Finance Act 1996
Part I Excise Duties
Alcoholic liquor duties
1 Spirits: rate of duty.
2 Wine and made-wine: rates.
3 Cider: rate of duty.
Hydrocarbon oil duties
4 Rates of duty and rebate.
5 Misuse of rebated kerosene.
6 Mixing of rebated oil.
7 Marked oil used as fuel for road vehicles.
8 Relief for marine voyages.
Tobacco products duty
9 Rates of duty.
Betting duties: rates
10 General betting duty.
11 Pool betting duty.
Amusement machine licence duty
12 Licences for machines as well as premises.
Air passenger duty
13 Pleasure flights.
Vehicle excise duty
14 Increase in general rate.
15 Electrically propelled vehicles.
16 Steam powered vehicles etc.
17 Vehicles capable of conveying loads.
18 Old vehicles.
19 Old vehicles: further provisions.
20 Exemptions for vehicle testing: general.
21 Exemptions for vehicle testing in Northern Ireland.
22 Other provisions relating to Northern Ireland.
23 Licensing and registration.
Repeal of certain drawbacks and allowances
24 Repeal of certain drawbacks and allowances.
Part II Value Added Tax
EC Second VAT Simplification Directive
25 EC Second VAT Simplification Directive.
26 Fiscal and other warehousing.
27 Value of imported goods.
28 Adaptation of aircraft and hovercraft.
29 Work on materials.
Other provisions relating to charges to VAT
30 Refunds in connection with construction and conversion.
31 Groups: anti-avoidance.
32 Supplies of gold etc.
33 Small gifts.
Payment and enforcement
34 Method of making payments on account.
35 Default surcharges.
36 Repeated misdeclaration penalty.
37 Penalties for failure to notify.
38 VAT invoices and accounting.
Part III Landfill Tax
The basic provisions
39 Landfill tax.
40 Charge to tax.
40ADisposals of material
41 Liability to pay tax.
42Amount of tax.
Exemptions
43 Material removed from water.
43A Contaminated land.
43B Contaminated land: certificates.
43C Site restoration.
44 Mining and quarrying.
44A Quarries.
45 Pet cemeteries.
46 Power to vary.
Administration
47 Registration.
48 Information required to keep register up to date.
49 Accounting for tax and time for payment.
50 Power to assess: registered persons.
50APower to assess: unregistered persons
Credit
51 Credit: general.
52 Bad debts.
53 Bodies concerned with the environment.
Review and appeal
54Appeals
54AOffer of review
54BRight to require review
54CReview by HMRC
54DExtensions of time
54EReview out of time
54FNature of review etc
54GBringing of appeals
55 Appeals: further provisions
56 Appeals: other provisions.
57 Review and appeal: commencement.
Miscellaneous
58 Partnership, bankruptcy, transfer of business, etc.
59 Groups of companies.
60Information, powers, penalties, secondary liability, etc.
61 Taxable disposals: special provisions.
62 Taxable disposals: regulations.
63 Qualifying material: special provisions.
63AQualifying fines: special provisions
Interpretation
64 Disposal of material as waste.
65 Disposal by way of landfill.
65APrescribed landfill site activities to be treated as disposals
66 Landfill sites.
67 Operators of landfill sites.
68 Weight of material disposed of.
69 Taxable activities.
70 Interpretation: other provisions.
Supplementary
71 Orders and regulations.
Part IV Income Tax, Corporation Tax and Capital Gains Tax
Chapter I Principal provisions
Income tax charge, rates and reliefs
72 Charge and rates of income tax for 1996-97.
73 Application of lower rate to income from savings.
74 Personal allowances for 1996-97.
75 Blind person’s allowance.
76 Limit on relief for interest.
Corporation tax charge and rate
77 Charge and rate of corporation tax for 1996.
78 Small companies.
Abolition of Schedule C charge etc.
79 Abolition of Schedule C charge etc.
Chapter II Loan relationships
Introductory provisions
80 Taxation of loan relationships.
81 Meaning of “loan relationship” etc.
Taxation of profits and gains and relief for deficits
82 Method of bringing amounts into account.
83 Non-trading deficit on loan relationships.
Computational provisions etc.
84 Debits and credits brought into account.
84A Exchange gains and losses from loan relationships
85AComputation in accordance with generally accepted accounting practice
85BAmounts recognised in determining company’s profit or loss
85CAmounts not fully recognised for accounting purposes
87 Accounting method where parties have a connection.
87A Meaning of “control” in section 87
88 Exemption from section 87 in certain cases.
88A Accounting method where rate of interest is reset
89 Inconsistent application of accounting methods.
90 Changes of accounting method.
90AChange of accounting basis applicable to assets or liabilities
91 Payments subject to deduction of tax.
Shares treated as loan relationships
91AShares subject to outstanding third party obligations
91BNon-qualifying shares
91CCondition 1 for section 91B(6)(b)
91DCondition 2 for section 91B(6)(b)
91ECondition 3 for section 91B(6)(b)
91FPower to add, vary or remove Conditions for section 91B(6)(b)
91GShares beginning or ceasing to be subject to section 91A or 91B
Partnerships
91HPayments in return for capital contribution
91IChange of partnership shares
Special cases
92Convertible securities etc: creditor relationships
92A Convertible securities etc: debtor relationships
93 Relationships linked to the value of chargeable assets.
93A Relationships linked to the value of chargeable assets: guaranteed returns
93B Loan relationships ceasing to be within section 93
93CCreditor relationships and benefit derived by connected persons
94 Indexed gilt-edged securities.
94ALoan relationships with embedded derivatives
94BLoan relationships treated differently by connected debtor and creditor
95 Gilt strips.
96 Special rules for certain other gilts.
97 Manufactured interest.
98 Collective investment schemes.
99 Insurance companies.
Miscellaneous other provisions
100Money debts etc not arising from the lending of money
101 Financial instruments.
102 Discounted securities: income tax provisions.
Supplemental
103 Interpretation of Chapter.
104 Minor and consequential amendments.
105 Commencement and transitional provisions.
Chapter III Provisions relating to the Schedule E charge
106 Living accommodation provided for employees.
107 Beneficial loans.
108 Incidental benefits for holders of certain offices etc.
109 Charitable donations: payroll deduction schemes.
110PAYE settlement agreements.
Chapter IV Share Options, Profit Sharing and Employee Share Ownership
Share options
111 Amount or value of consideration for option.
112 Release and replacement.
Savings-related share option schemes
113 Exercise of rights by employees of non-participating companies.
Other share option schemes
114 Requirements to be satisfied by approved schemes.
115 Transitional provisions.
Profit sharing schemes
116 The release date.
117 The appropriate percentage.
118 The appropriate allowance.
Employee share ownership trusts
119 Removal of requirement for at least one year’s service.
120 Grant and exercise of share options.
Chapter V Self Assessment, General Management etc.
General
121 Returns and self assessment.
122 Notional tax deductions and payments.
123 Liability of partners.
124 Retention of original records.
125 Determination of tax where no return delivered.
126 PAYE regulations.
127 Repayment postponed pending completion of enquiries.
128 Claims for reliefs involving two or more years.
129 Claims for medical insurance and vocational training relief.
130 Procedure for giving notices.
131 Interest on overdue tax.
132 Overdue tax and excessive payments by the Board.
133 Claims and enquiries.
134 Discretions exercisable by the Board etc.
135 Time limits for claims etc.
136 Appeals.
Companies
137 Schedules 13 and 16 to the Taxes Act 1988.
138 Accounting periods.
139 Surrenders of advance corporation tax.
Chargeable gains
140 Transfer of company’s assets to investment trust.
141 Roll-over relief.
142 Premiums for leases.
Chapter VI Miscellaneous provisions
Reliefs
143 Annual payments under certain insurance policies.
144 Vocational training.
145 Personal reliefs for non-resident EEA nationals.
146 Exemptions for charities.
147 Withdrawal of relief for Class 4 contributions.
148 Mis-sold personal pensions etc.
149 Annual payments in residuary cases.
150 Income tax exemption for periodical payments of damages and compensation for personal injury.
Taxation of benefits
151 Benefits under pilot schemes.
152 Jobfinder’s grant.
Investments
153 Foreign income dividends.
154 FOTRA securities.
155 Directions for payment without deduction of tax.
156 Paying and collecting agents etc.
157 Stock lending fees.
158 Transfers on death under the accrued income scheme.
159 Manufactured payments, repos, etc.
160 Investments in housing.
161 Venture capital trusts: control of companies etc.
Insurance policies
162 Qualifying life insurance policies: certification.
Insurance companies
163 Life assurance business losses.
164 Limits on relief for expenses.
165 Annual payments under insurance policies: deductions.
166 Equalisation reserves.
167 Industrial assurance business.
168 Capital redemption business.
169 Provisional repayments in connection with pension business.
170 Time for amending and enquiring into returns.
Friendly societies
171 Life or endowment business.
Personal pension schemes
172 Return of contributions on or after death of member.
Participators in close companies
173 Loans to participators etc.
174 Attribution of gains to participators in non-resident companies.
Cancellation of tax advantages
175 Transactions in certain securities.
Chargeable gains: reliefs
176 Retirement relief: age limits.
177 Reinvestment relief on disposal of qualifying corporate bond.
Special cases
178 Sub-contractors in the construction industry.
179 Roll-over relief in respect of ships.
180 Scientific research expenditure: oil licences.
181 Overseas petroleum.
182 Controlled foreign companies.
Part V Inheritance tax
183 Rate bands.
184 Business property relief.
185 Agricultural property relief.
Part VI Stamp Duty and Stamp Duty Reserve Tax
Stamp duty
186Transfers of securities to members of electronic transfer systems etc.
Stamp duty reserve tax
187 Territorial scope of the tax.
188Removal of the two month period.
189Transfers to members of electronic transfer systems etc.
190Transfers between associated bodies.
191 Stock lending and collateral security arrangements.
192Repayment or cancellation of tax.
193Depositary receipts.
194Rates of charge expressed as percentages.
195Regulations concerning administration: sub-delegation to the Board.
Clearance services
196Election by operator for alternative system of charge.
Part VII Miscellaneous and supplemental
Miscellaneous: indirect taxation
197 Setting of rates of interest.
Miscellaneous: direct taxation
198 Banks.
199 Quotation or listing of securities.
200Domicile for tax purposes of overseas electors.
201 Enactment of Inland Revenue concessions.
Miscellaneous: other matters
202 Gilt stripping.
203 Modification of the Agriculture Act 1993.
Supplemental
204 Interpretation.
205 Repeals.
206 Short title.
SCHEDULES
SCHEDULE 1 Mixing of rebated oil
SCHEDULE 2 Vehicle licensing and registration
1In this Schedule “the 1994 Act” means the Vehicle Excise...
Vehicle licences
2(1) Section 7 of the 1994 Act (issue of vehicle...
Trade licences
3In section 11 of the 1994 Act (trade licences), after...
Registration regulations
4(1) Subsection (1) of section 22 of the 1994 Act...
5In subsection (1B)(a) of section 22 of the 1994 Act,...
6After subsection (1B) of section 22 of the 1994 Act...
7After subsection (1C) of section 22 of the 1994 Act...
Surrender of licences: repayments
8. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Offences
9(1) In section 29 of the 1994 Act (penalty for...
10In section 33 of the 1994 Act (not exhibiting licence),...
11(1) Section 45 of the 1994 Act (false or misleading...
Offences: information and admissions
12After section 46 of the 1994 Act there shall be...
13After section 51 of the 1994 Act there shall be...
Proceedings in respect of offences
14(1) In— (a) section 47(1) and (2) of the 1994...
Compounding of offences
15In section 59 of the 1994 Act (regulations: offences), after...
Regulations
16In section 57(1) of the 1994 Act (regulations generally), the...
SCHEDULE 3 Value added tax: Fiscal and other warehousing
1In subsection (1) of section 6 of the Value Added...
2In subsection (1) of section 7 of the Value Added...
3In subsection (1) of section 12 of the Value Added...
4In subsection (1) of section 13 of the Value Added...
5The following sections shall be inserted in the Value Added...
6In subsection (1) of section 20 of the Value Added...
7In section 30 of the Value Added Tax Act 1994...
8(1) Section 62 of the Value Added Tax Act 1994...
9In subsection (1) of section 69 of the Value Added...
10In section 73 of the Value Added Tax Act 1994...
11In sections 73(9) and 76(5) of the Value Added Tax...
12In section 83 of the Value Added Tax Act 1994...
13In paragraph 1 of Schedule 1 to the Value Added...
14In paragraph 1 of Schedule 2 to the Value Added...
15In paragraph 1 of Schedule 3 to the Value Added...
16In paragraph 8(1) of Schedule 11 to the Value Added...
17. . . . . . . . . ....
18The following Schedule shall be added to the Value Added...
SCHEDULE 4 Value added tax: anti-avoidance provisions
SCHEDULE 5 Landfill Tax
Part I Information and samples
Information: general
1(1) Every person who is concerned (in whatever capacity) with...
Information: material at landfill sites
1A(1) Regulations may make provision about giving the Commissioners information...
Information: site restoration
1B(1) Before commencing restoration of all or part of a...
Site information
1C(1) Regulations may require the operator of a landfill site—...
Records: taxable persons
2(1) Regulations may require taxable persons to make records.
Records: material at landfill sites and other
2A(1) Regulations may require a person to make records relating...
Information: qualifying fines
2B(1) Regulations may make provision about giving the Commissioners information...
Samples: qualifying fines
2C(1) Regulations may require persons— (a) where a sample is...
Documents
3(1) Every person who is concerned (in whatever capacity) with...
Part II Powers
Entry and inspection
4For the purpose of exercising any powers under this Part...
Entry and search
5(1) Where— (a) a justice of the peace is satisfied...
Arrest
6(1) Where an authorised person has reasonable grounds for suspecting...
Order for access to recorded information etc.
7(1) Where, on an application by an authorised person, a...
Removal of documents etc.
8(1) An authorised person who removes anything in the exercise...
9(1) Where, on an application made as mentioned in sub-paragraph...
Power to take samples
10(1) An authorised person, if it appears to him necessary...
Part III Recovery
General
11Tax due from any person shall be recoverable as a...
Preferential and preferred debts
12(1) . . . . . . . . ....
Distress and diligence
13. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Recovery of overpaid tax
14(1) Where a person has paid an amount to the...
Part IV Criminal Penalties
Criminal offences
15(1) A person is guilty of an offence if—
Criminal penalties
16(1) A person guilty of an offence under paragraph 15(1)...
Criminal proceedings etc.
17Sections 145 to 155 of the Customs and Excise Management...
Part V Civil Penalties
Evasion
18(1) Where— (a) for the purpose of evading tax, a...
19(1) Where it appears to the Commissioners—
Misdeclaration or neglect
20(1) Where, for an accounting period— (a) a return is...
Registration
21(1) A person who fails to comply with section 47(3)...
Information
22(1) If a person— (a) . . . . ....
Breach of regulations
23(1) Where regulations made under this Part of this Act...
Controlled Goods Agreements
23A(1) This paragraph applies where an enforcement agent acting under...
Walking possession agreements
24(1) This paragraph applies where— (a) in accordance with regulations...
Mitigation of penalties
25(1) Where a person is liable to a penalty under...
Part VI Interest
Interest on under-declared tax
26(1) Sub-paragraph (2) below applies where— (a) under section 50(1)...
Interest on unpaid tax etc.
27(1) Sub-paragraph (2) below applies where— (a) a registered person...
28(1) Where a person is liable to pay interest under...
Interest payable by Commissioners
29(1) Where, due to an error on the part of...
30(1) Where— (a) any interest is payable by the Commissioners...
Part VII Miscellaneous
Security for tax
31Where it appears to the Commissioners requisite to do so...
Assessments to penalties etc.
32(1) Where a person is liable— (a) to a penalty...
Assessments: time limits
33(1) Subject to the following provisions of this paragraph, an...
Supplementary assessments
34If, otherwise than in circumstances falling within subsection (5)(b) of...
Disclosure of information
35(1) Notwithstanding any obligation not to disclose information that would...
Publication of information by Commissioners
36(1) The Commissioners may publish, by such means as they...
Evidence by certificate etc.
37(1) A certificate of the Commissioners— (a) that a person...
Service of notices etc.
38Any notice, notification or requirement to be served on, given...
39(1) This paragraph applies to directions, specifications and conditions which...
No deduction of penalties or interest
40In section 827 of the Taxes Act 1988 (no deduction...
Destination of receipts
41All money and securities for money collected or received for...
Set-off of amounts
42(1) Regulations may make provision in relation to any case...
43(1) Regulations may make provision in relation to any case...
Amounts shown as tax on invoices
44(1) Where— (a) a registrable person issues an invoice showing...
Adjustment of contracts
45(1) This paragraph applies where— (a) material undergoes a landfill...
46(1) This paragraph applies where— (a) work is carried out...
Adjustment of rent etc.
47(1) This paragraph applies where— (a) an agreement with regard...
Part VIII Secondary liability: controllers of landfill sites
Meaning of controller
48(1) For the purposes of this Part of this Schedule...
Secondary liability
49(1) Where— (a) a taxable disposal is made at a...
Operator entitled to credit
50(1) This paragraph applies where— (a) the operator of a...
Payment of secondary liability
51(1) This paragraph applies where a controller is liable under...
Assessments
52(1) Where an amount of landfill tax is—
Assessment withdrawn or reduced
53(1) Where— (a) a controller is liable to pay an...
Adjustments
54(1) This paragraph applies in any case where the liability...
Amounts payable to be treated as tax
55An amount which a controller is required to pay under...
Controller not carrying out taxable activity
56A controller is not to be treated for the purposes...
Joint and several liability
57(1) In any case where the condition in sub-paragraph (4),...
Interest payable by a controller
58(1) This paragraph applies where— (a) the operator of a...
Reviews and Appeals
59Sections 54 to 56 of this Act shall apply to...
Notice that person is, or is no longer, a controller
60(1) This paragraph applies where— (a) on the date when...
Extension of time limits where notice not served
61(1) This paragraph applies where— (a) a person is liable...
SCHEDULE 6 Taxation of savings at the lower rate
The Taxes Management Act 1970 (c. 9)
1In section 86 of the Taxes Management Act 1970 (interest...
The Taxes Act 1988
2In section 4(2) of the Taxes Act 1988 (meaning of...
3In section 5(4) of that Act (time when tax in...
4(1) Subject to sub-paragraph (2) below, in subsection (1)(b) of...
5In paragraph (c) of section 246D(2) of that Act (application...
6In section 249(4)(c) of that Act (application of section 207A),...
7(1) In subsection (2)(b)(ii) of section 326B of that Act...
8In section 350 of that Act (charge to tax where...
9In section 421(1)(c) of that Act (application of section 207A),...
10(1) In section 468 of that Act (authorised unit trusts...
11(1) In section 468L of that Act (interest distributions), after...
12In section 469(2) of that Act (taxation of income of...
13In sections 549(2), 686(1), 699(2) and 819(2) of that Act...
14(1) In paragraph (a)(i) of subsection (2) of section 582...
15In section 686 of that Act (liability to additional rate...
16In Part XV of that Act (settlements), at the end...
17In section 698A of that Act (taxation at the lower...
18(1) In subsection (1) of section 737 of that Act...
19In section 737C(6) of that Act (computation of amount of...
20In section 743(1) of that Act (supplemental provisions relating to...
21In section 789(2) of that Act (old double taxation relief...
22In paragraph (a) of section 821(1) of that Act (under-deductions...
23In section 822(1) of that Act (over-deductions from interest on...
24. . . . . . . . . ....
25(1) In Schedule 3 to that Act (public revenue dividends...
The Finance Act 1989 (c. 26)
26(1) In section 88(1) of the Finance Act 1989 (rate...
The Taxation of Chargeable Gains Act 1992 (c. 12)
27In section 4(3A) of the Taxation of Chargeable Gains Act...
Commencement of Schedule
28Subject to any express provisions as to commencement that are...
SCHEDULE 7 Transfer of charge under Schedule C to Schedule D
Amendments of the Taxes Act 1988
1The Taxes Act 1988 shall be amended in accordance with...
2In section 1(1) (the charge to income tax), for “Schedules...
3Section 17 (Schedule C) shall be omitted.
4(1) In section 18 (Schedule D), in subsection (1), in...
5In section 19(1), in paragraph 2 of Schedule E, for...
6For the heading to Part III there shall be substituted...
7Section 44 (mode of charge of tax under Schedule C)...
8Section 45 (interpretation of Part III) shall be omitted.
9Section 48 (securities of foreign states) shall be omitted.
10In section 49 (stock and dividends in name of Treasury...
11In sections 50(1) and 51A(1) (which provide for interest on...
12Section 52 (taxation of interest on converted securities and interest...
13Section 123 (foreign dividends) shall be omitted.
14In section 124— (a) in subsection (6) (definitions in connection...
15In section 322(1) (consular officers and employees), the words “and...
16In section 398 (transactions in deposits with and without certificates...
17In section 468M(4) (meaning of “eligible income” in connection with...
18In section 474 (treatment of tax-free income), subsections (1) and...
19(1) In section 505 (exemptions for charities), in subsection (1),...
20(1) In section 512 (exemption from income tax for Atomic...
21(1) In section 516 (government securities held by non-resident central...
22In section 582A (designated international organisations), subsection (3) shall be...
23In section 730 (transfers of income arising from securities)—
24In section 828(2) (orders and regulations not required to be...
25In section 832(1) (interpretation of the Tax Acts), the definition...
26After section 841 there shall be inserted the following section—...
27Schedule 3 (machinery for payment of income tax under Schedule...
28. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other amendments
29In the Table in section 98 of the Taxes Management...
30In section 178(2)(m) of the Finance Act 1989 (provisions to...
31In section 128 of the Finance Act 1995 (limit on...
Commencement, etc.
32Subject to paragraphs 33 and 34 below, this Schedule has...
Position of paying and collecting agents
33(1) Subject to the following provisions of this paragraph and...
Position of taxpayers
34(1) Transitional payments of tax made on a person’s behalf...
Times to which paragraphs 33 and 34 apply
35Paragraphs 33 and 34 above apply in relation to times...
SCHEDULE 8 Loan relationships: claims etc relating to deficits
Claim to set off deficit against other profits for the deficit period
1(1) This paragraph applies where a claim is made under...
Claim to treat deficit as eligible for group relief
2(1) This paragraph applies where the company makes a claim...
Claim to carry back deficit to previous accounting periods
3(1) This paragraph applies where a claim is made under...
Carry forward of deficit to succeeding accounting periods
4(1) This paragraph applies where, pursuant to section 83(3A) of...
Construction of Schedule
5In this Schedule “the deficit” and “the deficit period” shall...
SCHEDULE 9 Loan relationships: special computational provisions
Distributions
1(1) The credits and debits to be brought into account...
Insurance company liabilities
1A(1) The credits and debits to be brought into account...
Late interest
2(1) This paragraph applies for the purpose of bringing debits...
Options et ceteralaetc.
3(1) This paragraph applies for determining the credits and debits...
Foreign exchange gains and losses
4. . . . . . . . . ....
Deemed release of liability on impaired debt becoming held by connected company
4A(1) This paragraph applies— (a) in the case specified in...
Release of liability under debtor relationship : cases in which credit need not be brought into account
5(1) . . . . . . . . ....
Release of liability under creditor relationship: application of provisions relating to impairment losses
5ZAThe provisions of— (a) paragraph 5A (impairment losses and consortium...
Impairment losses and consortium relief
5A(1) This paragraph applies where the conditions in sub-paragraphs (2)...
Impairment losses where parties have a connection
6(1) This paragraph applies where for any accounting period section...
Impairment losses : parties having connection and creditor in insolvent liquidation etc
6A(1) This paragraph applies in any case falling within paragraph...
Impairment losses: companies becoming connected
6B. . . . . . . . . ....
Impairment losses: cessation of connection
6C(1) Where, in the case of a creditor relationship of...
Restriction on bringing into account debits resulting from revaluation
6D(1) No debit shall be brought into account for the...
Writing-off of government investments
7(1) Where any government investment in a company is written...
Restriction on writing off overseas sovereign debt et ceteralaetc.
8. . . . . . . . . ....
Further restriction on bringing into account losses on overseas sovereign debt et ceteralaetc.
9. . . . . . . . . ....
Imported losses et ceteralaetc.
10(1) This paragraph applies in the case of a company...
Deemed assignment of assets and liabilities on company ceasing to be resident in UKetc
10A(1) This paragraph applies if at any time (“ the...
Transactions not at arm’s length
11(1) Where— (a) debits or credits in respect of a...
Exchange gains and losses where loan not on arm’s length terms
11A(1) Where a company has a debtor relationship in an...
Disposals for consideration not fully recognised by accounting practice
11B(1) This paragraph applies where in any accounting period (“...
Continuity of treatment: groups et ceteralaetc.
12(1) Subject to paragraph 15 below, this paragraph applies where,...
Transferee leaving group after replacing transferor as party to loan relationship
12A(1) This paragraph applies in any case where—
European cross-border merger
12B(1) This paragraph applies on a merger which satisfies the...
12C(1) This paragraph applies on a merger which satisfies the...
Cross-border transfer of business within European Community
12D(1) This paragraph applies where— (a) a company resident in...
12E(1) This paragraph applies to a transaction if—
12F(1) Paragraph 12D or 12E shall apply in relation to...
Exchanges, &c.: treatment of loan relationships
12G(1) This paragraph applies if— (a) sections 127 to 130...
Transparent entities
12H(1) This paragraph applies in relation to a transfer of...
12I(1) This paragraph applies in relation to a merger if—...
12J(1) In paragraphs 12B to 12I and this paragraph ,...
Loan relationships for unallowable purposes
13(1) Where in any accounting period a loan relationship of...
Debits and credits treated as relating to capital expenditure
14(1) This paragraph applies where any debit or credit ......
Debits and credits recognised in equity or shareholders' funds
14AWhere in accordance with generally accepted accounting practice a debit...
Repo and stock-lending transactions and other transactions where a company ceases to be party to a loan relationship
15(1) This paragraph applies if— (a) a company ceases to...
Amounts imputed under Schedule 28AA to the Taxes Act 1988
16(1) This paragraph applies where, in pursuance of Schedule 28AA...
Deeply discounted securities where companies have a connection
17(1) This paragraph applies as respects any accounting period (“the...
Deeply discounted securities of close companies
18. . . . . . . . . ....
Partnerships involving companies
19(1) This paragraph applies where— (a) a trade, profession or...
Adjustment on change of accounting policy
19A(1) This paragraph applies where— (a) there is a change...
Power to make further provision by regulations
19B(1) The Treasury may by regulations make provision for cases...
Interpretation of references to major interests
20(1) For the purposes of any provision which applies this...
SCHEDULE 10 Loan relationships: collective investment schemes
Investment trusts: capital profits, gains or losses
1. . . . . . . . . ....
1A. . . . . . . . . ....
Venture capital trusts: capital profits, gains or losses
1B. . . . . . . . . ....
Authorised unit trusts : capital profits, gains or losses
2. . . . . . . . . ....
2A. . . . . . . . . ....
Open-ended investment companies : capital profits, gains or losses
2B. . . . . . . . . ....
Distributing offshore funds
3. . . . . . . . . ....
Company holdings in unit trusts and offshore funds
4. . . . . . . . . ....
Holding becoming or ceasing to be paragraph 4 holding
5. . . . . . . . . ....
Opening valuation of paragraph 4 holding
6. . . . . . . . . ....
Meaning of offshore funds
7. . . . . . . . . ....
Non-qualifying investments test
8. . . . . . . . . ....
Powers to make orders
9. . . . . . . . . ....
SCHEDULE 11 Loan relationships: special provisions for insurers
Part I Insurance companies
I minus E basis
1(1) . . . . . . . . ....
Rules for different categories of business
2(1) Where an insurance company carries on basic life assurance...
Apportionments
3Where— (a) any creditor relationship of an insurance company is...
3A(1) This paragraph applies where— (a) any loan relationship of...
Treatment of deficit
4(1) Where, in the case of any insurance company, a...
Election for accruals basis for long term business assets
5. . . . . . . . . ....
Interpretation of Part I
6In this Part of this Schedule— “ basic life assurance...
Part II Corporate members of Lloyd’s
7(1) This Chapter does not apply as respects any loan...
SCHEDULE 12
SCHEDULE 13 Discounted securities: income tax provisions
Charge to tax on realised profit comprised in discount
1. . . . . . . . . ....
Realised losses on discounted securities
2. . . . . . . . . ....
Meaning of “relevant discounted security”
3. . . . . . . . . ....
Issue price etc of securities issued in accordance with qualifying earn-out right
3A. . . . . . . . . ....
Meaning of “transfer”
4. . . . . . . . . ....
Redemption to include conversion
5. . . . . . . . . ....
Trustees and personal representatives
6. . . . . . . . . ....
Treatment of losses where income exempt
7. . . . . . . . . ....
Transfers between connected persons
8. . . . . . . . . ....
Other transactions deemed to be at market value
9. . . . . . . . . ....
Securities issued to connected person etc at price in excess of market value: transfer to connected person
9A. . . . . . . . . ....
Issue of securities in separate tranches
10. . . . . . . . . ....
Accrued income scheme
11. . . . . . . . . ....
Assets transferred abroad
12. . . . . . . . . ....
Excluded indexed securities
13. . . . . . . . . ....
Meaning of corporate strip and conversion into corporate strips
13A. . . . . . . . . ....
Corporate strips deemed to be relevant discounted securities
13B. . . . . . . . . ....
Corporate strips: manipulation of acquisition, sale or redemption price
13C. . . . . . . . . ....
Corporate strips: manipulation of price: associated payment giving rise to CGT loss
13D. . . . . . . . . ....
Strips of government securities
14. . . . . . . . . ....
Strips of government securities: losses
14A. . . . . . . . . ....
Strips of government securities: manipulation of acquisition, sale or redemption price
14B. . . . . . . . . ....
Strips: manipulation of price: associated payment giving rise to capital gains tax loss
14C. . . . . . . . . ....
Restriction of profits and losses on strips by reference to original acquisition cost
14D. . . . . . . . . ....
Market value of strips etc for the purposes of paragraphs 8, 9, 14 and 14B
14E. . . . . . . . . ....
General interpretation
15. . . . . . . . . ....
Application of Schedule for income tax purposes only
16. . . . . . . . . ....
SCHEDULE 14 Loan relationships: minor and consequential amendments
The Taxes Management Act 1970 (c. 9)
1(1) In subsection (4A) of section 87A of the Taxes...
The Inheritance Tax Act 1984 (c. 51)
2(1) In section 174(1)(b) of the Inheritance Tax Act 1984...
The Airports Act 1986 (c. 31)
3In section 77 of the Airports Act 1986 (taxation provisions),...
The Gas Act 1986 (c. 44)
4In section 60 of the Gas Act 1986 (taxation provisions),...
The Taxes Act 1988
5In section 18 of the Taxes Act 1988 (Schedule D),...
6In section 56 of that Act (transactions in deposits with...
7In section 70(3) of that Act (extension of Cases IV...
8In section 75 of that Act (expenses of management), after...
9In section 77 of that Act (incidental costs of obtaining...
10(1) Section 78 of that Act (discounted bills of exchange)...
11(1) In section 209 of that Act (meaning of “distribution”),...
12(1) In subsection (2) of section 242 of that Act...
13. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
14(1) In subsection (2)(b) of section 337 of that Act...
15After section 337 of that Act there shall be inserted...
16(1) Section 338 of that Act (charges on income) shall...
17Sections 338A, 340 and 341 of that Act (charges on...
18In section 349(2) of that Act (deductions from interest payments),...
19In section 400 of that Act (writing-off of government investment),...
20(1) In section 401 of that Act (relief for pre-trading...
21(1) In subsection (6) of section 404 of that Act...
22(1) In subsection (1)(b) of section 407 of that Act...
23(1) Where this Chapter has effect in relation to any...
24Where this Chapter has effect in relation to any accounting...
25. . . . . . . . . ....
26In section 468L(5) of that Act (interest distributions), for the...
27(1) In subsection (2) of section 475 of that Act...
28(1) In subsection (3) of section 477A of that Act...
29Sections 484 and 485 of that Act (savings banks: exemption...
30In section 486 of that Act (industrial and provident societies)—...
31(1) In subsection (1) of section 487 of that Act...
32(1) In subsection (1) of section 494 of that Act...
33In section 587A of that Act (extra return on new...
34In section 614 of that Act (exemptions and reliefs in...
35In section 687(3) of that Act (payments under discretionary trusts),...
36In section 710 of that Act (interpretation of sections 711...
37. . . . . . . . . ....
38In section 737(5A) of that Act (relief in respect of...
39(1) For subsections (10) and (11) of section 768B of...
40For subsections (9) and (10) of section 768C of that...
41In section 795 of that Act (computation of income subject...
42(1) In section 797 of that Act (limits on credit...
43After section 797 of that Act there shall be inserted...
44(1) In section 798 of that Act (interest on certain...
45In section 807 of that Act (sale of securities with...
46After section 807 of that Act there shall be inserted...
47In section 811 of that Act (deduction of foreign tax...
48(1) In subsection (7C) of section 826 of that Act...
49In subsection (1) of section 834 of that Act (definitions...
50Schedule 4 to that Act (deep discount securities) shall cease...
51In paragraph 5B(2) of Schedule 19AC to that Act (overseas...
52(1) Schedule 23A to that Act (manufactured payments) shall be...
53In Schedule 26 to that Act (controlled foreign companies), in...
54(1) In paragraph 6 of Schedule 28A to that Act...
The British Steel Act 1988 (c. 35)
55In section 11 of the British Steel Act 1988 (taxation...
The Finance Act 1989 (c. 26)
56In section 88(3) of the Finance Act 1989 (relevant profits...
57Schedule 11 to that Act (deep gain securities) shall cease...
The Finance Act 1990 (c. 29)
58Schedule 10 to the Finance Act 1990 (convertible securities) shall...
The Taxation of Chargeable Gains Act 1992 (c. 12)
59In section 108(1) of the Taxation of Chargeable Gains Act...
60(1) Section 116 of that Act (reorganisations, conversions and reconstructions)...
61(1) In section 117 of that Act (meaning of “qualifying...
62After section 117 of that Act there shall be inserted...
63. . . . . . . . . ....
64In section 251 of that Act (exclusion for debts that...
65In section 253(3) of that Act (relief for loans to...
66(1) In section 254 of that Act (relief for debts...
The Finance Act 1993 (c. 34)
67In section 127 of the Finance Act 1993 (accrual of...
68(1) In subsection (2) of section 129 of that Act...
69For sections 130 to 133 of that Act (charge to...
70(1) For subsection (4) of section 153 of that Act...
71In section 154 of that Act (definitions connected with assets),...
72In section 155 of that Act (definitions connected with liabilities),...
73(1) For subsections (5) to (9) of section 159 of...
74In section 167 of that Act (orders and regulations relating...
The Finance Act 1994 (c. 9)
75In section 160 of the Finance Act 1994 (treatment of...
76(1) In subsection (9) of section 167 of that Act...
77In section 173(5)(a) of that Act (references to the purposes...
78(1) In subsection (1) of section 177 of that Act...
79For paragraphs 1 and 2 of Schedule 18 to that...
SCHEDULE 15 Loan relationships: savings and transitional provisions
Part I Corporation tax
Application and interpretation of Part I
1(1) This Part of this Schedule has effect for the...
Loan relationships terminated before 1st April 1996
2Subject to paragraph 13(6) below, the amounts which are to...
Basic rules for transitional accounting periods
3(1) This paragraph applies as respects any continuing loan relationship...
Adjustment of opening value where new accounting basis adopted as from an accounting period beginning on 1st April 1996
3A(1) This paragraph applies in the case of a continuing...
Application of accruals basis to pre-commencement relationships
4Subject to the following provisions of this Schedule, any question...
Adjustments in respect of pre-commencement trading relationships
5(1) This paragraph applies in the case of any continuing...
Method of giving effect to paragraph 5 adjustments
6(1) Subject to sub-paragraph (4) below, the difference mentioned in...
General savings for the taxation of chargeable gains
7The amendments of the 1992 Act contained in Schedule 14...
Transitional provision for chargeable assets held after commencement
8(1) This paragraph applies where— (a) on 31st March 1996...
Election for alternative treatment of amounts specified in paragraph 8
9(1) Subject to the following provisions of this paragraph, where...
Adjustments of opening value for mark to market accounting in the case of chargeable assets
10(1) Where— (a) a mark to market basis of accounting...
Other adjustments in the case of chargeable assets etc.
11(1) Where— (a) an authorised accruals basis of accounting is...
Reduction of paragraph 11 credit where s.251(4) of 1992 Act prevents paragraph 8 loss
11A(1) This paragraph applies where, in the case of any...
Notional closing values of relevant assets
12(1) Subject to sub-paragraph (2) below, the notional closing value...
Further transitional rules for interest under loan relationships
13(1) Where— (a) an amount of interest under a loan...
Transitional in respect of incidental expenses already allowed
14To the extent that any deduction in respect of any...
Holdings of unit trusts etc.
15(1) This paragraph applies to any asset which—
Bad debt relieved before commencement
16(1) This paragraph applies where— (a) an amount becomes, or...
Transitional for overseas sovereign debt etc.
17(1) Subject to any regulations under sub-paragraph (4) below and...
Transitional for accrued income scheme
18. . . . . . . . . ....
Deep discount securities
19(1) This Chapter shall not affect— (a) the application of...
Deep gain securities
20(1) This Chapter shall not affect the application of paragraph...
Convertible securities
21(1) This Chapter shall not affect— (a) the application of...
Transitional and savings for Chapter II of Part II of the Finance Act 1993
22(1) Chapter II of Part II of the Finance Act...
Carrying back non-trading losses against exchange profits etc.
23(1) Subject to sub-paragraph (2) below, for the purpose of...
Exchange losses etc. carried forward from before 1st April 1996
24Where there is any amount which apart from this Chapter...
Transitional for debt contracts and options to which Chapter II of Part IV of the Finance Act 1994 is applied
25(1) This paragraph applies in the case of any debt...
Part II Income tax and capital gains tax
Application and interpretation of Part II
26(1) This Part of this Schedule (except paragraph 29) has...
Qualifying indexed securities
27(1) This paragraph applies where— (a) on 5th April 1996...
28For the purposes of Chapter 8 of Part 4 of...
29For the purposes of paragraph 2 of Schedule 10 to...
Transitional in relation to qualifying corporate bonds
30(1) This paragraph applies where— (a) any person holds any...
SCHEDULE 16 Share option schemes approved before passing of this Act
Preliminary
1 Share option schemes approved before passing of this Act
Limit on aggregate value of options
2 Share option schemes approved before passing of this Act
Price at which scheme shares may be obtained
3 Share option schemes approved before passing of this Act
Approval of the Board to alterations
4 Share option schemes approved before passing of this Act
Interpretation
5 Share option schemes approved before passing of this Act
SCHEDULE 17 Claims for relief involving two or more years
Preliminary
1(1) In this Schedule— (a) any reference to a claim...
Loss relief
2(1) This paragraph applies where a person makes a claim...
Relief for fluctuating profits of farming etc.
3(1) This paragraph applies where a person who is or...
Relief claimed by virtue of section 96(9)
4(1) This paragraph applies where— (a) a person who claims...
Carry-back of post-cessation etc. receipts
5(1) This paragraph applies where a person who has received...
Backward spreading of certain payments
6(1) This paragraph applies where a person who has received...
SCHEDULE 18 Overdue tax and excessive payments by the Board
The Taxes Management Act 1970
1In section 55 of the Taxes Management Act 1970 (recovery...
2(1) Section 59A of the Taxes Management Act 1970 (payments...
3(1) Section 86 of the Taxes Management Act 1970 (interest...
4(1) Section 88 of the Taxes Management Act 1970 (which...
The Taxes Act 1988
5In section 307 of the Taxes Act 1988 (enterprise investment...
6(1) Section 369 of the Taxes Act 1988 (MIRAS) shall...
7In section 374A of the Taxes Act 1988 (interest which...
8In section 375 of the Taxes Act 1988 (interest ceasing...
9In section 412(4) of the Taxes Act 1988 (group relief:...
10In section 588 of the Taxes Act 1988 (training courses:...
11(1) Schedule 14 to the Taxes Act 1988 (life assurance...
The Finance Act 1989
12(1) Section 57 of the Finance Act 1989 (medical insurance:...
13In section 178 of the Finance Act 1989 (setting rates...
The Finance Act 1991
14(1) Section 33 of the Finance Act 1991 (vocational training)...
The Taxation of Chargeable Gains Act 1992
15(1) Section 281 of the Taxation of Chargeable Gains Act...
The Finance Act 1995
16In section 73(4) of the Finance Act 1995 (power to...
Commencement
17(1) Paragraphs 1 to 3, 6(2)(a) and (b), 8, 10,...
SCHEDULE 19 Self-assessment: claims and enquiries
Introductory
1The Taxes Management Act 1970, as it has effect—
Matters subject to enquiry
2In each of sections . . . 11AB(1),. . ....
Power to call for documents
3(1) In section 19A (power to call for documents for...
Further amendments of section 28A
4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Further amendments of section 28B
5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Right of appeal against notice disallowing claim in return
6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7In section 50 (procedure on appeals), after subsection (7) there...
Claims not included in returns
8(1) In Schedule 1A (claims not included in returns), in...
9. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Right of appeal against notice disallowing claim not in return
10(1) In paragraph 9 of Schedule 1A (appeals), for sub-paragraph...
SCHEDULE 20 Self-assessment: discretions exercisable by the Board etc.
The Taxes Act 1988
1In section 24(2) of the Taxes Act 1988 (presumption as...
2In section 38(4) of the Taxes Act 1988 (assumptions as...
3In section 65(4) of the Taxes Act 1988 (assessments under...
4In section 74(1)(j) of the Taxes Act 1988 (Case I...
5(1) In section 109A of the Taxes Act 1988 (relief...
6In section 132(1) of the Taxes Act 1988 (emoluments for...
7In section 145(7) of the Taxes Act 1988 (living accommodation...
8In section 159 of the Taxes Act 1988 (pooled cars)—...
9In section 161 of the Taxes Act 1988 (exceptions from...
10(1) In section 168 of the Taxes Act 1988 (interpretative...
11In section 186(10) of the Taxes Act 1988 (value of...
12In section 231(3A) of the Taxes Act 1988 (restriction of...
13In section 257 of the Taxes Act 1988 (personal allowance)—...
14(1) Section 257A of the Taxes Act 1988 (married couple’s...
15In section 257E(1) of the Taxes Act 1988 (claimant entitled...
16(1) Section 257F of the Taxes Act 1988 (transitional relief:...
17(1) Section 259 of the Taxes Act 1988 (additional relief...
18In section 261A(1) of the Taxes Act 1988 (person who...
19In section 265(1) of the Taxes Act 1988 (claimant entitled...
20In section 274(4) of the Taxes Act 1988 (effect of...
21In section 278(2) of the Taxes Act 1988 (bar on...
22In section 306(2) of the Taxes Act 1988 (claim for...
23In section 311(4) of the Taxes Act 1988 (application of...
24In section 381(4) of the Taxes Act 1988 (no relief...
25(1) In section 384 of the Taxes Act 1988 (restrictions...
26In section 393A of the Taxes Act 1988 (losses: set-off...
27In section 397(3) of the Taxes Act 1988 (farming and...
28(1) Section 488 of the Taxes Act 1988 (co-operative housing...
29(1) Section 489 of the Taxes Act 1988 (self-build societies)...
30In section 503(6) of the Taxes Act 1988 (apportionments where...
31In section 570(2) of the Taxes Act 1988 (schemes for...
32In section 582(2)(b) of the Taxes Act 1988 (cases where...
33(1) Section 584 of the Taxes Act 1988 (relief for...
34In section 585(1) of the Taxes Act 1988 (relief for...
35In section 717(9) of the Taxes Act 1988 (which provides...
36In section 731(3) of the Taxes Act 1988 (cases of...
37In section 769(2)(d) of the Taxes Act 1988 (acquisitions of...
38(1) Section 812 of the Taxes Act 1988 (withdrawal of...
39In section 815A of the Taxes Act 1988 (transfer of...
40. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
41In Schedule 7 to the Taxes Act 1988 (taxation of...
42In Schedule 12 to the Taxes Act 1988 (foreign earnings)...
43In Schedule 21 to the Taxes Act 1988 (tax relief...
The Capital Allowances Act 1990
44. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
The Taxation of Chargeable Gains Act 1992
45In the following provisions of this Schedule “the Gains Act”...
46In section 30(4) of the Gains Act (section not to...
47In each of— (a) subsections (5) and (6) of section...
48In section 48 of the Gains Act (consideration due after...
49In section 49 of the Gains Act (contingent liabilities) for...
50In section 52(4) of the Gains Act (apportionments by such...
51In section 116(13) of the Gains Act (subsection (12) not...
52(1) In section 122 of the Gains Act (distribution which...
53(1) In section 133 of the Gains Act (premiums on...
54In each of sections 150(10)(a) and 150A(9)(a) of the Gains...
55In section 164F(8)(a) of the Gains Act (section not to...
56In section 164FG of the Gains Act (multiple claims for...
57(1) In each of subsections (4) and (6) of section...
58In section 181(1)(b) of the Gains Act (sections 178 and...
59(1) Section 222 of the Gains Act (relief on disposal...
60In section 224(2) of the Gains Act (adjustment of relief...
61In section 226 of the Gains Act (relief in respect...
62In section 241(7) of the Gains Act (apportionments where a...
63(1) In section 271 of the Gains Act (miscellaneous exemptions)...
64In section 279(1) of the Gains Act (claimant for deduction...
65In section 280 of the Gains Act (payment of tax...
66(1) Schedule 6 to the Gains Act (retirement relief) shall...
67In Schedule 8 to the Gains Act (leases) in paragraph...
The Finance Act 1993
68(1) In section 144 of the Finance Act 1993 (irrecoverable...
69(1) In section 145 of the Finance Act 1993, in...
70In Schedule 15 to the Finance Act 1993 (exchange gains...
The Finance Act 1994
71(1) Section 163 of the Finance Act 1994 (interest rate...
SCHEDULE 21 Self-assessment: time limits
The Taxes Act 1988
1In section 62A(3) of the Taxes Act 1988 (time limit...
2(1) Section 84 of the Taxes Act 1988 (relief for...
3(1) Section 101 of the Taxes Act 1988 (valuation of...
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5In section 257D(9)(a) of the Taxes Act 1988 (notice to...
6In section 265(5)(a) of the Taxes Act 1988 (notice to...
7In section 306(1) of the Taxes Act 1988 (claim for...
8(1) Section 356B of the Taxes Act 1988 (residence basis:...
9In section 356C(6) of the Taxes Act 1988, for paragraph...
10In section 381(1) of the Taxes Act 1988 (claim to...
11In section 392(5) of the Taxes Act 1988 (claim to...
12In section 471 of the Taxes Act 1988 (exchange of...
13(1) In section 472 of the Taxes Act 1988 (distribution...
14(1) Section 504 of the Taxes Act 1988 shall be...
15(1) Section 524 of the Taxes Act 1988 (taxation of...
16In section 585(6) of the Taxes Act 1988 (no claim...
17In section 619(4) of the Taxes Act 1988 (election to...
18. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
19In section 691(4) of the Taxes Act 1988 (election to...
20In section 700(3) of the Taxes Act 1988 (time for...
21(1) Section 781 of the Taxes Act 1988 (assets leased...
22In section 804(7) of the Taxes Act 1988 (claim for...
23In section 806(1) of the Taxes Act 1988 (claim to...
24In Schedule 11 to the Taxes Act 1988, in paragraph...
The Finance Act 1988 (c. 39)
25In section 39(2)(b) of the Finance Act 1988 (election to...
The Capital Allowances Act 1990 (c. 1)
26. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
27. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
28. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
29. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
30. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
31. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
32. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
33. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
34. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
The Taxation of Chargeable Gains Act 1992 (c. 12)
35In section 35(6) of the Taxation of Chargeable Gains Act...
36In section 161 of the Taxation of Chargeable Gains Act...
37In section 242 of the Taxation of Chargeable Gains Act...
38In section 243 of the Taxation of Chargeable Gains Act...
39In section 244 of the Taxation of Chargeable Gains Act...
40In section 253 of the Taxation of Chargeable Gains Act...
41In section 279 of the Taxation of Chargeable Gains Act...
42(1) Schedule 2 to the Taxation of Chargeable Gains Act...
43In Schedule 4 to the Taxation of Chargeable Gains Act...
44(1) Schedule 6 to the Taxation of Chargeable Gains Act...
The Finance (No. 2) Act 1992 (c. 48)
45For section 41(6) of the Finance ( No. 2) Act...
46For section 42(6) of the Finance ( No. 2) Act...
47(1) Schedule 10 to the Finance ( No. 2) Act...
The Finance Act 1994 (c. 9)
48(1) Section 118 of the Finance Act 1994 (expenditure on...
SCHEDULE 22 Self-assessment: appeals
The Taxes Management Act 1970
1The Taxes Management Act 1970 shall be amended in accordance...
2In section 19A (power to call for documents for purposes...
3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5In section 33A (error or mistake in partnership statement), for...
6Section 42(12) and Schedule 2 (Commissioners to whom appeal lies...
7For section 47 there shall be substituted the following sections—...
8In section 57(3)(c) (power to make regulations authorising conditional decisions...
9In Schedule 1A (claims not included in returns), after paragraph...
10The following Schedule shall be substituted for Schedule 3— SCHEDULE...
Section 102 of the Taxes Act 1988
11In section 102(1)(a) of the Taxes Act 1988 (cases where...
Commencement of Schedule
12This Schedule has effect in relation to—
SCHEDULE 23 Self-assessment: Schedules 13 and 16 to the Taxes Act 1988
Part I Schedule 13 to the Taxes Act 1988
1Schedule 13 to the Taxes Act 1988 (collection of advance...
2In paragraph 2 (contents of returns) in sub-paragraph (2) (specification...
3In paragraph 3(3) (power of the inspector to make an...
4(1) In sub-paragraph (1) of paragraph 3B (power of the...
5In paragraph 5 (certain deemed claims for set-off in respect...
6In paragraph 6A(1) (certain deemed claims for set-off in respect...
7(1) Paragraph 7 (special provision for qualifying distributions which are...
8After paragraph 7 there shall be inserted— Amended return where...
9In paragraph 8 (power of inspector to make assessments etc...
Part II Schedule 16 to the Taxes Act 1988
10Schedule 16 to the Taxes Act 1988 (collection of income...
11In paragraph 4(2) (cases where the inspector may make an...
12After paragraph 7 there shall be inserted— Amended return where...
13In paragraph 8 (power of inspector to make assessments etc...
SCHEDULE 24 Self-assessment: accounting periods etc.
Part I Amendments of the Taxes Management Act 1970
Introductory
1The Taxes Management Act 1970 shall be amended in accordance...
2In section 11 (return of profits), after subsection (9) there...
Power to enquire into return for wrong period, etc.
3In section 11AA (return of profits to include self-assessment), after...
4(1) In section 11AB(1) (power to enquire into return of...
5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Amendment of return for wrong period
6After section 28A there shall be inserted the following sections—...
Failure to deliver return: determinations
7After section 28C there shall be inserted the following sections—...
Commencement
8(1) Paragraphs 3 to 6 above have effect in relation...
Part II Other amendments
General
9In this Part of this Schedule “the appointed day” means...
Repeal of section 8A of the Taxes Act 1988
10Section 8A of the Taxes Act 1988 (resolutions to reduce...
Determination of accounting date
11(1) Section 12 of the Taxes Act 1988 (basis of,...
Companies in liquidation
12(1) Section 342 of the Taxes Act 1988 (companies in...
Construction of references to assessments
13In section 197(1) of the Finance Act 1994 (construction of...
SCHEDULE 25 Self-assessment: surrenders of advance corporation tax
Amendments of section 240 of the Taxes Act 1988
1(1) Section 240 of the Taxes Act 1988 (set-off of...
The new Schedule 13A to the Taxes Act 1988
2After Schedule 13 to the Taxes Act 1988 there shall...
3Paragraphs 1 and 2 above have effect where the accounting...
Other amendments
4Section 239(5) of the Taxes Act 1988 (manner in which...
5In the Table in section 98 of the Taxes Management...
SCHEDULE 26 Damages and compensation for personal injury
SCHEDULE 27 Foreign income dividends
Companies that pay FIDs
1(1) In section 246A(1) of the Taxes Act 1988 (foreign...
Recipients of FIDs
2Section 246D(5) of that Act (exclusion of section 233(1) and...
Calculation of the distributable foreign profit and the notional foreign source ACT
3(1) In section 246I(6) of that Act, for the words...
International headquarters company
4(1) Section 246S of that Act (conditions for treatment as...
Life assurance business charged under Case I of Schedule D
5(1) In section 440B of that Act (modifications for life...
Foreign income distributions to corporate unit holders
6(1) In section 468R of that Act (foreign income distributions...
SCHEDULE 28 FOTRA securities: consequential amendments
The Taxes Act 1988
1Section 47 of the Taxes Act 1988 (FOTRA securities) shall...
2Section 474(2) of that Act (which prevents the deduction of...
3(1) In section 475 of that Act (tax-free securities: exclusion...
4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5In paragraph 5C of Schedule 19AC to that Act (modification...
6In paragraph 1(3) of Schedule 24 to that Act ......
The Inheritance Tax Act 1984 (c. 51)
7In section 6(2) of the Inheritance Tax Act 1984 (FOTRA...
8In each of paragraphs (a) and (b) of section 48(4)...
SCHEDULE 29 Paying and Collecting Agents etc.
Part I The New Chapter
1In Part IV of the Taxes Act 1988 (provisions relating...
Part II Other Provisions
Penalties
2(1) In section 98 of the Taxes Management Act 1970...
Amendments of the Taxes Act 1988
3The Taxes Act 1988 shall be amended in accordance with...
4For section 124(2) to (5) there shall be substituted—
5(1) In section 348(3) and in section 349(1), at the...
6In section 582A (designated international organisations: miscellaneous exemptions), in subsection...
7In paragraph 4(8) of Schedule 23A (manufactured overseas dividends), for...
Amendment of the Finance Act 1989
8In section 178 of the Finance Act 1989 (setting rates...
SCHEDULE 30 Investments in housing
Reduced rate of corporation tax
1After section 508 of the Taxes Act 1988 there shall...
Investments in housing by investment trusts
2(1) Section 842 of the Taxes Act 1988 (investment trusts)...
Commencement
3This Schedule has effect in relation to accounting periods beginning...
SCHEDULE 31 Life assurance business losses
Expenses of management
1In section 76 of the Taxes Act 1988 (expenses of...
Computation of losses and limitation on relief
2(1) In relation to accounting periods beginning on or after...
Spreading of relief for acquisition expenses
3(1) In section 86 of the Finance Act 1989 (spreading...
Ascertainment of losses
4In section 83 of the Finance Act 1989 (receipts to...
Application of surplus in reduction of certain losses
5. . . . . . . . . ....
Meaning of “brought into account” in sections 83AA and 83AB
6. . . . . . . . . ....
Enactments disapplying section 83(3) of the Finance Act 1989
7(1) The following provisions of the Taxes Act 1988 (each...
Overseas life insurance companies
8(1) Schedule 8A to the Finance Act 1989 (modifications of...
Transitional provisions
9. . . . . . . . . ....
Commencement
10(1) Subject to paragraph 2(1) and (3) above, paragraphs 1...
SCHEDULE 32 Equalisation reserves
1In Chapter I of Part XII of the Taxes Act...
2In the second column of the Table in section 98...
SCHEDULE 33 Management expenses of capital redemption business
Amendment of section 76 of Taxes Act
1(1) In section 76 of the Taxes Act 1988 (management...
Treatment of capital redemption business
2In subsection (1) of section 458 of the Taxes Act...
Overseas life insurance companies
3In sub-paragraph (1) of paragraph 5 of Schedule 19AC to...
Commencement
4This Schedule has effect as respects accounting periods ending on...
SCHEDULE 34 Provisional repayments in connection with pension business
Part I Amendments of Schedule 19AB to the Taxes Act 1988
1(1) Paragraph 1 (entitlement to certain payments on account) shall...
2(1) Paragraph 2 (changes in the provisional fraction) shall be...
3(1) Paragraph 3 (repayment, with interest, of excessive provisional repayments)...
4(1) Paragraph 6 (interpretation) shall be amended in accordance with...
Part II Amendments of Schedule 19AC to the Taxes Act 1988
5(1) Paragraph 15 (modification of Schedule 19AB) shall be amended...
SCHEDULE 35 Roll-over relief in respect of ships
Preliminary
1The Capital Allowances Act 1990 shall be amended as follows....
Amendment of provisions relating to roll-over relief in respect of ships
2(1) In subsection (3) of section 33A (relief limited to...
3(1) In subsection (1) of section 33C (re-imposition of deferred...
4(1) In section 33D (definition of expenditure on new shipping),...
5(1) In section 33E (definition of a qualifying ship), after...
6(1) In section 33F (procedural provisions), in subsection (4)—
Commencement
7(1) Subject to sub-paragraph (2) below, this Schedule shall have...
SCHEDULE 36 Controlled foreign companies
1(1) Section 747A of the Taxes Act 1988 (special rule...
2In section 748(3) of the Taxes Act 1988 (direction under...
3(1) Schedule 24 to the Taxes Act 1988 (assumptions for...
4(1) Schedule 25 to the Taxes Act 1988 (cases excluded...
SCHEDULE 37 Banks
Part I“Bank” re-defined for certain purposes
1(1) After section 840 of the Taxes Act 1988 there...
Part II Amendments of the Taxes Act 1988
Provisions in which new meaning of “bank” applies
2(1) The following subsection— (0) In this section “bank” has...
Related amendments
3In section 349(3) of the Taxes Act 1988—
4After subsection (3AA) of section 349 of the Taxes Act...
5In Schedule 20 to the Taxes Act 1988, in paragraphs...
Application
6The amendments of the Taxes Act 1988 made by paragraphs...
7The amendment of section 234A applies in relation to payments...
8(1) The amendment of subsection (3)(a) of section 349, and...
9The amendments of sections 745 and 816 apply in relation...
10The amendments of paragraphs 7 and 10 of Schedule 20...
Part III Other amendments
Amendments of the Management Act
11(1) The following subsection— (0) In this section “bank” has...
Amendments of the Inheritance Tax Act 1984
12(1) In section 157 of the Inheritance Tax Act 1984...
SCHEDULE 38 Quotation or listing of securities
The Finance Act 1973
1(1) In section 38(2)(c) of the Finance Act 1973 (disposals...
The Inheritance Tax Act 1984
2(1) For the second and the last occurrences of the...
3(1) In section 180(3) of that Act (whether two investments...
4(1) In section 178(2) of that Act (shares or investments...
5(1) In each of sections 227(1AA) and 228(5) of that...
The Taxes Act 1988
6(1) In each of the provisions of the Taxes Act...
7(1) In each of the provisions of that Act listed...
8(1) In section 251(5) of that Act (application of section...
9(1) In section 735(3) of that Act (meaning of the...
The Taxation of Chargeable Gains Act 1992
10(1) In each of the provisions of the Taxation of...
11(1) In section 146(4)(b) of that Act (definition of “quoted...
12(1) In section 272(3) of that Act (market value of...
SCHEDULE 39 Enactment of Certain Inland Revenue Extra-Statutory Concessions
Part I Income Tax and Corporation Tax
Capital Allowances
1(1) The Capital Allowances Act 1990 (“the 1990 Act”) shall...
Contributions to overseas pension schemes
2(1) Section 76 of the Finance Act 1989 (non-approved retirement...
Part II Chargeable Gains
Treatment of compensation and insurance money
3(1) Section 23 of the Taxation of Chargeable Gains Act...
Assets of negligible value
4(1) Section 24 of the Taxation of Chargeable Gains Act...
Settled Property
5(1) Section 72 of the Taxation of Chargeable Gains Act...
6(1) Section 73 of the Taxation of Chargeable Gains Act...
Retirement Relief
7(1) Paragraph 14 of Schedule 6 to the Taxation of...
Relief for loans to traders
8(1) Section 253 of the Taxation of Chargeable Gains Act...
Relief for debts on qualifying corporate bonds
9(1) Section 254 of the Taxation of Chargeable Gains Act...
Part III Stamp Duty
Lost or spoiled instruments
10(1) The Stamp Duties Management Act 1891 (“the Management Act”)...
SCHEDULE 40 Gilt stripping: taxation provisions
The Stamp Act 1891 (c. 39)
1In the definition of “stock” in section 122(1) of the...
2(1) At the end of paragraph (1) of the general...
The Taxes Act 1988
3(1) At the end of subsection (5) of section 710...
4In section 711 of the Taxes Act 1988 (interpretation of...
5In section 712(4) of the Taxes Act 1988 (meaning of...
6In the Taxes Act 1988, the following section shall be...
7In the Taxes Act 1988, the following section shall be...
The Taxation of Chargeable Gains Act 1992 (c. 12)
8In Schedule 9 to the Taxation of Chargeable Gains Act...
SCHEDULE 41Repeals
Part I Hydrocarbon Oil Duty: relief for marine voyages
Part II Vehicle Excise and Registration
Part III Excise duties: repeal of drawbacks etc.
Part IV Value Added Tax
Part V Income Tax, Corporation Tax and Capital Gains Tax
(2) Transfer of Schedule C charge etc. Chapter Short title...
(7) Self-assessment: notices Chapter Short title Extent of repeal 1970...
(22) Venture capital trusts Chapter Short title Extent of repeal...
Part VI Inheritance Tax
1Subject to note 2 below, these repeals have effect in...
2The repeal in section 116 of the Inheritance Tax Act...
Part VII Stamp duty and stamp duty reserve tax
1The repeals in sections 87 and 88 of the Finance...
2The repeals in sections 94 and 96 of the Finance...
3The repeal in section 97 of the Finance Act 1986...
4The repeals in the Finance Act 1996 have effect—
Part VIII Miscellaneous

Finance Act 1996

1996 c. 8

An Act to grant certain duties, to alter other duties, and to amend the law relating to the National Debt and the Public Revenue, and to make further provision in connection with Finance.

I1C1Most Gracious Sovereign,

We, Your Majesty’s most dutiful and loyal subjects, the Commons of the United Kingdom in Parliament assembled, towards raising the necessary supplies to defray Your Majesty’s public expenses, and making an addition to the public revenue, have freely and voluntarily resolved to give and grant unto Your Majesty the several duties hereinafter mentioned; and do therefore most humbly beseech Your Majesty that it may be enacted, and be it enacted by the Queen’s most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:—C2

Annotations:
Commencement Information
I1

Act in force at Royal Assent (29.4.1996) subject to specific provisions as mentioned.

Modifications etc. (not altering text)
C1

Act modified (with effect in accordance with reg. 1(2) of the amending S.I.) by The Authorised Investment Funds (Tax) Regulations 2006 (S.I. 2006/964), reg. 95 (as amended (30.6.2008) by The Authorised Investment Funds (Tax) (Amendment No. 2) Regulations 2008 (S.I. 2008/1463), regs. 1, 2)