UKPGA-1997-16 Finance Act 1997 UK

In section 5 of the Alcoholic Liquor Duties Act 1979 (spirits), for “£19.78” there shall be substituted “ £18.99 ”.

In Part II of the Table of rates of duty in Schedule 1 to that Act (wine or made-wine of a strength exceeding 22 per cent.), for “19.78” there shall be substituted “ 18.99 ”.

This section shall be deemed to have come into force at 6 o’clock in the evening of 26th November 1996.

For Part I of the Table of rates of duty in Schedule 1 to the Alcoholic Liquor Duties Act 1979 (wine and made-wine of a strength not exceeding 22 per cent.) there shall be substituted—

This section shall be deemed to have come into force on 1st January 1997.

In subsection (1A) of section 62 of the Alcoholic Liquor Duties Act 1979 (rates of excise duty on cider)—

After subsection (6) of that section there shall be inserted the following subsection—

After that section there shall be inserted the following section—

In section 64 of that Act (remission or repayment of duty on spoilt cider), after subsection (1) there shall be inserted the following subsection—

This section shall be deemed to have come into force on 1st January 1997.

Any order or regulations made under section 62 or 64 of the Alcoholic Liquor Duties Act 1979 before 1st January 1997—

After the section 62A inserted into the Alcoholic Liquor Duties Act 1979 by section 3 above there shall be inserted the following section—

This section shall be deemed to have come into force on 1st January 1997.

After section 55A of the Alcoholic Liquor Duties Act 1979 there shall be inserted the following section—

In section 1 of that Act (interpretation)—

In section 2(3A) of that Act (regulations may provide for duty to be charged by reference to strengths shown on bottle labels)—

In section 56(1)(c) of that Act (restriction on use of wine in production of made-wine), after “of wine” there shall be inserted “ or cider ”.

Subsections (1) and (2) above shall be deemed to have come into force on 1st January 1997.

In section 6(1) of the Hydrocarbon Oil Duties Act 1979, for “£0.3912” (duty on light oil) and “£0.3430” (duty on heavy oil) there shall be substituted “ £0.4168 ” and “ £0.3686 ”, respectively.

In section 8(3) of that Act (duty on road fuel gas), for “£0.2817” there shall be substituted “ £0.2113 ”.

In section 11(1) of that Act (rebate on heavy oil), for “£0.0181” (fuel oil) and “£0.0233” (gas oil) there shall be substituted “ £0.0194 ” and “ £0.0250 ”, respectively.

In section 14(1) of that Act (rebate on light oil for use as furnace fuel), for “£0.0181” there shall be substituted “ £0.0194 ”.

This section shall be deemed to have come into force at 6 o’clock in the evening of 26th November 1996.

In section 1 of the Hydrocarbon Oil Duties Act 1979 (definitions of oil)—

In section 6 of that Act (excise duty on hydrocarbon oil), in subsection (1) (as amended by section 6 above), for the words from “the rate of £0.4168” to the end of the subsection there shall be substituted “ the rates specified in subsection (1A) below. ”

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In subsection (3) of that section, for “that subsection” there shall be substituted “ subsection (1A) above ”.

In section 11(1) of that Act (rebate on heavy oil)—

In section 13AA(6) of that Act (rate for rebated gas oil), for “section 6(1) above in the case of heavy oil” there shall be substituted “ section 6(1A) above in the case of heavy oil which is not ultra low sulphur diesel, ”.

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In section 27(1) of that Act (interpretation)—

In Schedule 2A to that Act (mixing of heavy oil)—

This section shall come into force on such day as the Commissioners of Customs and Excise may by order made by statutory instrument appoint.

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 26th November 1996.

In subsection (2) of section 30 of the Finance Act 1994 (rate of duty for journeys ending in the UK, another EEA State or certain territories for whose external relations either the UK or another member State is responsible), for “£5” there shall be substituted“ £10 ”.

In subsection (4) of that section (rate of duty in other cases), for “£10” there shall be substituted“ £20 ”.

This section applies in cases where, in accordance with section 28(2)(a) of that Act (duty becomes due when aircraft first takes off on passenger’s flight), duty becomes due on or after 1st November 1997.

A gaming licence shall not be required under section 13 of the Betting and Gaming Duties Act 1981 (gaming licence duty) for any gaming on or after 1st October 1997; but a duty of excise (to be known as “gaming duty”) shall be charged in accordance with section 11 below on any premises in the United Kingdom where gaming to which this section applies (“dutiable gaming”) takes place on or after that date.

Subject as follows, this section applies to—

This section does not apply to any lawful gaming which is gaming to which any of the following provisions applies and takes place in accordance with the requirements of that provision, that is to say—

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This section does not apply to the playing of a game in respect of which—

This section does not apply to the playing of bingo.

This section does not apply to any lawful gaming which consists of games played in Great Britain at an entertainment in respect of which all the payments made by the players (whether by way of entrance fee or stake or otherwise) are, after making permissible deductions from those payments, applied for a purpose other than that of private gain (within the meaning of the Gambling Act 2005).

For the purposes of subsection (3B), only the following deductions are permissible deductions—

This section does not apply—

The Treasury may by order made by statutory instrument provide that any specified game is or is not to be a casino game or equal chance gaming for the purposes of this section if it appears to them, having regard to the character of the game and the circumstances in which it is played, that it is appropriate to do so.

Any reference in an order under subsection (5) above to a particular game shall be taken to include a reference to any game (by whatever name called) which is essentially similar to that game.

In this section, “bingo” includes any version of that game, whatever name it is called.

Gaming duty shall be charged on premises for every accounting period which contains a time when dutiable gaming takes place on those premises.

Subject to subsections (3), (4A) and (4B) below, the amount of gaming duty which is charged on any premises for any accounting period shall be calculated, in accordance with the following Table, by—

Where, in an accounting period, unregistered gaming takes place on any premises, the amount of gaming duty which is charged on those premises for that period shall be equal to 50 per cent of the gross gaming yield in that period from the premises.

For the purposes of subsection (3) above, unregistered gaming takes place on premises in an accounting period if—

Where the gaming duty provisions of this Act have effect in relation to any premises as if accounting periods were periods longer or shorter than six months (“alternative accounting periods”) as a result of—then for the purposes of determining the amount of gaming duty which is to be charged on those premises for that period, the Table in subsection (2) is modified in accordance with subsection (4B).

Each amount specified in column 1 of the Table is multiplied by—A B where—A is the number of days in the alternative accounting period directed or agreed, and B is the number of days in the period that would have been the accounting period in the absence of any direction or agreement (or where the alternative accounting period spans more than one such period, the first of those periods).

The Commissioners may by regulations—

Where the Commissioners are satisfied—the Commissioners may direct that for the purposes of gaming duty the different premises are to be treated as different parts of the same premises.

Sections 13A to 16 of the Finance Act 1994 (review and appeals) shall have effect in relation to any decision of the Commissioners to make or vary a direction under subsection (6) above as if that decision were a decision of a description falling within section 13(A)(2)(j) of that Act.

For the purposes of this section the gross gaming yield from any premises in any accounting period shall consist of the aggregate of—

For the purposes of subsection (8) above the gaming receipts for an accounting period from any premises are the receipts in that period from charges made in connection with any dutiable gaming which has taken place on the premises other than—

In subsection (8) above the banker's profits from any gaming are—

Where the gross gaming yield from any premises in an accounting period is a negative amount (“amount X”)—

Subsections (2) to (6)(a) of section 20 of the Betting and Gaming Duties Act 1981 (expenditure on bingo winnings: valuation of prizes) apply, with any necessary modifications, for the purposes of gaming duty as they apply for the purposes of bingo duty.

The Treasury may by order made by statutory instrument amend subsections (8) to (10A) above.

The liability to pay the gaming duty charged on any premises for any accounting period shall fall jointly and severally on—

A person shall for the purposes of this section be conclusively presumed to be a provider of premises at any time if at that time—

The Commissioners may by regulations make provision—

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Any failure by any person to pay any amount of gaming duty due from him—

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Schedule 1 to this Act (which makes supplemental provision with respect to gaming duty) shall have effect.

Schedule 2 to this Act (which amends the Customs and Excise Management Act 1979 and contains other amendments) shall have effect.

Any power conferred on the Commissioners by section 11 or 12 above or Schedule 1 to this Act to make regulations—

A statutory instrument containing an order under section 10(5) providing that any game is to be a casino game or equal chance gaming or any order under section 11(11)—

In reckoning the period of 28 days mentioned in subsection (2)(b) above, no account shall be taken of any time during which Parliament is dissolved or prorogued or during which the House of Commons is adjourned for more than four days.

A statutory instrument containing an order under section 10(5) that does not provide for any game to be a casino game or equal chance gaming is subject to annulment in pursuance of a resolution of the House of Commons.

This section shall have effect for the purposes of construing the gaming duty provisions of this Act, that is to say, sections 10 to 14 above, this section and Schedule 1 to this Act.

The gaming duty provisions of this Act shall be construed as one with the Customs and Excise Management Act 1979.

In the gaming duty provisions of this Act—“accounting period” means, subject to the provisions of Schedule 1 to this Act, a period of six months beginning with 1st April or 1st October;“casino games” means games of chance which are not equal chance gaming (but subject to any order under section 10(5));“dutiable gaming” means gaming to which section 10 above applies;“equal chance gaming”—in Great Britain, means gaming which does not involve playing or staking against a bank (however described, and whether or not controlled or administered by a player) and in which the chances are equally favourable to all participants, and in Northern Ireland, means gaming in respect of which none of the conditions specified in Article 55 of the Betting, Gaming, Lotteries and Amusements (Northern Ireland) Order 1985 is met,(but subject to any order under section 10(5));“gaming” has the same meaning as in the Betting and Gaming Duties Act 1981 (see section 33(1));“the gaming duty register” means the register maintained under paragraph 1 of Schedule 1 to this Act;“premises” includes any place and any means of transport and shall be construed subject to section 11(6) above;“provider”, in relation to any premises where gaming takes place, means any person having a right to control the admission of persons to those premises, whether or not he has a right to control the admission of persons to the gaming.

For the avoidance of doubt it is hereby declared that the imposition or payment of gaming duty does not make lawful any gaming which is otherwise unlawful.

In Schedule 1 to the Vehicle Excise and Registration Act 1994 (annual rates of duty), in paragraph 1(2) (the general rate), for “£140” there shall be substituted “ £145 ”.

This section applies in relation to licences taken out after 26th November 1996.

After section 19A of the Vehicle Excise and Registration Act 1994 there shall be inserted the following section—

In subsection (1)(a) of section 35A of that Act (dishonoured cheques)—

In paragraph 3 of Schedule 2A to the Vehicle Excise and Registration Act 1994 (immobilisation, removal and disposal of vehicles), for sub-paragraph (1) there shall be substituted the following sub-paragraph—

In sub-paragraph (2) of that paragraph, for “an authorised person, or a person acting under the direction of an authorised person” there shall be substituted “ the authorised person, or a person acting under his direction ”.

In sub-paragraph (6) of that paragraph, for “when the immobilisation device was fixed” there shall be substituted “ when the vehicle was removed ”.

This section shall come into force on such day as the Secretary of State may by order made by statutory instrument appoint.

For section 51 of the Finance Act 1994 (rate of tax) there shall be substituted—

In section 73(1) of the Finance Act 1994 (general interpretation) there shall be inserted at the appropriate places—.

After section 51 of the Finance Act 1994 (rate of tax) there shall be inserted—

In section 74 of the Finance Act 1994 (regulations and orders)—

After Schedule 6 to the Finance Act 1994 there shall be inserted the Schedule set out in Schedule 4 to this Act.

For section 69 of the Finance Act 1994 (reduced chargeable amount) there shall be substituted—

Accordingly, in section 50 of the Finance Act 1994 (chargeable amount) in subsection (3) (which provides that subsection (2) has effect subject to section 69) for “Subsection (2)” there shall be substituted “ Subsections (1) and (2) ”.

Except as provided by subsection (2) below, sections 21 to 23 above have effect in relation to a premium which falls to be regarded for the purposes of Part III of the Finance Act 1994 as received under a taxable insurance contract by an insurer on or after 1st April 1997.

Sections 21 to 23 above do not have effect in relation to a premium if the premium—

Subsection (2) above does not apply in relation to a premium if the premium—

Without prejudice to the generality of subsections (1) to (3) above, those subsections shall be construed in accordance with sections 67A to 67C of the Finance Act 1994 (which are inserted by section 29 below).

After section 52 of the Finance Act 1994 there shall be inserted—

The amendment made by subsection (1) above has effect in relation to payments in respect of fees charged on or after the day on which this Act is passed.

The Finance Act 1994 shall be amended in accordance with the following provisions of this section.

In section 53A (information required to keep register up to date) in subsection (1)(b), after the words “register kept under section 53” there shall be inserted “ or 53AA ”.

In section 55 (credit)—

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In section 59 (review of Commissioners’ decisions) in subsection (1) (which specifies the kinds of decision to which the section applies) after paragraph (b) there shall be inserted—.

In section 62 (partnership, bankruptcy, transfer of business etc) in subsections (1) and (5), after “insurer”, wherever occurring, there shall be inserted “ or taxable intermediary ”.

In section 63(1) (which details the functions of representative members of groups of companies)—

In section 73 (interpretation) in subsection (1) there shall be inserted at the appropriate places—

At the beginning of subsection (3) of that section (meaning of “registrable person”) there shall be inserted “ Subject to subsection (3A) below, ” and after that subsection there shall be inserted—

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In section 72 of the Finance Act 1994 (interpretation: premium) after subsection (1) there shall be inserted—

The amendment made by subsection (1) above has effect in relation to payments received in respect of amounts charged on or after 1st April 1997.

After section 67 of the Finance Act 1994 there shall be inserted—

In the application of sections 67A to 67C of the Finance Act 1994 in relation to the increases in insurance premium tax effected by this Part and the exceptions from those increases—

The amendment made by subsection (1) above has effect on and after 26th November 1996.

After subsection (7) of section 72 of the Finance Act 1994 (insurance premiums to be treated as received by the insurer when received by another person on his behalf) there shall be inserted—

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

This section applies in relation to amounts deducted on or after the day on which this Act is passed.

In Schedule 1 to the Value Added Tax Act 1994 (registration in respect of taxable supplies), after paragraph 1 there shall be inserted the following paragraph—

In sub-paragraph (2) of paragraph 2 of that Schedule (power of Commissioners to make direction for aggregation of businesses)—and, accordingly, in sub-paragraph (4) of that paragraph (power of Commissioners to make supplementary direction) the word “properly” shall be omitted.

In section 84(7) of that Act (determination of appeals against directions), for the words from “as to the matters” onwards there shall be substituted “ that there were grounds for making the direction. ”

This section has effect in relation to the making of directions on or after the day on which this Act is passed.

In Group 15 of Schedule 8 to the Value Added Tax Act 1994 (charities etc), for Note (1) there shall be substituted the following Note—

This section has effect in relation to supplies made on or after 26th November 1996.

In Group 15 of Schedule 8 to the Value Added Tax Act 1994 (charities etc), after Note (4) there shall be inserted the following Notes—

After Note (5) to that Group there shall be inserted the following Notes—

This section has effect in relation to supplies made on or after 26th November 1996.

Section 96 of the Value Added Tax Act 1994 (interpretation) shall have effect, and be deemed always to have had effect, with the following subsection inserted after subsection (10), namely—

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Amendments corresponding to those made by subsections (1) and (2) above shall be deemed to have had effect, for the purposes of the cases to which it applied, in relation to the Value Added Tax Act 1983; and any provisions about the coming into force of any amendment of that Act shall be deemed to have had effect accordingly.

Nothing in this section shall be taken to affect the operation, in relation to times before its repeal took effect, of paragraph 4 of Schedule 10 to the Value Added Tax Act 1994 or of any enactment re-enacted in that paragraph.

Paragraphs 2(3A) and 3(8A) of Schedule 10 to the Value Added Tax Act 1994 (which relate to grants of land made to connected persons where they are not fully taxable) shall not have effect in relation to any supply made after 26th November 1996.

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In Schedule 9 to the Value Added Tax Act 1994 (exemptions), for Group 2 (insurance) there shall be substituted the following Group—

This section has effect in relation to supplies made on or after the day on which this Act is passed.

In section 36 of the Value Added Tax Act 1994, paragraph (b) of subsection (4) (condition of bad debt relief that property in goods supplied has passed) shall not apply in the case of any claim made under that section in relation to a supply of goods made after the day on which this Act is passed.

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No claim for a refund may be made in accordance with section 22 of the Value Added Tax Act 1983 (old scheme for bad debt relief) at any time after the day on which this Act is passed.

In section 43 of the Value Added Tax Act 1994 (groups of companies), after subsection (1) there shall be inserted the following subsections—

In subsection (2) of that section (self supplies), at the end there shall be inserted “and may provide for that purpose that the representative member is to be treated as a person of such description as may be determined under the order.”

Subsection (1) above has effect in relation to any supply made after 26th November 1996 and in relation to any acquisition or importation taking place after that date.

In section 43 of the Value Added Tax Act 1994 (groups of companies), after subsection (2) there shall be inserted the following subsections—

Subject to subsection (3) below, subsection (1) above has effect in relation to supplies made on or after 26th November 1996.

Section 43 of the Value Added Tax Act 1994 shall have effect in relation to supplies made after the day on which this Act is passed with the provisions inserted by subsection (1) above modified in accordance with subsections (4) and (5) below.

In subsection (2A), in paragraph (c) for the words from “services” to the end of the paragraph there shall be substituted “ any services falling within paragraphs 1 to 8 of Schedule 5 which do not fall within any of the descriptions specified in Schedule 9; ”.

In subsection (2C), at the beginning there shall be inserted “Except in so far as the Commissioners may by regulations otherwise provide,”.

Section 78 of the Value Added Tax Act 1994 (interest) shall have effect, and be deemed always to have had effect, with the insertion of the following subsection after subsection (1)—

That section shall have effect in relation to any claim made on or after 18th July 1996, and shall be deemed always to have had effect in relation to such a claim, with the substitution of the following subsection for subsection (11)—

That section shall have effect, and be deemed always to have had effect, with the substitution of the following paragraph for paragraph (a) of subsection (12)—.

For subsections (8) and (9) of that section (periods in respect of which the Commissioners are not liable to interest) there shall be substituted the following subsections—

Subsection (4) above shall have effect for the purposes of determining whether any period beginning on or after the day on which this Act is passed is left out of account.

Amendments corresponding to those made by subsections (1) and (3) above shall be deemed to have had effect, for the purposes of the cases to which the enactments applied, in relation to the enactments directly or indirectly re-enacted in section 78 of the Value Added Tax Act 1994.

After section 78 of the Value Added Tax Act 1994 there shall be inserted the following section—

In section 83 of that Act (matters subject to appeal), after paragraph (s) there shall be inserted the following paragraph—.

In section 84 of that Act (further provisions as to appeals), after subsection (3) there shall be inserted the following subsection—

Subsection (1) above shall be deemed to have come into force on 4th December 1996 in relation to amounts paid by way of interest at any time on or after 18th July 1996.

Subsections (2) and (3) above shall be deemed to have come into force on 4th December 1996 in relation to assessments made on or after that date.

Section 76(10) of the Value Added Tax Act 1994 (notification to representative of person who made acquisition) shall have effect, and be deemed always to have had effect, as if for “the person who made the acquisition in question” there were substituted “ another ”.

In section 80 of the Value Added Tax Act 1994, after subsection (3) (defence of unjust enrichment to claim for repayment of an overpayment) there shall be inserted the following subsections—

After section 80 of that Act there shall be inserted the following sections—

In section 83 of that Act (matters subject to appeal), after paragraph (t) there shall be inserted the following paragraph—.

Subsection (1) above has effect for the purposes of making any repayment on or after the day on which this Act is passed, even if the claim for that repayment was made before that day.

For subsections (4) and (5) of section 80 of the Value Added Tax Act 1994 (time limit for making claim for a repayment of an overpayment) there shall be substituted the following subsection—

Subject to subsections (3) and (4) below, subsection (1) above shall be deemed to have come into force on 18th July 1996 as a provision applying, for the purposes of the making of any repayment on or after that date, to all claims under section 80 of the Value Added Tax Act 1994, including claims made before that date and claims relating to payments made before that date.

Subsection (4) below applies as respects the making of any repayment on or after 18th July 1996 on a claim under section 80 of the Value Added Tax Act 1994 if—

Where this subsection applies in the case of any claim—

In subsection (3)(d) above—

After the subsection (4) inserted in section 80 of the Value Added Tax Act 1994 by this section there shall be inserted the following subsections—

In section 83 of that Act (matters subject to appeal), in paragraph (t), after “80” there shall be inserted “ , an assessment under subsection (4A) of that section or the amount of such an assessment ”.

Nothing contained in—shall be taken, in relation to any time on or after 18th July 1996, to have conferred an entitlement on any person to receive, by way of repayment, any amount to which he would not have had any entitlement on a claim under section 80 of that Act.

Subsections (6) to (8) above shall be deemed to have come into force on 4th December 1996.

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In this section—“the Commissioners” means the Commissioners of Customs and Excise; and“legal proceedings” means any proceedings before a court or tribunal.

Without prejudice to the generality of paragraph 1(2) of Schedule 13 to the Value Added Tax Act 1994 (transitional provisions), the references in this section, and in subsection (4) of section 80 of that Act (as inserted by this section), to a claim under that section include references to a claim first made under section 24 of the Finance Act 1989 (which was re-enacted in section 80).

In section 81 of the Value Added Tax Act 1994 (which makes provision for the set-off of credits and debits), after subsection (3) there shall be inserted the following subsection—

Subsection (1) above shall be deemed to have come into force on 18th July 1996 as a provision applying for determining the amount of any payment or repayment by the Commissioners on or after that date, including a payment or repayment in respect of a liability arising before that date.

Where—the Commissioners may, to the best of their judgement, assess the amount of the continuing liability of the taxpayer and notify it to him.

In subsection (1) above the reference to the continuing liability of the taxpayer is a reference to so much of the liability to pay the relevant sum as—

The taxpayer’s only liabilities under the 1994 Act in respect of his failure, on or after the time mentioned in subsection (1)(b) above, to pay an amount assessable under this section shall be—

Subsections (2) to (8) of section 78A of the 1994 Act apply in the case of an assessment under subsection (1) above as they apply in the case of an assessment under section 78A(1) of that Act.

The 1994 Act shall have effect as if the matters specified in section 83 of that Act (matters subject to appeal) included an assessment under this section and the amount of such an assessment.

Nothing contained in—shall be taken, in relation to any time on or after 18th July 1996, to have conferred on any person any entitlement, otherwise than in accordance with section 81(3) of that Act, to set any amount, as an amount due from the Commissioners, against any sum which that person was liable to pay to the Commissioners by way of VAT, penalty, interest or surcharge.

In this section—“the 1994 Act” means the Value Added Tax Act 1994; and“the Commissioners” means the Commissioners of Customs and Excise.

This section shall be deemed to have come into force on 4th December 1996.

Where at any time on or after 4th December 1996 and before the day on which this Act is passed any assessment corresponding to an assessment under this section was made under a resolution of the House of Commons having effect in accordance with the provisions of the Provisional Collection of Taxes Act 1968, this section has effect, on and after the day on which this Act is passed, as if that assessment were an assessment under this section and as if any appeal brought under that resolution had been brought under this section.

Schedule 5 to this Act (which makes provision in relation to excise duties, insurance premium tax and landfill tax which corresponds to that made for VAT by sections 44 to 48 above) shall have effect.

Schedule 6 to this Act (which makes further provision for the assessment of amounts payable under enactments relating to excise duty) shall also have effect.

The Commissioners may by regulations not having effect in England and Wales or Scotland make provision—

The provision that may be contained in regulations under this section shall include, in particular—

Regulations under this section may—and the transitional provision that may be contained in regulations under this section shall include transitional provision in connection with the coming into force of the repeal by this Act of any other power by regulations to make provision for or in connection with the levying of distress.

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.

The following are relevant taxes for the purposes of this section, that is to say—

In this section “the Commissioners” means the Commissioners of Customs and Excise.

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In section 117 of the Customs and Excise Management Act 1979 (execution and distress against revenue traders), after subsection (4) there shall be inserted the following subsection—

In section 11(1)(a) of the Finance Act 1994 (walking possession agreements in connection with enforcement of excise duty)—

In section 13(6) of the Finance Act 1994 (assessment for penalties), for the words “duty of excise”, in each place where they occur, there shall be substituted “ relevant duty ”.

In section 18(8) of the Finance Act 1994 (saving relating to section 18(1), (2) and (4)), for “, (2) and (4)” there shall be substituted “ and (2) ”.

In paragraph 19(1)(a) of Schedule 7 to the Finance Act 1994 (walking possession agreements in connection with enforcement of insurance premium tax), for “paragraph 7(7) above” there shall be substituted “ section 51 of the Finance Act 1997 (enforcement by distress) ”.

In section 48 of the Value Added Tax Act 1994 (VAT representatives), after subsection (7) there shall be inserted the following subsection—

In section 68(1)(a) of the Value Added Tax Act 1994 (walking possession agreements), for “paragraph 5(4) of Schedule 11” there shall be substituted “ section 51 of the Finance Act 1997 (enforcement by distress) ”.

In paragraph 24(1)(a) of Schedule 5 to the Finance Act 1996 (walking possession agreements in connection with the enforcement of landfill tax), for “paragraph 13(1) above” there shall be substituted “ section 51 of the Finance Act 1997 (enforcement by distress) ”.

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 purposes.

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In subsection (1) of section 265 of the Taxes Act 1988 (blind person’s allowance), for “£1,250” there shall be substituted “ £1,280 ”.

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Subsection (1) above shall apply for the year 1997-98 and, subject to subsection (2) above, for subsequent years of assessment.

Section 120 of the Taxes Act 1988 (payments for wayleaves for electricity cables, telephone lines, etc.) shall be amended as follows.

In subsection (1) (payments charged under Schedule D subject to deduction of tax)—

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

Subsections (2) to (4) and, in subsection (5), paragraph (c) and the word “and” immediately preceding it shall cease to have effect.

This section has effect in relation to payments made on or after 6th April 1997.

In subsection (5) of section 236 of the Taxes Act 1988 (meaning of “relevant profits”)—

After subsection (7) of that section there shall be inserted the following subsection—

This section has effect (subject to subsection (4) below) for the purposes of computing the relevant profits (within the meaning of section 236 of the Taxes Act 1988) arising to a company in any period falling wholly or partly after 7th October 1996.

No foreign income dividend paid before 8th October 1996 shall be included or, as the case may be, excluded by virtue of this section from any such profits as are mentioned in subsection (3) above.

In section 246D(5) of the Taxes Act 1988 (section 233(1) and (1A) of that Act not to apply to FIDs paid to individuals, personal representatives or certain trustees), after “representatives” there shall be inserted“ , a foreign income dividend paid to the trustees of a unit trust scheme to which section 469 applies ”.

This section has effect in relation to distributions made on or after 26th November 1996.

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Schedule 13 to this Act (which contains amendments of the transitional provisions in Schedule 15 to the Finance Act 1996) shall have effect.

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

In paragraph (a) of subsection (3) of section 132 (meaning of conversion of securities)—

After that subsection there shall be inserted the following subsections—

In section 116(2) (qualifying corporate bonds), after the word “section”, in the first place where it occurs, there shall be inserted “ references to a transaction include references to any conversion of securities (whether or not effected by a transaction) within the meaning of section 132 and ”.

In section 251(6) (deemed securities), after paragraph (d) there shall be inserted—

This section has effect for the purposes of the application of the Taxation of Chargeable Gains Act 1992 in relation to any disposal on or after 26th November 1996 and shall so have effect, where a conversion took place at a time before that date, as if it had come into force before that time.

After section 138 of the Taxation of Chargeable Gains Act 1992 there shall be inserted the following section—

Subject to subsections (3) to (8) below—

Subject to subsections (4) to (6) below, an election under section 138A of the Taxation of Chargeable Gains Act 1992 in respect of a right conferred on any person before 26th November 1996 may be made at any time before the end of the period for the making of such an election in respect of a right conferred on that person on that date.

An election in respect of a right conferred on any person shall not be made by virtue of subsection (3) above at any time after the final determination of his liability to corporation tax or capital gains tax for the chargeable period in which the right was in fact conferred on him.

A notice given to an officer of the Board before the day on which this Act is passed shall not have effect as an election under section 138A of the Taxation of Chargeable Gains Act 1992, or the corresponding provision applying to chargeable periods beginning before 6th April 1992, except in accordance with subsection (6) below.

Where—

Where any notification given as mentioned in subsection (6)(b)(ii) above is treated as an election for the purposes of section 138A of the Taxation of Chargeable Gains Act 1992 or any corresponding provision, that section or, as the case may be, the corresponding provision shall be taken to have no effect by virtue of that election in relation to any disposal before 26th November 1996 of any asset which—

Subsection (7) above shall not prevent section 138A of the Taxation of Chargeable Gains Act 1992 from being taken, for the purposes of applying that Act to any disposal on or after 26th November 1996, to have had effect in relation to—

Section 824 of the Taxes Act 1988 (repayment supplements), where it has effect as amended by paragraph 41 of Schedule 19 to the Finance Act 1994, shall be amended in accordance with subsections (2) to (4) below.

For paragraphs (a) and (b) of subsection (3) there shall be substituted the following paragraphs—.

In paragraph (c) of that subsection, for the words from “the relevant time” to the end of that paragraph there shall be substituted “ the relevant time is the date on which the penalty or surcharge was paid ”.

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

In subsection (2) of section 283 of the Taxation of Chargeable Gains Act 1992 (repayment supplements), for the words from “the relevant time” to the end of that subsection there shall be substituted “ the relevant time is the date on which the tax was paid ”.

This section has effect as respects the year 1997-98 and subsequent years of assessment and shall be deemed to have had effect as respects the year 1996-97.

For the Table in Schedule 1 to the Inheritance Tax Act 1984 there shall be substituted—

Subsection (1) above shall apply to any chargeable transfer made on or after 6th April 1997; and section 8 of that Act (indexation of rate bands) shall not have effect as respects any difference between the retail prices index for the month of September 1995 and that for the month of September 1996.

Stamp duty shall not be chargeable on an instrument transferring any property which is subject to the trusts of an authorised unit trust (“the target trust”) to the trustees of another authorised unit trust (“the acquiring trust”) if the conditions set out in subsection (2) below are fulfilled.

Those conditions are that—

An instrument on which stamp duty is not chargeable by virtue only of this section shall not be taken to be duly stamped unless it is stamped with the duty to which it would be liable but for this section or it has, in accordance with section 12 of the Stamp Act 1891, been stamped with a particular stamp denoting that it is not chargeable with any duty.

In this section—“authorised unit trust” means a unit trust scheme in the case of which an order under section 243 of the Financial Services and Markets Act 2000 is in force;“the whole of the available property of the target trust” means the whole of the property subject to the trusts of the target trust, other than any property which is retained for the purpose of discharging liabilities of the trustees of the target trust;“unit” and “unit trust scheme” have the same meanings as in Part VII of the Finance Act 1946.

Each of the parts of an umbrella scheme (and not the scheme as a whole) shall be regarded for the purposes of this section as an authorised unit trust; and in this section “umbrella scheme” has the same meaning as in section 468 of the Taxes Act 1988 and references to parts of an umbrella scheme shall be construed in accordance with that section.

This section applies to any instrument which is executed—

This section applies where there is a relevant transfer, under a scheme, of the whole or any part of the business carried on by a mutual insurance company (“the mutual”) to a company which has share capital (“the acquiring company”).

Stamp duty shall not be chargeable on an instrument executed for the purposes of or in connection with the transfer if the requirements of subsections (3) and (4) below are satisfied in relation to the shares of a company (“the issuing company”) which is either—

Shares in the issuing company must be offered, under the scheme, to at least 90 per cent. of the persons who immediately before the transfer are members of the mutual.

Under the scheme, all the shares in the issuing company which will be in issue immediately after the transfer has been made, other than shares which are to be or have been issued pursuant to an offer to the public, must be offered to the persons who (at the time of the offer) are—

An instrument on which stamp duty is not chargeable by virtue only of subsection (2) above shall not be taken to be duly stamped unless it is stamped with the duty to which it would be liable but for that subsection or it has, in accordance with section 12 of the Stamp Act 1891, been stamped with a particular stamp denoting that it is not chargeable with any duty.

For the purposes of this section, a company is a wholly-owned subsidiary of another person (“the parent”) if it has no members except the parent and the parent’s wholly-owned subsidiaries or persons acting on behalf of the parent or its wholly-owned subsidiaries.

In this section “relevant transfer” means—

In this section—

The Treasury may by regulations amend subsection (3) above by substituting a lower percentage for the percentage there mentioned.

The Treasury may by regulations provide that any or all of the references in subsections (3) and (4) above to members shall be construed as references to members of a class specified in the regulations; and different provision may be made for different cases.

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.

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

Before section 81 of the Finance Act 1986 there shall be inserted the following sections—

Section 81 of that Act (sales to market makers) shall be omitted.

In section 88(1B)(b)(i) of that Act (which prevents repayment or cancellation of stamp duty reserve tax on certain agreements to transfer chargeable securities which were acquired by means of a transfer on which stamp duty was not chargeable by virtue of section 81) for “81” there shall be substituted “ 80A ”.

Subsections (1) and (2) above apply to instruments executed on or after the commencement day.

Subsection (3) above applies in relation to an agreement to transfer chargeable securities if the securities were acquired in a transaction which was given effect to by an instrument of transfer executed on or after the commencement day.

For the purposes of this section the commencement day is such day as the Treasury may by order made by statutory instrument appoint.

After section 80B of the Finance Act 1986 there shall be inserted the following section—

Section 82 of that Act (borrowing of stock by market makers) shall be omitted.

This section applies to instruments executed on or after the commencement day.

For the purposes of this section the commencement day is such day as the Treasury may by order made by statutory instrument appoint.

Subsection (4) of section 67 of the Finance Act 1986 (depositary receipts: reduced rate of stamp duty for qualified dealers other than market makers) shall be omitted.

Accordingly—

Subsection (4) of section 70 of that Act (clearance services: reduced rate of stamp duty for qualified dealers other than market makers) shall be omitted.

Accordingly—

This section applies to any instrument executed on or after the day which is the commencement day for the purposes of section 97 above, except an instrument which transfers relevant securities which were acquired by the transferor before that date.

Section 87 of the Finance Act 1986 shall not apply as regards an agreement to transfer securities which constitute property which is subject to the trusts of an authorised unit trust (“the target trust”) to the trustees of another authorised unit trust (“the acquiring trust”) if the conditions set out in subsection (2) below are fulfilled.

Those conditions are that—

Where—section 87 of the Finance Act 1986 shall not apply as regards an agreement, or a deemed agreement, to transfer a unit to the managers of the target trust which is made in order that the unit may be extinguished under the arrangement mentioned in section 95(2)(a) or, as the case may be, subsection (2)(a) above.

In this section—“authorised unit trust” means a unit trust scheme in the case of which an order under section 243 of the Financial Services and Markets Act 2000 is in force;“the whole of the available property of the target trust” means the whole of the property subject to the trusts of the target trust, other than any property which is retained for the purpose of discharging liabilities of the trustees of the target trust;“unit” and “unit trust scheme” have the same meanings as in Part VII of the Finance Act 1946.

Each of the parts of an umbrella scheme (and not the scheme as a whole) shall be regarded for the purposes of this section as an authorised unit trust; and in this section “umbrella scheme” has the same meaning as in section 468 of the Taxes Act 1988 and references to parts of an umbrella scheme shall be construed in accordance with that section.

This section applies—

Where an agreement to transfer securities constituting property subject to the trusts of an authorised unit trust (“the absorbed trust”) is made by means of a direction by the holders of units in the absorbed trust (“the sellers”) to the trustees of another trust (“the continuing trust”) to hold the whole of the available property of the absorbed trust on the trusts of the continuing trust, section 87 of the Finance Act 1986 shall not apply as regards the agreement if the conditions set out in subsection (2) below are fulfilled.

Those conditions are that—

Where section 87 of the Finance Act 1986 does not apply as regards an agreement by virtue of subsection (1) above, that section shall not apply as regards an agreement, or a deemed agreement, to transfer a unit to the managers of the absorbed trust which is made in order that the unit may be extinguished under the arrangement mentioned in subsection (2)(b) above.

In this section—“authorised unit trust” and “unit” have the same meanings as in section 100 above (and section 100(5) applies for the purposes of this section as it applies for the purposes of section 100);“the whole of the available property of the absorbed trust” means the whole of the property subject to the trusts of the absorbed trust, other than any property which is retained for the purpose of discharging liabilities of the trustees of the absorbed trust.

This section applies—

After section 88 of the Finance Act 1986 there shall be inserted the following sections—

Section 89 of that Act (exceptions for market makers etc.) shall be omitted.

In section 88(1B)(b)(ii) of that Act (which prevents repayment or cancellation of stamp duty reserve tax on certain agreements to transfer property consisting of chargeable securities which were acquired in pursuance of an agreement on which tax was not chargeable by virtue of section 89) for “89” there shall be substituted “ 88A ”.

Subsections (1) and (2) above apply to an agreement to transfer securities—

Subsection (3) above applies in relation to property consisting of chargeable securities if the securities were acquired in pursuance of an agreement to which subsections (1) and (2) above apply (by virtue of subsection (4) above).

For the purposes of this section the commencement day is such day as the Treasury may by order made by statutory instrument appoint.

After section 89A of the Finance Act 1986 there shall be inserted the following section—

Section 89B of that Act (exceptions for stock lending and collateral security arrangements) shall be omitted.

In consequence of subsections (1) and (2) above, for section 88(1B)(b)(iia) of that Act (which is inserted by section 106(5)(c) below and which prevents repayment or cancellation of stamp duty reserve tax on certain agreements to transfer property consisting of chargeable securities which were acquired in pursuance of an agreement on which tax was not chargeable by virtue of section 89B(1)(a)) there shall be substituted—.

After section 88(1B) of that Act there shall be inserted the following subsections—

Subsections (1) and (2) above apply to an agreement to transfer securities—

Subsection (3) above applies in relation to property consisting of chargeable securities if the securities were acquired in pursuance of an agreement to which subsections (1) and (2) above apply (by virtue of subsection (5) above).

Subsection (4) above applies to instruments executed on or after the commencement day.

For the purposes of this section the commencement day is such day as the Treasury may by order made by statutory instrument appoint.

Subsection (5) of section 93 of the Finance Act 1986 (depositary receipts: reduced rate of tax for qualified dealers other than market makers) shall be omitted.

Accordingly—

Subsection (3) of section 96 of the Finance Act 1986 (clearance services: reduced rate of tax for qualified dealers other than market makers) shall be omitted.

Accordingly—

This section applies where securities are transferred on or after the day which is the commencement day for the purposes of section 102 above, unless the securities were acquired by the transferor before that day.

Paragraph (b) of section 90(3) of the Finance Act 1986 (which provides that section 87 shall not apply as regards an agreement to transfer securities constituted by or transferable by means of an inland bearer instrument which does not fall within exemption 3 in the heading “Bearer Instrument” in Schedule 1 to the Stamp Act 1891) shall cease to have effect.

After section 90(3) of that Act there shall be inserted—

At the end of that section there shall be added—

This section applies to an agreement if the inland bearer instrument in question was issued on or after 26th November 1996 and—

Section 87 of the Finance Act 1986 (the principal charge) shall be amended in accordance with subsections (2) and (3) below.

For subsection (7A) (deemed separate agreements where there would be no charge to tax etc had there been such agreements) there shall be substituted—

Subsection (7B) (which, in consequence of the repeals made by section 188(1) of the Finance Act 1996, is of no further utility in relation to the charge to tax but whose effect is reproduced by subsection (8) below for the purposes of repayment or cancellation of tax) shall cease to have effect.

Section 88 of the Finance Act 1986 (special cases) shall be amended in accordance with subsections (5) to (7) below.

In subsection (1B) (certain instruments on which stamp duty is not chargeable to be disregarded in construing the conditions in section 92(1A) and (1B) for repayment or cancellation of tax)—

For subsections (4) and (5) (identification of the securities in question and reduction of the charge in certain cases) there shall be substituted—

For the sidenote, there shall be substituted “ Special cases. ”

In section 92 of the Finance Act 1986 (repayment or cancellation of tax), after subsection (6) there shall be inserted—

The amendments made by subsections (2), (3) and (8) above have effect in relation to an agreement to transfer securities if—

The amendments made by subsections (5) and (6) above have effect where the instrument on which stamp duty is not chargeable by virtue of section 42 of the Finance Act 1930 or section 11 of the Finance Act (Northern Ireland) 1954 is executed on or after 4th January 1997 in pursuance of an agreement to transfer securities made on or after that date.

Section 113 of the Finance Act 1984 (restrictions on relief by reference to a qualifying date) shall be amended as follows.

In subsection (4) (meaning of “qualifying date”), after “means” there shall be inserted “ (subject to subsection (6) below) ”.

In subsection (6) (old participator’s qualifying date to be taken into account, in the case of a transfer, in determining as respects certain expenditure the date that is to be regarded as the new participator’s qualifying date), for the words from “is an applicable date” onwards there shall be substituted “ , rather than the date given by subsection (4) above, shall be taken to be the qualifying date in relation to the new participator. ”

This section has effect in relation to any expenditure in respect of which a claim is made on or after 23rd July 1996.

For section 2 of the National Debt (Stockholders Relief) Act 1892 (date for striking balance for a dividend on government stock) there shall be substituted the following section—

This section has effect in relation to dividends other than those for which the balance is struck on or before the day on which this Act is passed.

The enactments mentioned in Schedule 18 to this Act (which include spent provisions) are hereby repealed to the extent specified in the third column of that Schedule.

The repeals specified in that Schedule have effect subject to the commencement provisions and savings contained or referred to in the notes set out in that Schedule.

In this Part of this Schedule—“casino premises licence” has the same meaning as in Part 8 of the Gambling Act 2005 (see section 150(1)(a));“club gaming permit” has the same meaning as in that Act (see section 271);“the register” means the gaming duty register;“registered person” means a person registered on the register; and“registrable person” has the meaning given by paragraph 3 below.

For the purposes of this Part of this Schedule premises in the United Kingdom are “unlicensed premises” unless they are premises in Great Britain—

References in this Part of this Schedule to being a member of a group and to being the representative member of a group shall be construed in accordance with paragraph 8 below.

The Commissioners shall, on receipt of a valid application made by—add that person to the register.

The following provisions of this paragraph have effect for the interpretation of sub-paragraph (1) above.

A valid application is one which is made in such form and manner, and is accompanied by such information, as the Commissioners may require.

Subject to sub-paragraph (5) below—

A body corporate cannot be a registrable person if it—

A body corporate which—is a registrable person if another body corporate which is a member of that group would be a registrable person but for sub-paragraph (5) above.

This paragraph has effect for determining when a registered person is to be removed by the Commissioners from the register.

Where the Commissioners receive a valid notice from a registered person stating that he has ceased to be a registrable person, he shall be removed from the register.

Where the Commissioners receive a valid notice from a registered person stating that he will, from a time specified in the notice, cease to be a registrable person, he shall be removed from the register with effect from that time.

Where—

Where it appears to the Commissioners that a registered person has ceased to be a registrable person, he shall be removed from the register.

A registered person shall be removed from the register if—

For the purposes of this paragraph, a valid notice is one which is given in such form and manner, and accompanied by such information, as the Commissioners may require.

There is a contravention of this sub-paragraph by every person who is a responsible person in relation to any premises if—

For the purposes of this paragraph, a person is a responsible person in relation to any premises if—

Where a person contravenes sub-paragraph (1) above, that contravention shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties) and shall also attract daily penalties.

References in this paragraph to premises being notifiable are references to them being notifiable for the purposes of paragraph 6 below.

This paragraph has effect for determining the premises to be specified in a registered person’s entry on the register.

A person who makes an application under paragraph 3(1) above shall, on making that application, notify the Commissioners of all the premises which—and the Commissioners shall, on registering him on the register, cause those premises to be specified in his entry on the register.

Where any premises not currently notified by a registered person become notifiable by him—

Subject to sub-paragraph (5) below, where any premises currently notified by a registered person cease to be notifiable by him—

A registered person is not required to notify the Commissioners as mentioned in sub-paragraph (4) above in a case where—

Where—the Commissioners shall ensure that those premises cease, with effect from that date, to be specified in his entry on the register.

Subject to sub-paragraph (8) below, where—he shall notify the Commissioners accordingly and they shall cause those premises to be no longer specified in his entry on the register.

A registered person is not required to notify the Commissioners as mentioned in sub-paragraph (7) above in a case where he gives notice to the Commissioners under paragraph 4(4) above.

For the purposes of this paragraph premises are currently notified by any person at any time if at that time they are specified in his entry on the register.

For the purposes of this paragraph, in the case of a person who is not a body corporate, or who is a body corporate that is not a member of any group—

For the purposes of this paragraph, in the case of a body corporate which is the representative member of a group—

Where, in contravention of paragraph 6(2) above, a person fails to notify the Commissioners of any premises, that failure shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties).

Where—that failure shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties) and shall also attract daily penalties for every day after the end of that period on which the failure to notify continues.

Two or more bodies corporate are eligible to be treated as members of a group for the purposes of this Part of this Schedule if each is resident or has an established place of business in the United Kingdom and—

Subject to sub-paragraph (3) below, where an application for the purpose is made to the Commissioners with respect to two or more bodies corporate eligible to be treated as members of a group, then, from such date as may be specified in the application—

The Commissioners may refuse an application under sub-paragraph (2) above if, and only if, it appears to them necessary to do so for the protection of the revenue from gaming duty.

Where any bodies corporate are treated as members of a group for the purposes of this Part of this Schedule and an application for the purpose is made to the Commissioners, then, from such time as may be specified in the application—

If it appears to the Commissioners necessary to do so for the protection of the revenue from gaming duty, they may—

Where—they shall, by notice given to that person, terminate that treatment from such date as may be specified in the notice.

Where—the Commissioners shall, by notice given to such one of the bodies corporate mentioned in paragraph (b) above as they think fit, substitute that body corporate as the representative member as from that time.

Where a notice under sub-paragraph (6) above is given to one member of a group of which there is only one other member, then (subject to any further application under this paragraph) the other member shall also cease, from the time specified in the notice, to be treated for the purposes of this Part of this Schedule as a member of the group.

An application under this paragraph with respect to any bodies corporate—

For the purposes of this paragraph a body corporate shall be taken to control another body corporate if—and an individual or individuals shall be taken to control a body corporate if (were he or they a company) he or they would be that body’s holding company within the meaning of that Act.

Sections 13A to 16 of the Finance Act 1994 (review and appeals) shall have effect in relation to any refusal by the Commissioners of an application under sub-paragraph (2) or (4) above as if that refusal were a decision of a description falling within section 13(A)(2)(j) of that Act.

Where the Commissioners and every relevant person so agree, the gaming duty provisions of this Act shall have effect in relation to any premises as if accounting periods for the purposes of those provisions were the periods specified in the agreement, which may be—

If the Commissioners have reason to believe that the liability in relation to any premises may not be discharged as it falls due from time to time, the Commissioners may direct that periods shorter than six months are to be treated as accounting periods for the purposes of the gaming duty provisions of this Act.

The Commissioners may direct in relation to any premises that periods beginning on dates other than 1st April and 1st October are to be treated as accounting periods for the purposes of the gaming duty provisions of this Act.

The Commissioners may by direction or by agreement with every relevant person make transitional arrangements in relation to any premises for periods (whether of six months or otherwise) to be treated as accounting periods for the purposes of the gaming duty provisions of this Act where—

The Commissioners must not enter into an agreement under sub-paragraph (1) or give a direction under sub-paragraph (1B) unless they are satisfied that any transitional arrangements which are appropriate for the protection of the revenue have been agreed or directed.

Any direction under this paragraph continues to have effect until it is withdrawn by the Commissioners (unless otherwise specified in the direction).

Withdrawal of a direction under this paragraph in relation to any premises does not prevent the giving of further directions in relation to those premises.

For the purposes of this paragraph, a person is a relevant person in relation to any premises if—

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The decisions mentioned in sub-paragraph (6) are to be treated as if they were listed in subsection (2) of section 13A of FA 1994 (customs and excise reviews and appeals: meaning of “relevant decision”) and accordingly are to be treated—

The decisions are—

The Commissioners may give directions as to the making of returns in connection with gaming duty by—

Directions under this paragraph may, in particular, make provision as to—

Where a person fails to comply with any provision of a direction given under this paragraph, that failure shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties) and shall also attract daily penalties.

The Commissioners may make regulations providing for any matter for which provision appears to them to be necessary or expedient for the administration or enforcement of gaming duty, or for the protection of the revenue from that duty.

Regulations under this paragraph may, in particular, include provision as to the giving and operation of directions under section 11(6) of this Act or paragraph 9 of this Schedule.

Where any person contravenes or fails to comply with any of the provisions of any regulations under this paragraph, his contravention or failure to comply shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties).

Any person who obstructs any officer in the exercise of his functions in relation to gaming duty shall be guilty of an offence and liable, on summary conviction, to a penalty of level 5 on the standard scale.

Any person who—shall be guilty of an offence.

A person guilty of an offence under sub-paragraph (2) above shall be liable—

Section 27 of the Betting and Gaming Duties Act 1981 (offences by bodies corporate) shall have effect for the purposes of any offence under this paragraph as it has effect for the purposes of the offence mentioned in that section.

Where a person has committed an offence under sub-paragraph (2) above, all designated items related to the relevant gaming shall be liable to forfeiture if—

In sub-paragraph (5) above, “the relevant gaming” means—

For the purposes of sub-paragraph (5) above, the designated items related to any gaming are—

For the purposes of sub-paragraph (7)(b) above the cash and gaming chips taken to be under the control of a person who is the provider of any premises or is concerned with the organisation or management of gaming on any premises shall include all cash and gaming chips in play or left on a gaming table on those premises.

Sections 28 and 29 of the Betting and Gaming Duties Act 1981 (recovery of duty) shall have effect as follows so as to apply in relation to gaming duty as they applied in relation to the duty on gaming licences—

Sub-paragraph (1) above shall cease to have effect on such day as the Commissioners may by order made by statutory instrument appoint, and different days may be appointed under this sub-paragraph for different purposes.

No obligation as to secrecy or other restriction on the disclosure of information imposed by statute or otherwise shall prevent—information for the purpose of assisting the Commissioners in the carrying out of their functions with respect to gaming duty or, as the case may be, that Commission in the carrying out of that Commission's functions under the Gambling Act 2005 .

Information obtained by virtue of a disclosure authorised by this paragraph shall not be disclosed except—

This paragraph amends section 1(1) (interpretation).

In the definition of “the revenue trade provisions of the customs and excise Acts”, after paragraph (d) there shall be inserted the following paragraph—.

In paragraph (a) of the definition of “revenue trader”, after sub-paragraph (ia) there shall be inserted the following sub-paragraphs—.

In sub-paragraph (ii) of that paragraph, for “or (ia)” there shall be substituted “ , (ia), (ib) or (ic) ”.

This paragraph amends section 118C (powers of entry and search).

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

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Schedule 2 to the Gaming Act 1968 (grant etc. of licences) shall be amended in accordance with the provisions of this paragraph.

In paragraph 20(1) (grounds for refusing to grant or renew a licence), after paragraph (f) there shall be inserted the following paragraph—

In paragraph 48(1) (cancellation of licence on conviction for second or subsequent offence), after “the enactments consolidated by that Act)” there shall be inserted “ or of an offence under paragraph 12 of Schedule 1 to the Finance Act 1997 ”.

In paragraph 60(c) (transfer of licence may be refused if duty unpaid), after “bingo duty” there shall be inserted “ or gaming duty ”.

In section 33 of the 1994 Act (not exhibiting licence), after subsection (1) there shall be inserted the following subsection—

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

For subsection (3) of that section there shall be substituted the following subsection—

In subsection (4) of that section, for “in respect of which excise duty is chargeable” there shall be substituted “ which is kept or used on a public road ”.

After that subsection there shall be inserted the following subsection—

In section 46 of the 1994 Act (duty to give information)—

In subsection (1) of section 51 of that Act (admissions), for “or 34” there shall be substituted “ , 34 or 43A ”.

In subsection (1) of section 62 of that Act (other definitions), after the definition of “motor trader” there shall be inserted the following definition—.

In paragraph 20 of Schedule 2 to that Act (exempt vehicles), sub-paragraph (4) shall cease to have effect.

In Schedule 3 to the Road Traffic Offenders Act 1988 (fixed penalty offences), in column 2 of the entry relating to section 33 of the 1994 Act, for “licence” there shall be substituted “ vehicle licence, trade licence or nil licence ”.

In Article 198 of the Road Traffic (Northern Ireland) Order 1981 (offences punishable without prosecution), in paragraph (1)(f) for “licence” there shall be substituted “ vehicle licence, trade licence or nil licence ”.

This Part of this Schedule has effect for the purposes of the following provisions (which make it a defence to a claim for repayment that the repayment would unjustly enrich the claimant), namely—

Those provisions are referred to in this Part of this Schedule as unjust enrichment provisions.

In this Part of this Schedule—“the Commissioners” means the Commissioners of Customs and Excise;“relevant repayment provision” means—section 137A of the Customs and Excise Management Act 1979 (recovery of overpaid excise duty); paragraph 8 of Schedule 7 to the Finance Act 1994 (recovery of overpaid insurance premium tax); or paragraph 14 of Schedule 5 to the Finance Act 1996 (recovery of overpaid landfill tax);“relevant tax” means any duty of excise, insurance premium tax or landfill tax; and“subordinate legislation” has the same meaning as in the Interpretation Act 1978.

This paragraph applies where—

Where, in a case to which this paragraph applies, loss or damage has been or may be incurred by the taxpayer as a result of mistaken assumptions made in his case about the operation of any provisions relating to a relevant tax, that loss or damage shall be disregarded, except to the extent of the quantified amount, in the making of any determination—

In sub-paragraph (2) above “the quantified amount” means the amount (if any) which is shown by the taxpayer to constitute the amount that would appropriately compensate him for loss or damage shown by him to have resulted, for any business carried on by him, from the making of the mistaken assumptions.

The reference in sub-paragraph (2) above to provisions relating to a relevant tax is a reference to any provisions of—

This paragraph has effect for the purposes of making any repayment on or after the day on which this Act is passed, even if the claim for that repayment was made before that day.

The Commissioners may by regulations make provision for reimbursement arrangements made by any person to be disregarded for the purposes of any or all of the unjust enrichment provisions except where the arrangements—

In this paragraph “reimbursement arrangements” means any arrangements for the purposes of a claim under a relevant repayment provision which—

Without prejudice to the generality of sub-paragraph (1) above, the provision that may be required by regulations under this paragraph to be contained in reimbursement arrangements includes—

Regulations under this paragraph may impose obligations on such persons as may be specified in the regulations—

Regulations under this paragraph may make provision for the form and manner in which, and the times at which, undertakings are to be given to the Commissioners in accordance with the regulations; and any such provision may allow for those matters to be determined by the Commissioners in accordance with the regulations.

Regulations under this paragraph may—

Regulations under this paragraph may have effect (irrespective of when the claim for repayment was made) for the purposes of the making of any repayment by the Commissioners after the time when the regulations are made; and, accordingly, such regulations may apply to arrangements made before that time.

Regulations under this paragraph shall be made by statutory instrument subject to annulment in pursuance of a resolution of the House of Commons.

Where any obligation is imposed by regulations made by virtue of paragraph 3(4) above, a contravention or failure to comply with that obligation shall, to the extent that it relates to amounts repaid under section 137A of the Customs and Excise Management Act 1979, attract a penalty under section 9 of the Finance Act 1994 (penalties in connection with excise duties).

For the purposes of Schedule 7 to the Finance Act 1994 (insurance premium tax), a contravention or failure to comply with an obligation imposed by regulations made by virtue of paragraph 3(4) above shall be deemed, to the extent that it relates to amounts repaid under paragraph 8 of that Schedule (recovery of overpaid insurance premium tax), to be a failure to comply with a requirement falling within paragraph 17(1)(c) of that Schedule (breach of regulations).

Paragraph 23 of Schedule 5 to the Finance Act 1996 (power to provide for penalty) shall have effect as if an obligation imposed by regulations made by virtue of paragraph 3(4) above were, to the extent that it relates to amounts repaid under paragraph 14 of that Schedule (recovery of overpaid landfill tax), a requirement imposed by regulations under Part III of that Act; and the provisions of that Schedule in relation to penalties under Part V of that Schedule shall have effect accordingly.

For subsection (4) of section 137A of the Customs and Excise Management Act 1979 (time limit on recovery of overpaid excise duty) there shall be substituted the following subsection—

For sub-paragraphs (4) and (5) of paragraph 8 of Schedule 7 to the Finance Act 1994 (time limit on recovery of overpaid insurance premium tax) there shall be substituted the following sub-paragraph—

For sub-paragraph (4) of paragraph 14 of Schedule 5 to the Finance Act 1996 (time limit on recovery of overpaid landfill tax) there shall be substituted the following sub-paragraph—

In each of the enactments specified in sub-paragraph (2) below (which provide for the time limits applying to the making of assessments), for the words “six years”, wherever they occur, there shall be substituted the words “ three years ”.

Those enactments are—

Paragraph 9 of Schedule 6 to the Finance Act 1994 (interest payable by the Commissioners in connection with air passenger duty) shall have effect, and be deemed always to have had effect, with the amendments for which this paragraph provides.

After sub-paragraph (1) there shall be inserted the following sub-paragraph—

For sub-paragraph (6) (claims for interest to be made within six years of discovery of error) there shall be substituted the following sub-paragraph—

For sub-paragraph (7) there shall be substituted the following sub-paragraph—

In sub-paragraph (2) of that paragraph (applicable period), the words after paragraph (b) shall be omitted; and the following sub-paragraphs shall be substituted for sub-paragraphs (3) and (4)—

Sub-paragraph (1) above shall have effect for the purposes of determining whether any period beginning on or after the day on which this Act is passed is left out of account.

Paragraph 22 of Schedule 7 to the Finance Act 1994 (interest payable by the Commissioners in connection with insurance premium tax) shall have effect, and be deemed always to have had effect, with the amendments for which this paragraph provides.

After sub-paragraph (1) there shall be inserted the following sub-paragraph—

For sub-paragraph (9) of that paragraph (claims for interest to be made within six years of discovery of error) there shall be substituted the following sub-paragraph—

For sub-paragraph (10) there shall be substituted the following sub-paragraph—

For sub-paragraphs (5) to (7) of that paragraph (periods left out of account in computing periods for which the Commissioners are liable to interest) there shall be substituted the following sub-paragraphs—

Sub-paragraph (1) above shall have effect for the purposes of determining whether any period beginning on or after the day on which this Act is passed is left out of account.

Paragraph 29 of Schedule 5 to the Finance Act 1996 (interest payable by the Commissioners in connection with landfill tax) shall have effect, and be deemed always to have had effect, with the amendments for which this paragraph provides.

After sub-paragraph (1) there shall be inserted the following sub-paragraph—

For sub-paragraph (8) (claims for interest to be made within six years of discovery of error) there shall be substituted the following sub-paragraph—

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

For sub-paragraphs (4) to (6) of that paragraph (periods left out of account in computing periods for which the Commissioners are liable to interest) there shall be substituted the following sub-paragraphs—

Sub-paragraph (1) above shall have effect for the purposes of determining whether any period beginning on or after the day on which this Act is passed is left out of account.

In paragraph 42 of Schedule 5 to the Finance Act 1996 (set-off of amounts), after sub-paragraph (4) there shall be inserted the following sub-paragraph—

In paragraph 43 of that Schedule (set-off of amounts), after sub-paragraph (4) there shall be inserted the following sub-paragraph—

Where—the Commissioners may, to the best of their judgement, assess the excess paid to that person and notify it to him.

Where any person is liable to pay any amount to the Commissioners in pursuance of an obligation imposed by virtue of paragraph 3(4)(a) above, the Commissioners may, to the best of their judgement, assess the amount due from that person and notify it to him.

In this paragraph “relevant repayment provision” means—

Where—the Commissioners may, to the best of their judgement, assess the amount so paid to which that person was not entitled and notify it to him.

In this paragraph “relevant interest provision” means—

An assessment under paragraph 14 or 15 above shall not be made more than two years after the time when evidence of facts sufficient in the opinion of the Commissioners to justify the making of the assessment comes to the knowledge of the Commissioners.

Where an amount has been assessed and notified to any person under paragraph 14 or 15 above, it shall be recoverable (subject to any provision having effect in accordance with paragraph 19 below) as if it were relevant tax due from him.

Sub-paragraph (2) above does not have effect if, or to the extent that, the assessment in question has been withdrawn or reduced.

Where an assessment is made under paragraph 14 or 15 above, the whole of the amount assessed shall carry interest at the rate applicable under section 197 of the Finance Act 1996 from the date on which the assessment is notified until payment.

Where any person is liable to interest under sub-paragraph (1) above the Commissioners may assess the amount due by way of interest and notify it to him.

Without prejudice to the power to make assessments under this paragraph for later periods, the interest to which an assessment under this paragraph may relate shall be confined to interest for a period of no more than two years ending with the time when the assessment under this paragraph is made.

Interest under this paragraph shall be paid without any deduction of income tax.

A notice of assessment under this paragraph shall specify a date, being not later than the date of the notice, to which the amount of interest is calculated; and, if the interest continues to accrue after that date, a further assessment or assessments may be made under this paragraph in respect of amounts which so accrue.

If, within such period as may be notified by the Commissioners to the person liable for interest under sub-paragraph (1) above, the amount referred to in that sub-paragraph is paid, it shall be treated for the purposes of that sub-paragraph as paid on the date specified as mentioned in sub-paragraph (5) above.

Where an amount has been assessed and notified to any person under this paragraph it shall be recoverable as if it were relevant tax due from him.

Sub-paragraph (7) above does not have effect if, or to the extent that, the assessment in question has been withdrawn or reduced.

Sections 13A to 16 of the Finance Act 1994 (review and appeals) shall have effect in relation to any decision which—as if that decision were such a decision as is mentioned in section 13A(2)(b) of that Act of 1994.

Sections 59 to 60 of that Act of 1994 (review and appeal in the case of insurance premium tax) shall have effect in relation to any decision which—as if that decision were a decision to which section 59 of that Act applies.

Sections 54 to 56 of the Finance Act 1996 (review and appeal in the case of landfill tax) shall have effect in relation to any decision which—as if that decision were a decision to which section 54 of that Act applies.

In this Part of this Schedule “the Commissioners” means the Commissioners of Customs and Excise.

In this Part of this Schedule “relevant tax”, in relation to any assessment, means—

For the purposes of this Part of this Schedule notification to a personal representative, trustee in bankruptcy, trustee or interim trustee in a sequestration, receiver, liquidator or person otherwise acting in a representative capacity in relation to another shall be treated as notification to the person in relation to whom he so acts.

After section 12 of the Finance Act 1994 there shall be inserted the following sections—

After section 14(1)(b) of that Act there shall be inserted the following paragraph—.

In sections 12(8) and 13(7) of that Act (definition of “representative” for the purposes of sections 12 and 13), for “or trustee in bankruptcy,” there shall be substituted “ , trustee in bankruptcy or interim or permanent trustee, ”.

After subsection (7) of section 61 of the Customs and Excise Management Act 1979 (duty payable where deficiency or excess deficiency discovered in goods on return of ship or aircraft to United Kingdom) there shall be inserted the following subsection—

In subsection (8) of that section (duty payable under subsection (7) recoverable as a civil debt) after “duty” there shall be inserted “ , other than excise duty, ”.

After that subsection there shall be inserted the following subsection—

In section 1(1) of that Act (interpretation), after the definition of “registered excise dealers and shippers regulations” there shall be inserted—.

Section 94 of the Customs and Excise Management Act 1979 shall be amended in accordance with sub-paragraphs (2) to (6) below.

In subsection (3) (power to require payment of duty or repayment of drawback or allowance where warehoused goods are deficient), for the words from “require” to the end there shall be substituted the following paragraphs—

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

In subsection (4) for “(3)” there shall be substituted “ (3)(a) ”.

After subsection (4) there shall be inserted the following subsections—

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

In section 95 of that Act (application of section 94 to certain goods in the course of removal from warehouse), in subsection (2)(b) (section 94 to apply with the omission of references in subsections (3) and (4) to the occupier of the warehouse) for “and (4)” there shall be substituted “ , (4) and (4A) ”.

Section 96 of the Customs and Excise Management Act 1979 shall be amended in accordance with sub-paragraphs (2) to (6) below.

In subsection (2) (power to require payment of unpaid or repaid duty, or repayment of drawback, where goods moved by pipe-line are deficient) for the words from “require” to the end there shall be substituted the following paragraphs—

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

In subsection (3) for “(2)” there shall be substituted “ (2)(a) ”.

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

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

In section 10(3) of the Hydrocarbon Oil Duties Act 1979 (power to recover excise duty where restrictions on use of duty-free oil infringed), for the words from “recover” to the end there shall be substituted “ assess an amount equal to the excise duty on like oil at the rate in force at the time of the contravention as being excise duty due from him, and notify him or his representative accordingly. ”

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

In section 14(4) of that Act (power to recover rebate where light oil delivered for use as furnace fuel is misused), for the words from “recover” to the end there shall be substituted “ assess the amount of rebate allowed on the oil as being excise duty due from him, and notify him or his representative accordingly. ”

After subsection (1A) of section 23 of that Act (prohibition on use of road fuel gas on which duty has not been paid) there shall be inserted the following subsection—

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

After subsection (4) of section 24 of that Act (control of use of duty-free and rebated oil) there shall be inserted the following subsections—

In the Table set out in section 27(3) of that Act (interpretation), under the heading “Management Act” there shall be inserted at the appropriate place “ “representative” ”.

Subject to paragraphs 4 to 7 below, this Schedule applies to any qualifying distribution which—

A qualifying distribution of a company falls within this sub-paragraph if it is a payment made by that company—

A qualifying distribution of a company falls within this sub-paragraph if—

For the purposes of this Schedule the specified matters, in relation to a qualifying distribution, are—

In this Schedule—“arrangements” means arrangements of any kind, whether in writing or not;“qualifying distribution” has the same meaning as in the Taxes Act 1988;“shares” has the same meaning as in sections 219 to 228 of that Act (purchase of own shares);“transaction in securities” has the same meaning as in Chapter I of Part XVII of that Act (cancellation of tax advantages from certain transactions in securities).

The Tax Acts shall have effect, and be deemed in relation to any time on or after 8th October 1996 to have had effect, as if a qualifying distribution to which this Schedule applies were a foreign income dividend within the meaning of Chapter VA of Part VI of the Taxes Act 1988 and, accordingly, as if the making of the distribution were the payment of a foreign income dividend.

In section 246A of the Taxes Act 1988 (elections for dividends to be treated as foreign income dividends), after subsection (2) there shall be inserted the following subsection—

Sub-paragraph (1) above has effect subject to—

Sub-paragraph (2) above has effect in relation to the making of elections on or after 8th October 1996.

This paragraph applies where—

The relevant part of that distribution (and, accordingly, the corresponding part of the foreign income dividend that paragraph 2(1) above deems the distribution to be) shall be treated for the purposes of the Tax Acts as if it were income to which section 686 of the Taxes Act 1988 (application of rate applicable to trusts to income of certain discretionary trusts) applies.

In sub-paragraph (2) above the reference to the relevant part of the distribution is a reference to so much (if any) of that distribution as—

Subsection (6) of section 686 of the Taxes Act 1988 (meaning of “trustees” etc.) shall apply for the purposes of this paragraph as it applies for the purposes of that section.

This paragraph has effect for the year 1997-98 and subsequent years of assessment and shall be deemed to have had effect for the year 1996-97 in relation to distributions made on or after 5th December 1996.

A qualifying distribution does not fall within paragraph 1(3) above by reason only that it is made in consequence of the exercise of such an option as is mentioned in section 249(1)(a) of the Taxes Act 1988 (option to receive either a cash dividend or additional share capital).

Section 251(1)(c) of the Taxes Act 1988 (interpretation of references to the exercise of an option to receive either a cash dividend or additional share capital) shall apply for the purposes of this paragraph as it applies for the purposes of sections 249 and 250 of that Act.

A qualifying distribution consisting in a dividend on a fixed-rate preference share does not fall within paragraph 1(3) above by reason only that any of the specified matters is made referable to the terms on which the share was issued.

In this paragraph “fixed-rate preference share” means—

For the purposes of sub-paragraph (2) above, any reference in paragraph 13(6) of Schedule 28B to shares shall be taken as a reference to shares within the meaning of this Schedule.

A qualifying distribution which is an excepted pre-sale distribution does not fall within paragraph 1(3) above if the only transactions in securities to which any of the specified matters are referable are relevant transactions.

For the purposes of this paragraph, a qualifying distribution of a company is an excepted pre-sale distribution if, in the period beginning with the making of the distribution and ending with the fourteenth day after the day on which the distribution is made, there is a major change in the ownership of that company.

For the purposes of sub-paragraph (2) above, there is a major change in the ownership of a company in any period if, in that period—

For the purposes of this paragraph a relevant transaction, in relation to any excepted pre-sale distribution, is any transaction in securities by which the holding or, as the case may be, any of the holdings mentioned in sub-paragraph (3) above is acquired.

In applying sub-paragraph (3) above—

For the purposes of this paragraph, where—then, in considering whether there has been a major change in the ownership of the company, holdings of all kinds of share capital, including preference shares, or of any particular kind of share capital, or voting power or any other special kind of power, shall be taken into account, and holdings of ordinary share capital shall be disregarded, to such extent as may be appropriate.

For the purposes of this paragraph, references to ownership shall be construed as references to beneficial ownership, and references to acquisition shall be construed accordingly.

A manufactured dividend shall not be taken to be a qualifying distribution to which this Schedule applies except in pursuance of sub-paragraph (2) below.

Where a payment is made which is representative of a qualifying distribution to which this Schedule applies, that payment shall be deemed to be such a distribution for all the purposes of the Tax Acts, except those for which Schedule 23A to the Taxes Act 1988 (manufactured payments) makes provision in relation to the payment which is different from the provision applying to distributions to which this Schedule applies.

For the purposes of Schedule 23A to the Taxes Act 1988 a payment which is representative of a payment falling within paragraph 1(2) above shall be treated as if it were representative of a dividend on the shares redeemed, repaid or purchased or, as the case may be, on the shares to which the right relates.

In this paragraph “manufactured dividend” has the same meaning as in Schedule 23A to the Taxes Act 1988.

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

In that Act—

This paragraph has effect in relation to distributions made on or after 26th November 1996.

In section 246G(1)(d) of that Act (information to be provided about a foreign income dividend), after “carries no entitlement to a tax credit” there shall be inserted“ and, in the case of a qualifying distribution to which Schedule 7 to the Finance Act 1997 applies, that it is a foreign income dividend by virtue of paragraph 2(1) of that Schedule ”.

This paragraph has effect in relation to distributions made on or after 26th November 1996.

In subsection (5A) of section 247 of that Act (under which the group income provisions do not apply to FIDs), at the beginning there shall be inserted the words“ Subject to subsections (5B) to (5D) below, ”; and after that subsection there shall be inserted the following subsections—

This paragraph has effect in relation to distributions made on or after 26th November 1996.

In section 468I of that Act (distribution accounts of authorised unit trusts), after subsection (5) there shall be inserted the following subsection—

This paragraph applies to distribution accounts for any distribution period ending on or after 26th November 1996.

In section 686 of that Act (application of rate applicable to trusts to income of certain discretionary trusts), paragraph (d) of subsection (2) shall be omitted; ...

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This paragraph has effect for the year 1997-98 and subsequent years of assessment and shall be deemed to have had effect for the year 1996-97.

Section 129 of the Taxes Act 1988 (treatment of approved stock lending arrangements when computing the profits of a trade) shall cease to have effect.

Section 129A of, and Schedule 5A to, that Act (interest on cash collateral for approved stock lending arrangements) shall also cease to have effect.

In subsection (3) of section 129B of the Taxes Act 1988 (stock lending fees under approved stock lending arrangements), for “an approved” there shall be substituted “ any ”.

For subsection (4) of that section (meaning of approved stock lending arrangement) there shall be substituted the following subsection—

After section 263A of the Taxation of Chargeable Gains Act 1992 (agreements for sale and repurchase of securities) there shall be inserted the following sections—

Section 271(9) of that Act (treatment of approved stock lending arrangements) shall cease to have effect.

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This Part of this Schedule (except paragraph 4 above) has effect in relation to, and to transfers under, any arrangement made on or after such day as the Treasury may by order made by statutory instrument appoint.

Paragraph 4 above has effect in relation to any manufactured payment made on or after the day appointed under sub-paragraph (1) above.

Section 21 of the Taxes Management Act 1970 (information about a market maker’s business) shall be amended as follows.

For subsection (1) there shall be substituted the following subsection—

In subsection (2)—

In subsection (3), for “transactions in the course of” there shall be substituted “ securities transactions in the course of any business of a person other than the broker which is ”.

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

In subsection (5)—

After that subsection there shall be inserted the following subsection—

For subsection (7) there shall be substituted the following subsection—

Subject to the following provisions of this paragraph, this Part of this Schedule has effect in relation to any payment of a manufactured dividend or manufactured interest which is a payment made on or after such day as the Treasury may by order made by statutory instrument appoint.

Paragraph 14 above has effect (instead of in accordance with sub-paragraph (1) above but subject to sub-paragraph (3) below) for the purpose of conferring powers for obtaining information about—

Nothing in this Part of this Schedule shall affect the exercise, at any time on or after the day appointed under sub-paragraph (2) above, of the powers conferred apart from this Schedule by—for obtaining information about transactions entered into, or payments made, before that day.

Section 41 of the Taxes Act 1988 (which gives a person relief from corporation tax under Schedule A for rent etc not paid, by treating him as if he had never been entitled to the rent) shall be disregarded in determining for the purposes of this Part of this Schedule the amount of—for any period of account.

Where for any period of account—section 41 of the Taxes Act 1988 shall not have effect in relation to amounts in respect of rents from the lease of the asset for that or any subsequent period of account of his, or of any person to whom the lessor’s interest under the lease is assigned, until the lease terminates or is assigned in circumstances such that paragraph 7 above does not apply.

Where, by virtue of sub-paragraph (2) above, section 41 of the Taxes Act 1988 does not apply, sub-paragraph (4) below shall apply instead.

In computing the profits or gains on which a person is chargeable to corporation tax under Schedule A in a case falling within sub-paragraph (2) above, any sums falling within sub-paragraph (i), (ii) or (iii) of section 74(1)(j) of the Taxes Act 1988 in respect of amounts in respect of rents from the lease of the asset shall be deductible in a period of account as an expense to the extent that they would be deductible in that period of account if—

Any such expense as is mentioned in sub-paragraph (4) above shall be treated for the purposes of section 25 of the Taxes Act 1988 (deductions from rent for the purposes of corporation tax under Schedule A) as if that expense—

Where—the taxable rent for that period of account shall be increased by the amount of the relevant credit.

In sub-paragraph (6) above, “the taxable rent”, in the case of a period of account of the current lessor, means the amount which would, apart from that sub-paragraph, be treated for tax purposes as rent from the lease—in that period of account for the purpose of determining his liability to tax for the related chargeable period or periods.

After the time when the conditions in paragraph 3 above become satisfied as respects any particular lessor, no claim under section 41 of the Taxes Act 1988 shall be made in respect of any amount which that lessor was entitled to receive in respect of rents from the lease of the asset.

Where—no amount shall be deductible under sub-paragraph (4) above in respect of that amount so far as so allowed.

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

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

In this paragraph “life assurance business” has the same meaning as in Chapter I of Part XII of the Taxes Act 1988.

Subject to sub-paragraph (2) below, this Schedule has effect for the purpose of determining the credits and debits to be brought into account in any accounting period ending on or after 14th November 1996.

Paragraphs 4 and 6 above do not apply in the case of a loan relationship to which the company in question has ceased to be a party before 14th November 1996 unless—

A credit or debit a fraction of which falls to be brought into account under paragraph 6(4) of Schedule 15 to the Finance Act 1996 (election as to adjustments) in an accounting period ending on or after 14th November 1996 shall be determined, for the purposes mentioned in sub-paragraph (1) above, without applying sub-paragraph (2) above in relation to the relevant assumption.

In section 379A(2) of the Taxes Act 1988 (cases in which Schedule A losses may be set against other income of the same year or the following year)—

In section 503 of that Act (letting of furnished holiday accommodation treated as trade), after subsection (1) there shall be inserted the following subsection—

In subsection (3) of section 67 of that Act of 1990 (manner of giving allowance on thermal insulation), the words from “shall be made” to “corporation tax,” shall be omitted.

After that subsection there shall be inserted the following subsection—

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

In section 73 of that Act of 1990 (manner of making allowances and charges under Part II), in subsection (1), for “subsection (2)” there shall be substituted“ subsections (1A) and (2) ”.

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

Subject to sub-paragraph (2) below, this Schedule has effect—

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

In subsection (2) of section 51 (definitions), after the definition of “relevant land” there shall be inserted the following definition—

In subsection (5) of that section—

After that subsection there shall be inserted the following subsection—

After subsection (6) of that subsection there shall be inserted the following subsection—

In subsection (8), paragraph (b) (expenditure under commitments made before 12th July 1984 not subject to the provisions of the Chapter) shall cease to have effect.

Subject to sub-paragraphs (7) and (8) below, this paragraph has effect for chargeable periods ending on or after 24th July 1996.

Where, but for this sub-paragraph, the latest time for the giving of a notice under subsection (6A) of section 51 would be before the end of the period of three months beginning with the day on which this Act is passed, that subsection shall have effect as if the latest time for the giving of that notice were the end of that period of three months.

Section 59(10) shall not apply by virtue of sub-paragraph (5) above in any case where it would not have applied apart from that sub-paragraph and the fixture is treated as having ceased to belong to the former owner before 24th July 1996.

In subsection (1) of section 53 (cases where allowance may be made in respect of expenditure of an equipment lessor), at the beginning there shall be inserted “ Subject to subsections (1A) to (1C) below, ”.

In paragraph (b) of that subsection (agreement must be entered into for the purposes of a trade carried on by the equipment lessee etc.), after the word “trade”, in the first place where it occurs, there shall be inserted “ which is or is to be ”.

After paragraph (b) of that subsection there shall be inserted the following paragraphs—.

In paragraph (d) of that subsection, for the words from “the fixture” to the end of the paragraph there shall be substituted “ the equipment lessee would, by virtue of section 52, have been entitled to an allowance in respect of the expenditure, as expenditure incurred on the provision of that fixture, and ”.

After that subsection there shall be inserted the following subsections—

Sub-paragraphs (1), (2) and (5) above have effect for chargeable periods ending on or after the day on which this Act is passed in relation to any case in which the agreement for the lease of the machinery or plant is entered into on or after that day.

Sub-paragraphs (3) and (4) above have effect for chargeable periods ending on or after 24th July 1996 in relation to any case in which the expenditure incurred by the equipment lessor is expenditure incurred on or after that date.

After section 56 there shall be inserted the following sections—

In section 54(1)—

In section 56—

This paragraph has effect, subject to sub-paragraphs (5) and (6) below, for chargeable periods ending on or after 24th July 1996.

Sub-paragraph (2)(a) above does not apply where the purchaser acquired the relevant interest before 24th July 1996.

Sub-paragraph (3)(a) above does not apply where the lease was granted before 24th July 1996.

In subsection (1) of section 59 (disposal value of fixtures determined in accordance with subsections (2) to (6)), after “determined” there shall be inserted “ (subject to sections 59A and 59B) ”.

In Chapter VI of Part II, after that section there shall be inserted the following section—

This paragraph has effect for chargeable periods ending on or after 24th July 1996 wherever the time of the occurrence of the event by virtue of which the disposal value falls to be brought into account is a time on or after that date.

In Chapter VI of Part II, after the section 59A inserted by paragraph 5 above there shall be inserted the following sections—

This paragraph has effect for chargeable periods ending on or after the day on which this Act is passed wherever the time when the fixture in question is or would be treated as ceasing to belong to the former owner is a time on or after that day.

In section 147 (exclusion of double allowances), after subsection (2) there shall be inserted the following subsections—

In subsection (3) of that section after the definition of “capital expenditure” there shall be inserted.

This paragraph has effect for chargeable periods ending on or after 24th July 1996 but shall not be taken to prevent any allowance from being made, or any amount from being taken into account, in respect of expenditure incurred before that date.

In subsection (8) of section 164A (cases where eligible shares are not a qualifying investment), after “in a qualifying company shall” there shall be inserted “ , subject to subsection (8A) below, ”.

After that subsection there shall be inserted the following subsections—

In subsection (1) of section 164F (failure of conditions of relief), after “or this section” there shall be inserted “ or section 164FA ”.

After that section there shall be inserted the following section—

For paragraphs (b) and (c) of subsection (2) of section 164G (company must be of one of the given descriptions) there shall be substituted

For subsections (4) and (5) of that section (meaning of “qualifying subsidiary”) there shall be substituted the following subsections—

In paragraph (a) of subsection (1) of section 164I (meaning of “qualifying trade”), after “complies with the requirements of this section” there shall be inserted “ and is carried on wholly or mainly in the United Kingdom ”.

In paragraph (b) of that subsection—

For subsection (2) of section 164N (application of section 170 for the interpretation of sections 164G and 164I) there shall be substituted the following subsection—

In section 164N (interpretation of Chapter IA), after subsection (4) there shall be inserted the following subsection—

This Schedule—

Shares fall within this sub-paragraph if—

The application of the preceding provisions of this Schedule in relation to any shares falling within sub-paragraph (2) above shall not prevent those shares from being (or having been) shares in a qualifying company at any relevant time when those shares would have been shares in such a company if this Schedule had not been enacted.

For the purposes of sub-paragraph (3) above a time is a relevant time in relation to any shares falling within sub-paragraph (2) above if it is a time after 26th November 1996 and within the period of 3 years after the acquisition of the shares.