Finance (No. 2) Act 1975

Description of tax	Date applicable
1. Tax charged by an assessment to income tax under Schedule A or an assessment to income tax under Schedule D other than an assessment made under Part III of Schedule 5 to the principal Act (machinery for assessment, charge and payment of income tax under Schedule C and, in certain cases, Schedule D).	1. The 1st July following the end of the year of assessment.
2. Tax charged by an assessment to income tax under Schedule C or an assessment to income tax under Schedule D made under Part III of Schedule 5 to the principal Act.	2. The last day of the six months following the end of thirty days mentioned in paragraph 9 of the said Schedule 5.
3. Tax charged by an assessment charging income tax as mentioned in subsection (2)(b) above.	3. The 1st January following the end of the year of assessment.
4. Tax charged by an assessment to capital gains tax.	4. The 1st January following the end of the year of assessment.
5. Tax charged by an assessment to corporation tax other than an assessment made under Schedule 14 to the Finance Act 1972.	5. The last day of the six months following—
	(a) in a case where section 243(4) of the principal Act applies, the end of the nine months there mentioned ;
	(b) in a case where section 244(1) of that Act applies, the end of the interval there mentioned from the end of the accounting period to which the assessment relates ; or
	(c) in a case where section 344 of that Act applies, the last day on which the tax could have been paid within the limit imposed by subsection (2)(a) of that section.

(5) Tax charged by an assessment to which this section applies shall carry interest from the reckonable date even if that date is a non-business day within the meaning of section 92 of the Bills of Exchange Act 1882. (6) Where the amount of interest payable under this section on the tax charged by any assessment does not exceed £10, that interest may, if the Board think fit, be remitted.

• (2) Section 86 of the said Act of 1970 as substituted by subsection (1) above shall have effect in relation to tax charged for the year 1972-73 or an earlier year of assessment as if—

• (a) for subsection (2)(b) there were substituted—

(b) an assessment to surtax

, and

• (b) in subsection (3)(a) after the word “or” there were inserted the words “ (except in the case of surtax) ”.

• (3) Section 87 of the said Act of 1970 (which, in relation to interest on overdue income tax on company distributions, has effect as originally enacted and, in relation to interest on overdue advance corporation tax and overdue income tax on company payments, has effect as substituted by paragraph 10 of Schedule 24 to the Finance Act 1972) shall be amended as follows—

• (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (b) at the end of the section there shall be added as subsection (8)—

(8) Tax assessable as mentioned in subsection (1) above shall carry interest from the date when it becomes due and payable even if that date is a non-business day within the meaning of section 92 of the Bills of Exchange Act 1882.

• (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (5) Section 109 of the said Act of 1970 (which, in relation to tax charged in connection with loans and other payments made and shortfalls occurring before 6th April 1973, has effect as originally enacted and, in relation to tax charged in connection with loans made on or after that date, has effect as substituted by paragraph 13 of Schedule 24 to the Finance Act 1972) shall be amended as follows—

• (a) in subsection (4) as originally enacted, for the words “subsection (2) and paragraph (a) of subsection (3)” there shall be substituted the words “ subsection (4) and the words “or the date mentioned in subsection (4) below, whichever is the later” in subsection (3)(a) ”,

• (b) in subsection (2) as so substituted, for the words “subsections (2) and (3)(a) of the said section 86 were omitted” there shall be substituted the words “ the date given by the Table in subsection (4) of the said section 86 were the last day of the three months following the end of the financial year in which the loan or advance was made ”, and

• (c) in subsection (3) as so substituted, for the words “year of assessment” there shall be substituted the words “ financial year ”.

• (6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Repayment supplement in respect of delayed repayments of certain taxes to persons other than companies

47

Repayment supplement in respect of delayed repayments of certain taxes to companies

48

Expenditure on safety at sports grounds

49

Certificates of deposit: exemption for pension funds and charities

50

Exemption for trade unions

51

• (1) In section 338 of the Taxes Act (exemption of income and gains of certain trade unions if applied for purpose of provident benefits), for the reference to £500 (maximum assurable by way of gross sum) there shall be substituted a reference to £1,000, and for the references to £104 a year (maximum assurable by way of annuity) there shall be substituted references to £208 a year.

• (2) This section shall have effect in relation to income or gains which are applied as mentioned in subsection (1) of the said section 338 after 15th April 1975.

Exemption for registered friendly societies

52

• (1) In section 332 of the Taxes Act (exemption of income and gains of registered friendly societies other than profits arising from life or endowment business consisting of the assurance of gross sums exceeding £500 or of the granting of annuities of annual amounts exceeding £104), after subsection (3) there shall be added the following subsections—

(4) A registered friendly society is within this subsection if its rules make no provision for it to carry on life or endowment business consisting of the assurance of gross sums exceeding £1,000 or of the granting of annuities of annual amounts exceeding £208. (5) In the case of a registered friendly society within subsection (4) above— (a) subsections (2) and (3) above shall have effect with the substitution of references to £1,000 and £208 respectively for the references to £500 and £104; and (b) references in this Chapter to tax exempt life or endowment business shall be construed accordingly. (6) Where at any time a registered friendly society within subsection (4) above amends its rules so as to cease to be within that subsection, any part of its life or endowment business consisting of business which— (a) relates to contracts made before that time ; and (b) immediately before that time was tax exempt life or endowment business, shall thereafter continue to be tax exempt life or endowment business for the purposes of this Chapter. (7) Where at any time a registered friendly society not within subsection (4) above amends its rules so as to bring itself within that subsection, any part of its life or endowment business consisting of business which— (a) relates to contracts made before that time ; and (b) immediately before that time was not tax exempt life or endowment business, shall thereafter continue not to be tax exempt life or endowment business for the purposes of this Chapter. (8) Where at any time a registered friendly society not within subsection (4) above acquires by way of transfer of engagements or amalgamation from another registered friendly society any life or endowment business consisting of business which— (a) relates to contracts made before that time; and (b) immediately before that time was tax exempt life or endowment business, that business shall thereafter continue to be tax exempt life or endowment business for the purposes of this Chapter. (9) Where at any time a registered friendly society within subsection (4) above acquires by way of transfer of engagements or amalgamation from another registered friendly society any life or endowment business consisting of business which— (a) relates to contracts made before that time ; and (b) immediately before that time was not tax exempt life or endowment business, that business shall thereafter continue not to be tax exempt life or endowment business for the purposes of this Chapter.

• (2) In section 337(3) of the Taxes Act, in the definition of " tax exempt life or endowment business "—

• (a) after the word " has " there shall be inserted the words " , subject to section 332(6) to (9) above, ";

• (b) after the word " means " there shall be inserted the words " , subject as aforesaid, "; and

• (c) at the end there shall be added the words " (read, where appropriate, with subsection (5) of that section) ".

• (3) The preceding provisions of this section shall have effect as regards any year of account of a registered friendly society or branch ending after the passing of this Act (including the whole of any such year of account that ends with 31st December 1975).

• (4) The Friendly Societies Act 1974 and the Friendly Societies Act (Northern Ireland) 1970 shall have effect subject to the amendments specified in Schedule 9 to this Act, being amendments arising out of the preceding provisions of this section.

Employers' associations

53

If an employers' association entered in the list of employers' associations maintained under the Trade Union and Labour Relations Act 1974 was on 30th September 1971 a registered trade union for the purposes of section 338 of the Taxes Act (exemption for trade unions), it shall be treated for the purposes of that section as having remained a registered trade union until the passing of this Act, and as thereafter remaining one so long as it remains entered in that list.

Relief for increase in value of trading stock and work in progress

54

Relief from tax on chargeable gains in respect of agricultural property etc.

55

Exemption from tax on chargeable gains in respect of historic houses etc.

56

Postponement of payment of tax on chargeable gains

57

Disposal of shares and securities within prescribed period of acquisition

58

Losses on disposals of gilt-edged securities replaced within prescribed period

59

Disallowance of losses on certain disposals

60

• (1) A loss on the disposal of an asset shall not be an allowable loss to the extent to which it is attributable to value having passed out of other assets, being shares in or rights over a company which by virtue of the passing of value are treated as disposed of under paragraph 15(2) of Schedule 7 to the Finance Act 1965 (deemed disposal where person in control of company transfers value between different shares or rights).

• (2) This section applies to a loss on a disposal on or after 17th June 1975.

Disposal of rights of insured under insurance policy

61

• (1) For paragraph 10(1) of Schedule 7 to the Finance Act 1965 (policies of insurance) there shall be substituted—

(1) The rights of the insurer under any policy of insurance shall hot constitute an asset on the disposal of which a gain may accrue, whether the risks insured relate to property or not; and the rights of the insured under any policy of insurance of the risk of any kind of damage to, or the loss or depreciation of, assets shall constitute an asset on the disposal of which a gain may accrue only to the extent that those rights relate to assets on the disposal of which a gain may accrue or might have accrued.

• (2) Subsection (1) above shall be deemed to have come into force on 20th December 1974 but shall not apply in the case of a disposal made before that date.

Capital gains on certain stock dividends

62

• (1) Where a company issues any share capital to which section 34 of this Act applies in respect of shares in the company held by a person as trustee, and another person is at the time of the issue absolutely entitled thereto as against the trustee or would be so entitled but for being an infant or other person under disability (or two or more other persons are or would be jointly so entitled thereto), then—

• (a) notwithstanding sub-paragraph (1)(a)(i) of paragraph 4 of Schedule 7 to the Finance Act 1965 (reorganisation of share capital etc.), the case shall not constitute a reorganisation of the company's share capital for the purposes of that paragraph ; and

• (b) notwithstanding section 22(4)(a) of that Act, the person who is or would be so entitled to the share capital (or each of the persons who are or would be jointly so entitled thereto) shall be treated for the purposes of paragraph 4(1)(a) of Schedule 6 to the Finance Act 1965 (expenditure allowable in the computation of gains under that Schedule) as having acquired that share capital, or his interest in it, for a consideration equal to the appropriate amount in cash within the meaning of paragraph 1 of Schedule 8 to this Act.

• (2) This section shall be deemed to have come into force on 6th April 1975.

Disposals of shares in unit trusts, investment trusts and funds in court

63

In relation to gains accruing on disposals after 5th April 1975 section 112 of the Finance Act 1972 (reduction of tax liability on certain disposals of shares in unit trusts, investment trusts and funds in court) shall have effect as if for the references in paragraphs (b) and (c) of subsection (3) to 16J per cent, (which were substituted by section 32 of the Finance Act 1974) there were substituted references to 17 ½ per cent.

Reduced rate of capital gains tax for certain unit trusts and for funds in court

64

Section 113 of the Finance Act 1972 shall have effect for the year 1975-76 and subsequent years of assessment as if the rate specified in it were 17 ½ per cent, instead of 16 ½ per cent, (the rate substituted by section 33 of the Finance Act 1974).

Double taxation agreement with Republic of Ireland

65

Assignment of proceedings to Commissioners

66

Appeals

67

• (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (2) Section 50 of that Act (procedure on appeal) shall have effect, and be deemed always to have had effect, as if after subsection (7) there were added as subsection (8)—

(8) Where, on an appeal against an assessment which— (a) assesses an amount which is chargeable to tax, and (b) charges tax on the amount assessed, it appears to the Commissioners as mentioned in subsection (6) or (7) above, they may, unless the circumstances of the case otherwise require, reduce or, as the case may be, increase only the amount assessed ; and where any appeal is so determined the tax charged by the assessment shall be taken to ahve been reduced or increased accordingly.

• (3) Nothing in subsection (2) above shall affect the judgement of any court given in proceedings which were commenced before 29th April 1975.

CHAPTER II — Sub-Contractors in the Construction Industry

Introductory

68

Deductions on account of tax etc. from payments to certain sub-contractors in construction industry

69

• (1) Where a contract relating to construction operations is not a contract of employment, but—

• (a) one party to the contract is a sub-contractor (as defined in subsection (2) below); and

• (b) another party to the contract (in this section referred to as "the contractor") either is a sub-contractor under another such contract relating to all or any of the construction operations or is a person to whom this paragraph applies,

this section shall apply to any payments which on or after the appointed day are made under the contract and are so made by the contractor to—

• (i) the sub-contractor;

• (ii) a person nominated by the sub-contractor or the contractor; or

• (iii) a person nominated by a person who is a sub-contractor under another such contract relating to all or any of the construction operations,

unless the person to whom the payments are made or, if the payments are made to a nominee, each of the following persons, that is to say, the nominee, the person who nominated him and the person for whose labour (or, where that person is a company, for whose employees' or officers' labour) the payment is made, is excepted from this section in relation to those payments by virtue of section 70 of this Act.

• (2) A party to a contract relating to construction operations is a sub-contractor if, under the contract.—

• (a) he is under a duty to the contractor to carry out the operations, or to furnish his own labour (that is to say, in the case of a company, the labour of employees or officers of the company) or the labour of others in the carrying out of the operations or to arrange for the labour of others to be furnished in the carrying out of the operations ; or

• (b) he is answerable to the contractor for the carrying out of the operations by others, whether under a contract or under other arrangements made or to be made by him.

• (3) Paragraph (b) of subsection (1) above applies to the following persons, that is to say.—

• (a) any person carrying on a business which includes construction operations;

• (b) any local authority ;

• (c) any development corporation or new town commission ;

• (d) the Commission for the New Towns ;

• (e) the Housing Corporation, a housing association, a housing trust, a housing society, the Scottish Special Housing Association, the Northern Ireland Housing Trust and the Northern Ireland Housing Executive.

• (4) On making a payment to which this section applies the contractor shall deduct from it a sum equal to 35 per cent, of so much of the payment as is not shown to represent the direct cost to any other person of materials used or to be used in carrying out the construction operations to which the contract under which the payment is made relates; and the sum so deducted shall be paid to the Board and shall be treated for the purposes of income tax or, as the case may be, corporation tax—

• (a) as not diminishing the payment; but

• (b) subject to subsection (5) below, as being income tax or, as the case may be, corporation tax paid in respect of the profits or gains of the trade, profession or vocation of the person for whose (or for whose employees' or officers') labour the contractor makes the payment.

• (5) Where a sum deducted and paid to the Board under subsection (4) above is more than sufficient to discharge the liability to income tax of the person referred to in paragraph (b) of that subsection in respect of the profits or gains mentioned in that paragraph, so much of the excess as is required to discharge any liability of that person for Class 4 contributions shall be treated as being, for the purposes of the Social Security Act, Class 4 contributions paid in respect of the profits or gains so mentioned.

• (6) The Board shall make regulations with respect to the collection and recovery, whether by assessment or otherwise, of sums required to be deducted from any payments under this section and for the giving of receipts by persons receiving the payments to persons making them; and those regulations may include any matters with respect to which regulations may be made under section 204 (pay as you earn) of the Taxes Act.

• (7) References in the preferential payments provisions to sums due on account of tax deductions for any period shall be construed as including references to any amounts due from any person in respect of deductions required to be made by him under this section.

• (8) In section 98 of the Taxes Management Act 1970 (penalty for failure to furnish information, etc.) the following shall be added in the second column of the Table:—

Regulations under section 69 of the Finance (No. 2) Act 1975

.

• (9) Regulations under this section shall be made by statutory instrument which shall be subject to annulment in pursuance of a resolution of the House of Commons.

• (10) In this section "Class 4 contributions" means Class 4 contributions within the meaning of the Social Security Act 1975 or, as the case may be, the Social Security (Northern Ireland) Act 1975 ; and " the Social Security Act" means whichever of those Acts is the one under which the contribution in question is payable.

Exceptions from section 69

70

• (1) A person is excepted from section 69 of this Act in relation to payments made under a contract if a certificate under this section has been issued to that person and is in force when the payment is made, but—

• (a) where the certificate has been issued to a person who becomes a partner in a firm, that person is not excepted in relation to payments made under contracts under which the firm or, where a person has nominated the firm to receive payments, the person who has nominated the firm, is a sub-contractor (as defined in section 69(2) of this Act); and

• (b) where a certificate has been issued to a person as a partner in a firm, that person is excepted in relation only to payments made under contracts under which the firm or, where a person has nominated the firm to receive payments, the person who has nominated the firm, is a sub-contractor (as so defined).

• (2) If the Board are satisfied, on the application of an individual or a company, that—

• (a) where the application is for the issue of a certificate to an individual (otherwise than as a partner in a firm), he satisfies the conditions set out in Part I of Schedule 12 to this Act;

• (b) where the application is for the issue of a certificate to a person as a partner in a firm, that person satisfies the conditions set out in Part II of that Schedule if he is an individual or, if a company, the conditions set out in Part IV of that Schedule and, in either case, the firm itself satisfies the conditions set out in Part III of that Schedule;

• (c) where the application is for the issue of a certificate to a company, the company satisfies the conditions set out in Part IV of that Schedule and, if the Board have given a direction under subsection (4) below, each of the persons to whom any of the conditions set out in Part I of that Schedule applies by virtue of the direction satisfies the conditions which so apply to him,

the Board shall issue to that individual or company a certificate excepting that individual or company (or, in a case falling within paragraph (b) above, that individual or company as a partner in the firm specified in the certificate) from section 69 of this Act.

• (3) References in paragraphs (a), (b) and (c) of subsection (2) above to an individual, a company or a firm satisfying conditions set out in any Part of Schedule 12 to this Act include, in relation to a condition which may, by virtue of a provision in that Part, Be treated as being satisfied, references to that individual, company or firm being treated as satisfying that condition.

• (4) Where it appears to the Board, on an application made under subsection (2) above by a company, that the company—

• (a) was incorporated on a date within the period of three years ending with the date of the application; or

• (b) has not carried on business continuously throughout that period; or

• (c) has carried on business continuously throughout that period but the business has not at all times in that period consisted of or included the carrying out of construction operations; or

• (d) does not at the date of the application hold a certificate which is then in force under this section;

the Board may direct that the conditions set out in Part I of Schedule 12 to this Act or such of them as are specified in the direction shall apply to the directors of the company and, if the company is a close company, to the persons who are the beneficial owners of shares in the company or to such of those directors or persons as are so specified as if each of them were an applicant for a certificate under this section.

• (5) The Board may at any time cancel a certificate which has been issued to a person and is in force under this section if it appears to them that—

• (a) it was issued on information which was false;

• (b) if an application for the issue of a certificate under this section to that person were made at that time, the Board would refuse to issue a certificate ; or

• (c) that person has permitted the certificate to be misused;

and may by notice in writing require that person to deliver the certificate to the Board within the time specified in the notice.

• (6) A person aggrieved by the refusal of an application for a certificate under this section may, by notice in writing given to the Board within thirty days after the refusal, appeal to the General Commissioners or, if he so elects in the notice, to the Special Commissioners; and the jurisdiction of the Commissioners on such an appeal shall include jurisdiction to review any relevant decision taken by the Board in the exercise of their functions under this section other than a decision that an individual, a company or a firm is or is not to be treated as satisfying a condition set out in any Part of Schedule 12 to this Act.

• (7) The Board may make regulations—

• (a) prescribing the period for which certificates under this section are to be issued and the form of such certificates;

• (b) providing for the renewal of such certificates;

• (c) providing for the issue, renewal or cancellation of such certificates or the giving of directions under subsection (4) above by inspectors on behalf of the Board ;

• (d) requiring the production of such certificates to such persons and in such circumstances as may be specified in the regulations and providing for the completion and return to the Board of forms certifying such production ;

• (e) requiring the surrender to the Board of such certificates in such circumstances as may be specified in the regulations;

• (f) requiring persons who make payments under contracts relating to construction operations to keep such records and to make to the Board such returns relating to payments so made by them as may be specified in the regulations, and requiring persons who hold such certificates to keep such records relating to payments so made to them as may be so specified; and

• (g) requiring vouchers for payments made under contracts relating to construction operations to persons who hold such certificates to be obtained by the person making, and given by the person receiving, the payment, prescribing the form of the vouchers, and requiring their production or surrender to the Board in such circumstances as may be specified in the regulations ;

and any such regulations may make different provision for different circumstances.

• (8) Regulations under subsection (7) above shall be made by statutory instrument which shall be subject to annulment in pursuance of a resolution of the House of Commons.

• (9) If any person, for the purpose of obtaining a certificate under this section—

• (a) makes any statement, or furnishes any document, which he knows to be false in a material particular; or

• (b) recklessly makes any statement, or furnishes any document, which is false in a material particular,

he shall be liable on summary conviction to a fine not exceeding £5,000.

• (10) A person to whom a certificate is issued under this section or a voucher is given as required by regulations under subsection (Dig) above shall take all reasonable steps to ensure its safety; and any person who, without lawful authority or lawful excuse—

• (a) disposes of any such certificate or voucher or any form supplied by the Board in connection with regulations made by virtue of subsection (1)(d) above ; or

• (b) possesses such a certificate, voucher or form or any document purporting to be such a certificate, voucher or form,

shall be liable on summary conviction to a fine not exceeding £5,000.

• (11) Notwithstanding any enactment prescribing the period within which summary proceedings may be commenced, proceedings for an offence under subsection (9) or (10) above may be commenced at any time within three years from the commission of the offence.

• (12) In section 98 of the Taxes Management Act 1970 (penalty for failure to furnish information etc.) there shall be added—

• (a) in the first column of the Table, the words " Section 70(5) of the Finance (No. 2) Act 1975."; and

• (b) in the second column of the Table, the words "Regulations under section 70(7) of the Finance (No. 2) Act 1975.".

Interpretation of Chapter II

71

• (1) The following provisions of this section shall have effect for the interpretation of this Chapter.

• (2) " Authorised insurer " means a person or body of persons lawfully carrying on in Great Britain insurance business of any class relevant for the purposes of Part I of the Insurance Companies Act 1974 or in Northern Ireland insurance business of any class relevant for the purposes of the Insurance Companies Act (Northern Ireland) 1968.

• (3) " Development corporation " has the same meaning as in the New Towns Act 1965 or the New Towns (Scotland) Act 1968, " housing association " has the same meaning as in the Housing Act 1957, the Housing (Scotland) Act 1966 or section 12 of the Housing and Local Government (Miscellaneous Provisions) Act (Northern Ireland) 1946, "housing trust" has the same meaning as in the Housing Act 1957, " housing society " has the same meaning as in Part I of the Housing Act 1964, and " new town commission " has the same meaning as in the New Towns Act (Northern Ireland) 1965.

• (4) "Director" has the same meaning as in Chapter II of Part VIII of the Taxes Act.

• (5) References to the making of payments under a contract relating to construction operations include references to the lending of money in circumstances in which the lending of the money has the effect of discharging any obligation under the contract.

• (6) " The preferential payments provisions " means section 30 of the Finance Act 1952, section 287 of the Companies Act (Northern Ireland) 1960 and section 1(1) of the Preferential Payments (Bankruptcies and Arrangements) Act (Northern Ireland) 1964.

• (7) References to relevant public liability in respect of the business of an individual, a firm or a company carrying out any description of construction operations are references to any liability—

• (a) which may be incurred by the individual, firm or company in respect of bodily injury or disease sustained in the United Kingdom by any person (other than that individual or the partners in that firm, as the case may be); and

• (b) which arises from the carrying out of that description of construction operations in the course of that business;

but not to a liability in respect of which the individual, firm or company is required to maintain insurance under the Employers' Liability (Compulsory Insurance) Act 1969 or Part VI of the Road Traffic Act 1972 or (in Northern Ireland) under Part V of the Road Traffic Act (Northern Ireland) 1970 or Part III of the Employers' Liability (Defective Equipment and Compulsory Insurance) (Northern Ireland) Order 1972.

• (8) " Construction operations" means operations of any description specified in Part I of Schedule 13 to this Act, not being operations of any description specified in Part II of that Schedule; and references to construction operations shall be taken—

• (a) except where the context otherwise requires, as including references to the work of individuals participating in the carrying out of such operations ; and

• (b) except in the case of offshore installations (within the meaning of the said Part I), as not including references to operations carried out or to be carried out otherwise than in the United Kingdom.

• (9) The Treasury may by order made by statutory instrument—

• (a) include in Part I of Schedule 13 to this Act any description of operations as to which they are satisfied that it is a normal activity of the construction industry and that its inclusion in that Part of the Schedule is necessary for achieving the object of section 69 of this Act;

• (b) include in Part II of that Schedule any description of operations as to which they are satisfied that it cannot properly be considered a normal activity of the construction industry and ought to be excluded from Part I of that Schedule.

• (10) An order under this section shall not have effect unless a draft thereof has been laid before and approved by the House of Commons.

Part IV — Miscellaneous and General

Extension of Finance Act 1973 s. 50 to stamp duties in Northern Ireland

72

Section 50 of the Finance Act 1973 (temporary statutory effect of House of Commons resolution affecting stamp duties) shall extend to Northern Ireland and apply to stamp duties having effect there as well as to stamp duties having effect in Great Britain.

Government stock held by minors

73

• (1) Where the holder of any of the joint holders of Government stock is a minor the Registrar of Government Stock may, if he thinks fit, but subject to subsection (2) below—

• (a) pay the dividends accruing on the stock in accordance with the written instructions of a parent or guardian of the minor or minors;

• (b) pay any redemption money becoming payable in respect of the stock in accordance with the written instructions of the minor or minors and a parent or guardian of his or each of them;

• (c) give effect to a transfer of the stock in accordance with the written instructions of the minor or minors and a parent or guardian of his or each of them;

(and, in each case, of every other joint holder who is not a minor).

• (2) The Registrar of Government Stock shall not exercise any power conferred on him by paragraph (b) or (c) of subsection (1) above unless the Registrar of Government Stock is satisfied that the minor has attained the age of seven years.

• (3) Where the Registrar of Government Stock makes a payment or effects a transfer in accordance with this section and the instructions given under it, then—

• (a) in the case of a payment, the payment shall discharge the Registrar of Government Stock of his liabilities in respect of the dividend which has accrued or redemption money which has become payable on the stock;

• (b) in the case of a transfer, the transfer shall not be revocable at the instance of the minor (except in circumstances in which it would be revocable at the instance of a person who was not a minor);

and no other liability arising out of the payment or transfer shall be incurred by the Registrar of Government Stock to any person.

• (4) In this section—

• “Government stock” means securities of any description issued by the Government of the United Kingdom and registered by the Registrar of Government Stock; and

• ...

and references in subsection (1) above to the instructions of a guardian are, in a case where there are joint guardians, references to the joint instructions of those guardians.

• (4A) In the case of units of stock which are recorded on a register kept by the Operator of a relevant system—

• (a) the reference to the “Registrar of Government Stock in subsection (1) so far as it relates to paragraph (c) of that subsection; and

• (b) the references tot he “Registrar of Government Stock in subsections (2) and (3) so far as they apply for the purposes of that paragraph,

shall be taken to be reference to that Operator; and in this subsection “Operator” and “relevant system” have the same meanings as in the Uncertificated Securities Regulations 2001.

• (5) This section shall not apply to a pupil or minor domiciled in Scotland.

Use of trustee savings banks by solicitors for clients' money etc.

74

The Solicitors Act 1974 shall have effect, and be deemed always to have had effect, as if in the definition of “bank” in section 87(1) there were inserted at the end of paragraph (b) the words

and (c) a trustee savings bank within the meaning of section 3 of the Trustee Savings Banks Act 1969

.

Citation, interpretation, construction and repeals

75

• (1) This Act may be cited as the Finance (No. 2) Act 1975.

• (2) In this Act “the Taxes Act” means the Income and Corporation Taxes Act 1970; . . .

• (3) In this Act—

• (a) Part I, except sections 2 to 6, shall be construed as one with the Customs and Excise Act 1952;

• (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (c) Part III, so far as it relates to income tax, shall be construed as one with the Income Tax Acts, so far as it relates to corporation tax shall be construed as one with the Corporation Tax Acts . . .

• (4) Except so far as the context otherwise requires, any reference in this Act to any enactment shall be construed as a reference to that enactment as amended, and as including a reference to that enactment as applied, by or under any other enactment, including this Act.

• (5) The enactments mentioned in Schedule 14 to this Act (Part IV of which includes certain enactments which had ceased to have effect before the commencement of this Act) are hereby repealed to the extent specified in the third column of that Schedule, but subject to any provision at the end of any Part of that Schedule.

SCHEDULES 1—2

I — Provisions Substituted for Part II of Schedule 1

II — Provisions Substituted for Part II of Schedule 2

III — Provisions Substituted for Part II of Schedule 3

IV — Provisions Substituted in Part II of Schedule 4 Tables Showing Annual Rates of Duty on Goods Vehicles

V — Provisions Substituted for Part II of Schedule 5

SCHEDULE 2

I — Provisions Substituted for Part II of Schedule 1

II — Provisions Substituted for Part II of Schedule 2

III — Provisions Substituted for Part II of Schedule 3

IV — Provisions Substituted for Part II of Schedule 4 Tables Showing Annual Rates of Duty on Goods Vehicles

V — Provisions Substituted for Part II of Schedule 5

SCHEDULE 3

PART I — Amendments Connected with Conversion op Certain Revenue Duties

General adaptation of enactments

1

• (1) Subject to the following provisions of this Schedule and save where the context otherwise requires, any reference in the customs Acts or excise Acts or in any instrument of a legislative character made thereunder which is in force at the end of 1975 and any reference in any other Act then in force to a duty or duties of customs (and any reference to duty or customs in so far as it is a reference to a duty or duties of customs) not being a reference to a Community customs duty shall, after the end of 1975, be taken to be a reference to, or to so much of, a duty or duties (whether expressed to be of customs or excise) for the time being chargeable on goods imported into the United Kingdom and any reference in those Acts or instruments to, or which is to be construed as a reference to, customs drawback, customs charge or customs clearance shall be construed accordingly.

• (2) Subject to the following provisions of this Schedule and save where the context otherwise requires, any reference in the customs Acts or excise Acts or in any instrument of a legislative character made thereunder which is in force at the end of 1975 and any reference in any other Act then in force to a duty or duties of excise (and any reference to duty or excise in so far as it is a reference to a duty or duties of excise) being a reference to a duty or duties chargeable on goods shall, after the end of 1975, be taken to be a reference to, or to so much of, a duty or duties for the time being chargeable on goods produced or manufactured in the United Kingdom and any reference in those Acts or instruments which is to be construed as a reference to excise drawback shall be construed accordingly.

2

Subject to paragraphs 16 to 22 below, any reference in the Hydrocarbon Oil (Customs & Excise) Act 1971 to the duty of excise on hydrocarbon oil (and any reference to duty in so far as it is a reference to the duty of excise on such oil) shall, after the end of 1975, be taken to include a reference to any excise duty for the time being chargeable on hydrocarbon oil imported into the United Kingdom.

Specific amendments

3

In section 103(5) of the Act of 1952 (amount of drawback on British compounds and spirits Of wine), after the words "the date when " insert the word " excise ".

4

In section 109(1)(a) of the Act of 1952 (immature spirits may be delivered for home use if allowed to be delivered without payment of duty), after the words " payment of " insert the word " excise ".

5

In section 111(1) and section 122 of the Act of 1952 (which provide for remission of duty on spirits in certain cases by reference to the duties of customs and excise), for paragraphs (a) and (b) substitute the words " without payment of the excise duty chargeable thereon " and omit the proviso to section 111(1).

6

In section 112(1) of the Act of 1952 (repayment of duty on spirits used for medical or scientific purposes), after the words " spirits on which " insert the word " excise ".

7

In section 113(1)(a) of the Act of 1952 (imported mixtures on which duty charged at reduced rate not to be used for other than medical or scientific purposes without permission), for the words " been charged with duty at a reduced rate " substitute the words " been relieved to any extent of the excise duty chargeable ".

8

In section 222(1) of the Act of 1952 (provisions as to components of mechanical lighters and other matters relating to duty on such lighters), for the words " provision of the excise Acts relating to the excise duty on mechanical fighters " substitute the words " duty of excise on mechanical lighters imported into or manufactured in the United Kingdom ".

9

In section 263(3) of the Act of 1952 (relief from duty where certain materials for use by a brewer have been destroyed or become spoilt or unfit for use), before the word " duty " in both places where it occurs insert the word " excise ".

10

In section 309(4) (certain products of Isle of Man removed to United Kingdom chargeable with customs duty as if imported if not or not fully charged with customs duty in Island), in paragraph (b) after the word " customs " in both places where it occurs insert the words " or excise ".

11

In section 310(1) (restriction on removal to United Kingdom of Isle of Man goods not or not fully charged with customs duty in Island) after the words " customs duty " wherever occurring insert the words " or excise duty ".

12

In section 3(3) of the Finance Act 1953 (definition of prescribed component of mechanical lighters in absence of definition under the said section 222), for the words from " the said " to " applied by this section " substitute the words " section 222 of the Customs and Excise Act 1952 in its application to the duty of excise on mechanical lighters imported into the United Kingdom ".

13

In section 3 of the Import Duties Act 1958, subsections (1) to (3) (import duties not generally to be imposed on goods subject to customs duty) shall be omitted.

14

In section 2(4) of the Isle of Man Act 1958 (meaning of " equal duties " for the purposes of sharing arrangements), after the word " customs" wherever occurring in paragraphs (a) and (b) insert the words " or excise ".

15

In section 6(1) of the Finance Act 1970 (exemption of angostura bitters from spirits duty), for the words "section 1 of the Finance Act 1964 (duties of customs and excise duty on spirits)" substitute " the charge of excise duty on spirits ".

16

In section 4(2) of the Hydrocarbon Oil (Customs & Excise) Act 1971 (time and rate of charge of customs duty on hydrocarbon oil removed to refinery) (which Act is hereinafter referred to as " the 1971 Act "), for the word " customs " substitute the word " excise ".

17

In section 6 of the 1971 Act (excise duty on hydrocarbon oil and on petrol substitutes and spirits for power methylated spirits), for the words " duty of customs charged under section 4 above " substitute the words " duty of excise on hydrocarbon oil ".

18

In section 8(3) of the 1971 Act (penalty for misuse of duty-free hydrocarbon oil), for the word " customs" substitute the word " excise ".

19

In section 15(1) of the 1971 Act (relief for heavy oil used by horticultural producers), before the word " duty " insert the word " excise ".

20

In section 16 of the 1971 Act (relief for fuel for ships in home waters), in subsections (1) and (2), before the word " duty " insert the word " excise ".

21

In section 17 of the 1971 Act (relief for fuel used in fishing boats, etc.), in subsection (3), before the word " duty " insert the word " excise ".

22

In Schedule 3 to the 1971 Act (regulations about hydrocarbon oil), in paragraphs 8 and 9, for the word " customs" substitute the word " excise " and in paragraphs 10 and 11, after the words " excise duty " insert the words " chargeable on hydrocarbon oil produced in the United Kingdom ".

23

For section 27(1) of the Finance Act 1972 (supply in warehouse of goods subject to customs duty to be disregarded for purposes of value added tax) substitute the following—

(1) Where imported goods subject to a duty of customs or excise or a duty of customs and a duty of excise are supplied while warehoused, the supply shall be disregarded for the purposes of this Part of this Act if the goods are supplied before payment of the duty to which they are subject or, where they are subject to a duty of customs and a duty of excise, of the duty of excise.

24

In section 57(3) of the Finance Act 1972 (duty not payable on spirits in articles for medical purposes), before the word " Duty " at the beginning of the subsection insert the word " Excise ".

PART II — Amendments Relating to Certain Revenue Duties

25

In section 105(1) of the Act of 1952 (restrictions on carrying on of other trades by distiller or rectifier), for the words "maker of British wine or " substitute the words " producer of wine or of made-wine, maker of ".

26

In section 137(1) of the Act of 1952 (relief for beer in certain cases), after the words " drawback shall be allowable" insert the words " on. the removal to a warehouse on the premises of a licensed producer of made-wine or ".

27

For section 140 of the Act of 1952 (power to regulate making or rendering sparkling of British wine, etc.) substitute the following section—

(140) (1) The Commissioners may with a view to managing the excise duties on wine and made-wine produced in the United Kingdom for sale make regulations— (a) regulating the production of wine and made-wine for sale and the issue, renewal and cancellation of excise licences therefor ; (b) for determining the duty and the rates thereof and in that connection prescribing the method of charging the duty ; (c) prohibiting or restricting the use of wine in the production of made-wine ; (d) for securing and collecting the duty ; (e) for relieving wine or made-wine from excise duty in such circumstances and to such extent as may be prescribed in the regulations. (2) If any person fails to comply with any regulation made under this section, he shall be liable to a penalty of £50 and any article in respect of which the offence was committed shall be liable to forfeiture.

28

Section 141 of the Act of 1952 (method of charging excise duty on British wine) shall be omitted.

29

In section 142 of the Act of 1952 (fortification of British wine in warehouse)—

• (a) in subsection (1), for the words from "with" to "duty-free spirits " substitute the words " in warehouse with made-wine (whether imported into or produced in the United Kingdom) of spirits which are free of excise duty "; and

• (b) subsection (2) shall be omitted.

30

Section 143 of the Act of 1952 (wine to be imported only at approved ports) shall be omitted.

31

In section 144 of the Act of 1952 (fortification of imported wine in warehouse)—

• (a) in subsection (1), for the words " with wine in warehouse " substitute the words " in warehouse with wine (whether imported into or produced in the United Kingdom) "; and

• (b) subsection (2) shall be omitted.

32

In section 145 of the Act of 1952 (rendering imported wine sparkling in warehouse) the following amendments shall be made, that is to say—

• (a) subsections (1) and (2) shall be omitted ;

• (b) in subsection (3), for the words "Wine shall not" substitute the words " Neither imported wine nor imported made-wine shall " and for the words " under subsection (1) of this section ", substitute the words " in accordance with regulations under section 16(2) of the Finance (No. 2) Act 1975 ";

• (c) in subsection (4), paragraph (a) shall be omitted;

• (d) in subsection (5), for the word " wine " where first occurring substitute the words " imported wine and imported made-wine ", for the words " otherwise than as permitted under this section" substitute the words " in contravention of subsection (4) above ", after the words " including wine" insert the words " or made-wine " and after the words " any wine " insert the words " or made-wine ".

33

In section 146(3) of the Act of 1952 (certain wholesale dealing in intoxicating liquors allowed without licence), for the words " maker of British wine " substitute the words " licensed producer of wine or of made-wine ".

34

In section 168 of the Act of 1952 (reduced duty on certain part-year licences), for the words " maker of British wine " substitute the words " producer of wine or made-wine ".

35

In section 169(2) of the Act of 1952 (relief from licence duty on permanent discontinuance of certain trades), for the words " maker of British wine " substitute the words " producer of wine or of made-wine ".

36

In section 170(1) of the Act of 1952 (payment by instalments of duty on licence for certain trades), for the words " maker of British wine " substitute the words " producer of wine or of made-wine or ".

37

In section 172(6) of the Act of 1952 (application of provisions of that section for ascertaining alcoholic strength etc. to fermented liquors), at the end add " but, in relation to wine or made-wine, shall not apply so as to prevent the strength, weight or volume of wine or made-wine from being ascertained for the purpose of charging duty thereon by methods other than that provided in this section ".

38

In section 221(1)(d) of the Act of 1952 (regulations may allow delivery of complete or incomplete mechanical lighters free of excise duty), for the words " without payment of any duty of excise " substitute the words " imported into or manufactured in the United Kingdom without payment of the excise duty ".

39

In section 248(2) of the Act of 1952 (entry upon premises of excise traders), for the words " maker of British wine " substitute the words " producer of wine or made-wine ".

40

In section 249(5) of the Act of 1952 (excise traders subject to power of search for concealed pipes etc.), for the words " makers of British wine " substitute the words " producers of wine or made-wine ".

41

In section 253(3) of the Act of 1952 (power of distraint for duty unpaid by excise traders), for the words "maker of British wine " substitute the words " or licensed producer of wine or made-wine ".

42

In section 263(4) of the Act of 1952 (relief from duty where certain liquors are spoilt or unfit for use), for the words "or British wine " wherever occurring substitute the words " wine or made-wine ", for the words " maker of British wine " substitute the words " licensed producer of wine or of made-wine ", for the words " or maker " substitute the words " or producer " and before the word " duty " insert the word " excise ".

43

In section 295(2) of the Act of 1952 (procedure and status of sample taken from certain excise traders), for the words " maker of British wine " substitute the words " or producer of wine or of made-wine ".

44

In section 307(1) of the Act of 1952 (definitions), the following amendments shall be made, that is to say—

• (a) the definitions of " British wine " (that is, " sweets ") and " maker of British wine " shall be omitted ;

• (b) for the definition of " wine " substitute a definition in terms of section 14(5) of this Act;

• (c) for the definition of " perfect entry" substitute the following—

• " perfect entry " means an entry made in accordance with section 28 of this Act or regulations made under section 16(2) of the Finance (No. 2) Act 1975, as the case may require ;

• (d) in the appropriate places in alphabetical order insert the following definitions, namely—

• (i) definitions of " made-wine " and of " non-excisable cider " in terms of section 15(6) of this Act; and

• (ii) " producer of wine " and " producer of made-wine " include respectively a person who renders wine or made-wine sparkling and " produce ", in relation to wine or made-wine, shall be construed accordingly and " licensed ", in relation to a producer of wine or of made-wine, means a producer who holds a licence to produce wine or made-wine under subsection (2) of section 14 or 15 respectively of the Finance (No. 2) Act 1975.

45

In section 199(1) of the Licensing (Scotland) Act 1959 (definitions for the purposes of that Act), in the definition of "excisable liquor " for the word " sweets " (that is, British wine) substitute the word " made-wine ", omit the definition of " sweets " and in the appropriate places in alphabetical order insert the following definitions—

• " made-wine " means made-wine within the meaning of the Customs and Excise Act 1952 ;
• " wine " means wine within the meaning of the Customs and Excise Act 1952.

46

In Part VI of Schedule 4 to the Weights and Measures Act 1963 and in Part VI of Schedule 2 to the Weights and Measures Act (Northern Ireland) 1967 (regulation of selling etc. of intoxicating liquor), in paragraph 1 after the word " beer " insert the word " and " and omit the words " wine and British wine " and at the end of that paragraph add the words " and ' wine' and ' British wine ' have the same meanings respectively as they had for the purposes of that Act immediately before the end of 1975.

47

In section 201(1) of the Licensing Act 1964 (definitions for the purposes of that Act), for the definition of "wine" (added by Schedule 7 to the Finance Act 1967) substitute the following definition—

• " wine " means wine within the meaning of the Customs and Excise Act 1952 and made-wine within the meaning of that Act.

SCHEDULE 4

SCHEDULE 5

SCHEDULE 6

1

In section 34(2)(b) of the Act of 1952 (rate of duty on imported goods entered for warehousing to be ascertained as provided in section 88) for the words " as provided in section 88 of this Act" substitute the words " in accordance with regulations under section 16(2) of the Finance (No. 2) Act 1975

2

In section 38 of the Act of 1952 (right to warehouse goods without payment of duty) after the word "allowed" insert the words " subject to such conditions or restrictions as may be imposed by or under regulations made under section 16(2)(a) of the Finance (No. 2) Act 1975 ".

3

In section 80(1) of the Act of 1952 (approval of warehouses for keeping goods subject to conditions) omit the following words, that is to say—

• (a) in paragraph (a) the words from " subject" to " impose " ;

• (b) in paragraphs (b) and (e), the words from " subject" to " as aforesaid " ;

and after paragraph (e) insert the words " subject to and in accordance with regulations under section 16(2) of the Finance (No. 2) Act 1975. "

4

In section 92(2) of the Act of 1952 (general offences relating to warehoused goods), in paragraph (b), after the word " Act" insert the words " or by or under regulations under section 16(2) of the Finance (No. 2) Act 1975. "

5

In section 101 of the Act of 1952 (penalty for excess or deficiency of stock), in subsection (3), after the word " section " insert the words " spirits used by a rectifier in warehouse in pursuance of regulations made under section 16(2)(c) of the Finance (No. 2) Act 1975 shall be deemed not to be spirits in his stock as a rectifier and " and after the word " possession " insert the words " (other than spirits so used) ".

6

In section 102 of the Act of 1952 (restrictions on use of spirits by rectifiers) after subsection (4) insert the following subsection—

(5) Spirits used in warehouse in pursuance of regulations made under section 16(2)(c) of the Finance (No. 2) Act 1975 shall be treated for the purposes of this section as spirits on which duty has been duly paid

.

7

In section 104(3) of the Act of 1952 (exclusion of allowance under that section on British compounded spirits) after the word " section " insert the words " if those spirits were compounded in warehouse in pursuance of regulations made under section 16(2)(c) of the Finance (No. 2) Act 1975 or, in any other case, ".

8

In section 109(1) of the Act of 1952 (immature spirits not to be delivered for home use except in certain cases) after proviso (h) add the following proviso—

(i) to spirits compounded in warehouse in pursuance of regulations made under section 16(2)(c) of the Finance (No. 2) Act 1975.

SCHEDULE 7

GROUP 1—DOMESTIC APPLIANCES

Item No.

1

Goods of a kind suitable for domestic use which are operated by electricity or, in the case of horticultural appliances, by electricity or by an internal combustion engine, except—

• (a) boiling rings, ovens, ranges and stoves ;

• (b) space heaters;

• (c) appliances for water heating ordinarily installed as fixtures ;

• (d) light fittings and torches;

• (e) telephones of a kind supplied by the Post Office and ancillary equipment of a kind so supplied;

• (f) tools of a kind used wholly or mainly for carpentry, metalwork Or masonry work ;

• (g) clocks, watches and timing devices ;

• (h) mechanical lighters ;

• (i) hearing aids;

• (j) goods suitable for domestic use as, and only as, parts of goods (whether operated by electricity or not) of a kind mentioned in paragraphs (a) to (i) ;

• (k) goods within Group 2 or Group 5.

2

Refrigerators and freezers of a kind suitable for domestic use, not being goods within Item 1.

3

Accessories to goods within Item 1 or Item 2.

4

Accessories to goods excepted from Item 1 by paragraph (f) of that Item, if the accessories are for horticultural use.

5

Goods of a kind suitable for use as parts of goods comprised in Items 1 to 4, except—

• (a) nuts, bolts, screws, screw caps, nails, washers, rivets, split pins, press studs, buckles, hose fittings, tube fittings, springs, bushes and bearings;

• (b) hinges, brackets, latches, catches, locks and keys;

• (c) electric batteries, fuses, mains plugs, electric filament light bulbs and fluorescent tubes;

• (d) wheels (other than steering wheels), castors and tyres and parts of such goods ;

• (e) goods of a kind used mainly as parts of engines for road vehicles;

• (f) sewing machine needles.

6

The installation, alteration, testing, repair or maintenance of, or the provision of similar services in respect of, goods comprised in Items 1 to 5.

7

The supply of goods in connection with a supply of services within Item 6.

Notes:

GROUP 2—RADIO AND TELEVISION SETS, ETC.

Item No.

1

Goods of a kind suitable for domestic or recreational use which are, or are capable of use as, goods within the following paragraphs—

• (a) television sets;

• (b) radio receivers or transmitters ;

• (c) gramophones or tape recorders ;

• (d) electronic musical instruments.

2

Microphones, radio-tuners, turntables, amplifiers, loudspeakers and other goods capable of use as components of goods within Item 1, being of a kind suitable for domestic or recreational use.

3

Combinations of goods within Item 2.

4

Accessories to goods comprised in Items 1 to 3.

5

Goods of a kind suitable for use as parts of goods comprised in Items 1 to 4, except goods within the exceptions from Item 5 of Group 1.

6

The installation, alteration, testing, repair or maintenance of, or the provision of similar services in respect of, goods comprised in Items 1 to 5.

7

The supply of goods in connection with a supply of services within Item 6.

Notes:

GROUP 3—BOATS AND AIRCRAFT

Item No.

1

Boats—

• (a) of a gross tonnage of less than 15 tons; or

• (b) designed for use for recreation or pleasure;

except boats which are of a kind used solely as liferafts and comply with the requirements of the rules for the time being in force under section 427 of the Merchant Shipping Act 1894 in relation to liferafts.

2

Boats adapted for use for recreation or pleasure.

3

Aircraft—

• (a) of a weight of less than 8,000 kilogrammes ; or

• (b) designed or adapted for use for recreation or pleasure.

4

Hovercraft designed or adapted for use for recreation or pleasure.

5

The following accessories to goods within Item 1 or Item 2, namely—

• (a) outboard motors and other engines ;

• (b) electricity generators;

• (c) sails ;

• (d) compasses, echo sounders, radar sets, logs, wind speed, wind direction and boat speed indicators, and other navigational and meteorological instruments and recorders ;

• (e) automatic pilots and automatic steering gear ;

• (f) trailers and trolleys.

6

Goods of a kind suitable for use as parts of goods within Item 1 or Item 5, except goods within the exceptions from Item 5 of Group 1.

7

Parts of aircraft which are of a weight of less than 8,000 kilogrammes and of a kind used for recreation or pleasure, except parts within the exceptions from Item 5 of Group 1.

8

The alteration, testing, repair or maintenance of, or the provision of similar services in respect of, goods within Item 1, Item 5 or Item 6.

9

The supply of materials or parts in connection with a supply of services within Item 8.

10

The classification or surveying of, or the making of arrangements for the supply of, goods comprised in Items 1 to 5.

Notes:

GROUP 4—CARAVANS

Item No.

1

Caravans suitable for use as trailers drawn by motor vehicles having an unladen weight of less than 2,030 kilogrammes.

2

Caravan units designed to be mounted and carried on, and de-mounted from, motor vehicles.

3

Goods of a kind suitable for use as parts of goods within Item 1 or Item 2, except goods within the exceptions from Item 5 of Group 1.

4

The alteration, repair or maintenance of, or the provision of similar services in respect of, goods comprised in Items 1 to 3

5

The supply of materials or parts in connection with a supply of services within Item 4.

6

The making of arrangements for the supply of goods within Item 1 or Item 2.

Notes:

GROUP 5—PHOTOGRAPHIC EQUIPMENT, BINOCULARS, ETC.

Item No.

1

Goods within the following paragraphs if they are of a kind suitable for domestic or recreational use—

• (a) photographic and cinematographic cameras ;

• (b) apparatus for developing, printing, reproducing, enlarging, reducing, editing or otherwise processing photographic or cinematographic images on film, plates or paper;

• (c) cinematographic, film strip or slide projectors, slide viewers, epidiascopes, projector screens and other apparatus for viewing photographic or cinematographic images.

2

Binoculars, monoculars, field glasses, opera glasses and terrestrial telescopes.

3

Accessories to goods comprised in Items 1 and 2.

4

Goods of a kind suitable for use as parts of goods comprised in Items 1 to 3, except goods within the exceptions from Item 5 of Group 1.

5

The installation, alteration, testing, repair or maintenance of, or the provision of similar services in respect of, goods comprised in Items 1 to 4.

6

The supply of goods in connection with a supply of services within Item 5.

Notes:

GROUP 6—FURS

Item No.

1

Clothing made wholly or partly of fur skin, except—

• (a) headgear;

• (b) gloves;

• (c) footwear;

• (d) buttons, belts and buckles;

• (e) any garment merely trimmed with fur skin unless the trimming has an area greater than one-fifth of the area of the outside material or, in the case of a new garment, represents a cost to the manufacturer greater than the cost to him of the other components.

2

Rugs made wholly or partly of fur skin.

3

Fur skin, whether or not tanned or dressed.

4

The application to goods comprised in Items 1 to 3 of any process or treatment, except the cleaning of goods comprised in Items 1 and 2.

5

The supply of goods in connection with a supply of services within Item 4.

6

The storage of goods comprised in Items 1 to 3.

Notes:

GROUP 7—JEWELLERY, GOLDSMITHS' AND SILVERSMITHS' WARES, ETC.

Item No.

1

Jewellery, goldsmiths' and silversmiths' wares and similar goods made (in each case) wholly or partly from—

• (a) precious metal;

• (b) precious stones;

• (c) semi-precious stones mounted, set or strung ;

• (d) real or cultured pearls.

2

Precious stones, except—

• (a) uncut diamonds;

• (b) diamond powder or dust.

3

Semi-precious stones in the form of gems, jewels or beads.

4

Real or cultured pearls.

5

Jade and articles of jade.

6

The design or valuation of, the application of any process or treatment to, or the provision of similar services in respect of, goods comprised in Items 1 to 5.

7

The supply of goods in connection with a supply of services within Item 6.

Notes:

GROUP 8—PETROL, ETC.

Item No.

1

Light oil, except where it is in containers not exceeding 20 fluid ounces and is intended for sale in those containers solely as fuel for mechanical lighters.

2

Petrol substitute.

3

Power methylated spirits.

Notes:

SCHEDULE 8

Meaning of " the appropriate amount in cash "

1

• (1) Where a company issues any share capital to which the principal section applies (in this paragraph called " the share capital in question "), any reference in the principal section or this Schedule to " the appropriate amount in cash " shall, in relation to that share capital, have the meaning given by sub-paragraph (2) or (3) below, as the case may be.

• (2) Subject to sub-paragraph (3) below, where the company issues the share capital in question—

• (a) in consequence of the exercise of an option such as is mentioned in subsection (1)(a) of the principal section; or

• (b) in a quantity which is determined by or determines the amount of a dividend in cash payable in respect of share capital in the company of a different class,

" the appropriate amount in cash " means the amount of the relevant cash dividend or, in a case in which subsection (3) of the principal section applies, a due proportion of that amount.

• (3) In any case not falling within sub-paragraph (2)(a) or (b) above, and in any case so falling in which the amount of the relevant cash dividend is substantially greater or substantially less than the market value of the share capital in question on the relevant date, " the appropriate amount in cash " means the market value of the share capital in question on that date or, in a case in which subsection (3) of the principal section applies, a due proportion of that market value.

• (4) In this paragraph—

• " the relevant cash dividend ", in a case falling within sub-paragraph (2)(a) above, means the cash dividend mentioned in subsection (1)(a) of the principal section or, in a case falling within sub-paragraph (2)(b) above, means, subject to sub-paragraph (5) below, the cash dividend there mentioned ;

• " the relevant date ", in the case of share capital listed in The Stock Exchange Daily Official List, means the date of first dealing and, in the case of share capital not so listed, means the due date of issue.

• (5) Where, in a case falling within sub-paragraph (2)(b) above, the company on the occasion on which it issues the share capital in question also issues a dividend in cash (" the accompanying cash dividend") in respect of the shares in the company in respect of which that share capital is issued, " the relevant cash dividend " shall in this paragraph mean the cash dividend mentioned in sub-paragraph (2)(b) above reduced by the amount of the accompanying cash dividend.

2

• (1) Subject to the provisions applied by sub-paragraphs (2) and (3) below, in the preceding paragraph " market value ", in relation to any share capital in a company, means the price which that share capital might reasonably be expected to fetch on a sale in the open market.

• (2) Section 44(3) of the Finance Act 1965 (market value of shares or securities listed in The Stock Exchange Daily Official List) shall, with the omission of the reference to paragraph 22(3) of Schedule 6 to that Act, apply for the purposes of this paragraph as it applies for the purposes of Part III of that Act.

• (3) In the case of shares or securities which are not quoted on a recognised stock exchange (within the meaning of the Corporation Tax Acts) at the time when their market value for the purposes of the preceding paragraph falls to be determined, subsection (3) of section 51 of the Finance Act 1973 shall apply with respect to the determination of their market value for those purposes as it applies with respect to a determination falling within subsection (1) of that section.

Close companies

3

• (1) Where a company issues to a close company any share capital to which the principal section applies, the following provisions of this paragraph shall apply as regards that share capital; and in those provisions " the relevant accounting period " means the accounting period of the close company in which the due date of issue falls.

• (2) The relevant income of the close company for the relevant accounting period, as determined under paragraph 8 of Schedule 16 to the Finance Act 1972, and the amount which, under paragraph 9 of that Schedule (read, where appropriate, with paragraph 13 of that Schedule), the relevant income of the close company for that period cannot exceed, shall each be increased by an amount equal to the appropriate amount in cash (or, if it would otherwise be nil, be treated as equal to the appropriate amount in cash).