Part III Income Tax, Corporation Tax and Capital Gains Tax
Chapter I General
Tax rates and personal reliefs
F5723 Charge and basic rate of income tax for 1988-89.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F5724 Higher and additional rates of income tax.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F5725 Personal reliefs.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
26 Charge and rate of corporation tax for financial year 1988.
Corporation tax shall be charged for the financial year 1988 at the rate of 35 per cent.
27 Corporation tax: small companies.
1
For the financial year 1988 the small companies rate shall be 25 per cent.
2
For the financial year 1988 the fraction mentioned in section 13(2) of the Taxes Act 1988, and in section 95(2) of the M1Finance Act 1972, (marginal relief for small companies) shall be one fortieth.
F128. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
29 Life assurance premium relief.
1
In sections 266(5)(a) and 274(3)(a) of the Taxes Act 1988, and in paragraph 3(3)(a) of Schedule 14 to that Act, (rate of relief on premiums on life policies etc.) for the words “15 per cent.” wherever they occur there shall be substituted the words “
12.5 per cent.
”
.
2
This section shall have effect on and after 6th April 1989.
F230. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F8331 Non-residents’ personal reliefs.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Married couples
32 Abolition of aggregation of income.
Section 279 of the Taxes Act 1988 (which treats the income of a woman living with her husband as his income for income tax purposes) shall not have effect for the year 1990-91 or any subsequent year of assessment.
F7633 Personal allowance and married couple’s allowance.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F5834 Jointly held property.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
35 Minor and consequential provisions.
Schedule 3 to this Act (which makes provision consequential on sections 32 and 33 above and other minor amendments relating to the treatment for income tax purposes of husbands, wives, widowers and widows) shall have effect.
Annual payments
36 Annual payments.
F651
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F592
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F59C13
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F594
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F595
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F595A
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F596
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F6037 Maintenance payments under existing obligations:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F6138 Maintenance payments under existing obligations:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F339. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F6240 Provisions supplementary to sections 37 to 39.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Relief for interest
41 Qualifying maximum for loans.
For the year 1988-89 the qualifying maximum defined in section 367(5) of the Taxes Act 1988 (limit on relief for interest on certain loans) shall be £30,000.
F442. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F543. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F644. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Benefits in kind
45 Car benefits.
1
In Schedule 6 to the Taxes Act 1988 (taxation of directors and others in respect of cars) for Part I (tables of flat rate cash equivalents) there shall be substituted—
Part I
Tables of Flat Rate Cash Equivalents
Table A Cars with an original market value up to £19,250 and having a cylinder capacity
Cylinder capacity of car in cubic centimetres
Age of car at end of relevant year of assessment
Under 4 years
4 years or more
1400 or less
£1,050
£700
More than 1400 but not more than 2000
£1,400
£940
More than 2000
£2,200
£1,450
Table B Cars with an original market value up to £19,250 and not having a cylinder capacity
Original market value of car
Age of car at end of relevant year of assessment
Under 4 years
4 years or more
Less than £6,000
£1,050
£700
£6,000 or more but less than £8,500
£1,400
£940
£8,500 or more but not more than £19,250
£2,200
£1,450
Table C Cars with an original market value of more than £19,250
Original market value of car
Age of car at end of relevant year of assessment
Under 4 years
4 years or more
More than £19,250 but not more than £29,000
£2,900
£1,940
More than £29,000
£4,600
£3,060
2
This section shall have effect for the year 1988-89 and subsequent years of assessment.
F4546 Car parking facilities.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
47 Entertainment: non-cash vouchers.
F461
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2
In subsection (1) of section 36 of the M2Finance (No. 2) Act 1975 (vouchers other than cash vouchers), for the words “Subject to subsection (2) below” there shall be substituted the words “
Subject to the provisions of this section
”
.
3
The provision set out in subsection (1) above shall be inserted after subsection (3A) of that section as subsection (3B) with the substitution—
a
for the reference to section 839 of the Taxes Act 1988 of a reference to section 533 of the Taxes Act 1970; and
b
for any reference to a non-cash voucher of a reference to a voucher.
4
The amendment made by subsection (1) above shall have effect for the year 1988-89 and subsequent years of assessment; and the amendments made by subsections (2) and (3) above shall have effect for the year 1987-88.
48 Entertainment: credit-tokens.
F471
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2
The provision set out in subsection (1) above shall be inserted after subsection (3) of section 36A of the M3Finance (No. 2) Act 1975 (credit-tokens) as subsection (3A) with the substitution for the reference to section 839 of the Taxes Act 1988 of a reference to section 533 of the Taxes Act 1970.
3
The amendment made by subsection (1) above shall have effect for the year 1988-89 and subsequent years of assessment; and the amendment made by subsection (2) above shall have effect for the year 1987-88.
49 Entertainment of directors and higher-paid employees.
F481
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2
The provision set out in subsection (1) above shall be added at the end of section 62 of the M4Finance Act 1976 as subsection (9) with the substitution—
a
for the reference to section 154 of the Taxes Act 1988 of a reference to section 61 of the 1976 Act; and
b
for the reference to section 839 of the Taxes Act 1988 of a reference to section 533 of the Taxes Act 1970.
3
The amendment made by subsection (1) above shall have effect for the year 1988-89 and subsequent years of assessment; and the amendment made by subsection (2) above shall have effect for the year 1987-88.
Business expansion scheme
F750. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
51 Restriction of relief.
1
The Taxes Act 1988 shall have effect, and be deemed always to have had effect, with the following amendments, namely—
a
in section 289(12)(b), the substitution of the words “sections 290A, 293” for the words “
sections 293
”
; and
b
the insertion after section 290 of the following section—
290A Restriction of relief where amounts raised exceed permitted maximum.
1
Where—
a
a company raises any amount through the issue of eligible shares after 15th March 1988; and
b
the aggregate of that amount and of all other amounts (if any) so raised within the period mentioned in subsection (2) below exceeds £500,000,
the relief shall not be given in respect of the excess.
2
The period referred to in subsection (1) above is—
a
the period of 6 months ending with the date of the issue of the shares; or
b
the period beginning with the preceding 6th April and ending with the date of that issue,
whichever is the longer.
3
In determining the aggregate mentioned in subsection (1) above, no account shall be taken of any amount—
a
which is subscribed by a person other than an individual who qualifies for relief; or
b
as respects which relief is precluded by section 290 or this section.
4
Where—
a
at any time within the relevant period, the company in question or any of its subsidiaries carries on any trade or part of a trade in partnership, or as a party to a joint venture, with one or more other persons; and
b
that other person, or at least one of those other persons, is a company,
the reference to £500,000 in subsection (1) above shall have effect as if it were a reference to—
where A is the total number of companies (apart from the company in question or any of its subsidiaries) which, during the relevant period, are members of any such partnership or parties to any such joint venture.
5
Where this section precludes the giving of relief on claims in respect of shares issued to two or more individuals, the available relief shall be divided between them in proportion to the amounts which have been respectively subscribed by them for the shares to which their claims relate and which would, apart from this section, be eligible for relief.
6
Where—
a
in the case of a company falling within subsection (2)(a) of section 293, the qualifying trade or each of the qualifying trades is a trade to which subsection (7) below applies;
b
in the case of a company falling within subsection (2)(b)(i) of that section, the subsidiary or each of the subsidiaries is a dormant subsidiary or exists wholly, or substantially wholly, for the purpose of carrying on one or more qualifying trades which or each of which is a trade to which subsection (7) below applies; or
c
in the case of a company falling within subsection (2)(b)(ii) of that section, the requirements mentioned in each of paragraphs (a) and (b) above are satisfied,
subsections (1) and (4) above shall have effect as if for the amount there specified there were substituted £5 million.
7
This subsection applies to a trade if it consists, wholly or substantially wholly, of operating or letting ships, other than oil rigs or pleasure craft, and—
a
every ship operated or let by the company carrying on the trade is beneficially owned by the company;
b
every ship beneficially owned by the company is registered in the United Kingdom;
c
throughout the relevant period the company is solely responsible for arranging the marketing of the services of its ships; and
d
the conditions mentioned in section 297(7) are satisfied in relation to every letting by the company.
8
Where—
a
any of the requirements mentioned in paragraphs (a) to (c) of subsection (7) above are not satisfied in relation to any ships; or
b
any of the conditions referred to in paragraph (d) of that subsection are not satisfied in relation to any lettings,
the trade shall not thereby be precluded from being a trade to which that subsection applies if the operation or letting of those ships, or, as the case may be, those lettings do not amount to a substantial part of the trade.
9
The Treasury may by order amend any of the foregoing provisions of this section by substituting a different amount for the amount for the time being specified there.
10
Where—
a
the issue of the eligible shares is made in pursuance of a prospectus published, or an offer in writing made, before 15th March 1988;
b
the shares are issued after that date and before 6th April 1988; and
c
subsection (6) above does not apply,
subsections (1) and (4) above shall have effect as if for the amount there specified there were substituted £1 million.
11
In this section—
“let” means let on charter and “letting” shall be construed accordingly;
“oil rig” and “pleasure craft” have the same meanings as in section 297;
“prospectus” has the meaning given by section 744 of the Companies Act 1985 or Article 2(3) of the Companies (Northern Ireland) Order 1986.
2
Schedule 5 to the M5Finance Act 1983 shall be deemed always to have had effect as if—
a
in paragraph 2(7), for the words “paragraphs 5” there had been substituted the words “
paragraphs 3A, 5
”
; and
b
the provisions set out in subsection (1)(b) above had been inserted, with any necessary modifications, after paragraph 3 as paragraph 3A.
52 Valuation of interests in land.
1
In section 294 of the Taxes Act 1988 (companies with interests in land), after subsection (5) there shall be inserted—
5A
For the purposes of this section, the value of an interest in any building or other land shall be adjusted by deducting the market value of any machinery or plant which is so installed or otherwise fixed in or to the building or other land as to become, in law, part of it.
2
This section shall have effect in relation to valuations which fall to be made after the passing of this Act.
F6353 Approved investment funds.
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Pensions etc.
F5654 Personal pension schemes: commencement.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F5655 Personal pension schemes: other amendments.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F5656 Occupational pension schemes.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F4957 Lump sum benefits paid otherwise than on retirement.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Underwriters
F8458 Assessment and collection.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
59 Reinsurance: general.
1
In subsection (4) of section 450 of the Taxes Act 1988 (underwriters), for paragraph (b) there shall be substituted—
b
any insurance money payable to him under that insurance in respect of a loss shall be taken into account as a trading receipt in computing those profits or gains for the year of assessment which corresponds to the underwriting year in which the loss arose;
2
The amendment set out in subsection (1) above shall also be made in paragraph 4 of Schedule 16 to the Finance Act 1973 (underwriters).
3
Subsection (1) above shall have effect for the year 1988-89 and subsequent years of assessment; and subsection (2) above shall have effect for the years 1985-86, 1986-87 and 1987-88.
60 Reinsurance to close.
1
For subsection (5) of section 450 of the Taxes Act 1988 (underwriters) there shall be substituted—
5
Subsection (5A) below applies where—
a
in accordance with the rules or practice of Lloyd’s and in consideration of the payment of a premium, one member agrees with another to meet liabilities arising from the latter’s business for an underwriting year so that the accounts of the business for that year may be closed; and
b
the member by whom the premium is payable is a continuing member, that is, a member not only of the syndicate as a member of which he is liable to pay the premium (“the reinsured syndicate”) but also of the syndicate as a member of which the other member is entitled to receive it (“the reinsurer syndicate”).
5A
In any case where this subsection applies—
a
in computing for the purposes of income tax the profits or gains of the continuing member’s business as a member of the reinsured syndicate, the amount of the premium shall be deductible as an expense of his only to the extent that it is shown not to exceed a fair and reasonable assessment of the value of the liabilities in respect of which it is payable; and
b
in computing for those purposes the profits or gains of his business as a member of the reinsurer syndicate, those profits or gains shall be reduced by an amount equal to any part of a premium which, by virtue of paragraph (a) above, is not deductible as an expense of his as a member of the reinsured syndicate;
and the assessment referred to above shall be taken to be fair and reasonable only if it is arrived at with a view to producing the result that a profit does not accrue to the member to whom the premium is payable but that he does not suffer a loss.
2
The provisions set out in subsection (1) above, but renumbered as subsections (1) and (2) and with the substitution, in the provision renumbered as subsection (1), of the words “subsection (2)” for the words “subsection (5A)”, shall also be substituted for subsections (1) to (4) of section 70 of the M6Finance (No. 2) Act 1987 (underwriters); and in subsection (5) of that section, for the word “underwriter” there shall be substituted the word “
member
”
.
3
In this section—
a
subsection (1) shall have effect in relation to premiums payable in connection with the closing of accounts of a member’s business for an underwriting year ending in the year 1988-89 or any subsequent year of assessment; and
b
subsection (2) shall have effect in relation to premiums payable in connection with the closing of accounts of a member’s business for an underwriting year ending in the year 1985-86, 1986-87 or 1987-88.
61 Minor and consequential amendments.
F851
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2
In Schedule 10 to the Taxes Act 1970, in paragraph 7(3), for the words “Case I of Schedule D” there shall be substituted the words “
in accordance with Schedule 16 to M7Finance Act 1973
”
and the words “the investments forming part of the premiums trust fund of the underwriter” shall cease to have effect.
3
In section 87 of the M8Finance Act 1972, at the beginning of subsection (3) there shall be inserted the words “
Except as provided by Schedule 16 to Finance Act 1973 (underwriters)
”
.
4
In Schedule 16 to the M9Finance Act 1973—
a
in sub-paragraph (1) of paragraph 17, for paragraph (a) there shall be substituted—
a
for the assessment and collection of tax charged in accordance with the preceding provisions of this Schedule (so far as not provided for by Schedule 16A to this Act);
aa
for making, in the event of any changes in the rules or practice of Lloyd’s, such amendments of that Schedule as appear to the Board to be expedient having regard to those changes;
b
after that sub-paragraph, there shall be inserted—
1A
Regulations under this paragraph may make provision with respect to the year of assessment next but one preceding the year of assessment in which they are made.
5
F86... subsections (2) to (4) above shall have effect for the years 1986-87 and 1987-88.
Oil licences
F862. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F963. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F1064. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Miscellaneous
F6965 Commercial woodlands.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F7066 Company residence.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F7166AF55Residence of SE or SCE
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F1167. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F5068 Priority share allocations for employees etc.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F5169 Share options: loans.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
70 Charities: payroll deduction scheme.
1
In section 202(7) of the Taxes Act 1988 (which limits to £120 the deductions attracting relief) for “ £120” there shall be substituted “
£240
”
.
2
This section shall have effect for the year 1988-89 and subsequent years of assessment.
F6471 Unit trusts: relief on certain payments.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F7272 Entertainment of overseas customers.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
73 Consideration for certain restrictive undertakings.
F521
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F732
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F733
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F734
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F1274. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F8775 Premiums for leases etc.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F1376
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
C2 chapter II Unapproved Employee Share Schemes
Preliminary
F4377 Scope of Chapter.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Charges to tax
F4378 Charge where restrictions removed etc.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F4379 Charge for shares in dependent subsidiaries.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F4380 Charge on special benefits.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Miscellaneous
F4381 Changes in interest.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F4382 Company reorganisations etc.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F4383 Connected persons etc.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F4384 Capital gains tax.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F4385 Information.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Supplementary
F4386 Meaning of “dependent subsidiary”.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F4387 Other interpretation provisions.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F4388 Transitional provisions.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
89 Consequential amendments.
In relation to acquisitions of shares or interests in shares on or after 26th October 1987—
a
for the words from “section 138(1)(a)” to “value of the shares” in F53... section 186(2)(b) (approved profit sharing schemes) of the Taxes Act 1988, and
F54b
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
there shall be substituted the words “
section 78 or 79 of the Finance Act 1988 in respect of the shares
”
.
chapter III Capital Allowances
F1490. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F1591. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F1692. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F1793. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F1894. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F1995. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
chapter IV Capital Gains
Re-basing to 1982
F2096. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F2197. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Unification of rates of tax on income and capital gains
F2298. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F2399. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F24100. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F25101. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F26102. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F27103. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Married couples
F28104. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Company migration
105 Deemed disposal of assets on company ceasing to be resident in U.K.
F291
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F292
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F293
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F294
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F295
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F756
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7
This section and sections 106 and 107 below shall be deemed to have come into force on 15th March 1988.
F30106. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F31107. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Miscellaneous
F32108. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F33109. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F34110. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F35111. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F36112. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F37113. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F38114. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F39115. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F40116. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
117 Definition of “investment trust”.
F781
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2
3
F88For section 266(4) of the M3Companies Act 1985 there shall be substituted—
a
Subsections (1A) to (3) of section 842 of the Income and Corporation Taxes Act 1988 apply for the purposes of subsection (2)(b) above as for those of subsection (1)(b) of that section.”;and for Article 274(4) of the M4Companies (Northern Ireland) Order 1986 there shall be substituted—
b
Subsections (1A) to (3) of section 842 of the Income and Corporation Taxes Act 1988 apply for the purposes of paragraph (2)(b) as for those of subsection (1)(b) of that section.
4
F79... subsection (2) above shall have effect for companies’ accounting periods ending on or before that date.
F41118. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
chapter V Management
Assessment
F80119 Current year assessments.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Returns of income and gains
F81120 Notice of liability to income tax.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F42121. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F82122 Notice of liability to capital gains tax.
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Other returns and information
123 Three year time limit.
1
At the end of section 13 of the M12Taxes Management Act 1970 (returns by persons in receipt of taxable income belonging to others) there shall be added—
3
A notice under this section shall not require information as to any money, value, profits or gains received in a year of assessment ending more than three years before the date of the giving of the notice.
2
In section 17(1) of that Act (interest paid or credited by banks etc. without deduction of income tax) after the words “during a year” there shall be inserted the words “
of assessment
”
.
3
In section 18 of that Act (particulars of interest paid without deduction of income tax) after subsection (3) there shall be inserted—
3A
A notice under this section shall not require information with respect to interest paid in a year of assessment ending more than three years before the date of the giving of the notice.
4
At the end of section 19 of that Act (information for the purposes of Schedule A etc.) there shall be added—
4
A notice under this section shall not require information with respect to—
a
the terms applying to the lease, occupation or use of the land, or
b
consideration given, or
c
payments arising,
in a year of assessment ending more than three years before the date of the giving of the notice.
5
This section has effect with respect to notices given after the passing of this Act.
124 Returns of fees, commissions etc.
1
At the end of section 16 of the Taxes Management Act 1970 (fees, commissions etc.) there shall be added—
8
In subsection (2) above references to a body of persons include references to any department of the Crown, any public or local authority and any other public body.
2
This section has effect with respect to payments made in the year 1988-89 or any subsequent year of assessment.
125 Other payments and licences etc.
After section 18 of the Taxes Management Act 1970 there shall be inserted—
18A Other payments and licences etc.
1
Any person by whom any payment out of public funds is made by way of grant or subsidy shall, on being so required by a notice given to him by an inspector, furnish to the inspector, within the time limited by the notice—
a
the name and address of the person to whom the payment has been made or on whose behalf the payment has been received, and
b
the amount of the payment so made or received,
and any person who receives any such payment on behalf of another person shall on being so required furnish to the inspector the name and address of the person on whose behalf the payment has been received, and its amount.
2
Any person by whom licences or approvals are issued or a register is maintained shall, on being so required by a notice given to him by an inspector, furnish to the inspector, within the time limited by the notice—
a
the name and address of any person who is or has been the holder of a licence or approval issued by the first-mentioned person, or to whom an entry in that register relates or related; and
b
particulars of the licence or entry.
3
The persons to whom this section applies include any department of the Crown, any public or local authority and any other public body.
4
A notice is not to be given under this section unless (in the inspector’s reasonable opinion) the information required is or may be relevant to any tax liability to which a person is or may be subject, or the amount of any such liability.
5
A notice under this section shall not require information with respect to a payment which was made, or to a licence, approval or entry which ceased to subsist—
a
before 6th April 1988; or
b
in a year of assessment ending more than three years before the date of the giving of the notice.
6
For the purposes of this section a payment is a payment out of public funds if it is provided directly or indirectly by the Crown, by any Government, public or local authority whether in the United Kingdom or elsewhere or by any Community institution.
Production of accounts, books etc.
F68126 Production of documents relating to a person’s tax liability.
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F66127 Production of computer records etc.
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Interest and penalties
F44128 Interest on overdue or overpaid PAYE.
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129 Two or more tax-geared penalties in respect of same tax.
1
After section 97 of the Taxes Management Act 1970 there shall be inserted—
97A Two or more tax-geared penalties in respect of same tax.
Where two or more penalties—
a
are incurred by any person and fall to be determined by reference to any income tax or capital gains tax with which he is chargeable for a year of assessment; or
b
are incurred by any company and fall to be determined by reference to any corporation tax with which it is chargeable for an accounting period,
each penalty after the first shall be so reduced that the aggregate amount of the penalties, so far as determined by reference to any particular part of the tax, does not exceed whichever is or, but for this section, would be the greater or greatest of them, so far as so determined.
2
Section 97A(a) of that Act has effect with respect to the year1988-89 or any subsequent year of assessment; and section 97A(b) has effect with respect to accounting periods ending after 31st March 1989.
Company migration
F77130 Provisions for securing payment by company of outstanding tax.
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F77131 Penalties for failure to comply with section 130.
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F77132 Liability of other persons for unpaid tax.
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Appeals etc.
F67133 Jurisdiction of General Commissioners.
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F67F74134 General Commissioners for Northern Ireland.
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F67135 Cases stated in Northern Ireland.
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Pt. III Ch. II (ss. 77-89) applied (6.3.1992 with effect as mentioned in s. 289 of the applying Act) by Taxation of Chargeable Gains Act 1992 (c. 12), ss. 120(1), 289, (with ss. 60, 101(1), 171, 201(3))