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:—
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:—
Customs and Excise and Value Added Tax
Alcoholic liquor duties
In section 36 of the Alcoholic Liquor Duties Act 1979 (beer), as that section has effect apart from section 7(1) of the Finance Act 1991, for “£1.108” there shall be substituted “ £1.163 ”.
For the Table of rates of duty in Schedule 1 to that Act (wine and made-wine) there shall be substituted the Table in Schedule 1 to this Act.
In section 62(1) of that Act (cider) for “£21.32” there shall be substituted “ £22.39 ”.
This section shall be deemed to have come into force at 6 o’clock in the evening of 16th March 1993.
In section 36(1) of the Alcoholic Liquor Duties Act 1979 (beer duty), as substituted by section 7(1) of the Finance Act 1991, for “£10.60” there shall be substituted “ £10.45 ”.
This section shall be deemed to have come into force on 1st June 1993.
In section 1 of the Alcoholic Liquor Duties Act 1979 (alcoholic liquors dutiable under that Act) in subsection (3) (beer) for “1.2 per cent.” there shall be substituted “ 0.5 per cent. ”.
This section shall apply in relation to liquor which is produced in or imported into the United Kingdom, or removed into the United Kingdom from the Isle of Man, on or after the day on which this Act is passed.
The Alcoholic Liquor Duties Act 1979 shall be amended as follows.
In subsection (2) of section 42 (drawback on exportation etc. of beer)—
paragraph (a) (drawback on removal to excise warehouse) shall be omitted,
in paragraph (b) the words “or removal to the Isle of Man” shall be omitted,
also in paragraph (b) for “any such beer” there shall be substituted “ any beer to which this section applies ”, and
for “exported, removed or shipped” there shall be substituted “ exported or shipped ”.
In subsections (3) and (4) of that section the word “remove,”, in each place where it occurs, shall be omitted.
Section 43 (warehousing of beer for exportation, etc.) shall cease to have effect.
In section 45(1) (repayment of duty on beer used in the production or manufacture of other beverages etc.)—
at the end of paragraph (a) there shall be inserted “ or ”, and
paragraph (b) shall be omitted.
Section 51 (power to require production of books by brewers for sale) shall cease to have effect.
Subsections (2)(a) and (c) and (4) to (6) above shall come into force on 1st September 1993.
Subsections (2)(b) and (d) and (3) above shall come into force on such day as the Commissioners of Customs and Excise may by order made by statutory instrument appoint.
In Part VI of the Alcoholic Liquor Duties Act 1979 the following section shall be inserted before section 67—
In subsection (5) of section 55 of that Act (exemption for certain producers of made-wine from requirement to hold excise licence) before paragraph (a) there shall be inserted the following paragraph—.
In that section—
paragraph (e) of subsection (5) and the word “and” immediately preceding that paragraph shall be omitted, and
subsection (5A) shall be omitted.
This section shall apply in relation to the blending or other mixing of alcoholic liquors on or after the day on which this Act is passed.
In subsection (1) of section 58 of the Alcoholic Liquor Duties Act 1979 (mixing of wine and spirits in excise warehouse)—
for “6 litres” there shall be substituted “ 12 litres ”,
for “except as provided by subsection (2) below” there shall be substituted “ by virtue of this section ”, and
for “23 per cent.” there shall be substituted “ 22 per cent. ”.
Subsection (2) of that section shall be omitted.
This section shall apply in relation to mixing done on or after the day on which this Act is passed.
In Schedule 1 to the Alcoholic Liquor Duties Act 1979 (rates of duty on wine and made-wine), for paragraphs 1 and 2 there shall be substituted the following paragraphs—
This section shall apply in relation to wine and made-wine which is produced in or imported into the United Kingdom, or removed into the United Kingdom from the Isle of Man, on or after the day on which this Act is passed.
Hydrocarbon oil duties
In section 6(1) of the Hydrocarbon Oil Duties Act 1979 for “£0.2779” (duty on light oil) and “£0.2285” (duty on heavy oil) there shall be substituted “ £0.3058 ” and “ £0.2514 ” respectively.
In section 11(1) of that Act (rebate on heavy oil) for “£0.0095” (fuel oil) and “£0.0135” (gas oil) there shall be substituted “ £0.0105 ” and “ £0.0149 ” respectively.
In section 13A(1) of that Act (rebate on unleaded petrol) for “£0.0437” there shall be substituted “ £0.0482 ”.
In section 14(1) of that Act (rebate on light oil for use as furnace fuel) for “£0.0095” there shall be substituted “ £0.0105 ”.
This section shall be deemed to have come into force at 6 o’clock in the evening of 16th March 1993.
The Hydrocarbon Oil Duties Act 1979 (“the 1979 Act”) shall have effect in relation to such cases as may be specified in an order made by the Treasury as if references in that Act to hydrocarbon oil or to road fuel gas included references to any energy product which is designated by that order as a substance which is to be treated for the purposes of that Act as the equivalent of hydrocarbon oil or, as the case may be, of road fuel gas.
The Treasury may by order provide, in relation to any substance which by virtue of this section is to be treated for the purposes of the 1979 Act as the equivalent of hydrocarbon oil or road fuel gas, for that substance to be treated for the purposes of such of the provisions of that Act as may be specified in the order as if it fell within such class or description of substance as may be so specified.
In exercising their powers under this section, the Treasury shall so far as practicable secure that an energy product which is intended for, or capable of being put to, a particular use is treated for the purposes of the 1979 Act as if it were the substance to which, when put to that use, it is most closely equivalent.
In this section “energy product” means a substance which—
is an energy product for the purposes of Council Directive 2003/ 96/EC restructuring the Community framework for the taxation of energy products and electricity, and
is not (apart from as a result of this section) hydrocarbon oil or road fuel gas within the meaning of the 1979 Act.
The power of the Treasury to make an order under this section shall be exercisable by statutory instrument subject to annulment in pursuance of a resolution of the House of Commons; and any such order may make different provision for different cases and different substances.
Where a duty of excise is charged on a substance under a provision of the 1979 Act by virtue of an order under this section, no duty shall be charged on the substance under any other provision of that Act.
After section 6 of the Hydrocarbon Oil Duties Act 1979 there shall be inserted the following section—
In section 22(1) of that Act (offence of using petrol substitutes on which duty has not been paid), for the words from the beginning to the word “shall”, in the first place where it occurs, there shall be substituted—.
In section 1(1)(b) of the Excise Duties (Surcharges or Rebates) Act 1979 (surcharges or rebates in respect of excise duties on hydrocarbon oil etc.), for paragraph (b) there shall be substituted the following paragraph—.
This section shall come into force on such day as the Treasury may by order made by statutory instrument appoint, and different days may be appointed under this subsection for different provisions and for different purposes.
In ascertaining for the purposes of the Hydrocarbon Oil Duties Act 1979—the volume of that liquid shall be taken (if it would not otherwise be so taken) to be what would be its volume, calculated in accordance with regulations under subsection (2) below, at a temperature of 15°C.
the amount of any duty of excise chargeable on any liquid by virtue of that Act; or
the amount of any rebate allowable on any such liquid by virtue of that Act,
The Commissioners of Customs and Excise may by regulations make such provision as they think fit as to the method by which, in ascertaining any amount mentioned in subsection (1) above—and that provision may include provision made by reference to any internationally recognised conversion tables.
the volume of any liquid is to be measured; or
the volume as at a temperature of 15°C of any amount of a liquid is to be determined;
to such amount as is shown to the satisfaction of the Commissioners of Customs and Excise to have been paid or, as the case may be, allowed in respect of that substance; or
where regulations made by those Commissioners so provide, to such amount as is calculated on such assumptions as to the volume of the substance in question as may be determined in accordance with any such regulations.
The power of the Commissioners of Customs and Excise to make regulations under this section shall be exercisable by statutory instrument subject to annulment in pursuance of a resolution of either House of Parliament; and any such regulations—
may make different provision for different cases and for different substances; and
may contain such transitional, supplemental and incidental provision as those Commissioners think fit.
Provision made under this section by any regulations may provide for any determination or measurement under the regulations to be made, or any description of a case or substance to be framed, by reference to such circumstances or other factors, or to the opinion of such persons, as the Commissioners think fit.
For the purposes of this section “liquid” does not include any substance which is gaseous at a temperature of 15°C and under a pressure of 1013.25 millibars.
In consequence of this section—
section 2(5) of that Act (measurement of heavy oil having a temperature exceeding 15°C) shall cease to have effect; and
the words “shown to the satisfaction of the Commissioners to have been” in section 15(1) of that Act (drawback) shall be omitted.
This section shall come into force on such day as the Commissioners of Customs and Excise may by order made by statutory instrument appoint, and different days may be appointed under this subsection for different provisions and for different purposes.
Tobacco products duty
For the Table in Schedule 1 to the Tobacco Products Duty Act 1979 there shall be substituted—
This section shall be deemed to have come into force at 6 o’clock in the evening of 16th March 1993.
In the Tobacco Products Duty Act 1979, section 1 (definition of tobacco products) shall be amended as follows.
In subsection (2) (definition of hand-rolling tobacco) after paragraph (a) there shall be inserted—.
In paragraph (b) of subsection (2) (more than 25 per cent. by weight of the tobacco particles have a width of less than 0.6 mm) for “0.6” there shall be substituted “ 1 ”.
The following subsection shall be inserted after subsection (2)—
In subsection (3) (power to amend definitions) after “(2)” there shall be inserted “ or (2A) ”.
Gaming machine licence duty
The Betting and Gaming Duties Act 1981 shall be amended as follows.
In section 21 (gaming machine licences) in subsection (1) (licence required for machine other than a two-penny machine) for “a two-penny machine” there shall be substituted “ an excepted machine ”.
In that section the following subsection shall be inserted after subsection (3)—
In section 22 (charge to duty)—
in subsection (1) for the words from “by reference” to the end of the subsection there shall be substituted “ in accordance with section 23 below ”;
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For subsection (4) of section 25 (meaning of “gaming machine”) there shall be substituted the following subsections—
In section 26(2) (interpretation) the following definition shall be inserted after the definition of “two-penny machine”—.
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This section shall apply in relation to licences for any period beginning on or after 1st November 1993.
Vehicles excise duty
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In Schedule 2 (annual rate of duty on hackney carriages) in the Table set out in Part II—
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Miscellaneous
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The duty
Subject to subsections (3) and (4) below, a duty of excise called “lottery duty” is chargeable—
on the taking in the United Kingdom of a ticket or chance in a lottery, and
in such cases as may be determined by regulations, on the taking outside the United Kingdom of a ticket or chance in a lottery promoted in the United Kingdom.
Regulations may make provision for determining when and where the taking of a ticket or chance in a lottery is to be treated as occurring for the purposes of this Chapter.
Lottery duty is not chargeable in respect of a lottery that constitutes a game of bingo (or any version of bingo, by whatever name called).
Lottery duty is not chargeable (in Great Britain) in respect of a lottery which is an exempt lottery within the meaning of the Gambling Act 2005 (see section 258) or is promoted under and operated in accordance with a lottery operating licence under Part 5 of that Act or (in Northern Ireland) in respect—
of a lottery promoted as an incident of an exempt entertainment within the meaning of ... the Betting, Gaming, Lotteries and Amusements (Northern Ireland) Order 1985;
of a private lottery within the meaning of that ... Order;
of a society’s lottery within the meaning of that ... Order in respect of which the conditions set out in ... Article 135(1) of that Order are satisfied;
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The Treasury may by order amend subsection (4) above so as to add to the descriptions of lottery for the time being mentioned in that subsection, so as to omit any of them or so as to substitute a different description of lottery for any of them.
The amount of the lottery duty chargeable on the taking of a ticket or chance in a lottery is equal to 12 per cent. of the value of the consideration given for the ticket or chance.
Subject to subsection (3) below, the aggregate of everything paid or given by (or debited to the account of) the person taking the ticket or chance for, on account of, or in connection with, the ticket or chance shall be taken to be the consideration given for it.
If a price is shown on a lottery ticket or any other document providing evidence of the taking of a ticket or chance in a lottery and—consideration to the value of the price shown shall be taken to be given for the ticket or chance.
the consideration given for the ticket or chance is of lesser value than the price shown (or is of no value), or
no consideration is given for the ticket or chance,
The lottery duty chargeable on the taking of a ticket or chance in a lottery becomes due and (subject to any regulations under subsection (2) below) payable at the time the ticket or chance is taken.
Regulations may provide for the payment of any lottery duty due in respect of a lottery of a description specified in the regulations to be deferred, subject to any conditions or requirements that may be imposed by or under the regulations.
Regulations may require payments (of amounts determined by or under the regulations) to be made on account of any lottery duty that may become due in respect of a lottery of a description specified in the regulations that is being or is to be promoted.
Any lottery duty or payment on account of lottery duty that under section 26 above or regulations under that section is payable in respect of a lottery shall be paid (subject to any regulations under subsection (2) below) by the promoter of the lottery.
Regulations may require any lottery duty or payment on account of lottery duty that is payable in respect of a lottery of a description specified in the regulations to be paid by a person specified in the regulations (being a person who occupies or has occupied a position of responsibility in relation to the lottery) instead of by the promoter.
Any lottery duty that is payable in respect of a lottery may be recovered jointly and severally from—
the promoter of the lottery,
any other person who occupies or has occupied a position of responsibility in relation to the lottery or who has or has had any degree of control over any of its proceeds, and
where the promoter or a person within paragraph (b) above is a body corporate, any director of that body corporate.
Where a person does not make a payment that he is required to make by subsection (1) above or regulations under subsection (2) above at the time the payment becomes payable his failure so to make the payment shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties) which shall be calculated by reference to the amount which has not been paid and shall also attract daily penalties..
Administration and enforcement
Lottery duty shall be under the care and management of the Commissioners.
Regulations may provide for any matter for which provision appears to the Commissioners to be necessary or expedient for the administration or enforcement of lottery duty or for the protection of the revenue derived from lottery duty.
Where a person contravenes or does not comply with any regulations under subsection (2) above his contravention or failure to comply shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties)..
A lottery in respect of which lottery duty is chargeable (or, on the taking of a ticket or chance, will be chargeable) shall not be promoted in the United Kingdom unless the chargeable person is registered with the Commissioners under this section.
In this section “the chargeable person”, in relation to a lottery, means—
subject to paragraph (b) below, the promoter of the lottery;
in the case of a lottery of a description specified in regulations under section 27(2) above, the other person referred to in that subsection.
Regulations may make provision—
as to the time at which an application for registration is to be made, as to the form and manner of such an application and as to the information to be contained in or provided with it,
as to the requirements that must be satisfied as a condition of a person’s registration or continued registration, and
as to other requirements that must be observed by a person while he remains registered.
The requirements imposed by virtue of subsection (3)(b) above may include requirements as to the giving of security or further security (by means of a deposit or otherwise) for any lottery duty that may become due.
Subject to regulations under subsection (3)(a) and (b) above, the Commissioners—
shall register any person applying to them for registration who satisfies them that he will be the chargeable person in relation to a lottery that is to be promoted, and
shall not remove any person from the register unless it appears to them that no lottery is being or is to be promoted in relation to which he is or will be the chargeable person.
Where—they shall not remove him from the register until the promotion of that lottery has come to an end.
the Commissioners determine that a person should be removed from the register because any requirement imposed by regulations under subsection (3)(b) above is not (or is no longer) satisfied in relation to him, and
a lottery in relation to which he is the chargeable person is being promoted at the time they make that determination,
If subsection (1) above is contravened in relation to a lottery at any time during its promotion, the chargeable person is guilty of an offence and liable—
on summary conviction, to a penalty of £20,000 or to imprisonment for a term not exceeding six months, or to both, or
on conviction on indictment, to a penalty of any amount or to imprisonment for a term not exceeding two years, or to both.
Where a person contravenes or fails to comply with any requirements imposed by regulations under subsection (3)(c) above his contravention or failure to comply shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties).
Section 1(1) of the Customs and Excise Management Act 1979 (interpretation) shall be amended in accordance with subsections (2) and (3) below.
In the definition of “the revenue trade provisions of the customs and excise Acts”—
the word “and” at the end of paragraph (b) shall be omitted, and
at the end there shall be added.
In paragraph (a) of the definition of “revenue trader”—
the word “or” at the end of sub-paragraph (i) shall be omitted,
after sub-paragraph (i) there shall be inserted—, and
in sub-paragraph (ii) after “activities” there shall be inserted “ as are mentioned in sub-paragraph (i) or (ia) above ”.
In section 117 of the Customs and Excise Management Act 1979 (execution and distress against revenue traders) after subsection (1) there shall be inserted—
A person who is knowingly concerned—is guilty of an offence.
in the fraudulent evasion (by him or another person) of lottery duty, or
in taking steps with a view to such fraudulent evasion,
A person guilty of an offence under subsection (1) above is liable—
on summary conviction, to a penalty of £20,000 or, if greater, treble the amount of the duty evaded or sought to be evaded or to imprisonment for a term not exceeding six months, or to both, or
on conviction on indictment, to a penalty of any amount or to imprisonment for a term not exceeding 14 years, or to both.
A person who in connection with lottery duty—is guilty of an offence.
makes a statement that he knows to be false in a material particular or recklessly makes a statement that is false in a material particular, or
with intent to deceive, produces or makes use of a book, account, return or other document that is false in a material particular,
A person guilty of an offence under subsection (3) above is liable—
on summary conviction, to a penalty of £20,000 or to imprisonment for a term not exceeding six months, or to both, or
on conviction on indictment, to a penalty of any amount or to imprisonment for a term not exceeding two years, or to both.
Where an offence under this Chapter is committed by a body corporate, every person who at the date of the commission of the offence is a director, manager, secretary or other similar officer of the body corporate (or is purporting to act in such a capacity) is also guilty of the offence unless—
the offence is committed without his consent or connivance, and
he has exercised all such diligence to prevent its commission as he ought to have exercised, having regard to the nature of his functions in that capacity and to all the circumstances.
In subsection (1) above “relevant lottery”—
in relation to an offence under section 31(1) above, means a lottery in respect of which lottery duty was fraudulently evaded or (as the case may be) in respect of which the fraudulent evasion of lottery duty was sought, and
in relation to an offence under section 31(3) above, means a lottery to which the false statement or (as the case may be) false document related.
Where a person takes an action in pursuance of instructions of the Commissioners given in connection with the enforcement of this Chapter or of regulations under it and, apart from this section, the person would in taking that action be committing an offence under any enactment relating to lotteries, he shall not be guilty of that offence.
A certificate of the Commissioners—is sufficient evidence of that fact until the contrary is proved.
that a person was or was not, at any date, registered under section 29 above,
that any return required by regulations under this Chapter had not been made at any date, or
that any lottery duty shown as due in a return made in pursuance of such regulations or in an estimate made under section 116A of the Customs and Excise Management Act 1979 had not been paid at any date,
A photograph of any document furnished to the Commissioners for the purposes of this Chapter and certified by them to be such a photograph is admissible in any proceedings, whether civil or criminal, to the same extent as the document itself.
Any document purporting to be a certificate under subsection (1) or (2) above shall be taken to be such a certificate until the contrary is proved.
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Notwithstanding any obligation not to disclose information that would otherwise apply, the Commissioners may disclose information—for the purpose of assisting the Secretary of State or Gambling Commission (as the case may be) in the performance of duties imposed by or under any enactment in relation to lotteries.
to the Secretary of State,
to the Gambling Commission, or
to an authorised officer of the Secretary of State or Gambling Commission,
Notwithstanding any such obligation as is mentioned in subsection (1) above—may disclose information to the Commissioners or to an authorised officer of the Commissioners for the purpose of assisting the Commissioners in the performance of duties in relation to lottery duty.
the Secretary of State,
the Gambling Commission, or
an authorised officer of the Secretary of State or Gambling Commission,
Information that has been disclosed to a person by virtue of this section shall not be disclosed by him except—
to another person to whom (instead of him) disclosure could by virtue of this section have been made, or
for the purpose of any proceedings connected with the operation of any enactment in relation to lotteries or lottery duty.
References above in this section to the Secretary of State include any person who has been designated by the Secretary of State as a person to and by whom information may be disclosed under this section.
The Secretary of State shall notify the Commissioners in writing if he designates a person under subsection (4) above.
Supplementary
Any regulations under this Chapter may make—
different provision for different cases or circumstances, and
incidental, supplemental or consequential provision.
Any power to make regulations or orders under this Chapter is exercisable by statutory instrument.
Subject to subsection (4) below, a statutory instrument containing such regulations or an order under section 24(5) above is subject to annulment in pursuance of a resolution of the House of Commons.
An order under section 24(5) above that will result in lottery duty becoming chargeable in respect of any description of lottery shall not be made unless a draft of the statutory instrument containing it has been laid before, and approved by a resolution of, the House of Commons.
In section 6 of the Betting and Gaming Duties Act 1981 (pool betting duty)—
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subsection (4) shall cease to have effect.
In this Chapter—“the Commissioners” means the Commissioners of Customs and Excise,“document” includes a document of any kind whatsoever and, in particular, a record kept by means of a computer,“promotion”, in relation to a lottery, includes the conduct of the lottery (and “promoted” is to be read accordingly), and“regulations” means regulations made by the Commissioners.
This Chapter applies in relation to lotteries promoted on behalf of the Crown in pursuance of any enactment as it applies in relation to lotteries not so promoted.
The imposition by this Chapter of lottery duty does not make lawful anything that is unlawful apart from this Chapter.
This Chapter shall come into force on such day as the Commissioners may by order appoint, and different days may be appointed for different provisions or for different purposes.
Income Tax, Corporation Tax and Capital Gains Tax
Income tax: charge, rates and allowances
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Corporation tax charge and rate
Corporation tax shall be charged for the financial year 1993 at the rate of 33 per cent.
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Interest: general
For the year 1993-94 the qualifying maximum defined in section 367(5) of the Taxes Act 1988 (limit on relief for interest on certain loans) shall be £30,000.
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In section 365 of that Act (relief on interest on loans to buy a life annuity), after subsection (1) there shall be inserted the following subsections—
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This section shall have effect in relation to payments of interest made on or after 16th March 1993 (whenever falling due).
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After subsection (6) of section 369 of the Taxes Act 1988 (recovery of amount treated as paid by recipient of interest paid subject to a deduction under that section) there shall be inserted the following subsection—
This section shall not apply in relation to any payment if the payment, or the claim on which it is made, was made before the day on which this Act is passed.
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Interest etc. on debts between associated companies
Charitable donations
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Benefits in kind
In Schedule 6 to the Taxes Act 1988 (taxation of directors and others in respect of cars) for Part I (tables of flat rate cash equivalents) there shall be substituted—
This section shall have effect for the year 1993-94.
In section 158 of the Taxes Act 1988 (car fuel) for the Tables in subsection (2) (tables of cash equivalents) there shall be substituted—
In subsection (5) of that section (reductions in cash equivalents) the words “or 3” shall be omitted.
This section shall have effect for the year 1993-94.
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Taxation of distributions etc.
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This section shall apply in relation to the year 1993-94 and subsequent years of assessment.
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Chargeable gains
For the year 1993-94 section 3 of the Taxation of Chargeable Gains Act 1992 (annual exempt amount) shall have effect as if the amount specified in subsection (2) were £5,800, and accordingly subsection (3) of that section (indexation) shall not apply for that year.
In section 3(3) of the Taxation of Chargeable Gains Act 1992 (indexation of annual exempt amount) for “December” (in each place) there shall be substituted “ September ”.
This section shall have effect for the year 1994-95 and subsequent years of assessment.
In section 117 of the Taxation of Chargeable Gains Act 1992 (meaning of qualifying corporate bond), after subsection (6) there shall be inserted the following subsection—
In section 251 of that Act (general provisions in relation to debts), after subsection (5) there shall be inserted the following subsection—
This section shall have effect in relation to any chargeable period ending on or after 16th March 1993 but, in relation to any accounting period of a company which began before 6th April 1992, this section shall have effect as if the references in this section, and in the amendments made by this section, to provisions of the Taxation of Chargeable Gains Act 1992 were references to such of the provisions of the Capital Gains Tax Act 1979 and the Finance Act 1984 as correspond to those provisions and have effect in relation to that accounting period.
After subsection (3) of section 151 of the Taxation of Chargeable Gains Act 1992 (personal equity plans) there shall be inserted the following subsection—
In section 155 of the Taxation of Chargeable Gains Act 1992 (classes of assets for the purposes of roll-over relief), after Class 5 there shall be inserted—
The Treasury may by order made by statutory instrument amend section 155 of the Taxation of Chargeable Gains Act 1992 (roll-over relief: relevant classes of assets) so as to add to or amend the classes of assets specified in that section.
But an order under subsection (2) may not restrict the assets which fall within a class listed in that section (whether by virtue of subsection (2) or otherwise).
An order under subsection (2) may make such consequential amendments of section 156ZB of, or Schedule 7AB to, the Taxation of Chargeable Gains Act 1992 as appear to the Treasury to be appropriate.
A statutory instrument containing an order under subsection (2) above shall be subject to annulment in pursuance of a resolution of the House of Commons.
Subsection (1) above shall apply where the disposal of the old assets (or an interest in them) or the acquisition of the new assets (or an interest in them) is on or after 1st January 1993; but, in relation to any accounting period of a company which began before 6th April 1992, subsection (1) above shall have effect as if the inserted class were numbered 5 and were inserted after Class 4 in section 118 of the Capital Gains Tax Act 1979.
Schedule 7 to this Act (which amends the provisions of the Taxation of Chargeable Gains Act 1992 with respect to retirement relief and makes new provision in relation to relief on the re-investment of certain gains) shall have effect.
This section and that Schedule shall have effect in relation to any disposal made on or after 16th March 1993.
After section 177 of the Taxation of Chargeable Gains Act 1992 there shall be inserted the following section—
This section and that Schedule—
shall apply for the calculation of the amount to be included in respect of chargeable gains in a company’s total profits for any accounting period ending on or after 16th March 1993; but
shall so apply only in relation to the deduction from chargeable gains accruing on or after 16th March 1993 of amounts in respect of, or of amounts carried forward in respect of—
pre-entry losses accruing before it became a member of the relevant group to a company whose membership of that group began or begins at a time on or after 1st April 1987; and
losses accruing on the disposal of any assets so far as it is by reference to such a company that the assets fall to be treated as being or having been pre-entry assets or assets incorporating a part referable to pre-entry assets.
In relation to accounting periods beginning before 6th April 1992 this section and that Schedule shall have effect as if—
the section and Schedule inserted by subsections (1) and (2) above were inserted in the Capital Gains Tax Act 1979; and
references in the Schedule so inserted to provisions of the Taxation of Chargeable Gains Act 1992 were references to such of the provisions of that Act of 1979 or of any other enactment as correspond to the provisions referred to and have effect in relation to that accounting period.
In section 179(4) of the Taxation of Chargeable Gains Act 1992 (time at which de-grouping charges accrue), for the words from “as follows” onwards there shall be substituted
This section shall have effect in relation to accounting periods ending after the day appointed for the purposes of section 180(1)(b) of that Act.
Section 212 of the Taxation of Chargeable Gains Act 1992 (annual deemed disposal by insurance companies of unit trusts) shall have effect in relation to accounting periods beginning on or after 1st January 1993; and neither that section nor section 46 of the Finance Act 1990 (which is consolidated in that section) shall have effect in relation to any earlier accounting period in relation to which either of them would have applied apart from this subsection.
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In subsection (7) of that section 212, in the words after paragraph (b) (application of definitions in the Taxes Act 1988), for “and 214” there shall be substituted “ to 214A ”.
After section 213(1) of that Act of 1992 (spreading of gains and losses), there shall be inserted the following subsection—
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Corporation tax: currency
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In Schedule 24 to the Taxes Act 1988 (assumptions for calculating chargeable profits, creditable tax and corresponding United Kingdom tax of foreign companies) the following paragraph shall be inserted after paragraph 4—
This section applies in relation to any accounting period beginning on or after the day appointed under section 165(7)(b) below.
Overseas life insurance companies
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In section 475 of that Act (tax-free Treasury securities: exclusion of interest on borrowed money), in subsection (6)—
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for the words “of the life assurance fund”, in each place where they occur, there shall be substituted the words “ attributable to basic life assurance and general annuity business ”.
This section shall apply in relation to accounting periods beginning after 31st December 1992.
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The following provisions of that Act shall cease to have effect—
section 445 (charge to tax on investment income of overseas life insurance company);
section 446(1) (qualifying distributions part of profits of pension business of overseas life insurance company);
section 447(1), (2) and (4) (set-off of income tax and tax credits against corporation tax assessed under section 445);
section 448 (qualifying distributions and tax credits);
section 449 (double taxation agreements);
section 724(5) to (8) (special provisions of accrued income scheme for overseas life insurance companies);
section 811(2)(c) (provision about deduction of foreign tax not to affect overseas life insurance company charged under section 445);
paragraph 1(9) of Schedule 19AB (payments on account of tax credits in case of pension business: special provision for overseas life insurance companies).
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Approved share option schemes
After section 149 of the Taxation of Chargeable Gains Act 1992 there shall be inserted the following section—
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In section 32A(5) of the Capital Gains Tax Act 1979 (expenditure: amounts to be included as consideration)—
for the words “section 185(6)” there shall be substituted the words “ the applicable provision ”, and
at the end there shall be inserted
The amendments made by subsection (3) above shall be deemed to have come into force on 1st January 1992 (but shall have effect subject to the repeals made by the Taxation of Chargeable Gains Act 1992).
Indexation: miscellaneous
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The Taxes Act 1988 shall be amended as mentioned in subsections (2) to (6) below.
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In section 257C—
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subsection (2) (no change required for PAYE before 18th May) shall be omitted.
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This section shall have effect for the year 1994-95 and subsequent years of assessment.
Miscellaneous provisions about reliefs
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Capital allowances
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Miscellaneous
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In section 750(1) of the Taxes Act 1988 (meaning of lower level of taxation for purposes of provisions relating to controlled foreign companies) for “one-half” there shall be substituted “ three-quarters ”.
Subsection (1) above shall apply in relation to accounting periods beginning on or after 16th March 1993.
Where a company is by virtue of section 749(1) or (2) of the Taxes Act 1988 regarded as resident in a territory outside the United Kingdom and (apart from this section)—for the purposes of Chapter IV of Part XVII of that Act that accounting period shall be treated as ending on 15th March 1993.
an accounting period of the company would begin before 16th March 1993 and end on or after that date, and
the company would not be considered to be subject, by virtue of section 750(1) of that Act, to a lower level of taxation in that accounting period in the territory in which it is regarded as resident,
Schedule 14 to this Act (which makes various amendments of the Taxes Management Act 1970, the Taxes Act 1988 and the Finance Act 1989 with a view to, or in connection with, the introduction of “pay and file”) shall have effect.
In subsection (2) of section 829 of the Taxes Act 1988 (restriction on application of Income Tax Acts to public departments), at the end there shall be inserted “ unless it is tax which would not have been so borne but for a failure by a public office or department of the Crown to make a deduction required by virtue of subsection (1) above. ”
The provisions of Parts IX and X of the Taxes Management Act 1970 (interest and penalties) shall apply in relation to public offices and departments of the Crown for the purposes, so far as they so apply, of the other provisions of that Act and of the provisions of the Income Tax Acts mentioned in section 829(1) of the Taxes Act 1988.
This section shall have effect in relation to the year 1993-94 and subsequent years of assessment.
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Accrual of gains and losses
Trading gains and losses
Non-trading gains and losses
This section applies where—and where this section applies by virtue of this subsection references to the relievable amount for the accounting period are to an amount equal to amount B.
a company is treated as incurring in an accounting period a loss or losses by virtue of section 129 above, and
it is not treated as receiving in the accounting period any amount by virtue of that section;
This section also applies where—and where this section applies by virtue of this subsection references to the relievable amount for the accounting period are to an amount equal to amount B minus amount A.
a company is treated as incurring in an accounting period a loss or losses by virtue of section 129 above,
it is treated as receiving in the accounting period an amount or amounts by virtue of that section, and
amount B exceeds amount A;
The company may claim under this subsection that the whole or part of the relievable amount for an accounting period shall be treated for the purposes of section 403(1) of the Taxes Act 1988 (group relief) as if it were a loss incurred by the company in the period in carrying on a trade, and in such a case section 403(2) (exclusions) shall not apply.
The company may claim under this subsection that the whole or part of the relievable amount for an accounting period shall be set off for the purposes of corporation tax against profits (of whatever description) of that accounting period; and in such a case, subject to any relief for a loss incurred in a trade in an earlier accounting period, those profits shall then be treated as reduced accordingly.
Where a company has made no claim under subsection (3) or (4) above as regards the relievable amount for an accounting period, the company may claim under this subsection that—shall be treated as mentioned in subsection (7) below.
the whole of the relievable amount, or
where the relievable amount exceeds the relevant exchange profits, so much of the relievable amount as is equal to those profits,
Where a company has made a claim under subsection (3) or (4) above as regards the relievable amount for an accounting period, the company may claim under this subsection that—shall be treated as mentioned in subsection (7) below.
such part of the relievable amount as is not the subject of any such claim, or
where that part exceeds the relevant exchange profits, so much of that part as is equal to those profits,
Where a company claims under subsection (5) or (6) above as regards the whole or part of the relievable amount for an accounting period, the whole or part concerned shall be set off for the purposes of corporation tax against the exchange profits of preceding accounting periods falling wholly or partly within the permitted period; and (subject to any relief for an earlier loss) the exchange profits of any of those accounting periods shall then be treated as reduced by the whole or part concerned or by so much of it as cannot be set off under this subsection against the exchange profits of a later accounting period.
For the purposes of subsections (5) and (6) above “the relevant exchange profits” means the total of the following—
the exchange profits, as reduced by any reliefs for earlier losses and any reliefs falling within subsection (9) below, of all those accounting periods falling wholly within the permitted period, and
such part of the exchange profits, as so reduced, of any accounting period falling partly before the beginning of the permitted period as is proportionate to the part of the accounting period falling within the permitted period.
The reliefs falling within this subsection are—
any relief under section 338 of the Taxes Act 1988 (charges on income) in respect of payments made wholly and exclusively for the purposes of a trade;
where the company is an investment company for the purposes of Part IV of the Taxes Act 1988, any relief under that section in respect of payments made wholly and exclusively for the purposes of its business.
For the purposes of subsections (7) and (8) above—
the exchange profits of an accounting period are the annual profits or gains the company is treated as receiving in that period under section 130 above,
the permitted period is the period of three years immediately preceding the accounting period first mentioned in subsection (7) above, and
an earlier loss is a loss incurred, or treated as incurred, in an accounting period earlier than that first mentioned in subsection (7) above.
The amount of the reduction that may be made under subsection (7) above in the exchange profits of an accounting period falling partly before the beginning of the permitted period shall not exceed a part of those profits proportionate to the part of the accounting period falling within the permitted period.
If the whole or part of the relievable amount for an accounting period is not dealt with under a claim under this section—
the company shall be treated as incurring by virtue of section 129 above a loss of an amount equal to the whole or part (as the case may be),
the company shall be treated as incurring the loss in the next succeeding accounting period, and
in relation to that accounting period references to amount B shall be construed accordingly.
A company—
may not claim under more than one of subsections (3) and (4) above as regards the same part of a relievable amount, and
where it has claimed under subsection (5)(b) or (6) above as regards part of a relievable amount, may not later claim under subsection (3) or (4) above as regards any part of the relievable amount.
A claim under any of subsections (3) to (6) above must be made within the period of two years immediately following the accounting period to which the relievable amount relates or within such further period as the Board may allow.
In this section references to amount C are to so much of amount B as the company is treated as incurring in the accounting period otherwise than by virtue of section 131(12).
Section 131(4) above shall apply before section 393A(1) of the Taxes Act 1988 in relation to profits of the accounting period first mentioned in section 131(4) above.
Relief shall not be given under section 131(4) above against any ring fence profits of the company; and in this subsection “ring fence profits” has the same meaning as in Chapter V of Part XII of the Taxes Act 1988.
Where the company incurs a loss in a trade in the accounting period first mentioned in subsection (7) of section 131 above, that subsection shall apply after section 393A(1) of the Taxes Act 1988 in relation to exchange profits of a particular accounting period.
Relief shall not be given by virtue of section 131(7) above so as to interfere with—
any relief under section 338 of the Taxes Act 1988 (charges on income) in respect of payments made wholly and exclusively for the purposes of a trade, or
where the company is an investment company for the purposes of Part IV of the Taxes Act 1988, any relief under that section in respect of payments made wholly and exclusively for the purposes of its business.
The reference in subsection (3) above to exchange profits of an accounting period shall be construed in accordance with section 131(10) above.
Alternative calculation
Main benefit test
Arm’s length test
Deferral of unrealised gains
Irrecoverable debts
Currency contracts: special cases
Excess gains or losses
Local currency to be used
Exchange rate to be used
Interpretation: companies
Interpretation: assets, liabilities and contracts
Interpretation: other provisions
Miscellaneous
Schedule 18 to this Act (which contains amendments) shall have effect.
Main provisions
Income tax for any year of assessment on the profits arising from a member’s underwriting business shall be computed on the profits of that year of assessment.
As respects the profits arising to a member from his underwriting business for any year of assessment—but nothing in this subsection shall affect the manner in which the amount of any profits arising from assets forming part of an ancillary trust fund is to be computed.
the aggregate of those profits shall be chargeable to tax under Chapter 2 of Part 2 of the Income Tax (Trading and Other Income) Act 2005 as the profits of a trade carried on in the United Kingdom; and
accordingly, no part of those profits shall be treated as relevant foreign income, or be charged to tax under any other Part of that Act or any Part of the Income Tax (Earnings and Pensions) Act 2003;
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Subsection (2) above does not apply in relation to any profits arising before 6th April 1993 from assets forming part of an ancillary trust fund.
Subject to the provisions of this Chapter, for the purposes of section 171 above and all other purposes of the Income Tax Acts the profits or losses in any year of assessment of a member’s underwriting business shall be taken to be—
in the case of profits or losses arising directly from his membership of one or more syndicates, those of any previous year or years which are declared in the corresponding underwriting year;
in the case of profits or losses arising from assets forming part of a premium trust fund, those allocated under the rules or practice of Lloyd’s to any previous year or years the profits or losses of which are declared in the corresponding underwriting year; and
in the case of other profits or losses, those derived from payments received or made in the corresponding underwriting year.
Subsection (1)(c) above does not apply in relation to payments received or made before 6th April 1993.
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Members’ trust funds
For the purposes of the Income Tax Acts and the Gains Tax Acts—
a member shall be treated as absolutely entitled as against the trustees to the assets forming part of a premium trust fund of his; and
where a deposit required by a regulatory authority in a country or territory outside the United Kingdom is paid out of such a fund, the money so paid shall be treated as still forming part of that fund.
Where an asset forms part of a premium trust fund at the beginning of any underwriting year, for the purposes of the Income Tax Acts—
the trustees of the fund shall be treated as acquiring it on that day, and
they shall be treated as paying in respect of the acquisition an amount equal to the value of the asset at the time of the acquisition.
Where an asset forms part of a premium trust fund at the end of any underwriting year, for the purposes of the Income Tax Acts—
the trustees of the fund shall be treated as disposing of it on that day, and
they shall be treated as obtaining in respect of the disposal an amount equal to the value of the asset at the time of the disposal.
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Subsections (2) to (5) above do not apply to FOTRA securities forming part of a member’s premiums trust fund at the beginning or end of any underwriting year if—
the member is not domiciled in the United Kingdom at any time in the year, and
he is either not ordinarily resident in the United Kingdom during the year or a non-resident United Kingdom trader in the year.
In this section—“FOTRA securities” has the same meaning as in section 715 of the Taxes Act 1988 (exceptions from accrued income scheme);“non-resident United Kingdom trader” shall be construed in accordance with subsection (5) of that section;“underwriting year” does not include the year 1993 or any earlier underwriting year.
If arrangements are made by the Council of Lloyd’s which—the provisions of that Part relating to taxation shall have effect in relation to any special reserve fund of a member set up under the arrangements.
enable such a special reserve fund as is referred to in Part I of Schedule 20 to this Act to be set up in relation to each member; and
comply with the requirements of that Part and are approved by the Board,
The arrangements may from time to time be varied with the consent of the Board.
If, after giving notice of their intention to do so to the Council of Lloyd’s, the Board cancel the approval which they have given with respect to the arrangements, paragraph 3 of Schedule 20 to this Act shall not apply, in the case of any member, to any year of assessment after the year of assessment in which the approval is cancelled.
The provisions of Part II of Schedule 20 to this Act shall have effect as respects the winding up of any special reserve fund which—
was set up under the arrangements mentioned in section 452(1) of the Taxes Act 1988; and
belongs to a member for whom a special reserve fund may be set up under the arrangements mentioned in subsection (1) above.
A member shall be treated for the purposes of the Income Tax Acts and the Gains Tax Acts as absolutely entitled as against the trustees to the assets forming part of an ancillary trust fund of his.
The cost of acquisition and the consideration for the disposal of assets forming part of an ancillary trust fund—
shall be left out of account in computing for the purposes of income tax the profits or losses of the member’s underwriting business; and
accordingly, shall not be excluded for the purposes of capital gains tax under section 37 or 39 of the Gains Tax Act.
None of the following provisions (which apply where an individual entitled to securities dies), namely—shall apply where the individual concerned is a member and the security concerned forms part of an ancillary trust fund of his.
section 636 of ITA 2007 (exception where there is a transfer to a legatee);
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In a case where subsection (3)(a) above applies, the deceased’s personal representatives shall be treated for the purposes of Part 12 of ITA 2007 and section 728 of the Taxes Act 1988 as the transferor or transferee in relation to transfers of securities as to which the deceased was the transferor or transferee (as the case may be) in the interest period in which he died.
Other special cases
In computing for the purposes of income tax the profits of a member’s underwriting business, each of the following shall be deductible as an expense, namely—
any premium payable by him under a stop-loss insurance, and any repayment of insurance money paid to him under such an insurance;
any amount payable by him into the High Level Stop Loss Fund, and any repayment of an amount paid to him out of that Fund; and
where an amount is payable by him under a quota share contract—
so much of that amount as exceeds the amount of transferred losses that are declared on or before the date the contract takes effect (“the declared amount”), or
if the contract does not take effect, the amount so payable under the contract.
Subject to subsection (3) below, each of the following, namely—shall be treated as a trading receipt in computing the profits arising from that business for the year of assessment which corresponds to the underwriting year in which the loss was declared.
any insurance money payable to a member under a stop-loss insurance in respect of a loss in his underwriting business; and
any amount payable to a member out of the High Level Stop Loss Fund in respect of such a loss,
Where, as respects the payment of any such insurance money or amount as is mentioned in subsection (2) above—that subsection shall have effect in relation to that insurance money or amount as if it referred instead to the year of assessment which corresponds to the underwriting year in which the payment is made.
the inspector is not notified of the payment at least 30 days before the time after which any assessment or further assessment of profits for the year of assessment is precluded by section 34 of the Management Act (ordinary time limit of 4 years), and
the inspector is not entitled, after that time, to make any such assessment or further assessment by virtue of section 36 (loss of tax brought about carelessly or deliberately) or 40(2) (assessment on personal representatives) of that Act,
Where the amount payable by a member under a quota share contract is less than the declared amount, the difference between the two amounts shall be treated as a trading receipt in computing the profits arising from the member’s underwriting business in the year of assessment which corresponds to the underwriting year in which the contract takes effect.
Where a member has entered a quota share contract, any amount paid by him to cover a cash call in respect of transferred losses that are not declared at the time the contract takes effect shall be treated—
for the purposes of subsection (1)(c)(i) and (3A) above, as an amount payable under the contract, and
for the purposes of section 172, as a payment made at the time the contract takes effect.
For the purposes of this section—“cash call” has the same meaning as in Part 1 of Schedule 20 to this Act;“quota share contract” means any contract between a member and another person which—is made in accordance with the rules or practice of Lloyd’s, and provides for that other person to take over any rights and liabilities of the member under any of the syndicates of which he is a member; and where the taking over of a member’s rights and liabilities is conditional upon the occurrence of any event, the contract does not take effect until that event occurs; and“transferred loss”, in relation to such a contract, means a loss for which that other person takes over liability under the contract (disregarding, in the case of a loss that has been declared at the time it is taken over, any part of it in respect of which the member has paid a cash call before that time).
Miscellaneous
Subject to subsection (5) below, this section applies where a member ceases to carry on his underwriting business, whether by reason of death or otherwise.
Subject . . . to the provisions of any regulations made by the Board, the member’s final year of assessment shall be that which corresponds to the underwriting year in which his deposit at Lloyd’s is paid over to him or his personal representatives or assigns.
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For the purposes of section 171 above and all other purposes of the Income Tax Acts, any profits or losses arising to the member from his underwriting business which are not taken (by virtue of the provisions of this Chapter) to be profits or losses of an earlier year of assessment shall be taken to be profits or losses of his final year of assessment.
This section does not apply in any case where the member’s deposit at Lloyd’s is paid over to him or his personal representatives or assigns before 1st January 1993.
This section applies where a member ceases to carry on his underwriting business by reason of death.
For the purposes of assessing the profits of the member’s underwriting business, the member shall be treated as having died at the end of the year of assessment which corresponds to the underwriting year immediately preceding that in which he actually died.
For the purposes of the Income Tax Acts—
the carrying on of the member’s underwriting business by his personal representatives shall not be treated as a change in the persons engaged in the carrying on of that business; and
subject to the provisions of any regulations made by the Board, the business shall be treated as continuing until the member’s deposit at Lloyd’s is paid over to his personal representatives.
Schedule 20A to this Act (which makes provision for certain reliefs to be available where a member converts to limited liability underwriting or a Lloyd’s partnership converts to underwriting through a company) shall have effect.
In relation to any member, all profits arising to him from his underwriting business—
shall be treated for the purposes of the Income Tax Acts as immediately derived from the carrying on by him of that business, and
accordingly, shall constitute—
for the purposes of Part 4 of the Finance Act 2004, relevant UK earnings within section 189(2)(b) of that Act, and
income in relation to which the treatment in section 836(2) of ITA 2007 does not apply.
This section does not apply in relation to profits of the year 1992-93 or earlier years of assessment.
In section 43 of the Finance Act 1989 (Schedule D: computation), subsections (6) and (7) (which extend certain time limits for persons permitted by the Council of Lloyd’s to act as underwriting agents at Lloyd’s) shall cease to have effect in relation to periods of account ending on or after 30th June 1993.
Supplemental
The Board may by regulations provide—
for the assessment and collection of tax charged in accordance with section 171 above . . . ;
for making, in the event of any changes in the rules or practice of Lloyd’s, such amendments of this Chapter as appear to the Board to be expedient having regard to those changes;
for modifying the application of this Chapter in cases where a syndicate continues after the end of its closing year or a member dies or otherwise ceases to carry on his underwriting business;
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for giving credit for foreign tax.
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Regulations made, or deemed to have been made, under any of the following enactments (regulations about Lloyd’s underwriters), namely—which were in force immediately before 6th April 1992 shall continue in force for the year 1992-93 and subsequent years of assessment notwithstanding the repeal of that enactment by this Act, and shall be deemed to have been made under this section.
section 451(1) or (1A) of the Taxes Act 1988,
section 92(5) of the Finance Act 1989, or
section 209(4) of the Gains Tax Act,
Any power to make regulations conferred by this section includes power to make—
different provision for different cases or different purposes, and
incidental, supplemental or transitional provision and savings.
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In section 710(14) of that Act (meaning of “business” and “premiums trust fund”), for the words “section 457” there shall be substituted the words “ section 184 of the Finance Act 1993 ”.
In the following provisions (which relate to nominees, trustees etc.), namely—Section 720(3) of the Taxes Act 1988, paragraph 18(1) of Schedule 4 to that Act, paragraph 10(1) of Schedule 11 to the Finance Act 1989, and paragraph 18(1) of Schedule 10 to the Finance Act 1990, the words from “his special reserve fund” to the end shall be omitted.
In the following provisions (which relate to the death of a member), namely—section 721(5) of the Taxes Act 1988, paragraph 18(8) of Schedule 4 to that Act, paragraph 10(6) of Schedule 11 to the Finance Act 1989, and paragraph 18(6) of Schedule 10 to the Finance Act 1990, the words from “a special reserve fund” to the end shall be omitted.
In section 206(2) of the Gains Tax Act (Lloyd’s underwriters), after the words “subsection (1) above” there shall be inserted the words “ and section 174(1) of the Finance Act 1993 ”.
In section 209 of that Act (interpretation, regulations about underwriters etc.)—
in subsection (1), for the words “sections 450 to 456 of the Taxes Act” there shall be substituted the words “ Chapter III of Part II of the Finance Act 1993 ” and for the words “sections 450 to 456”, in the second place where they occur, there shall be substituted the words “ that Chapter ”; and
in subsection (6), the words “or (4)” shall be omitted.
“ancillary trust fund”, in relation to a member, does not include a premium trust fund of his or his special reserve fund (if any) but, subject to that, means any trust fund required or authorised by the rules of Lloyd’s, or required by a members’ agent of his . . . ;“closing year”—in relation to a year of assessment, means the year of assessment next but one following that year; in relation to an underwriting year, means the underwriting year next but one following that year; and in relation to a syndicate, means the closing year of the underwriting year for which it was formed;“the Gains Tax Act” means the Taxation of Chargeable Gains Act 1992 and“the Gains Tax Acts” means that Act and any other enactments relating to capital gains tax;“the High Level Stop Loss Fund” means the fund of that name which, under the rules of Lloyd’s, has been established for the year 1993 and subsequent underwriting years;“inspector” includes any officer of the Board;“Lloyd’s partnership” means—a limited partnership formed under the law of Scotland which is a member of Lloyd’s and is or has been an underwriting member, or a limited liability partnership formed under the law of any part of the United Kingdom which is a member of Lloyd’s and is or has been an underwriting member;“the Management Act” means the Taxes Management Act 1970;“managing agent”, in relation to a syndicate and a year of assessment, means—the person registered as a managing agent at Lloyd’s who was acting as such an agent for the syndicate at the end of the corresponding underwriting year, or such other person as may be determined in accordance with regulations made by the Board;“member” (except in Part 1A of Schedule 20A) means an individual who is a member of Lloyd’s and is or has been an underwriting member;“members’ agent”, in relation to a member of a syndicate and a year of assessment, means—the person registered as a members’ agent at Lloyd’s who was acting as such an agent for the member at the end of the corresponding underwriting year, or if two or more such persons were so acting and one of them was appointed by the member to be responsible for complying with the requirements of the Lloyd’s Underwriters (Tax) Regulations 2005 in relation to all of the syndicates of which he is a member, that person, or if two or more such persons were so acting and none of them was so appointed, the person who was so acting for the member in his capacity as a member of the syndicate, or such other person as may be determined in accordance with regulations made by the Board;“premium trust fund” means a trust fund into which premiums receivable by members are paid in compliance with a trust deed under Rule 8.2.19 of the Prudential Sourcebook for Insurers made by the Prudential Regulation Authority under the Financial Services and Markets Act 2000;“prescribed” means prescribed by regulations made by the Board;“profits” includes gains;“special reserve fund”, unless the contrary intention appears, means a special reserve fund set up under the arrangements mentioned in section 175(1) above;“stop-loss insurance” means any insurance taken out by a member against losses in his underwriting business , except insurance taken out by entering a quota share contract (within the meaning of section 178 above);“syndicate” means a syndicate of underwriting members of Lloyd’s formed for an underwriting year;“underwriting business”, in relation to a member, means his underwriting business as a member of Lloyd’s, whether carried on personally or through an underwriting agent, and does not include any other business carried on by him, and in particular, where he is himself an underwriting agent, does not include his business as such an agent;“underwriting year” means the calendar year.
In this Chapter, unless the context otherwise requires—
For the purposes of this Chapter—
an underwriting year and a year of assessment shall be deemed to correspond to each other if the underwriting year ends in the year of assessment;
the profits or losses of a member’s underwriting business include profits or losses arising to him from assets forming part of a premium trust fund or an ancillary trust fund; and
any charge made on a member by the managing agent of a syndicate of which he is a member, and any expense incurred on his behalf by the managing agent of such a syndicate, shall be treated as expenses arising directly from his membership of that syndicate.
Subject to any provision to the contrary, the provisions of this Chapter have effect for the year 1992-93 and subsequent years of assessment.
Oil Taxation
In this Part of this Act—“non-taxable field” means an oil field which meets the conditions in subsection (1), (1ZA) or (1A), and“taxable field” means an oil field which is not a non-taxable field.
An oil field meets the conditions in this subsection if it is an oil field—. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
for no part of which consent for development was granted to a licensee by the Secretary of State before 16th March 1993; and
for no part of which a programme of development was served on a licensee or approved by the Secretary of State before that date;
An oil field meets the conditions in this subsection if—
the field does not meet the conditions in subsection (1), and
an election under Schedule 20B that the field is to be non-taxable is in effect.
An oil field meets the conditions in this subsection if—
the field does not meet the conditions in subsection (1),
the Secretary of State has at any time approved one or more abandonment programmes under Part 4 of the Petroleum Act 1998 (or Part 1 of the Petroleum Act 1987) in relation to all assets of the field which are relevant assets;
those programmes have been carried out to the satisfaction of the Secretary of State;
a development decision is made in relation to the field; and
that decision is made on or after 16th March 1993 and after those programmes have been so carried out.
For the purposes of subsection (1A)(a) above, an asset is a relevant asset of an oil field if—
it has at any time been a qualifying asset (within the meaning of the 1983 Act) in relation to any participator in the field; and
it has at any time been used for the purpose of winning oil from the field.
For the purposes of subsection (1A)(c) and (d) above, a development decision is made in relation to an oil field when—
consent for development is granted to a licensee by the appropriate authority in respect of the whole or part of the field; or
a programme of development is served on a licensee or approved by the appropriate authority for the whole or part of the field.
For the purposes of subsection (1) above, no account shall be taken, in relation to an oil field, of a consent for development granted before 16th March 1993 or a programme of development served on a licensee or approved by the Secretary of State before that date if—
in whole or in part that consent or programme related to another oil field for which a determination under Schedule 1 to the principal Act was made before the determination under that Schedule for the field in question; and
on or after 16th March 1993, a consent for development is or was granted or a programme of development is or was served on a licensee or approved by the appropriate authority and that consent or programme relates, in whole or in part, to the field in question.
In subsections (1C) and (2), “"the appropriate authority”” means—
in relation to a field that is wholly within the Scottish onshore area, as defined in section 8A of the Petroleum Act 1998, the Scottish Ministers;
in relation to a field that is wholly within the Welsh onshore area (as defined in section 8A of the Petroleum Act 1998), the Welsh Ministers;
otherwise, the OGA.
Petroleum revenue tax shall not be charged in accordance with the Oil Taxation Acts in respect of—
profits from oil won from a non-taxable field under the authority of such a licence as is referred to in section 1(1) of the principal Act; or
any receipts accruing to a participator in a non-taxable field which, in the case of a taxable field, would be tariff receipts or disposal receipts attributable to the field for any period.
Without prejudice to the generality of subsection (3) above—
in section 1(2) of the principal Act (the charge to tax) after the words “oil field” there shall be inserted “ which is a taxable field ”;
in section 3(1D) of the principal Act (apportionment of expenditure between oil field and non-oil field use) for the words “an oil field”, in both places where they occur, there shall be substituted “ a taxable field ”;
in section 5B of the principal Act (allowance of research expenditure) in subsection (6) after the words “this Act” there shall be inserted “ or for purposes relating to non-taxable fields ”;
no computation shall be made under the Oil Taxation Acts of the assessable profit or allowable loss accruing to a participator in any period from a non-taxable field; and
no expenditure shall be regarded as allowable (or allowed) for a non-taxable field under the Oil Taxation Acts.
In section 12(1) of the principal Act (interpretation) at the end of the definition of “oil field” there shall be added the words “ and “taxable field” and “non-taxable field” have the same meaning as in Part III of the Finance Act 1993 ”.
Subject to paragraphs (b) and (c) of subsection (4) above, where, apart from this section, expenditure incurred on or after 16th March 1993 would fall to be apportioned (as being allowable expenditure) between two or more oil fields, at least one of which is a non-taxable field, the apportionment shall be made as if all the fields were taxable fields, but subsection (4)(e) above shall then apply to any amount of expenditure apportioned to a non-taxable field.
In this section above “development”, in relation to an oil field, means—and consent for development does not include consent which is limited to the purpose of testing the characteristics of an oil-bearing area and does not relate to the erection or carrying out of permanent works.
the erection or carrying out of permanent works for the purpose of getting oil from the field or for the purpose of conveying oil won from the field to a place on land; or
winning oil from the field otherwise than in the course of searching for oil or drilling wells;
In subsection (7) above “permanent works” means any structures or other works whatsoever which are intended by the licensee to be permanent and are neither designed to be moved from place to place without major dismantling nor intended by the licensee to be used only for searching for oil.
With respect to chargeable periods ending after 30th June 1993 the rate of petroleum revenue tax (relevant only to taxable fields) shall be 50 per cent. and, accordingly, with respect to such periods, in section 1(2) of the principal Act for “75” there shall be substituted “ 50 ”.
In paragraph 17 of Schedule 2 to the principal Act (limit on interest in the case of relief for losses carried back) at the end of sub-paragraph (2) there shall be added the words “ and, in relation to the appropriate repayment, the chargeable period for which the relevant assessment or amendment is made is referred to as “the repayment period” ”.
In sub-paragraph (4) of that paragraph—
at the beginning there shall be inserted the words “ Subject to sub-paragraph (6) below ”; and
in paragraph (a) for the words “85 per cent.” there shall be substituted “ the relevant percentage of the amount ” and after the word “above” there shall be inserted “ which is treated as reducing the assessable profit of the repayment period ”.
At the end of that paragraph there shall be added the following sub-paragraphs—
In Schedule 2 to the principal Act (management and collection of petroleum revenue tax), other than the Table in paragraph 1 (modifications of the Taxes Management Act 1970),—andparagraph 7 (which is superseded by the following provisions of this section) shall be omitted.
for the words “an oil field”, in each place where they occur, there shall be substituted “ a taxable field ”; and
for the words “the oil field”, in each place where they occur, there shall be substituted “ the taxable field ”;
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In section 5A of the principal Act (allowance of exploration and appraisal expenditure), in subsection (1) (conditions for expenditure to be allowable) after paragraph (a) there shall be inserted the following paragraph—.
After subsection (1) of that section there shall be inserted the following subsections—
In subsection (2) of that section for the words “subsection (1)” there shall be substituted “ subsections (1) to (1C) ”.
This section applies in any case where—
a participator in an oil field or an associate incurs expenditure on or after 16th March 1993 and before 1st January 1995; and
apart from this section, that expenditure would not be allowable under section 5A of the principal Act (as amended by section 188 above); and
if section 188 above had not been enacted, the expenditure would be allowable in the case of the participator under section 5A of the principal Act; and
on 16th March 1993 the participator or the associate was a licensee in respect of the area to which the expenditure related.
In the following provisions of this section—
expenditure falling within subsection (1) above is referred to as “transitional E and A expenditure”; and
the participator in whose case that expenditure would be allowable as mentioned in paragraph (c) of that subsection is referred to as “the claimant”.
Subject to the following provisions of this section, so much of the transitional E and A expenditure incurred by the claimant or an associate as does not in the aggregate exceed £10 million shall be allowable in the case of the claimant under section 5A of the principal Act (as exploration and appraisal expenditure).
In subsections (1) to (3) above any reference to an associate of a participator applies only where the participator is a company and is a reference to another company—and subsections (7) and (8) of section 5 of the principal Act (companies and associates etc.) apply for the purposes of this section as they apply for the purposes of that section.
which on 16th March 1993 was a member of the same group of companies as the participator; and
with which the participator is associated in respect of expenditure incurred by the other company;
Where—subsection (3) above shall have effect as if references therein to the claimant were references to the aggregate of all those companies which on that date were members of the group and are the claimants in relation to any transitional E and A expenditure.
the claimant is a company, and
on 16th March 1993 the claimant was a member of a group of companies, and
at least one other company which was a member of the group on that date was then a participator in an oil field, and
that other company is also the claimant in relation to an amount of transitional E and A expenditure,
In this section, a group of companies means a company which is not a 51 per cent. subsidiary of any other company, together with each company which is its 51 per cent. subsidiary; and section 838 of the Taxes Act 1988 (subsidiaries) applies for the purposes of this section as it applies for the purposes of the Tax Acts (within the meaning of that Act).
Where, in the case of expenditure incurred as mentioned in section 1(1) of the 1983 Act (expenditure incurred on non-dedicated mobile assets),—that proportion of the expenditure which is equal to the proportion of the claim period during which the asset is dedicated to a non-taxable field shall not be allowable as mentioned in paragraph (a) above.
the expenditure would, apart from this subsection, be allowable under section 4 of the principal Act for a claim period of a taxable field, and
during that claim period, the asset becomes dedicated to a non-taxable field,
For the purpose of determining whether an asset becomes at any time dedicated to a non-taxable field, it shall be assumed that, in relation to a non-taxable field, any reference in section 2 of the 1983 Act (dedicated mobile assets) to a claim period is a reference to—
the period ending at the end of December following the determination of the field; or
the period of twelve months ending at the end of December in any later year.
In paragraph 7 of Schedule 1 to the 1983 Act (brought-in assets) in sub-paragraph (1)(c) (which requires that during the initial period the asset should have been used otherwise than in connection with an oil field) for the words “an oil field” there shall be substituted “ a taxable field ”.
In paragraph 8 of that Schedule (subsequent use of new asset otherwise than in connection with an oil field) in the heading and in sub-paragraphs (1) to (3) and (6) for the words “an oil field” there shall be substituted “ a taxable field ”.
In paragraph 5 of Schedule 2 to the 1983 Act (acquisition otherwise than at arm’s length: limit on tariff and disposal receipts)—
in paragraphs (a) and (c) of sub-paragraph (1) for the words “an oil field” there shall be substituted “ a taxable field ”;
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in sub-paragraph (3)(a) for the words “an oil field” there shall be substituted “ a taxable field ”; and
in sub-paragraph (3)(b) for the words “an oil field” there shall be substituted “ a taxable field or, if it is to a participator in a taxable field, the asset is to be used wholly or partly in connection with a non-taxable field ”.
Subject to the following provisions of this section, where a claim is made under the principal Act for the allowance of any expenditure and the claim is received by the Board after 16th March 1993, an amount of expenditure is to be taken to be incurred for the purposes of the Oil Taxation Acts on the date on which the obligation to pay that amount becomes unconditional (whether or not there is a later date on or before which the whole or any part of that amount is required to be paid).
Subject to subsection (3) below, where the amount of any expenditure incurred by any person at any time after 16th March 1993 under a contract—is disproportionate to the extent to which that other person has, at or before that time, performed his obligations under the contract then, for the purposes of the Oil Taxation Acts, only so much of the expenditure shall be taken to have been incurred at that time as is proportionate to those obligations which have been so performed.
for the acquisition from any other person of, or of an interest in, an asset, or
for the provision by any other person of services or other business facilities of whatever kind (whether in connection with the use of an asset or not), or
for the grant or transfer to that person by any other person of any right, licence or interest (other than an interest in an asset)
If, in the case of a contract entered into after 16th March 1993 and falling within paragraph (a) or paragraph (b) of subsection (2) above—the contractor shall be treated for the purposes of subsection (2) above as having at any time performed his obligations under the contract only to the extent that, at that time, the asset or interest in question has been acquired by, or, as the case may be, the services or other business facilities have been provided to, the person incurring the expenditure.
the expenditure referred to in that subsection is incurred before 1st July 1993, and
the other person referred to in paragraph (a) or paragraph (b) (“the contractor”) has performed his obligations by entering into one or more further contracts,
In paragraph 2 of Schedule 4 to the principal Act (limitation of allowable expenditure on transactions between connected persons or otherwise than at arm’s length) for sub-paragraph (1) there shall be substituted the following sub-paragraphs—
For sub-paragraph (3) of paragraph 2 of Schedule 4 to the principal Act there shall be substituted the following sub-paragraphs—
The amendments made by subsections (4) and (5) above have effect where the transaction to which paragraph 2 of Schedule 4 to the principal Act applies takes place on or after 16th March 1993.
Where a claim which—has been allowed, the expenditure shall not be brought into account in determining the assessable profit or allowable loss of any chargeable period which ends earlier than the last day of the claim period in which the expenditure was incurred.
is received by the Board after 16th March 1993,
Where a claim has been made under Schedule 7 to the principal Act for the allowance of any expenditure incurred after 31st March 1993 and that claim has been allowed, the expenditure shall not be brought into account in determining the assessable profit or allowable loss of any chargeable period which ends before the date on which the expenditure was incurred.
The preceding provisions of this section have effect notwithstanding anything in subsection (9) of section 2 of the principal Act (under which expenditure which had been allowed might in certain cases be taken into account in earlier chargeable periods) and, accordingly, at the beginning of that subsection there shall be inserted “ Subject to section 192 of the Finance Act 1993 ”.
In section 9 of the 1983 Act (tariff receipts allowance) in subsection (5) (definition of “user field”) in paragraph (a) after the words “other than the principal field” there shall be inserted “ or a non-taxable field ”, and at the end of that subsection there shall be inserted the following subsection—
Where a participator in a taxable field incurs any expenditure and,—the expenditure shall be disregarded in determining the assessable profit or allowable loss referred to in paragraph (a) above.
apart from this subsection, the expenditure would be taken into account in determining the assessable profit or allowable loss accruing to that participator from the taxable field in any chargeable period, and
in the hands of the recipient, the expenditure would, on the relevant assumptions, constitute tariff receipts or disposal receipts of a participator in a non-taxable field attributable to that field for any period, and
at the time the expenditure is incurred, the participator referred to in paragraph (a) above is or is connected with a participator in the non-taxable field referred to in paragraph (b) above,
For the purposes of subsection (2) above, the relevant assumptions are—
that the non-taxable field is a taxable field; and
that the asset which gives rise to the expenditure (by virtue of its use, the provision of services or other business facilities in connection with its use or its disposal) is a qualifying asset in relation to the participator in question.
In section 12 of the 1983 Act (charge of receipts attributable to United Kingdom use of foreign field asset), in subsection (3) after the words “oil field”, in the first place where they occur, there shall be inserted “ which is a taxable field and ”.
After subsection (3) of section 12 of the 1983 Act there shall be inserted the following subsection—
In this section “disposal receipts”, “qualifying asset” and “tariff receipts” have the same meaning as in the 1983 Act; and section 1122 of the Corporation Tax Act 2010 (connected persons) applies for the purposes of subsection (2)(c) above.
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In this Part—
“the principal Act” means the Oil Taxation Act 1975 ;
“the 1983 Act” means the Oil Taxation Act 1983 ;
“the Oil Taxation Acts” means Parts I and III of the principal Act, the 1983 Act and any other enactment relating to petroleum revenue tax; and
“taxable field” and “non-taxable field” shall be construed in accordance with section 185 above.
The Board may make all such amendments of assessments or determinations or of decisions on claims as may be necessary in consequence of the provisions of this Part.
This Part... shall be construed as one with Part I of the principal Act.
Inheritance Tax
The Table substituted by section 72(1) of the Finance (No.2) Act 1992 shall apply to chargeable transfers made in the year beginning 6th April 1993, and accordingly section 8(1) of the Inheritance Tax Act 1984 (indexation of rate bands)shall not apply to such transfers.
In section 8 of the Inheritance Tax Act 1984 (indexation of rate bands)—
in subsection (1) for “December in 1984” there shall be substituted “ September in 1993 ” and for “previous December” there shall be substituted “ previous September ”;
in subsection (3) for “December” there shall be substituted “ September ”;
in subsection (4) for “1985” there shall be substituted “ 1994 ”.
This section shall apply in relation to chargeable transfers made on or after 6th April 1994.
In the Inheritance Tax Act 1984, in Part VI (valuation) in Chapter III (sale of shares etc. from deceased’s estate) there shall be inserted after section 186—
This section shall have effect in relation to deaths occurring on or after 16th March 1992.
In the Inheritance Tax Act 1984, in Part VI, in Chapter IV (sale of land from deceased’s estate) after section 197 there shall be inserted—
This section shall have effect in relation to deaths occurring on or after 16th March 1990.
In section 222 of the Inheritance Tax Act 1984 (appeals against determinations) for subsection (4) there shall be substituted the following subsections—
In section 242 of that Act (recovery of tax) in subsection (3) for the words “subsection (4)” there shall be substituted the words “ subsections (4) to (4B) ”.
This section shall apply in relation to any appeal which—
is made on or after the day on which this Act is passed, or
is made, but has not begun to be heard, before that day.
Stamp Duty
Subsection (2) below applies where—
a person exercises the right to acquire on rent to mortgage terms under Part V of the Housing Act 1985, and
in pursuance of the exercise of that right a conveyance of the freehold is executed in his favour as regards the dwelling-house concerned.
For the purposes of the enactments relating to stamp duty chargeable under Part I of Schedule 13 to the Finance Act 1999 (conveyance or transfer on sale), the consideration for the sale shall be taken to be equal to the price which, by virtue of section 126 of the Housing Act 1985, would be payable for the dwelling-house on a conveyance if the person were exercising the right to buy under Part V of that Act.
Subsection (4) below applies where—
a person exercises the right to acquire on rent to mortgage terms under Part V of the Housing Act 1985, and
in pursuance of the exercise of that right a lease is executed in his favour as regards the dwelling-house concerned.
In such a case—
the lease shall not be chargeable with stamp duty under Part II of Schedule 13 to the Finance Act 1999 (lease) but shall be chargeable with stamp duty under Part I of that Schedule (conveyance or transfer on sale) as if it were a conveyance on sale;
for the purposes of the enactments relating to stamp duty chargeable under Part I of that Schedule the consideration for the sale mentioned in paragraph (a) above shall be taken to be equal to the price which, by virtue of section 126 of the Housing Act 1985, would be payable for the dwelling-house on a grant if the person were exercising the right to buy under Part V of that Act.
This section shall apply where the conveyance or lease is executed after the day on which this Act is passed.
Subsection (2) below applies where—
a person exercises the right to purchase a house by way of the rent to loan scheme under Part III of the Housing (Scotland) Act 1987, and
in pursuance of the exercise of that right a heritable disposition of the house is executed in favour of him.
For the purposes of the enactments relating to stamp duty chargeable under Part I of Schedule 13 to the Finance Act 1999 (conveyance or transfer on sale), the consideration for the sale shall be taken to be equal to the price which, by virtue of section 62 of the Housing (Scotland) Act 1987, would be payable for the house if the person were exercising the right to purchase under section 61 of that Act.
This section shall apply where the disposition is executed after the day on which this Act is passed.
The Treasury may make regulations as to the method by which stamp duty is to be denoted.
In particular, regulations under this section may—and cases may be designated by reference to the type of instrument concerned, the geographical area involved, or such other factors as the Treasury think fit.
provide for duty to be denoted by impressed stamps or adhesive stamps or by a record printed or made by a machine or implement or by such other method as may be prescribed;
provide for one method only to be used, whether generally or in prescribed cases;
provide for alternative methods to be available, whether generally or in prescribed cases;
make different provision for different cases;
Regulations under this section may provide that where stamp duty is denoted by a method which (in the case of the instrument concerned) is required or permitted by the law in force at the time it is stamped, for the purposes of section 14(4) of the Stamp Act 1891 (instruments not to be given in evidence etc. unless stamped in accordance with the law in force at the time of . . . execution) the method shall be treated as being in accordance with the law in force at the time when the instrument was . . . executed.
Regulations under this section may include such supplementary, incidental, consequential or transitional provisions as appear to the Treasury to be necessary or expedient.
Regulations under this section may make provision in such way as the Treasury think fit, and in particular may amend or repeal or modify the effect of any provision of any Act.
In this section “prescribed” means prescribed by regulations under this section.
The power to make regulations under this section shall be exercisable by statutory instrument subject to annulment in pursuance of a resolution of the House of Commons.
Miscellaneous and General
Statutory effect of resolutions etc.
The Provisional Collection of Taxes Act 1968 shall be amended as follows.
after “income tax,” there shall be inserted “ corporation tax (including advance corporation tax) ”;
the words “car tax” shall be omitted.
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In section 1(4) (resolution to cease to have statutory effect unless Bill read a second time within twenty-five sitting days) for “twenty-five” there shall be substituted “ thirty ”.
In section 5 (resolution giving provisional effect to motions)—
in subsection (1), paragraph (c) and the word “or” immediately preceding it shall be omitted;
in subsection (2) for “, sections 8(5) and 822 of the 1988 Act” there shall be substituted “ and section 822 of the Income and Corporation Taxes Act 1988 ”.
This section shall apply in relation to resolutions passed after the day on which this Act is passed.
In section 8 of the Taxes Act 1988 (general scheme of corporation tax) subsections (4) to (6) (assessments where tax not charged for year etc.) shall be omitted.
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In section 50(2) of the Finance Act 1973 (period of temporary statutory effect of resolution affecting stamp duties)—
in paragraph (a) (period by reference to twenty-fifth day of Commons sitting) for “twenty-fifth” there shall be substituted “ thirtieth ”;
in paragraph (d) (period by reference to five months beginning with day resolution takes effect) for “five” there shall be substituted “ six ”.
This section shall apply in relation to resolutions passed after the day on which this Act is passed.
Miscellaneous
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In section 9 of the Taxation of Chargeable Gains Act 1992 (residence, including temporary residence) the following subsection shall be inserted after subsection (3)—
In consequence of subsection (1) above, in section 267(4) of the Inheritance Tax Act 1984 (residence in United Kingdom determined as for purposes of income tax) the words “but without regard to any dwelling-house available in the United Kingdom for his use” shall be omitted.
Subsections (1) and (2) above shall have effect for the year 1993-94 and subsequent years of assessment.
Subsection (3) above shall have effect where the year of assessment concerned is 1993-94 or a subsequent year of assessment.
Schedule 22 to this Act (which contains provisions about trading funds) shall have effect.
General
In this Act “the Taxes Act 1988” means the Income and Corporation Taxes Act 1988 , and “ITA 2007” means the Income Tax Act 2007.
The enactments specified in Schedule 23 to this Act (which include provisions which are already spent) are hereby repealed to the extent specified in the third column of that Schedule, but subject to any provision of that Schedule.
This Act may be cited as the Finance Act 1993.
Table of rates of duty on wine and made-wine
Value added tax: penalties etc.
Misdeclaration penalty under section 14 of the 1985 Act
In subsection (2) of section 14 of the 1985 Act (penalty for misdeclaration or neglect imposed where the tax lost equals or exceeds certain amounts), for paragraphs (a) and (b) there shall be substituted “ equals or exceeds whichever is the lesser of £1,000,000 and 30 per cent. of the relevant amount for that period. ”
After subsection (4) of that section there shall be inserted the following subsections—
In subsection (5A) of that section (account to be taken of corrections), for “subsection (5) above that the statement made by each of those returns is a correct statement” there shall be substituted “ subsections (4B) and (5) above that the statements made by each of those returns (so far as they are not inaccurate in any other respect) are correct statements ”.
This paragraph shall have effect in relation to any prescribed accounting period beginning on or after such day as the Treasury may by order made by statutory instrument appoint, but an order under this sub-paragraph may appoint different days for the purposes of different provisions of this paragraph or for different purposes.
Misdeclaration penalty under section 14A of the 1985 Act
In subsection (1)(b) of section 14A of the 1985 Act (misdeclaration resulting in understatements or overclaims), for the words from “whichever” to “period” there shall be substituted “ whichever is the lesser of £500,000 and 10 per cent. of the gross amount of tax for that period ”.
For subsections (2) and (3) of that section (liability for penalty where there are misdeclarations on three or more occasions) there shall be substituted the following subsections—
In subsection (4) of that section, for “subsections (4) to (5B)” there shall be substituted “ subsections (4), (4B), (5A) and (5B) ”.
In subsection (6) of that section (material inaccuracies not to be material in cases to which other sections apply), at the end there shall be inserted “ except, in the case of an inaccuracy by reason of which a person is assessed to a penalty under section 14 above, for the purposes of subsection (2)(a) above. ”
Subject to sub-paragraph (6) below, this paragraph shall have effect in relation to any prescribed accounting period beginning on or after such day as the Treasury may by order made by statutory instrument appoint.
No penalty liability notice shall be served on or after the day appointed under sub-paragraph (5) above by reference to any material inaccuracy in respect of a prescribed accounting period beginning before that day, and the penalty period specified in any penalty liability notice served before that day shall be deemed to end with the day before that day.
Mitigation of penalties
After section 15 of the 1985 Act there shall be inserted the following section—
Subsection (4) of section 13 of the 1985 Act (mitigation of penalty under section 13) shall cease to have effect; and—
in subsection (1) of that section, for “subsections (4) and (7)” there shall be substituted “ subsection (7) ”;
in paragraph (b) of subsection (5) of that section, for the words from “have power” to the end of that paragraph there shall be substituted “ have power under section 15A below to reduce a penalty under this section, ”; and
in section 40(1A) of the Value Added Tax Act 1983 (tribunal not to modify penalties under the 1985 Act), for “section 13(4)” there shall be substituted “ section 15A ”.
Interest on tax etc. recovered or recoverable by assessment
In subsections (1) and (3) of section 18 of the 1985 Act (interest on tax etc. recovered or recoverable by assessment), after the word “shall”, in each subsection, there shall be inserted “ (subject to subsection (3A) below) ”.
After subsection (3) of that section there shall be inserted the following subsection—
This paragraph shall apply in relation to interest on amounts assessed or, as the case may be, paid on or after such day as the Treasury may by order made by statutory instrument appoint.
Default surcharge
In section 19 of the 1985 Act, in subsection (2) (surcharge liability notice if default for two accounting periods)—
in paragraph (a) for “any two prescribed accounting periods” there shall be substituted “ a prescribed accounting period ”,
paragraph (b) shall be omitted, and
in paragraph (c) for “later period referred to in paragraph (b)” there shall be substituted “ period referred to in paragraph (a) ”.
In subsection (3) of that section for “defaults in respect of two prescribed accounting periods and the second of those periods” there shall be substituted “ a default in respect of a prescribed accounting period and that period ”.
This paragraph shall apply in relation to any case where a person is in default for the purposes of section 19 of the 1985 Act and is so in default because of a failure of the Commissioners of Customs and Excise to receive a return, or an amount of tax, on or before a day falling on or after 1st October 1993; and in the case of sub-paragraph (2) above it is immaterial when the existing surcharge period began.
For subsection (4) of section 19 of the 1985 Act (amount of surcharge) there shall be substituted the following subsection—
In subsection (5) of that section (specified percentages for default surcharge)—
for “subsection (4)(a) above” there shall be substituted “ subsection (4) above ”, and
after “surcharge period” there shall be inserted “ and for which he has outstanding tax ”.
After subsection (5) of that section there shall be inserted the following subsection—
This paragraph shall apply in relation to any case where a person—
is in default for the purposes of section 19 of the 1985 Act in respect of a prescribed accounting period ending within a surcharge period, and
is so in default because of a failure of the Commissioners of Customs and Excise to receive a return, or an amount of tax, on or before a day falling on or after 30th September 1993.
In subsection (5) of section 19 of the 1985 Act (specified percentages for default surcharge)—
at the end of paragraph (b) there shall be inserted “ and ”, and
for paragraphs (c) and (d) there shall be substituted the following paragraph—
Sub-paragraph (1) above shall apply in relation to any liability to a surcharge arising on or after 1st April 1993.
In section 19(5) of the 1985 Act (as amended by sub-paragraph (1) above), for paragraphs (a) to (c) there shall be substituted the following paragraphs—
Sub-paragraph (3) above shall apply in relation to any liability to a surcharge arising on or after 1st October 1993.
Meaning of “the 1985 Act”
In this Schedule “the 1985 Act” means the Finance Act 1985.
Car and car fuel benefits: 1994-95 onwards
Introductory
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Car benefits
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Car fuel benefits
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General
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Vans
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Removal expenses and benefits
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Taxation of distributions: supplemental provisions
The Taxes Act 1988
In each of sections 167(2A), . . ., . . . and 819(2) of the Taxes Act 1988 (definitions of excess liability), and in the definition of “excess liability” in paragraph 19(1) of Schedule 7 to that Act, for “were charged at the basic rate” there shall be substituted “ by virtue of section 1(2)(aa) were charged at the basic rate, or (so far as applicable in accordance with section 207A) the lower rate, ”.
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The Finance Act 1989 (c. 26)
The Finance Act 1990 (c. 29)
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The Taxation of Chargeable Gains Act 1992 (c. 12)
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Commencement
This Schedule, except the provisions to which sub-paragraphs (2) to (5) below apply, shall have effect for the year 1993-94 and subsequent years of assessment.
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Relief on retirement or re-investment
Retirement relief etc.
Extension of references to “family company”
In sections 157 and 163 to 165 of the Taxation of Chargeable Gains Act 1992 and in paragraph 12(2) of Schedule 6 and paragraph 7(1) of Schedule 7 to that Act (which contain provisions relating to retirement relief and provisions which apply the definition of “family company” in Schedule 6 for other purposes), for the words “family company”, wherever they occur, there shall be substituted “ personal company ”.
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Extension of references to full-time working directors etc.
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Roll-over relief on re-investment
After Chapter I of Part V of that Act there shall be inserted the following Chapter—
Restriction on set-off of pre-entry losses
The following is the Schedule to be inserted after Schedule 7 to the Taxation of Chargeable Gains Act 1992.
OVERSEAS LIFE INSURANCE COMPANIES: AMENDMENT OF TAXES ACT 1988 ETC
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Overseas life insurance companies: amendment of Finance Act 1989
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OVERSEAS LIFE INSURANCE COMPANIES: AMENDMENT OF TAXATION OF CHARGEABLE GAINS ACT 1992
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The Capital Allowances Act 1990 shall be amended as follows.
In subsection (1) of section 124 (expenditure qualifying for allowances)—
for “this Part, including” there shall be substituted “ writing-down allowances or ”; and
in paragraph (b), for “this Part” there shall be substituted “ writing-down allowances or, as the case may be, section 122 ”.
In subsection (2) of that section, for “this Part” there shall be substituted “ writing-down allowances ”.
After section 124 there shall be inserted the following sections—
In subsection (1) of section 126 (transfers of relevant interest), for “a writing-down allowance” there shall be substituted “ an allowance under this Part ”.
For subsection (2) of that section there shall be substituted the following subsection—
In subsection (6) of that section (balancing increase of last writing-down allowance in respect of allowance lost on transfers), after “total allowances” there shall be inserted “ (including any initial allowance) ”.
After subsection (3) of section 127 (buildings etc. bought unused) there shall be inserted the following subsections—
In subsection (4) of that section, for “and (3)” there shall be substituted “ (3) and (3B) ”.
After section 127 there shall be inserted the following section—
In subsection (1) of section 128 (balancing allowances and charges), for “a writing-down allowance” there shall be substituted “ an allowance under this Part ”.
In subsection (2) of that section, for “this Part less the aggregate of any writing-down allowances” there shall be substituted “ any allowances under this Part less the aggregate of any such allowances ”.
In subsection (3) of that section, after “purposes of” there shall be inserted “ allowances under ”.
In subsection (6) of that section, for “writing-down allowances” there shall be substituted “ allowances under this Part ”.
In section 129(1) (balancing events), for “a writing-down allowance” there shall be substituted “ an allowance under this Part ”.
In section 131(2) (application of Chapter I of Part V to forestry buildings etc.), in the words after paragraph (b), before “subject” there shall be inserted “ with the omission of sections 124A, 127(3A)(b) and 127A and ”.
In section 146(3) (allowances under Parts V and VI not to exceed expenditure), after “made under” there shall be inserted “ Part V or ”.
First-year allowances for machinery and plant
The Capital Allowances Act 1990 shall be amended as follows.
In section 23(6) (interpretation of information provisions relating to first-year allowances), at the end there shall be inserted “ and references in this section to a first-year allowance shall not include references to a first-year allowance in respect of expenditure to which section 22 applies by virtue only of subsection (3B) of that section. ”
In section 30(2)(c) (special provision for ships), for “section” there shall be substituted “ sections 46(8)(e) and ”.
In section 38(m) (assets attracting first-year allowances not to be treated as short-life assets), after “section 22” there shall be inserted “ (2), (3) or (3A) ”.
In subsection (2)(a) of section 39 (definition of a qualifying purpose), for “subsections (2) and (3)” there shall be substituted “ subsections (2) to (3B) ”.
In subsection (8)(b) of that section (anti-avoidance provision in respect of chartering), after “new expenditure,” there shall be inserted “ a first-year allowance by virtue of section 22(3B) or ”.
After subsection (8) of section 42 (modifications in relation to “old expenditure” of provisions relating to overseas leasing) there shall be inserted the following subsection—
In subsection (1) of section 43 (cases where section applies), for “This section” there shall be substituted “ Subsections (2) and (3) below ”.
After subsection (3) of that section there shall be inserted the following subsection—
In section 44 (further provisions in relation to joint lessees in cases involving new expenditure), after subsection (4) there shall be inserted the following subsection—
In section 46 (recovery of allowances made in respect of plant and machinery subsequently let to a foreign resident), after subsection (7) there shall be inserted the following subsection—
In section 48 (information provisions in relation to joint lessees in cases involving new expenditure), after subsection (6) there shall be inserted the following subsection—
After subsection (4) of that section there shall be inserted the following subsection—
In section 81 (assets used for purposes not attracting capital allowances and assets received by way of gift), after subsection (1) there shall be inserted the following subsection—
After subsection (2) of that section there shall be inserted the following subsection—
Sub-paragraph (2) above shall have effect in cases where machinery or plant is brought into use on or after 14th April 1993.
In subsection (2) of that section, after “any person” there shall be inserted “ an allowance is made under section 22 in respect of any capital expenditure or ”.
Pay and file: miscellaneous amendments
Failure to give notice of liability for corporation tax
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Further claims etc. where assessment made
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Interest on overdue corporation tax: transitional cases
Section 86 of that Act of 1970 (interest on overdue tax) shall be amended as follows.
In subsection (3)(b), for “subject to subsection (3A)” there shall be substituted “ subject to subsections (3A) and (4A) ”.
In subsection (3A), at the beginning there shall be inserted “ Subject to subsection (4A) below, ”.
After subsection (4) there shall be inserted the following subsections—
Interest on overdue corporation tax: pay and file cases
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For subsection (6) of that section there shall be substituted the following subsections—
Effect on interest of reliefs
In section 91(1B) of that Act of 1970 (subsection (1A) subject to section 87A(4)), after “section 87A(4)” there shall be inserted “ (6) and (7) ”.
Failure to make return for corporation tax
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Things to be done by companies
In section 108(1) of that Act of 1970 (which includes provision requiring companies to act for the purposes of the Taxes Acts through their proper officers), after “proper officer of the company” there shall be inserted “ or, except where a liquidator has been appointed for the company, through such other person as may for the time being have the express, implied or apparent authority of the company to act on its behalf for the purpose ”.
Relief under section 393 of the Taxes Act 1988
In relation to any case in which by virtue of section 99 of the Finance Act 1990 losses may be set off under subsection (1) of section 393 or of section 396 of the Taxes Act 1988 without the making of a claim, the Taxes Act 1988 shall have effect with the following amendments.
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In section 398 (transactions in deposits), for the words from “he may” onwards there shall be substituted “ the amount of his loss may be set off in pursuance of a claim under section 392 or, as the case may be, against which the amount of his loss may be set off under section 396 ”.
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Interest on tax overpaid
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In subsection (7A) of that section, for “any increase in the amount of that repayment” there shall be substituted “ so much of the amount of that repayment as falls to be made ”.
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In subsection (7B) of that section, for “any increase in the amount of that payment” there shall be substituted “ so much of the amount of that payment as falls to be made ”.
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Surrender of refunds
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Exchange gains and losses: alternative calculation
Introduction
This paragraph applies where regulations under this Schedule provide that the amount of an initial exchange gain or initial exchange loss accruing to a company as regards an asset, liability or contract for an accrual period shall be found in accordance with the alternative method of calculation.
In such a case the amount shall not be found in accordance with section 125(2) or (4) of this Act or section 126(3) or (5) or section 127(3) or (4) (as the case may be) but shall be found by—
taking the accrued amount for each day in the accrual period, and
adding the amounts found under paragraph (a) above.
Subject to regulations under this Schedule, the accrued amount for a day in the accrual period shall be found by—
taking the amount of the initial exchange gain or initial exchange loss found in accordance with section 125(2) or (4) of this Act or section 126(3) or (5) or section 127(3) or (4) (as the case may be), and
dividing it by the number of days in the period.
Where an accrual period does not begin at the beginning of a day, the part of the day that falls within the accrual period shall be treated for the purposes of this Schedule as a complete day.
Where an accrual period does not end at the end of a day, the part of the day that falls within the accrual period shall be treated for the purposes of this Schedule as a complete day.
Exempt circumstances
“long-term insurance business” means business which consists of the effecting or carrying out of contracts which fall within Part II of Schedule 1 to the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001;“commercial woodlands” means woodlands in the United Kingdom which are managed on a commercial basis and with a view to the realisation of profits.
Regulations may provide that where—the amount of the gain or loss shall be found in accordance with the alternative method of calculation.
at any time on a day in the period the asset or contract was held, or the liability was owed, by the company in exempt circumstances, and
such other conditions as may be prescribed are fulfilled,
Regulations may also provide that as regards any such day as is mentioned in sub-paragraph (1) above the accrued amount shall be ascertained in accordance with prescribed rules.
Regulations may be so framed that the accrued amount as regards a day depends on the extent to which an asset or contract is held, or a liability is owed, in exempt circumstances.
For the purposes of this paragraph an asset or contract is held, or a liability is owed, in exempt circumstances at a given time if it is then held or owed—
for the purposes of long-term insurance business;
for the purposes of mutual insurance business;
for the purposes of the occupation of commercial woodlands;
by a housing association approved at that time for the purposes of section 488 of the Taxes Act 1988;
by a self-build society approved at that time for the purposes of section 489 of that Act.
In this paragraph—
Unremittable income
Regulations may provide that where—the amount of the gain or loss shall be found in accordance with the alternative method of calculation.
at any time on a day in the period income represented by the asset was unremittable, and
such other conditions as may be prescribed are fulfilled,
Regulations may also provide that as regards any such day as is mentioned in sub-paragraph (1) above the accrued amount shall be ascertained in accordance with prescribed rules.
Regulations may be so framed that the accrued amount as regards a day depends on the extent to which the income represented by an asset is unremittable.
For the purposes of this paragraph income is unremittable if—
a claim under subsection (2) of section 584 of the Taxes Act 1988 (relief for unremittable income) has been made in relation to the income,
paragraphs (a) and (b) of that subsection apply to it, and
those paragraphs have not ceased to apply to it.
Matched liabilities
Regulations may provide that where—the amount of the gain or loss shall be found in accordance with the alternative method of calculation.
the liability falls within section 153(2)(a) of this Act,
the liability is eligible to be matched on any day in the accrual period with an asset held by the company, and such other conditions as may be prescribed are fulfilled, and
an election is made in accordance with the regulations to match the liability with the asset on any such day and the election has effect by virtue of the regulations,
Regulations may also provide that as regards any day in respect of which an election has effect the accrued amount shall be ascertained in accordance with prescribed rules.
The question whether a liability is eligible to be matched with an asset shall be determined in accordance with prescribed rules, and in particular regulations may include provision that—
only liabilities of a prescribed description are eligible to be matched with assets;
only assets of a prescribed description are eligible to be matched with liabilities;
liabilities of a prescribed description are eligible to be matched only with assets of a prescribed description.
Regulations may include provision that on any day—
a liability may be partially matched;
an asset may be partially matched;
one asset may be matched with two or more liabilities (wholly or partially);
one liability may be matched with two or more assets (wholly or partially).
Regulations may include provision that an election relating to an asset or assets shall be treated as made in relation to another asset or other assets (as where assets are replaced by others).
Regulations may include provision—
that an election may in prescribed circumstances have effect from a time before it is made;
that an election may be varied;
that an election may not be revoked;
that an election must be made by the company (subject to any provision under sub-paragraph (7) below).
Regulations may provide that where the company is a relevant controlled foreign company an election may be made by a United Kingdom resident company which has (or may be made jointly by United Kingdom resident companies which together have) a majority interest in the company; and—
a company is a relevant controlled foreign company if Chapter IV of Part XVII of the Taxes Act 1988 applies in relation to the accounting period of the company which constitutes the accrual period or in which the accrual period falls;
paragraph 4(3) of Schedule 24 to that Act (majority interest) applies for the purposes of this sub-paragraph.
Regulations may include provision—
that prescribed conditions shall be treated as fulfilled in prescribed circumstances (subject to any provision under paragraph (b) below);
that prescribed conditions shall be treated as not having been fulfilled if the inspector gives notification that he is not satisfied that they are fulfilled;
for an appeal from the inspector’s notification;
for a notification to be given to the company or companies making the election.
Regulations may be so framed that the accrued amount as regards a day depends on the extent to which a liability is matched.
Regulations may also provide as mentioned in one or more of the following paragraphs—
that a chargeable gain (or chargeable gains) shall be treated as accruing to a relevant person for the purposes of the Taxation of Chargeable Gains Act 1992;
that an allowable loss (or allowable losses) shall be treated as accruing to a relevant person for the purposes of that Act;
that the operation of that Act as regards a relevant person shall be otherwise adjusted in accordance with prescribed rules (whether the adjustment results in the incidence of tax on the person being greater or smaller).
For the purposes of sub-paragraph (10) above each of the following is a relevant person—and a matched asset is an asset which has at any time been to any extent matched with a liability in pursuance of an election.
the company mentioned in sub-paragraph (1) above;
any person who has at any time acquired a matched asset (or part of a matched asset) since the company acquired it;
Regulations may make provision—
as to the occasion on which a chargeable gain or allowable loss mentioned in sub-paragraph (10) above is to be treated as accruing, as to the amount to be treated as the amount of the gain or loss, and as to other matters relating to the gain or loss;
as to the timing and extent of any adjustment mentioned in sub-paragraph (10)(c) above and as to other matters relating to the adjustment.
Currency contracts: matching
Regulations may provide that where—the amount of the gain or loss shall be found in accordance with the alternative method of calculation.
as regards a contract an initial exchange gain or initial exchange loss accrues to a company for an accrual period under section 126(5) of this Act or would so accrue apart from regulations under this Schedule,
the relevant duty is eligible to be matched on any day in the accrual period with an asset held by the company, and such other conditions as may be prescribed are fulfilled, and
an election is made in accordance with the regulations to match the duty with the asset on any such day and the election has effect by virtue of the regulations,
Regulations may also provide that as regards any day in respect of which an election has effect the accrued amount shall be ascertained in accordance with prescribed rules.
The reference in sub-paragraph (1) above to the relevant duty is to the duty to which, under the contract, the company becomes subject as regards the second currency (within the meaning given by section 126 of this Act).
Where regulations are made under this paragraph, sub-paragraphs (3) to (12) of paragraph 4 above shall apply as they apply where regulations are made under that paragraph; but in the application of those sub-paragraphs by virtue of this sub-paragraph—
the references to a liability in sub-paragraphs (3), (4), (9) and (11) shall be construed as references to a duty,
the references to liabilities in sub-paragraphs (3) and (4) shall be construed as references to duties, and
the reference in sub-paragraph (11)(a) to sub-paragraph (1) of paragraph 4 shall be construed as a reference to sub-paragraph (1) above.
Combination of circumstances
This paragraph applies where regulations under more than one of paragraphs 2 to 4 above apply—
as regards the same asset or liability, and
for the same accrual period.
Regulations may provide that, as regards any day falling within the period and identified in accordance with prescribed rules, the accrued amount shall be ascertained in accordance with rules prescribed under this paragraph (rather than provisions made under any of those paragraphs).
This paragraph applies where regulations under both paragraph 2 and paragraph 4A above apply—
as regards the same contract, and
for the same accrual period.
Regulations may provide that, as regards any day falling within the period and identified in accordance with prescribed rules, the accrued amount shall be ascertained in accordance with rules prescribed under this paragraph (rather than provisions made under either of those paragraphs).
Arm’s length test
Where regulations make provision under any of the relevant paragraphs, they may provide that for the purposes of section 136(11) of this Act amounts X and Y shall be found without regard to matters which are prescribed and would otherwise have had to be taken into account under the regulations ; and the relevant paragraphs are paragraphs 2, 3, 4 and 5 above..
Local currency
General
Regulations may be so framed that the accrued amount as regards a day is nil (so that, depending on the circumstances, an initial exchange gain or initial exchange loss may be extinguished).
Regulations may make different provision about exchange gains (on the one hand) and exchange losses (on the other).
Exchange gains and losses: transitionals
Introduction
For the purposes of this Schedule an existing asset, liability or contract is an asset, liability or contract to which this Chapter applies by virtue of section 165(2) or (3) of this Act or by virtue of regulations under section 165(4) of this Act.
General provision
Regulations may make such provision as the Treasury think fit with regard to the application of this Chapter to an existing asset, liability or contract (such as provision for finding the basic valuation of an asset or liability).
Nothing in the following provisions of this Schedule shall prejudice the generality of sub-paragraph (1) above.
Attributed gain or loss
Regulations may provide that—
an amount found in accordance with prescribed rules shall be attributed to an existing asset or liability, and
the amount shall be characterised as a gain or loss in accordance with prescribed rules.
The regulations may provide that an attributed gain or loss shall be set off against exchange losses or exchange gains accruing as regards the asset or liability; and for this purpose—
an exchange gain is an exchange gain of a trade or an exchange gain of part of a trade or a non-trading exchange gain;
an exchange loss is an exchange loss of a trade or an exchange loss of part of a trade or a non-trading exchange loss.
The regulations may provide that if an event of a prescribed description occurs as regards the asset or liability at a time falling on or after the commencement day of the company concerned and at a time when all or part of an attributed gain or loss is outstanding—
an initial exchange gain or initial exchange loss of an amount found in accordance with prescribed rules shall be treated as accruing to the company as regards the asset or liability, or
a chargeable gain or allowable loss of an amount found in accordance with prescribed rules shall be treated as accruing to the company as regards the asset or liability for the purposes of the Taxation of Chargeable Gains Act 1992.
The regulations may provide that where—the loss shall not be treated as accruing and relief of an amount equal to it shall be given to the company in such form and manner as may be prescribed.
apart from provision under this sub-paragraph, an allowable loss would be treated as accruing by virtue of provision made under sub-paragraph (3)(b) above, and
the company concerned makes an election in accordance with prescribed rules,
The regulations may provide that where provision under this paragraph has effect the outstanding attributed gain or loss shall be treated as reduced or extinguished.
The regulations may make provision—
as to the time when an initial exchange gain or initial exchange loss is to be treated as accruing and as to the extent to which it is to be treated as an exchange gain or loss of a trade or of part of a trade or as a non-trading exchange gain or loss;
as to the occasion on which a chargeable gain or allowable loss is to be treated as accruing;
as to other matters relating to setting off against, or the accrual of, gains or losses as mentioned in this paragraph.
Adjustment of exchange gain or loss
Regulations may provide that where an exchange gain or exchange loss accrues to a company as regards an existing asset or liability (or would so accrue apart from the regulations)—
the amount of the gain or loss shall be deemed to be increased in accordance with prescribed rules,
the amount of the gain or loss shall be deemed to be reduced in accordance with prescribed rules, or
the gain or loss shall be deemed not to accrue.
For the purposes of this paragraph—
an exchange gain is an exchange gain of a trade or an exchange gain of part of a trade or a non-trading exchange gain;
an exchange loss is an exchange loss of a trade or an exchange loss of part of a trade or a non-trading exchange loss.
The regulations may be framed by reference to—and for this purpose exchange differences are gains and losses attributable to fluctuations in currency exchange rates.
exchange differences arising as regards the asset or liability at any time while the company actually holds or owes it (whether any such time falls before, on or after the company’s commencement day);
such other factors as the Treasury think fit;
The regulations may include provision designed to prevent provision under them being avoided by the replacement (or partial replacement) of assets or liabilities by other assets or liabilities.
Allowable losses
Regulations may provide that where—the loss shall be set off against exchange gains accruing to the company.
an allowable loss of a prescribed description has accrued to a qualifying company for the purposes of the Taxation of Chargeable Gains Act 1992,
the loss has accrued before the company’s commencement day,
all or part of the loss has not been allowed as a deduction under that Act, and
prescribed conditions (whether relating to the making of a claim or otherwise) are fulfilled,
For the purposes of this paragraph an exchange gain is an exchange gain of a trade or an exchange gain of part of a trade or a non-trading exchange gain.
The regulations may provide that the loss may only be set off—
to the extent that it has not been allowed as a deduction under the Taxation of Chargeable Gains Act 1992;
against exchange gains accruing as regards assets or liabilities of a prescribed description.
The regulations may include rules for ascertaining whether an allowable loss of a prescribed description has or has not been allowed as a deduction under the Taxation of Chargeable Gains Act 1992.
Miscellaneous
Regulations may provide—
that provision under paragraph 3 above or provision under paragraph 4 above or provision under neither of them shall apply in the case of an asset or liability according to the circumstances of the case;
that provision under paragraph 3(3)(a) above or provision under paragraph 3(3)(b) above shall apply in the case of an asset or liability according to the circumstances of the case.
The circumstances may be framed by reference to—and for this purpose exchange differences are gains and losses attributable to fluctuations in currency exchange rates.
whether, and how, exchange differences arising as regards the asset or liability would be taken into account for tax purposes apart from this Chapter;
such other factors as the Treasury think fit;
Exchange gains and losses: chargeable gains
Introduction
In this Schedule “the 1992 Act” means the Taxation of Chargeable Gains Act 1992.
Currency
In a case where—for the purposes of that Act no chargeable gain or allowable loss shall accrue on the disposal.
there is for the purposes of the 1992 Act a disposal of currency other than sterling by a qualifying company, and
immediately before the disposal the company did not hold the currency in exempt circumstances (within the meaning given by paragraph 3 below),
This paragraph applies to disposals on or after the company’s commencement day.
For the purposes of paragraph 2 above a company holds currency in exempt circumstances at a given time if—
the purposes for which it then holds the currency are or include any of the purposes mentioned in sub-paragraph (2) below,
it is a housing association approved at that time for the purposes of section 488 of the Taxes Act 1988, or
it is a self-build society approved at that time for the purposes of section 489 of that Act.
The purposes referred to in sub-paragraph (1)(a) above are—
the purposes of long-term insurance business;
the purposes of mutual insurance business;
the purposes of the occupation of commercial woodlands.
In this paragraph—“long-term insurance business” means business which consists of the effecting or carrying out of contracts which fall within Part II of Schedule 1 to the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001;“commercial woodlands” means woodlands in the United Kingdom which are managed on a commercial basis and with a view to the realisation of profits.
Debts other than securities
Debts on securities: disposals
Debts on securities: relief
Reconstructions, groups etc.
This paragraph applies where there is for the purposes of the 1992 Act a disposal or acquisition of an asset which is—
currency,
a debt which is not a debt on a security and the right to settlement under which is a qualifying asset,
a security (as defined in section 132 of the 1992 Act) where the right to settlement under the debt on the security is a qualifying asset, or
an obligation which by virtue of section 143 of the 1992 Act (futures and options) is regarded as an asset to the disposal of which that Act applies and which is a duty under a currency contract.
In a case where—the section concerned shall not apply as regards the disposal and the corresponding acquisition or (as the case may be) shall not apply as regards the acquisition and the corresponding disposal.
the condition mentioned in sub-paragraph (3) below is fulfilled, and
The condition is that stated in paragraph (a) or (b) below (as the case may be)—
the disposal is by a qualifying company and immediately before the disposal the asset is held wholly for qualifying purposes;
the acquisition is by a qualifying company and immediately after the acquisition the asset is held wholly for qualifying purposes.
For the purposes of this paragraph qualifying purposes are purposes which constitute one or both of the following—and “long-term insurance business” means business which consists of the effecting or carrying out of contracts which fall within Part II of Schedule 1 to the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001.
purposes of long-term insurance business;
purposes of mutual insurance business;
This paragraph applies where the disposal or acquisition (as the case may be) is made on or after the commencement day of the company mentioned in sub-paragraph (3)(a) or (b) above (as the case may be).
Indexation allowance
Exchange gains and losses: amendments
Taxes Management Act 1970 (c. 9)
In section 87A of the Taxes Management Act 1970 (interest on overdue tax for accounting periods ending after appointed day) the following subsection shall be inserted after subsection (4)—
Income and Corporation Taxes Act 1988 (c. 1)
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In section 407 of the Taxes Act 1988 (relationship between group relief and other relief) in subsection (2) at the end of paragraph (b) there shall be inserted “ and ”, and after that paragraph there shall be inserted—
In section 826 of the Taxes Act 1988 (interest on tax overpaid) the following subsection shall be inserted after subsection (7B)—
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Finance Act 1989 (c. 26)
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Lloyd’s underwriters: assessment and collection of tax
Determination of a syndicate’s profit or loss
Preliminary
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Returns by managing agent
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Determinations by inspector
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Appeals
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Modification of determinations pending appeal
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Apportionments of syndicate’s profit or loss
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Individual members: effect of determinations
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Assessment of individual members: time limits
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Payments on account of tax
Preliminary
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Returns by members’ agent
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Payments on account of tax
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Assessment on members’ agent
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Repayment of tax deducted etc. from investment income
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Lloyd’s underwriters: special reserve funds
Requirements for and tax consequences of new-style funds
Preliminary
In this Part of this Schedule—“the arrangements” means the arrangements mentioned in section 175(1) of this Act;“cash call” means a request for funds which, in pursuance of a contract made in accordance with the rules and practices of Lloyd’s, is made to a member by the agent of a syndicate of which he is a member;“overall premium limit”, in relation to a member and an underwriting year, means the maximum amount which, under the rules of Lloyd’s, the member may accept by way of premiums in that year;“payment”, unless the contrary intention appears, means a payment in money;“stop-loss payment” means a payment of insurance money under a stop-loss insurance or a payment out of the High Level Stop Loss Fund;“syndicate profit”, in relation to a member and an underwriting year, means the amount by which the aggregate of his profits exceeds the aggregate of his losses for the year, and “syndicate loss” shall be construed accordingly.
For the purposes of the definitions of “syndicate profit” and “syndicate loss” in sub-paragraph (1) above—
any reference to profits or losses of a member is a reference to profits or losses which, in the accounts of the syndicates of which he is a member, are shown as arising to him, . . .
any payments under paragraph 3(1), 4(1), (2), (3) or (6), 5(1), (4) or (7) or 6(2) below shall be disregarded.
where the accounts of a syndicate remain open beyond the end of the underwriting year which is the closing year for that syndicate, profits or losses shown in the accounts of the syndicate as arising to a member in any subsequent underwriting year shall be profits or losses of the member for the last underwriting year but one preceding that subsequent underwriting year.
General requirements
The arrangements must provide—and in this sub-paragraph “authorised” means authorised under the rules of Lloyd’s.
for the setting up, in relation to any member, of a special reserve fund vested in one or more trustees who have control over it, and
for the appointment of an authorised fund manager (who may be the trustees or one of the trustees) to invest the capital of the fund and to vary the investments;
The arrangements must be such as to secure that—
any income arising to the trustee or trustees of the special reserve fund shall be added to the capital of the fund and held on the same trusts as the fund; and
except as required or permitted by this Schedule, no payments shall be made into or out of the special reserve fund.
Payments into fund out of syndicate profits
The arrangements must be such as to secure that, if the member has made a syndicate profit for an underwriting year, he has the right to make, into his special reserve fund, payments the amount of which is not in the aggregate greater than whichever of the following is the less, namely—
50 per cent. of that profit; and
the amount (if any) by which 50 per cent. of the member’s overall premium limit for the closing year exceeds the value of the fund as at the end of that year.
Any payments which a member is entitled to make by virtue of sub-paragraph (1) above must be made before the end of such period as may be prescribed.
Where the member did not accept premiums in the closing year, the reference in sub-paragraph (1)(b) above to the member’s overall premium limit for that year shall be construed as a reference to that limit for the latest underwriting year in which he did so.
Payments out of fund to cover cash calls
The arrangements must be such as to secure that, if a cash call is made on the member in respect of an underwriting year, there shall be made into a premium trust fund of his, out of his special reserve fund, payments the amount of which is equal in the aggregate to the amount of the call, or the amount of his special reserve fund, whichever is the less.
References in sub–paragraph (1) above to a cash call include references to a cash call made in respect of an underwriting year determined by paragraph 1(2)(c) above (“the relevant cash call”) if and to the extent that the aggregate amount of the relevant cash call and any previous cash calls made on the member in respect of the syndicate concerned exceeds the net amount of losses arising to the member from that syndicate which have been declared before the date of the relevant cash call after deducting the amount of profits arising to him from that syndicate which have been so declared.
Where the aggregate amount of any payments made under sub-paragraph (1) above in respect of any year is found to exceed the amount of the member’s syndicate loss for the year, there shall be made into his special reserve fund, out of a premium trust fund or ancillary trust fund of his, payments the amount of which is equal in the aggregate to the amount of the excess.
Where a stop-loss payment is made to the member in respect of his syndicate loss for any year, so much of the stop-loss payment as does not exceed the requisite amount shall be paid into his special reserve fund.
In sub-paragraph (3) above “the requisite amount” means so much of the amount (if any) given by sub-paragraph (5) below as does not exceed the aggregate amount mentioned in paragraph (b) of that sub-paragraph.
The amount given by this sub-paragraph is the amount by which—exceeds in the aggregate the amount of the member’s syndicate loss.
the amount of the stop-loss payment, and
the aggregate amount of the payments under sub-paragraph (1) above as reduced by the aggregate amount of any payments under sub-paragraph (2) above,
Where the whole or any part of a stop-loss payment made to a member is repaid, there shall be made to the member or his personal representatives or assigns, out of his special reserve fund, payments the amount of which is equal in the aggregate to the amount (if any) to which sub-paragraph (7) below applies or the amount of his special reserve fund, whichever is the less.
This sub-paragraph applies to any amount which—
has been paid into the member’s special reserve fund under sub-paragraph (2) or (3) above, but
would not have been so paid but for the stop-loss payment or (as the case may be) the part repaid.
Any payments required by sub-paragraph (1), (2), (3) or (6) above shall be made before the end of such period as may be prescribed.
Payments out of fund to cover syndicate losses
The arrangements must be such as to secure that, if the member has sustained a syndicate loss for an underwriting year, there shall be made into a premium trust fund of his, out of his special reserve fund, payments the amount of which is equal in the aggregate to the net amount of the loss or the amount of his special reserve fund, whichever is the less.
Sub-paragraphs (3) and (4) below apply where a stop-loss payment is made to the member in respect of his syndicate loss for any year.
If any payments are subsequently made for the year under sub-paragraph (1) above, the aggregate amount of those payments shall be determined as if the net amount of the syndicate loss were reduced by the amount of the stop-loss payment.
If any payments have previously been made for the year under sub-paragraph (1) above, so much of the stop-loss payment as does not exceed the requisite amount shall be paid into his special reserve fund.
In sub-paragraph (4) above “the requisite amount” means so much of the amount (if any) given by sub-paragraph (6) below as does not exceed the amount mentioned in paragraph (b) of that sub-paragraph.
The amount given by this sub-paragraph is the amount by which—exceeds in the aggregate the net amount of the member’s syndicate loss.
the amount of the stop-loss payment, and
the aggregate amount of the payments made under sub-paragraph (1) above,
Where the whole or any part of a stop-loss payment made to a member is repaid, there shall be made to the member or his personal representatives or assigns, out of his special reserve fund, payments the amount of which is equal in the aggregate to the aggregate of the amounts (if any) to which sub-paragraphs (8) and (9) below apply or the amount of his special reserve fund, whichever is the less.
This sub-paragraph applies to any amount which—
has not been paid out of the member’s special reserve fund under sub-paragraph (1) above, but
would have been so paid but for the stop-loss payment or (as the case may be) the part repaid.
This sub-paragraph applies to any amount which—
has been paid into the member’s special reserve fund under sub-paragraph (4) above, but
would not have been so paid but for the stop-loss payment or (as the case may be) the part repaid.
Any payments required by sub-paragraph (1), (4) or (7) above shall be made before the end of such period as may be prescribed.
In this paragraph “net amount”, in relation to a member’s syndicate loss for any year, means the amount of the loss as reduced by the amount of any payments made under paragraph 4(1) above for the year.
Valuation and payments out of fund of excess amounts
The arrangements must be such as to secure that the fund manager of a member’s special reserve fund—and the report shall also state such other matters as may be prescribed.
shall determine in the prescribed manner the value of the fund as at the end of the year 1994 and each subsequent underwriting year; and
shall report the value so determined to the member;
If the value (determined under sub-paragraph (1) above) of the fund as at the end of any underwriting year exceeds 50 per cent. of—there shall be made to the member or his personal representatives or assigns, out of his special reserve fund, payments the amount of which is equal in the aggregate to the excess.
the higher of—
the member’s overall premium limit for that year, and
his overall premium limit for the immediately preceding year; or
where he did not accept premiums in either of those years, his overall premium limit for the last underwriting year in which he did so,
The payments required by sub-paragraph (2) above shall be made before the end of such period as may be prescribed.
Payments out of fund on cessation
The arrangements must provide that, on the member ceasing to carry on his underwriting business, whether by reason of death or otherwise, the amount of his special reserve fund, so far as not required for giving effect to the requirements of paragraph 4 or 5 above, shall be paid over to the member or his personal representatives or assigns.
For the purposes of sub-paragraph (1) above, a payment of an amount shall be in money or in assets forming part of the fund or both, as the member or his personal representatives or assigns may direct.
Entitlement of member for tax purposes
Subject to sub-paragraph (2) and paragraph 11(2)-(4) below, a member shall be treated for the purposes of the Income Tax Acts and the Gains Tax Acts as absolutely entitled as against the trustees to the assets forming part of his special reserve fund.
Where an asset is disposed of by a member to the trustees of his special reserve fund, nothing in sub-paragraph (1) above shall affect the operation of the Gains Tax Acts in relation to that disposal.
Tax exemption for profits arising from assets of fund
Profits or losses arising from assets forming part of a special reserve fund shall be excluded for the purposes of income tax under the Income Tax Acts, and for the purposes of capital gains tax under the Gains Tax Acts.
Where for any underwriting year income tax has been deducted from any profits arising from assets forming part of a special reserve fund, the fund manager may, at any time after the end of that year, claim repayment of that tax.
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Tax consequences of payments into and out of fund
In computing for the purposes of income tax the profits of a member’s underwriting business for any year of assessment, the aggregate amount of any payments which, in respect of the relevant underwriting year, are made into his special reserve fund under paragraph 3(1) above shall be deducted as an expense.
In computing for the purposes of income tax the profits of a member’s underwriting business for any year of assessment—
the aggregate amount of any payments which, in respect of the relevant underwriting year, are made out of his special reserve fund under paragraph 4(1) or 5(1) above shall be treated as a trading receipt; and
the aggregate amount of any payments which, in respect of that year, are made into that fund under paragraph 4(2) or (3) or 5(4) above shall be deducted as an expense.
In computing for the purposes of income tax the profits of a member’s underwriting business for any year of assessment, the aggregate amount of any payments which, as a result of the repayment of stop-loss payments in the relevant underwriting year, are made out of his special reserve fund under paragraph 4(6) or 5(7) above shall be treated as a trading receipt.
In computing for the purposes of income tax the profits of a member’s underwriting business for any year of assessment, the aggregate amount of any payments which, in respect of the relevant underwriting year’s closing year, are made out of his special reserve fund under paragraph 6(2) above(including where they are also made under paragraph 7(1) above) shall be treated as a trading receipt.
In this paragraph “the relevant underwriting year”, in relation to a year of assessment, means the underwriting year next but two before its corresponding underwriting year.
Tax consequences of cessation
in a case where the asset was held by the trustees at the end of the penultimate underwriting year, as an acquisition of the asset by the member or his personal representatives or assigns at the end of that year for a consideration equal to its market value at that time; in a case where the asset was acquired by the trustees after the end of the penultimate underwriting year, as an acquisition of the asset by the member or his personal representatives or assigns, at the date on which, and for the consideration for which, the asset was acquired by the trustees; and in a case where the asset was both acquired by the trustees and transferred by them to the member or his personal representatives or assigns before the end of the penultimate underwriting year, as an acquisition of the asset by the member or his personal representatives or assigns at the date of the transfer and for a consideration equal to its market value at that time.“the relevant underwriting year” means—where a member dies before the occurrence of any of the events specified in sub–paragraph (6) below, the underwriting year immediately preceding that corresponding to the relevant year of assessment; and in any other case, the underwriting year corresponding to the year of assessment immediately preceding the member’s final year of assessment.“the relevant year of assessment” means—where a member dies before the occurrence of any of the events specified in sub-paragraph (6) below, the year of assessment at the end of which he is treated, by virtue of section 179A(2) of this Act, as having died; in any other case, his final year of assessment.
This paragraph applies where a member ceases to carry on his underwriting business,whether by reason of death or otherwise.
In computing for the purposes of income tax the profits of the member’s underwriting business for the relevant year of assessment, any payment under paragraph 7(1) above (except where they are also made under paragraph 6(2) above) which is made to him or his personal representatives or assigns out of his special reserve fund shall be treated—
subject to sub-paragraph (2A) below, as made immediately after the end of the relevant underwriting year; and
as being a single trading receipt of an amount equal to that mentioned in sub-paragraph (3) below.
Where the member ceases to carry on his underwriting business by reason of his death, any payment falling within sub-paragraph (2) above shall be treated, for the purposes of sections 59C and 86 of the Management Act, as if made immediately after the commencement of his final year of assessment.
The amount referred to in sub-paragraph (2) above is the value of the fund, as determined under paragraph 6(1) above for the penultimate underwriting year and—
as reduced by the aggregate amount of any payments under paragraph 4(1) or (6) or 5(1) or (7) above made after the end of that year;
as increased by the aggregate amount of any payments under paragraph 3(1), 4(2) or (3) or 5(4) above so made; . . .
as increased by the amount of any tax repayment . . . under paragraph 9(2) . . . above after the end of that year.
as increased by an amount equal to any profits, and reduced by an amount equal to any losses, arising to the trustees from assets after the end of that year (excluding any gains or losses on assets whose transfer is treated as an acquisition by sub-paragraph (4)(a) or (b) below); and
as increased by the aggregate amount of any payments made—and for this purpose the amount of any payment which is made by way of the transfer of an asset shall be taken to be the market value of the asset at the date of the transfer and “market value” shall be construed in accordance with section 272 of the Taxation of Chargeable Gains Act 1992.
by the trustees to the member or his personal representatives or assigns,
out of his special reserve fund under paragraph 7(1) above (except where they are also made under paragraph 6(2) above), or otherwise than out of his special reserve fund, and
before the end of that year,
Where an asset is transferred to the member or his personal representatives or assigns under paragraph 7(1) above or otherwise than out of his special reserve fund, the transfer shall be treated, for the purposes of the Gains Tax Acts —
In this paragraph, subject to the provisions of any regulations made by the Board—“the penultimate underwriting year” means the underwriting year corresponding to the year of assessment immediately preceding the member’s final year of assessment;
For the purposes of the definitions of “the relevant underwriting year” and “the relevant year of assessment” in sub–paragraph (5) above the events specified before the occurrence of which a member dies are the following—
the member’s deposit at Lloyd’s is paid over to him or his assigns, or to a person other than the member or his assigns;
the member or another person is released from any arrangement entered into by the member or that person in order to satisfy the requirement on the part of the member to provide a deposit at Lloyd’s;
the last open year of account of any syndicate of which he was a member is closed.
For the purposes of sub–paragraph (6)(c) above, the last open year of account of any syndicate of which a person was a member shall be regarded as having closed either—
when the member is treated under the rules or practice of Lloyd’s as having been discharged of all his liabilities in relation to that syndicate, whether by the syndicate closing its accounts or by the member or his personal representatives or assigns entering into a quota share contract, or
in a case where the member entered, or his personal representatives or assigns have entered, into a quota share contract before the end of the closing year of the syndicate, at the end of the underwriting year in which the contract was made.
Winding up of old-style funds
Preliminary
In this Part of this Schedule—“new-style fund” means a special reserve fund set up under the arrangements mentioned in section 175(1) of this Act;“old-style fund” means a special reserve fund set up under the arrangements mentioned in section 452(1) of the Taxes Act 1988;“the relevant period”, in relation to an old-style fund, means the period of three months beginning with the closing date.
For the purposes of sub-paragraph (1) above, the closing date for an old-style fund shall be the earliest date on which each of the following has occurred as respects the year 1991-92 and earlier years of assessments, namely—
the time for making any payments into the fund under section 452(5) of the Taxes Act 1988 has expired, or the member has given notice to the inspector that he will not be making any (or any further) such payments; and
any payments required by section 453(1) of that Act to be made out of the fund have been so made.
Winding up of old-style funds
A member may, at any time before the end of the relevant period, direct that so much of the capital of any old-style fund of his as represents sums paid into it under section 452(5) of the Taxes Act 1988 shall be transferred, at the end of that period, into his new-style fund; . . .
Where an amount of capital is transferred into a member’s new-style fund under sub-paragraph (1) above, there shall be paid into that fund by the Board an amount equal to the amount of tax which, if the amount transferred were a net amount corresponding to a gross amount from which income tax had been duly deducted at the basic rate for the year 1992-93, would have been so deducted.
If a member does not give a direction under sub-paragraph (1) above in relation to any old-style fund of his, so much of the capital of that fund as represents sums paid into it under section 452(5) of the Taxes Act 1988 shall be paid over, at the end of the relevant period, to the member or his personal representatives or assigns.
In either event, the remaining capital of any old-style fund of a member shall be paid over, at the end of the relevant period, to the member or his personal representatives or assigns.
For the purposes of sub-paragraphs (1) and (3) above, any payments made out of an old-style fund under section 453(1) of the Taxes Act 1988 shall be treated as having been met, so far as possible, out of payments made into the fund under section 452(5) of that Act.
A transfer or payment under this paragraph of an amount of capital shall be in money or in assets forming part of the fund or both, as the member may direct.
Tax consequences of winding up
Where an asset is transferred into a member’s new-style fund under paragraph 13(1) above, the transfer shall be treated, for the purposes of the Gains Tax Acts, to be a disposal of the asset by the member for a consideration equal to its market value.
Sub-paragraph (3) below applies where an amount is paid over to the member or his personal representatives or assigns under paragraph 13(3) above.
In computing for the purposes of income tax the profits of the member’s underwriting business for the year 1992-93, it shall be assumed—
that the amount paid were a net amount corresponding to a gross amount from which income tax had been duly deducted at the basic rate for that year; and
that the corresponding gross amount were a trading receipt for that year.
Lloyd’s underwriters: conversion to underwriting through partnership or company
Conversion to underwriting through successor companies
Introduction
This Part of this Schedule applies if the following conditions are satisfied.
Condition 1 is that—
a member gives notice of his resignation from membership of Lloyd’s in accordance with the rules or practice of Lloyd's,
in accordance with such rules or practice, the member does not undertake any new insurance business at Lloyd’s after the end of the member’s last underwriting year, and
the member does not withdraw that notice.
Condition 2 is that all of the member’s outstanding syndicate capacity is disposed of by the member under a conversion arrangement to a successor company (“the syndicate capacity disposal”) with effect from the beginning of the underwriting year next following the member’s last underwriting year.
Condition 3 is that, immediately before the syndicate capacity disposal,—
the member controls the successor company, and
more than 50% of the ordinary share capital of the successor company is beneficially owned by the member.
Condition 4 is that the syndicate capacity disposal is made in consideration solely of the issue to the member of shares in the successor company.
Condition 5 is that the successor company starts to carry on its underwriting business in the underwriting year... next following the member’s last underwriting year.
In this paragraph “the member’s last underwriting year”, in relation to a member who gives notice of his resignation from membership of Lloyd's, means the underwriting year during which, or at the end of which, he ceases to be an underwriting member and becomes a non-underwriting member in accordance with the rules or practice of Lloyd's.
In this paragraph “outstanding syndicate capacity”, in relation to a member, means the syndicate capacity of the member other than any which—
the member disposes of to a person other than a successor member at or before the end of the member’s last underwriting year, or
ceases to exist with effect from the end of that year.
Income tax: carry forward of loss relief following conversion
This paragraph applies if—
the member’s total income for a year of assessment includes any income derived by the member from the successor company (whether by way of dividends on the shares issued to the member or otherwise), and
throughout the period beginning with the time of the syndicate capacity disposal and ending with the end of that year of assessment,—
the member controls the successor company, and
more than 50% of the ordinary share capital of the successor company is beneficially owned by the member.
Section 83 of ITA 2007 shall apply as if the income so derived were profits on which the member was assessed under Part 2 of the Income Tax (Trading and Other Income) Act 2005 in respect of the member’s underwriting business for that year.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Capital gains tax: roll-over relief on disposal of syndicate capacity
This paragraph applies if—
the aggregate of any chargeable gains accruing to the member on the syndicate capacity disposal exceeds the aggregate of any allowable losses accruing to him on that disposal, and
the member makes a claim under this paragraph to an officer of the Board.
The amount of the excess mentioned in sub-paragraph (1)(a) above (“the amount of the syndicate capacity gain”) shall for the purposes of capital gains tax be reduced by the amount of the rolled-over gain.
For the purpose of computing any chargeable gain accruing to the member on a disposal by him of any issued share or any asset directly or indirectly derived from any issued share—and if the issued shares are not all of the same class, the apportionment between the shares under paragraph (a) above shall be in accordance with their market values at the time they were acquired by the member.
the amount of the rolled-over gain shall be apportioned between the issued shares as a whole, and
the sums allowable as a deduction under section 38(1)(a) of the Gains Tax Act shall be reduced by the amount apportioned to the issued share under paragraph (a) above; but, in the case of a derived asset, the reduction shall be by an appropriate proportion of that amount;
In this paragraph “the amount of the rolled-over gain” means the lesser of—
the amount of the syndicate capacity gain, and
the aggregate amount of any sums which would be allowable as a deduction under section 38(1)(a) of the Gains Tax Act if the issued shares were disposed of as a whole by the member in circumstances giving rise to a chargeable gain.
In this paragraph the “issued shares” means the shares in the successor company issued to the member in consideration for the syndicate capacity disposal.
Capital gains tax: roll-over relief on disposal of assets of ancillary trust fund
This paragraph applies if—
at the time of, or after, the syndicate capacity disposal, assets forming some or all of the member’s ancillary trust fund are—
withdrawn from the fund, and
without unreasonable delay, disposed of by him to the successor company (the “ATF disposal”),
the aggregate of any chargeable gains accruing to the member on the ATF disposal exceeds the aggregate of any allowable losses accruing to him on that disposal,
throughout the period beginning with the time of the syndicate capacity disposal and ending with the time of the ATF disposal,—
the member controls the successor company, and
more than 50% of the ordinary share capital of the successor company is beneficially owned by the member,
the ATF disposal is made in consideration solely of the issue to the member of shares (the “issued shares”) in the successor company, and
the member makes a claim under this paragraph to an officer of the Board.
But this paragraph does not apply if—
the member could have made a claim under paragraph 3 above, and
at the time the member makes a claim under this paragraph, no claim under paragraph 3 above is or has been made by him.
The amount of the excess mentioned in sub-paragraph (1)(b) above (“the amount of the ATF assets gain”) shall for the purposes of capital gains tax be reduced by the amount of the rolled-over gain.
For the purpose of computing any chargeable gain accruing to the member on a disposal by him of any issued share or any asset directly or indirectly derived from any issued share—and if the issued shares are not all of the same class, the apportionment between the shares under paragraph (a) above shall be in accordance with their market values at the time they were acquired by the member.
the amount of the rolled-over gain shall be apportioned between the issued shares as a whole, and
the sums allowable as a deduction under section 38(1)(a) of the Gains Tax Act shall be reduced by the amount apportioned to the issued share under paragraph (a) above; but, in the case of a derived asset, the reduction shall be by an appropriate proportion of that amount;
In this paragraph “the amount of the rolled-over gain” means the lesser of—
subject to sub-paragraph (6) below, the amount of the ATF assets gain, and
the aggregate amount of any sums which would be allowable as a deduction under section 38(1)(a) of the Gains Tax Act if the issued shares were disposed of as a whole by the member in circumstances giving rise to a chargeable gain.
If the market value, immediately before the ATF disposal, of the assets disposed of under that disposal exceeds 120% of the amount of the ATF assets required, the amount of the ATF assets gain shall for the purposes of sub-paragraph (5)(a) above be reduced by multiplying it by—R T where—R is the amount of the ATF assets required, and T is the market value, immediately before the ATF disposal, of the assets disposed of under that disposal.
In sub-paragraph (6) above “the amount of the ATF assets required” means the appropriate percentage of the amount of security required to be provided by the successor company in respect of its underwriting business in the underwriting year in which the ATF disposal is made.
In sub-paragraph (7) above “the appropriate percentage” means the percentage that equates to the percentage of the ordinary share capital of the successor company that is beneficially owned by the member immediately before the ATF disposal.
This paragraph applies only on the first occasion on or after 6th April 2004 on which the member makes an ATF disposal.
If a claim made by the member under paragraph 3 above is revoked, this paragraph shall apply as if the claim had never been made.
Interpretation of this Part of this Schedule
“control” shall be construed in accordance with sections 450 and 451 of the Corporation Tax Act 2010;“ordinary share capital” has the meaning given by section 989 of ITA 2007;“successor company” means a corporate member (within the meaning of Chapter 5 of Part 4 of the Finance Act 1994) which is a successor member;. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .“the syndicate capacity disposal” has the meaning given by paragraph 1(3) above;“underwriting business”, in relation to a successor company, has the same meaning as in Chapter 5 of Part 4 of the Finance Act 1994.
In this Part of this Schedule—
For the purposes of this Part of this Schedule, shares comprised in any letter of allotment or similar instrument shall be treated as issued unless—
the right to the shares conferred by it remains provisional until accepted, and
there has been no acceptance.
Paragraphs 3 and 4 above (and paragraph 1 above so far as relating to those paragraphs) are to be construed as one with the Gains Tax Act.
CONVERSION OF PARTNERSHIPS TO UNDERWRITING THROUGH SUCCESSOR COMPANIES
Introduction
This Part of this Schedule applies if the following conditions are satisfied.
Condition 1 is that—
a Lloyd’s partnership gives notice of its resignation from membership of Lloyd’s in accordance with the rules or practice of Lloyd’s,
in accordance with the rules or practice, the partnership does not undertake any new insurance business at Lloyd’s after the end of the partnership’s last underwriting year, and
the partnership does not withdraw that notice.
Condition 2 is that all of the partnership’s outstanding syndicate capacity is disposed of by the partnership under a conversion arrangement to a successor company (the “syndicate capacity disposal”) with effect from the beginning of the underwriting year next following the partnership’s last underwriting year.
Condition 3 is that, immediately before the syndicate capacity disposal,—
the converting partners together control the successor company, and
the ordinary share capital of the successor company is beneficially owned by the converting partners in the same, or as nearly as may be the same, proportions as those in which pursuant to the partnership agreement the converting partners are at that time treated as having interests in the partnership’s syndicate capacity.
For the purposes of sub-paragraph (4)(b), ignore any interest of a person other than a converting partner in the partnership’s syndicate capacity.
Condition 4 is that the syndicate capacity disposal is made in consideration solely of the issue to the converting partners of shares in the successor company.
Condition 5 is that the successor company starts to carry on its underwriting business in the underwriting year... next following the partnership’s last underwriting year.
In this paragraph “the partnership’s last underwriting year”, in relation to a partnership which gives notice of its resignation from Lloyd’s, means the underwriting year during which, or at the end of which, the partnership ceases to be an underwriting member and becomes a non-underwriting member in accordance with the rules or practice of Lloyd’s.
In this paragraph “outstanding syndicate capacity”, in relation to a partnership, means the syndicate capacity of the partnership other than any which—
the partnership disposes of to a person other than a successor member at or before the end of the partnership’s last underwriting year, or
ceases to exist with effect from the end of that year.
Capital gains tax: roll-over relief on disposal of syndicate capacity
This paragraph applies if—
the aggregate of any chargeable gains accruing to a converting partner on the syndicate capacity disposal exceeds the aggregate of any allowable losses accruing to the partner on that disposal, and
the partner makes a claim under this paragraph to an officer of Revenue and Customs.
The amount of the excess mentioned in sub-paragraph (1)(a) above (“the amount of the syndicate capacity gain”) shall for the purposes of capital gains tax be reduced by the amount of the rolled-over gain.
For the purpose of computing any chargeable gain accruing to the partner on a disposal by the partner of any issued share or any asset directly or indirectly derived from any issued share—and if the issued shares are not all of the same class, the apportionment between the shares under paragraph (a) above shall be in accordance with their market values at the time they were acquired by the partner.
the amount of the rolled-over gain shall be apportioned between the issued shares as a whole, and
the sums allowable as a deduction under section 38(1)(a) of the Gains Tax Act shall be reduced by the amount apportioned to the issued share under paragraph (a) above; but, in the case of a derived asset, the reduction shall be by an appropriate proportion of that amount;
In this paragraph “the amount of the rolled-over gain” means the lesser of—
the amount of the syndicate capacity gain, and
the aggregate of any sums which would be allowable as a deduction under section 38(1)(a) of the Gains Tax Act if the issued shares were disposed of as a whole by the partner in circumstances giving rise to a chargeable gain.
In this paragraph the “issued shares” means the shares in the successor company issued to the partner in consideration for the syndicate capacity disposal.
Capital gains tax: roll-over relief on disposal of assets of ancillary trust fund
This paragraph applies if—
at the time of, or after, the syndicate capacity disposal, assets forming some or all of the ancillary trust fund of the Lloyd’s partnership or of a converting partner are—
withdrawn from the fund, and
without unreasonable delay, disposed of by the partnership or partner to the successor company (the “ATF disposal”),
the aggregate of any chargeable gains accruing to a converting partner (the “relevant partner”) on the ATF disposal exceeds the aggregate of any allowable losses available to the relevant partner on that disposal,
throughout the period beginning with the time of the syndicate capacity disposal and ending with the time of the ATF disposal—
the converting partners together control the successor company, and
the proportion of the successor company’s ordinary share capital beneficially owned by the relevant partner is more than 50% of the proportion of that share capital that was beneficially owned by the relevant partner at the time of the syndicate capacity disposal,
the consideration received by the relevant partner on the ATF disposal consists solely of the issue to the relevant partner of shares (the “issued shares”) in the successor company, and
the relevant partner makes a claim under this paragraph to an officer of Revenue and Customs.
But this paragraph does not apply if—
the relevant partner could have made a claim under paragraph 5B above, and
at the time the relevant partner makes a claim under this paragraph, no claim under paragraph 5B above is or has been made by the relevant partner.
The amount of the excess mentioned in sub-paragraph (1)(b) above (“the amount of the ATF assets gain”) shall for the purposes of capital gains tax be reduced by the amount of the rolled-over gain.
For the purpose of computing any chargeable gain accruing to the relevant partner on a disposal by the relevant partner of any issued share or any asset directly or indirectly derived from any issued share—and if the issued shares are not all of the same class, the apportionment between the shares under paragraph (a) above shall be in accordance with their market values at the time they were acquired by the relevant partner.
the amount of the rolled-over gain shall be apportioned between the issued shares as a whole, and
the sums allowable as a deduction under section 38(1)(a) of the Gains Tax Act are reduced by the amount apportioned to the issued share under paragraph (a) above; but, in the case of a derived asset, the reduction shall be by an appropriate proportion of that amount;
In this paragraph “the amount of the rolled-over gain” means the lesser of—
subject to sub-paragraph (6), the amount of the ATF assets gain, and
the aggregate amount of any sums which would be allowable as a deduction under section 38(1)(a) of the Gains Tax Act if the issued shares were disposed of as a whole by the relevant partner in circumstances giving rise to a chargeable gain.
If the market value, immediately before the ATF disposal, of the assets disposed of under that disposal exceeds 120% of the amount of the ATF assets required, the amount of the ATF assets gain shall for the purposes of sub-paragraph (5)(a) be reduced by multiplying it by—R T where—R is the amount of the ATF assets required, and T is the market value, immediately before the ATF disposal, of the assets disposed of under that disposal.
In sub-paragraph (6) above “the amount of the ATF assets required” means the appropriate percentage of the amount of security required to be provided by the successor company in respect of its underwriting business in the underwriting year in which the ATF disposal is made.
In sub-paragraph (7) above “the appropriate percentage” means the percentage that equates to the percentage of the ordinary share capital of the successor company that is beneficially owned by the relevant partner immediately before the ATF disposal.
This paragraph applies—
in relation to assets forming some or all of the Lloyd’s partnership’s ancillary trust fund, only on the first occasion on or after 19th December 2014 on which the partnership makes an ATF disposal, and
in relation to assets forming some or all of a converting partner’s ancillary trust fund, only on the first occasion on or after 19th December 2014 on which the partner makes an ATF disposal.
If a claim made under paragraph 5B is revoked, this paragraph applies as if the claim had never been made.
Interpretation of this Part of this Schedule
In this Part of this Schedule—“ancillary trust fund”—in relation to a Lloyd’s partnership, does not include a premium trust fund but, subject to that, means any trust fund required or authorised by the rules of Lloyd’s, or required by a member’s agent, and in relation to a converting partner, means any trust fund required or authorised by the rules of Lloyd’s in connection with being a partner in, or member of, the partnership, or required by a member’s agent in that connection;“control” is to be construed in accordance with sections 450 and 451 of the Corporation Tax Act 2010;“converting partner”, in relation to a syndicate capacity disposal by a Lloyd’s partnership,—means any person who, immediately before the disposal, is a partner in, or member of, the partnership and pursuant to the partnership agreement is treated at that time as having an interest in the partnership’s syndicate capacity, but does not include any partner or member whose resignation from the partnership takes effect on the day of the disposal;“ordinary share capital” has the meaning given by section 989 of ITA 2007;. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .“successor company” means a corporate member (within the meaning of Chapter 5 of Part 4 of the Finance Act 1994) which is a successor member;. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .“syndicate capacity disposal” has the meaning given by paragraph 5A(3);“underwriting business”—in relation to a Lloyd’s partnership, means the partnership’s underwriting business as a member of Lloyd’s, and in relation to a successor company, has the same meaning as in Chapter 5 of Part 4 of the Finance Act 1994.
For the purposes of this Part of this Schedule, shares comprised in any letter of allotment or similar instrument shall be treated as issued unless—
the right to the shares conferred by it remains provisional until accepted, and
there has been no acceptance.
Paragraphs 5B and 5C above (and paragraph 5A above so far as relating to those paragraphs) are to be construed as one with the Gains Tax Act.
Conversion to underwriting through successor partnerships
Introduction
This Part of this Schedule applies if the following conditions are satisfied.
Condition 1 is that—
a member gives notice of his resignation from membership of Lloyd’s in accordance with the rules or practice of Lloyd's,
in accordance with such rules or practice, the member does not undertake any new insurance business at Lloyd’s after the end of the member’s last underwriting year, and
the member does not withdraw that notice.
Condition 2 is that all of the member’s outstanding syndicate capacity is disposed of by the member under a conversion arrangement to a successor partnership (“the syndicate capacity disposal”) with effect from the beginning of the underwriting year next following the member’s last underwriting year.
Condition 3 is that the member is the only person who disposes of syndicate capacity under a conversion arrangement to the successor partnership.
Condition 4 is that the successor partnership starts to carry on its underwriting business in the underwriting year next following the member’s last underwriting year.
In this paragraph “the member’s last underwriting year”, in relation to a member who gives notice of his resignation from membership of Lloyd's, means the underwriting year during which, or at the end of which, he ceases to be an underwriting member and becomes a non-underwriting member in accordance with the rules or practice of Lloyd's.
In this paragraph “outstanding syndicate capacity”, in relation to a member, means the syndicate capacity of the member other than any which—
the member disposes of to a person other than a successor member at or before the end of the member’s last underwriting year, or
ceases to exist with effect from the end of that year.
Income tax: carry forward of loss relief following conversion
This paragraph applies if—
the member’s total income for a year of assessment includes profits of the successor partnership’s underwriting business, and
throughout the period beginning with the time of the syndicate capacity disposal and ending with the end of that year of assessment, the member is beneficially entitled to more than 50% of the profits of that business.
Section 83 of ITA 2007(carry-forward of trading losses against subsequent profits) shall have effect, in its application in relation to the losses of the old underwriting business, as if the profits of the successor partnership’s underwriting business to which the member is beneficially entitled for that year were profits on which the member was assessed under Part 2 of the Income Tax (Trading and Other Income) Act 2005 in respect of the old underwriting business for that year.
In sub-paragraph (2) above “the old underwriting business” means the member’s underwriting business carried on otherwise than through the successor partnership.
Interpretation of this Part of this Schedule
In this Part of this Schedule—“ successor partnership” means—a limited partnership formed under the law of Scotland which is a successor member, or a limited liability partnership formed under the law of any part of the United Kingdom which is a successor member.“the syndicate capacity disposal” has the meaning given by paragraph 6(3) above.
Supplementary provisions
Withdrawal of resignation notice
This paragraph applies if a member—
makes a claim for relief under or by virtue of Part 1 or 2 of this Schedule, and
subsequently withdraws the notice of his resignation from membership of Lloyd's.
The member must give written notice of such withdrawal to an officer of the Board.
Such a notice must be given no later than six months from the date of the withdrawal of the notice of resignation.
All such adjustments shall be made, whether by discharge or repayment of tax, the making of assessments or otherwise, as are required as a result of the withdrawal of the notice of resignation (notwithstanding any limitation on the time within which any adjustment may be made).
If a member fails, fraudulently or negligently, to comply with sub-paragraphs (2) and (3) above, section 95 of the Taxes Management Act 1970 shall apply to him as if he had fraudulently or negligently made an incorrect return, statement or declaration in connection with the claim for relief made by him under or by virtue of this Schedule.
In this paragraph “tax” means income tax, capital gains tax or inheritance tax.
This paragraph applies if—
a person makes a claim for relief under or by virtue of Part 1A of this Schedule, and
the Lloyd’s partnership in respect of which the claim is made withdraws the notice of its resignation from Lloyd’s.
The person must give written notice of such withdrawal to an officer of Revenue and Customs.
Such a notice must be given no later than 6 months from the date on which the person first became aware of the withdrawal of the notice of resignation.
Unless the person proves otherwise, it shall be assumed that the person became aware of the withdrawal of the notice on the day on which it was withdrawn.
All such adjustments shall be made, whether by discharge or repayment of tax, the making of assessments or otherwise, as are required as a result of the withdrawal of the notice of resignation (notwithstanding any limitation on the time within which any adjustment may be made).
If a person fails, carelessly or deliberately, to comply with sub-paragraph (2) or (3) above, Schedule 24 to the Finance Act 2007 shall apply as if—
the person had given HMRC a document of a kind listed in the Table in paragraph 1 of that Schedule, and
the document contained an inaccuracy which was careless or deliberate on the person’s part and amounted to an understatement of a liability to tax equivalent to the amount of the adjustments required by sub-paragraph (5) to be made.
In this paragraph “tax” means income tax, capital gains tax or inheritance tax.
Interpretation of this Schedule
In this Schedule—“conversion arrangement” means a conversion arrangement made under the rules or practice of Lloyd's;“successor member” has the meaning given by the rules or practice of Lloyd's;“syndicate capacity”, in relation to a member or Lloyd’s partnership, means an asset comprising the rights of the member or partnership under a syndicate in which the member or partnership participates.
Application of this Schedule
Paragraphs 2 and 3 above (and the other provisions of this Schedule so far as relating to those paragraphs) have effect in relation to syndicate capacity disposals (within the meaning of Part 1 of this Schedule) made on or after 6th April 2004.
Paragraph 4 above (and the other provisions of this Schedule so far as relating to that paragraph) have effect in relation to ATF disposals (within the meaning of that paragraph) made on or after 6th April 2004 (even if the syndicate capacity disposal mentioned in that paragraph was made before that date).
Paragraph 5B above (and the other provisions of this Schedule so far as relating to that paragraph) have effect in relation to syndicate capacity disposals (within the meaning of Part 1A of this Schedule) made on or after 19th December 2014.
Paragraph 5C above (and the other provisions of this Schedule so far as relating to that paragraph) have effect in relation to ATF disposals (within the meaning of that paragraph) made on or after 19th December 2014 (even if the syndicate capacity disposal was made before that date).
Paragraph 7 above (and the other provisions of this Schedule so far as relating to that paragraph) have effect in relation to syndicate capacity disposals (within the meaning of Part 2 of this Schedule) made on or after 6th April 2004.
PRT: elections for oil fields to become non-taxable
Election by responsible person
The responsible person for a taxable field may make an election that the field is to be non-taxable.
An election is irrevocable.
The responsible person may not make an election unless each person who is a participator at the time the election is made agrees to the election being made.
If the responsible person makes an election, the Commissioners may assume that each participator agrees to the election being made (unless it appears to the Commissioners that a participator does not agree).
Method of election
An election must be made in writing.
An election must be notified to the Commissioners.
An election is deemed to have been made on the date on which notification of the election was sent to the Commissioners.
Effect of election
If an election is made, the field ceases to be taxable with effect from the start of the first chargeable period to begin after the election is made.
No unrelievable field losses from field
From the start of the first chargeable period to begin after an election is made, no allowable loss that accrues from the oil field is an allowable unrelievable field loss for the purposes of petroleum revenue tax.
Interpretation
In this Schedule—“Commissioners” means the Commissioners for Her Majesty‘s Revenue and Customs;“participator”, in relation to a particular time, means a person who is a participator in the chargeable period which includes that time.
Expressions used in this Schedule and in Part 1 of the Oil Taxation Act 1975 have the same meaning in this Schedule as in Part 1 of that Act.
Oil taxation: supplementary provisions about information
Restrictions on powers under section 187
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Meaning of “documents”
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Trading funds
Introduction
The Government Trading Funds Act 1973 shall be amended as follows.
Reserves
The following section shall be inserted after section 2—
In section 2(3) (originating debt where fund established) in paragraph (b) after “capital” there shall be inserted “ or any amount treated by virtue of the order as reserves or (where the order provides for both public dividend capital and reserves) the aggregate of those amounts ”.
In section 2(4) (addition to originating debt where additional assets and liabilities appropriated to fund) in paragraph (b) after “capital” there shall be inserted “ for any amount treated by virtue of the order as reserves or (where the order provides for both public dividend capital and reserves) the aggregate of those amounts ”.
Public dividend capital etc.
In section 2A (public dividend capital) the following subsection shall be inserted after subsection (2) (limited power of Minister to issue public dividend capital to fund)—
Maximum borrowing etc.
The following section shall be inserted after section 2B—
In section 2B (borrowing by funds) subsections (6) to (9) (which are superseded by the new section 2C) shall be omitted.
Repeals
Excise duties
These repeals have effect in accordance with section 4 of this Act
These repeals have effect in accordance with section 5 of this Act.
This repeal has effect in accordance with section 6 of this Act.
The power in section 11(5) of this Act applies to these repeals as it applies to that section.
The power in section 12(8) of this Act applies to these repeals as it applies to that section.
These repeals have effect in relation to licences taken out after 16th March 1993.
These repeals come into force in accordance with section 41 of this Act.
Value added tax
This repeal comes into force in accordance with section 42 of this Act.
These repeals have effect in relation to any case where the prescribed accounting period begins after 5th April 1993.
These repeals come into force in accordance with section 44(4) of this Act.
In section 5(9), in the words after paragraph (b), the words from “a supply of goods” to “below or there is”.
The repeal of section 13(4) of the Finance Act 1985 has effect in accordance with paragraph 3(3) of Schedule 2 to this Act and the repeal of section 19(2)(b) of that Act has effect in accordance with paragraph 5(3) of that Schedule.
Section 13(4).
Income tax, corporation tax and capital gains tax
These repeals come into force in accordance with section 57 of this Act.
The repeal of section 24 of the Finance Act 1990 has effect for the year 1993-94 and subsequent years of assessment.
These repeals have effect for the year 1994-95 and subsequent years of assessment.
This repeal has effect for the year 1993-94.
This repeal has effect for the year 1993-94 and subsequent years of assessment.
These repeals have effect for the year 1993-94 and subsequent years of assessment.
These repeals come into force in accordance with section 87(2) of this Act.
The repeal of section 212(8) of the Taxation of Chargeable Gains Act 1992 has effect, in accordance with section 91(1) of this Act, in relation to the accounting periods mentioned in section 212(8), and the other repeals have effect in relation to accounting periods beginning on or after 1st January 1993.
These repeals have effect in accordance with section 103 of this Act.
These repeals have effect in accordance with section 107 of this Act.
The repeals in the Income and Corporation Taxes Act 1988 and the repeal of paragraph 9 of Schedule 15 to the Finance Act 1991 have effect in relation to accounting periods ending after the day appointed for the purposes of section 10 of the Income and Corporation Taxes Act 1988.
The repeal of section 450(6) of the Income and Corporation Taxes Act 1988 has effect in relation to acquisitions or disposals made, or treated as made, after 31st December 1993.
The following repeals, namely—the repeals in sections 710, 711, 720 and 721 of and Schedule 4 to the Income and Corporation Taxes Act 1988 and the repeal of section 725 of that Act; the repeal in Schedule 11 to the Finance Act 1989; the repeal in Schedule 10 to the Finance Act 1990; the repeals of sections 207 and 208 of the Taxation of Chargeable Gains Act 1992; and the repeals of subsections (4) to (6) of section 183 of this Act, have effect for the year 1994 and subsequent underwriting years.
The repeals in section 43 of the Finance Act 1989 have effect in relation to periods of account ending on or after 30th June 1993.
The following repeals, namely—the repeals of subsections (2) to (5) of section 206 and subsections (1), (2) and (6) of section 209 of the Taxation of Chargeable Gains Act 1992; and the repeals of subsections (7) and (8) of section 183 of this Act, have effect for the year of assessment 1994-95 and subsequent years of assessment.
The other repeals have effect for the year 1992-93 and subsequent years of assessment.
Oil taxation
Inheritance tax
This repeal has effect in accordance with section 208 of this Act.
Statutory effect of resolutions etc.
In section 1, in subsection (1) the words “car tax”....
The repeals in the Provisional Collection of Taxes Act 1968 have effect in accordance with section 205 of this Act.
Trading funds