UKPGA-1989-26 Finance Act 1989 UK

Most 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:—

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for “£3,310” there shall be substituted “£3,540”.

for “£10,600” there shall be substituted “£11,400”,and

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for “£1,895” there shall be substituted “£2,025”.

for “£10,600” there shall be substituted “£11,400”,and

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the words “ employment to which Chapter II of Part V applies ”shall be substituted for the words from “director’s” to “section167)” in section 418(3)(a) of that Act;

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on or after 6th April 1990 an individual makes a payment in respect of a premium under a contract of private medical insurance (whenever issued),

the contract meets the requirement in subsection (2) below as to the person or persons insured,

at the time the payment is made the contract is an eligible contract,

the individual making the payment does not make it out of resources provided by another person for the purpose of enabling it to be made, and

the individual making the payment is not entitled to claim any relief or deduction in respect of it under any other provision of the Tax Acts.

an individual who at the time the payment is made is aged 60 or over and resident in the United Kingdom,

individuals each of whom at that time is aged 60 or over and resident in the United Kingdom, or

two individuals who are married to each other at that time, at least one of whom is aged 60 or over at that time, and each of whom is resident in the United Kingdom at that time.

a payment is made in respect of a premium under a contract at a time when the contract meets the requirement in subsection (2) above by virtue of paragraph (c) of that subsection, and

a payment is made under the same contract at a time after one of the individuals has died and when the contract does not (apart from this subsection) meet the requirement in subsection (2) above by virtue only of the fact that the surviving spouse is not aged 60 or over at the time,

in accordance with subsections (3A) to (3C) below, and

only on a claim made for the purpose.

the amount found under subsection (3B) below, and

the amount which reduces his liability to nil.

taking the amount of the payment referred to in subsection (3A) above or (as the case may be) the aggregate amount of the payments there referred to, and

finding an amount equal to tax on the amount taken under paragraph (a) above at the basic rate for the year of assessment concerned.

any income tax reduction under Chapter I of Part VII of the Taxes Act 1988 or under section 347B of that Act;

any income tax reduction under section 353(1A) of the Taxes Act 1988;

any relief by way of a reduction of liability to tax which is given in accordance with any arrangements having effect by virtue of section 788 of the Taxes Act 1988 or by way of a credit under section 790(1) of that Act;

any tax at the basic rate on so much of that person’s income as is income the income tax on which he is entitled to charge against any other person or to deduct, retain or satisfy out of any payment.

shall accept the amount paid after deduction in discharge of the individual’s liability to the same extent as if the deduction had not been made, and

may, on making a claim in accordance with regulations, recover from the Board an amount equal to the amount deducted.

an individual who has made a payment in respect of a premium under a contract of private medical insurance shall cease to be and be treated as not having been entitled to relief under subsection (3) above; and

he or the person to whom the payment was made (depending on the terms of the regulations) shall account to the Board for tax from which relief has been given on the basis that the individual was so entitled.

references to a premium, in relation to a contract of insurance, are to any amount payable under the contract to the insurer, and

references to an individual who is resident in the United Kingdom at anytime include references to an individual who is at that time performing duties which are treated by virtue of section 132(4)(a) of the Taxes Act 1988 as performed in the United Kingdom.

it was entered into by an insurer who at the time it was entered into was a qualifying insurer and was approved by the Board for the purposes of this section,

the period of insurance under the contract does not exceed one year(commencing with the date it was entered into),

at the relevant time the contract satisfies the conditions set out in subsection (2A) below,

the contract is not one in the case of which subsection (2D) below applies,

the contract is not connected with any other contract at the relevant time and has not been connected with any other contract at any time since it was entered into, and

no benefit has been provided by virtue of the contract other than an approved benefit, and

the contract meets one or more of the three conditions set out below.

the contract either provides indemnity in respect of all or any of the costs of all or any of the treatments, medical services and other matters for the time being specified in regulations made by the Treasury, or in addition to providing indemnity of that description provides cash benefits falling within rules for the time being so specified,

the contract does not confer any right other than such a right as is mentioned in paragraph (a) above or is for the time being specified in regulations made by the Treasury,

the premium under the contract is reasonable, and

the contract satisfies such other requirements as are for the time being specified in regulations made by the Treasury.

at the relevant time the contract confers a material right, or more than one such right, but

the total cost to the insurer of providing benefits in pursuance of the material right or (as the case may be) in pursuance of all the material rights would not exceed the prescribed sum,

is not a right such as is mentioned in subsection (2A)(a) above or such as is for the time being specified in regulations made under subsection (2A)(b) above, and

is not a right to a cash benefit.

at least one other contract is entered into which is a contract (a collateral contract) under which a benefit is provided in consideration of the insured’s entering into the main contract, and

the cost to the insurer of fulfilling his obligations under the collateral contract (or, if there is more than one collateral contract, of fulfilling his obligations under all of them) exceeds the prescribed sum.

which were (at the time the contract was entered into) certified by the Board as compatible with an eligible contract when made to that standard form, and

which (at that time) satisfied any conditions subject to which the additions were so certified.

they are simultaneously in force at that time,

either of them was entered into with reference to the other, or with a view to enabling the other to be entered into on particular terms, or with a view to facilitating the other being entered into on particular terms, and

the terms on which either of them was entered into would have been significantly less favourable to the insured if the other had not been entered into.

an insurer lawfully carrying on in the United Kingdom business of any of the classes specified in Part I of Schedule 2 to the Insurance Companies Act 1982;

an insurer not carrying on business in the United Kingdom but carrying on business in another member State and being either a national of a member State or a company or partnership formed under the law of any part of the United Kingdom or another member State and having its registered office, central administration or principal place of business in a member State.

mentioned in subsection (2A)(a) above, or

for the time being specified in regulations made under subsection (2A)(b) above.

it is a single benefit provided otherwise than as mentioned in subsection (9) above and the cost to the insurer of providing it does not exceed the prescribed sum, or

it is one of a number of benefits provided otherwise than as mentioned in subsection (9) above and the total cost to the insurer of providing the benefits does not exceed the prescribed sum.

the contract either provides indemnity in respect of all or any of the costs of all or any of the treatments, medical services and other matters for the time being specified in regulations made by the Treasury, or in addition to providing indemnity of that description provides cash benefits falling within rules for the time being so specified,

the contract does not confer any right other than such a right as is mentioned in paragraph (a) above or is for the time being specified in regulations made by the Treasury,

the premium under the contract is in the Board’s opinion reasonable, and

the contract satisfies such other requirements as are for the time being specified in regulations made by the Treasury.

the insurer, or

any person who (if the policy were certified) would be entitled to relief under section 54 above.

provide that a claim under section 54(3) or (6)(b) above shall be made in such form and manner, shall be made at such time, and shall be accompanied by such documents, as may be prescribed;

make provision for and with respect to appeals against a decision of an officer of the Board or the Board with respect to a claim under section 54(6)(b) above;

make provision, in relation to payments in respect of which a person is entitled to relief under section 54 above, for the giving by insurers in such circumstances as may be prescribed of certificates of payment in such form as may be prescribed to such persons as may be prescribed;

provide that a person who provides (or has at any time provided) insurance under contracts of private medical insurance shall comply with any notice which is served on him by the Board and which requires him within a prescribed period to make available for the Board’s inspection documents (of a prescribed kind) relating to such contracts;

provide that persons of such a description as may be prescribed shall, within a prescribed period of being required to do so by the Board, furnish to the Board information (of a prescribed kind) about contracts of private medical insurance;

make provision with respect to the approval of insurers for the purposes of section 55 above and the withdrawal of approval for the purposes of that section;

make provision for and with respect to appeals against decisions of the Board with respect to the giving or withdrawal of approval of insurers for the purposes of section 55 above;

make provision with respect to the certification by the Board of standard forms of eligible contract and variations from standard forms of eligible contract certified by them;

make provision for and with respect to appeals against decisions of the Board with respect to the certification of standard forms of eligible contractor variations from standard forms of eligible contract certified by them;

provide that certification, or the revocation of a certification, under section 56 above shall be carried out in such form and manner as may be prescribed;

make provision with respect to appeals against decisions of the Board with respect to certification or the revocation of certification under section 56 above;

make provision generally as to administration in connection with sections 54 to 56 above.

section 29(1)(c) (excessive relief) as it has effect apart from section 29(2) to (10) of that Act;

section 30 (tax repaid in error etc.) apart from subsection (1B),

section 86(interest), and

section 95 (incorrect return or accounts),

in a case where the person falling within section 54(6) above has made any interim claim, within the meaning of regulations made under subsection (1) and section 54(4) above, as respects some part of the year of assessment for which the assessment is made, is 1st January in that year of assessment; and

in any other case, is the later of the following dates, that is to say—

a company expends a sum in making a payment by way of contribution to the trustees of a trust which is a qualifying employee share ownership trust at the time the sum is expended,

at that time, the company or a company which it then controls has employees who are eligible to benefit under the terms of the trust deed,

at that time the company is resident in the United Kingdom,

before the expiry of the expenditure period the sum is expended by the trustees for one or more of the qualifying purposes, and

before the end of the claim period a claim for relief under this section is made.

shall be deducted in computing for the purposes of Schedule D the profits of a trade carried on by the company,

if the company is an investment company, shall be treated as expenses of management, or

if the company is a company in relation to which the I - E rules apply and the sum is referable, in accordance with Chapter 4 of Part 2 of the Finance Act 2012, to the company's basic life assurance and general annuity business, shall be treated for the purposes of section 76 of that Act as ordinary BLAGAB management expenses of the company.

the acquisition of shares in the company which established the trust;

the repayment of sums borrowed;

the payment of interest on sums borrowed;

the payment of any sum to a person who is a beneficiary under the terms of the trust deed;

the meeting of expenses.

the trustees shall be treated as receiving, when the event occurs, income of an amount that is equal to the chargeable amount (within the meaning of section 70 below),

that income shall be chargeable to income tax for the year of assessment in which the event occurs,

the tax so chargeable shall be charged on the full amount of the income the trustees are treated as receiving in the year of assessment, and

the trustees are liable for any tax so chargeable,...

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any interest which is due on the tax or the part (as the case may be) and has not been paid by the trustees, and

any interest accruing due on the tax or the part (as the case may be)after the date of service,

the company which established the employee share ownership trust;

any company falling within subsection (7) below.

it has paid a sum to the trustees, and

the sum has been deducted as mentioned in section 67(2)(a) above or treated as mentioned in section 67(2)(b) above.

the transfer of securities by the trustees, if the transfer is not a qualifying transfer;

the transfer of securities by the trustees to persons who are at the time of the transfer beneficiaries under the terms of the trust deed, if the terms on which the transfer is made are not qualifying terms;

the retention of securities by the trustees at the expiry of the qualifying period beginning with the date on which they acquired them;

the expenditure of a sum by the trustees for a purpose other than a qualifying purpose.

where—the expiry of that period.

it is made to the trustees of a scheme which at the time of the transfer is a profit sharing scheme approved under Schedule 9 to the Taxes Act 1988, and

it is made for a consideration which is not less than the price the securities might reasonably be expected to fetch on a sale in the open market.

it is a transfer of relevant shares made to the trustees of the plan trust of a share incentive plan,

the plan is approved under Schedule 2 to the Income Tax (Earnings and Pensions) Act 2003 when the transfer is made, and

the consideration (if any) for which the transfer is made does not exceed the market value of the shares.

the trustees transfer or dispose of part of a holding of shares (whether by way of a qualifying transfer or otherwise), and

the holding includes any relevant shares,

“original funds” means any money held by the trustees of the employee share ownership trust in a bank or building society account at midnight on 20th March 2000, and

any payment made by the trustees after that time (whether to acquire shares or otherwise) shall be treated as made out of original funds (and not out of money received after that time) until those funds are exhausted.

all the securities transferred at the same time other than those transferred on a transfer such as is mentioned in subsection (4ZA) below are transferred on similar terms,

securities have been offered to all the persons who are beneficiaries under the terms of the trust deed by virtue of a rule which conforms with paragraph 4(2), (3) or (4) of Schedule 5 to this Act when the transfer is made, and

securities are transferred to all such persons who have accepted.

it is made to a person exercising a right to acquire shares, and

that right was obtained in accordance with the provisions of an SAYE option scheme within the meaning of the SAYE code (see section 516(4) of the Income Tax (Earnings and Pensions) Act 2003)—

that right is being exercised in accordance with the provisions of that scheme, and

the consideration for the transfer is payable to the trustees.

seven years, in the case of trusts established on or before the day on which the Finance Act 1994 was passed;

twenty years, in the case of other trusts;

the acquisition of shares in the company which established the trust;

the repayment of sums borrowed;

the payment of interest on sums borrowed;

the payment of any sum to a person who is a beneficiary under the terms of the trust deed;

the meeting of expenses.

beginning with the qualifying transfer mentioned in that paragraph, and

ending nine months after the end of the period of account in which that qualifying transfer took place. For this purpose the period of account means the period of account of the company that established the employee share ownership trust.

acquire securities when they become entitled to them (subject to the exceptions in subsection (9) below);

transfer securities to another person when that other becomes entitled to them;

retain securities if they remain entitled to them.

if securities are issued to trustees in exchange in circumstances mentioned in section 135(1) of the Taxation of Chargeable Gains Act 1992, they shall be treated as having acquired them when they became entitled to the securities for which they are exchanged;

if trustees become entitled to securities as a result of a reorganisation, they shall be treated as having acquired them when they became entitled to the original shares which those securities represent (construing “reorganisation” and “original shares” in accordance with section 126 of that Act).

shares;

debentures.

if the event constitutes a disposal of the securities by the trustees for the purposes of the Taxation of Chargeable Gains Act 1992, the chargeable amount is an amount equal to the sums allowable under section 38(1)(a) and (b) of that Act;

if the event does not constitute such a disposal, the chargeable amount is an amount equal to the sums which would be so allowable had the trustees made a disposal of the securities for the purposes of that Act at the time the chargeable event occurs.

the amount of the consideration received for the qualifying transfer mentioned in section 69(1)(e) above, less

the amount of any expenditure by the trustees for a qualifying purpose during the period mentioned in section 69(5A) above.

a chargeable event (within the meaning of section 69 above) occurs in relation to the trustees of an employee share ownership trust,

at the time the event occurs anything is outstanding in respect of the principal of an amount or amounts borrowed at any time by the trustees, and

the chargeable event is one as regards which section 72(2)(b) below applies.

“the initial chargeable event” means the event referred to in subsection (1)(a) above, and

“the total outstanding amount” means the total amount outstanding, at the time the initial chargeable event occurs, in respect of the principal of an amount or amounts borrowed at any time by the trustees.

the trustees shall be treated as receiving, when the further event occurs, income of an amount that is equal to the chargeable amount,

that income shall be chargeable to income tax for the year of assessment at the end of which the further event occurs,

the tax so chargeable shall be charged on the full amount of the income the trustees are treated as receiving in the year of assessment, and

the trustees are liable for any tax so chargeable, ...

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the aggregate of the total outstanding amount repaid in the year of assessment, and

an amount found by applying the formula A-B-C.

A is the amount which would be the chargeable amount for the initial chargeable event apart from section 72(2) below,

B is the chargeable amount for the initial chargeable event, and

C is the amount (if any) found under subsection (8) below.

a chargeable event (within the meaning of section 69 above) occurs in relation to the trustees in circumstances mentioned in subsection (1) above,

a sum falls to be included in the total outstanding amount found for the time the event occurs,

another chargeable event (within the meaning of that section) occurs in relation to the trustees in circumstances mentioned in subsection (1) above, and

the same sum or a part of it would (apart from this subsection) fall to be included in the total outstanding amount found for the time the event occurs,

an event which is a chargeable event by virtue of section 69 above;

an event which is a chargeable event by virtue of section 71 above.

the amount which would (apart from this subsection) be the chargeable amount for the event in question shall be aggregated, for the purposes of paragraph (b) below, with the chargeable amounts for other chargeable events(if any) occurring in relation to the trustees before the event in question,

if the amount which would (apart from this subsection) be the chargeable amount for the event in question (or the aggregate found under paragraph (a)above, if there is one) exceeds the deductible amount, the chargeable amount for the event in question shall be the amount it would be apart from this subsection less an amount equal to the excess, and

section 70(2) and (3) and section 71(5) above shall have effect subject to paragraph (b) above.

it has been deducted as mentioned in section 67(2)(a) above, or treated as mentioned in section 67(2)(b) above, before the occurrence of that event, or

it would fall to be so deducted or treated if a claim for relief under section 67 above had been made immediately before the occurrence of that event.

sums received (including sums borrowed) by the trustees;

expenditure incurred by them;

assets acquired by them;

transfers of assets made by them.

that a sum has been so deducted or so treated, and

what sum has been so deducted or so treated.

an employee share ownership trust;

a qualifying employee share ownership trust.

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section 25(7) of that Act (information about assets disposed of),

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the words “and in relation” onwards shall be omitted.

for the words “sections 36, 37 and 39” in section 30(6) of the Taxes Management Act 1970 (tax repaid in error etc.),

for the words “sections 37 to 39” in section 118(3) of that Act (effect under law of Scotland of assessment in partnership name),

for the words “sections 36 and 39” in paragraph 10(1) of Schedule 13to the Taxes Act 1988 (assessments to advance corporation tax), and

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for the words “fraud, wilful default or neglect” in—

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for years of assessment before the year 1983-84, or

for accounting periods which ended before 1st April 1983.

for the word “aforesaid” there shall be substituted the words “indefault”,

the words “within the said five days” shall be omitted,

for the words from “two or more inhabitants of the parish” to “sufficient persons” there shall be substituted the words “one or moreindependent persons appointed by the collector”, and

the words from “The costs” to “the collector, and” shall beomitted.

for the words from the beginning to “shall be” there shall besubstituted the words “If at any time at which any goods or chattelsbelonging to any person (in this section referred to as “the personin default”) are”,

for the word “unless” there shall be substituted the words “theperson in default is in arrears in respect of any such sums as are referredto in subsection (1A) below, the goods or chattels may not be so taken unlesson demand made by the collector”, and

for the words “arrears of tax” onwards there shall be substituted thewords “such sums as have fallen due at or before the date of seizure.”

for the words from the beginning to “the collector shall” there shallbe substituted the words “If the sums referred to in subsection (1) aboveare not paid within ten days of the date of the demand referred to in thatsubsection, the collector may”,

for the words “shall proceed” there shall be substituted the words “may proceed”, and

for the words “the tax charged and claimed” there shall besubstituted the words “those sums”.

for the words from the beginning to “shall be” there shall besubstituted the words “If at any time at which any moveable goods andeffects belonging to any person (in this section referred to as “theperson in default”) are”,

for the word “unless” there shall be substituted the words “theperson in default is in arrears in respect of any such sums as are referredto in subsection (1A) below, the goods and effects may not be so taken unlesson demand made by the collector”, and

for the words “the tax so in arrear” onwards there shall besubstituted the words “such sums as have fallen due at or before the dateof poinding or, as the case may be, other diligence or assignation.”

for the words from the beginning to “the tax claimed shall” thereshall be substituted the words “If the sums referred to in subsection (1)above are not paid within ten days of the date of the demand referred to inthat subsection, the sums shall”, and

for the words “proceeding at his instance” there shall be substitutedthe word “proceedings”.

in subsection (2), for the words “it were” onwards there shall besubstituted the words “there had been no appeal.”,

in subsection (6), for paragraphs (a) and (b) there shall besubstituted—and

for subsection (9) there shall be substituted—

there is in any accounting period of a company (in this section referredto as “the later period”) an amount of surplus advance corporationtax, as defined in subsection (3) of section 239 of the Taxes Act 1988, and

pursuant to a claim under the said subsection (3), the whole or any partof that amount is treated for the purposes of the said section 239 asdischarging liability for an amount of corporation tax for an earlieraccounting period (in this section referred to as “the earlier period”), and

if the claim under the said subsection (3) had not been made—

subsection (1) above shall have effect where the claim under 240 of theTaxes Act 1988 is made on or after 14th March 1989, and

subsections (2) to (5) above shall have effect where the claim undersection 239(3) of that Act is made on or after that date,

section 86(6) (remission of interest payable on overdue income tax,capital gains tax or corporation tax where interest would not exceed£30), and

section 87(4) (no interest payable on overdue advance corporation tax orincome tax on company payments where interest would not exceed £30),

[section 283(1) of the Taxation of Chargeable Gains Act 1992] (norepayment supplement where overdue repayment of capital gains tax less than£25), and

section 824(1)(a) and (b) and (5) of the Taxes Act 1988 (no repaymentsupplement where overdue repayment of income tax etc. less than £25),

in relation to income tax under Schedule E, where the demand for the taxis made on or after the appointed day, and

in any other case, where the tax is charged by an assessment notice ofwhich is issued on or after the appointed day.

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section 96(1) of that Act (incorrect return etc. for corporation tax),

for the word “Where” there shall be substituted the words “Subject to section 98A below, where”, and

for the words “subsection (3)” onwards there shall be substituted the words

for the word “Where” there shall be substituted the words “Subject to section 98A below, where”, and

for the words “ £250, or, in the case of fraud, £500”there shall be substituted “ £3,000”.

in the first column, in the entry relating to Part III of the Taxes Management Act 1970, the words “, except sections 16 and 24(2)” shall be omitted;

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the entry relating to section 481(5)(k) of that Act shall be omitted from the first column and an entry relating to section 482(2) of that Act shall be inserted at the appropriate place in the second column.

any failure to comply with a notice or to furnish information, give a certificate or produce a document or record beginning on or after the day on which this Act is passed, and

the furnishing, giving, producing or making of any incorrect information, certificate, document, record or declaration on or after that day.

in subsection (1), for the words “awarded against him a penalty incurredby” there shall be substituted the words “a penalty imposed on”,

in subsection (2), for the word “award” in the first place where itoccurs there shall be substituted the word “penalty” and for that wordin the second place where it occurs there shall be substituted the word “imposition”, and

in subsection (4), for the words “award against” there shall besubstituted the words “imposition on” and for the word “award” thereshall be substituted the word “penalty”.

the following paragraph shall be substituted for paragraph (a) ofsubsection (1)—,

in paragraph (b) of subsection (2), for the words “sum” onwards thereshall be substituted the words “tax due from him”, and

after that paragraph there shall be inserted the words

the following subsection shall be inserted after subsection (1C)—and

in subsection (3)—

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section 658(5) of that Act (maximum penalty for false statements or representations relating to purchased life annuities),

the words “or, where it is land, of a body mentioned in section24A” shall be inserted at the end of paragraph (b), and

after “24(3) and (4),” there shall be inserted “24A(3),”.

the heading “Policy of Life Insurance” in Schedule 1 tothe Stamp Act 1891, or

paragraph (3) of the heading “Bond, Covenant, or Instrument of any kindwhatsoever” in that Schedule (superannuation annuities).

circumstances would (apart from the regulations) give rise to a charge to stamp duty under Part I of Schedule 13 to the Finance Act 1999 (conveyance or transfer on sale) and to a charge to stamp duty reserve tax,

the circumstances involve a stock exchange nominee, and

the circumstances are such as are prescribed,

“prescribed” means prescribed by the regulations, and

“stock exchange nominee” means a person designated for the purposes of section 127 of the Finance Act 1976 as a nominee of The Stock Exchange by an order made by the Secretary of State under subsection (5) of that section.

circumstances would (apart from the regulations) give rise to two charges to stamp duty reserve tax,

the circumstances involve a stock exchange nominee, and

the circumstances are such as are prescribed,

circumstances would (apart from the regulations) give rise to a charge to stamp duty reserve tax and a charge to stamp duty,

the circumstances involve a stock exchange nominee, and

the circumstances are such as are prescribed,

“prescribed” means prescribed by the regulations, and

“stock exchange nominee” means a person designated for the purposes of section 127 of the Finance Act 1976 as a nominee of The Stock Exchange by an order made by the Secretary of State under subsection (5) of that section.

provision that notice which the regulations require to be given to the Commissioners of Inland Revenue shall be given in a manner or form specified by the Commissioners;

provision that information which the regulations require to be supplied to the Commissioners shall be supplied in a manner or form specified by the Commissioners.

section 15A of the Stamp Act 1891;

section 8(9) of the Finance Act 1894,

section 18 of the Finance Act 1896,

section 61(5) of the Finance (1909-10) Act 1910,

section 17(3) of the Law of Property Act 1925,

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sections... 86, 86A, 87, 87A, 88, 103A of the Taxes Management Act 1970,

paragraph 3 of Schedule 16A to the Finance Act 1973,

section 48(1) of the Finance Act 1975,

paragraph 6 of Schedule 1 to the Social Security Contributions and Benefits Act 1992,

section 71(8A) of the Social Security Administration Act 1992, and section 69(8A) of the Social Security Administration (Northern Ireland) Act 1992, as they have effect in any case where the overpayment was made in respect of working families’ tax credit or disabled person’s tax credit;

paragraphs 15 and 16 of Schedule 2, and paragraph 8 of Schedule 5, to the Oil Taxation Act 1975,

section 283 of the Taxation of Chargeable Gains Act 1992;

paragraph 59 of Schedule 8 to the Development Land Tax Act 1976,

sections 233 , 235(1) and 236(3) and (4) of the Inheritance Tax Act 1984,

section 92 of the Finance Act 1986, and

sections . . . ... 824, 825 and 826 of, and paragraph 6B of Schedule 3 to and paragraph 3 of Schedule 19A to, the Taxes Act 1988. and

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section 14(4) of the Ports Act 1991.

paragraph 8 of Schedule 4 to the Tax Credits Act 1999.,...

section 110 of the Finance Act 1999.

paragraph 8 of Schedule 1 to the Employment Act 2002.

paragraph 8 of Schedule I to the Employment (Northern Ireland) Order 2002., and

Chapter 7 of Part 3 of the Income Tax (Earnings and Pensions) Act 2003.

sections 87, 88 and 89 of the Finance Act 2003, ...

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sections 67 and 68 of the Finance Act 2020.

paragraphs 33 and 33A of Schedule 14 to the Finance(No.2) Act 2023.

paragraphs 33 and 33A of Schedule 14 to the Finance (No.2) Act 2023, as applied in relation to domestic top-up tax by paragraph 4 of Schedule 18 to that Act.

make different provision for different enactments or for different purposes of the same enactment,

either themselves specify a rate of interest for the purposes of an enactment or make provision for any such rate to be determined by reference to such rate or the average of such rates as may be referred to in the regulations,

provide for rates to be reduced below, or increased above, what they otherwise would be by specified amounts or by reference to specified formulae,

provide for rates arrived at by reference to averages to be rounded up or down,

provide for circumstances in which alteration of a rate of interest is or is not to take place, and

provide that rates or alterations of rates are to have effect for periods beginning on or after a day determined in accordance with the regulations in relation to interest running from before that day as well as from or from after that day.

for the words from “rate” to “annum” in—

for the words“ prescribed rate” in—

for the words “rate which” onwards in—

for the words “rate applicable under subsection (2) below” in section233(1) of the Inheritance Tax Act 1984,

for the words “rate for the time being applicable under section233(2)(b) above” in subsection (3), and the words “rate for the timebeing applicable under section 233(2)(a) above” in subsection (4), ofsection 236 of that Act,

for the words “appropriate rate” in section 92(2) of the Finance Act 1986, and

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paragraph 16 of Schedule 2 to the Oil Taxation Act1975,

section 105(7) of the Finance Act 1980,

paragraph 13(4) and (5) of Schedule 16 to the FinanceAct 1981, and

paragraph 10(4) of Schedule 19 to the Finance Act1982,

to tax or duty in the case of any identifiable person,

to a tax credit in respect of any identifiable person,

to a child trust fund of any identifiable person,

to contributions payable by or in respect of any identifiable person, or

to statutory sick pay, statutory maternity pay, statutory paternity pay, statutory adoption pay , statutory shared parental pay, statutory parental bereavement pay or statutory neonatal care pay in respect of any identifiable person.

of the Commissioners, the Board and their officers,

of any person carrying out the administrative work of the First-tier Tribunal or Upper Tribunal, and

of any other person providing, or employed in the provision of, services to any person mentioned in paragraph (a) or (b) above.

of the Board,

of any person carrying out the administrative work of the the First-tier Tribunal or Upper Tribunal, and

of any other person providing, or employed in the provision of, services to the Board or to any person mentioned in paragraph (b) above.

of the Board and their officers,

of any person carrying out the administrative work of the First-tier Tribunal or an appeal tribunal constituted under Chapter 1 of Part 2 of the Social Security (Northern Ireland) Order 1998, or

of any person providing, or employed in the provision of, services to the Board or any person mentioned in paragraph (b) above.

the functions relating to contributions, child benefit, guardian’s allowance, statutory sick pay, statutory maternity pay, statutory paternity pay, statutory adoption pay , statutory shared parental pay, statutory parental bereavement pay or statutory neonatal care pay—

the functions under Part III of the Pension Schemes Act 1993 or Part III of the Pension Schemes (Northern Ireland) Act 1993 of the Board and their officers and any other person providing, or employed in the provision of, services to the Board or their officers.

he holds or has held in the exercise of functions—

is, or is derived from, information which was held by any person in the exercise of tax functions , tax credit functions , child trust fund functions or social security functions, and

is information about any matter relevant, for the purposes of tax functions, tax credit functions , child trust fund functions or social security functions—

with lawful authority,

with the consent of any person in whose case the information is about a matter relevant to tax or duty , to a tax credit or to a child trust fund or to contributions, statutory sick pay, statutory maternity pay, statutory paternity pay, statutory adoption pay , statutory shared parental pay, statutory parental bereavement pay or statutory neonatal care pay, or

which has been lawfully made available to the public before the disclosure is made.

by a Crown servant in accordance with his official duty,

by any other person for the purposes of the function in the exercise of which he holds the information and without contravening any restriction dulyimposed by the person responsible,

to, or in accordance with an authorisation duly given by, the person responsible,

in pursuance of any enactment or of any order of a court, or

in connection with the institution of or otherwise for the purposes of any proceedings relating to any matter within the general responsibility of the Commissioners or, as the case requires, the Board,

he believed that he had lawful authority to make the disclosure in question and had no reasonable cause to believe otherwise, or

he believed that the information in question had been lawfully made available to the public before the disclosure was made and had no reasonablecause to believe otherwise.

on conviction on indictment, to imprisonment for a term not exceeding two years or a fine or both, and

on summary conviction, to imprisonment for a term not exceeding six months or a fine not exceeding the statutory maximum or both.

by the Commissioners or the Board, as the case requires, or

by or with the consent of the Director of Public Prosecutions or, in Northern Ireland, the Director of Public Prosecutions for Northern Ireland.

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references to the Parliamentary Commissioner for Administration include the Health Service Commissioner for England... , ... the Assembly Ombudsman for Northern Ireland and the Northern Ireland Commissioner for Complaints.

with the consent of the person who supplied the information to the commission, or

which has been lawfully made available to the public before the disclosure is made.

on conviction on indictment, to imprisonment for a term not exceeding two years or a fine or both;

on summary conviction, to imprisonment for a term not exceeding six months or a fine not exceeding the statutory maximum or both.

by the Board, or

by or with the consent of the Director of Public Prosecutions or, in Northern Ireland, the Director of Public Prosecutions for Northern Ireland.

the following paragraph shall be inserted after paragraph (b) ofsubsection (1)—and

the following subsection shall be inserted after that subsection—

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For Group 8 (construction of buildings etc.) of Schedule 5 (zero-rating)to the Value Added Tax Act 1983 there shall besubstituted—

In Group 11 (caravans and houseboats) of that Schedule, for paragraph (b)of the Note there shall be substituted—

The following section shall be substituted for section 21 (refund of taxto person constructing dwelling) of the Value Added Tax Act 1983—

In section 42 (adjustment of consideration on changes in tax) of the Value Added Tax Act 1983—

the following subsection shall be inserted after subsection (1)—, and

in subsection (2), the words “(including a change attributable tothe making of an election under paragraph 2 of Schedule 6A to thisAct)” shall be added at the end.

In section 45(4) (orders etc.) of the Value Added TaxAct 1983, there shall be added after paragraph (c)—

In section 48 (interpretation) of the Value Added Tax Act 1983, after thedefinition of “Commissioners” there shall be inserted—.

In Schedule 1 (registration) to the Value Added Tax Act 1983—

in paragraph 1 there shall be added at the end—, and

in paragraph 2 there shall be added at the end—

In Schedule 2 (supplies of goods and services) to the Value Added Tax Act1983—

in paragraph 4, for the word “granting” there shall be substitutedthe word “grant”,

in paragraph 5(1), for the words “the goods” there shall besubstituted the word “goods”, and

there shall be added at the end—

that Group shall have effect as if the Notes to it included a Note in thesame terms as Note (1) to that Group as it had effect before the substitutionmade by paragraph 1 above, and

Group 8A of that Schedule shall have effect as if the Notes to it includeda Note in the same terms as Note (5) to that Group as it had effect before theamendments made by paragraph 2 above.

it is made in pursuance of a legally binding obligation to make it whichwas incurred before 21st June 1988, and

if the Commissioners so require (whether before or after it is made), itis proved to their satisfaction by the production of documents made beforethat date that it is so made.

the grant or assignment takes place before 21st June 1993,

the person making the grant or assignment was under a legally bindingobligation incurred before 21st June 1988 to construct (or reconstruct) thebuilding or to construct any development of which it forms part (other thanan obligation to receive services or goods in the course of the constructionor reconstruction),

if the Commissioners so require (whether before or after the grant orassignment is made), it is proved to their satisfaction by the production ofdocuments made before that date that he was under that obligation, and

planning permission for the construction (or reconstruction) of thebuilding was granted before 21st June 1988.

if a premium is payable, sub-paragraph (1) or (2) above shall apply onlyto the extent that it is made for consideration in the form of the premium;and

if a premium is not payable, sub-paragraph (1) or (2) above shall applyonly to the extent that it is made for consideration in the form of the firstpayment of rent due under the tenancy or lease.

the supply takes place before 21st June 1993,

the supply is made to the person constructing the building or work (orreconstructing the building),

that person was under a legally binding obligation incurred before21st June 1988 to construct the building or work (or to reconstruct thebuilding) or to construct any development of which it forms part (other thanan obligation to receive services or goods in the course of the constructionor reconstruction),

if the Commissioners so require (whether before or after the supply ismade), it is proved to their satisfaction by the production of documents madebefore that date that he was under that obligation,

planning permission for the construction of the building or work (or thereconstruction of the building) was granted before 21st June 1988, and

before the supply takes place the person constructing the building or work(or reconstructing the building) has given to the person making the supply acertificate in such form as may be specified in a notice published by theCommissioners stating that the supply is zero-rated (in whole or to the extentspecified in the certificate) by virtue of this sub-paragraph.

in relation to a person who has constructed a building if he incurredbefore 21st June 1988 a legally binding obligation to make a grant orassignment of a major interest in, or in any part of, the building or itssite;

in relation to a building or work if there was incurred before that datea legally binding obligation to make in relation to the building or work asupply within item 2 of Group 8 of Schedule 5 to the Value Added Tax Act 1983;

in relation to a person who has constructed a building if—except where that person does not make a grant or assignment of a majorinterest in, or in any part of, the building or its site before 21st June1993.

The Taxes Act 1988 shall be amended in accordance with the followingprovisions of this Schedule.

After section 177 there shall be inserted—

At the end of section 179 (recovery of tax) there shall be added—

At the end of section 180 (annual returns) there shall be added—

At the end of section 181 (information) there shall be added—

the following provisions shall be omitted—section 175(3); in section 176(1), the words “(but not more than six months)”; section 178(2)(b); in paragraph 13(1) of Schedule 8, the word “fixed”; paragraph 13(3) of that Schedule; paragraph 14(7) of that Schedule.

in paragraph 13 of Schedule 8—

in paragraph 14(5) of that Schedule, for the words “must be” onwardsthere shall be substituted the words “must not exceed the profits in theperiod of 12 months immediately preceding the first or only profit period towhich the scheme relates”.

At the end of paragraph 13 of Schedule 8 (calculation of distributablepool by method A) there shall be added—

In paragraph 14 of Schedule 8 (calculation of distributable pool by methodB), in sub-paragraph (5) the words “specified in, or” shall be omitted.

At the end of paragraph 14 of Schedule 8 there shall be added—

After paragraph 20 of Schedule 8 there shall be inserted—

A trust is a qualifying employee share ownership trust at the time it isestablished if the conditions set out in paragraphs 2 to 11 below aresatisfied in relation to the trust at that time.

appoint the initial trustees;

contain rules for the retirement and removal of trustees;

contain rules for the appointment of replacement and additional trustees.

the number of trustees must not be less than three;

all the trustees must be resident in the United Kingdom;

the trustees must include one person who is a trust corporation, asolicitor, or a member of such other professional body as the Board may fromtime to time allow for the purposes of this paragraph;

most of the trustees must be persons who are not and have never beendirectors of any company which falls within the founding company’s group atthe relevant time;

most of the trustees must be persons who are employees of companies whichfall within the founding company’s group at the relevant time, and who do nothave and have never had a material interest in any such company;

the trustees falling within paragraph (e) above must, before beingappointed as trustees, have been selected by a majority of the employees ofthe companies falling within the founding company’s group at the time of theselection or by persons elected to represent those employees.

it is the founding company, or

it is at that time resident in the United Kingdom and controlled by thefounding company.

Where a trust is established after the day on which the Finance Act 1994 was passed, the trust deed must make provision as mentioned in one of paragraphs (a) to (c) below—

provision for the establishment of a body of trustees and complying with paragraph 3(2) to (4) above;

provision for the establishment of a body of trustees and complying with paragraph 3B(2) to (9) below;

provision that at any time while the trust subsists there must be a single trustee.

appoint the initial trustees;

contain rules for the retirement and removal of trustees;

contain rules for the appointment of replacement and additional trustees.

the number of trustees is not less than three;

all the trustees are resident in the United Kingdom;

the trustees include at least one person who is a professional trustee and at least two persons who are non-professional trustees;

at least half of the non-professional trustees were, before being appointed as trustees, selected in accordance with sub-paragraph (7) or (8) below;

all the trustees so selected are persons who are employees of companies which fall within the founding company’s group at the relevant time, and who do not have and have never had a material interest in any such company.

the trustee is then a trust corporation, a solicitor, or a member of such other professional body as the Board may at that time allow for the purposes of this sub-paragraph,

the trustee is not then an employee or director of any company then falling within the founding company’s group, and

the trustee meets the requirements of sub-paragraph (6) below;

he was appointed as an initial trustee and, before being appointed as trustee, was selected by (and only by) the persons who later became the non-professional initial trustees, or

he was appointed as a replacement or additional trustee and, before being appointed as trustee, was selected by (and only by) the persons who were the non-professional trustees at the time of the selection.

all the persons who are employees of the companies which fall within the founding company’s group at the time of the selection, and who do not have and have never had a material interest in any such company, are (so far as is reasonably practicable) given the opportunity to stand for selection,

all the employees of the companies falling within the founding company’s group at the time of the selection are (so far as is reasonably practicable) given the opportunity to vote, and

persons gaining more votes are preferred to those gaining less.

it is at that time resident in the United Kingdom, and

it is the founding company or it is at that time controlled by the founding company.

be so framed that at any time while the trust subsists the trustee is a company which at that time is resident in the United Kingdom and controlled by the founding company;

appoint the initial trustee;

contain rules for the removal of any trustee and for the appointment of a replacement trustee.

the number of directors is not less than three;

all the directors are resident in the United Kingdom;

the directors include at least one person who is a professional director and at least two persons who are non-professional directors;

at least half of the non-professional directors were, before being appointed as directors, selected in accordance with sub-paragraph (7) or (8) below;

all the directors so selected are persons who are employees of companies which fall within the founding company’s group at the relevant time, and who do not have and have never had a material interest in any such company.

the director is then a solicitor or a member of such other professional body as the Board may at that time allow for the purposes of this sub-paragraph,

the director is not then an employee of any company then falling within the founding company’s group,

the director is not then a director of any such company (other than the trust company), and

the director meets the requirements of sub-paragraph (6) below;

he was appointed as an initial director and, before being appointed as director, was selected by (and only by) the persons who later became the non-professional initial directors, or

he was appointed as a replacement or additional director and, before being appointed as director, was selected by (and only by) the persons who were the non-professional directors at the time of the selection.

all the persons who are employees of the companies which fall within the founding company’s group at the time of the selection, and who do not have and have never had a material interest in any such company, are (so far as is reasonably practicable) given the opportunity to stand for selection,

all the employees of the companies falling within the founding company’s group at the time of the selection are (so far as is reasonably practicable) given the opportunity to vote, and

persons gaining more votes are preferred to those gaining less.

it is at that time resident in the United Kingdom, and

it is the founding company or it is at that time controlled by the founding company.

he is at the relevant time an employee or director of a company which atthat time falls within the founding company’s group,

at each given time in a qualifying period he was an employee or directorof a company falling within the founding company’s group at that given time,and

in the case of a director, at that given time he worked as a director of the companyconcerned at the rate of at least 20 hours a week (ignoring such matters asholidays and sickness).

which was established by a company within the founding company’s group, and

which is approved under Schedule 3 to the Income Tax (Earnings and Pensions) Act 2003.

he has at each given time in a qualifying period been an employee ordirector of a company falling within the founding company’s group at thatgiven time,

he has ceased to be an employee or director of the company or the companyhas ceased to fall within that group, and

at the relevant time a period of not more than eighteen months has elapsedsince he so ceased or the company so ceased (as the case may be).

there is no person who is a beneficiary within any rule which is includedin the deed and conforms with sub-paragraph (2) , (2A) or (3) above, and

the trust is in consequence being wound up.

whose length is . . . not more than five years,

whose length is specified in the trust deed, and

which ends with the relevant time (within the meaning of thatsub-paragraph).

whose length is equal to that of the period specified in the trust deedfor the purposes of a rule which conforms with sub-paragraph (2) above, and

which ends when the person or company (as the case may be) ceased asmentioned in sub-paragraph (3)(b) above.

at that time he has a material interest in the founding company, or

at any time in the period of one year preceding the relevant time he hashad a material interest in that company.

it is at that time resident in the United Kingdom, and

it is the founding company or it is at that time controlled by thefounding company.

to receive sums from the founding company and other sums (by way of loanor otherwise);

to acquire securities;

to transfer securities or sums (or both) to persons who are beneficiariesunder the terms of the trust deed;

to grant rights to acquire shares to persons who are beneficiaries under the terms of the trust deed;

to transfer securities to the trustees of profit sharing schemes approvedunder Schedule 9 to the Taxes Act 1988, for a price not less than the pricethe securities might reasonably be expected to fetch on a sale in the openmarket;

pending transfer, to retain the securities and to manage them (whether byexercising voting rights or otherwise).

must be expended within the relevant period,

may be expended only for one or more of the qualifying purposes, and

must, while it is retained by them, be kept as cash or be kept in anaccount with a bank or building society.

in a case where the sum is received from the founding company, or acompany which is controlled by that company at the time the sum is received,the day following the end of the period of account in which the sum is chargedas an expense of the company from which it is received;

in any other case, the day the sum is received.

the acquisition of shares in the founding company;

the repayment of sums borrowed;

the payment of interest on sums borrowed;

the payment of any sum to a person who is a beneficiary under the termsof the trust deed;

the meeting of expenses.

form part of the ordinary share capital of the company,

are fully paid up,

are not redeemable, and

are not subject to any restrictions other than restrictions which attachto all shares of the same class or a restriction authorised by sub-paragraph(2) below.

it is imposed by the founding company’s articles of association,

it requires all shares held by directors or employees of the foundingcompany, or of any other company which it controls for the time being, to bedisposed of on ceasing to be so held, and

it requires all shares acquired, in pursuance of rights or interestsobtained by such directors or employees, by persons who are not (or haveceased to be) such directors or employees to be disposed of when they areacquired.

any disposal required by the restriction will be by way of sale for aconsideration in money on terms specified in the articles of association, and

the articles also contain general provisions by virtue of which any persondisposing of shares of the same class (whether or not held or acquired asmentioned in sub-paragraph (2) above) may be required to sell them on termswhich are the same as those mentioned in paragraph (a) above.

The trust deed may provide that the trustees may acquire securities otherthan shares in the founding company—

if they are securities issued to the trustees in exchange in circumstancesmentioned in section [135(1) of the Taxation of Chargeable Gains Act1992], or

if they are securities acquired by the trustees as a result of areorganisation, and the original shares the securities represent are sharesin the founding company (construing “reorganisation” and “originalshares” in accordance with section 126 of that Act).

where the trustees transfer securities to a beneficiary, they must do soon qualifying terms;

the trustees must transfer securities before the expiry of the qualifying period beginning with the date on which they acquired them.

all the securities transferred at the same time other than those transferred on a transfer such as is mentioned in sub-paragraph (2ZA) below are transferred on similarterms,

securities have been offered to all the persons who are beneficiariesunder the terms of the trust deed by virtue of a rule which conforms with paragraph 4(2), (3) or (4) above when the transfer is made, and

securities are transferred to all such persons who have accepted.

it is made to a person exercising a right to acquire shares, and

that right was obtained in accordance with the provisions of an SAYE option scheme—

that right is being exercised in accordance with the provisions of that scheme, and

the consideration for the transfer is payable to the trustees.

seven years, in the case of trusts established on or before the day on which the Finance Act 1994 was passed;

twenty years, in the case of other trusts.

The trust deed must not contain features which are not essential orreasonably incidental to the purpose of acquiring sums and securities, granting rights to acquire shares to persons who are eligible to participate in SAYE option schemes approved under Schedule 3 to the Income Tax (Earnings and Pensions) Act 2003, transferring shares to such persons, transferring sums and securities to employees and directors, and transferringsecurities to the trustees of profit sharing schemes approved under Schedule 9 to the Taxes Act 1988.

acquire securities when they become entitled to them;

transfer securities to another person when that other becomes entitled tothem;

retain securities if they remain entitled to them.

if securities are issued to the trustees in exchange in circumstancesmentioned in section [135(1) of the Taxation of Chargeable Gains Act 1992], they shall be treated as having acquired them when they became entitledto the securities for which they are exchanged;

if the trustees become entitled to securities as a result of areorganisation, they shall be treated as having acquired them when they becameentitled to the original shares which those securities represent (construing “reorganisation” and “original shares” in accordance with section [126] of that Act).

if the trustees agree to take a transfer of securities, for the purposesof the deed they become entitled to them when the agreement is made and noton a later transfer made pursuant to the agreement;

if the trustees agree to transfer securities to another person, for thepurposes of the deed the other person becomes entitled to them when theagreement is made and not on a later transfer made pursuant to the agreement.

A trust which was at the time it was established a qualifying employeeshare ownership trust shall continue to be one, except that it shall not besuch a trust at any time when the requirements mentioned in paragraph 3(3)(a)to (f) above are not satisfied. This paragraph applies in relation to trusts established on or before the day on which the Finance Act 1994 was passed.

there is not a single trustee,

the trustee is not a company which is resident in the United Kingdom and controlled by the founding company, or

the conditions mentioned in paragraph 3C(4)(a) to (e) above are not satisfied as regards the directors of the trustee.

A trust is an employee share ownership trust at a particular time (therelevant time) if it was a qualifying employee share ownership trust at thetime it was established; and it is immaterial whether or not it is aqualifying employee share ownership trust at the relevant time.

For the purposes of this Schedule the following are securities—

shares;

debentures.

For the purposes of this Schedule, the question whether one company is controlled by another shall be construed in accordance with section 995 of the Income Tax Act 2007.

is the beneficial owner of, or able (directly or through the medium of other companies or by any other indirect means) to control, more than 5 percent. of the ordinary share capital of the company, or

possesses, or is entitled to acquire, such rights as would, in the event of the winding-up of the company or in any other circumstances, give an entitlement to receive more than 5 per cent. of the assets which would then be available for distribution among the participators.

“associate” has the meaning given by section 448 of the Corporation Tax Act 2010, but subject to sub-paragraph (3) below,

“control” has the meaning given by section 995 of the Income Tax Act 2007, and

“participator” has the meaning given by section 454 of the Corporation Tax Act 2010.

he, either on his own or with any one or more of his associates, or

any associate of his, with or without other such associates,

For the purposes of this Schedule a trust is established when the deed under which it is established is executed.

For the purposes of this Schedule “SAYE option scheme” has the same meaning as in the SAYE code (see section 516 of the Income Tax (Earnings and Pensions) Act 2003 (approved SAYE option schemes)).

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Schedule 4 to the Taxes Act 1988 (deep discount securities) shall beamended as mentioned in the following provisions of this Schedule.

The following sub-paragraph shall be inserted after paragraph 4(7)—

In paragraph 11(1) after the words “deep discount security” thereshall be inserted the words “issued by a company”.

The following paragraph shall be inserted after paragraph 11—

The following sub-paragraph shall be inserted after paragraph 13(2)—

The following shall be inserted after paragraph 14—

the event occasioning redemption is such that, if it occurred and there was no provision for redemption, the interests of the person holding the security at the time of the occurrence might be adversely affected,

the event occasioning redemption is neither certain nor likely to occur,

the event occasioning redemption is not one of a number of events occasioning or allowing redemption before maturity at least one of which is certain or likely to occur, and

the obtaining of a tax advantage by any person is not the main benefit, or one of the main benefits, that might be expected to accrue from the provision for redemption.

the security is one which under the terms of issue can be converted into or exchanged for a security of a different kind, and

it falls to be decided whether the condition set out in paragraph (b) or (c) of sub-paragraph (3B) above is fulfilled,

the event allowing the option to be exercised is such that, if it occurred and there was no provision for redemption, the interests of the person holding the security at the time of the occurrence might be adversely affected,

the event allowing the option to be exercised is neither certain nor likely to occur,

the event allowing the option to be exercised is not one of a number of events occasioning or allowing redemption before maturity at least one of which is certain or likely to occur, and

the obtaining of a tax advantage by any person is not the main benefit, or one of the main benefits, that might be expected to accrue from the provision for redemption.

the security is one which under the terms of issue can be converted into or exchanged for a security of a different kind, and

it falls to be decided whether the condition set out in paragraph (b) or (c) of sub-paragraph (3E) above is fulfilled,

is not a deep discount security (either because the amount payable onredemption is not known at issue or for some other reason),

is not a share in a company,

is not a qualifying indexed security,

is not a convertible security, and

does not fall within sub-paragraph (5), (6) or (7) below.

it was issued before 14th March 1989, or

it was issued on or after that date but was issued under the sameprospectus as any gilt-edged security issued before that date.

it was issued under a prospectus under which no securities were issuedbefore 14th March 1989,

it was issued otherwise than on the occasion of the original issue underthe prospectus, and

all the securities issued on the occasion of the original issue under theprospectus are gilt-edged securities which are not deep gain securities.

a deep discount security is a security which is a deep discount securityfor the purposes of Schedule 4 to the Taxes Act 1988,

“qualifying indexed security” has the meaning given byparagraph 2 below, and

a gilt-edged security is a security which is a gilt-edged security for thepurposes of the Taxation of Chargeable Gains Act 1992 .

15 per cent. of the amount so payable, or

half Y per cent. of the amount so payable, where Y is the number ofcomplete years between the date of issue and the redemption date.

the security is denominated in sterling and under the terms of issue theamount payable on redemption is determined by reference to the movement of theretail prices index,

the security is denominated in a currency other than sterling and underthe terms of issue the amount payable on redemption is determined by referenceto any similar general index of prices which is published by the government,or by an agent of the government, of the territory in whose currency thesecurity is denominated, or

the security was quoted in the official list of arecognised stock exchange at the time it was issued, and under the terms of issue the amount payable on redemption isdetermined by reference to the movement of a published index of prices ofshares quoted in the official list of a recognised stock exchange.

interest is payable on the security,

not more than one year can elapse between the day of issue and the firstday on which interest becomes payable, or between any day on which interestbecomes payable and the next day on which it becomes payable,

the interest payable is determined by reference to a rate which is notless than a reasonable commercial rate (judged by reference to the date ofissue and by reference to securities of a similar nature to the one inquestion), and

the interest payable is also determined by reference to the movement ofthe index by reference to which the amount payable on redemption isdetermined.

the security is expressed to be issued for a definite period stated on theface of the security, and

the period so stated commences with the day of issue and is five years ormore.

the security to be repurchased by the person who issued it;

the security to be purchased by a person other than the person who issuedit;

the security to be converted into another kind of security;

the security to be redeemed in circumstances other than any of thequalifying circumstances (set out in sub-paragraph (13) below).

contain no provision for the security to be repurchased by the person whoissued it, converted into another kind of security, or redeemed, before theexpiry of a period which commences with the day of issue and which is fiveyears or more, and

contain no provision enabling the person who holds the security for thetime being to require the security to be purchased, by a person other than theperson who issued it, before the expiry of a period which commences with theday of issue and which is five years or more.

under the terms of issue the notional period must start not more thaneight months before the actual period starts and must end not more than eightmonths before the actual period ends, and

where the index is applied for the notional period it must, under theterms of issue, be applied precisely and without restriction.

the security was issued before 9th June 1989, and

the amount stated does not constitute a deep gain (within the meaninggiven by paragraph 1(9) above).

the terms of issue contain provision for the amount payable on redemptionin any of the qualifying circumstances (set out in sub-paragraph (13) below)to be not less than an amount stated in the terms, and

the security was issued before 9th June 1989,

the terms of issue contain provision for the amount payable on redemptionin any of the qualifying circumstances (set out in sub-paragraph (13) below)to be not more than the issue price, and

the security was issued on or after 9th June 1989,

there is a fundamental change in the rules governing the index and thechange would be detrimental to the interests of the person who holds thesecurity for the time being;

the index ceases to be published without being replaced by a comparableindex;

in the case of a security issued before 13th November 1991, any circumstances except circumstances in which the person who holds the security for the time being exercises an option exercisable only on the effluxion of time or the happening of an event which (judged at the time of the security’s issue) is certain or likely to occur;

in the case of a security issued on or after 13th November 1991, any circumstances for redemption which may be made before maturity otherwise than at the option of the person who holds the security for the time being and as regards which the conditions set out in paragraph 1(3B) above are fulfilled (judged at the time of the security’s issue and read subject to paragraph 1(3C) and (3D) above);

in the case of a security issued on or after 13th November 1991, any circumstances for redemption which may be made before maturity at the option of the person who holds the security for the time being and as regards which the conditions set out in paragraph 1(3E) above are fulfilled (judged at the time of the security’s issue and read subject to paragraph 1(3F) and (3G) above).

it was issued by a company before 9th June 1989,

under the terms of issue it can be converted into or exchanged for sharecapital in a company (whether or not the company is the one which issued thesecurity), and

the condition set out in sub-paragraph (2) below is fulfilled.

at some time in the qualifying period the security was quoted in theofficial list of a recognised stock exchange,

at some time in that period relevant share capital was so quoted, or

each of paragraphs (a) and (b) above is satisfied (though not necessarilyas regards the same time).

securities (old securities) of a particular kind are issued by way of the original issue of securities of that kind,

on a later occasion securities (new securities) of the same kind are issued,

a sum (the extra return) is payable in respect of each new security, by the person issuing it, to reflect the fact that interest is accruing on the old securities,

the issue price of each new security includes an element (whether or not separately identified) representing payment for the extra return, and

the extra return is equal to the amount of interest payable for the relevant period on each old security.