged to tax under Schedule E by virtue of subsection (3)(b) above to the extent that it is made by virtue of section 4 of the said Act of 1976.
;
c
in subsection (5) (relevant amounts) the following paragraph shall be substituted for paragraph (a)—
a
in a case where the supplementary allowance is paid to a person—
i
to whom subsection (3)(a) above applies and he is for the purposes of the said Act of 1976 one of a married or unmarried couple the other one of whom is within section 8 of that Act and the said paragraph 10 applies to him, or
ii
to whom subsection (3)(b) above applies, to the amount specified in the said paragraph 10 ;
and at the end of that subsection there shall be inserted the following words—
;
Any reference in this subsection to an amount or rate or increase specified in any provision is a reference to the amount or rate or increase so specified for the week in question.
;
d
at the end of paragraph (c) of subsection (8) (Northern Ireland adaptations) there shall be added the words
and
d
for any reference to the Supplementary Benefit (Urgent Cases) Regulations 1981 there were substituted a reference to the Supplementary Benefit (Urgent Cases) Regulations (Northern Ireland) 1981
; and
e
in subsection (11) (commencement of section 27) for the words " 5th April 1982 " there shall be substituted the words " 4th July 1982 ".
2
In section 29 of the Finance Act 1981 (pay as you earn repayments) in paragraph (b) for the words from " to the condition " to " or " there shall be substituted the words " to any condition contained in section 5 of the said Act of 1976 or, in Northern Ireland, Article 7 of the said Order (requirements as to registration and availability for employment); or ".
3
Any reference in section 27 or section 29 of the Finance Act 1981 to section 5 of the Supplementary Benefits Act 1976 or to Article 7 of the Supplementary Benefits (Northern Ireland) Order 1977 includes a reference to that section or Article as amended by any other enactment including an enactment passed or made after the passing of this Act.
4
Paragraph (e) of subsection (1) above shall be deemed to have come into force on 5th April 1982 and the remainder of this section shall be deemed to have come into force on 5th July 1982.

Small maintenance payments
33
1
Section 65 of the Taxes Act (certain small maintenance payments to be made without deduction of tax) shall be amended as follows.
2
For subsection (1) there shall be substituted the following subsections—
1
In this section 'small maintenance payments' means payments under an order made by a court in the United Kingdom—
a
by one of the parties to a marriage (including a marriage which has been dissolved or annulled) to or for the benefit of the other party to that marriage for that other party's maintenance,
b
to any person under 21 years of age for his own benefit, maintenance or education, or
c
to any person for the benefit, maintenance or education of a person under 21 years of age,
in respect of which the two conditions mentioned in subsection (1A) below are satisfied; and ' small maintenance order' means an order providing for the making of small maintenance payments.
1A
The first of the conditions referred to in subsection (1) above is—
a
in the case of payments falling within paragraph (a) of that subsection, that the order for the time being requires them to be made—
i
weekly at a rate not exceeding £33 per week, or
ii
monthly at a rate not exceeding £143 per month,
b
in the case of payments falling within paragraph (b) (but not within paragraph (a)) of that subsection, that the order for the time being requires them to be made—
i
weekly at a rate not exceeding £33 per week, or
ii
monthly at a rate not exceeding £143 per month,
c
in the case of payments falling within paragraph (c) (but not within paragraph (a) or (b)) of that subsection, that the order for the time being requires them to be made—
i
weekly at a rate not exceeding £18 per week, or
ii
monthly at a rate not exceeding £78 per month,
and the second of those conditions is that the payments would, apart from this section, fall within section 52 or section 53 above (deduction of income tax from annual payments).
3
For subsection (5) there shall be substituted the following subsection—
5
The Treasury may from time to time, by order made by statutory instrument subject to annulment in pursuance of a resolution of the Commons House of Parliament, increase any, or all, of the amounts for the time being specified in subsection (1A) above.
4
In subsection (6) for the words from " or further ", where they first occur, to " weekly amount" there shall be substituted the words " the amount for the time being specified in sub-paragraph (i) of paragraph (a), (b) or (c) of subsection (1A) above shall increase the amount for the time being specified in sub-paragraph (ii) of that paragraph so that it is 52 twelfths of the amount specified in sub-paragraph (i) by virtue of the order ".
5
This section applies—
a
in the case of payments under orders made, varied or revived after the passing of this Act, to those falling due after that date, and
b
in the case of payments under other orders, to those falling due on or after 6th April 1983.

Life assurance: variation in life or lives assured
34
1
Where, as a result of a variation in the life or lives for the time being assured, a qualifying policy (in this section referred to as " the earlier policy ") is replaced by a new policy (in this section referred to as " the later policy") which, in accordance with the rules in paragraph 9 of Schedule 1 to the Taxes Act, is also a qualifying policy, then, subject to subsection (3) below, for the purposes of—
a
the enactments specified in subsection (2) below, and
b
any second or subsequent application of this section,
the later policy and the earlier policy shall be treated as a single policy issued in respect of an insurance made at the time of the making of the insurance in respect of which the earlier policy was issued; and, accordingly, so long as the later policy continues to be a qualifying policy, the single policy shall also be treated as a qualifying policy for those purposes.
2
The enactments referred to in subsection (1) above are—
a
sections 394 and 395 of the Taxes Act (life policies: chargeable events and computation of gains); and
b
sections 7 to 9 of the Finance Act 1975 (payments becoming due on certain surrenders etc. of life policies).
3
Subsection (1) above does not apply unless—
a
any sum which would otherwise become payable by the insurer on or in connection with the coming to an end of the earlier policy is retained by the insurer and applied in the discharge of some or all of the liability for any premium becoming due under the later policy; and
b
no consideration in money or money's worth (other than the benefits for which provision is made by the later policy) is receivable by any person on or in connection with the coming to an end of the earlier policy or the coming into existence of the later policy.
4
Any sum which is applied as mentioned in subsection (3)(a) above.—
a
shall be left out of account in determining, for the purposes of the enactments specified in subsection (2) above, the total amount which at any time has been paid by way of premiums under the single policy referred to in subsection (1) above ; and
b
shall not be regarded, in relation to that single policy, as a relevant capital payment, within the meaning of section 395 of the Taxes Act.
5
Any reference in this section to a qualifying policy is a reference to a qualifying policy within the meaning of Part I of Schedule 1 to the Taxes Act.
6
This section applies where the later policy comes into existence on or after 25 th March 1982.

Life assurance: qualifying policies and policies on the lives of children
35
1
In paragraph 2A of Schedule 4 to the Finance Act 1976 (qualifying life policies: exclusion of accident policies)—
a
in sub-paragraph (1), for the words " subsection (2)(a) of section 83 of the Insurance Companies Act 1974" there shall be substituted the words " Class I or Class III in Schedule 1 to the Insurance Companies Act 1981 "; and
b
in sub-paragraph (2), for the words " falling within subsection (2)(b) of the said section 83 " there shall be substituted the words
which—
a
are expressed to be in effect for a period of not less than five years or without limit of time; and
b
either are not expressed to be terminable by the insurer before the expiration of five years from their taking effect or are expressed to be so terminable before the expiration of that period only in special circumstances therein mentioned
.
2
In paragraph 11(3) of Schedule 4 to the Finance Act 1976 (maximum annual premium for policies on lives of children or grandchildren) for " £52 " there shall be substituted " £64 ".
3
In section 30 of the Finance Act 1980 (certain policies not to be qualifying policies) in subsection (3) (definition of " policy " by reference to ordinary long-term insurance business) for the words "within the meaning of section 83(2) of the Insurance Companies Act 1974 " there shall be substituted the words " as defined in section 85(1) of the Insurance Companies Act 1974, as amended by Schedule 4 to the Insurance Companies Act 1981 ".
4
This section applies to policies issued in respect of insurances made on or after 25th March 1982.

Relief in respect of certain income of trade unions
36
1
In section 338 of the Taxes Act (which, as amended by section 57(3) of the Finance Act 1980, provides for exemption for income and gains of a trade union precluded by Act or rules from assuring to any person a sum exceeding £2,000 by way of a gross sum or £416 a year by way of annuity if the income or gains is or are applied for purpose of provident benefits) for "£2,000" and "£416" there shall be substituted respectively '* £2,400 " and " £500 ".
2
Subsection (1) above has effect in relation to income or gains which are applicable and applied as mentioned in the said section 338 on or after 1st June 1982.

Retirement annuity relief: Lloyds' underwriters
37
1
Where for any year of assessment an individual—
a
is chargeable to income tax in respect of relevant earnings derived from Lloyd's underwriting activities; and
b
there is an amount of unused relief attributable to those earnings,
the individual may, subject to subsection (2) below, elect that there shall be treated as paid in that year any qualifying premium paid by him in the next year of assessment but two.
2
An election under this section shall not have effect in relation to so much of any qualifying premium as exceeds the amount of unused relief referred to in subsection (1)(b) above.
3
Any election under this section shall be made before the end of the year of assessment in which the premium is paid.
4
Where an election is made under this section the provisions of Chapter III of Part IX of the Taxes Act (retirement annuities), other than section 227(1BB), shall have effect as if the premium or, as the case may be, the part of the premium in question had been paid in the year specified in the election and not in the year in which it was actually paid.
5
In this section " qualifying premium " and " relevant earnings " have the same meaning as in the said Chapter III, " unused relief " has the same meaning as in section 227A of the Taxes Act and " relevant earnings derived from Lloyd's underwriting activities " means relevant earnings as an underwriting member of Lloyd's or by way of commission calculated by reference to the profits of Lloyd's underwriting business.
6
This section has effect in relation to any premium paid in the year 1982-83 or any subsequent year of assessment.

Retirement annuity relief: older contributors
38
1
In subsection (4) of section 228 of the Taxes Act (relief for premiums under retirement annuity contracts limited by reference to percentage of earnings dependent upon age) the words " Subject to subsection (5) below " shall be omitted and for the Table set out in that subsection there shall be substituted the following Table: —

TABLE
Year of birth | Percentage
1916 to 1933 | 20
1914 or 1915 | 21
1912 or 1913 | 24
1910 or 1911 | 26½
1908 or 1909 | 29½
1907 | 32½ "
2
Subsection (5) of the said section 228 (which restricts relief in relation to any year in which the individual concerned benefits from pensionable employment) shall cease to have effect.
3
This section has effect for the year 1982-83 and subsequent years of assessment.

Partnership retirement annuities
39
1
In section 16 of the Finance Act 1974 (partnership retirement annuities) in paragraph (a) of subsection (2) after the word " is " there shall be inserted the words " subject to subsection (2A) below " and at the end of that subsection there shall be inserted—
2A
If the retail prices index for the month of December in the last of the seven years referred to in paragraph (c) of subsection (2) above is higher than it was for the month of December in any of the other years referred to in that paragraph, the amount which, for that other year, was the former partner's share of the relevant profits or gains shall be treated for the purposes of that subsection as increased by the same percentage as the percentage increase in the retail prices index.
2
This section has effect in relation to annual payments falling within section 16(1) of the Finance Act 1974 which are income of the year 1982-83 or any subsequent year of assessment.

Share options
40
1
In any case where—
a
for the year 1982-83 or any subsequent year of assessment a person is chargeable to tax under Schedule E, by virtue of section 186 of the Taxes Act (directors and employees of companies granted rights to acquire shares), on an amount equal to a gain realised by the exercise of a right to acquire shares ; and
b
the shares acquired in the exercise of that right were acquired for a consideration which, subject to subsection (2) below, was not less than the market value (determined as for the purposes of the Capital Gains Tax Act 1979) of shares of the same class at the time the right was granted or, if the right was granted before 6th April 1982, 90 per cent, of that market value ; and
c
following an assessment for the year in which that right was exercised (in this section referred to as " the relevant year ") an amount of tax chargeable by virtue of section 186 of the Taxes Act in respect of the amount referred to in paragraph (a) above and exceeding £250 is payable to the collector pursuant to regulations under section 204 of that Act; and
d
the person concerned makes an election in accordance with subsection (3) below,
he shall be entitled to pay tax by instalments in accordance with subsection (4) below.
2
Shares which are acquired for a consideration less than that required by paragraph (b) of subsection (1) above by reason only of a diminution in the market value of shares of that class (determined as aforesaid) which is attributable solely to the share capital of the company issuing the shares being varied after the right to acquire the shares was granted, shall for the purposes of that paragraph be regarded as having been acquired for a consideration not less than that required by that paragraph.
3
An election under this section shall be made by notice in writing to the inspector before the expiry of the period of sixty days beginning immediately after the end of the relevant year.
4
Where an election has been made under this section the tax referred to in subsection (1)(c) above shall, subject to subsections (5) and (6) below, be paid in three equal instalments as follows—
a
the first shall be due and payable at the expiry of the period of fourteen days beginning on the date on which application for the tax is made pursuant to regulations under the said section 204 ;
b
the third shall be due and payable on the last day of the third year following the end of the relevant year; and
c
the second shall be due on such date as falls midway between the dates on which the first and third instalments are due and payable.
5
In any case where the date which, apart from this subsection, would be the due date for the third instalment of tax under subsection (4) above is earlier than the due date referred to in paragraph (a) of that subsection, all three instalments shall be due on the later date.
6
Tax which, by virtue of an election under this section, is not yet due and payable in accordance with subsection (4) above may nevertheless be paid at any time and shall become due and payable forthwith if the person who made the election becomes bankrupt under the law of any part of the United Kingdom.
7
Subject to any other provision of the Income Tax Acts requiring income of any description to be treated as the highest part of a person's income, for the purposes of paragraph (c) of subsection (1) above in determining what tax is chargeable on a person by virtue of section 186 of the Taxes Act in respect of the amount referred to in paragraph (a) of that subsection, that amount shall be treated as the highest part of his income for the relevant year.
8
In Schedule 10 to the Finance Act 1980 (savings-related share option schemes) in paragraph 26 (interpretation) at the end of the definition of " associated company " in sub-paragraph (1) there shall be added the words " except that, for the purposes of paragraph 12 of this Schedule, subsection (1) of that section shall have effect with the omission of the words ' or at any time within one year previously ' ".

Share options etc.: restrictions on insider dealing
41
Paragraph 5 of Schedule 8 to the Finance Act 1973 and paragraph 18 of Schedule 10 to the Finance Act 1980 (certain matters deemed to be restrictions attaching to shares) shall each have effect and shall be deemed always to have had effect as if the references in those paragraphs to any contract, agreement, arrangement or condition did not include a reference to so much of any contract, agreement, arrangement or condition as contains provisions similar in purpose and effect to any of the provisions of the Model Rules set out in the Model Code for Securities Transactions by Directors of Listed Companies issued by the Stock Exchange in April 1981.

Approved profit sharing schemes
42
1
In section 56 of the Finance Act 1978 (capital receipts in respect of approved profit sharing schemes) in subsection (1)—
a
after the words " trustees become ", in each place where they occur, there shall be inserted the words " or the participant becomes ";
b
before the words " the amount or value " there shall be inserted the words " so much of "; and
c
at the end there shall be added the words " as exceeds the appropriate allowance for that year, as determined under subsection (6) below ".
2
For subsection (6) of that section there shall be substituted the following subsection—
6
For the purposes of subsection (1) above, the appropriate allowance for any year of assessment means a sum which, subject to a maximum of £140, is the product of multiplying £20 by 1 plus the number of years which fall within the period of 7 years immediately preceding the year in question and in which shares were appropriated to the participant under the scheme ; and if in any year (and before the release date) the trustees become or the participant becomes entitled, in respect of or by reference to any of his shares, to more than one capital receipt, the receipts shall be set against the appropriate allowance for that year in the order in which they are received.
3
In subsections (1) and (2) of section 58 of the Finance Act 1978 (shares in excess of initial market value of £1,000) for " £1,000 " there shall be substituted " £1,250 ".
4
In paragraph 1(4) of Schedule 9 to that Act (profit sharing schemes to provide that total initial market values of shares appropriated to one participant yearly must not exceed £1,000) for " £1,000 " there shall be substituted " £1,250 ".
5
Subsections (1) and (2) above apply to receipts to which the trustees become or the participant becomes entitled on or after the passing of this Act; subsection (3) above applies in relation to shares appropriated on or after 6th April 1982; and subsection (4) above shall be deemed to have come into force on that date.

Payments for loss of employment etc.
43
1
Schedule 8 to the Taxes Act (tax on payments for loss of employment etc.) shall have effect with the insertion at the beginning of paragraph 7 of the words " Subject to sub-paragraph (2) below " and with the addition, at the end of that paragraph, of the following: —
2
In the case of a payment which exceeds £50,000, this paragraph applies as if it were a payment of £50,000 exactly.
7A
1
Subject to sub-paragraph (2) below, in the case of a payment which exceeds £50,000 and in respect of which tax is chargeable under section 187 of this Act, the following relief shall be allowed by way of deduction from the tax chargeable by virtue of that section, that is to say, there shall be ascertained—
a
the amount of tax which would be chargeable apart from this paragraph and paragraph 7 above in respect of the income of the holder or past holder of the office or employment for the chargeable period of which the payment is treated as income, and
b
the amount of tax which would be so chargeable if the amount of the payment had been £50,000 exactly,
and the amount to be deducted shall be one-quarter of the difference between the amount ascertained at (a) and the amount ascertained at (b).
2
In the case of a payment which exceeds £75,000, this paragraph applies as if it were a payment of £75,000 exactly.
3
Any relief allowed by virtue of this paragraph shall be in addition to that allowed by virtue of paragraph 7 above.
2
This section has effect in relation to any payment which, by virtue of section 187(4) of the Taxes Act, is treated as income received on or after 6th April 1982.

Benefits in kind: vouchers
44
1
Section 36 of the Finance (No. 2) Act 1975 (taxation of benefits in kind provided by means of vouchers other than cash vouchers) shall be amended as follows.
2
In subsection (1)—
a
after the words " in relation to a voucher ", in the passage following paragraph (b), there shall be inserted the words " (other than a cheque voucher) "; and
b
at the end there shall be added the words " ; and in relation to a cheque voucher is the one in which the voucher is handed over in exchange for money, goods or services (a voucher which is posted being treated as handed over at the time of posting). "
3
For subsection (2) there shall be substituted the following subsection—
2
There shall be deductible under section 189, 192 or 194(3) of the Taxes Act (necessary expenses etc.) from the amount taxable under subsection (1) above such amounts, if any, as would have been so deductible if the cost of the goods or services in question had been incurred by the employee out of his emoluments.
4
After subsection (3) there shall be inserted the following subsection—
3A
Subsection (1) above shall not apply in relation to a transport voucher provided for an employee of a passenger transport undertaking under arrangements in operation on 25th March 1982 and intended to enable that employee or a relation of his to obtain passenger transport services provided by—
a
his employer;
b
a subsidiary of his employer ;
c
a body corporate of which his employer is a subsidiary ; or
d
another passenger transport undertaking.
5
For subsections (4) and (4A) there shall be substituted the following subsection—
4
In this section—
- ' cheque voucher ' means a cheque provided for an employee and intended for use by him wholly or mainly for payment for particular goods or services or for goods or services of one or more particular classes; and, in relation to a cheque voucher, references to a voucher being exchanged for goods or services shall be construed accordingly ;
- ' employee ' means the holder of any office or employment the emoluments in respect of which fall to be assessed under Schedule E; and related expressions shall be construed accordingly ;
- ' passenger transport undertaking ' means an undertaking whose business consists wholly or mainly in the carriage of passengers and includes a subsidiary of such an undertaking ;
- ' relation', with respect to an employee, means his spouse, parent or child, the spouse of his child and any dependant of that employee ;
- ' subsidiary' means a wholly owned subsidiary within the meaning of section 150(4) of the Companies Act 1948;
- ' transport voucher' means any ticket, pass or other document or token intended to enable a person to obtain passenger transport services (whether or not in exchange for it); and, in relation to a transport voucher, references to a voucher being exchanged for services shall be construed as references to it being exchanged for, or otherwise used to procure, services;
- ' voucher' does not include a cash voucher within the meaning of section 37 of this Act but, subject to that, means any voucher, stamp or similar document or token capable of being exchanged (whether singly or together with other such vouchers, stamps, documents or tokens and whether immediately or only after a time) for money, goods or services (or for any combination of two or more of those things) and includes a transport voucher and a cheque voucher.
6
After subsection (5) there shall be inserted the following subsection—
5A
Subsections (6) and (7) of section 36A of this Act shall apply for the purposes of this section in relation to vouchers as they apply for the purposes of that section in relation to credit-tokens.
7
This section has effect for the year 1982-83 and subsequent years of assessment.

Benefits in kind: credit-tokens
45
1
Section 36A of the Finance (No. 2) Act 1975 (taxation of benefits in kind provided by means of credit-tokens) shall be amended as follows.
2
In subsection (1), paragraph (a) and, in paragraph (b), the words " (including any interest paid in connection therewith) " shall cease to have effect; and accordingly in subsection (3) for the words " paragraphs (a) and " there shall be substituted the word " paragraph ".
3
For subsection (4) there shall be substituted the following subsections—
4
In this section ' credit-token ' means, subject to subsection (4B) below, a card, token, document or other thing given to a person by another person who undertakes—
a
that on the production of it (whether or not some other action is also required) he will supply money, goods and services (or any of them) on credit; or
b
that where, on the production of it to a third party (whether or not some other action is also required), the third party supplies money, goods and services (or any of them), he will pay the third party for them (whether or not taking any discount or commission).
4A
For the purposes of subsection (4) above, use of an object to operate a machine provided by the person giving the object, or by a third party, shall be treated as production of the object to that person or, as the case may be, third party.
4B
In this section—
- ' credit-token' does not include a voucher within the meaning of section 36, or a cash voucher within the meaning of section 37, of this Act; and
- ' employee ' has the same meaning as in section 36(4) of this Act.
4
This section has effect for the year 1982-83 and subsequent years of assessment.

Benefits in kind: cars and car fuel
46
1
In Chapter III of Part IV of the Finance Act 1981 (benefits in kind)—
a
subsections (2), (4) and (5) of section 68 (which, for the year 1982-83 and subsequent years of assessment, amend section 64 of the Finance Act 1976 with respect to certain benefits relating to cars available for private use) shall be deemed not to have been enacted and, accordingly, the said section 64 shall have effect for the year 1982-83 and subsequent years of assessment without regard to the amendments made by those subsections; and
b
section 69 (new provision relating to car fuel) shall not have effect until the year 1983-84 and, accordingly, in subsection (2) of that section for " 1982-83 " there shall be substituted " 1983-84 ".
2
Subsection (2A) of section 64 of the Finance Act 1976 (removal of double or alternative charges for car and car fuel benefits) shall be amended—
a
by the substitution, for the words from the beginning to " under this section " , of the words " Subject to subsection (2B) below, where in any year the benefit of a car is chargeable to tax under this section as the employee's income " ; and
b
by the substitution, in paragraph (c), for the words " made by him " of the words " made to him " ;
and in section 69(2)(a) of that Act (calculation of emoluments in relation to benefits in kind) after the words " amounts as come " there shall be inserted the words " or would but for section 64(2A) of this Act come ".
3
After the said subsection (2A) there shall be inserted the following subsection: —
2B
If, in the year 1982-83, the benefit of a car is chargeable to tax under this section, subsection (2A) above shall have effect for that year as if—
a
the reference in paragraph (a) to a liability in connection with the car did not include a reference to liability for fuel ;
b
the references in paragraph (b) to goods or services in connection with the car did not include fuel; and
c
the reference in paragraph (c) to expenses incurred in connection with the car did not include expenses incurred in the provision of fuel.
4
In section 64A of the Finance Act 1976 (taxation of amounts equal to value of car fuel benefits), in subsection (1) for the words from " he shall be treated " to the end of the subsection there shall be substituted the words " an amount equal to whatever is the cash equivalent of that benefit in that year shall be treated as emoluments of the employment and, accordingly, shall be chargeable to income tax under Schedule E. " ; and subsections (7) and (8) of that section shall be omitted.
5
Few: the Tables in subsection (2) of the said section 64A there shall be substituted the following Tables: —
TABLE A
Cylinder capacity of car in cubic centimetres | Cash equivalent
1300 or less | £325
More than 1300, but not more than 1800 | £425
More than 1800 | £650
TABLE B
Original market value of car | Cash equivalent
Less than £4,300 | £325
£4,300 or more but less than £6,100 | £425
£6,100 or more | £650
6
In subsection (4) of the said section 64A (power for Treasury by order to vary Tables of cash equivalents for the year 1983-84 and subsequent years) for "1983-84 " there shall be substituted " 1984-85 ".
7
Section 15 of the Taxes Management Act 1970 (returns of employees' emoluments etc.) shall have effect for the year 1982-83 as if the amendments made by section 69 of the Finance Act 1981 (as amended by this section) had effect for that year.

Sub-contractors in the construction industry
47
Chapter II of Part III of the Finance (No. 2) Act 1975 shall have effect subject to the provisions of Schedule 8 to this Act (which authorises the issue of certificates under section 70 of that Act to certain individuals who would not otherwise qualify, and makes certain minor amendments).

Contributions to local enterprise agencies
48
1
Notwithstanding anything in section 130 of the Taxes Act (general rules as to deductions not allowable in computing profits or gains) but subject to the provisions of this section, where a person carrying on a trade, profession or vocation makes any contribution (whether in cash or in kind) to an approved local enterprise agency, any expenditure incurred by him in making the contribution which would not otherwise be so deductible may be deducted as an expense in computing the profits or gains of the trade, profession or vocation for the purposes of tax.
2
Where any such contribution as is referred to in subsection (1) above is made by an investment company, within the meaning of section 304 of the Taxes Act, any expenditure allowable as a deduction under subsection (1) above shall for the purposes of that section be treated as expenses of management.
3
Subsection (1) above does not apply in relation to a contribution made by any person if either he or any person connected with him receives, or is entitled to receive, a benefit of any kind whatsoever for or in connection with the making of that contribution, whether from the agency concerned or from any other person.
4
In this section " approved local enterprise agency " means a body approved by the Secretary of State for the purposes of this section; but the Secretary of State shall not so approve a body unless he is satisfied that—
a
its sole objective is the promotion or encouragement of industrial and commercial activity or enterprise in a particular area in the United Kingdom with particular reference to encouraging the formation and development of small businesses ; or
b
one of its principal objectives is that set out in paragraph (a) above and it maintains or is about to maintain a fund separate from its other funds which is or is to be applied solely in pursuance of that objective ;
and where the Secretary of State approves a body by virtue of paragraph (b) above, the approval shall specify the fund concerned and, in relation to a body so approved, any reference in this section to a contribution is a reference to a contribution which is made wholly to or for the purposes of that fund.
5
A body may be approved under subsection (4) above whether or not it is a body corporate or a body of trustees or any other association or organisation and whether or not it is described as a local enterprise agency; but no body may be so approved unless it is precluded, by virtue of any enactment, contractual obligation, memorandum or otherwise from making any direct or indirect payment or transfer to any of its members or to any person charged with the control and direction of its affairs of any of its income or profit by way of dividend, gift, division, bonus or otherwise howsoever by way of profit (but for this purpose the payment of reasonable remuneration for goods, labour or power supplied, or for services rendered, of reasonable interest for money lent or of reasonable rent for any premises does not constitute a payment or transfer which is required to be so precluded).
6
Any approval given by the Secretary of State may be made conditional upon compliance with such requirements as to accounts, provision of information and other matters as he considers appropriate ; and if it appears to the Secretary of State—
a
that an approved local enterprise agency is not complying with any such requirement, or
b
that one or other of the conditions for his approval contained in subsection (4) above or the precondition for his approval in subsection (5) above has ceased to be fulfilled with respect to an approved local enterprise agency,
he shall by notice in writing withdraw his approval from the body concerned with effect from such date as he may specify in the notice (which may be a date earlier than the date on which the notice is given).
7
In any case where—
a
a contribution has been made to an approved local enterprise agency in respect of which relief has been given under subsection (1) above, and
b
any benefit received in any chargeable period by the contributor or any person connected with him is in any way attributable to that contribution,
the contributor shall in respect of that chargeable period be charged to tax under Case I or Case II of Schedule D or, if he is not chargeable to tax under either of those cases for that period, under Case VI of Schedule D on an amount equal to the value of that benefit.
8
Section 533 of the Taxes Act (connected persons) applies for the purposes of subsections (3) and (7) above.
9
This section applies to contributions made on or after 1st April 1982 and before 1st April 1992.

Relief for interest: loans for investment in close companies
49
1
Paragraphs 9 and 10 of Schedule 1 to the Finance Act 1974 (relief for interest paid on loans for investment in close companies) shall have effect subject to the following provisions of this section.
2
In paragraph 9(1) for the words following sub-paragraph (c) there shall be substituted the words—
and either the conditions stated in sub-paragraph (1) of paragraph 10 below or those stated in sub-paragraph (2) of that paragraph are satisfied.
.
3
In paragraph 10 for all the words preceding sub-paragraph (a) there shall be substituted the following words—
1
The conditions first referred to in paragraph 9 above are—
and the following shall be inserted in paragraph 10 as sub-paragraph (2)—
2
The conditions secondly referred to in paragraph 9 above are-
a
that, when the interest is paid, the company continues to satisfy any of the conditions of paragraph 3A(2) of Schedule 16 to the Finance Act 1972 and the individual holds any part of the ordinary share capital of the company ; and
b
that in the period from the application of the proceeds of the loan to the payment of the interest the individual has worked for the greater part of his time in the actual management or conduct of the company or of an associated company of the company; and
c
that he shows in the period from the application of the proceeds of the loan to the payment of the interest he has not recovered any capital from the company, apart from any amount taken into account under paragraph 13 below.
4
This section has effect in relation to interest paid on or after 10th March 1982.

Relief for pre-trading expenditure
50
In section 39(1) of the Finance Act 1980 (relief for pre-trading expenditure incurred within a year of the time the trader began to carry on the trade) for the words " one year " there shall be substituted the words " three years ".

Investment in new corporate trades
51
1
In section 52 of the Finance Act 1981 (investment in new corporate trades)—
a
in subsection (3) (a) (claim for relief not allowed until company has traded for twelve months) for the words " twelve months " there shall be substituted the words " four months ";
b
in subsection (6) (effect of subsection (3)(a) where company is wound up before expiry of the twelve month period) for the words " twelve months " there shall be substituted the words " four months "; and
c
after subsection (8) there shall be inserted the following subsection—
8A
No account shall be taken of the relief, in so far as it is not withdrawn, in determining whether any sums are excluded by virtue of section 33 of the Capital Gains Tax Act 1979 (exclusion of expenditure by reference to tax on income) from the sums allowable as a deduction in the computation of gains and losses for the purposes of that Act.
2
In section 53 of that Act (limits of the relief) for subsection (2) there shall be substituted the following subsection—
2
The relief shall not be given—
a
to the extent that the amount or total amount subscribed by an individual for ordinary shares issued to him (whether or not by the same company) in the years 1981-82 and 1982-83 exceeds £30,000; and
b
to the extent that the amount or total amount subscribed by an individual for ordinary shares issued to him (whether or not by the same company) in the year 1983-84 exceeds £20,000 ;
but paragraph (a) above shall not authorise relief to be given to an individual in respect of so much of the total amount subscribed by him for shares issued to him in the year 1981-82 as exceeds £10,000.
3
In subsection (7) of section 55 of the Finance Act 1981 (restrictions as to share capital for qualifying company for purposes of section 52 of that Act) for the words " at any time in the relevant period include" there shall be substituted the words " include at any time in the period of three years beginning with the date of issue of the shares in respect of which relief is claimed ".
4
In subsection (1) of section 64 of that Act (reduction of sums allowable as deductions for capital gains tax) for the words from " reduced" to the end of paragraph (b) there shall be substituted the words
determined without regard to that relief, except that where those sums exceed the consideration they shall be reduced by an amount equal to—
a
the amount of that relief, or
b
the excess,
whichever is the less
.

Subsidiaries of qualifying companies
52
1
In subsection (1) of section 65 of the Finance Act 1981 (application of sections 52 to 67 of that Act to subsidiaries) for the words from " did not commence business " to the end there shall be substituted the words
and if any subsidiary commenced business before the qualifying company did so, it was incorporated or (if later) commenced business not more than five years before the date of issue of the shares in respect of which relief is claimed; and
c
the subsidiary or each subsidiary complies with the requirements of subsections (2) to (6) of section 55 above
.
2
In paragraph 2(1) of Schedule 12 to that Act (modification of section 54 of that Act in relation to subsidiaries of qualifying companies) for the words from the beginning to " company if " there shall be substituted the following—
1
In subsections (2), (4) and (6) of section 54, references to the company (except, in each subsection, the first such reference) include references to a company which is during the relevant period a subsidiary of that company, whether it becomes a subsidiary before, during or after the year of assessment in respect of which the individual concerned claims relief and whether or not it is such a subsidiary while he is such an employee, partner or director as is mentioned in subsection (2) or while he has or is entitled to acquire such capital or voting power or rights as are mentioned in subsections (4) and (6).
1B
Without prejudice to the provisions of section 54 (as it has effect in accordance with sub-paragraph (1) above), an individual shall be treated as connected with a company if—
a
he has at any time in the relevant period had control (within the meaning of section 534 of the Taxes Act) of another company which has since that time and before the end of the relevant period become a subsidiary of the company ; or
b
.
3
In paragraph 4 of that Schedule (modification of sections 58 and 59 in relation to subsidiaries of qualifying companies) for the words " a subsidiary of the company " there shall be substituted the words " any company which during the relevant period is a subsidiary of that company, whether it becomes a subsidiary before or after the individual concerned receives any value from it, ".
4
After that paragraph there shall be inserted the following paragraph—
4A
In subsection (2) of section 59 (redemption etc. of shares by company) the references to the company (except the first) shall include references to a company which during the relevant period is a subsidiary of the company whether it becomes a subsidiary before or after the redemption, repayment, repurchase or payment referred to in that subsection.

Purchase of own shares by unquoted trading company
53
1
References in the Corporation Tax Acts to distributions of a company shall not include references to a payment made by a company on the redemption, repayment or purchase of its own shares if—
a
the company is an unquoted company and either a trading company or the holding company of a trading group; and
b
the redemption, repayment or purchase is made wholly or mainly for the purpose of benefiting a trade carried on by the company or by any of its 75 per cent, subsidiaries, and does not form part of a scheme or arrangement the main purpose or one of the main purposes of which is—
i
to enable the owner of the shares to participate in the profits of the company without receiving a dividend, or
ii
the avoidance of tax ; and
c
the conditions in paragraphs 1 to 9 of Schedule 9 to this Act, so far as applicable, are satisfied in relation to the owner of the shares.
2
References in the Corporation Tax Acts to distributions of a company shall not include references to a payment made by a company on the redemption, repayment or purchase of its own shares if—
a
the company is within subsection (1)(a) above, and
b
the whole or substantially the whole of the payment (apart from any sum applied in paying capital gains tax charged on the redemption, repayment or purchase) is applied by the person to whom it is made in discharging a liability of his for capital transfer tax charged on a death, and is so applied within the period of two years after the death ;
but this subsection shall not apply to the extent that the liability could without undue hardship have been discharged otherwise than through the redemption, repayment or purchase of shares in the company or another company within subsection (1)(a) above.
3
Schedule 9 to this Act shall have effect for supplementing this section ; and in that Schedule " the purchase " means the redemption, repayment or purchase referred to in subsection (1) above, and " the vendor " means the owner of the shares at the time it is made.
4
This section has effect in relation to payments made on or after 6th April 1982.

Purchase of company's own shares from dealer
54
1
Where on or after 6th April 1982 a company purchases its own shares from a dealer, the purchase price shall be taken into account in computing the profits of the dealer chargeable to tax under Case I or II of Schedule D ; and accordingly—
a
tax shall not be chargeable under Schedule F in respect of any distribution represented by any part of the price, and
b
the dealer shall not be entitled in respect of the distribution to a tax credit under section 86 of the Finance Act 1972, and
c
sections 232(4) (duty to provide statements) and 239 (distributions not chargeable to corporation tax) of the Taxes Act shall not apply to the distribution.
2
For the purposes of subsection (1) above a person is a dealer in relation to shares of a company if the price received on their sale by him otherwise than to the company would be taken into account in computing his profits chargeable to tax under Case I or II of Schedule D.
3
In subsection (1) above.—
a
the reference to the purchase of shares includes a reference to the redemption or repayment of shares and to the purchase of rights to acquire shares, and
b
the reference to the purchase price includes a reference to any sum payable on redemption or repayment;
but subject to subsection (4) below.
4
Subsection (1) above shall not apply in relation to—
a
the redemption of fixed-rate preference shares, or
b
the redemption, on terms settled or substantially settled before 6th April 1982, of other preference shares issued before that date,
if (in either case) the shares were issued to and continuously held by the person from whom they are redeemed.
5
In this section—
- " fixed-rate preference shares " means shares which—
  1. were issued wholly for new consideration, and
  2. do not carry any right either to conversion into shares or securities of any other description or to the acquisition of any additional shares or securities, and
  3. do not carry any right to dividends other than dividends which—
    1. are of a fixed amount or at a fixed rate percent, of the nominal value of the shares, and
    2. together with any sum paid on redemption, represent no more than a reasonable commercial return on the consideration for which the shares were issued ;
- " new consideration " has the same meaning as in Part X of the Taxes Act; and
- " shares " includes stock.

Application of advance corporation tax on purchase of company's own shares
55
In section 92 of the Finance Act 1972 (setting of company's advance corporation tax in respect of dividends against subsidiary's liability) after subsection (7) there shall be inserted—
7A
References in this section to dividends shall be construed as including references to distributions made on or after 6th April 1982 on the redemption, repayment or purchase by a company of its own shares, and references to the payment of dividends shall be construed accordingly.

Close companies: apportionment of income
56
1
In Schedule 16 to the Finance Act 1972 references to distributions shall be construed as including references to anything that would be a distribution but for one or both of—
a
paragraph 1 of Schedule 18 to the Finance Act 1980 (demergers), and
b
section 53 of this Act.
2
In paragraph 12 of that Schedule, after sub-paragraph (2A) there shall be inserted—
2B
References in sub-paragraphs (1)(a) and (2)(b) above to the redemption or repayment of a company's share capital shall be construed as including references to the purchase by the company of its own shares.
3
This section has effect in relation to events occurring on or after 6th April 1982.

Eurobond dealers: exemption from bond-washing provisions
57
Section 472 of the Taxes Act (application of bond-washing provisions to dealers in securities) shall have effect, and be deemed always to have had effect, with the addition, at the end of the section, of the following subsection: —
5
Subsection (1) of this section shall not apply if the securities are Eurobonds bought by the first buyer in the ordinary course of his trade as a dealer in Eurobonds ; and in this subsection " Eurobond " means a security—
a
which is neither preference stock nor preference share capital; and
b
which is issued in bearer form; and
c
which carries a right to interest either at a fixed rate or at a rate bearing a fixed relationship to a standard published base rate ; and
d
which does not carry a right to any other form of benefit, whether in the nature of interest, participation in profits or otherwise ; and
e
the interest on which is payable without any deduction in respect of income tax or of any tax of a similar character imposed by the laws of a territory outside the United Kingdom ;
but, notwithstanding anything in paragraph (d) above, a security is not prevented from being a Eurobond by reason only that it carries a right to convert into a security of another description or to subscribe for further securities (whether of the same description or not).

Index-linked Treasury Stock
58
1
This section has effect with respect to the following Treasury Stock, namely—
a
2 per cent. Index-linked Treasury Stock 1996 ; and
b
2 per cent. Index-linked Treasury Stock 2006 ; and
c
2½ per cent. Index-linked Treasury Stock 2011;
and in this section any such stock is referred to as " existing index-linked stock ".
2
The variation of the prospectuses relating to existing index-linked stock which was effected by a supplement to those prospectuses dated 9th March 1982 shall not be regarded as having affected the status of such stock as restricted government securities for the purposes of section 41 of the Finance Act 1981 (treatment of any income, gains or losses of insurance companies relating to such securities).
3
Subject to subsection (4) below, on or after 27th March 1982 existing index-linked stock shall not be regarded as restricted government securities for the purposes of section 41 of the Finance Act 1981.
4
If any existing index-linked stock was on 27th March 1982 held by an insurance company against and applied solely towards meeting the liabilities of its pension business, then, if and so long as the stock continues to be so held by that company, it shall continue to be treated as restricted government securities for the purposes of section 41 of the Finance Act 1981.
5
If, on or after 27th March 1982, any existing index-linked stock which on that date was held by an insurance company ceases to be restricted government securities for the purposes of section 41 of the Finance Act 1981, otherwise than by virtue of being actually disposed of or being redeemed, then, on the day on which it so ceases, the stock shall be deemed for the purposes of corporation tax, including, subject to subsection (6) below, corporation tax on chargeable gains, to have been disposed of and immediately re-acquired at its market value on that date.
6
For the purposes of sections 67 and 68 of the Capital Gains Tax Act 1979 (gilt-edged securities)—
a
in ascertaining the date on which securities were acquired, no account shall be taken of any deemed disposal and re-acquisition resulting from subsection (5) above ; and
b
so long as any existing index-linked stock continues, by virtue of subsection (4) above, to be treated on and after 27th March 1982 as restricted government securities for the purposes of section 41 of the Finance Act 1981, it shall be regarded as being stock of a different kind from existing index-linked stock which is not so treated.
7
In this section " insurance company " and " pension business " have the same meaning as in section 323 of the Taxes Act.

Manufactured dividends: extension to certain securities issued by building societies
59
1
In section 477 of the Taxes Act (manufactured dividends: treatment of tax deducted) in subsection (2) (exclusion of cases where interest is payable without deduction of tax) after the word " where ", in the first place where it occurs, there shall be inserted the words " otherwise than by virtue of section 343(3)(a) of this Act ".
2
This section has effect in relation to contracts for the sale of securities entered into after 9th March 1982.

Limitation on meaning of " distribution " for corporation tax
60
1
Any interest or other distribution which—
a
is paid out of the assets of a company (in this section referred to as " the borrower ") on or after the relevant day to another company which is within the charge to corporation tax, and
b
which is so paid in respect of securities of the borrower which fall within any of sub-paragraphs (i) to (iii) and (v) of paragraph (d) of subsection (2) of section 233 of the Taxes Act (meaning of " distribution "),
shall not be a distribution for the purposes of the Corporation Tax Acts unless the application of this subsection is excluded by subsection (2), subsection (3) or subsection (4) below.
2
Subsection (1) above does not apply in a case where the consideration given by the borrower for the use of the principal secured represents more than a reasonable commercial return for the use of that principal; but, where this subsection does apply, nothing in section 23 3 (2) (a) of the Taxes Act shall operate so as to treat as a distribution for the purposes of the Corporation Tax Acts so much of the interest or other distribution as represents a reasonable commercial return for the use of that principal.
3
Subsection (1) above does not apply in the case of any interest or other distribution which is paid in respect of a security of the borrower falling within section 233(2)(d)(iii) of the Taxes Act if—
a
the principal secured does not exceed £100,000 ; and
b
the borrower is under an obligation to repay the principal and interest before the expiry of the period of five years beginning on the date on which the principal was paid to the borrower ; and
c
that obligation either was entered into before 9th March 1982 or was entered into before 1st July 1982 pursuant to negotiations which were in progress on 9th March 1982 ; and
d
where the period for repayment of either principal or interest is extended on or after 9th March 1982 (but paragraph (b) above still applies), the interest or other distribution is paid within the period which was applicable immediately before that date ;
and for the purposes of paragraph (c) above negotiations shall not be regarded as having been in progress on 9th March 1982 unless, before that date, the borrower had applied to the lender for a loan and had supplied the lender with any documents required by him to support the application.
4
Subsection (1) above does not apply in a case where the company to which the interest or other distribution is paid is entitled under any enactment, other than section 239 of the Taxes Act (U.K. company distributions not chargeable to corporation tax), to an exemption from tax in respect of that interest or distribution.
5
In subsection (1)(a) above " the relevant day " means—
a
in the case of any interest or other distribution which is payable before 1st April 1983 pursuant to an obligation entered into before 9th March 1982, 1st April 1983 ; and
b
in any other case, 9th March 1982.
6
This section shall be construed as if it were included in Part X of the Taxes Act.

Maintenance funds for historic buildings: reimbursement of settlor
61
1
This section applies to income arising from settled property in respect of which a direction under section 93 below has effect if the income—
a
is treated by virtue of Part XVI of the Taxes Act as income of the settlor for the year 1982-83 or a subsequent year of assessment, and
b
is applied in reimbursing the settlor for expenditure incurred by him for a purpose within subsection (3)(a)(i) of section 93, and if that expenditure is (or would apart from the reimbursement be) deductible in computing the profits of a trade carried on by the settlor.
2
Income to which this section applies shall not be treated as reducing the expenditure deductible in computing the profits referred to in subsection (1) above, and shall not be regarded as income of the settlor otherwise than by virtue of Part XVI of the Taxes Act.

Maintenance funds: miscellaneous amendments
62
1
Where settled property in respect of which a direction has effect under section 93 below constitutes part only of the property comprised in a settlement, it and the other property shall be treated as comprised in separate settlements for the purposes of the enactments specified in subsection (2) below.
2
The enactments referred to in subsection (1) above are—
a
sections 168 to 173 of the Taxes Act;
b
Part XVI of the Taxes Act;
c
sections 16 and 17 of the Finance Act 1973 ;
d
section 38 of the Finance Act 1977 ;
e
sections 52 and 53 of the Finance Act 1980.
3
Schedule 10 to this Act (which makes amendments relating to maintenance funds) shall have effect.

Sums paid to settlor otherwise than as income
63
1
In section 451 of the Taxes Act (sums paid to settlor otherwise than as income) subsection (1) shall have effect in accordance with subsections (2) and (3) below and shall be presumed so to have had effect in relation to any capital sum paid to the settlor on or after 6th April 1981.
2
In paragraph (b) the amendment made by section 42(2)(c) of the Finance Act 1981 shall be presumed not to have been made and, accordingly, the words following " up to the end of " shall read " the next following year, be treated for the purposes aforesaid as income of the settlor for the next following year ".
3
In the words following paragraph (b) (as amended by section 42(2)(6) of the Finance Act 1981) after the words " each subsequent year " there shall be inserted the words " up to a maximum of ten subsequent years ".
4
Where a capital sum was paid in a relevant year ending before 6th April 1981 (the operative date for sections 42 and 43 of the Finance Act 1981) and the circumstances are such that—
a
subsection (1) of section 451 of the Taxes Act applies to that sum, but
b
on that date the whole or some part of that sum (in this subsection referred to as " the balance ") had not been treated, in accordance with that subsection, as the income of the settlor for any relevant year ending before that date,
the balance shall be deemed for the purposes of that section to have been paid not at the time the capital sum was in fact paid but on 6th April 1981.
5
Expressions used in subsections (1) and (4) above have the same meaning as in section 451(1) of the Taxes Act.

Payments of interest in currencies other than sterling
64
1
In section 131 (2)(c)(ii) (deduction of certain interest payments to non-residents in computing profits or gains) and section 249(1)(c)(ii) (similar provision in relation to corporation tax) of the Taxes Act, for the words " the currency of a territory outside the scheduled territories " there shall be substituted, in each case, the words " a currency other than sterling ".
2
In section 416(1) of the Taxes Act (local authority borrowing in foreign currencies) for the words from " the currency " to " territories " there shall be substituted the words " a currency other than sterling ".
3
Subsection (1) has effect in relation to payments of interest made, and subsection (2) has effect in relation to securities issued, on or after 6th April 1982.

Double taxation relief: interest on certain overseas loans
65
1
This section applies in a case where—
a
in any chargeable period the profits of any person (in this section referred to as " the lender") which are brought into charge to income tax or corporation tax include an amount, computed in accordance with section 503 of the Taxes Act, in respect of interest (in this section referred to as " foreign loan interest") on a loan made to a person resident in a territory outside the United Kingdom; and
b
in determining the liability of the lender to income tax or corporation tax, expenditure related to the earning of the foreign loan interest is deductible in computing the profits referred to in paragraph (a) above ; and
c
the lender is entitled in accordance with Chapter II of Part XVIII of the Taxes Act (double taxation relief) to credit for foreign tax chargeable on or by reference to the foreign loan interest.
2
If, in a case where this section applies, the foreign tax referred to in subsection (1)(c) above is or includes an amount of spared tax, then, for the purposes of income tax or corporation tax, the amount which, apart from this subsection, would be the amount of the foreign loan interest shall be treated as increased by so much of the spared tax as does not exceed the permitted amount, as defined in subsection (3) below; but nothing in this subsection prejudices the operation of section 503 of the Taxes Act in relation to foreign tax which is not spared tax.
3
In this section " spared tax " means foreign tax which, although not payable, falls to be taken into account for the purposes of credit by virtue of section 497(3) of the Taxes Act; and the permitted amount, in relation to spared tax which is referable to the whole or any part of the foreign loan interest, is an amount which does not exceed—
a
15 per cent, of the interest to which the spared tax is referable, computed without regard to any increase under subsection (2) above ; or
b
if it is less, the amount of that spared tax for which, in accordance with any arrangements applicable to the case in question, credit falls to be given as mentioned in subsection (1)(c) above.
4
If, in a case where this section applies.—
a
the foreign tax referred to in subsection (1)(c) above is or includes an amount of tax which is not spared tax, and
b
that amount of tax exceeds the amount of the credit which, by virtue of Chapter II of Part XVIII of the Taxes Act and subsection (5) below, is allowed for that foreign tax against income tax or corporation tax,
then, for the purposes of income tax or corporation tax, the amount which, apart from this subsection, would be the amount of the foreign loan interest shall be treated as reduced by a sum equal to the excess.
5
Where this section applies, the amount of the credit for foreign tax referred to in subsection (1)(c) above which, in accordance with Chapter II of Part XVIII of the Taxes Act, is to be allowed against income tax or corporation tax shall not exceed 15 per cent, of the foreign loan interest, computed without regard to any increase under subsection (2) or any reduction under subsection (4) above.
6
This section shall be construed as if it were included in Chapter II of Part XVIII of the Taxes Act.
7
Where the loan on which the foreign loan interest is payable was made pursuant to an agreement entered into before 1st April 1982, this section does not apply in relation to interest payable before 1st April 1983, but subject thereto, this section applies in relation to interest payable on or after 1st April 1982.

Double taxation relief: underlying tax reffecting interest on loans
66
1
This section applies in a case where
a
a bank or a company connected with a bank makes a claim for an allowance by way of credit in accordance with Chapter II of Part XVIII of the Taxes Act; and
b
the claim relates to underlying tax on a dividend paid by the overseas company, within the meaning of section 508 of that Act; and
c
that underlying tax is or includes tax payable under the law of a territory outside the United Kingdom on or by reference to interest on a loan made in the course of its business by that overseas company or by such a third, fourth or successive company as is referred to in subsection (2) or subsection (3) of that section; and
d
if the company which made the loan had been resident in the United Kingdom, then, in determining its liability to corporation tax, expenditure related to the earning of the interest on the loan would be deductible in computing the profits of the company brought into charge to tax.
2
If, in a case where this section applies, the underlying tax is or includes an amount of spared tax, then, for the purposes of corporation tax, the amount which, apart from this subsection, would be the amount of the dividend shall be treated as increased by an amount equal to so much of that spared tax as does not exceed the permitted amount, as defined in subsection (3) below; but nothing in this subsection prejudices the operation of section 503 of the Taxes Act in relation to foreign tax which is not spared tax.
3
In this section " spared tax " has the same meaning as in section 65 above; and the permitted amount, in relation to spared tax which is referable to the whole or any part of the interest referred to in subsection (1)(c) above, is an amount which does not exceed—
a
15 per cent, of the interest to which that spared tax is referable ; or
b
if it is less, the amount of that spared tax which under any arrangements is to be taken into account for the purpose of allowing credit against corporation tax in respect of the dividend concerned.
4
If, in a case where this section applies.—
a
the underlying tax is or includes an amount of tax which is not spared tax, and
b
that amount of tax exceeds 15 per cent, of the interest to which it is referable, then, for the purposes of corporation tax, the amount which,
apart from this subsection, would be the amount of the dividend shall be treated as reduced by a sum equal to the excess.
5
Where this section applies, the amount of the credit referred to in paragraph (a) of subsection (1) above which is referable to the underlying tax payable as mentioned in paragraph (c) of that subsection shall not exceed 15 per cent, of so much of the interest referred to in that paragraph as is included in the relevant profits of the company paying the dividend; and for the purposes of this subsection—
a
" relevant profits " has the same meaning as, by virtue of section 506 of the Taxes Act, it has for the purposes of the computation of underlying tax ; and
b
the amount of the interest shall be determined without making any deduction in respect of any foreign tax.
6
In subsection (1) above " bank " means a company carrying on, in the United Kingdom or elsewhere.—
a
a banking business ; or
b
another business which includes the making of loans where the circumstances of the business are such that, in determining the liability of the company to corporation tax, expenditure related to the earning of the interest on those loans is deductible in computing the profits brought into charge to tax ;
and section 533 of the Taxes Act (connected persons) applies for the purposes of subsection (1) above.
7
This section shall be construed as if it were included in Chapter II of Part XVIII of the Taxes Act.
8
Where the loan referred to in subsection (1)(c) above was made pursuant to an agreement entered into before 1st April 1982 this section does not apply to any underlying tax which is referable to interest on that loan payable before 1st April 1983 but, subject thereto, this section applies where the underlying tax is referable to interest payable on or after 1st April 1982.

Double taxation relief: branches of non-resident banks
67
At the end of paragraph (b) of the proviso to section 502 of the Taxes Act (exceptions, in relation to unilateral relief, from the requirement that the person claiming relief must be resident in the United Kingdom) there shall be added
and
c
for tax paid under the law of any territory in respect of interest on a loan where the following conditions are fulfilled, namely.—
i
that the person in question is a company which, for the chargeable period in question, carries on a banking business in the United Kingdom through a branch or agency ; and
ii
that the loan was made by the company through the branch or agency in the United Kingdom ; and
iii
that the territory under whose law the tax was paid is not one in which the company is liable to tax by reason of domicile, residence or place of management; and
iv
that the amount of relief claimed does not exceed (or is by the claim expressly limited to) that which would have been available if the branch or agency had been a company resident in the United Kingdom and the loan had been made by it in the course of its banking business.

Postponement of recovery of tax
68
1
In section 55 of the Taxes Management Act 1970 (postponement of recovery of tax) in subsection (2) for the words " If no application is made under subsection (3) below " there shall be substituted the words " Except as otherwise provided by the following provisions of this section ".
2
After subsection (3) of that section there shall be inserted the following subsection—
3A
An application under subsection (3) above may be made more than thirty days after the date of the issue of the notice of assessment if there is a change in the circumstances of the case as a result of which the appellant has grounds for believing that he is over-charged to tax by the assessment.
3
In subsection (6) of that section (determination of application) in paragraph (a) after the words " subsection (3) above " there shall be inserted the words " other than an application made by virtue of subsection (3A) above ".
4
This section has effect in relation to notices of assessment to tax issued after the passing of this Act.

Interest on unpaid tax
69
1
In section 86 of the Taxes Management Act 1970 (interest on overdue tax) in subsection (3) (date when interest becomes payable)—
a
the following paragraph shall be inserted after paragraph (a)—
aa
in relation to any tax payable in accordance with the determination of an appeal against an assessment but which had not been charged by the assessment, the date which if it had been charged would by virtue of paragraph (a) above have been the reckonable date; and
;
and
b
in paragraph (b) after the words " paragraph (a)" there shall be inserted the words " or paragraph (aa) ".
2
This section has effect in relation to notices of assessment to tax issued after the passing of this Act.
CHAPTER II

Capital Allowances

Allowances for assets leased outside the United Kingdom
70
1
The provisions of this section have effect with respect to expenditure on the provision of machinery or plant for leasing where the machinery or plant is at any time in the requisite period used for the purpose of being leased to a person who—
a
is not resident in the United Kingdom, and
b
does not use the machinery or plant for the purposes of a trade carried on there or for earning profits or gains chargeable to tax by virtue of section 38(4) of the Finance Act 1973,
and where the leasing is not short-term leasing.
2
In its application to expenditure falling within subsection (1) above, section 44 of the Finance Act 1971 (writing-down allowances and balancing adjustments) as it has effect—
a
in accordance with section 65 of the Finance Act 1980 (assets leased in the course of a trade), or
b
in accordance with paragraph 6 of Schedule 8 to the Finance Act 1971 (effect of subsidies towards wear and tear of assets), or
c
in accordance with paragraph 10 of that Schedule (cars costing more than £8,000), or
d
with respect to any motor car to which paragraph 11 of that Schedule applies (contributions towards expenditure on cars costing more than £8,000), or
e
with respect to machinery or plant to which section 46 of the Finance Act 1971 applies (assets leased otherwise than in the course of a trade),
shall have effect, subject to subsection (4) below, as if the reference in subsection (2) of section 44 to 25 per cent, were a reference to 10 per cent.
3
In any case where—
a
machinery or plant is used for the purpose of being leased to such a person as is referred to in paragraphs (a) and (b) of subsection (1) above, and
b
the circumstances are such that the machinery or plant is used otherwise than for a qualifying purpose, within the meaning of section 64 of the Finance Act 1980 (exclusion of first-year allowances for certain leased assets),
any question whether that use falls within the requisite period, as defined in subsection (8) of that section, shall be determined as if, for each reference in that subsection to four years, there were substituted a reference to ten years; and any reference to the requisite period in sections 66 and 67 of that Act shall be construed accordingly.
4
No first year allowances, balancing allowances or writing-down allowances shall be available in respect of expenditure falling within subsection (1) above if the circumstances are as mentioned in subsection (3) (b) above and—
a
there is a period of more than one year between the dates on which any two consecutive payments become due under the lease ; or
b
any payments other than periodical payments are due under the lease or under any agreement which might reasonably be construed as being collateral to the lease; or
c
disregarding variations made under the terms of the lease which are attributable to—
i
changes in the rate of corporation tax or income tax, or
ii
changes in the rate of capital allowances, or
iii
changes in any rate of interest where the changes are linked to changes in the rate of interest applicable to inter-bank loans, or
iv
changes in the premiums charged for insurance of any description by a person who is not connected with the lessor or the lessee,
any of the payments due under the lease or under any such agreement as is referred to in sub-paragraph (b) above, expressed as monthly amounts over the period for which that payment is due, is not the same as any other such payment expressed in the same way ; or
d
either the lease is expressed to be for a period which exceeds thirteen years or there is, in the lease or a separate agreement, provision for extending or renewing the lease or for the grant of a new lease so that, by virtue of that provision, the machinery or plant could be leased for a period which exceeds thirteen years; or
e
at any time the lessor or a person connected with him will, or may in certain circumstances, become entitled to receive from the lessee or any other person a payment, other than a payment of insurance moneys, which is of an amount determined before the expiry of the lease and which is referable to a value of the machinery or plant at or after that expiry (whether or not the payment relates to a disposal of the machinery or plant).
5
Where a first year allowance, a balancing allowance or a writing-down allowance has been made in respect of expenditure incurred in providing machinery or plant and, at any time in the requisite period, an event occurs such that, by virtue of subsection (4) above, there is no right to that allowance, an amount equal to any such allowance which has previously been given (less any excess reliefs previously recovered by the operation of section 66 of the Finance Act 1980) shall, in relation to the person to whom the machinery or plant belongs immediately before the occurrence of that event, be treated as if it were a balancing charge to be made on him for the chargeable period in which, or in the basis period for which, the machinery or plant is used at the time that event occurs.
6
Subsections (3) and (4) of section 66 of the Finance Act 1980 apply in relation to the allowances mentioned in subsection (5) above as they apply in relation to the allowances mentioned in subsection (2) of that section.
7
In subsection (1) above " short-term leasing " has the same meaning as in subsection (2)(b) of section 64 of the Finance Act 1980, and in subsection (3) of that section (which defines that expression) at the beginning of sub-paragraph (ii) of paragraph (b), there shall be inserted the words " subject to subsection (3A) below " and at the end of that subsection there shall be added—
3A
In a case where the requisite period exceeds four years the reference in subsection (3)(b)(ii) above to that period shall be construed as a reference to any period of four consecutive years which falls within the requisite period.
8
The provisions of Schedule 11 to this Act shall have effect for supplementing the preceding provisions of this section.
9
In subsections (1) and (5) above " the requisite period " has the same meaning as, in a case where subsection (3) above applies, it has in sections 64 to 68 of the Finance Act 1980 ; and section 73 of that Act (interpretation), with the exception of subsection (4) thereof, has effect in relation to the preceding provisions of this section and the provisions of Schedule 11 to this Act—
a
as if those provisions were comprised in the foregoing provisions of Chapter II of Part III of that Act; and
b
as if the reference in subsection (1) of that section to section 72 of that Act included a reference to subsection (10) below.
10
Subject to subsection (11) below, this section applies to expenditure incurred on or after 10th March 1982 unless—
a
the expenditure consists of the payment of sums payable under a contract entered into before that date by the person incurring the expenditure ; or
b
the expenditure consists of the payment of sums payable under a contract entered into not later than 31st March 1984 and the conditions in subsection (12) below are fulfilled;
and, in either case, the machinery or plant concerned is brought into use not later than 31st March 1985.
11
In its application to subsections (4) to (6) above, subsection (10) above has effect as if for the references to 10th March 1982 there were substituted references to 23rd June 1982.
12
The conditions referred to in paragraph (b) of subsection (10) above are—
a
that the expenditure referred to in that paragraph is incurred in fulfilment of arrangements (not necessarily amounting to contractual obligations) under which the person incurring the expenditure (in this subsection referred to as " the lessor ") would lease the machinery or plant in question to another person (in this subsection referred to as " the lessee "); and
b
that those arrangements were in existence on 10th March 1982 and are evidenced by writing dating from a time before that date ; and
c
that, in reliance upon the arrangements and before 10th March 1982, the lessee had entered into a contract with a third party (in this subsection referred to as " the supplier ") to incur expenditure on the provision of the machinery or plant in question ; and
d
that, pursuant to the arrangements.—
i
the obligations of the lessee under the contract referred to in paragraph (c) above are, before 31st March 1984, either taken over by the lessor or discharged on the lessor entering into a new contract with the supplier ; or
ii
the lessee purchases the machinery or plant in question and transfers it to the lessor before 8th July 1982; and
e
that, on or before 31st March 1984, the lessor enters into a contract to lease the machinery or plant to the lessee; and
f
that, disregarding any use before 8th July 1982, the machinery or plant in question is not brought into use by the lessee before it is leased to him by the lessor; and
g
that the lessor and the lessee are not connected persons and neither of them is connected with the supplier;
and section 533 of the Taxes Act (connected persons) applies for the purposes of this section.

Restriction on first-year allowances in respect of ships and aircraft let on charter
71
1
In subsection (5) of section 64 of the Finance Act 1980 (first-year allowances to be available in respect of ships and aircraft let out on certain charters) after the words " subsection (2) above " there shall be inserted the words " but subject to subsection (6A) below ".
2
At the end of subsection (6) of that section there shall be inserted the following subsection: —
6A
Subsection (5) above does not apply if the main object, or one of the main objects, of the letting of the ship or aircraft on charter, or of a series of transactions of which the letting on charter was one, or of any of the transactions in such a series was to obtain a first-year allowance in respect of expenditure incurred on the provision of the ship or aircraft, whether by the person referred to in subsection (5) (a) above or some other person.
3
This section applies in relation to expenditure incurred on or after 10th March 1982 unless—
a
the expenditure consists of the payment of sums payable under a contract entered into before that date by the person incurring the expenditure ; and
b
the ship or aircraft concerned is brought into use not later than 31st March 1984.

Expenditure on production and acquisition of films etc.
72
1
Expenditure which—
a
is incurred on or after 10th March 1982 on the production or acquisition of a film, tape or disc, and
b
would, apart from this subsection, constitute capital expenditure on the provision of machinery or plant for the purposes of Chapter I of Part III of the Finance Act 1971 (first-year and other allowances in respect of machinery and plant),
shall be regarded for the purposes of the Tax Acts as expenditure of a revenue nature unless it is expenditure falling within subsection (7) below.
2
In this section—
a
any reference to a film is (except where, in subsection (8) below, the context otherwise requires) a reference to an original master negative of the film and its soundtrack (if any);
b
any reference to a tape is a reference to an original master film tape or original master audio tape ; and
c
any reference to a disc is a reference to an original master film disc or original master audio disc;
and any reference to the acquisition of a film, tape or disc includes a reference to the acquisition of any description of rights in a film, tape or disc.
3
Subject to the following provisions of this section, in computing the profits or gains accruing to any person from a trade or business which consists of or includes the exploitation of a film, tape or disc, expenditure which—
a
is incurred on or after 10th March 1982 on the production or acquisition of a film, tape or disc, and
b
is expenditure of a revenue nature (whether by virtue of subsection (1) above or otherwise),
shall be allocated to relevant periods in accordance with subsection (4) below ; and in this subsection and subsection (4) below " relevant period " means a period for which the accounts of the trade or business concerned are made up or, if those accounts are not made up for any period, a period the profits or gains of which are taken into account in assessing the income of the trade or business for any chargeable period.
4
The amount of expenditure falling within subsection (3) above which falls to be allocated to any relevant period shall be such as is just and reasonable, having regard to—
a
the amount of that expenditure which remains un allocated at the beginning of that period;
b
the proportion which the estimated value of the film, tape or disc which is realised in that period (whether by way of income or otherwise) bears to the aggregate of the value so realised and the estimated remaining value of the film, tape or disc at the end of that period ; and
c
the need to bring the whole of the expenditure falling within subsection (3) above into account over the time during which the value of the film, tape or disc is expected to be realised.
5
Subsections (3) and (4) above do not apply to the profits or gains of a trade in which the film, tape or disc concerned constitutes trading stock, as defined in section 137(4) of the Taxes Act.
6
In a case where any expenditure on the production or acquisition of a film, tape or disc is expenditure to which subsection (1) above applies, sums received from the disposal of that film, tape of disc shall be regarded for the purposes of the Tax Acts as receipts of a revenue nature (if they would not be so regarded apart from this subsection); and the reference in this subsection to sums received from the disposal of any film, tape or disc shall be construed as including—
a
sums received from the disposal of any interest or right in or over the film, tape or disc, including an interest or right created by the disposal; and
b
insurance or compensation moneys and other moneys of a like nature which are derived from the film, tape or disc.
7
The preceding provisions of this section do not apply to expenditure which is incurred by any person on or before 31st March 1984 if it consists of the payment of sums payable under a contract entered into by him before 10th March 1982 or it is incurred—
a
by a person who carries on a trade or business which consists of or includes the exploitation of films, tapes or discs; and
b
on the production or acquisition of a film, tape or disc which is certified by the Secretary of State for the purposes of this section as a qualifying film, tape or disc and the value of which is expected to be realisable over a period of not less than two years.
8
The Secretary of State shall not certify a film, tape or disc as a qualifying film, tape or disc for the purposes of this section unless he is satisfied that it is the master negative, master tape or master disc of a film which, in his opinion.—
a
is an eligible film for the purposes of regulations made or having effect as if made under section 6 of the Film Levy Finance Act 1981 (payments by the British Film Fund Agency to the makers of British films) and in force immediately before the passing of this Act; or
b
would be such an eligible film if it were not a television film within the meaning of those regulations.
9
In this section " expenditure of a revenue nature " means expenditure which, if it were incurred in the course of a trade the profits or gains of which are chargeable to tax under Case i of Schedule D, would be taken into account for the purpose of computing the profits, gains or losses of the trade; and " receipts of a revenue nature" means receipts which, if they were receipts of such a trade, would be taken into account for that purpose.

Industrial buildings allowance: very small workshops
73
1
Chapter I of Part I of the Capital Allowances Act 1968 (industrial buildings allowances) shall apply with the modifications specified in paragraphs 1 to 3 of Schedule 13 to the Finance Act 1980 in relation to capital expenditure on the construction of an industrial building to which this section applies if the expenditure is incurred after 26th March 1983 and before 27th March 1985.
2
This section applies to an industrial building if the gross internal floor space of the whole building will not exceed 1,250 square feet.
3
Subsections (3) to (6) of section 75 of the Finance Act 1980 (small workshops allowance) shall apply for the purposes of this section as they apply for the purposes of that section and accordingly—
a
in subsection (3) the reference to subsection (2) of that section shall be construed as including a reference to subsection (2) of this section ; and
b
in subsections (4) and (5) the references to subsection (1) of that section shall be construed as including a reference to subsection (1) of this section.
4
The Tax Acts shall have effect as if this section were contained in Chapter I of Part I of the said Act of 1968.

Industrial buildings allowance: licensees
74
1
In section 1 of the Capital Allowances Act 1968 (initial allowances) the following subsection shall be inserted after subsection (1)—
1A
The reference in subsection (1) above to the occupation of a building or structure for the purposes of a trade carried on by the person who incurred the capital expenditure on that building or structure shall include a reference to the use of that building or structure for the purposes of a trade carried on by a licensee of that person or of a lessee of that person.
2
Section 6 of that Act (method of making allowances and charges) shall apply where the building or structure in question is used by a licensee of the person entitled to the relevant interest as if that interest were subject to a lease.
3
In section 7 of that Act (definition of " industrial building or structure ") the following subsection shall be inserted after subsection (3)—
3A
Where a building or structure is used by more than one licensee of the same person that building or structure shall not be an industrial building or structure unless each of the licensees uses the building or that part of it to which his licence relates for the purposes of a trade which falls within subsection (1) above.
4
Subsections (1) and (3) above shall apply in relation to licences granted on or after 10th March 1982.

Industrial buildings allowance: maintenance of goods etc.
75
1
In section 7 of the Capital Allowances Act 1968 (definition of " industrial building or structure ") the following subsection shall be inserted after subsection (2)—
2A
The reference in paragraph (e) of subsection (1) above to the subjection of goods or materials to any process shall include a reference to the maintaining or repairing of any goods or materials but, notwithstanding subsection (2) above, paragraph (e) shall not apply to the maintenance or repair by any person of goods or materials employed by that person in any trade or undertaking unless that trade or undertaking itself falls within any of the paragraphs of that subsection (including paragraph (e)).
2
In subsection (3) of that section (retail shops etc. not to constitute industrial buildings or structures) for the words " subsection (1) or subsection (2)" there shall be substituted the words " the preceding provisions ".
3
This section shall be deemed to have come into force on 10th March 1982.

Allowances for dwelling houses let on assured tenancies
76
1
The provisions of Schedule 12 to this Act shall have effect to provide for reliefs in respect of expenditure incurred on the construction of buildings consisting of or including dwelling-houses let on assured and certain other tenancies.
2
Schedule 12 to this Act has effect only where the expenditure concerned is incurred on or after 10th March 1982 and before 1st April 1987 or is deemed to have been so incurred by virtue of paragraph 8 of that Schedule.

Teletext receivers and teletext and viewdata adaptors
77
1
Paragraph 7 of Schedule 12 to the Finance Act 1980 (transitional period for 100 per cent, first year allowances for television sets) shall be amended in accordance with the following provisions of this section.
2
In sub-paragraph (2) (definition of "the transitional period ") in paragraph (a) after the words " other than " there shall be inserted the words " a teletext receiver or " and at the end of paragraph (a) there shall be inserted: —
aa
in relation to expenditure on the provision of a teletext receiver, the period of five years beginning with that date
.
3
In sub-paragraph (3) (definition of "viewdata receiver") after the words " television set" in the first place where they occur, there shall be inserted the words " which is not a teletext receiver but which is " and the words from "and a television set" to the end of the sub-paragraph shall be omitted.
4
After sub-paragraph (3) there shall be inserted the following sub-paragraphs:—
4
In this Part of this Schedule " a teletext receiver " means a television set—
a
which is constructed for receiving teletext transmissions, that is to say, transmissions intended for general reception and consisting of a succession of visual displays (with or without accompanying sound) each capable of being selected and held for separate viewing or other use; and
b
which is not also constructed for displaying information received as mentioned in sub-paragraph (3) above.
5
In relation to expenditure incurred after 9th March 1982—
a
this Part of this Schedule, other than sub-paragraph (6) below, shall have effect as if any reference to a television set included a reference to a teletext adaptor or a viewdata adaptor; and
b
sub-paragraph (2) above shall have effect as if any reference to a teletext receiver included a reference to a teletext adaptor and as if any reference to a viewdata receiver included a reference to a viewdata adaptor.
6
In this Part of this Schedule
a
" teletext adaptor " means a device external to a television set which, after it is connected to that television set, allows the set to display transmissions in the same manner as a teletext receiver; and
b
" viewdata adaptor" means a device external to a television set which, after it is connected to that television set, allows the set to display information received in the same manner as a viewdata receiver.

Extension of section 515 relief to Case V of Schedule D
78
1
In section 515(1) of the Taxes Act (postponement of capital allowances to secure double taxation relief) for the words " tax in respect of a trade under Case I of Schedule D " there shall be substituted the words " tax under Schedule D in respect of a trade ".
2
This section applies in relation to claims made on or after 6th April 1982.

Capital allowances and stock relief
79
1
This section applies in any case where a person is entitled to an allowance or relief for a year of assessment and—
a
he and the inspector have come to an agreement, in writing, as to the extent to which the allowance or relief is to be given effect in that year (whether by deduction from profits or gains or by discharge or repayment of tax, or both); and
b
no assessment giving effect to the allowance or relief is made for that year.
2
In a case to which this section applies the allowance or relief shall be taken to have been given effect in the year of assessment in question, as if an assessment had been made, to the extent set out in the agreement mentioned in subsection (1) above.
3
In this section—
- " allowance " means an allowance to which section 70 or 71 of the Capital Allowances Act 1968 applies (income tax allowances in taxing a trade); and
- " relief " means a relief to which Part II of Schedule 9 to the Finance Act 1981 applies (income tax: stock relief).
4
This section has effect in relation to agreements made on or after 6th April 1982.
CHAPTER III

Capital Gains

Increase and indexation of annual exempt amount
80
1
In section 5 of the Capital Gains Tax Act 1979 (exemption for first £3,000 of gains)—
a
for " £3,000 ", in each place where it occurs, there shall be substituted " the exempt amount for the year "; and
b
for " £5,000", where it occurs in subsection (5)(M, there shall be substituted " an amount equal to twice the exempt amount for the year. "
2
After subsection (1) of that section there shall be inserted the following subsections—
1A
Subject to subsection (1B) below, the exempt amount for any year of assessment shall be £5,000.
1B
If the retail prices index for the month of December preceding the year 1983-84 or any subsequent year of assessment is higher than it was for the previous December, then, unless Parliament otherwise determines, subsection (1A) above shall have effect for that year as if for the amount specified in that subsection as it applied for the previous year (whether by virtue of this subsection or otherwise) there were substituted an amount arrived at by increasing the amount for the previous year by the same percentage as the percentage increase in the retail prices index and, if the result is not a multiple of £100, rounding it up to the nearest amount which is such a multiple.
1C
The Treasury shall, before the year 1983-84 and each subsequent year, make an order specifying the amount which by virtue of this section is the exempt amount for that year; and any such order shall be made by statutory instrument
.
3
In Schedule 1 to that Act
a
the heading shall be changed to " APPLICATION OF EXEMPT AMOUNT IN PARTICULAR CASES ";
b
for the words " the amount of £3,000 ", where they occur in paragraphs 2(1) and 5(1D), and for " £3,000 " in every other place where it occurs, there shall be substituted the words " the exempt amount for the year ";
c
for " £300 ", where it occurs in paragraphs 5(1B) and 6(4), there shall be substituted the words " one tenth of that exempt amount ";
d
for " £1,500 ", in each place where it occurs in sub-paragraphs (2) and (4) of paragraph 6, and for " the amount of £1,500 ", where it occurs in sub-paragraph (6) of that paragraph, there shall be substituted the words " one half of the exempt amount for the year "; and
e
in sub-paragraph (3) of paragraph 6 for the words from " £5,000 " onwards there shall be substituted the words " ' twice the exempt amount for the year' of ' one half of the exempt amount for the year' and ' the exempt amount for the year ' respectively ".
4
In section 24(8) of the Finance Act 1980 (definition of " retail prices index " for the purposes of the Income Tax Acts) after the word " Acts " in each place where it occurs, there shall be inserted the words " or the Capital Gains Tax Act 1979 ".
5
This section has effect for the year 1982-83 and subsequent years of assessment.

Increase of chattel exemption
81
1
In the following enactments, namely.—
a
section 128 of the Capital Gains Tax Act 1979 (chattel exemption by reference to consideration of £2,000),
b
section 12(2)(6) of the Taxes Management Act 1970 (information about assets acquired), and
c
section 25(7) of that Act (information about assets disposed of),
for " £2,000 ", in each case where it occurs, there shall be substituted " £3,000 ".
2
This section applies to disposals on or after 6th April 1982 and, accordingly, in relation to subsection (1)(b) above, to assets acquired on or after that date.

Extension of general relief for gifts
82
1
Section 79 of the Finance Act 1980 (which gives relief for disposals between individuals and, by virtue of section 78 of the Finance Act 1981, disposals by individuals to trustees) shall have effect as if references to an individual included references to the trustees of a settlement; but a claim for relief under that section in respect of a disposal to the trustees of a settlement shall be made by the transferor alone (instead of by the transferor and the transferee).
2
In subsection (4) of that section, the words from " or " onwards shall cease to have effect.
3
In subsection (5) of that section—
a
in paragraph (a), for the words from " chargeable " to " purposes " there shall be substituted the words " attributable to the value of the asset "; and
b
the words from " and where " onwards shall cease to have effect.
4
In section 78 of the Finance Act 1981 (subsections (1) and (3) of which are superseded by this section) in subsection (2) for the words " that section " there shall be substituted the words " section 79 of the Finance Act 1980 ".
5
This section applies to disposals on or after 6th April 1982.

Relief on compulsory purchase
83
After section 111 of the Capital Gains Tax Act 1979 there shall be inserted the following sections—

Rollover relief on compulsory acquisition.
111A
1
This section applies where—
a
on or after 6th April 1982 land (in this section referred to as " the old land ") is disposed of by any person (in this section referred to as " the landowner ") to an authority exercising or having compulsory powers; and
b
the landowner did not take any steps, by advertising or otherwise, to dispose of the old land or to make his willingness to dispose of it known to the authority or others ; and
c
the consideration for the disposal is applied by the landowner in acquiring other land (in this section referred to as " the new land ") not being land excluded from this paragraph by section 11 IB below.
2
Subject to section 11 IB below, in a case where the whole of the consideration for the disposal was applied as mentioned in subsection (1)(c) above, the landowner, on making a claim as respects the consideration so applied, shall be treated for the purposes of this Act—
a
as if the consideration for the disposal of the old land were (if otherwise of a greater amount or value) of such amount as would secure that on the disposal neither a gain nor a loss accrues to him ; and
b
as if the amount or value of the consideration for the acquisition of the new land were reduced by the excess of the amount or value of the actual consideration for the disposal of the old land over the amount of the consideration which he is treated as receiving under paragraph (a) above.
3
If part only of the consideration for the disposal of the old land was applied as mentioned in subsection (1)(c) above, then, subject to section 11 IB below, if the part of the consideration which was not so applied (in this subsection referred to as " the unexpended consideration ") is less than the amount of the gain (whether all chargeable gain or not) accruing on the disposal of the old land, the landowner, on making a claim as respects the consideration which was so applied, shall be treated for the purposes of this Act—
a
as if the amount of the gain so accruing were reduced to the amount of the unexpended consideration (and, if not all chargeable gain, with a proportionate reduction in the amount of the chargeable gain); and
b
as if the amount or value of the consideration for the acquisition of the new land were reduced by the amount by which the gain is reduced (or, as the case may be, the amount by which the chargeable gain is proportionately reduced) under paragraph (a) above.
4
Nothing in subsection (2) or subsection (3) above affects the treatment for the purposes of this Act of the authority by whom the old land was acquired or of the other party to the transaction involving the acquisition of the new land.
5
For the purposes of this section—
a
subsection (2) of section 115 below shall apply in relation to subsection (2) (a) and subsection (2) (b) above as it applies in relation to subsection (1)(a) and subsection (1)(b) of that section ; and
b
subsection (3) of that section shall apply as if any reference to the new assets were a reference to the new land, any reference to the old assets were a reference to the old land and any reference to that section were a reference to this.
6
Where this section applies, any such amount as is referred to in subsection (2) of section 110 above shall be treated as forming part of the consideration for the disposal of the old land and. accordingly, so much of that subsection as provides for a deemed disposal of other land shall not apply.
7
The provisions of this Act fixing the amount of the consideration deemed to be given for the acquisition or disposal of assets shall be applied before this section is applied.
8
In this section—
- " land " includes any interest in or right over land; and
- " authority exercising or having compulsory powers " shall be construed in accordance with section 108(5) above.

Provisions supplementary to section 111A.
111B
1
Land is excluded from paragraph (c) of subsection (1) of section 111A above if—
a
it is a dwelling-house or part of a dwelling house (or an interest in or right over a dwelling-house), and
b
by virtue of, or of any claim under, any provision of sections 101 to 105 above (private residences) the whole or any part of a gain accruing on a disposal of it by the landowner at a material time would not be a chargeable gain;
and for the purposes of this subsection " a material time " means any time during the period of six years beginning on the date of the acquisition referred to in the said paragraph (c).
2
If, at any time during the period of six years referred to in subsection (1) above, land which at the beginning of that period was not excluded from section 111A(1)(c) above by virtue of that subsection becomes so excluded, the amount of any chargeable gain accruing on the disposal of the old land shall be redetermined without regard to any relief previously given under section 111A above by reference to the amount or value of the consideration for the acquisition of that land; and all such adjustments of capital gains tax, whether by way of assessment or otherwise, may be made at any time, notwithstanding anything in section 34 of the Taxes Management Act 1970 (time limit for assessments).
3
Where the new land is a depreciating asset, within the meaning of section 117 below, that section has effect as if—
a
any reference in subsection (1) or subsection (3) to section 115 or section 116 were a reference to subsection (2) or subsection (3) respectively of section 111A above ; and
b
paragraph (b) of subsection (2) were omitted ; and
c
the reference in subsection (4) to section 115(3) were a reference to that provision as applied by section 111A(5) above.
4
No claim may be made under section 108 above in relation to a transfer which constitutes a disposal in respect of which a claim is made under section 111A above.
5
Expressions used in this section have the same meaning as in section 111 A above.

Termination of life interest etc.
84
1
In section 55 of the Capital Gains Tax Act 1979, in subsection (1), for the words from the beginning to " market value of the asset" there shall be substituted—
On the termination, on the death of the person entitled to it, of a life interest in possession in all or any part of settled property—
a
the whole or a corresponding part of each of the assets forming part of the settled property and not ceasing at that time to be settled property shall be deemed for the purposes of this Act at that time to be disposed of and immediately re-acquired by the trustee for a consideration equal to the whole or a corresponding part of the market value of the asset; but
b
no chargeable gain shall accrue on that disposal.
and subsection (2) of that section shall cease to have effect.
;
2
In section 56 of that Act, after subsection (1) there shall be inserted—
1A
Where the life interest referred to in subsection (1) above is an interest in part only of the settled property to which section 54 applies, subsection (1)(a) above shall not apply but any chargeable gain accruing on the disposal shall be reduced by a proportion corresponding to that represented by the part.
1B
The last sentence of subsection (1) of section 55 above, and subsection (6) of that section, shall apply for the purposes of subsection (1A) above as they apply for the purposes of section 55(1).
;
and subsection (2) of section 56 shall cease to have effect.
3
After section 56 of that Act there shall be inserted—

Effect on sections 55 and 56 of relief under Finance Act 1980, section 79.
56A
1
This section applies where—
a
a claim for relief was made under section 79 of the Finance Act 1980 in respect of the disposal of an asset to a trustee, and
b
the trustee is deemed to have disposed of the asset, or part of it, by virtue of section 54(1) or 55(1)(a) above.
2
Sections 56(1)(a) and 55(1)(b) shall not apply to the disposal of the asset or part by the trustee, but any chargeable gain accruing to the trustee on the disposal shall be restricted to the amount of the held-over gain (or a corresponding part of it) on the disposal of the asset to him.
3
Subsection (2) above shall not have effect in a case within section 56(1A) above ; but in such a case the reduction provided for by section 56(1A) above shall be diminished by an amount equal to the proportion there mentioned of the held-over gain.
4
In this section " held-over gain " has the same meaning as in section 79(1) of the Finance Act 1980.
4
This section applies in relation to interests terminating on or after 6th April 1982.

Maintenance funds for historic buildings
85
1
Section 148 of the Capital Gains Tax Act 1979 (maintenance funds for historic buildings) shall be amended as follows.
2
In subsection (1) for the words " section 84 of the Finance Act 1976 " there shall be substituted the words " section 95 of the Finance Act 1982 ".
3
In subsection (1A) for the words from " section 89(4)(d)" to " of that Act " there shall be substituted the words " paragraph 1(1) or (5) or 3(1) of Schedule 16 to the Finance Act 1982 no charge to capital transfer tax in respect of the asset deemed to be disposed of or a reduced charge to that tax by virtue of paragraph 1(2) or (8) or 3(4) of that Schedule. "
4
After subsection (1A) there shall be inserted—
1B
This section applies also where a trustee disposes (or is deemed to dispose) of an asset comprised in a settlement if on the disposal the asset becomes settled property in respect of which a direction has effect under section 93 of the Finance Act 1982.

Indexation allowance on certain disposals
86
1
This section applies to any disposal of an asset—
a
which occurs on or after 6th April 1982, or, if the disposal is by a company, on or after 1st April 1982 ; and
b
which occurs after the expiry of the period of twelve months beginning on the date on which the asset in question was acquired or provided (which period is in the following provisions of this Chapter referred to, in relation to a disposal, as " the qualifying period "); and
c
on which, disregarding the indexation allowance for which provision is made below, a gain would accrue (whether or not that gain would be wholly a chargeable gain).
2
In relation to a disposal to which this section applies—
a
" the gross gain " means the amount of the gain referred to in subsection (2)(c) above, computed in accordance with Chapter II of Part II of the Capital Gains Tax Act 1979 ; and
b
" relevant allowable expenditure " means, subject to subsection (3) below, any sum which, in the computation of the gross gain, was taken into account by virtue of paragraph (a) or paragraph (b) of subsection (1) of section 32 of that Act.
3
In determining what sum (if any) was taken into account as mentioned in subsection (2)(b) above, account shall be taken of any provision of any enactment which, for the purpose of the computation under the said Chapter II, increases, excludes or reduces the whole or any part of any item of expenditure falling within the said section 32 or provides for it to be written-down.
4
The following provisions of this Chapter have effect to provide for an allowance (in those provisions referred to as " the indexation allowance ") which, on a disposal to which this section applies, is to be allowed against the gross gain so as to give the gain for the purposes of the Capital Gains Tax Act 1979 or, if the indexation allowance equals or exceeds the gross gain, so as to extinguish it; and, accordingly, at the end of subsection (1) of section 28 of that Act (computation of gains accruing on the disposal of assets) there shall be added the words " and sections 86 and 87 of the Finance Act 1982 ".
5
Notwithstanding anything in section 29 of the Capital Gains Tax Act 1979 (losses to be computed in like manner as gains)—
a
this section does not apply to a disposal on which a loss accrues; and
b
in any case where, on a disposal to which this section does apply, the indexation allowance exceeds the gross gain, no loss shall result and, accordingly, the disposal shall be one on which, after taking account of the indexation allowance, neither a gain nor a loss accrues.
6
The provisions of Schedule 13 to this Act have effect for supplementing this section and the following provisions of this Chapter and the preceding provisions of this section have effect subject to the provisions of that Schedule.

Calculation of indexation allowance
87
1
The provisions of this section have effect for the purpose of computing the indexation allowance on a disposal to which section 86 above applies.
2
The indexation allowance is the aggregate of the indexed rise in each item of relevant allowable expenditure; and, in relation to any such item of expenditure, the indexed rise is a sum produced by multiplying the amount of that item by a figure expressed as a decimal and determined, subject to subsections (3) and (4) below, by the formula (RD − RI) ÷ RI where—
- RD is the retail prices index for the month in which the disposal occurs; and
- RI is the retail prices index for March 1982 or the month which is the twelfth month after that in which the expenditure was incurred, whichever is the later.
3
If, in relation to any item of expenditure.—
a
the month in which the expenditure was incurred is less than thirteen months before the month in which the disposal occurs, or
b
RD, as defined in subsection (2) above, is equal to or less than RI, as so defined,
the indexed rise in that item is nil.
4
If, in relation to any item of expenditure, the figure determined in accordance with the formula in subsection (2) above would, apart from this subsection, be a figure having more than three decimal places, it shall be rounded to the nearest third decimal place.
5
For the purposes of this section—
a
relevant allowable expenditure falling within paragraph
a
of subsection (1) of section 32 of the Capital Gains Tax Act 1979 shall be assumed to have been incurred at the time when the asset in question was acquired or provided; and
b
relevant allowable expenditure falling within paragraph (b) of that subsection shall be assumed to have been incurred at the time when that expenditure became due and payable.

Identification of securities etc. disposed of: general rules
88
1
With respect to securities held on, or acquired on or after, 6th April 1982 or, in the case of a company, 1st April 1982 the provisions of this section (other than subsection (8)) and section 89 below have effect in place of sections 65 and 66 of the Capital Gains Tax Act 1979 (pooling and other rules for identification of securities); and, in taking account of those provisions.—
a
this section, section 89 below and Part II of Schedule 13 shall have effect subject to section 58 of the Finance (No. 2) Act 1975 (disposal of shares and securities within prescribed period of acquisition); and
b
the reference in section 68(4) of the Capital Gains Tax Act 1979 (general identification rules for gilt-edged securities) to section 66(1) of that Act shall be construed as including a reference to subsection (4) below.
2
Where a person disposes of securities, the securities disposed of shall be identified in accordance with the rules contained in this section with the securities of the same class acquired by him which could be comprised in that disposal, and shall be so identified notwithstanding that they are otherwise identified by the disposal or by a transfer or delivery giving effect to it (but so that where a person disposes of securities in one capacity, they shall not be identified with securities which he holds or can dispose of only in some other capacity).
3
Securities disposed of on an earlier date shall be identified before securities disposed of on a later date, and the identification of the securities first disposed of shall accordingly determine the securities which could be comprised in the later disposal.
4
Securities disposed of for transfer or delivery on a particular date or in a particular period—
a
shall not be identified with securities acquired for transfer or delivery on a later date or in a later period; and
b
shall be identified with securities acquired for transfer or delivery on or before that date or in or before that period, but on or after the date of the disposal, rather than with securities not so acquired.
5
The securities disposed of shall be identified—
a
with securities acquired within the twelve months preceding the disposal rather than with securities not so acquired, and with securities so acquired on an earlier date rather than with securities so acquired on a later date, and
b
subject to paragraph (a) above, with securities acquired on a later date rather than with securities acquired on an earlier date ; and
c
with securities acquired at different times on any one day in as nearly as may be equal proportions.
6
The rules contained in the preceding subsections shall have priority according to the order in which they are so contained.
7
Notwithstanding anything in subsections (3) to (5) above, where, under arrangements designed to postpone the transfer or delivery of securities disposed of, a person by a single bargain acquires securities for transfer or delivery on a particular date or in a particular period and disposes of them for transfer or delivery on a later date or in a later period, then—
a
the securities disposed of by that bargain shall be identified with the securities thereby acquired ; and
b
securities previously disposed of which, but for the operation of paragraph (a) above in relation to acquisitions for transfer or delivery on the earlier date or in the earlier period, would have been identified with the securities acquired by that bargain—
i
shall, subject to subsection (3) above, be identified with any available securities acquired for such transfer or delivery (that is to say, any securities so acquired other than securities to which paragraph (a) above applies and other than securities with which securities disposed of for such transfer or delivery would be identified apart from this subsection) ; and
ii
in so far as they cannot be so identified shall be treated as disposed of for transfer or delivery on the later date, or in the later period, mentioned above.
8
The provisions of Part II of Schedule 13 to this Act have effect with respect to securities acquired before 6th April 1982 or, in the case of a company, before 1st April 1982.
9
In this section and Schedule 13 to this Act "securities" means—
a
shares or securities of a company; and
b
any other assets where they are of a nature to be dealt in without identifying the particular assets disposed of or acquired;
and shares or securities of a company shall not be treated for the purposes of this section and that Schedule as being of the same class unless they are so treated by the practice of The Stock Exchange or would be so treated if dealt with on The Stock Exchange.

Identification of securities: special rules
89
1
Where, in a case of a man and his wife living with him, one of them—
a
disposes of securities to his wife or her husband on or after 6th April 1982, and
b
disposes of other securities, which are of the same kind as those disposed of to the wife or husband, to another person (in this section referred to as "a third party "), the provisions of subsections (3) and (4) below have effect with respect to any securities acquired by the person making those disposals which, but for the provisions of section 88 above, could have been comprised in either of those disposals.
2
Where a company which is a member of a group of companies—
a
disposes of securities to another member of the group on or after 1st April 1982, and
b
disposes of other securities, which are of the same kind as those disposed of to that other company, to another person (in this section referred to as a " third party ") not being another member of the same group, the provisions of subsections (3) and (4) below have effect with respect to any securities acquired by the company making those disposals which, but for the provisions of section 88 above, could have been comprised in either of those disposals.
3
If, apart from the provisions of this subsection, securities disposed of to a third party—
a
would be indexed securities, and
b
but for the disposal referred to in subsection (1)(a) or, as the case may be, subsection (2)(a) above would be un-indexed securities,
the identification shall be reversed so that the securities disposed of to the third party (or, if the quantity disposed of to the third party was greater than the quantity disposed of to the wife or husband or, as the case may be, to the other company, a part of them equal to the quantity so disposed of) shall be unindexed securities.
4
If there is more than one disposal falling within subsection (1)(o) or, as the case may be, subsection (2)(a) above, or more than one disposal to a third party, the provisions of subsection (3) above shall be applied to securities disposed of on an earlier date before being applied to securities disposed of on a later date, and the re-identification of the securities first disposed of shall accordingly determine the way in which this section applies to the securities comprised in the later disposal.
5
In this section " indexed securities " means securities which were acquired or provided more than twelve months before the date of the disposal concerned and " unindexed securities " shall be construed accordingly.
6
Section 272 of the Taxes Act (groups of companies) shall apply for the purpose of this section as it applies for the purposes of sections 273 to 281 of that Act.
7
Subsection (9) of section 88 above applies for the purposes of this section as it applies for the purposes of that.
PART IV

Capital Transfer Tax
CHAPTER I

General

Reduction of tax
90
1
For the Tables in section 37(3) of the Finance Act 1975 there shall be substituted the Tables in Schedule 14 to this Act.
2
This section applies to any chargeable transfer made on or after 9th March 1982.

Indexation of rate bands
91
1
If the retail prices index for the month of December in 1982 or any later year is higher than it was for the previous December, then, unless Parliament otherwise determines, section 37 of the Finance Act 1975 shall apply to chargeable transfers made on or after 6th April in the following year with the substitution in subsection (3) of new Tables for the Tables applying (whether by virtue of this section or otherwise) to earlier chargeable transfers.
2
The new Tables shall differ from the Tables they replace in that for each of the amounts specified in the first and second columns there shall be substituted amounts arrived at by increasing the previous amounts by the same percentage as the percentage increase in the retail prices index and, if the result is not a multiple of £1,000, rounding it up to the nearest amount which is such a multiple.
3
The references in this section to the retail prices index are references to the general index of retail prices (for all items) published by the Department of Employment; and if that index is not published for a month of December those references shall be construed as references to any substituted index or index figures published by that Department.
4
The Treasury shall before 6th April 1983 and each subsequent 6th April make an order specifying the amounts which by virtue of this section will be treated, in relation to chargeable transfers on or after that date, as specified in the Tables in section 37(3) of the Finance Act 1975 ; and any such order shall be made by statutory instrument.
5
In section 85(3) of the Finance Act 1980 (transitional provisions on reduction of tax by that section or subsequent enactments) for the words " which reduces tax by substituting " there shall be substituted the words " by virtue of which tax is reduced by the substitution of ".

Exemptions
92
1
In paragraph 1(2) of Schedule 6 to the Finance Act 1975 (exemption limit for transfers to non-domiciled spouses) for " £50,000 " there shall be substituted " £55,000 ".
2
In paragraph 10(1)(b) of that Schedule (limit on exempt gifts made to charities on or within one year of death) for " £200,000 " there shall be substituted " £250,000 ".
3
This section applies to any transfer of value made on or after 9th March 1982.

Maintenance funds: Treasury directions
93
1
On a claim made for the purpose, the Treasury shall give a direction under this section in respect of property comprised in a settlement if the conditions mentioned in subsection (2) below are fulfilled.
2
The conditions are—
a
that the Treasury are satisfied—
i
that the trusts on which the property is held comply with the requirements mentioned in subsection (3) below, and
ii
that the property is of a character and amount appropriate for the purposes of those trusts ; and
b
that the trustees—
i
are approved by the Treasury,
ii
include a trust corporation (as defined in section 94(1) below) or a solicitor or an accountant (as so defined) or a member of such other professional body as the Treasury may allow in the case of the property concerned, and
iii
are, at the time the direction is given, resident in the United Kingdom (as specified in section 94(1) below).
3
The requirements are—
a
that none of the property held on the trusts can at any time in the period of six years beginning with the date on which it became so held be applied otherwise than—
i
for the maintenance, repair or preservation of, or making provision for public access to, property which is for the time being qualifying property (as defined in section 94(2) below), for the maintenance, repair or preservation of property held on the trusts or for such improvement of property so held as is reasonable having regard to the purposes of the trusts, or for defraying the expenses of the trustees in relation to the property so held;
ii
as respects income not so applied and not accumulated, for the benefit of a body mentioned in paragraph 12 of Schedule 6 to the Finance Act 1975 (museums etc.) or of a qualifying charity (as defined in section 94(4) below); and
b
that none of the property can, on ceasing to be held on the trusts at any time in that period or, if the settlor dies in that period, at any time before his death, devolve otherwise than on any such body or charity; and
c
that income arising from property held on the trusts cannot at any time after the end of that period be applied except as mentioned in paragraph (a)(i) or (ii) above.
4
Subject to subsection (5) below, paragraphs (a) and (b) of subsection (3) above do not apply to property which—
a
was previously comprised in another settlement; and
b
ceased to be comprised in that settlement and became comprised in the current settlement in circumstances such that by virtue of paragraph 3(1) of Schedule 16 to this Act there was no charge (or, but for paragraph 3(4) of that Schedule, there would have been no charge) to tax in respect of it;
and in relation to any such property paragraph (c) of that subsection shall apply with the omission of the words " at any time after the end of that period ".
5
Subsection (4) above shall not have effect if the time when the property comprised in the previous settlement devolved otherwise than on any such body or charity as is mentioned in paragraph (a) of subsection (3) above fell before the expiration of the period of six years mentioned in that paragraph; but in such a case subsection (3) above shall apply to the current settlement as if for the references to the period of six years there mentioned there were substituted references to the period beginning with the date on which the property became comprised in the current settlement and ending six years after the date on which it became held on the relevant trusts of the previous settlement (or, where this subsection has already had effect in relation to the property, the date on which it became held on the relevant trusts of the first settlement in the series).
6
If in the Treasury's opinion the facts concerning any property or its administration cease to warrant the continuance of the effect of a direction given under this section in respect of the property, they may at any time by notice in writing to the trustees withdraw the direction on such grounds, and from such date, as may be specified in the notice; and the direction shall cease to have effect accordingly.
7
Where a direction under this section has effect in respect of property, the trustees shall from time to time furnish the Treasury with such accounts and other information relating to the property as the Treasury may reasonably require.
8
Where a direction under this section has effect in respect of property, the trusts on which the property is held shall be enforceable at the suit of the Treasury and the Treasury shall, as respects the appointment, removal and retirement of trustees, have the rights and powers of a beneficiary.
9
The Treasury may give a direction under this section in respect of property proposed to be comprised in a settlement or to be held on particular trusts, and the preceding provisions of this section shall be read accordingly.
10
This section shall have effect in relation to events after 8th March 1982.

Provisions supplementary to section 93
94
1
For the purposes of section 93(2) above—
a
" accountant" means a member of an incorporated society of accountants;
b
" trust corporation " means a person that is a trust corporation for the purposes of the Law of Property Act 1925 or for the purposes of Article 9 of the Administration of Estates (Northern Ireland) Order 1979;
c
trustees shall be regarded as resident in the United Kingdom at any particular time if the general administration of the trusts is ordinarily carried on in the United Kingdom and the trustees or a majority of them (and, where there is more than one class of trustees, a majority of each class) are resident in the United Kingdom ;
and, where a trustee is a trust corporation, the question whether the trustee is resident in the United Kingdom shall, for the purposes of paragraph (c) above, be determined as for the purposes of corporation tax.
2
Property is qualifying property for the purposes of section 93(3) above if—
a
it has been designated under section 34(1) of the Finance Act 1975 or section 77(1)(b), (c),(d) or (e) of the Finance Act 1976; and
b
the requisite undertaking has been given with respect to it under the said section 34 or under section 76, 78(5) (b) or 82(3) of the Finance Act 1976 ; and
c
tax has not (since the last occasion on which such an undertaking was given) become chargeable with respect to it under the said section 34 or under section 78 or 82(3) of the Finance Act 1976.
3
If it appears to the Treasury that provision is, or is to be, made by a settlement for the maintenance, repair or preservation of any such property as is mentioned in subsection (1) (b). (c), (d) or (e) of section 77 of the Finance Act 1976, they may, on a claim made for the purpose—
a
designate that property under this subsection ; and
b
accept with respect to it an undertaking such as is described in subsection (4) of that section ;
and, if they do so, subsection (2) above shall have effect as if the designation were under that section and the undertaking under section 76 of the Finance Act 1976 and as if the reference to tax becoming chargeable were a reference to the occurrence of an event on which tax would become chargeable under section 78 of that Act if there had been a conditionally exempt transfer of the property when the claim was made and the undertaking had been given under the said section 76.
4
A charity is a qualifying charity for the purposes of section 93(3) above if it exists wholly or mainly for maintaining, repairing or preserving for the public benefit buildings of historic or architectural interest, land of scenic, historic or scientific interest or objects of national, scientific, historic or artistic interest; and in this subsection " national interest" includes interest within any part of the United Kingdom.
5
Property comprised in a settlement by virtue of a transfer of value made before the coming into force of this section and exempt under section 84 of the Finance Act 1976 shall be treated as property in respect of which a direction has been given under section 93 above.
6
Designations, undertakings and acceptances made under section 84(6) of the Finance Act 1976 shall be treated as made under subsection (3) above and, in relation to them, subsections (2) and (3) above shall be treated as having been in force when they were made.

Maintenance funds: exempt transfers
95
1
Subject to the provisions of Part II of Schedule 6 to the Finance Act 1975 as applied by this section, a transfer of value is an exempt transfer to the extent that the value transferred by it is attributable to property which by virtue of the transfer becomes, or immediately after the transfer remains, comprised in a settlement and in respect of which—
a
a direction under section 93 above has effect at the time of the transfer, or
b
such a direction is given after the time of the transfer.
2
Sub-paragraphs (1), (2), (2A), (3)(a), (b) and (ba) and (4B) of paragraph 15 of Schedule 6 to the Finance Act 1975 shall apply to this section as they apply to paragraphs 10 to 13 of that Schedule, and for the purposes of the said sub-paragraph (4B) the trustees of a settlement in relation to which a direction under section 93 above has effect shall be treated as a body within paragraph 13 of that Schedule.
3
In paragraph 16 of Schedule 6 to the Finance Act 1975 for the words " sections 76 and 84 of the Finance Act 1976 " there shall be substituted the words " section 76 of the Finance Act 1976 and section 95 of the Finance Act 1982 ".
4
This section shall have effect in relation to events after 8th March 1982.

Non-residents' bank accounts
96
1
In determining for the purposes of capital transfer tax the value of the estate immediately before his death of a person to whom this section applies there shall be left out of account the balance on—
a
any qualifying foreign currency account of his, and
b
subject to subsection (3) below, any qualifying foreign currency account of the trustees of settled property in which he is beneficially entitled to an interest in possession.
2
This section applies to a person who is not domiciled in the United Kingdom immediately before his death, and is neither resident nor ordinarily resident there at that time.
3
Subsection (1)(b) above does not apply in relation to settled property if the settlor was domiciled in the United Kingdom when he made the settlement, or if the trustees are domiciled, resident or ordinarily resident in the United Kingdom immediately before the beneficiary's death.
4
For the purposes of this section—
a
the question whether a person is resident or ordinarily resident in the United Kingdom shall, subject to paragraph (b) below, be determined as for the purposes of income tax; but
b
the trustees of a settlement shall be regarded as not resident or ordinarily resident in the United Kingdom unless the general administration of the settlement is ordinarily carried on in the United Kingdom and the trustees or a majority of them (and, where there is more than one class of trustees, a majority of each class) are resident and ordinarily resident there.
5
In this section " qualifying foreign currency account" means a foreign currency account with the Bank of England, the Post Office, a recognised bank or licensed institution; and for this purpose—
a
" foreign currency account" means any account other than one denominated in sterling, and
b
" recognised bank " and " licensed institution " have the same meanings as in the Banking Act 1979.
6
This section has effect in relation to deaths occurring after 8th March 1982.

Scottish agricultural leases
97
1
Subject to subsections (2) and (3) below, where any part of the value of a person's estate immediately before his death is attributable to the value of the interest of a tenant of agricultural property in Scotland, being an interest held by virtue of tacit relocation; and
a
either he had been tenant of the said property continuously for a period of at least two years immediately preceding his death or he had become tenant of the said property by succession ; and
b
the said interest is acquired on his death by a new tenant,
the value of the said interest shall be left out of account in determining the value transferred on the death.
2
The value to be left out of account under subsection (1) above shall not include the value of any rights to compensation in respect of tenant's improvements.
3
Subsections (1) and (2) above apply to deaths on or after 15th November 1976.
4
The Finance Act 1981 shall be amended as follows—
a
in section 98 at the beginning there shall be inserted " (1) " , and at the end there shall be inserted the following new subsection—
2
This section applies to deaths on or after 15th November 1976.
;
b
section 99 and Schedule 15 shall cease to have effect.

Employee and newspaper trusts
98
1
Paragraph 17 of Schedule 5 to the Finance Act 1975 shall be amended in accordance with subsections (2) to (5) below.
2
In sub-paragraph (1)(a) for the words " profession or undertaking " (where they first occur) there shall be substituted the words " or profession ".
3
In sub-paragraph (1) the words "or (c) charities" shall be omitted.
4
After sub-paragraph (1) there shall be inserted—
1A
Where settled property is held on trusts permitting the property to be applied for the benefit of persons within paragraph (a) or (b) of sub-paragraph (1) above, those trusts shall not be regarded as outside the description specified in that sub-paragraph by reason only that they also permit the settled property to be applied for charitable purposes.
5
For sub-paragraph (2) there shall be substituted—
2
Where any class mentioned in sub-paragraph (1) above is defined by reference to employment by or office with a particular body, this paragraph applies to the settled property only if—
a
the class comprises all or most of the persons employed by or holding office with the body concerned ; or
b
the trusts on which the settled property is held are those of a profit sharing scheme approved in accordance with Schedule 9 to the Finance Act 1978.
6
In paragraph 17A(1) of that Schedule for the words "to (c) " there shall be substituted the words " and (b) ".
7
This section shall have effect in relation to events after 8th March 1982.

Close companies
99
1
Paragraph 24 of Schedule 5 to the Finance Act 1975 shall have effect with the following amendments in relation to events after 8th March 1982.
2
In sub-paragraph (2), for paragraph (b) there shall be substituted—
b
if no qualifying interest in possession subsists in the settled property, Chapter II of Part IV of the Finance Act 1982 shall have effect as if on the making of the transfer the trustee had made a disposition as a result of which the value of the settled property had been reduced by an amount equal to the part so apportioned less the amount specified in sub-paragraph (3) below
;
and for the words " an interest in possession " in each place where they occur there shall be substituted the words " a qualifying interest in possession ".
3
In sub-paragraph (5) for the words from " as " to " beneficially " there shall be substituted the words " and of Chapter II of Part IV of the Finance Act 1982 as being the persons ".
4
After sub-paragraph (5) there shall be inserted—
5A
Where—
a
the participators mentioned in sub-paragraph (5) above include the trustees of a settlement, and
b
a person is beneficially entitled to an interest in possession in the whole or part of the settled property by virtue of which the trustees are participators,
that person shall be treated for the said purposes as beneficially entitled to the whole or a corresponding part of the interest to which the trustees would otherwise be treated as entitled under that sub-paragraph.
5
In sub-paragraph (6), at the end, there shall be added the words " and "qualifying interest in possession " has the meaning given by section 103 of the Finance Act 1982."

Apsley House
100
The enactments relating to capital transfer tax shall not apply in respect of the rights conferred by section 3 of the Wellington Museum Act 1947.
CHAPTER II

Settlements Without Interests in Possession

Preliminary

Preliminary
101
This Chapter, which supersedes paragraphs 6 to 14 of Schedule 5 to the Finance Act 1975, shall have effect in relation to events after 8th March 1982, but subject, in the case of any settlement which commenced before 27th March 1974, to the provisions of Schedule 15 to this Act.

Principal definitions

Relevant property
102
1
In this Chapter " relevant property " means settled property in which no qualifying interest in possession subsists, other than—
a
property held for charitable purposes only, whether for a limited time or otherwise ;
b
property to which section 114 below applies ;
c
property to which paragraph 2 of Schedule 16 to this Act applies;
d
property which is part of or held for the purposes of a fund or scheme to which paragraph 16 of Schedule 5 to the Finance Act 1975 applies (superannuation schemes);
e
property to which paragraph 17 of that Schedule applies (trusts for employees etc. and newspaper trusts);
f
property which is held on trusts to the like effect as those specified in section 33(1)(ii) of the Trustee Act 1925 (protective trusts) and which became held on those trusts on the failure or determination before 12th April 1978 of trusts to the like effect as those specified in section 33(1)(i);
g
property within paragraph 19 of Schedule 5 to the Finance Act 1975 (trusts for disabled persons), as it applies to property which was transferred into settlement before 10th March 1981 ;
h
property comprised in a trade or professional compensation fund; and
i
excluded property.
2
The reference in subsection (1)(d) above to property which is part of or held for the purposes of a fund or scheme does not include a reference to a benefit which, having become payable under the fund or scheme, becomes comprised in a settlement.

Qualifying interest in possession
103
1
In this Chapter " qualifying interest in possession " means an interest in possession to which an individual, or where subsection (2) below applies a company, is beneficially entitled.
2
This subsection applies where—
a
the business of the company consists wholly or mainly in the acquisition of interests in settled property, and
b
the company has acquired the interest for full consideration in money or money's worth from an individual who was beneficially entitled to it.
3
Where the acquisition mentioned in paragraph (b) of subsection (2) above was before 14th March 1975—
a
the condition set out in paragraph (a) of that subsection shall be treated as satisfied if the business of the company was at the time of the acquisition such as is described in that paragraph, and
b
that condition need not be satisfied if the company is authorised to carry on long-term business under section 3 or 4 of the Insurance Companies Act 1981.

Commencement of settlement
104
In this Chapter references to the commencement of a settlement are references to the time when property first becomes comprised in it.

Ten-year anniversary
105
1
In this Chapter " ten-year anniversary " in relation to a settlement means the tenth anniversary of the date on which the settlement commenced and subsequent anniversaries at ten-yearly intervals, but subject to subsections (2) to (4) below.
2
The ten-year anniversaries of a settlement treated as made under section 120 below shall be the dates that are (or would but for that section be) the ten-year anniversaries of the settlement first mentioned in that section.
3
No date falling before 1st April 1983 shall be a ten-year anniversary.
4
Where—
a
the first ten-year anniversary of a settlement would apart from this subsection fall during the year ending with 31st March 1984, and
b
during that year an event occurs in respect of the settlement which could not have occurred except as the result of some proceedings before a court, and
c
the event is one on which tax is (or, apart from Part II of Schedule 15 to this Act, would be) chargeable under this Chapter,
the first ten-year anniversary shall be taken to be 1st April 1984 (but without affecting the dates of later anniversaries).

Related settlements
106
1
For the purposes of this Chapter two settlements are related if and only if—
a
the settlor is the same in each case, and
b
they commenced on the same day,
but subject to subsection (2) below.
2
Two settlements are not related for the purposes of this Chapter if all the property comprised in one or both of them was immediately after the settlement commenced held for charitable purposes only without limit of time (defined by a date or otherwise).

Principal charge to tax

Charge at ten-year anniversary
107
Where immediately before a ten-year anniversary all or any part of the property comprised in a settlement is relevant property, tax shall be charged at the rate applicable under sections 109 and 110 below on the value of the property or part at that time.

Charge at other times
108
1
Subject to the following provisions of this section, there shall be a charge to tax under this section—
a
where the property comprised in a settlement or any part of that property ceases to be relevant property (whether because it ceases to be comprised in the settlement or otherwise); and
b
in a case in which paragraph (a) above does not apply, where the trustees of the settlement make a disposition, as a result of which the value of relevant property comprised in the settlement is less than it would be but for the disposition.
2
The amount on which tax is charged under this section shall be—
a
the amount by which the value of relevant property comprised in the settlement is less immediately after the event in question than it would be but for the event, or
b
where the tax payable is paid out of relevant property comprised in the settlement immediately after the event, the amount which, after deducting the tax, is equal to the amount on which tax would be charged by virtue of paragraph (a) above.
3
The rate at which tax is charged under this section shall be the rate applicable under section 111 or 112 below.
4
Subsection (1) above does not apply if the event in question occurs in a quarter beginning with the day on which the settlement commenced or with a ten-year anniversary.
5
Tax shall not be charged under this section in respect of—
a
a payment of costs or expenses (so far as they are fairly attributable to relevant property), or
b
a payment which is (or will be) income of any person for any of the purposes of income tax or would for any of those purposes be income of a person not resident in the United Kingdom if he were so resident,
or in respect of a liability to make such a payment.
6
Tax shall not be charged under this section by virtue of subsection (1)(b) above if the disposition is such that, were the trustees beneficially entitled to the settled property, section 20(4) of the Finance Act 1975 (disposition not intended to confer gratuitous benefit) or section 97 of the Finance Act 1981 (grant of tenancies of agricultural property) would prevent the disposition from being a transfer of value.
7
Tax shall not be charged under this section by reason only that property comprised in a settlement ceases to be situated in the United Kingdom and thereby becomes excluded property by virtue of paragraph 2(1)(a) of Schedule 5 to the Finance Act 1975.
8
If the settlor of a settlement was not domiciled in the United Kingdom when the settlement was made, tax shall not be charged under this section by reason only that property comprised in the settlement is invested in securities issued as mentioned in paragraph 3 of Schedule 7 to the Finance Act 1975 and thereby becomes excluded property by virtue of sub-paragraph (2) of that paragraph; and section 45 of that Act (domicile) shall not apply to determine the settlor's domicile for the purposes of this subsection in relation to property which became comprised in a settlement before 10th December 1974.
9
For the purposes of this section trustees shall be treated as making a disposition if they omit to exercise a right (unless it is shown that the omission was not deliberate) and the disposition shall be treated as made at the time or latest time when they could have exercised the right.

Rates of principal charge

Rate of ten-yearly charge
109
1
Subject to subsection (2) below, the rate at which tax is charged under section 107 above at any time shall be three tenths of the effective rate (that is to say the rate found by expressing the tax chargeable as a percentage of the amount on which it is charged) at which tax would be charged on the value transferred by a chargeable transfer of the description specified in subsection (3) below.
2
Where the whole or part of the value mentioned in section 107 above is attributable to property which was not relevant property, or was not comprised in the settlement, throughout the period of ten years ending immediately before the ten-year anniversary concerned, the rate at which tax is charged on that value or part shall be reduced by one-fortieth for each of the successive quarters in that period which expired before the property became, or last became, relevant property comprised in the settlement.
3
The chargeable transfer postulated in subsection (1) above is one—
a
the value transferred by which is equal to an amount determined in accordance with subsection (4) below ;
b
which is made immediately before the ten-year anniversary concerned by a transferor who has in the preceding ten years made chargeable transfers having an aggregate value determined in accordance with subsection (5) below; and
c
for which the appropriate Table of rates is the second Table set out in section 37(3) of the Finance Act 1975.
4
The amount referred to in subsection (3)(a) above is equal to the aggregate of—
a
the value on which tax is charged under section 107 above;
b
the value immediately after it became comprised in the settlement of any property which was not then relevant property and has not subsequently become relevant property while remaining comprised in the settlement; and
c
the value, immediately after a related settlement commenced, of the property then comprised in it.
5
The aggregate value referred to in subsection (3)(b) above is equal to the aggregate of—
a
the values transferred by any chargeable transfers made by the settlor in the period of ten years ending with the day on which the settlement commenced, disregarding transfers made on that day, and
b
the amounts on which any charges to tax were imposed under section 108 above in respect of the settlement in the ten years before the anniversary concerned;
but subject to section 110 below.

Added property etc.
110
1
This subsection applies where, after the settlement commenced and after 8th March 1982, but before the anniversary concerned, the settlor made a chargeable transfer as a result of which the value of the property comprised in the settlement was increased.
2
For the purposes of subsection (1) above, it is immaterial whether the amount of the property so comprised was increased as a result of the transfer, but a transfer as a result of which the value increased but the amount did not shall be disregarded if it is shown that the transfer—
a
was not primarily intended to increase the value, and
b
did not result in the value being greater immediately after the transfer by an amount exceeding five per cent, of the value immediately before the transfer.
3
Where subsection (1) above applies, section 109(5)(a) above shall have effect as if it referred to the greater of—
a
the aggregate of the values there specified, and
b
the aggregate of the values transferred by any chargeable transfers made by the settlor in the period of ten years ending with the day on which the chargeable transfer falling within subsection (1) above was made, disregarding transfers made on that day and excluding the values mentioned in subsection (4) below ;
and where the settlor made two or more chargeable transfers falling within subsection (1) above, paragraph (b) above shall be taken to refer to the transfer in relation to which the aggregate there mentioned is the greatest.
4
The values are—
a
any value attributable to property whose value is taken into account in determining the amount mentioned in section 109(4) above ; and
b
any value attributable to property in respect of which a charge to tax has been made under section 108 above and by reference to which an amount mentioned in section 109(5)(b) above is determined.
5
Where the property comprised in a settlement immediately before the ten-year anniversary concerned, or any part of that property, had on any occasion within the preceding ten years ceased to be relevant property then, if on that occasion tax was charged in respect of the settlement under section 108 above, the aggregate calculated under section 109(5) above shall be reduced by an amount equal to the lesser of—
a
the amount on which tax was charged under section 108 (or so much of that amount as is attributable to the part in question), and
b
the value on which tax is charged under section 107 above (or so much of that value as is attributable to the part in question);
and if there were two or more such occasions relating to the property or the same part of it, this subsection shall have effect in relation to each of them.
6
References in subsection (5) above to the property comprised in a settlement immediately before an anniversary shall, if part only of the settled property was then relevant property, be construed as references to that part.
7
In relation to the first ten-year anniversary of a settlement which commenced after 26th March 1974 and before 9th March 1982, section 109(5) above shall have effect with the addition after paragraph (b) of the words
and
c
the amounts of any distribution payments (determined in accordance with the rules applicable before 9th March 1982 under paragraph 11 of Schedule 5 to the Finance Act 1975) made out of the settled property after 26th March 1974 but before 9th March 1982 and within the period of ten years before the anniversary concerned
.

Rate before first ten-year anniversary
111
1
The rate at which tax is charged under section 108 above on an occasion preceding the first ten-year anniversary after the settlement's commencement shall be the appropriate fraction of the effective rate at which tax would be charged on the value transferred by a chargeable transfer of the description specified in subsection (4) below.
2
For the purposes of this section the appropriate fraction is three tenths multiplied by so many fortieths as there are complete successive quarters in the period beginning with the day on which the settlement commenced and ending with the day before the occasion of the charge, but subject to subsection (3) below.
3
Where the whole or part of the amount on which tax is charged is attributable to property which was not relevant property, or was not comprised in the settlement, throughout the period referred to in subsection (2) above, then in determining the appropriate fraction in relation to that amount or part—
a
no quarter which expired before the day on which the property became, or last became, relevant property comprised in the settlement shall be counted, but
b
if that day fell in the same quarter as that in which the period ends, that quarter shall be counted whether complete or not.
4
The chargeable transfer postulated in subsection (1) above is one—
a
the value transferred by which is equal to an amount determined in accordance with subsection (5) below ;
b
which is made at the time of the charge to tax under section 108 by a transferor who has in the period of ten years ending with the day of the occasion of the charge made chargeable transfers having an aggregate value equal to that of any chargeable transfers made by the settlor in the period of ten years ending with the day on which the settlement commenced, disregarding transfers made on that day ; and
c
for which the appropriate Table of rates is the second Table set out in section 37(3) of the Finance Act 1975.
5
The amount referred to in subsection (4)(a) above is equal to the aggregate of—
a
the value, immediately after the settlement commenced, of the property then comprised in it;
b
the value, immediately after a related settlement commenced, of the property then comprised in it; and
c
the value, immediately after it became comprised in the settlement, of any property which became so comprised after the settlement commenced and before the occasion of the charge under section 108 (whether or not it has remained so comprised).

Rate between ten-year anniversaries
112
1
Subject to subsection (2) below, the rate at which tax is charged under section 108 above on an occasion following one or more ten-year anniversaries after the settlement's commencement shall be the appropriate fraction of the rate at which it was last charged under section 107 (or would have been charged apart from section 109(2)).
2
If at any time before the occasion of the charge under section 108 and on or after the most recent ten-year anniversary—
a
property has become comprised in the settlement; or
b
property which was comprised in the settlement immediately before the anniversary, but was not then relevant property, has become relevant property,
then, whether or not the property has remained comprised in the settlement or has remained relevant property, the rate at which tax is charged under section 108 shall be the appropriate fraction of the rate at which it would last have been charged under section 107 (apart from section 109(2)) if immediately before that anniversary the property had been relevant property comprised in the settlement with a value determined in accordance with subsection (3) below.
3
In the case of property within subsection (2) (a) above which either—
a
was relevant property immediately after it became prised in the settlement; or
b
was not then relevant property and has not subsequently become relevant property while remaining comprised in the settlement,
the value to be attributed to it for the purposes of subsection (2) above is its value immediately after it became comprised in the settlement; and in any other case the value to be so attributed is the value of the property when it became (or last became) relevant property.
4
For the purposes of this section the appropriate fraction is so many fortieths as there are complete successive quarters in the period beginning with the most recent ten-year anniversary and ending with the day before the occasion of the charge; but subsection (3) of section 111 above shall have effect for the purposes of this subsection as it has effect for the purposes of subsection (2) of that section.

Special cases

Property leaving temporary charitable trusts
113
1
This section applies to settled property held for charitable purposes only until the end of a period (whether defined by a date or in some other way).
2
Subject to subsections (3) and (4) below, there shall be a charge to tax under this section—
a
where settled property ceases to be property to which this section applies, otherwise than by virtue of an application for charitable purposes, and
b
in a case in which paragraph (a) above does not apply, where the trustees make a disposition (otherwise than by an application of property for charitable purposes) as a result of which the value of settled property to which this section applies is less than it would be but for the disposition.
3
Tax shall not be charged under this section in respect of—
a
a payment of costs or expenses (so far as they are fairly attributable to property to which this section applies), or
b
a payment which is (or will be) income of any person for any of the purposes of income tax or would for any of those purposes be income of a person not resident in the United Kingdom if he were so resident,
or in respect of a liability to make such a payment.
4
Tax shall not be charged under this section by virtue of subsection (2)(b) above if the disposition is such that, were the trustees beneficially entitled to the settled property, section 20(4) of the Finance Act 1975 (disposition not intended to confer gratuitous benefit) or section 97 of the Finance Act 1981 (grant of tenancies of agricultural property) would prevent the disposition from being a transfer of value.
5
The amount on which tax is charged under this section shall be—
a
the amount by which the value of property which is comprised in the settlement and to which this section applies is less immediately after the event giving rise to the charge than it would be but for the event, or
b
where the tax payable is paid out of settled property to which this section applies immediately after the event, the amount which, after deducting the tax, is equal to the amount on which tax would be charged by virtue of paragraph (a) above.
6
The rate at which tax is charged under this section shall be the aggregate of the following percentages—
a
025 per cent, for each of the first forty complete successive quarters in the relevant period,
b
0-20 per cent, for each of the next forty,
c
015 per cent, for each of the next forty,
d
010 per cent, for each of the next forty, and
e
005 per cent, for each of the next forty.
7
In subsection (6) above " the relevant period " means the period beginning with the later of—
a
the day on which the property in respect of which tax is chargeable became (or last became) property to which this section applies, and
b
13th March 1975,
and ending with the day before the event giving rise to the charge.
8
Where the property in respect of which tax is chargeable—
a
was relevant property immediately before 10th December 1981, and
b
became (or last became) property to which this section applies on or after that day and before 9th March 1982,
subsection (7) above shall have effect as if the day referred to in paragraph (a) of that subsection were the day on which the property became (or last became) relevant property before 10th December 1981.
9
For the purposes of this section trustees shall be treated as making a disposition if they omit to exercise a right (unless it is shown that the omission was not deliberate) and the disposition shall be treated as made at the time or latest time when they could have exercised the right.

Accumulation and maintenance trusts
114
1
Subject to subsection (2) below, this section applies to settled property if—
a
one or more persons (in this section referred to as beneficiaries) will, on or before attaining a specified age not exceeding twenty-five, become beneficially entitled to it or to an interest in possession in it, and
b
no interest in possession subsists in it and the income from it is to be accumulated so far as not applied for the maintenance, education or benefit of a beneficiary.
2
This section does not apply to settled property unless either—
a
not more than twenty-five years have elapsed since the commencement of the settlement or, if it was later, since the time (or latest time) when the conditions stated in paragraphs (a) and (b) of subsection (1) above became satisfied with respect to the property, or
b
all the persons who are or have been beneficiaries are or were either—
i
grandchildren of a common grandparent, or
ii
children, widows or widowers of such grandchildren who were themselves beneficiaries but died before the time when, had they survived, they would have become entitled as mentioned in subsection (1)(a) above.
3
Subject to subsections (4) and (5) below, there shall be a charge to tax under this section—
a
where settled property ceases to be property to which this section applies, and
b
in a case in which paragraph (a) above does not apply, where the trustees make a disposition as a result of which the value of settled property to which this section applies is less than it would be but for the disposition.
4
Tax shall not be charged under this section—
a
on a beneficiary's becoming beneficially entitled to, or to an interest in possession in, settled property on or before attaining the specified age, or
b
on the death of a beneficiary before attaining the specified age.
5
Subsections (3) to (7) and (9) of section 113 above shall apply for the purposes of this section as they apply for the purposes of that section (with the substitution of a reference to subsection (3)(b) above for the reference in section 113(4) to section 113(2)(b)).
6
Where the conditions stated in paragraphs (a) and (b) of subsection (1) above were satisfied on 15th April 1976 with respect to property comprised in a settlement which commenced before that day, subsection (2)(a) above shall have effect with the substitution of a reference to that day for the reference to the commencement of the settlement, and the condition stated in subsection (2)(b) above shall be treated as satisfied if—
a
it is satisfied in respect of the period beginning with 15th April 1976, or
b
it is satisfied in respect of the period beginning with 1st April 1977 and either there was no beneficiary living on 15th April 1976 or the beneficiaries on 1st April 1977 included a living beneficiary, or
c
there is no power under the terms of the settlement whereby it could have become satisfied in respect of the period beginning with 1st April 1977, and the trusts of the settlement have not been varied at any time after 15th April 1976.
7
In subsection (1) above " persons " includes unborn persons ; but the conditions stated in that subsection shall be treated as not satisfied unless there is or has been a living beneficiary.
8
For the purposes of this section a person's children shall be taken to include his illegitimate children, his adopted children and his stepchildren.

Property becoming subject to employee trusts
115
1
Tax shall not be charged under section 108 above in respect of shares in or securities of a company which cease to be relevant property on becoming held on trusts of the description specified in paragraph 17(1) of Schedule 5 to the Finance Act 1975 if the conditions in subsection (2) below are satisfied.
2
The conditions referred to in subsection (1) above are—
a
that the persons for whose benefit the trusts permit the settled property to be applied include all or most of the persons employed by or holding office with the company;
b
that, at the date when the shares or securities cease to be relevant property or at a subsequent date not more than one year thereafter, both the conditions mentioned in subsection (2) of section 67 of the Finance Act 1978 (read with subsections (3) and (6)) are satisfied, without taking account of shares or securities held on other trusts; and
c
that the trusts do not permit any of the settled property to be applied at any time (whether during any such period as is referred to in the said paragraph 17(1) or later) for the benefit of any of the persons mentioned in subsection (4) of the said section 67 (read with subsections (5) and (6)) or for the benefit of the settlor or of any person connected with him.
3
In its application for the purposes of subsection (2)(c) above, section 67(4) of the Finance Act 1978 shall be construed as if—
a
references to section 67(1) were references to subsection (2) above; and
b
references to the time of the transfer of value were references to the time when the property ceases to be relevant property.

Property leaving employee trusts and newspaper trusts
116
1
This section applies to settled property to which paragraph 17 of Schedule 5 to the Finance Act 1975 applies if no qualifying interest in possession subsists in it.
2
Subject to subsections (4) and (5) below, there shall be a charge to tax under this section—
a
where settled property ceases to be property to which this section applies, otherwise than by virtue of a payment out of the settled property, and
b
where a payment is made out of settled property to which this section applies for the benefit of a person within subsection (3) below, or a person connected with such a person, and
c
in a case in which paragraphs (a) and (b) above do not apply, where the trustees make a disposition (otherwise than by way of a payment out of the settled property) as a result of which the value of settled property to which this section applies is less than it would be but for the disposition.
3
A person is within this subsection if—
a
he has directly or indirectly provided any of the settled property otherwise than by additions not exceeding in value £1,000 in any one year; or
b
in a case where the employment in question is employment by a close company, he is a participator in relation to that company and either—
i
is beneficially entitled to, or to rights entitling him to acquire, not less than 5 per cent, of, or of any class of the shares comprised in, its issued share capital, or
ii
would, on a winding-up of the company, be entitled to not less than 5 per cent, of its assets ; or
c
he has acquired an interest in the settled property for a consideration in money or money's worth.
4
If the trusts are those of a profit sharing scheme approved in accordance with Schedule 9 to the Finance Act 1978, tax shall not be chargeable under this section by virtue of subsection (3)(b) above on an appropriation of shares in pursuance of the scheme.
5
Subsections (3) to (9) of section 113 above shall apply for the purposes of this section as they apply for the purposes of that section (with the substitution of a reference to subsection (2)(c) above for the reference in section 113(4) to section 113(2)(b)).
6
In this section—
a
" close company " and " participator " have the same meanings as in section 39 of the Finance Act 1975; and
b
"year" means the period beginning with 26th March 1974 and ending with 5th April 1974, and any subsequent period of twelve months ending with 5th April;
and a person shall be treated for the purposes of this section as acquiring an interest for a consideration in money or money's worth if he becomes entitled to it as a result of transactions which include a disposition for such consideration (whether to him or another) of that interest or of other property.

Maintenance funds for historic buildings
117
Schedule 16 to this Act shall have effect.

Protective trusts and trusts for disabled persons
118
1
This section applies to—
a
settled property which is held on trusts to the like effect as those specified in section 33(1)(ii) of the Trustee Act 1925 and which became held on those trusts on the failure or determination before 12th April 1978 of trusts to the like effect as those specified in section 33(1)0). and
b
settled property within paragraph 19 of Schedule 5 to the Finance Act 1975, as it applies to property which was transferred into settlement before 10th March 1981.
2
Subject to subsection (3) below, there shall be a charge to tax under this section—
a
where settled property ceases to be property to which this section applies, otherwise than by virtue of a payment out of the settled property for the benefit of the relevant beneficiary, and
b
in a case in which paragraph (a) above does not apply, where the trustees make a disposition (otherwise than by way of such a payment) as a result of which the value of settled property to which this section applies is less than it would be but for the disposition.
3
Subsections (3) to (9) of section 113 above shall apply for the purposes of this section as they apply for the purposes of that section.
4
In this section " the relevant beneficiary " means—
a
where this section applies by virtue of subsection (1)(a) above, the principal beneficiary within the meaning of section 33 of the Trustee Act 1925 :
b
where this section applies by virtue of subsection (1)(b) above, the person mentioned in paragraph 19(1) of Schedule 5 to the Finance Act 1975.

Property becoming held for charitable purposes or by exempt bodies
119
1
Subject to the following provisions of this section, tax shall not be charged under this Chapter in respect of property which ceases to be relevant property, or ceases to be property to which section 113, 114, 116 or 118 above or paragraph 2 of Schedule 16 to this Act applies, on becoming—
a
property held for charitable purposes only without limit of time (defined by a date or otherwise);
b
the property of a political party qualifying for exemption under paragraph 11 of Schedule 6 to the Finance Act 1975;
c
the property of a body mentioned in paragraph 12 of that Schedule (national purposes etc.); or
d
the property of a body not established or conducted for profit.
2
Subsection (1)(d) above shall not apply unless the Treasury so direct, whether before or after the time when the property becomes the property of the body in question, and the property is within sub-paragraph (2) of paragraph 13 of Schedule 6 to the Finance Act 1975; and sub-paragraphs (3) to (8) of that paragraph shall apply for the purposes of this subsection as they apply for the purposes of that paragraph.
3
If the amount on which tax would be charged apart from this section in respect of any property exceeds the value of the property immediately after it becomes property of a description specified in paragraphs (a) to (d) of subsection (1) above (less the amount of any consideration for its transfer received by the trustees), that subsection shall not apply but the amount on which tax is charged shall be equal to the excess.
4
The reference in subsection (3) above to the amount on which tax would be charged is a reference to the amount on which it would be charged—
a
assuming (if it is not in fact so) that the tax is not paid out of settled property, and
b
apart from Schedule 10 to the Finance Act 1976 (business property) and Schedule 14 to the Finance Act 1981 (agricultural property);
and the reference in that subsection to the amount on which tax is charged is a reference to the amount on which it would be charged on that assumption and apart from those Schedules.
5
Subsection (1) above shall not apply in relation to any property if the disposition by which it becomes property of the relevant description is defeasible; but for this purpose a disposition which has not been defeated at a time twelve months after the property concerned becomes property of the relevant description and is not defeasible after that time shall be treated as not being defeasible, whether or not it was capable of being defeated before that time.
6
Subsection (1) above shall not apply in relation to any property if it or any part of it may become applicable for purposes other than charitable purposes or purposes of a body mentioned in subsection (1)(b), (c) or (d) above.
7
Subsection (1) above shall not apply in relation to any property if, at or before the time when it becomes property of the relevant description, an interest under the settlement is or has been acquired for a consideration in money or money's worth by an exempt body otherwise than from a charity or a body mentioned in subsection (1)(b) or (c) above.
8
In subsection (7) above " exempt body " means a charity or a body mentioned in subsection (1)(b), (c) or (d) above ; and for the purposes of subsection (7) above a body shall be treated as acquiring an interest for a consideration in money or money's worth if it becomes entitled to the interest as a result of transactions which include a disposition for such consideration (whether to that body or to another person) of that interest or of other property.

Miscellaneous

Initial interest of settlor or spouse
120
1
Where a settlor or his spouse is beneficially entitled to an interest in possession in property immediately after it becomes comprised in the settlement, the property shall for the purposes of this Chapter be treated as not having become comprised in the settlement on that occasion ; but when the property or any part of it becomes held on trusts under which neither of those persons is beneficially entitled to an interest in possession, the property or part shall for those purposes be treated as becoming comprised in a separate settlement made by that one of them who ceased (or last ceased) to be beneficially entitled to an interest in possession in it.
2
References in subsection (1) above to the spouse of a settlor include references to the widow or widower of a settlor.
3
This section applies whether the occasion first referred to in subsection (1) above occurred before or after the passing of this Act, but not if it occurred before 27th March 1974.

Property moving between settlements
121
1
Where property which ceases to be comprised in one settlement becomes comprised in another then, unless in the meantime any person becomes beneficially entitled to the property (and not merely to an interest in possession in the property), it shall for the purposes of this Chapter be treated as remaining comprised in the first settlement.
2
Subsection (1) above applies only if the date on which property ceases to be comprised in a settlement falls after 9th December 1981; but where property ceased to be comprised in one settlement before 10th December 1981 and after 26th March 1974 and, by the same disposition, became comprised in another settlement, it shall for the purposes of this Chapter be treated as remaining comprised in the first settlement.

Excluded property
122
1
For the purposes of this Chapter property to which section 120 or 121 above applies shall not be taken to be excluded property by virtue of paragraph 2(1)(a) of Schedule 5 to the Finance Act 1975 unless the condition in subsection (3) below is satisfied (in addition to the conditions in that paragraph that the property is situated outside the United Kingdom and that the settlor was not domiciled there when the settlement was made).
2
Section 108(8) above shall not have effect in relation to property to which section 120 or 121 above applies unless the condition in subsection (3) below is satisfied (in addition to the condition in section 108(8) that the settlor was not domiciled in the United Kingdom when the settlement was made).
3
The condition referred to in subsections (1) and (2) above is—
a
in the case of property to which section 120 above applies, that the person who is the settlor in relation to the settlement first mentioned in that section, and
b
in the case of property to which subsection (1) or (2) of section 121 above applies, that the person who is the settlor in relation to the second of the settlements mentioned in the subsection concerned,
was not domiciled in the United Kingdom when that settlement was made.
4
In determining for the purposes of section 108(8) whether the condition in subsection (3) above is satisfied in relation to property which became comprised in the settlement before 10th December 1974, section 45 of the Finance Act 1975 shall be disregarded.

Property becoming settled on a death
123
Property which becomes comprised in a settlement in pursuance of a will or intestacy shall for the purposes of this Chapter be taken to have become comprised in it on the death of the testator or intestate (whether it occurred before or after the passing of this Act).

Income applied for charitable purposes
124
For the purposes of this Chapter, where the trusts on which settled property is held require part of the income of the property to be applied for charitable purposes, a corresponding part of the settled property shall be regarded as held for charitable purposes.

Annual charges under Finance Act 1975
125
No charge to tax shall be imposed under paragraph 12(2) of Schedule 5 to the Finance Act 1975 by reference to any year ending after 31st December 1981 ; and any tax charged under that provision and not already allowed as a credit under paragraph 12(3) of that Schedule or under this section shall be allowed as a credit against tax chargeable under this Chapter in respect of the settled property or part concerned.

Minor interpretative provisions
126
1
In this Chapter, unless the context otherwise requires—
- " payment" includes a transfer of assets other than money; and
- " quarter " means a period of three months.
2
In this Chapter " trade or professional compensation fund " means a fund which is maintained or administered by a representative association of persons carrying on a trade or profession and the only or main objects of which are compensation for or relief of losses or hardship that, through the default or alleged default of persons carrying on the trade or profession or of their agents or servants, are incurred or likely to be incurred by others.

Amendments
127
Schedule 17 to this Act (which makes amendments relating to the preceding provisions of this Chapter) shall have effect.
PART V

Stamp Duty

Reduction of duty on conveyances and leases
128
1
In subsection (1) of section 55 of the Finance Act 1963 and in the Table in Part I of Schedule 11 to that Act (under which stamp duty is not chargeable on conveyances and transfers certified at £20,000 and is chargeable at reduced rates on those certified at £25,000, £30,000 and £35,000) and in subsection (1) of section 4 of the Finance Act (Northern Ireland) 1963 and in the Table in Part I of Schedule 1 to that Act (which make similar provision for Northern Ireland) for " £20,000 ", "£25,000", "£30,000" and "£35,000", wherever occurring, there shall be substituted respectively " £25,000 " , "£30,000", " £35,000 " and " £40,000 ".
2
In subsection (2) of the said section 55 and of the said section 4 (under which the relief afforded by subsection (1) of those sections is not available as respects the duty chargeable in respect of the premium for a lease if the consideration includes rent exceeding £250 a year) for " £250 " there shall be substituted " £300 ".
3
In the heading " Lease or Tack " in Schedule 1 to the Stamp Act 1891 as it applies throughout the United Kingdom—
a
in paragraph (2) (a) (duty where definite term less than a year of furnished dwelling-house and rent exceeds £400) for " £400 " there shall be substituted " £500 " , and
b
in the Table in paragraph (3) (which provides for duty on rent in the case of any other term and the first column of which indicates the rent, the second column the duty where the term does not exceed 7 years or is indefinite, the third column the duty where the term exceeds 7 years but not 35 years, the fourth column the duty where the term exceeds 35 years but not 100 years and the fifth column the duty where the term exceeds 100 years) for the last entry there shall be substituted—
Exceeding £400 and not exceeding £450. | Nil | 9.00 | 54.00 | 108.00
Exceeding £450 and not exceeding £500. | Nil | 10.00 | 60.00 | 120.00
Exceeding £500: for any full sum of £50 and also for any fractional part thereof. | 0.50 | 1.00 | 6.00 | 12.00
4
This section applies to instruments executed on or after 22nd March 1982 and shall be deemed to have come into force on that date.

Exemption from duty on grants, transfers to charities, etc.
129
1
Where any conveyance, transfer or lease is made or agreed to be made to a body of persons established for charitable purposes only or to the trustees of a trust so established or to the Trustees of the National Heritage Memorial Fund, no stamp duty shall be chargeable by virtue of—
a
any of the following headings in Schedule 1 to the Stamp Act 1891, namely, " Conveyance or Transfer on Sale ". " Conveyance or Transfer of any kind not hereinbefore described " and " Lease or Tack ". or
b
section 74 of the Finance (1909-10) Act 1910 (gifts inter vivos),
on the instrument by which the conveyance, transfer or lease, or the agreement for it, is effected.
2
An instrument in respect of which stamp duty is not chargeable by virtue only of subsection (1) above shall not be treated as duly stamped unless it is stamped in accordance with section 12 of the Stamp Act 1891 with a stamp denoting that it is not chargeable with any duty.
3
This section applies to instruments executed on or after 22nd March 1982 and shall be deemed to have come into force on that date.

Exemption from duty for substituted life policies
130
1
In any case where, for the purposes of the enactments specified in subsection (2) of section 34 of this Act, policies which are the earlier policy and the later policy, within the meaning of that section, are treated as a single policy, stamp duty shall not be chargeable on the policy of life insurance which is the later policy if it comes into existence on or after 25th March 1982.
2
This section shall be deemed to have come into force on 25th March 1982.

Maintenance funds for historic buildings
131
In section 98(1) of the Finance Act 1980 (maintenance funds for historic buildings) for the words from "section 89(4)(d) " to " section 90(3) above " there shall be substituted the words " paragraph 1(5) or 3(1) of Schedule 16 to the Finance Act 1982 no charge to capital transfer tax in respect of the property ceasing to be comprised in the settlement or a reduced charge to that tax by virtue of paragraph 1(8) or 3(4) of that Schedule ".
PART VI

Oil Taxation
CHAPTER I

General

Increase of petroleum revenue tax and ending of supplementary petroleum duty
132
1
With respect to chargeable periods ending after 31st December 1982, section 1(2) of the principal Act (rate of petroleum revenue tax) shall be amended by substituting for the words " 70 per cent. " the words " 75 per cent.".
2
At the end of subsection (5) of section 122 of the Finance Act 1981 (the chargeable periods for which supplementary petroleum duty is chargeable) for the words " and 30th June 1982 " there shall be substituted the words " 30th June 1982 and 31st December 1982 and to no other periods ".

Export sales of gas
133
1
In section 2 of the principal Act (assessable profits and allowable losses) at the beginning of subsection (5) there shall be inserted the words " Subject to subsection (5A) below " and at the end of that subsection there shall be inserted the following subsection—
5A
In any case where oil consisting of gas is disposed of in a sale at arm's length and the terms of the contract are such that the seller is required to transport the gas from a place on land in the United Kingdom for delivery at a place outside the United Kingdom or to meet some or all of the costs of or incidental to its transportation from and to such places then, for the purposes of this Part of this Act-
a
the price received or receivable for the gas shall be deemed to be that for which it would have been sold, and
b
the gas shall be deemed to be delivered at the time it would have been delivered,
if the terms of the contract required the gas to be delivered as mentioned in paragraph 2(2)(b) of Schedule 3 to this Act and did not require the seller to meet any such costs as are mentioned above.
2
In section 122(3) of the Finance Act 1981 (gross profit for purposes of supplementary petroleum duty) for " 2(4) and (5) " there shall be substituted " 2(4) to (5A) ".
3
This section has effect with respect to chargeable periods ending after 31st December 1981.

Alternative valuation of ethane used for petrochemical purposes
134
1
Where an election is made under this section and accepted by the Board, the market value for taxation purposes of any ethane to which the election applies shall be determined, not in accordance with paragraphs 2, 2A and 3 of Schedule 3 to the principal Act (value under a notional contract), but in accordance with a price formula specified in the election; and, in relation to any such ethane, any reference to market value in any other provision of the principal Act shall be construed accordingly.
2
Subject to subsection (3) below, an election under this section applies only to ethane—
a
which, during the period covered by the election, is either disposed of otherwise than in sales at arm's length or relevantly appropriated ; and
b
which is used or to be used for petrochemical purposes by or on behalf of the person to whom it is so disposed of or, as the case may be, by or on behalf of the participator by whom it is appropriated ; and
c
which is not subjected to fractionation between the time at which it is disposed of or appropriated as mentioned in paragraph (a) above and the time at which it is used as mentioned in paragraph (b) above.
3
In any case where—
a
at a time during the period covered by an election, a market value falls to be determined for ethane to which subsection (4) (b) or subsection (5)(d) of section 2 of the principal Act applies (oil stocks at the end of chargeable periods), and
b
after the expiry of the chargeable period in question, the ethane is disposed of or appropriated and used as mentioned in subsection (2) above,
the market value of that ethane at the time referred to in paragraph (a) above shall be determined as if it were then ethane to which the election applies.
4
Where any ethane is used principally for the petrochemical purposes specified in the election but some of it is used for fuel, as an incident of the principal use, the whole of it shall be regarded as ethane to which the election applies; but, subject thereto, the market value of ethane used otherwise than for those purposes shall be determined as if no election had been made.
5
The provisions of Schedule 18 to this Act shall have effect for supplementing this section.
6
In the preceding provisions of this section—
a
" ethane" means oil consisting of gas of which the largest component by volume over any chargeable period is ethane and which—
i
before being disposed of or appropriated as mentioned in subsection (2)(a) above either is not subjected to initial treatment or is subjected to initial treatment which does not include fractionation, or
ii
results from the fractionation of gas before it is disposed of or relevantly appropriated ;
b
" taxation purposes" means the purposes of Part I of the principal Act and of Part VIII of the Finance Act 1981 (supplementary petroleum duty).
7
In this section " fractionation " means the treatment of gas in order to separate gas of one or more kinds as mentioned in paragraph 2A(3) of Schedule 3 to the principal Act; and for the purposes of subsection (6)(a) above.—
a
the proportion of ethane in any gas shall be determined at a temperature of 15 degrees centigrade and at a pressure of one atmosphere ; and
b
" component" means ethane, methane or liquefied petroleum gas.

Determination of oil fields
135
1
In any case where a determination of an oil field is made under Schedule 1 to the principal Act and before the date of the determination oil has been won from the oil field so determined.—
a
Part I of the principal Act, except Schedule 7, and Part VIII of the Finance Act 1981 (supplementary petroleum duty) shall apply as if the determination had been made immediately before oil was first won from the field;
b
where the actual date of the determination is later than the date which by virtue of paragraph (a) above is the end of a chargeable period for the oil field, then as respects that chargeable period sections 33(1) and 34 of the Taxes Management Act 1970 (in their application by virtue of paragraph 1 of Schedule 2 to the principal Act), paragraphs 2(1), 5(1) and 13 of Schedule 2 to the principal Act and paragraph 9 of Schedule 16 to the Finance Act 1981 shall have effect as if any reference to the end of a chargeable period were a reference to the actual date of the determination ;
c
where the actual date of the determination is later than the date which by virtue of paragraph (a) above is the end of a claim period in relation to the oil field, then as respects that claim period paragraph 2(1) of Schedule 5. to the principal Act and paragraph 1(2) of Schedule 6. to that Act shall have effect as if any reference to the end of the claim period in which the expenditure is incurred were a reference to that actual date; and
d
where the actual date of the determination is later than the date which by virtue of paragraph (a) above is the end of the transfer period, within the meaning of Schedule 17 to the Finance Act 1980, in relation to the oil field, then as respects that transfer period paragraph 3(1) of that Schedule shall have effect as if the reference to the end of the transfer period were a reference to that actual date.
2
In any case where—
a
a determination is made under paragraph 5 of Schedule 1 to the principal Act (variation of fields) varying an earlier determination; and
b
in consequence of that variation an existing oil field is altered to any extent;
then Part I of the principal Act and Part VIII of the Finance Act 1981 shall apply in relation to the oil field subject only to the modifications provided by subsection (3) below.
3
Where subsection (2) above applies—
a
the time allowed—
i
by paragraph 2 or paragraph 5 of Schedule 2 to the principal Act for making returns, or
ii
by paragraph 3 of Schedule 17 to the Finance Act 1980 for delivering notices,
shall as respects returns or notices containing such particulars as may be required in consequence of the later determination be extended to a period ending, in the case of a return under paragraph 2 or a notice under paragraph 3, two months and, in the case of a return under paragraph 5, one month after the actual date of that determination;
b
any claim falling to be made in accordance with Schedule 5 or 6 to the principal Act in respect of any expenditure incurred before the actual date of the later determination which could not have been made before that determination may be made at any time before the expiry of the period of six years beginning with that date;
c
section 1 of the Petroleum Revenue Tax Act 1980 (payments of tax on account), section 105 of the Finance Act 1980 (advance payments of tax) and paragraph 10 of Schedule 16 to the Finance Act 1981 (payments on account of supplementary petroleum duty) shall not apply in relation to any return made under paragraph 2 of Schedule 2 to the principal Act in so far as it is made by virtue of paragraph (a) above ; and
d
section 139 below (advance petroleum revenue tax) shall not apply in relation to so much of the gross profit as accrues to any person in a chargeable period ending before the actual date of the later determination by virtue only of that later determination.
4
In subsection (3) of section 12 of the principal Act (references to things done etc. before determination of field) the words from " as regards " to " any oil field " shall cease to have effect.
5
This section has effect in relation to determinations made after 31st December 1981.

Treatment of losses and charges on income
136
1
In section 13 of the principal Act (treatment of oil extraction activities etc. for purposes of income tax and corporation tax) after subsection (2) there shall be inserted the following subsection—
2A
In any case where—
a
in any chargeable period a person incurs a loss in activities (in this subsection referred to as " separate activities ") which, for that or any subsequent chargeable period, are treated by virtue of subsection (1) above as a separate trade for the purposes specified in that subsection, and
b
in any subsequent chargeable period any of his trading income is derived from activities (in this subsection referred to as " related activities") which are not part of the separate activities but which, apart from subsection (1) above, would together with those activities constitute a single trade,
then, nothwithstanding anything in that subsection, the amount of the loss may be set off, in accordance with section 171 or section 177(1) of the Taxes Act, against so much of his trading income in any subsequent chargeable period as is derived from the related activities.
2
At the end of section 15 of the principal Act (oil extraction activities: charges on income) there shall be added the following subsection—
5
In any case where—
a
such of the charges on income which are paid by a company and allowable under section 248 of the Taxes Act as, by virtue of the preceding provisions of this section, are not allowable against that part of the company's profits referred to in subsection (2) above exceed the remaining part of its profits (in this subsection referred to as the company's " non-oil profits "), and
b
the amount of that excess is greater than the amount (if any) by which the total of the charges on income which are allowable to the company under that section exceeds the total of the company's profits,
then, for the purpose of enabling the company to surrender the excess referred to in paragraph (a) above by way of group relief, subsection (6) of section 259 of the Taxes Act shall have effect as if—
i
the reference therein to the amount paid by the surrendering company by way of charges on income were a reference to so much of that amount as is allowable only against the company's non-oil profits; and
ii
the reference therein to the surrendering company's profits were a reference to its non-oil profits alone.
3
The amendments made by subsections (1) and (2) above.—
a
so far as they relate to corporation tax, shall be deemed to have had effect for accounting periods beginning before the passing of this Act and on or after 1st January 1980 and shall have effect for subsequent accounting periods; and
b
so far as they relate to income tax, shall be deemed to have had effect for the years 1980-81 and 1981-82 and shall have effect for subsequent years of assessment ;
and accordingly subsection (1) above applies to losses incurred in any such accounting period or year of assessment and subsection (2) above applies to charges on income paid in any such accounting period.

Expenditure met by regional development grants to be disregarded for certain purposes
137
1
In paragraph 8 of Schedule 3 to the principal Act (certain subsidised expenditure to be disregarded) in sub-paragraph (1) the words from " unless it is so met by a grant" onwards shall be omitted.
2
Subject to subsection (3) below, in any case where, by virtue of the said paragraph 8 as amended by subsection (1) above, expenditure which has been or is to be met by a regional development grant is not to be regarded for any of the purposes of Part I of the principal Act as having been incurred by any person, that particular grant shall be regarded as not falling within the reference to a regional development grant in—
a
section 84(1) of the Capital Allowances Act 1968 (treatment of subsidised expenditure for the purposes of the main reliefs for capital expenditure); or
b
section 95(6) of that Act (treatment of subsidised expenditure for the purposes of allowances relevant to scientific research).
3
If, in a case falling within subsection (2) above, only a proportion of the expenditure which has been or is to be met by a regional development grant is expenditure which, if it were not so met, would be allowable under section 3 or section 4 of the principal Act, only a corresponding proportion of the grant shall be regarded as not falling within the reference to regional development grant in the provisions referred to in subsection (2) above.
4
Subsection (5) below applies in any case where—
a
a person has incurred expenditure (by way of purchase, rent or otherwise) on the acquisition of an asset in a transaction to which paragraph 2 of Schedule 4 to the principal Act applies (transactions between connected persons and otherwise than at arm's length), and
b
the expenditure incurred by the other person referred to in that paragraph in acquiring, bringing into existence or enhancing the value of the asset as mentioned in that paragraph has been or is to be met by a regional development grant and, in whole or in part, falls to be taken into account under Chapter I of Part I, or under Part II, of the Capital Allowances Act 1968 (industrial buildings and structures and scientific research) or Chapter I of Part III of the Finance Act 1971 (machinery and plant).
5
Where this subsection applies, for the purposes of the charge of income tax or corporation tax on the income arising from those activities of the person referred to in subsection (4) (a) above which are treated by virtue of subsection (1) of section 13 of the principal Act as a separate trade for those purposes, the expenditure referred to in subsection (4)(a) above shall be treated as reduced by the amount of the regional development grant referred to in subsection (4)(b) above.
6
In this section " regional development grant" means a grant made under Part I of the Industry Act 1972 or such grant made under an enactment of the Parliament of Northern Ireland or Measure of the Northern Ireland Assembly as has been or may be declared by the Treasury under section 84 or section 95 of the Capital Allowances Act 1968 to correspond to a grant made under the said Part I.
7
This section applies in any case where—
a
the expenditure to which the regional development grant relates is incurred after 9th March 1982 ; and
b
the regional development grant concerned is paid after that date.

Provisions supplementary to section 137
138
1
The provisions of this section apply where—
a
expenditure incurred by any person in relation to an asset in any relevant period (in this section referred to as " the initial period ") has been or is to be met by a regional development grant; and
b
notwithstanding the provisions of section 137 above, in determining that person's liability to income tax or corporation tax for the initial period the whole or some part of that expenditure falls to be taken into account under Chapter I of Part I, or under Part II, of the Capital Allowances Act 1968 (allowances in respect of industrial buildings and structures and scientific research) or Chapter I of Part III of the Finance Act 1971 (allowances in respect of machinery and plant); and
c
in a relevant period subsequent to the initial period, either expenditure on the asset becomes allowable under section 3 or section 4 of the principal Act or the proportion of any such expenditure which is so allowable is different as compared with the initial period;
and in the following provisions of this section, the subsequent relevant period referred to in paragraph (c) above is referred to as " the adjustment period ".
2
Where this section applies, there shall be redetermined for the purposes of this section the amount of the expenditure referred to in paragraph (a) of subsection (1) above which would have been taken into account as mentioned in paragraph (b) of that subsection if the circumstances referred to in paragraph (c) of that subsection had existed in the initial period; and according to whether the amount as so redetermined is greater or less than the amount actually taken into account as mentioned in subsection (1)(b) above, the difference is in the following provisions of this section referred to as the increase or the reduction in the allowance.
3
If there is an increase in the allowance, then, for the purposes of the provisions referred to in subsection (1)(b) above, an amount of capital expenditure equal to the increase shall be deemed to have been incurred by the person concerned in the adjustment period on an extension of or addition to the asset referred to in subsection (1)(a) above.
4
If there is a reduction in the allowance, then, for the purpose of determining the liability to income tax or corporation tax of the person concerned, he shall be treated as having received in the adjustment period, as income of the trade in connection with which the expenditure referred to in subsection (1)(a) above was incurred, a sum equal to the amount of the reduction in the allowance.
5
In this section " relevant period " means an accounting period of a company or a year of assessment.
CHAPTER II

Advance Petroleum Revenue Tax

Liability for APRT and credit against liability for petroleum revenue tax
139
1
For each of the following chargeable periods, namely—
a
the first chargeable period ending after 31st December 1982 in which, subject to sections 140 and 141 below, a gross profit accrues to a participator from an oil field, and
b
every one out of the nine immediately succeeding chargeable periods in which, subject to those sections, a gross profit accrues to him from that field,
the participator shall be liable to pay an amount of petroleum revenue tax (to be known as " advance petroleum revenue tax " and in this Chapter referred to as " APRT ") in accordance with this section.
2
Subject to sections 140 and 141 below, APRT shall be payable on the gross profit accruing to the participator in the chargeable period in question and shall be payable at the rate of 20 per cent.
3
The aggregate of—
a
the APRT which is paid by a participator in respect of any chargeable period and not repaid, and
b
any APRT which is carried forward from the previous chargeable period by virtue of subsection (4) below,
shall be set against the participator's liability for petroleum revenue tax charged in any assessment made on him in respect of the assessable profit accruing to him in the period referred to in paragraph (a) above from the oil field in question (which liability is in this Chapter referred to as his liability for petroleum revenue tax for a chargeable period) and shall, accordingly, discharge a corresponding amount of that liability.
4
If, for any chargeable period, the aggregate of—
a
the APRT which is paid by a participator for that period and not repaid, and
b
any APRT carried forward from the previous chargeable period by virtue of this subsection,
exceeds the participator's liability for petroleum revenue tax for that period, the excess shall be carried forward as an accretion to the APRT paid (and not repaid) for the next chargeable period; and any reference in this Chapter to a participator's APRT credit for a chargeable period is a reference to the aggregate of the APRT paid for that period and not repaid and any APRT carried forward from the previous chargeable period by virtue of this subsection.
5
The references in section 1 of the Provisional Collection of Taxes Act 1968 to petroleum revenue tax include a reference to APRT.
6
The provisions of Schedule 19 to this Act shall have effect for supplementing this section and, accordingly, section 105 of the Finance Act 1980 (advance payments of petroleum revenue tax) shall cease to have effect with respect to chargeable periods ending after 30th June 1983.
7
This Chapter shall be included in the Oil Taxation Acts for the purposes of sections 107 and 108 of the Finance Act 1980 (transmedian fields and gas banking schemes).

Increase of gross profit by reference to royalties in kind
140
1
This section applies where part of a participator's share of the oil won and saved from an oil field is delivered by him in a chargeable period to the Secretary of State pursuant to a requirement imposed under the terms of a licence granted under the Petroleum (Production) Act 1934.
2
In determining for the purposes of APRT the gross profit accruing to the participator from the field in the chargeable period the aggregate of the amounts mentioned in paragraphs (a), (b) and (c) of subsection (5) of section 2 of the principal Act shall be increased by multiplying it by a fraction of which—
a
the numerator is the total of the quantity of oil won from the field which is delivered or relevantly appropriated by him in the period including the oil delivered to the Secretary of State ; and
b
the denominator is that total excluding the oil delivered to the Secretary of State.
3
Where oil is delivered pursuant to a requirement which relates to oil of one or more kinds but not to others, subsection (2) above shall apply only in relation to oil of the kind or kinds to which the requirement relates; and where oil is delivered pursuant to a requirement which specifies different proportions in relation to different kinds of oil, that subsection shall apply separately in relation to each of those kinds.
4
For the purposes of subsection (5) of section 2 of the principal Act as it applies in determining for the purposes of APRT the gross profit accruing to a participator, the exclusion by paragraph 4 of Schedule 3 to that Act of oil delivered to the Secretary of State under the terms of a licence granted under the said Act of 1934 shall be deemed to extend to oil which is inadvertently delivered to him in excess of the amount required; and oil so delivered shall be treated for the purposes of this section as delivered pursuant to a requirement imposed under the terms of such a licence.
5
Any reference in this section or in section 141 below to the purposes of APRT includes a reference to the purpose of determining whether APRT is payable for a chargeable period by virtue of section 139(1) above.

Reduction of gross profit by reference to exempt allowance
141
1
For the purposes of APRT there shall be for each oil field in each chargeable period an exempt allowance of 500,000 metric tonnes of oil divided between the participators in shares proportionate to their shares of the oil won and saved from the field during the period.
2
If the gross profit accruing to a participator in a chargeable period from a field exceeds the cash equivalent of his share of the exempt allowance, the gross profit shall be reduced to an amount equal to the excess.
3
If the gross profit accruing to a participator in a chargeable period from a field does not exceed the cash equivalent of his share of the exempt allowance, the gross profit shall be reduced to nil.
4
Subject to subsection (5) below, the cash equivalent of a participator's share of the exempt allowance for an oil field for a chargeable period shall be equal to such proportion of the gross profit accruing to him from the field in that period (before any reduction under this section) as his share of the exempt allowance bears to his share, exclusive of excluded oil within the meaning of section 10 of the principal Act, of the oil won and saved from the field during the period.
5
If a participator in an oil field so elects by notice in writing given to the Board at the time when he makes his return under paragraph 2 of Schedule 2 to the principal Act for a chargeable period, the cash equivalent of his share of the exempt allowance for the field for that period shall be determined under subsection (4) above—
a
to the extent that his share of that exempt allowance does not exceed his share of the oil (other than gas) won and saved from the field in the period, as if in computing the gross profit accruing to him in the period all amounts relating to gas fell to be disregarded; and
b
to the extent, if any, that his share of that allowance exceeds his share of the oil (other than gas) so won and saved, as if in computing the gross profit so accruing all amounts relating to oil other than gas fell to be disregarded.
6
In this section references to a participator's share of the oil won and saved from a field are to his share as expressed in metric tonnes and for that purpose 1,100 cubic metres of oil consisting of gas at a temperature of 15 degrees centigrade and pressure of one atmosphere shall be counted as equivalent to one metric tonne of oil other than gas.

Consequences of crediting APRT against liability for petroleum revenue tax
142
1
If it appears to the Board—
a
that any amount of APRT credit which has been set off against a participator's assessed liability to petroleum revenue tax for any chargeable period ought not to have been so set off, or that the amount so set off has become excessive, or
b
that, disregarding any liability to or credit for APRT, a participator is entitled to a repayment of petroleum revenue tax for any chargeable period,
then, for the purpose of securing that the liabilities of the participator to petroleum revenue tax and APRT (including interest on unpaid tax) for the chargeable period in question are what they ought to have been, the Board may make such assessments to, and shall make such repayments of, petroleum revenue tax and APRT as in their judgment are necessry in the circumstances.
2
In a case falling within paragraph (a) of subsection (1) above, any necessary assessment to petroleum revenue tax may, where the revised amount of set off is ascertained as a result of an appeal, be made at any time before the expiry of the period of six years beginning at the end of the chargeable period in which the appeal is finally determined; and in a case falling within paragraph (b) of that subsection any necessary assessment to APRT may be made at any time before the expiry of the period of six years beginning at the end of the chargeable period in which the participator became entitled as mentioned in that paragraph.
3
In subsection (1) of section 17 of the principal Act (corporation tax: deduction of petroleum revenue tax in computing income)—
a
after the words " has paid " there shall be inserted the words " or is treated by virtue of subsection (1A) below as having paid ";
b
after the words " chargeable period ", in the first place where they occur, there shall be inserted the words " not being advance petroleum revenue tax "; and
c
after the words " petroleum revenue tax paid " there shall be inserted the words " or treated as having been paid ".
4
After that subsection there shall be inserted the following subsection: —
1A
If and so far as any liability to an amount of petroleum revenue tax for any chargeable period is satisfied by an amount of advance petroleum revenue tax paid for that or any earlier chargeable period, that amount of petroleum revenue tax shall be treated for the purposes of this section as having been paid on the date on which it became due.
5
Paragraphs 13, 14 and 15 of Schedule 2 to the principal Act (payment of tax, appeals and interest on tax) apply in relation to an assessment to petroleum revenue tax under subsection (1) above as they apply to an assessment under that Schedule.
PART VII

Miscellaneous and Supplementary

Reduction of national insurance surcharge
143
1
Subject to subsection (2) below, in section 1(1) of the National Insurance Surcharge Act 1976 (surcharge of 3½ per cent, on secondary Class 1 contributions) for the words " 3½ per cent." there shall be substituted the words " 2½ per cent. ".
2
Subject to subsections (3) and (4) below, this section has effect in relation to any contribution in respect of earnings which are paid on or after 2nd August 1982; but with respect to earnings paid in a tax week beginning before 6th April 1983, subsection (1) above shall have effect as if the words substituted for " 3i per cent. " were " 2 per cent.", not" 2\ per cent.".
3
The amendments made by subsections (1) and (2) above do not apply to any secondary Class I contribution which any of the bodies specified in subsection (4) below is liable to pay in respect of earnings paid in a tax week beginning before 6th April 1983 ; and accordingly in the case of any such contributions, the rate of surcharge shall continue to be 3½ per cent.
4
The bodies referred to in subsection (3) above are—
a
in England and Wales, those which, by virtue of section 53(5) of the Local Government, Planning and Land Act 1980, are local authorities for the purposes of Part VI of that Act;
b
in Scotland, regional, islands and district councils ;
c
the Receiver for the Metropolitan Police District and the police authority for every police area other than that District;
d
in Scotland, the fire authority for every area falling with in a combined area;
e
the committees established under paragraph 2 of Schedule 3 to the Powers of Criminal Courts Act 1973 (probation and after-care committees); and
f
magistrates' courts committees, within the meaning of section 19 of the Justices of the Peace Act 1979, and the committee of magistrates referred to in section 35(1) of that Act (the committee for the inner London area).
5
In this section " tax week " has the same meaning as in the Social Security Act 1975.

Additional payments by programme contractors
144
1
In paragraph 5 of Schedule 4 to the Broadcasting Act 1981 (accounting periods of programme contractors which are bodies corporate)—
a
after sub-paragraph (2) there shall be inserted the following sub-paragraph—
2A
Where two parts of such a period as is mentioned in sub-paragraph (1) fall to be divided from each other under sub-paragraph (2)(a), section 32(4) shall have effect as if the profits and advertising receipts for each part were the profits and advertising receipts for the whole multiplied by X/(X + Y) where X and Y are respectively the number of weeks in that part and the number of weeks in the other part, counting (in each case) an odd 4 days or more as a week.
; and
b
in sub-paragraph (3) for the words " sub-paragraph (2) ", in both places where they occur, there shall be substituted the words " sub-paragraph (2)(b) ".
2
Subsection (1) above applies where the relevant order under section 32 of that Act (payments by programme contractors) is made after the passing of this Act.
3
Any contract between the Independent Broadcasting Authority and a programme contractor under which television programmes or local sound broadcasts are to be provided by the contractor, being a contract which is in force immediately before the passing of this Act, shall, until it is varied or superseded by a further contract or expires or is otherwise terminated, whichever first occurs, be deemed to be modified by virtue of this subsection so as—
a
to substitute provisions in conformity with subsection (1) above for so much (if any) of the contract as is not in conformity with that subsection; and
b
to incorporate in the contract such additional provisions as the contract is required to include in accordance with that subsection.
4
If it appears to the Independent Broadcasting Authority that subsection (1) above calls for the inclusion of additional provisions in any such contract as is mentioned in subsection (3) above, but does not afford sufficient particulars of what those provisions ought to be, the Authority may, after consulting the programme contractor, decide what those provisions are to be.
5
The first order made under section 32 of the Broadcasting Act 1981 after the passing of this Act may make, so as to take effect from 1st April 1982, provision which reduces the amount of any payments payable by virtue of subsection (1)(b) of that section; and if that order makes any such provision so as to take effect from that date, that section and paragraph 5 of Schedule 4 to that Act shall have effect in relation to the order as if any reference (however worded) to its commencement were a reference to that date.

Certificates of tax deposit: extension of interest period
145
For the purposes of certificates of tax deposit issued by the Treasury under section 12 of the National Loans Act 1968 on terms published before 31st July 1980, the date which is the due date in relation to—
a
income tax charged at a rate other than the basic rate, and
b
capital gains tax,
is by virtue of this section postponed, with respect to the year 1980-81 and any subsequent year of assessment, from the date specified in the prospectuses concerned to 1st December following the end of the year of assessment for which the tax is payable.

Transfer of assets of British National Oil Corporation
146
1
In this section—
- " the Corporation " means the British National Oil Corporation ;
- " 75 per cent, subsidiary " has the meaning given by section 532(1)(b) of the Taxes Act;
- " the subsidiary " means a 75 per cent, subsidiary of the Corporation to which any of the Corporation's assets or any of the assets of any other 75 per cent, subsidiary of the Corporation are transferred in pursuance of a scheme made under section 2(2) of the Oil and Gas (Enterprise) Act 1982 ; and
- " transferred assets " means any of the assets so transferred
2
Section 278 of the Taxes Act (deemed disposals of assets for capital gains tax where member leaves group) and section 21 of the Development Land Tax Act 1976 (deemed disposals of assets for development land tax where member leaves group) shall not have effect as respects any of the transferred assets on the subsidiary's ceasing on or after 6th April 1982 to be a 75 per cent, subsidiary of the Corporation.

Transfer of assets of British Gas Corporation
147
1
In this section—
- " the Corporation " means the British Gas Corporation; and
- " 75 per cent, subsidiary " has the meaning given by section 532(1)(b) of the Taxes Act.
2
If, in pursuance of a scheme made under section 10(2) of the Oil and Gas (Enterprise) Act 1982, any of the assets of the Corporation or of a 75 per cent, subsidiary of the Corporation are transferred to another 75 per cent, subsidiary of the Corporation, neither—
a
section 278 of the Taxes Act (deemed disposals of assets for capital gains tax where member leaves group), nor
b
section 21 of the Development Land Tax Act 1976 (deemed disposals of assets for development land tax where member leaves group),
shall have effect as respects any of the assets so transferred on that other subsidiary's ceasing to be a 75 per cent, subsidiary of the Corporation.
3
If, for the purpose of enabling the Corporation to comply with a direction given under section 7(2) of the Gas Act 1972 requiring any asset to be disposed of, the asset to which the direction relates is transferred to a 75 per cent, subsidiary of the Corporation, neither section 278 of the Taxes Act nor section 21 of the Development Land Tax Act 1976 shall have effect as respects any of the assets of that subsidiary on the subsidiary's ceasing to be a 75 per cent, subsidiary of the Corporation.

Transfer of assets of Hops Marketing Board
148
1
For the purposes of the Capital Gains Tax Act 1979, the transfer by virtue of the Hops Marketing Act 1982 of any asset from the Hops Marketing Board to any person or persons specified as mentioned in section 2(1) of that Act (in this section referred to as " the transferee ") shall be deemed to be for a consideration such that no gain or loss accrues to the Board ; and Schedule 5 to the Capital Gains Tax Act 1979 shall have effect in relation to any asset so transferred as if the acquisition or provision of it by the Board had been the acquisition or provision of it by the transferee.
2
Any transfer by virtue of the Hops Marketing Act 1982 of any interest in land from the Hops Marketing Board to the transferee shall be deemed to be a disposal to which subsection (1) of section 20 of the Development Land Tax Act 1976 (groups of companies) applies.

Recovery of overpayment of tax, etc, 150. Investment in gilt-edged unit trusts
149
1
The following section shall be substituted for section 30 of the Taxes Management Act 1970—

Recovery of overpayment of tax, etc.
30
1
Where an amount of tax has been repaid to any person which ought not to have been repaid to him, that amount of tax may be assessed and recovered as if it were unpaid tax.
2
In any case where—
a
a repayment of tax has been increased in accordance with section 47 or 48 of the Finance (No. 2) Act 1975 (supplements added to repayments of tax, etc.); and
b
the whole or any part of that repayment has been paid to any person but ought not to have been paid to him ; and
c
that repayment ought not to have been increased either at all or to any extent;
then the amount of the repayment assessed under subsection (1) above may include an amount equal to the amount by which the repayment ought not to have been increased.
3
In any case where—
a
a payment, other than a repayment of tax to which subsection (2) above applies, is increased in accordance with section 47 or 48 of the Finance (No. 2) Act 1975 ; and
b
that payment ought not to have been increased either at all or to any extent;
then an amount equal to the amount by which the payment ought not to have been increased may be assessed and recovered as if it were unpaid income tax or corporation tax.
4
An assessment to income tax or corporation tax under this section shall be made under Case VI of Schedule D.
5
An assessment under this section shall not be out of time under section 34 of this Act if it is made before the end of the chargeable period following that in which the amount so assessed was repaid or paid as the case may be.
6
Subsection (5) above is without prejudice to sections 36, 37 and 39 of this Act.
7
In this section any reference to an amount repaid or paid includes a reference to an amount allowed by way of set-off.
2
Subsection (5) of section 22 of the Finance Act 1978 (recovery of repayments of tax to spouses) shall not apply in relation to any amount repaid on or after 6th April 1982.
3
Subsection (1) above has effect in relation to any amount repaid or paid on or after 6th April 1982.
150
In Part II of Schedule 1 to the Trustee Investments Act 1961 (" narrower-range investments" in which trust property may be invested) the following paragraph shall be inserted after paragraph 10—
10A
In any units, or other shares of the investments subject to the trusts, of a unit trust scheme which, at the time of investment, is an authorised unit trust, within the the meaning of section 358 of the Income and Corporation Taxes Act 1970, in relation to which, by virtue of section 60 of the Finance Act 1980, section 354 of the said Act of 1970 does not apply.

National savings accounts
151
1
The National Savings Bank Act 1971 shall have effect subject to the amendments specified in Schedule 20 to this Act.
2
This section and Schedule 20 to this Act shall come into force on the expiry of the period of three months beginning with the day on which this Act is passed.

Additional power of Treasury to borrow
152
1
At the beginning of subsection (1) of section 12 of the National Loans Act 1968 (power of Treasury to borrow) there shall be inserted the words " Any money which the Treasury consider it expedient to raise for the purpose of promoting sound monetary conditions in the United Kingdom and ".
2
After the said subsection (1) there shall be inserted the following subsection:
1A
The terms (as to interest or otherwise) on which any balance for the time being in the National Loans Fund is to be held shall be such as may be agreed between the Treasury and the Bank of England.
3
In section 19(4) of the National Loans Act 1968 (meaning of liabilities and assets of the Fund) after the words " the assets of that Fund shall be " there shall be inserted the words " the aggregate of any balance in that Fund and ".

Variable rates of interest for government lending
153
1
For section 5 of the National Loans Act 1968 (rates of interest) there shall be substituted the following section—

Rates of interest.
5
1
This section has effect as respects any rate of interest—
a
which under any provision in Schedule 1 to this Act is to be determined in accordance with this Act, or
b
which is to be determined by the Treasury under section 3 of this Act,
and, where any enactment passed after this Act provides for the payment of interest on advances or loans made out of the National Loans Fund, and for the rate at which that interest is to be payable to be determined or approved by the Treasury, then, except as otherwise expressly provided, this section has effect as respects that rate of interest.
2
For any loan or class of loans the Treasury may determine or approve either—
a
a fixed rate of interest, that is to say a specified rate or a formula rate which is to be applied, throughout the period of the loan or any loan of that class, with the value which it has when the loan is made, or
b
a variable rate of interest, that is to say a formula rate which is to be applied, for each of the successive periods of the loan or any loan of that class which are of a length specified in the determination or approval (in this section referred to as interest periods), with the value which it has at the beginning of that period ;
and in this subsection " formula rate " means a rate which is so expressed (whether by means of a formula or otherwise) that it will or may have different values at different times.
3
The Treasury shall, on each occasion when they determine or approve a fixed rate of interest for a loan or class of loans, satisfy themselves that the rate would be at least sufficient to prevent a loss if—
a
the loan, or any loan of that class—
i
were made forthwith, and
ii
were met out of money borrowed by the Treasury at the lowest rate at which the Treasury are for the time being able to borrow money (of whatever amount) for a comparable period, and on other comparable terms, and
b
the interest on the money so borrowed, together with the Treasury's expenses of borrowing, were set off against the interest received on the loan.
4
The Treasury shall, on each occasion when they determine or approve a variable rate of interest for a loan or class of loans, satisfy themselves that the rate would be at least sufficient to prevent a loss if—
a
the loan, or any loan of that class.—
i
were made forthwith,
ii
were to be repaid at the end of its first interest period, and
iii
were met out of money borrowed by the Treasury at the lowest rate at which the Treasury are for the time being able to borrow money (of whatever amount) for a comparable period, and
b
the interest on the money so borrowed were set off against the interest received on the loan.
5
If at any time the Treasury are satisfied that a rate of interest determined or approved for a class of loans, of for a loan not yet made, would not meet the requirements of subsection (3) or, as the case may be, subsection (4) above if it were determined or approved at that time, that determination or approval shall be withdrawn; and another rate shall be determined or approved in accordance with that subsection for further loans of that class or, as the case may be, for that loan.
6
The Treasury may in determining or approving a rate of interest take into account any consideration justifying a rate higher than that required by subsection (3) or (4) above.
7
Different fixed rates of interest may be determined or approved in respect of loans which are to be made for the same length of time; and different variable rates of interest may be determined or approved for loans which are to have interest periods of the same length.
8
The Treasury shall cause—
a
all rates of interest determined from time to time by them in respect of local loans, and
b
all other rates of interest determined from time to time by them otherwise than by virtue of subsection (6) above,
to be published in the London and Edinburgh Gazettes as soon as may be after the determination of those rates.
2
The enactments amended by Schedule 1 to that Act (government lending and advances) shall have effect as if in the third column of that Schedule for the word " fixed ", wherever it occurs, there were substituted the word " determined ".
3
In subsection (9) of section 47 of the Housing (Financial Provisions) Act 1958 (loans for certain housing purposes) for the word " prescribed " there shall be substituted the word " determined ".
4
In subsection (5) of section 20 of the Crown Agents Act 1979 (grants and loans by Minister) for the words " section 5(2) of the National Loans Act 1968 (criteria for fixing " there shall be substituted the words " section 5(3) and (4) of the National Loans Act 1968 (criteria for determining ".

Local loans
154
1
Loans in pursuance of section 3 of the National Loans Act 1968 may be made by the Public Works Loan Commissioners, in addition to any loans made by them under section 78 of the Finance Act 1978, but the aggregate of—
a
the commitments of the Commissioners outstanding at any time in respect of undertakings entered into by them to grant such loans ; and
b
the advances in respect of such loans made by them under this section up to that time,
shall not exceed £4,000 million or such greater amount as may be specified in an order under subsection (2) below.
2
The Treasury may, on not more than three occasions, by order made by statutory instrument increase or further increase the limit imposed by subsection (1) above by such sum not exceeding £4,000 million as may be specified in the order.
3
No order shall be made under this section unless a draft of it has been laid before and approved by a resolution of the Commons House of Parliament.

Extinguishment of deferred liability of charities for development land tax
155
1
In so far as any charity continues, on 9th March 1982, to have a liability for development land tax which is deferred by virtue of section 25 of the Development Land Tax Act 1976 (development by charities on land acquired after 12th September 1974) that liability is hereby extinguished with effect from that date.
2
Subsection (1) above shall be construed as one with the Development Land Tax Act 1976 and the reference in that subsection to section 25 of that Act is a reference to that section as it had effect before it was replaced by section 111 of the Finance Act 1980.

Dissolution of Board of Referees
156
1
The Board of Referees mentioned in section 26 of the Capital Allowances Act 1968 is hereby dissolved and the functions of the Board transferred to the tribunal established under section 463 of the Taxes Act.
2
Schedule 21 to this Act shall have effect for the purpose of making provision consequential on this section.

Short title, interpretation, construction and repeals
157
1
This Act may be cited as the Finance Act 1982.
2
In this Act " the Taxes Act" means the Income and Corporation Taxes Act 1970.
3
Part III of this Act, so far as it relates to income tax, shall be construed as one with the Income Tax Acts, so far as it relates to corporation tax. shall be construed as one with the Corporation Tax Acts and, so far as it relates to capital gains tax, shall be construed as one with the Capital Gains Tax Act 1979.
4
Part IV of this Act shall be construed as one with Part III of the Finance Act 1975.
5
Part VI of this Act shall be construed as one with Part I of the Oil Taxation Act 1975 or, in the case of section 136, with Part II of that Act and references in Part VI to the principal Act are references to that Act.
6
The enactments and Orders mentioned in Schedule 22 to this Act (which include spent enactments) are hereby repealed to the extent specified in the third column of that Schedule, but subject to any provision at the end of any Part of that Schedule.
7
The provisions of Part XI of Schedule 22 to this Act, except in so far as they relate to the Wellington Museum Act 1947 and the Finance (No. 2) Act 1975, shall have effect in substitution for the provisions of Section B of Part VI of Schedule 20 to the Finance Act 1980 and, accordingly, that Section shall be deemed not to have taken effect at the beginning of the year 1982-83.
1979 c. 4.
1979 c. 7.
1979 c. 5.
1971 c. 10.
1979 c. 5.
1971 c. 10.
1972 c. 20.
1972 c. 10 (N.I.).
S.I. 1981/154 (N.I.).
1971 c. 10.
1973 c. 62.
1980 c. 43.
1975 c. 21.
1972 c. 10 (N.I.).
1973 c. 62.
1950 c. 7 (N.I.).
1954 c. 9 (N.I.).
1979 c. 4.
1979 c. 8.
1972 c. 68.
1968 c. 60.
1978 c. 31.
1969 c. 16 (N.I.).
S.I. 1978/1407 (N.I. 23).
1979 c. 2.
1972 c. 68.
1979 c. 2.
1972 c. 41.
1972 c. 41.
1975 c. 45.
1890 c. 39.
1972 c. 41.
1972 c. 41.
1980 c. 48.
1972 c. 41.
1980 c. 48.
1974 c. 30.
1972 c. 41.
1976 c. 40.
1976 c. 40.
1972 c. 41.
1967 c. 29.
S.I. 1981/156 (N.I. 3).
1962 c. 37.
1967 c. 31 (N.I.).
1974 c. 44.
1970 c. 35.
1977 c. 8.
1978 c. 44.
S.I. 1976/2147 (N.I. 28).
1982 c. 24.
1974 c. 28.
1981 c. 35.
S.I. 1981/1529.
S.I. 1981/1529.
S.R. 1981/372 (N.I.).
1981 c. 35.
1976 c. 71.
S.I. 1977/2156 (N.I. 27).
1975 c. 7.
1976 c. 40.
1974 c. 49.
1981 c. 31.
1980 c. 48.
1980 c. 48.
1974 c. 30.
1979 c. 14.
1980 c. 48.
1973 c. 51.
1978 c. 42.
1978 c. 42.
1975 c. 45.
1948 c. 38.
1975 c. 45.
1981 c. 35.
1976 c. 40.
1976 c. 40.
1970 c. 9.
1981 c. 35.
1975 c. 45.
1974 c. 30.
1972 c. 41.
1980 c. 48.
1981 c. 35.
1979 c. 14.
1981 c. 35.
1972 c. 41.
1972 c. 41.
1980 c. 48.
1981 c. 35.
1979 c. 14.
1981 c. 35.
1973 c. 51.
1977 c. 36.
1980 c. 48.
1981 c. 35.
1970 c. 9.
1973 c. 51.
1971 c. 68.
1980 c. 48.
1980 c. 48.
1980 c. 48.
1971 c. 68.
1981 c. 16.
1968 c. 3.
1980 c. 48.
1980 c. 48.
1968 c. 3.
1968 c. 3.
1980 c. 48.
1968 c. 3.
1981 c. 35.
1979 c. 14.
1980 c. 48.
1979 c. 14.
1970 c. 9.
1980 c. 48.
1981 c. 35.
1979 c. 14.
1970 c. 9.
1979 c. 14.
1980 c. 48.
1979 c. 14.
1976 c. 40.
1979 c. 14.
1979 c. 14.
1975 c. 45.
1975 c. 7.
1975 c. 7.
1980 c. 48.
1975 c. 7.
1925 c. 20.
S.I. 1979/1575 (N.I. 14).
1975 c. 7.
1976 c. 40.
1976 c. 40.
1975 c. 7.
1979 c. 37.
1981 c. 35.
1975 c. 7.
1978 c. 42.
1975 c. 7.
1947 c. 46.
1975 c. 7.
1975 c. 7.
1925 c. 19.
1981 c. 31.
1975 c. 7.
1981 c. 35.
1975 c. 7.
1975 c. 7.
1975 c. 7.
1981 c. 35.
1975 c. 7.
1978 c. 42.
1975 c. 7.
1978 c. 42.
1975 c. 7.
1925 c. 19.
1975 c. 7.
1976 c. 40.
1981 c. 35.
1975 c. 7.
1975 c. 7.
1963 c. 25.
1963 c. 22 (N.I.).
1891 c. 39.
1910 c. 8.
1891 c. 39.
1980 c. 48.
1981 c. 35.
1981 c. 35.
1981 c. 35.
1981 c. 35.
1970 c. 9.
1980 c. 48.
1981 c. 35.
1980 c. 48.
1980 c. 1.
1968 c. 3.
1968 c. 3.
1971 c. 68.
1972 c. 63.
1968 c. 3.
1971 c. 68.
1968 c. 2.
1980 c. 48.
1934 c. 36.
1976 c. 85.
1980 c. 65.
1973 c. 62.
1979 c. 55.
1975 c. 14.
1981 c. 68.
1981 c. 68.
1968 c. 13.
1982 c. 23.
1976 c. 24.
1982 c. 23.
1972 c. 60.
1979 c. 14.
1982 c. 5.
1982 c. 5.
1976 c. 24.
1970 c. 9.
1975 c. 45.
1978 c. 42.
1961 c. 62.
1970 c. 10.
1980 c. 48.
1971 c. 29.
1968 c. 13.
1968 c. 13.
1958 c. 42.
1979 c. 43.
1968 c. 13.
1978 c. 42.
1976 c. 24.
1976 c. 24.
1980 c. 48.
1968 c. 3.
1970 c. 10.
1979 c. 14.
1975 c. 7.
1975 c. 22.
1947 c. 46.
1975 c. 45.