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Finance Act 2002 is up to date with all changes known to be in force on or before 06 October 2024. There are changes that may be brought into force at a future date.
Revised legislation carried on this site may not be fully up to date. Changes and effects are recorded by our editorial team in lists which can be found in the ‘Changes to Legislation’ area. Where those effects have yet to be applied to the text of the legislation by the editorial team they are also listed alongside the affected provisions when you open the content using the Table of Contents below.
Part 3 Income tax, corporation tax and capital gains tax
Chapter 1 Charge and rate bands
42. Reallocation within group of gain or loss accruing under section 179
44. Exemptions for disposals by companies with substantial shareholding
49. Election to forgo roll-over relief on transfer of business
50. Shares acquired on same day: election for alternative treatment
51. Deduction of personal losses from gains treated as accruing to settlors
52. Capital gains tax: variation of dispositions taking effect on death
Foreign exchange gains and losses, loan relationships and currency
Part 6 Miscellaneous and supplementary provisions
SCHEDULES
Hydrocarbon oil duties: minor and consequential amendments relating to biodiesel
Hydrocarbon oil duties: rebated heavy oil etc
Part 1 Amendments of the Betting and Gaming Duties Act 1981
5.In section 9(2) (bets to which section applies), omit “or...
6.In section 9(3) (bets to which section does not apply)—...
7.For section 9(6) substitute— (6) Section 8C(1) to (3) above...
9.In section 12(3) (interpretation of sections 1 to 10 etc),...
10.(1) Schedule 1 (administration etc of betting duties) is amended...
Vehicle excise duty: registered vehicles etc
1.The Vehicle Excise and Registration Act 1994 (c. 22) is...
2.For section 1(1) substitute— (1) A duty of excise (“vehicle...
4.For section 7(4) (vehicle licence valid only for vehicle for...
5.After section 7 insert— Supplement payable on late renewal of...
6.(1) In section 22 (registration regulations), in subsection (1D) (power...
8.After section 31 insert— Offence of being registered keeper of...
9.(1) In section 32 (sections 29 to 31: supplementary), in...
10.In section 33(3)(b) (offences of not exhibiting licence are without...
12.In section 47 (proceedings in England and Wales or Northern...
13.In section 48(3)(a) (proceedings in Scotland: time limit), after “section...
15.In section 54 (single witness sufficient in Scottish proceedings), after...
16.In section 57 (regulations), after subsection (7) insert—
17.In section 62(1) (definitions), for the definition of “vehicle" substitute—...
Chargeable gains: roll-over of degrouping charge: modification of enactments
Chargeable gains: exemptions in case of substantial shareholding
Chargeable gains: share exchanges and company reconstructions
Chargeable gains: deduction of personal losses from gains treated as accruing to settlors
Tax relief for expenditure on research and development
Part 1 Entitlement to relief for R&D expenditure: large companies
Part 2A Entitlement of SME to additional relief available to large companies
Part 4 Special provision for giving relief to insurance companies
Tax relief for expenditure on vaccine research etc
5.Meaning of “relevant R&D”, “small or medium-sized enterprise”, “staffing costs”, “software or consumable items”, “relevant payments to the subjects of a clinical trial”, “subsidised” and “qualifying expenditure on externally provided workers.
6.Qualifying expenditure on sub-contracted research and development
7.Conditions that must be satisfied by qualifying expenditure on sub-contracted research and development
8.Treatment of sub-contractor payment where principal and sub-contractor are connected persons
12.Qualifying expenditure on contributions to independent research and development
Part 2 Manner of giving effect to relief: small and medium-sized companies
Part 4 Special provision for giving relief to insurance companies
R&D tax relief for small and medium-sized enterprises: minor and consequential amendments
Community investment tax relief
Part 2 Accredited community development finance institutions
Capital allowances: plant or machinery for gas refuelling station
First-year allowances for expenditure wholly for a ring fence trade
Exchange gains and losses from loan relationships etc
Part 1 Amendments of the Finance Act 1996
6.Extension of section 100 to exchange gains and losses and to items other than money debts
8.Bad debt etc: cases where departure allowed from assumption of prompt payment in full
11.Exchange gains and losses where loan not on arm’s length terms
16.Savings and transitional provisions in the Finance Act 1996
Part 2 Amendments of other legislation
Part 1 Amendments of the Finance Act 1996
14.Interpretation: “shares” not to include building society shares
16.Provision continuing to be made on accruals basis after company ceases to be party
18.Claim to carry back deficit to previous accounting periods
19.Deficit carried forward and set against non-trading profits of succeeding accounting periods
22.Late interest: further cases where paragraph 2 of Schedule 9 applies
25.Bad debt etc: parties having connection and creditor company in insolvent liquidation etc
27.Bad debt etc: departure not permitted by paragraph 6: subsequent cessation of connection
31.Debits and credits treated as relating to capital expenditure
37.Investment trusts and venture capital trusts: treatment of capital reserves
38.Authorised unit trusts and open-ended investment companies
42.Reduction of paragraph 11 credit where s.251(4) of 1992 Act prevents paragraph 8 loss
4.Contracts excluded by virtue of their underlying subject matter
4A.Contracts which become derivative contracts: chargeable assets
4B.(1) This paragraph applies to a company if the conditions...
4D.Treatment of credits and debits on former chargeable asset
9.Underlying subject matter which is subordinate or of small value disregarded
Part 6 Special computational provisions
22A.Deemed assignment of derivative contracts on company ceasing to be resident in UKetc
24.Derivative contracts for unallowable purposes: supplementary
25.Debits and credits treated as relating to capital expenditure
25A.Debits and credits recognised in equity or shareholders' funds
27.Exchange gains and losses where derivative contracts not on arm’s length terms
27A.Disposals for consideration not fully recognised by accounting practice
29.Transactions within groups: exceptions relating to insurance
30A.Transferee leaving group after replacing transferor as party to derivative contract
30B.(1) This paragraph applies on a merger which satisfies the...
30C.(1) This paragraph applies on a merger which satisfies the...
30D.(1) This paragraph applies where— (a) a company resident in...
30E.(1) This paragraph applies where— (a) a company resident in...
30G.(1) This paragraph applies in relation to a transfer of...
30H.(1) This paragraph applies in relation to a merger if—...
31A.Amounts imputed under Schedule 28AA to the Taxes Act 1988
Part 7 Collective investment schemes
33.Open-ended investment companies: capital profits and losses
36.Contracts relating to holdings in unit trust schemes, open-ended investment companies and offshore funds
37.Contract which becomes contract to which paragraph 36 applies
38A.Venture capital trusts: capital profits, gains or losses
39.Investment trusts: approval for purposes of section 842 of the Taxes Act 1988
40.Venture capital trusts: approval for purposes of section 842AA of the Taxes Act 1988
45A.Derivative contracts which are to be taxed on a chargeable gains basis
45B.Carry back of net losses on derivative contracts to which paragraph 45A applies
45C.Derivative contracts relating to land or certain tangible movable property
45D.Creditor relationships: embedded derivatives which are options
45F.Creditor relationships: embedded derivatives which are exactly tracking contracts for differences
45H.Treatment of net gains and losses on terminal exercise of option
45HZA.Treatment of net gains and losses on disposal of certain embedded derivatives
45HA. Treatment of credits and debits on terminal exercise of non-embedded option or running to delivery of future
45I.Index-linked gilt-edged securities with embedded contracts for differences
45J.Issuers of securities with embedded derivatives: deemed options
45JA.Issuers of securities with embedded derivatives: equity instruments
45K.Issuers of securities with embedded derivatives: deemed contracts for differences
46.Contracts where part of underlying subject matter of excluded type
50.Partnerships involving companies: use of fair value accounting
50A.Adjustment on company changing to international accounting standards
Derivative contracts: minor and consequential amendments
2.In section 15(1) (Schedule A) in paragraph 2(3) of Schedule...
5.In section 440 (transfers between categories of assets held by...
6.Omit section 468AA (authorised unit trusts: futures and options).
7.(1) Section 468L (interest distributions) is amended as follows.
8.In section 501A (supplementary charge in respect of ring fence...
9.In section 768B (change in ownership of investment company: deductions...
10.In section 768C (deductions: asset transferred within group) in subsection...
11.In section 798B (restriction of relief on certain interest and...
12.(1) Section 807A (disposals and acquisitions of company loan relationships...
13.In section 834(1) (interpretation of the Corporation Tax Acts) insert...
15.(1) Schedule 28AA (provision not at arm’s length) is amended...
19.(1) Section 101 (financial instruments) is amended as follows.
20.(1) Schedule 10 (loan relationships: collective investment schemes) is amended...
25.Section 78 (which amends the provision made by Schedule 5AA...
26.In Schedule 29 (taxation of intangible fixed assets) in paragraph...
Gains and losses of a company from intangible fixed assets
Part 7 Roll-over relief in case of realisation and reinvestment
47.General rule: a company and its 75% subsidiaries form a group
48.Membership of group restricted to effective 51% subsidiaries of principal company
49.Principal company cannot be 75% subsidiary of another company
51A.For the purposes of this Schedule where the principal company...
53.Meaning of equity holder and profits or assets available for distribution
Part 9 Application of provisions to groups of companies
56.Roll-over relief on reinvestment: application to group member
57.Roll-over relief on reinvestment: acquisition of group company treated as equivalent to acquisition of underlying assets
59.Degrouping: associated companies leaving group at the same time
60.Degrouping: principal company becoming member of another group
61.Degrouping: company ceasing to be member of group by reason of exempt distribution
62.Degrouping: merger carried out for bona fide commercial reasons
65.Degrouping: application of roll-over relief in relation to degrouping charge
67.Application of roll-over relief in relation to reallocated degrouping charge
68.Recovery of degrouping charge from another group company or controlling director
69.Recovery of degrouping charge from another group company or controlling director: procedure etc
70.Recovery of degrouping charge from another group company or controlling director: time limit
73A.Assets entirely excluded: assets in respect of which capital allowance previously made
76.Assets entirely excluded: rights in companies, trusts, etc
78.Assets excluded except as regards royalties: life assurance business
79.Assets excluded except as regards royalties: mutual trade or business
80.Assets excluded except as regards royalties: films and sound recordings
80B.Assets excluded except as regards royalties: sound recordings
81.Assets excluded except as regards royalties: computer software treated as part of cost of related hardware
82.Assets excluded to extent specified: research and development
83.Assets excluded to extent specified: election to exclude capital expenditure on computer software
Part 12 Transactions between related parties
92.Transfer between company and related party treated as being at market value
93.Exclusion of roll-over relief in case of part realisation involving related party
94.Delayed payment of royalty payable by company to related party
98.Rights and powers to be taken into account: rights and powers held jointly
Part 13 Supplementary provisions
102.Treatment of grants and other contributions to expenditure
106.Deemed market value acquisition: adjustment of amounts in case of nil accounting value
108.Asset ceasing to be chargeable intangible asset: deemed realisation at market value
109.Asset ceasing to be chargeable intangible asset: postponement of gain in certain cases
112.Debits not allowed in respect of expenditure not generally deductible for tax purposes
116.Assumptions for computing chargeable profits of controlled foreign companies
Part 13A Adjustment on change of accounting policy
116D.Change of accounting policy involving disaggregation: original asset subject to fixed rate writing down
116E.Change of accounting policy involving disaggregation: election for fixed rate writing down in relation to resulting asset
116F.Cap on credit to be brought into account on change of accounting policy
116G.Exclusion of debits or credits brought into account under other provisions
116H.Subsequent events affecting asset subject to adjustment under this Part
Part 14 Commencement and transitional provisions
118.Application of Schedule to assets created or acquired after commencement
120.Assets regarded as created or acquired when expenditure incurred
121.Internally-generated goodwill: whether created before or after commencement
122.Certain other internally-generated assets: whether created before or after commencement
123.Expenditure on acquisition treated as incurred when recognised for accounting purposes
124.When expenditure treated as incurred: chargeable gains rule to be followed in certain cases
125.When expenditure treated as incurred: capital allowances general rule to be followed in certain cases
127.Certain assets acquired on transfer of business treated as existing assets
127A.Assets whose value derives from existing assets treated as existing assets
127B.Assets acquired in connection with disposals of existing assets treated as existing assets
128.Application of Schedule to certain existing telecommunication rights
129.Application of Schedule to existing Lloyd’s syndicate capacity
130.Roll-over relief: application in relation to disposal of existing asset after commencement
131.Roll-over relief: application in relation to degrouping charge on existing asset arising after commencement
132.Roll-over relief: transitory interaction with relief on replacement of business asset
Gains and losses of a company from intangible fixed assets: consequential amendments
Gains of insurance company from venture capital investment partnership
2.In section 178(stop loss and quota share insurance), in subsection...
5.In section 184(1) (interpretation), in the definition of “stop-loss insurance",...
7.In section 225 (stop loss and quota share insurance), in...
10.In section 230(1) (interpretation), in the definition of “stop-loss insurance",...
Part 3 Time allowed for VCT to invest money raised by further share issue
Stamp duty: withdrawal of group relief: supplementary provisions
Stamp duty: withdrawal of relief for company acquisitions: supplementary provisions
Stamp duty: contracts chargeable as conveyances: supplementary provisions
Stamp duty: abolition of duty on instruments relating to goodwill: supplementary provisions
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