UKPGA-1995-4 Finance Act 1995 UK

The Alcoholic Liquor Duties Act 1979 shall be amended as follows.

In section 1 (the alcoholic liquors dutiable under the Act) in subsections (4) and (5) (definitions of “wine” and “made-wine”) after the words “any liquor” there shall in both cases be inserted “ which is of a strength exceeding 1.2 per cent and which is ”.

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In section 59(1) (prohibition on rendering wine and made-wine sparkling) for paragraph (b) there shall be substituted the following paragraph—.

Subsections (2) and (4) above—

Subsection (3) above shall apply in relation to liquor imported into, or made in, the United Kingdom on or after 1st January 1995.

For the Table of rates of duty in Schedule 1 to the Alcoholic Liquor Duties Act 1979 (wine and made-wine) there shall be substituted the Table in Schedule 1 to this Act.

This section shall be deemed to have come into force on 1st January 1995.

In section 5 of the Alcoholic Liquor Duties Act 1979 (spirits) for “£19.81” there shall be substituted “ £20.60 ”.

In section 36(1) of that Act (beer) for “£10.45” there shall be substituted “ £10.82 ”.

In section 62(1) of that Act (cider) for “£22.82” there shall be substituted “ £23.78 ”.

This section shall be deemed to have come into force on 1st January 1995.

In section 6(1) of the Hydrocarbon Oil Duties Act 1979 for “£0.3314” (duty on light oil) and “£0.2770” (duty on heavy oil) there shall be substituted “ £0.3526 ” and “ £0.3044 ” respectively.

In section 8 of that Act (duty on road fuel gas) the following subsection shall be substituted for subsections (3) to (5)—

In section 11(1) of that Act (rebate on heavy oil) for “£0.0116” (fuel oil) and “£0.0164” (gas oil) there shall be substituted “ £0.0166 ” and “ £0.0214 ” respectively.

In section 14(1) of that Act (rebate on light oil for use as furnace fuel) for “£0.0116” there shall be substituted “ £0.0166 ”.

This section shall be deemed to have come into force at 6 o’clock in the evening of 29th November 1994.

In section 6(1) of the Hydrocarbon Oil Duties Act 1979, as amended by section 6 above, for “£0.3526” (duty on light oil) and “£0.3044” (duty on heavy oil) there shall be substituted “ £0.3614 ” and “ £0.3132 ” respectively.

This section shall be deemed to have come into force on 1st January 1995.

In the definition of “road vehicle” in section 27(1) of the Hydrocarbon Oil Duties Act 1979 (road vehicle not to include vehicle of a kind specified in Schedule 1) for the words “of a kind specified in Schedule 1 to this Act” there shall be substituted “ which is an excepted vehicle within the meaning given by Schedule 1 to this Act. ”

The following Schedule shall be substituted for Schedule 1 to that Act—

This section shall come into force on 1st July 1995.

For the Table of rates of duty 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 29th November 1994.

For the Table of rates of duty in Schedule 1 to the Tobacco Products Duty Act 1979, as substituted by section 10 above, there shall be substituted—

This section shall be deemed to have come into force on 1st January 1995.

In section 7(1) of the Betting and Gaming Duties Act 1981 (which specifies 37.50 per cent. as the rate of pool betting duty) for “37.50 per cent.” there shall be substituted “ 32.50 per cent. ”

This section shall apply in relation to any pool betting duty the requirement to pay which takes effect on or after 6th May 1995.

In the Betting and Gaming Duties Act 1981 for the Table set out at the end of section 23 (amount of duty) there shall be substituted—

This section shall apply in relation to any gaming machine licence for which an application is made on or after 1st December 1994.

Schedule 3 to this Act (which contains amendments for or in connection with the application of the provisions of the Betting and Gaming Duties Act 1981 relating to gaming machine licence duty to amusement machines that are not gaming machines and also makes a consequential amendment of the Customs and Excise Management Act 1979) shall have effect.

Schedule 3 to this Act shall have effect (subject to subsection (3) below) in relation only to the provision of a machine at a time on or after 1st November 1995 and to licences for periods beginning on or after that date and the duty on such licences.

Where a gaming machine licence has been granted before 1st November 1995 for a period ending on or after that date, that licence shall have effect on and after that date, for so long as it remains in force, as an amusement machine licence authorising the provision, in accordance with the licence, of the machines the provision of which was authorised by the licence immediately before that date.

In Schedule 6 to the Finance Act 1994 (air passenger duty: administration and enforcement) after paragraph 11 there shall be inserted—

In Schedule 5 to the 1994 Act (decisions subject to review and appeal) in paragraph 9 (decisions under Chapter IV of Part I of that Act) the word “and” immediately preceding sub-paragraph (d) shall be omitted and after that sub-paragraph there shall be inserted—.

In section 16 of the 1994 Act (appeals to a tribunal) at the beginning of subsection (8) (meaning of “ancillary matter” for the purposes of that section) there shall be inserted “ Subject to subsection (9) below ” and after that subsection there shall be inserted—

This section shall apply in relation to accounting periods ending on or after 1st January 1995.

Schedule 1 to the Vehicle Excise and Registration Act 1994 (annual rates of duty) shall be amended as follows.

In paragraph 1(b) (rate for vehicle constructed after 1946 and for which no other rate is specified) for “£130” there shall be substituted “ £135 ”.

In paragraph 3(1)(a) (rate for hackney carriage with seating capacity under nine) for “£130” there shall be substituted “ £135 ”.

In paragraph 10 (trailer supplement)—

This section shall apply in relation to licences taken out on or after 30th November 1994.

In Part X of the Customs and Excise Management Act 1979, after section 137 (recovery of duties, &c.) insert—.

In section 17(5) of the Customs and Excise Management Act 1979, after paragraph (b) (restriction on repayment of sums overpaid in error) insert—.

Section 29 of the Finance Act 1989 (recovery of overpaid excise duty and car tax) shall cease to have effect so far as it relates to excise duty.

In section 14(1) of the Finance Act 1994 (decisions subject to review and appeal), after paragraph (b) insert—.

The provisions of this section have effect in relation to payments made on or after such date as the Commissioners of Customs and Excise may appoint by order made by statutory instrument.

In subsection (1) of section 21 of the Value Added Tax Act 1994 (value of imported goods), for “and (3)” there shall be substituted “ to (4) ”; and after subsection (3) there shall be inserted the following subsections—

This section shall have effect in relation to goods imported at any time on or after the day on which this Act is passed.

In subsection (1) of section 47 of the Value Added Tax Act 1994 (agents etc.), for “the goods may” there shall be substituted “ then, if the taxable person acts in relation to the supply in his own name, the goods shall ”.

After subsection (2) of that section there shall be inserted the following subsection—

In subsection (3) of that section, the words “goods or” shall be omitted.

This section shall have effect—

After section 50 of the Value Added Tax Act 1994 there shall be inserted the following section—

Section 32 of that Act (relief on supply of certain second-hand goods) shall cease to have effect on such day as the Commissioners of Customs and Excise may by order made by statutory instrument appoint.

Section 43 of the Value Added Tax Act 1994 (groups of companies) shall be amended as follows.

After subsection (1) there shall be inserted the following subsection—;

In subsection (5) (applications to be treated or to cease to be treated as members of a group etc.), for the words after paragraph (d) there shall be substituted—

After subsection (5) there shall be inserted the following subsection—

Subsection (2) above has effect in relation to—and subsections (3) and (4) above have effect in relation to applications made on or after the day on which this Act is passed.

Section 81 of the Value Added Tax Act 1994 (which includes provision as to the setting off of credits) shall be amended as follows.

For subsection (4) there shall be substituted the following subsections—

In subsection (5) (definitions), for “subsection (4) above” there shall be substituted “ this section ”.

This section shall have effect in relation to amounts becoming due from the Commissioners of Customs and Excise at times on or after the day on which this Act is passed.

In section 30 of the Value Added Tax Act 1994 (zero-rated supplies) for subsection (5) (transactions described in Schedule 8 to the Act to be treated as supplies) there shall be substituted—

This section shall have effect in relation to transactions occurring on or after the day on which this Act is passed.

Section 57 of the Value Added Tax Act 1994 (determination of consideration for fuel supplied for private use) shall be amended as follows.

The following subsection shall be inserted after subsection (1)—

In subsection (2) (consideration where prescribed accounting period is period of 3 months) for “second” there shall be substituted “ third ”.

In subsection (3) (consideration where prescribed accounting period is period of one month) for “third” there shall be substituted “ fourth ”.

The following Table shall be substituted for Table A—

This section shall apply in relation to prescribed accounting periods beginning on or after 6th April 1995.

Nothing in this section shall be taken to prejudice any practice by which the consideration appropriate to a vehicle is arrived at where a prescribed accounting period beginning before 6th April 1995 is a period of 12 months.

In section 84(2) of the Value Added Tax Act 1994 (appeal not to be entertained unless amounts shown in returns paid, except in certain cases) the words “, except in the case of an appeal against a decision with respect to the matter mentioned in section 83(l),” shall be omitted.

This section shall apply in relation to appeals brought after the day on which this Act is passed.

The Value Added Tax Act 1994 shall have effect, and be deemed always to have had effect, as if it had been enacted as follows.

Section 35(1) (refund of VAT to persons constructing certain buildings) shall be deemed to have been enacted with the word “building” substituted for the word“ dwelling ”in each place where it occurs.

Paragraph 5(5) and (6)(b) of Schedule 4 and paragraph 7(b) of Schedule 6 (which contain references to paragraph 5(3) of Schedule 4 which should be references to paragraph 5(4) of that Schedule) shall be deemed to have been enacted—

In paragraph 9 of Schedule 13 (which contains transitional provisions relating to bad debt relief), the following sub-paragraph shall be deemed to have been enacted instead of sub-paragraph (2) of that paragraph, that is to say—

In paragraph 13 of Schedule 14 (consequential amendment of the Finance Act 1994), the following sub-paragraph shall be deemed to have been enacted instead of sub-paragraph (a) of that paragraph, that is to say—.

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Section 43 of the Taxes Act 1988 (payments to non-residents of amounts chargeable under Schedule A) shall not have effect in relation to any payment made on or after 6th April 1996.

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That Act shall be further amended as follows—

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Chapter IA of Part V of the Taxation of Chargeable Gains Act 1992 (roll-over relief on re-investment) shall be amended as follows.

In section 164A (relief on re-investment for individuals) the following subsection shall be inserted after subsection (12)—

In section 164F (failure of conditions of relief) the following subsection shall be inserted after subsection (2)—

In section 164I (qualifying trades) the following subsection shall be inserted after subsection (4)—

Chapter IA of Part V of the Taxation of Chargeable Gains Act 1992 (roll-over relief on re-investment) shall be amended as follows.

In section 164A after subsection (13) (inserted by section 46 above) there shall be inserted—

In section 164F after subsection (10B) there shall be inserted—

After section 164F there shall be inserted—

After section 164FF (inserted by subsection (4) above) there shall be inserted—

Subsection (4) above (and subsections (1) to (3) above so far as relating to subsection (4) above) shall apply to a claim as respects a qualifying investment if—

Subsection (5) above (and subsections (1) to (3) above so far as relating to subsection (5) above) shall apply to a claim as respects a qualifying investment if—

Any such adjustment as is appropriate in consequence of this section may be made (whether by discharge or repayment of tax, the making of an assessment or otherwise).

In section 175 of the Taxation of Chargeable Gains Act 1992 (replacement of business assets by members of a group), after subsection (2) there shall be inserted the following subsections—

In section 247 of the Taxation of Chargeable Gains Act 1992 (roll-over relief on compulsory acquisition of land), after subsection (5) there shall be inserted the following subsection—

Subject to subsection (4) below—

Paragraph (c) of that subsection (2A) shall not apply unless the claim is made on or after 29th November 1994.

The subsection inserted into section 175 of the Taxation of Chargeable Gains Act 1992 by subsection (1) above as subsection (2B) shall apply where the disposal or the acquisition is on or after 29th November 1994; and the subsection so inserted as subsection (2C) shall apply where the acquisition is on or after that date.

The subsection inserted into section 247 of the Taxation of Chargeable Gains Act 1992 by subsection (2) above shall apply—

In section 179 of the Taxation of Chargeable Gains Act 1992 (de-grouping charges), after subsection (2) there shall be inserted the following subsections—

After subsection (9) of that section there shall be inserted the following subsection—

This section has effect in relation to a company in any case in which the time of the company’s ceasing to be a member of the second group is on or after 29th November 1994.

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In section 59(3)(b) of the Inheritance Tax Act 1984 (interests of insurance companies acquired before 14th March 1975 to be qualifying interests in possession), for the words from “if” onwards there shall be substituted

Subsections (1) to (3) above shall have effect in relation to any accounting period ending after 30th June 1994; and subsection (4) above shall have effect for the purposes of the making, on an anniversary or other occasion after that date, of any charge to tax under section 64 or 65 of the Inheritance Tax Act 1984.

The amendments specified in Schedule 9 to this Act (which relate to enactments referring to the transfer of the whole or part of the long term business of an insurance company) shall have effect.

This section and that Schedule shall have effect in relation to any transfers sanctioned or authorised after 30th June 1994.

Subject to subsections (2) and (3) below—

Subsection (1) above shall not affect the right of any person to bring or continue with an appeal under paragraph 21(3) of that Schedule against either a refusal before the appointed date to certify any policy or a refusal on or after that date to certify any policy in relation to times before that date.

A certificate issued—shall, in relation to any time on or after that date or, as the case may be, the date on which it is issued, be conclusive evidence that the policy to which it relates is (subject to paragraphs A1(2), B2(2) and B3(3) of that Schedule and to any variation of the policy) a qualifying policy.

Paragraph 22 of that Schedule (certificates from body issuing policy) shall cease to have effect in relation to any time on or after the appointed date.

Paragraph 24 of that Schedule (policies issued by non-resident companies) shall have effect in relation to times on or after the appointed date—

In paragraph 25 of that Schedule (policies substituted for policies issued by non-resident companies), for sub-paragraph (2) there shall be substituted the following sub-paragraph—

In paragraph 27(1) of that Schedule, except so far as it has effect for the purposes of any case to which paragraph 21 of that Schedule applies by virtue of the preceding provisions of this section, for “paragraphs 21 and” there shall be substituted “ paragraph ”.

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In this section “the appointed date” means such date as may be specified for the purpose in an order made by the Board.

Chapter III of Part VII of the Taxes Act 1988 as it has effect in relation to shares issued before 1st January 1994 (the business expansion scheme) shall be amended as follows.

In section 289 (the relief) the following subsection shall be inserted after subsection (12) (which defines “the relevant period” for the purposes of the Chapter)—

In section 305 (reorganisation of share capital) the following subsections shall be inserted after subsection (4)—

The Taxation of Chargeable Gains Act 1992 shall be amended as follows.

In section 100(1) (exemption from charge for gains accruing to authorised unit trusts, investment trusts etc.), after “investment trust” there shall be inserted “ a venture capital trust ”.

In Chapter III of Part IV (miscellaneous provisions relating to securities), after section 151 there shall be inserted the following sections—

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In section 257(1) (gifts to charities etc.), after paragraph (b) there shall be inserted—

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In section 288(1) (interpretation), after the definition of “trading stock” there shall be inserted the following definition—.

Subsection (2) above shall have effect in relation to gains accruing on or after 6th April 1995 and the other provisions of this section have effect for the year 1995-96 and subsequent years of assessment.

Schedule 17 to this Act has effect with respect to settlements and the liability of the settlor, as follows—Part I inserts new provisions in place of sections 660 to 676 and 683 to 685 of the Taxes Act 1988, Part II makes minor and consequential amendments of that Act, and Part III contains consequential amendments of other enactments.

The amendments made by Schedule 17 have effect for the year 1995-96 and subsequent years of assessment and apply to every settlement, wherever and whenever it was made or entered into.

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After the section 51A of the Taxes Act 1988 inserted by section 77 above there shall be inserted the following section—

In the Table in section 98 of the Management Act (penalties in respect of certain information provisions), immediately before the entry in the second column relating to section 124(3) of the Taxes Act 1988 there shall be inserted the following entry—.

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In section 729 of that Act (sale and repurchase of securities), after subsection (5) there shall be inserted the following subsection—

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After section 263 of the Taxation of Chargeable Gains Act 1992 there shall be inserted the following section—

This section shall have effect where the agreement to sell the securities is entered into on or after the date on which this Act is passed.

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In section 182(1) of the Finance Act 1993 and section 229 of the Finance Act 1994 (powers to modify provisions relating to Lloyd’s), the following paragraph shall be inserted, in each case, after paragraph (c)—.

In sections 63 to 66 of the Finance Act 1993 (deemed periodic disposal of certain debts), for “the resident company”, wherever occurring, substitute“ the creditor company ”.

After section 62 of that Act insert—.

In section 63 of that Act, omit subsection (12) (meaning of “commencement date”).

The above amendments shall be deemed always to have had effect.

Anything done before the passing of this Act under or by reference to the provisions of sections 63 to 66 of the Finance Act 1993 as originally enacted shall have effect as if done under or by reference to those provisions as amended by this section.

A debt is a qualifying debt for the purposes of sections 63 to 66 of the Finance Act 1993 (deemed periodic disposal of certain debts) at any time if, at that time, the person entitled to the debt is a company which—and the debt is not an exempted debt as defined by the following provisions.

A debt is an exempted debt for those purposes at any time if at that time it is held by the company entitled to it for the purposes of long term insurance business.

A debt is an exempted debt for those purposes at any time if each of the first, second and third conditions mentioned below—

The first condition is that the terms of the debt provide that any interest carried by it shall be at a rate which falls into one, and one only, of the following categories—

The second condition is that those terms provide for any such interest to be payable as it accrues at intervals of 12 months or less.

The third condition is that the terms of the debt are not such—In this subsection “deep discount security” has the same meaning as in Schedule 4 to the Taxes Act 1988 and “deep gain security” has the same meaning as in Schedule 11 to the Finance Act 1989, disregarding paragraph 1(4)(c) of that Schedule.

In this section—“associated company” shall be construed in accordance with section 416 of the Taxes Act 1988;“long term insurance business” means insurance business of any of the classes specified in Schedule 1 to the Insurance Companies Act 1982; and“published index of prices” means the retail prices index or any similar general index of prices which is published by, or by an agent of, the government of any territory outside the United Kingdom.

In sections 63 to 66 of the Finance Act 1993 as they apply by virtue of this section “the creditor company” means the company identified in subsection (1) above as the person entitled to the debt.

In sections 63 to 66 of the Finance Act 1993 as they apply by virtue of this section “the commencement date” means—

A debt falls within this subsection if the person liable for it is—and that person was so liable at the end of 28th November 1994.

Chapter IV of Part IV of the Finance Act 1994 (changes for facilitating self-assessment) shall be deemed to have been enacted with the following modification.

In section 218 (commencement etc. of Chapter IV, sections 213(4) and (8) and 214(4) and (6) of which relate to capital allowances) the following subsection shall be inserted after subsection (1)—

In subsection (2) of section 7 of the Management Act (notice of liability)—

After subsection (8) of that section there shall be inserted the following subsection—

In subsection (1) of section 8A of that Act (trustee’s return)—

After subsection (4) of that section there shall be inserted the following subsection—

At the beginning of Part XI of that Act (miscellaneous and supplemental) there shall be inserted the following section—

In section 118 of that Act (interpretation), after the definition of “the principal Act” there shall be inserted the following definition—

Unless the contrary intention appears, this section, sections 104 to 115 below and Schedule 20 to this Act—

In each of the following, namely—there shall be inserted at the end the words “ and the amounts referred to in that subsection are net amounts, that is to say, amounts which take into account any relief, allowance or repayment of tax for which a claim is made and give credit for any income tax deducted at source and any tax credit to which section 231 of the principal Act applies ”.

In subsection (1B) of section 8 of that Act, for the word “loss” there shall be substituted the words “ loss, tax, credit ”.

After subsection (4) of that section there shall be inserted the following subsection—

In subsection (1) of section 9 of that Act (returns to include self-assessment), for the words “on the basis of the information contained in the return” there shall be substituted the following paragraphs—.

In subsection (1) of section 11AA of that Act (return of profits to include self-assessment), for the words “on the basis of the information contained in the return” there shall be substituted the following paragraphs—.

For subsection (1) of section 12AA of that Act (partnership return) there shall be substituted the following subsections—

For subsection (1) of section 12AB of that Act (partnership return to include partnership statement) there shall be substituted the following subsection—

In subsection (5) of that section, after the definition of “period of account” there shall be inserted the following definitions—

In subsection (1) of section 12B of the Management Act (records to be kept for purposes of returns), for paragraph (b) there shall be substituted the following paragraph—

In subsection (2) of that section, the words from “or, where a return” to the end shall cease to have effect.

After that subsection there shall be inserted the following subsection—

In subsection (3) of that section—

In subsection (4) of that section, after the words “subsection (1)” there shall be inserted the words “ or (2A) ”.

In subsection (5) of that section—

After that subsection there shall be inserted the following subsection—

For section 15 of the Management Act there shall be substituted the following section—

This section has effect as respects payments made or benefits provided on or after 6th April 1996.

After subsection (1) of section 42 of the Management Act (procedure for making claims etc.) there shall be inserted the following subsection—

In subsection (2) of that section, for the words “subsection (3)” there shall be substituted the words “ subsections (3) and (3A) ”.

In subsection (3) of that section, for the words “Subsection (2)” there shall be substituted the words “ Subsections (1A) and (2) ”.

After subsection (3) of that section there shall be inserted the following subsections—

In subsection (4) of that section, there shall be inserted at the beginning the words“ Subject to subsection (4A) below, ”.

After subsection (4) of that section there shall be inserted the following subsection—

In subsection (5) of that section, for the words “subsections (2) and (4) above” there shall be substituted the words “ this section ”.

In subsection (7)(a) of that section, for the words “sections 84” there shall be substituted the words “ sections 62A, 84 ”.

In subsection (10) of that section, after the words “This section” there shall be inserted the words “ (except subsection (1A) above) ”.

In subsection (11) of that section, paragraph (b) and the word “and” immediately preceding that paragraph shall cease to have effect.

Schedule 1A to that Act (claims etc. not included in returns) shall have effect subject to the amendments specified in Schedule 20 to this Act.

In section 59C of the Management Act (surcharges on unpaid income tax and capital gains tax), in subsection (4) (exceptions to surcharge), for the words “or 95” there shall be substituted the words “ , 95 or 95A ”.

That section of that Act shall apply in relation to any income tax or capital gains tax which—as it applies in relation to any income tax or capital gains tax which becomes payable in accordance with section 55 or 59B of that Act and is for the year 1996-97 or a subsequent year of assessment.

For section 86 of the Management Act there shall be substituted the following section—

That section of that Act shall apply in relation to any income tax or capital gains tax which—as it applies in relation to any income tax or capital gains tax which becomes due and payable in accordance with section 55 or 59B of that Act and is for the year 1996-97 or a subsequent year of assessment.

In that section of that Act as it so applies, “the relevant date” means the 31st January next following the year of assessment.

So far as it relates to partnerships whose trades, professions or businesses were set up and commenced before 6th April 1994, subsection (1) above has effect as respects the year 1997-98 and subsequent years of assessment.

After section 374 of the Taxes Act 1988 there shall be inserted the following section—

In subsection (2) of section 375 of that Act (interest ceasing to be relevant loan interest etc.), after paragraph (a) there shall be inserted the following paragraph—.

For subsection (4) of that section there shall be substituted the following subsections—

After subsection (8) of that section there shall be inserted the following subsection—

This section applies in relation to deductions made by borrowers, and payments made by the Board, after the passing of this Act.

After subsection (2) of section 16 of the Taxation of Chargeable Gains Act 1992 (computation of losses) there shall be inserted the following subsection—

Deductions under that Act in respect of allowable losses shall be given preference as follows—

For subsection (1) of section 65 of the Taxation of Chargeable Gains Act 1992 (liability for tax of trustees and personal representatives) there shall be substituted the following subsection—

After subsection (2) of that section there shall be inserted the following subsections—

In subsection (7) of section 7 of the Management Act (notice of liability), for the words “income from which” there shall be substituted the words “ income on which ”.

In subsection (3) of section 9 of that Act (returns to include self-assessment), the words “the following provisions of” shall cease to have effect.

Section 11A of that Act (notice of liability to capital gains tax) shall cease to have effect.

In subsection (2) of section 12AA of that Act (partnership return), for the words “such accounts and statements” there shall be substituted the words “ such accounts, statements and documents, relating to information contained in the return, ”.

In subsection (1)(c) of section 30B of that Act (amendment of partnership statement where loss of tax discovered), after the word “relief” there shall be inserted the words “ or allowance ”.

In subsection (6) of section 59B of that Act (payment of income tax and capital gains tax), for the words “under section 29 of this Act shall” there shall be substituted the words “ otherwise than under section 9 of this Act shall, unless otherwise provided, ”.

In subsection (1) of section 100B of that Act (appeals against penalty determinations), after the words “95A of this Act” there shall be inserted the word “ and ”.

In section 103A of that Act (interest on penalties), for the words “Part II or VA” there shall be substituted the words “ Part II, IV or VA ”.

Section 73 of the Taxes Act 1988 (single assessments for purposes of Cases III, IV and V of Schedule D) shall cease to have effect.

In sections 536 and 537B of that Act (taxation of royalties where owner abroad)—

In Schedule 3 to that Act (machinery for assessment, charge and payment of income tax under Schedule C and, in certain cases, Schedule D), in paragraph 6E, sub-paragraphs (1) and (3) shall cease to have effect.

Section 7 of the Taxation of Chargeable Gains Act 1992 (time for payment of capital gains tax) shall cease to have effect.

Subsection (3) above has effect as respects the year 1995-96 and subsequent years of assessment.

The provisions of the Management Act specified in Schedule 21 to this Act shall have effect subject to the transitional provisions contained in that Schedule.

Section 198 of the Finance Act 1994 (which is superseded by this section) shall cease to have effect.

In Schedule 8 to the Taxes Act 1988 (profit-related pay schemes) paragraph 19 (ascertainment of profits) shall be amended in accordance with subsections (2) to (4) below.

In sub-paragraph (6) (cases where scheme may provide for departure from requirements applicable to profit and loss account) paragraphs (g) to (k) (extraordinary items) shall be omitted.

After paragraph (ff) of sub-paragraph (6) there shall be inserted—

After sub-paragraph (6) there shall be inserted—

Subject to subsections (6) to (10) below, subsections (2) to (4) above shall have effect in relation to the preparation, for the purposes of a scheme, of a profit and loss account in respect of a period beginning on or after the day on which this Act is passed.

Subsections (2) to (4) above shall not have effect in relation to an existing scheme unless, before the end of the period of 6 months beginning with the day on which this Act is passed, the scheme is altered to take account of the amendments made by those subsections.

Subsections (8) to (10) below apply where, before the end of the period mentioned in subsection (6) above, an existing scheme is altered as mentioned in that subsection.

The provision made by the scheme in compliance with paragraph 20(1) of Schedule 8 to the Taxes Act 1988 shall not prevent a profit and loss account being prepared in accordance with the alteration.

Where the distributable pool would but for this subsection be determined by reference—then, for the purposes of the determination of the pool, the amount shown in the earlier account shall be recalculated using the same method as that used to calculate the amount mentioned in paragraph (a) above.

The alteration of the existing scheme shall be treated as being within subsection (8) of section 177B of the Taxes Act 1988 (alterations which are registrable and which once registered cannot give rise to Board’s power of cancellation).

In subsections (6) to (10) above “an existing scheme” means a scheme which, immediately before the day on which this Act is passed, is registered under Chapter III of Part V of the Taxes Act 1988.

After paragraph 19 of Schedule 8 to the Taxes Act 1988 there shall be inserted—

In Schedule 8 to the Taxes Act 1988 (profit-related pay schemes) paragraph 8(a) (employees working less than 20 hours a week excluded by scheme from receiving profit-related pay) shall be omitted.

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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

In Part V of Schedule 9 to the Taxes Act 1988 (profit sharing schemes) in paragraph 36(1)(a) (certain full-time employees and directors must be eligible to participate in scheme on similar terms) for the words “a full-time employee” there shall be substituted “ an employee ”.

In Schedule 5 to the Finance Act 1989 (employee share ownership trusts) in paragraph 4(2)(c) (trust deed must provide that certain persons are beneficiaries if they work at rate of at least 20 hours a week) for the words “at that given time he worked as an employee or” there shall be substituted “ in the case of a director, at that given time he worked as a ”.

Subsection (1) above shall apply in relation to any scheme not registered before the day on which this Act is passed.

Subsection (4) above shall apply in relation to any scheme not approved before the day on which this Act is passed.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Subsection (5) above shall apply in relation to trusts established on or after the day on which this Act is passed; and for this purpose a trust is established when the deed under which it is established is executed.

In Schedule 20 to the Finance Act 1993 (Lloyd’s underwriters: special reserve funds) paragraph 2 (general requirements about special reserve funds) shall be deemed to have been enacted with the modification in subsection (2) below.

For sub-paragraphs (2) and (3) there shall be substituted—

In section 119(1) of the Taxes Act 1988 (rent, &c., payable in connection with mines, quarries and similar concerns), the words from “and, subject to subsection (2) below, shall be subject to deduction of income tax” to the end shall cease to have effect.

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The provisions of this section have effect in relation to payments made after the passing of this Act.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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After subsection (4) of that section there shall be inserted—

In Schedule 8 to the Oil Taxation Act 1975 (procedural provisions as to allowance of unrelievable field losses), in paragraph 4 (claims)—

This section applies to claims made on or after the day on which this Act is passed.

In Schedule 17 to the Finance Act 1980 (transfer of interests in oil fields) paragraph 7 (transfer of unused losses from the old to the new participator) shall be amended as follows.

At the beginning of sub-paragraph (2) there shall be inserted “ Subject to the following provisions of this paragraph ”.

After sub-paragraph (2) there shall be inserted the following sub-paragraphs—

Section 42 of the Finance Act 1930 (relief from transfer stamp duty in case of transfer of property as between associated bodies corporate) shall be amended as mentioned in subsections (2) to (5) below.

In subsection (2) (as substituted by section 27(2) of the Finance Act 1967) for the words from “that the effect” to the end of the subsection there shall be substituted

The following subsections shall be inserted after subsection (2) (as so substituted)—

In subsection (3) (as so substituted) for “(2)” there shall be substituted “ (2B) ”, and the words from “with the substitution” to the end shall be omitted.

The following subsection shall be inserted after subsection (3) (as so substituted)—

In section 27 of the Finance Act 1967 (which relates to section 42 of the Finance Act 1930) in subsection (3)(c) for the words from “a change” to “third body corporate” there shall be substituted “ the transferor or a third body corporate ceasing to be the transferee’s parent (within the meaning of the said section 42) ”.

This section shall apply in relation to instruments executed on or after the day on which this Act is passed.

Section 11 of the Finance Act (Northern Ireland) 1954 (relief from stamp duty in case of transfer of property between associated bodies corporate) shall be amended as follows.

In subsection (2)(c)(iii) for the words from “a change” to “third body corporate” there shall be substituted “ the transferor or a third body corporate ceasing to be the transferee’s parent ”.

The following subsections shall be substituted for subsection (3)—

In subsection (3A) for the words “paragraphs (i) and (ii) of subsection (3)” there shall be substituted “ subsection (3AA) ”, and the words from “with the substitution” to the end shall be omitted.

The following subsection shall be inserted after subsection (3A)—

This section shall apply in relation to instruments executed on or after the day on which this Act is passed.

Stamp duty under Part II of Schedule 13 to the Finance Act 1999 (lease) shall not be chargeable on an instrument which is—as respects which the condition in subsection (2) below is satisfied. This subsection is subject to subsection (4A) below.

The condition is that it is shown to the satisfaction of the Commissioners of Inland Revenue that—

An arrangement falls within this subsection if it is one under which—and the relevant time is the time of the execution of the instrument.

Without prejudice to the generality of paragraph (a) of subsection (3) above, an arrangement shall be treated as within that paragraph if it is one under which the lessor or the lessee or a body corporate associated with either at the relevant time was to be enabled to provide any of the consideration, or was to part with any of it, by or in consequence of the carrying out of a transaction which involved (or transactions any of which involved) a payment or other disposition by a person other than a body corporate associated with the lessor or the lessee at the relevant time.

An instrument shall not be exempt from stamp duty by virtue of subsection (1) above if at the time the instrument is executed arrangements are in existence by virtue of which at that or some later time any person has or could obtain, or any persons together have or could obtain, control of the lessee but not of the lessor.

An instrument mentioned in subsection (1) above shall not be treated as duly stamped unless—

In this section—

For the purposes of this section bodies corporate are associated at a particular time if at that time one is the parent of the other or another body corporate is the parent of each.

For the purposes of this section one body corporate is the parent of another at a particular time if at that time the first body.

In subsection (8) above “ordinary share capital”, in relation to a body corporate, means all the issued share capital (by whatever name called) of the body corporate, other than capital the holders of which have a right to a dividend at a fixed rate but have no other right to share in the profits of the body corporate.

The ownership referred to in paragraph (a) of subsection (8) above is ownership either directly or through another body corporate or other bodies corporate, or partly directly and partly through another body corporate or other bodies corporate; and Part I of Schedule 4 to the Finance Act 1938 (determination of amount of capital held through other bodies corporate) shall apply for the purposes of that paragraph.

Chapter 6 of Part 5 of the Corporation Tax Act 2010 shall apply for the purposes of paragraphs (b) and (c) of subsection (8) as it applies for the purposes of section 151(4)(a) and (b) of that Act; but this is subject to subsection (10B).

In determining for the purposes of this section whether a body corporate is the parent of the lessor, sections 171(1)(b) and (3), 173, 174 and 176 to 178 of the Corporation Tax Act 2010 shall not apply for the purposes of paragraph (b) or (c) of subsection (8) above.

In this section, “control” shall be construed in accordance with section 1124 of the Corporation Tax Act 2010.

This section shall apply in relation to instruments executed on or after the day on which this Act is passed.

The Treasury may, by regulations, make such provision as they consider appropriate for securing that the enactments specified in subsection (2) below have effect in relation to—in a manner corresponding, subject to such modifications as the Treasury consider appropriate, to the manner in which they have effect in relation to unit trusts, to rights under, and the assets subject to, such trusts and to transactions for purposes connected with such trusts.

The enactments referred to in subsection (1) above are—

The power of the Treasury to make regulations under this section in relation to any such enactments shall include power to make provision which does any one or more of the following, that is to say—

The power to make regulations under this section shall be exercisable by statutory instrument and shall include power—

A statutory instrument containing regulations under this section shall be subject to annulment in pursuance of a resolution of the House of Commons.

In this section—“the enactments relating to stamp duty” means the Stamp Act 1891, and any enactment (including any Northern Ireland legislation) which amends or is required to be construed together with that Act;“the enactments relating to stamp duty reserve tax” means Part IV of the Finance Act 1986 and any enactment which amends or is required to be construed as one with that Part;“Northern Ireland legislation” shall have the meaning given by section 24(5) of the Interpretation Act 1978;“open-ended investment company” shall have the meaning given by section 236 of the Financial Services and Markets Act 2000;“prescribed” means prescribed by regulations under this section;“subordinate legislation” means any subordinate legislation within the meaning of the Interpretation Act 1978 or any order or regulations made by statutory instrument under Northern Ireland legislation; and“umbrella scheme” shall have the meaning given by section 619 of the Corporation Tax Act 2010; and references in this section to the enactments relating to stamp duty, or to any of them, or to Part IV of the Finance Act 1986 shall have effect as including references to enactments repealed by sections 107 to 110 of the Finance Act 1990.

Any reference in this section to unit trusts has effect—

For the purposes of this section the enactments which shall be taken to make provision in relation to companies that are members of the same group of companies shall include any enactments which make provision in relation to a case—

... The cultivation of short rotation coppice shall be regarded for the purposes of ... the Taxation of Chargeable Gains Act 1992 as farming (and, where relevant, as husbandry or agriculture) and not as forestry; and land in the United Kingdom on which the activity is carried on shall accordingly be regarded for those purposes as farm land or agricultural land, as the case may be, and not as woodlands.

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For the purposes of the Inheritance Tax Act 1984 the cultivation of short rotation coppice shall be regarded as agriculture; and accordingly for those purposes—

In subsections (1) and (2) “short rotation coppice” means a perennial crop of tree species planted at high density, the stems of which are harvested above ground level at intervals of less than ten years.

Subsection (1) and subsection (3) so far as relating to subsection (1) shall be deemed to have come into force on 29th November 1994.

Subsection (2) and subsection (3) so far as relating to subsection (2) shall have effect in relation to transfers of value or other events occuring on or after 6th April 1995.

In section 116 of the Inheritance Tax Act 1984 (relief for transfers of agricultural property) in subsection (2) (rate of relief) the word “either” shall be omitted and at the end of paragraph (b) there shall be inserted.

After subsection (2) of that section there shall be inserted the following subsection—

Subsections (1) and (2) above shall apply in relation to transfers of value made, and other events occurring, on or after 1st September 1995.

Section 67 of the Taxes Management Act 1970 (proceedings for tax in sheriff court) shall be amended as follows.

In subsection (1) (tax not exceeding a specified sum recoverable in sheriff court) for the words from “where” to “the tax” there shall be substituted “ tax due and payable under any assessment ”.

The following subsection shall be inserted after subsection (1)—

This section shall apply in relation to proceedings commenced after the day on which this Act is passed.

If, whether before or after the passing of this Act—the depositor shall be entitled to receive compensation under this section from the Board.

In this section “qualifying tax liability”, in relation to a tax deposit, means so much of any liability as is—

Subject to the following provisions of this section, the amount of the compensation to which the depositor is entitled under this section in the case of any deposit withdrawn for cash shall be equal to the difference between—

In subsection (3) above, the reference to the relevant part of the sum received on the withdrawal of a deposit is a reference to the following amount, that is to say—

The amount of compensation to which any person is entitled under this section shall also include an amount equal to interest, for the period from the withdrawal mentioned in subsection (1)(a) above until the payment of the compensation, on the amount determined in accordance with subsection (3) above; and a liability to compensation under this section shall not bear interest apart from in accordance with this subsection.

Section 178 of the Finance Act 1989 (interest rates) shall apply to subsection (5) above for determining the rate of the interest treated, by virtue of that subsection, as included in any compensation under this section; and any regulations under that section which are in force at the passing of this Act shall be deemed, subject to the powers of the Treasury under that section, to have effect in relation to this section as they have effect in relation to the enactments specified in subsection (2)(f) of that section (interest on overdue tax).

The part of any compensation under this section that represents interest under subsection (5) above shall not be treated as included in the income of the depositor for the purposes of income tax; but the remainder shall be chargeable to income tax under Chapter 2 of Part 4 of the Income Tax (Trading and Other Income) Act 2005 (interest).

No compensation shall be paid under this section unless a claim for it has been made to the Board.

Where any claim is made under this section with respect to any withdrawal for cash of a tax deposit—

Sums required by the Board for paying compensation under this section shall be issued to the Board by the Treasury out of the National Loans Fund.

A withdrawal for cash of a tax deposit shall be taken for the purposes of this section to occur at the same time as, under the relevant terms, it is deemed to occur for the purposes of the calculation of interest on the amount withdrawn.

This section shall be construed as one with the Tax Acts, and in this section—

In Part I of the Ports Act 1991 (transfer of statutory port undertakings), after section 15 (duty to provide information for purposes of levy) insert—.

Sections 115 to 120 of the Finance Act 1990 (levy on privatisation of certain ports) shall cease to have effect.

An Order in Council under paragraph 1(1)(b) of Schedule 1 to the Northern Ireland Act 1974 (legislation for Northern Ireland in the interim period) which states that it is made only for purposes corresponding to those of subsection (1) above—

In this Act “the Taxes Act 1988” means the Income and Corporation Taxes Act 1988.

In Part III of this Act “the Management Act” means the Taxes Management Act 1970.

Part V of this Act shall be construed as one with the Stamp Act 1891.

In section 21 (gaming machine licences)—

In subsection (3A) of that section (excepted machines), for paragraph (b) there shall be substituted the following paragraphs—

In subsection (1) of section 22 (duty on gaming machine licences), for “gaming machine” there shall be substituted “ amusement machine ”.

In subsection (2) of that section (meaning of “small-prize machine”), for “a gaming machine is a small-prize machine if” there shall be substituted “ an amusement machine is a small-prize machine if it is a prize machine and ”.

In subsection (1) of section 23 (determination of rate of duty by reference to Table), for “a gaming machine licence” there shall be substituted “ an amusement machine licence ”.

In subsection (2) of that section—

For the Table in that subsection (as substituted by section 13 of this Act) there shall be substituted the following Table—

For subsections (1) to (3) of section 25 (meaning of “gaming machine”) there shall be substituted the following subsections—

In subsection (4) of that section (machines playable by more than one person), for “a gaming machine” there shall be substituted “ a machine of any description ”.

For subsections (5) to (9) of that section there shall be substituted the following subsections—

In section 26 (supplementary provisions)—

In subsection (2) of that section—

After subsection (2) of that section there shall be inserted the following subsection—

In sections 31 and 33(2) (protection of officers and savings for prohibitions of gaming etc.), for the words “gaming machine licences”, in each case, there shall be substituted “ amusement machine licences ”.

In section 32(3) (orders subject to affirmative procedure), for “or 14(3)” there shall be substituted “ , 14(3) or 25A ”.

In section 33(1) (interpretation), in the definition of “gaming”, the words “(except where it refers to a machine provided for gaming)” shall be omitted.

In Schedule 4 (supplementary provisions in relation to gaming machine licence duty)—

In paragraph 1(2) of that Schedule (conditions of exemption for charitable entertainments etc.)—

In paragraph 2(2)(c) of that Schedule (conditions of exemption for pleasure fairs), for “and any other provided for gaming” there shall be substituted “ and any other amusement machines provided ”.

In paragraph 4 of that Schedule—

After paragraph 7 of that Schedule there shall be inserted the following paragraph—

In paragraph 11 of that Schedule (surrender), after sub-paragraph (1B) there shall be inserted the following sub-paragraph—

Paragraph 13 of that Schedule (labelling and marking of machines) shall cease to have effect.

In paragraph 14 of that Schedule (power to enter premises), for the words “for gaming” there shall be substituted “ for play ”.

In paragraph 16 of that Schedule (enforcement), after sub-paragraph (1) there shall be inserted the following sub-paragraph—

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In Schedule 1 to the 1994 Act (annual rates of duty) the following paragraph shall be substituted for paragraph 1 (annual rate of duty where no other rate specified)—

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Part IV of Schedule 1 to the 1994 Act (special machines) shall be amended as follows.

For the heading “SPECIAL MACHINES” there shall be substituted “ SPECIAL VEHICLES ”.

In paragraph 4(1) (annual rate of £35) for the words “special machine is £35” there shall be substituted “ special vehicle is the same as the basic goods vehicle rate ”.

In paragraph 4(2) (definition of “special machine”)—

Paragraph 4(3) (definition of “tractor”) shall be omitted.

The following sub-paragraph shall be inserted after sub-paragraph (6) of paragraph 4—

Paragraph 5 of Schedule 1 to the 1994 Act (recovery vehicles) shall be amended as follows.

In sub-paragraph (1) (annual rate of duty of £85) for the words “is £85” there shall be substituted

The following sub-paragraphs shall be inserted after sub-paragraph (5)—

Paragraph 7 of Schedule 1 to the 1994 Act (haulage vehicles) shall be amended as follows.

In sub-paragraph (1) for paragraphs (a) and (b) (rate of £100 for showmen’s vehicles and of £330 for other haulage vehicles) there shall be substituted—

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

Part VIII of Schedule 1 to the 1994 Act (goods vehicles) shall be amended as follows.

Paragraph 8 (basic rate) shall be omitted.

In paragraph 9(1) (rates of duty for rigid goods vehicles)—

The following table shall be substituted for the table in paragraph 9(1)—

For sub-paragraph (2) of paragraph 9 there shall be substituted the following sub-paragraphs—

In paragraph 10(1) (trailer supplement) for the words “plated gross weight (or relevant maximum weight)”—

In paragraph 10(2) (lower rate of trailer supplement)—

In paragraph 10(3) (higher rate of trailer supplement)—

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Paragraph 10(4) (reference to paragraph 12) shall be omitted.

In paragraph 11(1) (rates of duty for tractive units)—

The following table shall be substituted for the table in paragraph 11(1)—

For sub-paragraph (2) of paragraph 11 there shall be substituted the following sub-paragraphs—

Paragraph 12 (farmers’ goods vehicles and showmen’s goods vehicles) shall be omitted.

In paragraph 13(1) (regulations for reducing plated weights) for the words from “its plated gross weight” to “weight specified” there shall be substituted “ its revenue weight were such lower weight as may be specified ”.

In paragraph 14 (vehicles for conveying machines) sub-paragraphs (b) and (c) shall be omitted.

In paragraph 17(1) (meaning of “trailer”)—

Paragraph 17(2) (interpretation of paragraph 17(1)(e)) shall be omitted.

The following shall be inserted after paragraph 17—

This Part of this Schedule shall apply in relation to licences taken out on or after 1st July 1995.

This Part of this Schedule shall also apply in relation to any use after 30th June 1995 of a vehicle which—

In subsection (3) of section 61 of the 1994 Act (meaning of “appropriate plate”)—

After subsection (3) of that section there shall be inserted the following subsection—

Subsections (4), (5) and (7) of that section (relevant weights in Northern Ireland and definition of “design weight”) shall be omitted.

In section 7 of the 1994 Act (issue of vehicle licences)—

In section 11 of the 1994 Act (issue of trade licences) in subsection (1) (regulations about applications)—

This paragraph shall apply in relation to applications made after the day on which this Act is passed.

In section 13 of the 1994 Act (duration of trade licences) in subsection (1) at the end of paragraph (c) there shall be inserted “ and ending no later than the relevant date. ”

After subsection (1) of that section there shall be inserted—

This paragraph shall apply in relation to licences taken out after the day on which this Act is passed.

The following section shall be inserted after section 19 of the 1994 Act—

The following section shall be inserted after section 35 of the 1994 Act—

In section 36 of the 1994 Act (dishonoured cheques: additional liability) in subsection (1) for the words from “102” to “cheque)” there shall be substituted “ 35A ”.

This paragraph shall apply in relation to licences taken out after the day on which this Act is passed.

Section 22 of the 1994 Act (registration regulations) shall be amended as follows.

In subsection (1) the following paragraph shall be inserted after paragraph (d)—

The following subsections shall be inserted after subsection (1)—

In section 31 of the 1994 Act (relevant period for purposes of additional liability) in subsection (5)(b) (case where duty or amount equal to duty has been paid) the words “(or an amount equal to the duty due)” shall be omitted.

This paragraph shall apply in relation to offences committed after the day on which this Act is passed.

The following section shall be inserted after section 32 of the 1994 Act—

The following Schedule shall be inserted after Schedule 2 to the 1994 Act—

In section 37(2) of the 1994 Act (penalty where duty at higher rate is not paid) the following shall be omitted—

In section 41(1)(b) of the 1994 Act (order in Scotland in case of offence under section 37) the words “182 or” and “183 or” shall be omitted.

This paragraph shall apply in relation to proceedings begun after the day on which this Act is passed.

This paragraph applies where a vehicle licence is taken out—

While the licence is in force duty shall not, by virtue of any provision contained in Part III or IV of this Schedule other than paragraph 16(2) above, become chargeable under section 15 of the 1994 Act (vehicle used in manner attracting higher rate).

This paragraph applies where regulations to determine the seating capacity of a hackney carriage are made, or have effect as if made, under sub-paragraph (2) of paragraph 3 of Schedule 1 to the 1994 Act (as that paragraph has effect apart from the substitution made by paragraph 8 above).

The regulations shall have effect as if made under sub-paragraph (5) of paragraph 3 of that Schedule (as substituted by paragraph 8 above) to determine the seating capacity of a vehicle.

This paragraph shall apply in relation to licences taken out on or after 1st July 1995.

This paragraph applies where—

In such a case the amount of vehicle excise duty to be paid on the licence shall be £1,000.

This paragraph shall be construed in accordance with the 1994 Act.

This paragraph applies where paragraph 41 above does not apply and—

In such a case the amount of vehicle excise duty to be paid on the licence shall be an amount equal to £1,000 plus the old amount of duty.

The provisions falling within this sub-paragraph are—

For the purposes of this paragraph—

This paragraph shall be construed in accordance with the 1994 Act.

Section 53 (registration of insurers) shall be amended as follows.

In subsection (5) (Commissioners to cancel registration of person who ceases to receive premiums)—

The following subsection shall be inserted after subsection (5)—

Sub-paragraph (2) above shall apply in relation to notifications made under section 53(3) on or after the day on which this Act is passed.

Section 59 (review of Commissioners’ decisions) shall be amended as follows.

In subsection (1)(d) (review of decision with respect to assessment) for the words “under section 56 above” there shall be substituted “ falling within subsection (1A) below ”.

The following subsection shall be inserted after subsection (1)—

This paragraph shall apply in relation to assessments made on or after the day on which this Act is passed.

In Schedule 7 the following shall be inserted after paragraph 4—

In paragraph 5(1) of Schedule 7 (duty to provide record of anything removed in exercise of power) after the words “paragraph 4” there shall be inserted “ or 4A ”.

This paragraph applies to any policy which—

Where—Schedule 15 to that Act, in its application to the policy, shall have effect, in relation to that variation, with the omission of paragraph 4(3)(a) and the insertion at the end of paragraph 18(2) of the words set out in sub-paragraph (3) below.

Those words are as follows, that is to say, “ and as if for paragraph 3(2)(b) above there were substituted— ””

Section 150A (enterprise investment scheme) shall be amended as mentioned in sub-paragraphs (2) to (4) below; and the amendments made by sub-paragraphs (2) and (3) below shall apply in relation to shares issued on or after 1st January 1994.

The following subsection shall be inserted after subsection (2)—

In subsection (3) (reduction of relief) the following paragraph shall be inserted after paragraph (a)—.

The following subsections shall be inserted after subsection (8) (which disapplies provisions about exchanges, reconstructions or amalgamations in certain circumstances)—

The following section shall be inserted after section 150B—

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

The following Schedule shall be inserted after Schedule 5A—

This paragraph has effect in relation to gains accruing and events occurring on or after 29th November 1994.

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In section 347A of the Taxes Act 1988, after subsection (6) add—

In section 696 (absolute interests in residue), for subsection (3) there shall be substituted the following subsections—

For subsection (5) of that section there shall be substituted the following subsection—

Sub-paragraph (1) above has effect, subject to sub-paragraph (4) below, in relation to any payment made on or after 6th April 1995; and sub-paragraph (2) above shall have effect in relation to any estate the administration of which is completed on or after 6th April 1995.

Where any sum is deemed by virtue of subsection (3) of section 696 of the Taxes Act 1988 (as it has effect apart from this Schedule) and sections 652, 660 and 665 of the Income Tax (Trading and Other Income) Act 2005 to have been paid to any person as income for the year 1994-95 or any previous year of assessment, that sum shall be treated for the purposes of subsections (3A) and (5) of that section (as they have effect by virtue of this Schedule) as a sum actually paid in respect of that person’s absolute interest in that year of assessment.

After subsection (1) of section 697 (calculation of residuary income) there shall be inserted the following subsection—

In subsection (2) of that section (reduction of residuary income where benefits received are less than aggregate of residuary income), for the words from “his residuary income for” onwards there shall be substituted “ section 696 shall have effect as if the amount of the deficiency were to be applied in reducing the amount taken to be his residuary income for the year in which the administration of the estate is completed and, in so far as the deficiency exceeds that income, in reducing the amount taken to be his residuary income for the previous year, and so on. ”

Sub-paragraph (1) above has effect for ascertaining the residuary income of an estate for the year 1995-96 or any subsequent year of assessment; and sub-paragraph (2) above has effect in relation to any estate the administration of which is completed on or after 6th April 1995.

For subsection (2) of section 698 (special provisions as to successive interests in residue) there shall be substituted the following subsections—

This paragraph has effect in relation to any payment made on or after 6th April 1995 and, so far as it relates to the operation of section 695(3) or 696(5) of the Taxes Act 1988, in relation to any estate the administration of which is completed on or after that date.

At the beginning of sub-paragraph (1) of paragraph 4 of that Schedule (giving effect to claims and amendments) there shall be inserted the words “ Subject to sub-paragraphs (1A) and (3) below and to any other provision in the Taxes Acts which otherwise provides, ”.

After that sub-paragraph there shall be inserted the following sub-paragraph—

At the beginning of sub-paragraph (2) of that paragraph there shall be inserted the words “ Subject to sub-paragraph (3) below, ”.

After the said sub-paragraph (2) there shall be inserted the following sub-paragraph—

Section 59A of that Act (payments on account of income tax) shall have effect as respects the year 1996-97 with the modifications made by sub-paragraphs (2) to (7) below.

The references in subsections (1)(a) and (4A) to a person being assessed to income tax under section 9 of that Act shall be construed as references to his being assessed to income tax under section 29 of that Act.

The reference in subsection (1)(b) to the assessed amount shall be construed as a reference to the difference between that amount and the aggregate of the following, namely—

The reference in subsection (1)(c) to the relevant amount shall be construed as a reference to the difference between that amount and the amount of any income tax charged under Schedule E which—

Subsection (2) shall have effect as if it required—

Subsection (4) shall have effect as if it provided that, in the circumstances there mentioned—

Subsection (4A) shall have effect as if it provided that, in the circumstances and subject as there mentioned—

In this paragraph “higher rate” means a rate other than the basic rate or the lower rate.

This paragraph applies in the case of a partnership whose trade, profession or business is set up and commenced before 6th April 1994.

Section 32 of the Management Act (relief for double assessments to tax) shall have effect, as respects each partner and the year 1996-97, as if the partnership had not been assessed to income tax for that year.

Section 59B of that Act (payment of income tax and capital gains tax) shall have effect, as respects each partner and that year, as if his share of any income tax to which the partnership is assessed for that year were income tax which in respect of that year had been deducted at source.

This paragraph applies where, in the case of a trade, profession or vocation carried on by any person—

Subject to sub-paragraph (3) below, the said paragraph 2(2) shall have effect as if the reference to the appropriate percentage of the aggregate of the amounts there mentioned were a reference to the aggregate of—

Sub-paragraph (2) above does not apply where—and regulations under this sub-paragraph may make as respects trades or professions carried on by persons in partnership provision different from that made as respects trades, professions or vocations carried on by individuals.

In this paragraph—“the appropriate percentage” means the following expressed as a percentage, that is, 365 divided by the number of days in the transitional period;“the complementary percentage” means the difference between 100 per cent. and the appropriate percentage;“the transitional period” means the basis period for the year 1996-97 and the relevant period (within the meaning of paragraph 2 of Schedule 20 to the Finance Act 1994) taken together.

This paragraph applies where, in the case of a trade, profession or vocation carried on by any person—

Subject to sub-paragraph (3) below, paragraph 52 of that Schedule shall have effect as if the reference to the transitional overlap profit were a reference to the amount (if any) by which that profit exceeds 1.25 times the aggregate of the amounts falling within sub-paragraph (1)(b) above.

Sub-paragraph (3) of paragraph 1 above shall apply for the purposes of this paragraph as it applies for the purposes of that paragraph but subject to the following modifications, namely—

In this paragraph—“the appropriate percentage” means the following expressed as a percentage, that is, 365 divided by the number of days in the transitional overlap period;“the transitional overlap period” means the period beginning immediately after the end of—the basis period for the year 1996-97 (determined in accordance with paragraph 1 of Schedule 20 to the Finance Act 1994 despite the repeal by ITTOIA 2005 of that paragraph); or in the case of a trade or profession carried on by any person in partnership with other persons, the basis period of the partnership for that year (as so determined), and (in either case) ending with 5th April 1997;“the transitional overlap profit” means the amount mentioned in paragraph 52(2) of Schedule 2 to ITTOIA 2005.

This paragraph applies where, in the case of a trade or profession carried on by any person in partnership with other persons—

This sub-paragraph applies to money so contributed or advanced unless it was contributed or advanced wholly or mainly—

Subject to sub-paragraph (4) below, paragraph 52 of Schedule 2 to ITTOIA 2005 shall have effect as if the reference to the transitional overlap profit were a reference to the difference between that profit and the amount of interest paid by the partner in respect of the transitional overlap period on money to which sub-paragraph (2) above applies.

Sub-paragraph (3) above does not apply where—

In this paragraph—“relevant period” means a period the whole or part of which falls within the transitional overlap period;“the transitional overlap period” has the same meaning as in paragraph 3 above;“the transitional overlap profit” means the amount mentioned in paragraph 52(2) of Schedule 2 to ITTOIA 2005 (whether having effect with or without the modification made by paragraph 3(2) above).

This paragraph applies where, in the case of any income derived by any person from the carrying on by him of a trade, profession or vocation—

Subject to sub-paragraph (3) below, paragraph 53 of that Schedule shall have effect as if the reference to the transitional overlap profit were a reference to the amount (if any) by which that profit exceeds 1.25 times the aggregate of the amounts falling within sub-paragraph (1)(b) above.

Sub-paragraph (3) of paragraph 1 above shall apply for the purposes of this paragraph as it applies for the purposes of that paragraph but subject to the following modifications, namely—

In this paragraph—“the appropriate percentage” means the following expressed as a percentage, that is, 365 divided by the number of days in the transitional overlap period;“the transitional overlap period” means the period beginning immediately after the end of—the basis period for the year 1996-97 (determined in accordance with paragraph 1 of Schedule 20 to the Finance Act 1994 despite the repeal by ITTOIA 2005 of that paragraph); or in the case of any income derived by any person from the carrying on by him of a trade or profession in partnership with other persons, the basis period of the partnership for that year (as so determined), and (in either case) ending with 5th April 1997;“the transitional overlap profit” means the amount mentioned in paragraph 53(3) of Schedule 2 to ITTOIA 2005.

Nothing in subsection (2) or (3) of section 29 of the Management Act (as substituted by section 191 of the Finance Act 1994) shall prevent an assessment being made under subsection (1) of that section in any case where—

Nothing in subsection (3) or (4) of section 30B of the Management Act (amendment of partnership return where loss of tax discovered) shall prevent an amendment being made under subsection (1) of that section in any case where—

The condition referred to in sub-paragraphs (1) and (2) above is that either—

An officer of the Board shall not so amend a return under section 8 or 8A of the Management Act (personal or trustee return) as to give effect to paragraph 3, 5 or 7 above unless a notice stating—is given by such an officer at a time when the condition mentioned in sub-paragraph (2) below is fulfilled.

The condition referred to in sub-paragraph (1) above is that either—

Subject to sub-paragraph (4) below, a notice under sub-paragraph (1) above shall be conclusive of the matters stated in it.

An appeal may be brought against a notice under sub-paragraph (1) above at any time within the period of 30 days beginning with the date on which the notice is given.

Subject to sub-paragraph (6) below, the provisions of the Management Act relating to appeals shall have effect in relation to an appeal under sub-paragraph (4) above as they have effect in relation to an appeal against an assessment to tax.

On an appeal under sub-paragraph (4) above, section 50(6) to (8) of the Management Act (procedure on appeals) shall not apply but the Commissioners may—

Where a relevant return (as originally made) states—sub-paragraph (2) of that paragraph shall have effect, in its application to any amounts stated in the return (as so made) to fall within sub-paragraph (1)(b) of that paragraph or, in the case of paragraph 4 or 8 above, to be amounts which would have fallen within sub-paragraph (1)(b) of the preceding paragraph, as if the words “1.25 times” were omitted.

Where a relevant return (as originally made) states—sub-paragraph (2) of that paragraph shall have effect, in its application to any amounts stated in the return (as so made) to fall within sub-paragraph (1)(b) of that paragraph, as if for the words “62.5 per cent.” there were substituted the words “ 50 per cent ”.

In this paragraph—“relevant return” means a return which, for the relevant year, is made under section 8, 8A or 12AA of the Management Act in respect of the trade, profession or vocation or, as the case may be, the source of the income;“the relevant year” means—in relation to paragraph 1, 6, 9 or 10 above, the year 1996–97; in relation to paragraph 3, 4, 7 or 8 above, the year 1997–98.

Any accounting change or change of business practice is a relevant change for the purposes of paragraphs 1, 3 and 7 above unless—

In this paragraph “accounting change”—

In this paragraph “change of business practice” means any change in an established practice of trade, profession or vocation carried on by any person—

An agreement by which the person by whom a trade, profession or vocation is carried on agrees to sell or transfer trading stock or work in progress is a self-cancelling transaction for the purposes of paragraph 15 above if by the same or any collateral agreement that person—

In sub-paragraph (1) above—“trading stock” has the same meaning as in section 100 of the Taxes Act 1988;“work in progress”, in relation to a profession or vocation, means—any services performed in the ordinary course of the profession or vocation, the performance of which is wholly or partly completed at the time of the sale or transfer and for which it would be reasonable to expect that a charge would have been made on their completion if the sale or transfer had not been effected; and any article produced, and any such material as is used, in the performance of any such services, and references in that sub-paragraph to the sale or transfer of work in progress shall include references to the sale or transfer of any benefits and rights which accrue, or might reasonably be expected to accrue, from the carrying out of the work.

For the purposes of paragraph 15 above, any question whether the person by whom a trade, profession or vocation is carried on is connected with another person shall be determined in accordance with sub-paragraphs (2) to (5) below.

An individual carrying on a trade, profession or vocation is connected with another person if they are connected with each other within the meaning of section 993 of the Income Tax Act 2007 (but as if, in subsection (4) of that section, the words from “But this subsection” to the end were omitted).

Persons carrying on a trade or profession in partnership are connected with an individual if he controls the partnership.

Persons carrying on a trade or profession in partnership are connected with a company if the company controls the partnership or the same person controls both the company and the partnership.

Persons carrying on a trade or profession in partnership are connected with persons carrying on another trade or profession in partnership if the same person controls both partnerships.

In this paragraph—

In this Schedule “turnover”, in relation to a trade, profession or vocation, means the amounts derived from the provision of goods or services falling within its ordinary activities, after deduction of trade discounts and value added tax.

Obtaining a tax advantage shall not be regarded as a bona fide commercial reason for the purposes of this Schedule.

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Schedule 24 to the Taxes Act 1988 (assumptions for calculating chargeable profits etc.) shall be amended as mentioned in sub-paragraphs (2) to (5) below; and—

In paragraph 1 (general assumptions for calculating chargeable profits etc.) in sub-paragraph (4) (assumption for certain purposes that a direction has been given) before the words “it shall be assumed” there shall be inserted “ in determining the chargeable profits of the company for the accounting period mentioned in paragraph (a) above ”.

Paragraph 4A (computation of basic profits or losses of a trade) shall be deemed never to have been inserted.

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