UKPGA-2002-23 Finance Act 2002 UK

in paragraph (b) (rate of duty per hectolitre in the case of cider of a strength exceeding 7.5 per cent that is not sparkling cider), for “£39.21” substitute “ £38.43 ”;

in paragraph (c) (rate of duty per hectolitre in any other case), for “£26.13” substitute “ £25.61 ”.

the insertion by paragraph 2 of that Schedule of the new section 36H of the Alcoholic Liquor Duties Act 1979, and

paragraph 3 of that Schedule,

is set aside for chargeable use (as defined in the section 6AA inserted by subsection (4)) after such date as the Commissioners of Customs and Excise may by order made by statutory instrument appoint, or

not having been so set aside, is the subject of such chargeable use after that date,

is imported into the United Kingdom after the date appointed under subsection (6)(a), or

not having been so imported—

so far as relating to paragraph 3 of that Schedule, comes into force on the day after the date appointed under subsection (6)(a),

so far as relating to paragraph 5 of that Schedule, applies to mixtures produced after the date appointed under subsection (6)(a), and

so far as relating to paragraph 7 of that Schedule, comes into force on such day as the Commissioners of Customs and Excise may by order made by statutory instrument appoint.

in subsection (5) (power to provide that fuel substitute to be treated as if it were a description of hydrocarbon oil), for the words from “the description of such one or more of the following” to the end substitute “ such description of hydrocarbon oil as may be so specified ”;

in subsection (6)(a) (power to be exercised so that fuel substitute charged with duty and otherwise treated as if it were description of hydrocarbon oil to which it is most closely equivalent), for “the substance falling within the descriptions specified in subsection (5) above” substitute “ hydrocarbon oil of the description ”.

in subsection (2) (power to provide that mineral oil fuel substitute to be treated as if it were a particular description of hydrocarbon oil), for the words from “the description of such one or more of the following” to the end substitute “ such description of hydrocarbon oil as may be so specified ”;

in subsection (3) (power to be exercised so that mineral oil fuel substitute treated as if it were description of hydrocarbon oil to which it is most closely equivalent), for “the substance falling within the descriptions specified in subsection (2) above” substitute “ hydrocarbon oil of the description ”.

the substitution of the new regulation-making provisions by paragraph 2 of that Schedule, and

paragraphs 10(3), (4) and (12) and 12(2) of that Schedule,

such transitional provision as he considers necessary or expedient in connection with the coming into force of subsection (1);

such provision consequential upon, or incidental or supplementary to, the amendments made by Schedule 5 to this Act (including provision further amending the Vehicle Excise and Registration Act 1994) as he considers necessary or expedient.

paragraph 2(4) of that Schedule (power to make regulations as to calculation of cylinder capacity of motorcycle engines), and

section 57(8) of that Act (regulations under paragraph 2(4) of Schedule 1 not subject to annulment).

made under paragraph 2(4) of that Schedule or having effect as if so made, and

in force or effective immediately before the passing of this Act,

in subsection (2), for “subsections (3) to (6)” substitute “ subsections (4) to (6) ”;

omit subsection (3) (Commissioners to be satisfied that the duty in question has been duly paid, and not already drawn back, before drawback is payable).

subsection (9) of section 6 (time of supply);

in paragraph 2 (VAT invoices etc) of Schedule 11 (administration, collection and enforcement)—

in section 6(15), for “paragraph 2(1)” substitute “ paragraph 2A ”;

in section 83 (appeals), for paragraph (z) substitute—;

in section 88 (supplies spanning change of rate etc)—

the corporation tax starting rate shall be 0%, and

the fraction mentioned in section 13AA(3) of the Taxes Act 1988 (marginal relief for small companies) shall be 19/400ths.

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in paragraph (aa) for “the deemed transfer” substitute “ the election ”.

in relation to a case where a company is treated by virtue of section 179(3) of the Taxation of Chargeable Gains Act 1992 (c. 12) as having sold and immediately reacquired an asset, where the company’s ceasing to be a member of the group in question happens on or after 1st April 2002;

in relation to a case where a company is so treated by virtue of section 179(6) of that Act, where the relevant time (within the meaning of that subsection) is on or after that date.

in relation to a case where a company is treated by virtue of section 179(3) of the 1992 Act as having sold and immediately reacquired an asset, where the company’s ceasing to be a member of the group in question happens on or after 1st April 2002;

in relation to a case where a company is so treated by virtue of section 179(6) of that Act, where the relevant time (within the meaning of that subsection) is on or after that date.

any shares to which relief under Chapter 3 of Part 7 of the Taxes Act 1988 is attributable and which were transferred to an individual as mentioned in section 304 of that Act, and

any shares to which deferral relief (within the meaning of Schedule 5B to the Taxation of Chargeable Gains Act 1992 (c. 12)), but not relief under that Chapter, is attributable and which were acquired by an individual on a disposal to which section 58 of that Act applies,

Schedule 16 shall have effect in relation to—

paragraphs 2 to 4 of Schedule 17 shall have effect for years of assessment ending on or after the day appointed under paragraph (a)(i), and

paragraph 5 of that Schedule shall have effect for accounting periods ending on or after that day.

Part 1 makes provision for and in connection with first-year allowances under Part 2 of the Capital Allowances Act 2001 in respect of expenditure incurred by a company on the provision of plant or machinery for use wholly for the purposes of a ring fence trade chargeable to tax under section 330(1) of the Corporation Tax Act 2010; and

Part 2 makes provision for and in connection with first-year allowances under Part 5 of that Act (mineral extraction allowances) in respect of expenditure incurred by a company wholly for the purposes of such a trade.

an insurance company,

a corporate member of Lloyd’s, or

a controlled foreign company.

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section 46 of the Corporation Tax Act 2009 (computation of profits to be on basis giving true and fair view),

began before 1st August 2001, and

ends before 31st July 2002.

an earlier period of account beginning on or after 1st January 2001 ended with an accounting date different from that with which the previous period of account ended,

the change of accounting date was notified—on or after 17th April 2002, and

the purpose, or one of the purposes, for which the change was made was so that a subsequent period of account would be one to which section 64 above applies (computation of profits: adjustment on change of basis).

assets are realised by the company in an accounting period beginning on or after 1st January 2002,

the assets are of such a kind that the particular assets realised are not readily identifiable,

the realisation does not exhaust the company’s holding, and

some but not all of the company’s holding was acquired after 1st January 2002,

an asset in relation to which the election has effect is transferred to another company (“the transferee company”) in pursuance of an insurance business transfer scheme, and

immediately after the transfer either—this section applies as if the transferee company had made an election under this section in relation to that asset.

the amendments in subsections (1) and (2) apply in relation to periods of account ending on or after 1st August 2001;

the amendment in subsection (3) applies wherever an adjustment falls to be made under Schedule 22 to the Finance Act 2002 (see Part 5 of that Schedule).

paragraph 4 of Schedule 9 to the Finance Act 1996 (c. 8) (which excludes foreign exchange gains and losses from the computation of credits and debits under the loan relationships legislation); and

in consequence, sections 125 to 169 of the Finance Act 1993 (c. 34) (taxation of foreign exchange gains and losses).

to make different provision for different cases or different purposes;

to amend any statutory instrument; and

to make incidental or supplementary provision.

for the purposes of the Taxation of Chargeable Gains Act 1992 (c. 12), as if they were chargeable gains or allowable losses; or

for the purposes of Part 5 of the Corporation Tax Act 2009, as if they were credits or debits in respect of a loan relationship or a related transaction of the company concerned.

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Schedule 27 to this Act (which makes minor and consequential amendments relating to the taxation of derivative contracts); and

Schedule 28 to this Act (which contains transitional provisions etc in connection with the coming into force of this section and Schedules 26 and 27).

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sections 501A and 501B of the Taxes Act 1988 (which are inserted by sections 91 and 92) shall apply as if so much of the straddling period as falls before 17th April 2002, and so much of that period as falls on or after that date, were separate accounting periods; and

all necessary apportionments between the two separate accounting periods shall be made in proportion to the number of days in those periods.

in relation to any tax chargeable on the company under section 501A(1) of the Taxes Act 1988; and

in relation to any other tax chargeable on the company.

the deemed accounting period treated under subsection (1)(a) as beginning on 17th April 2002 were an accounting period for the purposes of those Regulations; and

that tax were chargeable for that period.

in their application by virtue of paragraph (a) of subsection (2), as a reference to the tax mentioned in that paragraph; and

in their application by virtue of paragraph (b) of that subsection, as a reference to the amount that would be the company’s total liability for the straddling period if the tax mentioned in paragraph (a) of that subsection were left out of account.

a company shall be regarded as a large company as respects the deemed accounting period under subsection (3)(a) if, and only if, it is a large company for those purposes as respects the straddling period; and

any question whether a company is a large company as respects the straddling period shall be determined as it would have been determined apart from section 501A of the Taxes Act 1988.

in paragraph (a), after “a company” insert “ or local authority ”,

in paragraph (b)—

in paragraph (c), after “the company” insert “ or authority ”, and

in paragraph (d), for “neither” substitute “ none ”.

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after subsection (4C) insert—.

in the Taxes Act 1988, sections ......, ..., 798B(1) ..., ...;

in the Finance Act 1993 (c. 34), sections ... 150(6)(c) and (11)(c), 154(11)(c), (12)(d), (13)(b), (13A)(d) and (13B)(d), 155(7), (11)(d) and (12)(b), 156(2)(e) and (4)(b) and 159(1)(b);

in the Finance Act 1994 (c. 9), section 156(3)(a) and (4)(a);

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in the Finance Act 2000 (c. 17), ... in Schedule 15, paragraph 29(4), ...;

in the Capital Allowances Act 2001 (c. 2), sections 179(1)(f), 219(1) ...;

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in paragraph 1 (which provides that paragraphs 2 to 7 apply where there is a transfer of the whole of a building society’s business to a successor company in accordance with section 97 etc of the Building Societies Act 1986 (c. 53)) for “2” substitute “ 3 ”; and

omit paragraph 2 (which relates to gilt-edged securities and other financial trading stock and is superseded by Chapter 2 of Part 4 of the Finance Act 1996).

an instrument (“the relevant instrument”) transferring land in the United Kingdom from one company (“the transferor company”) to another (“the transferee company”) has been stamped on the basis that group relief applies,

before the end of the period of three years beginning with the date on which the instrument was executed the transferee company ceases to be a member of the same group as the transferor company, and

at the time when the transferee company ceases to be a member of the same group as the transferor company it or a relevant associated company holds an estate or interest in land—and that has not subsequently been transferred at market value by a duly stamped instrument on which ad valorem duty was paid and in respect of which group relief was not claimed.

group relief in relation to the relevant instrument, or an appropriate proportion of it, is withdrawn, and

the stamp duty that would have been payable on stamping the relevant instrument but for group relief if the estate or interest in land transferred by that instrument had been transferred at market value, or an appropriate proportion of the duty that would have been so paid, is payable by the transferee company within 30 days after that company ceases to be a member of the same group as the transferor company.

section 42 of the Finance Act 1930 (c. 28) or section 11 of the Finance Act (Northern Ireland) 1954 (c. 23 (N.I.)) (transfer of property between associated bodies corporate);

section 151 of the Finance Act 1995 (c. 4) (leases etc between associated bodies corporate).

is a member of the same group as the transferee company immediately before that company ceases to be a member of the same group as the transferor company, and

ceases to be a member of the same group as the transferor company in consequence of the transferee company so ceasing.

references to the transfer of land include the grant or surrender of an estate or interest in or over land;

“company” includes any body corporate; and

references to a company being in the same group as another company are to the companies being associated bodies corporate within the meaning of the relevant group relief provision.

the instrument is made in consequence of the exercise after that date of any option, right of pre-emption or similar right, or

the instrument transfers the property in question to, or vests it in, a person other than the purchaser under the contract because of an assignment (or, in Scotland, assignation) or further contract made after that date.

in paragraph (a) (penalty where instrument not stamped within 30 days of execution), after “is executed in the United Kingdom” insert “ or relates to land in the United Kingdom ”;

in paragraph (b) (penalty where instrument not stamped within 30 days of instrument being first received in the United Kingdom), after “is executed outside the United Kingdom” insert “ and does not relate to land in the United Kingdom ”.

the amount or value of the consideration exceeds £10 million, or

the instrument forms part of a larger transaction or series of transactions in respect of which the amount or value, or aggregate amount or value, of the consideration exceeds £10 million.

within the period of 90 days after the execution of the contract or agreement, or

within such longer period as the Commissioners may think reasonable in the circumstances of the case,

may refuse to allow a longer period unless they are provided with a copy of the contract or agreement and such other evidence as they may reasonably require as to the facts and circumstances relevant to their decision,

may allow a longer period subject to compliance with such conditions as they think fit, and

shall not allow any longer period if it appears to them that the whole, or substantially the whole, of the intended consideration has been paid or transferred.

any adjudication to the effect that stamp duty is not chargeable does not affect the operation of this section, and

the fact that duty may be chargeable under this section may be denoted on the instrument in such manner as the Commissioners think fit.

section 14(4) of the Stamp Act 1891 (c. 39) (inadmissibility of unstamped instruments) does not apply in relation to it until after the end of the period mentioned in subsection (2) above, and

sections 15A and 15B of that Act (late stamping: interest and penalties), apply in relation to it as if it had been executed at the end of that period.

insert the following definition at the appropriate place—; and

in the definition of “property”, at the end insert “ but does not include a settlement power ”.

after subsection (1) insert—.

in subsection (4), insert “ (1A)(b), ” after “subsection (1)(b),” and after paragraph (a) insert—.

for the words from “(2)(c)” to “2 years)” substitute “ (2)(g) ”,

after paragraph (a) insert “and”, and

omit paragraph (c) and the preceding “and”.

in sub-paragraph (ii) for “18 and 21, or” substitute “ 15, 18 and 21, ”;

before the word “and” at the end of sub-paragraph (iii) insert—.

in paragraph (e) (by-products of extracting china clay or ball clay), after “or other by-products” insert “ , not including the overburden, ”;

after that paragraph insert—.

in section 20(1) (originating sites), omit—

in section 21 (operators of sites), omit subsection (2)(b);

in section 24 (the register), omit subsections (6)(b) and (8)(a).

as to the electronic form to be taken by information delivered to the Revenue and Customs using electronic communications;

requiring persons to prepare and keep records of information delivered to Revenue and Customs by means of electronic communications;

for the production of the contents of records kept in accordance with the regulations;

as to conditions that must be complied with in connection with the use of electronic communications for the delivery of information;

for treating information as not having been delivered unless conditions imposed by any of the regulations are satisfied;

for determining the time at which and person by whom information is to be taken to have been delivered;

for authenticating whatever is delivered.

whether any use of electronic communications is to be taken as having resulted in the delivery of information;

the time of delivery of any information for the delivery of which electronic communications have been used;

the person by whom information delivered by means of electronic communications was delivered;

the contents of anything so delivered;

the contents of any records;

any other matter for which provision may be made by regulations under this section.

allow any authorisation , requirement or other provision (other than provision under subsection (7)(a) to (ba)) for which the regulations may provide to be given , imposed or made by means of a specific or general direction given by the Commissioners;

provide that the conditions of any such authorisation or requirement are to be taken to be satisfied only where the Revenue and Customs are satisfied as to specified matters;

allow a person to refuse to accept delivery of information in an electronic form or by means of electronic communications except in such circumstances as may be specified in or determined under the regulations;

allow or require use to be made of intermediaries in connection with—

requiring the Revenue and Customs to notify persons appearing to them to be, or to have become, a person of a specified description and accordingly required to use electronic communications for any purpose in accordance with the regulations,

enabling a person so notified to have the question whether he is a person of such a description determined in the same way as an appeal.

that information delivered by means of electronic communications must meet standards of accuracy and completeness set by specific or general directions given by the Commissioners, and

that failure to meet those standards may be treated—

to provide for a contravention of, or any failure to comply with, the regulations to attract a penalty of a specified amount not exceeding £3,000;

to provide that specified enactments relating to penalties imposed for the purposes of any taxation matter (including enactments relating to assessments, review and appeal) apply, with or without modifications, in relation to penalties under the regulations;

to specify other consequences of contravention of, or failure to comply with, the regulations (which may include disregarding a return delivered otherwise than by the use of electronic communications);

to make different provision for different cases;

to make such incidental, supplemental, consequential and transitional provision in connection with any provision contained in any of the regulations as the Commissioners think fit.

the production or furnishing to a person of any information, account, record or document;

the giving, making, issue or surrender to, or service on, any person of any notice, notification, statement, declaration, certificate or direction;

the imposition on any person of any requirement or the issue to any person of any request;

the making of any return, claim, election or application;

the amendment or withdrawal of anything mentioned in paragraphs (a) to (d) above.

the Commissioners of Inland Revenue, or

the Treasury,

allow information to be delivered otherwise than by means of electronic communications, or

preclude the use of an intermediary in connection with its delivery.

shall be under the care and management of the Commissioners of Customs and Excise, and

shall be administered and enforced in accordance with such provisions as Parliament may determine.

if collected or received in Great Britain, be placed to the general account of the Commissioners of Customs and Excise kept at the Bank of England under section 17 of the Customs and Excise Management Act 1979;

if collected or received in Northern Ireland, be paid into the Consolidated Fund of the United Kingdom in such manner as the Treasury may direct.

incur expenditure in connection with preparations for lorry road-user charge (including any fuel credit to be paid in respect of fuelling of lorries chargeable in respect of lorry road-user charge);

enter into contracts in respect of the development or provision of equipment, systems or services to be used in connection with lorry road-user charge (including any fuel credit).

as if any reference to the Bank of Ireland were a reference to the Bank of England, and

as if any reference to an officer of the Bank of Ireland were a reference to the corresponding officer of the Bank of England.

that no further stock or bonds may be registered in either of the Irish gilts registers on or after such day as the order may appoint (“the appointed day”), and

for the transfer to the English gilts register of the entries subsisting in each of those registers at the beginning of the appointed day.

an Act, whenever passed, or

an instrument, whenever made, under an Act, whenever passed.

for subsection (1)(b) (power to provide for the keeping of stock and bond registers by the Banks of England and Ireland) substitute—, and

after subsection (1E) insert—.

an Act, whenever passed, or

an instrument, whenever made, under an Act, whenever passed.

In that Act, after that section (and before the heading“Reliefs from excise duty") insert—.

In section 49(1) of the Alcoholic Liquor Duties Act 1979 (c. 4) (beer regulations), after paragraph (j) insert—.

The Hydrocarbon Oil Duties Act 1979 (c. 5) is amended as follows.

In section 6A(1) (fuel substitutes: charge of duty) after “which is not hydrocarbon oil" insert “ , biodiesel or bioblend ”.

In section 11 (rebate on heavy oil), after subsection (5) insert—.

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In section 27(1) (interpretation) at the appropriate places insert—, and.

In the Hydrocarbon Oil Duties Act 1979 (c. 5), after section 23 insert—.

In section 100H(1) of the Customs and Excise Management Act 1979 (c. 2) (particular provision that may be made by registered excise dealers and shippers regulations), after paragraph (n) insert—.

In the Hydrocarbon Oil Duties Act 1979 (c. 5), after section 24 insert—.

The Hydrocarbon Oil Duties Act 1979 is amended as follows.

In section 12(1) (no rebate allowed on heavy oil intended for use in a road vehicle), after “no rebate" insert “ under section 11 above ”.

In section 12(2) (oil not to be used in road vehicles if rebate has been allowed under section 11(1) or 13AA(1)), for “section 11(1)" substitute “ section 11 ”.

In section 24(2) (regulations made for the purposes of section 12 or 13AA), for “under subsection (2) of that section" substitute “ under subsection (2) of section 12, or subsection (3) of section 13AA, ”.

In section 27(1) (interpretation), in the definition of “rebate", after “section 11," insert “ 13AA, ”.

The Betting and Gaming Duties Act 1981 (c. 63) is amended as follows.

For sections 6 to 8 (pool betting duty: charge, rate and payment) substitute—.

In section 2(2) (bets to which section 2(1) does not apply)—

in paragraph (b), after “bet," insert “ or ”, and

omit paragraph (d) and the word “or" preceding it.

In section 4(6) (bets to which subsections (1) to (3) do not apply), for the words from “do not apply" to the end substitute “ do not apply to on-course bets. ”.

In section 9(2) (bets to which section applies), omit “or coupon betting" (in both places).

In section 9(3) (bets to which section does not apply)—

in paragraph (a), omit “or coupon betting",

for sub-paragraphs (i) to (iv) of paragraph (a) substitute—, and

in paragraph (aa)(i), omit “or coupon betting".

For section 9(6) substitute—.

Omit section 11 (definition of coupon betting).

In section 12(3) (interpretation of sections 1 to 10 etc), omit “(except in sections 6, 7, 8, 9(2)(a) and 9(5) in their application to coupon betting)".

In section 1(3) of the Excise Duties (Surcharges or Rebates) Act 1979 (c. 8) (liability to duty other than pool betting duty adjusted if order under section in force when duty becomes due), omit the words from “, except that if the duty is pool betting duty" to the end.

after “regulations under paragraph 2" insert “ or 2A ”, and

after “in relation to general betting duty" insert “ or pool betting duty ”.

stake money is paid before 31st March 2002 in respect of a bet to which this paragraph applies, and

pool betting duty charged on that money before that date is not paid before 24th April 2002,

stake money is paid before 31st March 2002 in respect of such a bet, and

pool betting duty charged on that money before that date is paid before 24th April 2002,

carry interest,

affect the payability of the duty mentioned in sub-paragraph (2), or

entitle any person to any payment in respect of the credit.

it is a dutiable pool bet for the purposes of a calculation, under the section 7A of the Betting and Gaming Duties Act 1981 inserted by this Schedule, of the amount of a person’s net pool betting receipts for any accounting period, and

it is made before 31st March 2002 but all the events to which it relates take place on or after that date.

Any notification under paragraph 4(4) of Schedule 1 to the Betting and Gaming Duties Act 1981 (c. 63) (duty to notify premises used for purposes of pool betting business in connection only with coupon betting) that is effective immediately before 24th April 2002 shall on and after that date have effect (until withdrawn) as a notification made on 31st March 2002 under paragraph 4(3) of that Schedule (duty to notify premises used for purposes of betting business in connection only with general betting).

The Vehicle Excise and Registration Act 1994 (c. 22) is amended as follows.

For section 1(1) substitute—.

For section 2(2) to (4) (rates where duty charged in respect of keeping but not use) substitute—.

For section 7(4) (vehicle licence valid only for vehicle for which it is issued) substitute—.

After section 7 insert—.

In section 29(7) (rate of duty by reference to which penalty is calculated), for “section 2(2) to (4)" substitute “ section 2(3) to (6) ”.

After section 31 insert—.

in the words before paragraph (a), after “section 29" insert “ or 31A ”, and

in the words after paragraph (c), after “sections 29 to 31" insert “ or (as the case may be) sections 31A to 31C ”.

In section 33(3)(b) (offences of not exhibiting licence are without prejudice to offences of not having a licence), after “sections 29" insert “ , 31A ”.

In section 34(4) (rate of duty by reference to which penalty is calculated), for “section 2(2) to (4)" substitute “ section 2(3) to (6) ”.

In section 47 (proceedings in England and Wales or Northern Ireland), in each of subsections (1) and (2)(a) (who may prosecute and time limit), after “section 29," insert “ 31A, ”.

In section 48(3)(a) (proceedings in Scotland: time limit), after “section 29," insert “ 31A, ”.

In section 53 (burden of proof of certain matters in proceedings for certain offences), after “section 29," insert “ 31A, ”.

In section 54 (single witness sufficient in Scottish proceedings), after “section 29" insert “ , 31A ”.

In section 57 (regulations), after subsection (7) insert—.

In section 62(1) (definitions), for the definition of “vehicle" substitute—.

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The following Schedule is inserted after Schedule 7AA to the Taxation of Chargeable Gains Act 1992 (c. 12)—.

The following Schedule is inserted after Schedule 7AB to the Taxation of Chargeable Gains Act 1992 (c. 12)—.

In section 179(4) of the Taxation of Chargeable Gains Act 1992 (c. 12) (deemed sale and reacquisition on company ceasing to be member of group: time when chargeable gain or allowable loss treated as accruing), for “which, apart from this subsection, would accrue" substitute “ accruing ”.

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In Schedule 7B of the Taxation of Chargeable Gains Act 1992 (c. 12) (modification of Act in relation to overseas life insurance companies), after paragraph 15 add—.

In Schedule 15 to the Finance Act 2000 (c. 17) (the corporate venturing scheme), in paragraphs 84(1) and 85(1) after “(see paragraph 83" insert “ and paragraph 4 of Schedule 7AC to the Taxation of Chargeable Gains Act 1992 ”.

For section 135 of the Taxation of Chargeable Gains Act 1992 (exchange of securities for those in another company) substitute—.

For section 136 of the Taxation of Chargeable Gains Act 1992 (c. 12) (reconstruction or amalgamation involving issue of securities) substitute—.

After Schedule 5A to the Taxation of Chargeable Gains Act 1992 insert—.

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in subsection (4C), as that section applies to shares issued before 1st January 1994 (business expansion scheme),

in subsection (1), for “, reconstruction or amalgamation" substitute “ or scheme of reconstruction ”; and

in subsection (6), for “section 136(3)" substitute “ section 135(5), 136(5) ”.

in subsection (1) for “or amalgamation" substitute “ , exchange or scheme of reconstruction ”; and

in subsection (2) at the end insert “ and “scheme of reconstruction" has the same meaning as in section 136 ”.

in subsection (2) for “132 and 135" substitute “ 132, 135 and 136 ”;

in subsection (3)—

in subsection (6)(b) for the words from “unaffected" to the end substitute “ to which section 135 applies and which is unaffected by section 137(1) ”.

for “(whether or not by virtue of section 135(3) of that Act)" substitute “ (including a case where that section applies by virtue of any enactment relating to chargeable gains) ”; and

for the words from “shall be construed" to the end substitute “ have the same meaning as in section 127 of the 1992 Act (or, as the case may be, that section as applied by virtue of the enactment concerned) ”.

in sub-paragraph (2)(a) for “section 136(1)" substitute “ section 136 ”;

in sub-paragraph (2)(b) for “sections 135 and 136 of that Act to bona fide reconstructions and amalgamations" substitute “ section 136 of that Act to bona fide schemes of reconstruction ”.

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The Taxation of Chargeable Gains Act 1992 (c. 12) is amended in accordance with paragraphs 2 to 6.

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This Schedule applies in relation to chargeable gains treated as accruing to a person by virtue of section 77 or 86 (read, where appropriate, with section 10A) of the Taxation of Chargeable Gains Act 1992 (c. 12) in the year 2003-04 and subsequent years of assessment.

must be made by a notice given to an officer of the Board no later than 31st January 2005;

where chargeable gains are treated as accruing in respect of two or more settlements, may be restricted to those treated as accruing in respect of the settlement or settlements specified in the election.

a person makes an election under this paragraph for any one or more of the years of assessment 2000-01, 2001-02 and 2002-03, and

the effect of the election, or (as the case may be) both or all of them taken together, is to increase the total amount of tax that the person is entitled to recover from the trustees of a particular settlement for those three years under section 78(1)(a) of the Taxation of Chargeable Gains Act 1992 or paragraph 6 of Schedule 5 to that Act,

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In Schedule 18 to the Finance Act 1998 (c. 36) (company tax returns, assessments and related matters), in paragraph 8 (calculation of tax payable), after paragraph 1A of the second step of the calculation in sub-paragraph (1) insert—.

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The Capital Allowances Act 2001 (c. 2) is amended as follows.

In section 39, after the entry relating to section 45A add,.

After section 45C insert—.

In section 52(3), in the Table, after the entry relating to expenditure qualifying under section 45A add—.

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The Capital Allowances Act 2001 (c. 2) is amended as follows.

In section 39, after the entry relating to section 45D (which is inserted by Schedule 19 to this Act) add—.

After section 45D (which is added by Schedule 19 to this Act) insert—.

In section 46, in subsection (1) (expenditure which is subject to the general exclusions) after the entry relating to section 45D (which is added by Schedule 19 to this Act) add—.

In section 52(3), in the Table, after the entry relating to expenditure qualifying under section 45D (which is added by Schedule 19 to this Act) add—.

Part 2 of the Capital Allowances Act 2001 (c. 2) (plant and machinery allowances) is amended as follows.

In section 39, after the entry relating to section 45E (which is added by Schedule 20 to this Act) add.

After section 45E (which is inserted by Schedule 20 to this Act) insert—.

After section 45F insert—.

In section 46, in subsection (1) (expenditure which is subject to the general exclusions) after the entry relating to section 45E (which is added by Schedule 20 to this Act) add.

In section 52(3), in the Table, after the entry relating to expenditure qualifying under section 45E (which is added by Schedule 20 to this Act) add—.

Part 5 of the Capital Allowances Act 2001 (c. 2) (mineral extraction allowances) is amended as follows.

After section 416, insert the following Chapter—.

At the beginning of Chapter 6 (allowances and charges) insert—.

After section 416D insert—.

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Chapter 2 of Part 4 of the Finance Act 1996 (c. 8) (loan relationships) is amended in accordance with the following provisions of this Part.

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In Schedule 15 (savings and transitional provisions) omit paragraphs 22 to 24.

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shall be brought into account for that accounting period as if they were credits falling for the purposes of Part 5 of the Corporation Tax Act 2009 to be brought into account in respect of the company’s loan relationships;

shall be treated for the purposes of that Part as non-trading credits, to the extent that they would, but for the repeal of subsections (5), (8) and (9) of section 140 of the Finance Act 1993, have fallen to be treated by virtue of those subsections as non-trading exchange gains; and

except as provided by paragraph (b), shall be brought into account under section 297(2) of the Corporation Tax Act 2009 (trading credits).

over the first 6 accounting periods of the company which begin on or after 1st October 2002; and

in instalments of an equal amount for each such accounting period.

makes an election under sub-paragraph (3), but

ceases to be within the charge to corporation tax before six accounting periods of the company which begin on or after 1st October 2002 have elapsed,

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Chapter 2 of Part 4 of the Finance Act 1996 (c. 8) (loan relationships) is amended in accordance with the following provisions of this Part of this Schedule.

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For paragraph 3 of that Schedule substitute—.

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In Schedule 15, after paragraph 11 (other adjustments in the case of chargeable assets etc) insert—.

The Taxes Act 1988 is amended as follows.

In section 77(2)(a) (meaning of “qualifying loan” etc) omit sub-paragraph (ii) (interest deductible under section 338 against total profits).

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sub-paragraphs (3)(a), (4)(a) and (5)(a) and (b);

in sub-paragraph (5), in the words following paragraph (c), the word “group”; and

sub-paragraph (6).

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The Taxes Act 1988 is amended as follows.

In section 15(1) (Schedule A) in paragraph 2(3) of Schedule A (profits of Schedule A business computed without regard to certain items) for the third indent (which relates to qualifying payments within Chapter 2 of Part 4 of the Finance Act 1994 (c. 9)) substitute—.

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Omit section 468AA (authorised unit trusts: futures and options).

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In section 798B (restriction of relief on certain interest and dividends: meaning of “financial expenditure”) in subsection (5) (meaning of “qualifying losses”) for paragraph (b) (losses brought into account for purposes of Chapter 2 of Part 4 of the Finance Act 1994) substitute—.

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In section 226 (provisions of the Finance Act 1993 (c. 34) and Finance Act 1994 which are not to apply in the case of Lloyd’s underwriters) for subsection (3) (contracts and options in premium trust fund of corporate member not to be qualifying contracts for purposes of Chapter 2 of Part 4 of the Finance Act 1994) substitute—.

The Finance Act 1996 (c. 8) is amended as follows.

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Omit Schedule 12(meaning of debt contract or option).

The Finance Act 2000 (c. 17) is amended as follows.

The Finance Act 2002 is amended as follows.

Section 78 (which amends the provision made by Schedule 5AA to the Taxes Act 1988 as regards corporation tax in relation to guaranteed returns on transactions involving futures and options, provision as regards which is made in Schedule 26 in relation to accounting periods beginning on or after 1st October 2002) shall cease to have effect.

In Schedule 29 (taxation of intangible fixed assets) in paragraph 75 (which provides for the Schedule not to apply to financial assets) for sub-paragraph (3)(b) (financial assets to include qualifying contracts within Chapter 2 of Part 4 of the Finance Act 1994) substitute—.

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was not a qualifying contract (within the meaning of Chapter 2 of Part 4 of the Finance Act 1994) immediately before the company’s commencement day, but

as from that day is a derivative contract.

that it had made a disposal of the asset immediately before its commencement day, and

that the disposal had been for a consideration equal to the value (if any) given to the contract in the accounts of the company at the end of the company’s accounting period immediately before its first new period.

was not a qualifying contract (within the meaning of Chapter 2 of Part 4 of the Finance Act 1994 (c. 9)) immediately before the company’s commencement day, but

as from that day would, but for an election under sub-paragraph (5) of this paragraph, be a derivative contract to which paragraph 7 of Schedule 26 (contracts designed to secure guaranteed amount) applies.

a creditor relationship of the company which is a zero coupon bond (within the meaning of paragraph 48 of Schedule 26), and

an option of the company whose underlying subject matter is the same as the underlying subject matter of the contract to which this paragraph applies;

may only be made within the period of two years following the end of the company’s first new period;

has effect for the company’s first new period and all subsequent accounting periods of the company; and

is irrevocable.

that it had made a disposal of the asset immediately before its commencement day, and